Receive Public Comment
Pursuant to CA Government
Code - GOV § 54954.6
Regarding the Modification
of the Management District
Plan for the HB Tourism
Business Improvement
District
Public Meeting
May 7, 2024
Background
• HB Tourism Business Improvement District (HBTBID)
formed in 2014 pursuant to the CA Property and
Business Improvement District Law of 1994
• HBTBID purpose is to market HB to increase
overnight room sales
• Funding derived from assessments collected from
lodging businesses (paid by guests) operating within
City boundaries
• HBTBID was renewed in 2019 and runs through
June 30, 2028
• Management District Plan (MDP) identifies funds
and outlines programs
HBTBID
• Comprised of approx. 21 hotels/motels
and 200 Short Term Rentals (STRs)
• Current assessment rate is 4% of gross
short-term lodging revenue (separate
from 10% Transient Occupancy Tax (TOT)
collected by City)
• Boundary includes all lodging
businesses, existing and in the future,
within the City
• Total assessments approximately
$7 million for FY 23-24
Visit Huntington Beach (VHB)
• Visit Huntington Beach (VHB), a non-profit
501(c)6 organization, serves as the HBTBID
Owners’ Association
• Consists of 17 staff and 22 board members
• Responsible for implementing the MDP
programs and submitting an annual report
to City Council
• Management Agreement between City and
VHB outlines responsibilities of both
parties related to HBTBID funding and
programs
• City collects assessments and then
distributes funds to VHB
HBTBID Modification Request
• 2019 - City began retaining 100% of TOT revenues; Assessment rate increased 3% to 4% to mitigate TOT loss • HBTBID assessment is the only dedicated funding source to market Surf City USA • Competitive cities have dedicated more resources and are adding lodging properties/attractions making funding deficit gap greater each year
• VHB is seeking to modify the MDP to increase assessment rate from 4% to 6% to remain competitive and ensure that tourism promotion funding is adequate
VHB Comparative Set
Location Amount Raised Assessment Rate TOT Rate Total Guest Charge
Anaheim $17,500,000 2% room revenue 15% 17%
Mammoth Lakes $10,800,000 1% room revenue 13% 14%
Newport Beach $13,000,000 5% room revenue 10% 15%
Palm Springs $17,000,000 1% room revenue 14% 15%
San Diego $41,000,000 2% room revenue 10% 12%
San Luis Obispo $10,400,000 1% room revenue 10% 11%
Santa Barbara $10,700,000 2% room revenue 12% 14%
Huntington Beach $7,000,000 4% room revenue 10% 14%
OC Product Additions/Enhancements
NEWPORT BEACH
• Vea Newport Beach
• Pendry hotel
• RH Gallery & Rooftop Café
ANAHEIM
• JW Marriott Anaheim Resort
• The Westin Anaheim Resort
SOUTH COUNTY
• Waldorf Astoria
• Ritz Carlton
• Dana Point Harbor
OC VIBE
• Hotel (500 Rooms)
DISNEYLAND
• Disneyland Hotel
• Vacation Club Tower
• Pixar Pier Hotel
• Downtown Disney
Proposed Modified Budget
Budget Category Existing Proposed
Sales & Marketing 72% 65%
Tourism Enhancement Programs 10%
Administration 19% 19%
Contingency/Reserve 8% 5%
City Admin Fee 1% 1%
Total Budget (Approximately) $7M $10M
Sales & Marketing (65%)
• SurfCityUSA.com website, media buys
and seasonal marketing campaigns,
public relations, social media, consumer
advertising, the official Visitor Guide,
maps, historical walking tours and the
Surf City USA Barrel Trail, and
destination meeting sales.
Tourism Enhancement Programs (10%)
• Elevate the visitor experience (improved
wayfinding signage, temporary summer
beach restrooms, a nighttime
ambassador program, infrastructure
improvements, improved accessibility,
and more).
Proposed Modified Budget
HBTBID Modification Schedule
Resolution
Of
Intention
April 16
(Adopted)
• In response to VHB’s written request, City Council adopted Resolution No. 2024- 13 which states the proposed modification and initiates MDP modification proceedings.
Notice April/
May
• Notice and Resolution mailed on April 19, 2024 (completed) • Newspaper publishing at least 7 days before public meeting Public
Meeting May 7
• Public meeting to allow public comment
• No Council action required
Public
Hearing
& Resolution of
Modification
June 4
• Public hearing, not more than 90 days after the adoption of the ROI, on the proposed MDP modifications
• City Council, following the public hearing, may decide to modify the HBTBID and adopt a Resolution of Modification
VHB TEPs
Wayfinding
Walkability & Connectivity
Temporary Beach Restrooms
Nighttime Ambassador Program
Accessibility
Bike Valet
Beach Event Infrastructure
Improved Surf Museum for LA28
City TEPs
Downtown Parking Structure Upgrades
Downtown Specific Plan Improvements
Mobility Enhancements
PCH & 6th Pedestrian Path
All-Inclusive Playground Upgrades
Bluff Top Park Lighting
Enhanced Downtown Maintenance
Restroom Upgrades
• Management Agreement between City and VHB outlines responsibilities of both parties related to HBTBID funding and programs
• If the MDP is modified, then the Management Agreement would be amended to define specific Tourism Enhancement Programs that both the City and VHB would fund during the remainder of HBTBID term.
Management Agreement Amendment
Recommendation
Receive and file public comment related to the proposed modification of the Management District Plan for the HB Tourism Business Improvement District per adopted Resolution No. 2024-13.
Questions?