Item 52/2026
Final
City of Garden Grove
INTER-DEPARTMENT MEMORANDUM
To:
Lisa L. Kim From: Ursula Luna-Reynosa
Dept:
City Manager Dept: Economic Development and
Housing
Date: 2/24/2026
Subject: Approval of Garden Grove Tourism Improvement District - Amendment No. 1 to the FY 2025-26 Advisory Board Report, Approval of the FY 2026-27 Advisory Board Report and Budget, Adoption of a Resolution of Intention to Approve Modifications to the activities for FY 2025-26, and Adoption of a Resolution of Intention to Levy FY 2026-27 Assessments. (Action Item)
OBJECTIVE
For the City Council to approve Amendment No.1 to the Fiscal Year 2025-26 Advisory Board Report (“Annual Report”) of the Garden Grove Tourism Improvement District (“GGTID”) Advisory Board ; approve the Fiscal Year 2026 -27 Advisory Report and Budget, adopt a resolution of intention to approve modifications to the activities for Fiscal Year 2025-26, adopt a Resolution to levy assessments for Fiscal Year 2026–27, and set a public hearing to consider the amended Fiscal Year 2025 –26 Advisory Board Report and activities, and the proposed Fiscal Year 2026–27 assessments.
BACKGROUND
The proposed amendment to the Fiscal Year 2025–26 GGTID Advisory Board Annual Report includes the addition of transit services as an eligible activity and clarifies the associated funding source. The amendment supports visitor mobility within the Grove District by improving connectivity between hotels and key destinations, reducing vehicle reliance, and enhancing overall visitor access and satisfaction. These enhancements strengthen hotel competitiveness and support increased tourism spending within the City.
This item also approves the Fiscal Year 2026 –27 GGTID Advisory Board Annual Report and Budget and provides notice of the City’s intent to levy annual district assessments for both fiscal year actions.
The GGTID was established by the City Council in accordance with the Parking and Business Improvement Area Law of 1989, California Streets and Highways Code Section 36500 et seq. (the "Law") through the adoption of Resolution No. 9009 -10 on August 24, 2010, and Ordinance No. 2782 on October 26, 2010. The purp ose of the GGTID is to provide revenue Item 52/2026
to defray the costs of advertising and marketing efforts designed to increase overnight stays in the GGTID, construction and maintenance of improvements in the GGTID, and other services, activities, and programs that promote and encourage tourism within the GGTID, which benefit the operators of hotels paying assessments through the promotion of scenic, recreational, cultural, and other attractions.
The GGTID includes the hotels along Harbor Boulevard from the northern boundary within the City to Garden Grove Boulevard. It is divided into two (2) separate benefit zones:
Tier I includes the hotels north of Lampson Avenue, which are subject to an assessment of up to 2.5% of gross rent charged per room occupancy per night.
There are currently nine (9) hotels in Tier I.
Tier II encompasses those hotels south of Lampson Avenue, which are subject to an assessment of up to 0.5% of gross rent charged per room occupancy per night. There is currently one hotel in Tier II, The Gr eat Wolf Lodge Southern California.
Pursuant to the Law and the Ordinance, the City Council is required to annually 1) approve the Annual Report (as recommended by the Advisory Board or with modifications) and 2) adopt a resolution of intention to levy the assessment and set a date for the public hearing.
DISCUSSION
Annual Report Amendment for FY 26-27
In accordance with Ordinance No. 2782, the Board of Directors of the Garden Grove Tourism Promotion Corporation (GGTPC) serves as the Advisory Board. Pursuant to the Ordinance and the Law, the Advisory Board is required to submit an annual report to the City. The annual report is required to include the following:
Any proposed changes in the boundaries of the GGTID or in any of the benefit zones;
A descr iption of the improvements and activities to be provided for the upcoming fiscal year;
An estimate of the cost of providing the improvements and the activities for that fiscal year;
The recommended method and basis of levying the assessment in sufficient detail to allow each business owner to estimate the amount of the assessment to be levied against his or her business for that fiscal year;
The amount of any surplus or deficit revenues to be carried over from a previous fiscal year; and
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The a mount of any contributions to be made from sources other than the assessments levied.
The Annual Report serves as the basis for the levying of assessments each year.
