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Finance Department
DATE: October 6, 2026
TO: Mayor Martinez and Members of the City Council
FROM: Nannette Beacham, Director of Economic Development Emily Combs, Director of Finance
Mubeen Qader, Deputy Director of Finance
Antonio Banuelos, Accounting Manager
Subject: Evaluation of Renewal of the Richmond Tourism
Marketing District
FINANCIAL IMPACT: None
PREVIOUS COUNCIL
ACTION:
April 18, 2004 – Ordinance No. 6-04 N.S.
December 20, 2006 – Ordinance No. 2-06 N.S.
April 7, 2015 – Resolution No. 30-15
May 5, 2015 – Resolution No. 44-15
June 2, 2015 – Resolution No. 57-15 and Ordinance No.
18-15 N.S
STATEMENT OF THE
ISSUE:
The City has previously authorized lodging-business
assessment districts that funded tourism and
destination-marketing activities, with assessments
collected from Richmond lodging establishments and
remitted directly to the district’s owners’ association. The Richmond Tourism Marketing District (RTMD) operated
from August 1, 2015 through July 31, 2020. Streets and
Highways Code section 36660 permits renewal of an
expired district through the statutory establishment
process. Staff seeks direction to evaluate renewal with Richmond hotels and lodging establishments.
AGENDA
REPORT
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RECOMMENDED ACTION: DIRECT staff to review Richmond Municipal Code (RMC) Chapter 13.57 and the City’s prior tourism districts;
coordinate with Richmond hotels and lodging
establishments to evaluate renewal of the Richmond
Tourism Marketing District (RTMD) under Streets and
Highways Code section 36660; develop preliminary
options for a Management District Plan, assessment
methodology, programs, governance, administration, and
necessary code revisions; and RETURN to the City
Council with recommendations and, if sufficient lodgingbusiness support exists, actions necessary to initiate formal renewal proceedings. This action does not renew
the RTMD or levy an assessment – Economic
Development Department/Finance Department (Nannette
Beacham 510-620-1306/Emily Combs, Mubeen Qader
510-620-6740/Antonio Banuelos 510-620-6741).
DISCUSSION:
Background
In 2004, the City Council adopted Ordinance No. 6-04 N.S. establishing the Richmond Tourism Business Improvement District (RTBID) under the Parking and Business Improvement Area Law of 1989 (Streets and Highways Code section 36500 et seq.) and adding Richmond Municipal Code Chapter 13.57. Chapter 13.57 imposed an assessment on lodging businesses to fund tourism and destination-marketing activities.
Ordinance No. 2-06 N.S., adopted in 2006, amended Chapter 13.57 and established the Richmond Convention and Visitors Bureau as the nonprofit entity through which district marketing and assessment administration were conducted.
Transition to the Richmond Tourism Marketing District
In 2015, the City and Richmond lodging businesses transitioned from the RTBID to a successor Richmond Tourism Marketing District (RTMD) under the Property and Business Improvement District Law of 1994 (Streets and Highways Code section 36600 et seq.). On April 7, 2015, after receiving petitions from lodging businesses that would pay more than 50 percent of the proposed assessment, the City Council adopted Resolution No. 30-15 declaring its intention to establish the RTMD and setting the required public meeting and public hearing.
On May 5, 2015, the City Council adopted Resolution No. 44-15 declaring its intention to disestablish the predecessor RTBID. Following the noticed proceedings, on June 2, 2015, the City Council adopted Resolution No. 57-15 establishing the RTMD and Ordinance No. 18-15 N.S. disestablishing the RTBID effective August 1, 2015. The RTMD included Richmond lodging businesses and funded sales promotion and
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marketing intended to benefit assessed lodging businesses by promoting Richmond as a tourist, meeting, and event destination.
Resolution No. 57-15 established the RTMD for a five-year term beginning August 1, 2015 and ending July 31, 2020. The RTMD was not renewed at the end of that term and is no longer operative.
Authority to Renew an Expired RTMD
Streets and Highways Code section 36660 provides that a previously established district whose term has expired may be renewed by following the statutory procedures for establishment. A renewed district may have a term of up to ten years, and its boundaries, assessments, improvements, and activities need not be identical to those of the prior district.
Renewal therefore requires a new formation process rather than automatic reinstatement of the former assessment. The process includes development of a Management District Plan and written petitions from business owners who would pay more than 50 percent of the proposed assessments before the City Council may initiate formal proceedings by resolution of intention. Formal proceedings thereafter include statutory notice, a public meeting, a public hearing, consideration of protests, and final Council consideration of renewal and levy of the assessment.
Proposed Preliminary Review and Hotel Outreach
The recommended action is limited to the preliminary work necessary to determine whether a renewed tourism marketing district is appropriate and whether sufficient support exists among Richmond lodging businesses. Before any formal renewal proceeding is initiated, staff would coordinate with Richmond hotels and other potentially affected lodging establishments.
The preliminary review would include:
• Reviewing the former RTMD Management District Plan, assessment structure, programs, and administrative model;
• Identifying lodging businesses that could be included in a renewed district and evaluating current industry support;
• Evaluating potential assessment methodologies and the relationship between the proposed assessment and benefits to assessed lodging businesses; • Identifying tourism, destination-marketing, meeting, event, and visitor-serving activities that could be funded;
• Evaluating governance and administration, including the appropriate owners’ association or other administrative structure;
• Evaluating assessment collection, annual reporting, auditing, accountability, and City oversight;
• Reviewing Richmond Municipal Code Chapter 13.57 and recommending whether it should be repealed, amended, or replaced; and
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• Identifying formation and implementation costs, potential assessment revenues, and any consultant or professional services required.
No Assessment or District Renewal at This Stage
The recommended action does not renew the RTMD, impose or reinstate an assessment, approve a Management District Plan, or commence formal statutory renewal proceedings. It directs staff to evaluate the proposal with the lodging industry and return to the City Council before any assessment is proposed for Council action.
Next Steps
If outreach demonstrates sufficient support, staff would return to the City Council with a proposed Management District Plan and a recommended process for obtaining the petitions required by Streets and Highways Code section 36621. Once qualifying petitions are submitted by lodging businesses that would pay more than 50 percent of the proposed assessments, the City Council could consider a resolution of intention initiating formal renewal proceedings. The resolution of intention would be followed by the required notice, public meeting, public hearing, protest determination, and final Council consideration of renewal.
If sufficient lodging-business support does not exist, staff would report that result to the City Council together with any alternative recommendations for tourism and destinationmarketing activities.
DRAFT TIMELINE (2026–2027)
Phase 1: Outreach & Management Plan Drafting (October – December 2026) o October 2026: Engage hotel operators and lodging owners across Richmond to present updated assessment structures ($2.00–$2.50+ per occupied room night) and modern tourism goals.
o November 2026: Draft an updated Management District Plan (MDP) aligning with post-2025 hospitality dynamics and City Manager/Economic Development standards.
o December 2026: Conduct petition drive targeting >50% petition approval by weighted room assessment from participating lodging owners. Phase 2: City Council Actions & Public Hearings (January – March 2027) o January 19, 2027: Present MDP to City Council and adopt Resolution of Intention to re-establish the Richmond Tourism Marketing District. o February 16, 2027: Hold formal City Council Public Meeting to answer stakeholder questions.
o March 16, 2027: Hold formal Public Hearing; count any written owner protests; adopt Resolution of Formation if protests remain below 50%. Phase 3: Implementation & Operational Launch (April – May 2027) o April 20, 2027: Execute Owners' Association agreement with the designated management entity.
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o May 25, 2027: Effective start date for assessment collections and initial marketing budget disbursement.