Item 81/2026
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: 3/10/2026
Subject: Adoption of Resolutions confirming Amendment No. 1 to the Fiscal Year 2025– 26 Advisory Board Report, approving modifications to the activities for Fiscal Year 2025-26, and confirming the Fiscal Year 2026-27 Annual Report, and levying assessments for the Garden Grove Tourism Improvement District. (Action Item)
OBJECTIVE
For the City Council to conduct a public hearing on Amendment No. 1 to the Fiscal Year 2025– 26 Advisory Board Report (“Annual Report”) of the Garden Grove Tourism Improvement District (“GGTID”) Advisory Board , approving modifications to the activities for Fiscal Year 2025-26, and the proposed Fiscal Year 2026 –27 assessments; receive the report from the City Clerk regarding any protests received; adopt a Resolution confirming Amendment No. 1 to the Fiscal Year 2025–26 Annual Report and approving modifications and the activities for Fiscal Year 2025 -26; and adopt a Resolution confirming the Fiscal Year 2026 –27 Annual Report and levying assessments for Fiscal Year 2026–27.
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.
On February 24, 2026, the City Council approved Amendment No. 1 to the Fiscal Year 2025– 26 Annual Report and the Fiscal Year 2026 –27 GGTID Advisory Board Annual Report and Budget and declared its intent to levy assessments for Fiscal Year 2026 –27. This item conducts the duly noticed public hearing and cons iders confirmation of the amendment and levy of assessments for Fiscal Year 2026–27.
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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 purpose of the GGTID is to provide revenue 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 Great Wolf Lodge Southern California.
Pursuant to the Law and the Ordinance, the City Council is required annually to:
1) Approve the Annual Report (as recommended by the Advisory Board or with modifications);
2) Adopt a resolution of intention to levy the assessment and set a date for the public hearing;
3) Conduct the duly noticed public hearing;
4) Following consideration of any protests, adopt a resolution confirming the Annual Report and levying the assessment.
DISCUSSION
Annual Report Amendment for FY 25-26
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 description of the improvements and activities to be provided for the upcoming fiscal year;
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An estimate of the cost of providing the improvements and the activities for that fiscal year;
The recommended method and bas is 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
The amount 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 Annual Report for Fiscal Year 2025-26 was approved by the City Council on April 22, 2025, with the adoption of Resolution No. 9906 -25, and it was confirmed by the City Council on May 13, 2025, with the adoption of Resolution No. 9920-25. Amendments to the report and activities approved for the District follow the same procedures as the annual approvals.
Amendment No. 1 to the 2025-26 Report adds Transit Services as a new activity. The Garden Grove Hotel Transit Shuttle System 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 pr ovide direct connectivity between Grove District hotels, the Anaheim Convention Center, and key resort destinations, improving guest mobility and market competitiveness. Expected 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
The Advisory Board has approved and recommended the Fiscal Year 2026-27 Annual Report for City Council considerati on, 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 Item 81/2026
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.
Before the annual assessment can be levied for Fiscal Year 2026 -27, the City Council must conduct a Public Hearing to hear and consider all protests against the proposed assessments and the amended activities provided in the Annual Report. Notice of the Public Hearing in the form of the Resolutions of Intention adopted at the February 24, 2026, City Council meeting was published at least ten days before the hearing and mailed to each visitor accommodation facility subject to the proposed assessment in accordance with the Law.
After the Public Hearing, the City Council may take one of the following actions:
1) Terminate proceedings if written protests are received from the owners of the businesses in the GGTID that will pay fifty percent (50%) or more of the assessments proposed to be levied (a “majority protest”). If a majority protest is received, no further proceedings to levy the proposed assessment may be taken for a period of one (1) year from the date of the finding of a majority protest by the City Council. If the majority protest is against the furnishing of a specified type or types of improvement or a ctivity within the area, those types of improvements or activities must be eliminated.
2) Order changes in any of the matters provided in the Annual Report, including changes in the proposed assessments and/or the proposed improvements and activities to be funded with the revenues derived from the levy of assessments.
If changes are ordered, notice and a new public hearing will be required before the City Council may adopt a Resolution confirming the Annual Report as modified and levying the assessment.
3) Adopt the proposed Resolutions confirming Amendment No. 1 to the Fiscal Year 2025-26 Annual Report and confirming the Fiscal Year 2026 -27 Annual Report and levying the assessment on those visitor accommodation facilities within the boundaries of the GGTID, commencing July 1, 2026, and continuing through June 30, 2027.
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.
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RECOMMENDATION
It is recommended that the City Council:
Conduct a public hearing regarding Amendment No. 1 to the Fiscal Year 2025-26 Annual Report and the proposed annual levy of assessment for Fiscal Year 2026-27;
Receive the report from the City Clerk regarding any protests received; and Adopt the Resolutions confirming Amendment No. 1 to the Fiscal Year 2025- 26 Annual Report and levying the assessment for the Garden Grove Tourism Improvement District for Fiscal Year 2026-27, assuming there is not a majority protest.
By: Henry Surjono, Administrative Analyst
ATTACHMENT(S)
1. Resolution Confirming Amendment No.1 - FY 2025-26
2. Resolution Confirming Annual Report and 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
7. Visit Anaheim Advisory Board Powerpoint Presentation