The Advisory Board has approved and recommended the Amendment to the Fiscal Year 2025- 26 Annual Report for City Council consideration, which contains a proposed budget for use of the anticipated assessment revenues for the year. No changes are proposed (i) to the boundaries of the GGTID, (ii) in the GGTID improvements and activities authorized by Resolution No. 9009 -10 and Ordinance No. 2782, or (iii) in the amount of the annual assessment or the method and basis for levying the assessment. The Advisory Board is recommending that the annual assessments for Fiscal Year 2026-27 continue to be two and one-half percent (2.5%) of the gross rent charged by the Operator per room occupancy per night for all transient occupancies for each visitor accommodation facility in Tier I, and (ii) one-half percent (0.5%) of the gross rent charged by the Operator per room occupancy per night for all transient occupancies for each visitor accommodation facility in Tier II.
On February 22, 2011, the City Council approved an agreement with the Anaheim/Orange County Visitor & Convention Bureau ("VCB") (currently known as “Visit Anaheim”), pursuant to which, approximately 80% of the GGTID assessment revenue collected is allocated to the VCB to fund collective tourism marketing efforts or retained by the City for future Harbor Boulevard median improvements and a future transit system. The remaining (approximately 20%) of the GGTID assessment is allocated to fund specific improvements along Harbor Boulevard and other tourism promotion activities in Garden Grove in accordance with the budget included in the Annual Report. These funds are administered by the GGTPC pursuant to an agreement with the GGTPC approved by the City Council on September 27, 2011.
Amendment No. 1 to the 2025-26 Report adds Transit Services as a new activity. The Garden Grove Hotel Transit Shuttle Syst em is an approved, district -wide program serving approximately 3,600 Grove District hotel rooms. The program is funded primarily through guest-generated assessments, with a portion of the GGTID budget covering the remaining, uncaptured operating costs. The GGTID will administer and manage the transit operator contract. The shuttle will provide direct connectivity between Grove District hotels, the Anaheim Convention Center, and key resort destinations, improving guest mobility and market competitiveness. Ex pected outcomes include stronger convention room -night capture, improved occupancy, enhanced rate integrity, and measurable revenue performance across participating properties.
Levying of Assessment for Fiscal Year 2026-27
State Law requires that each year the City Council adopt a Resolution declaring its intention to levy an annual assessment for the upcoming fiscal year based on the Annual Report and scheduling a public hearing on the proposed assessment. The attached proposed Resolution contains the items required by State Law and sets a public hearing on the matter for March 10, 2026. After City Council adoption, the Resolution will be published in a local paper of general circulation at least ten (10) days before the public hearing pursuant to the Law.
At the Public Hearing scheduled for March 10, 2026, the City Council may order changes to the Annual Report recommended by the Advisory Board. Care must be taken to ensure that Item 52/2026
changes do not increase an assessment or expand the businesses or propertie s subject to assessment. During the public hearing, the City Council accepts oral and written protests.
Proceedings must be abandoned if written protests are received (and not withdrawn) from owners of businesses that will pay 50% or more of the assessment s proposed to be levied.
At the conclusion of the Public Hearing, the City Council may adopt a Resolution confirming the Amendment to the Fiscal Year 2025 –26 Annual Report (with or without changes) and levying the assessment for the Fiscal Year 2026-27.
FINANCIAL IMPACT
The proposed Fiscal Year 2026–27 budget and the Fiscal Year 2025–26 amendment have no impact on the City’s General Fund. It is estimated that the GGTID will generate approximately $2.6 million in revenue for Fiscal Year 2026-27. These funds will be dedicated to supporting local tourism promotion efforts. The majority of the revenue will be administered by Visit Anaheim and the GGTPC. Any administrative costs incurred by the City in connection with the GGTID will be reimbursed from assessment revenues, up to a certain cap established.
RECOMMENDATION
It is recommended that City Council:
Adopt a Resolution approving Amendment No.1 to Fiscal Year 2025–26 Garden Grove Tourism Improvement District Advisory Board Report; Approve the Fiscal Year 2026-27 Garden Grove Tourism Improvement District Advisory Board Report and Budget; and
Adopt the Resolution declaring the City’s Intention to Levy Assessments for Fiscal Year 2026 -27 and setting a time and date for a public hearin g on Amendment No. 1 to the Fiscal Year 2025–26 Advisory Board Report and the proposed Fiscal Year 2026-27 assessments.
By: Henry Surjono, Administrative Analyst
ATTACHMENT(S)
1. Resolution Approving Amendment No.1 - FY 2025-26 and Notice of Intention to Approve Modifications to the Activities for FY 2025-26.
2. Resolution of Intention to Levy Assessments - FY 2026-27
3. GGTID Advisory Board Report - Amendment No.1 FY 2025-26
4. GGTID Advisory Board Report - FY 2025-26
5. GGTID Advisory Board Report - FY 2026-27
6. Visit Anaheim Advisory Board Report - FY 2026-27