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Council Agenda: 10-18-2022
Item No.: 2.9(b)
DRAFT--Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
NO. ______________
A RESOLUTION OF THE COUNCIL OF THE CITY OF
SAN JOSE (1) DECLARING ITS INTENTION TO RENEW
THE SAN JOSE HOTEL BUSINESS IMPROVEMENT
DISTRICT (SJHBID) WITHIN THE CITY OF SAN JOSE; (2)
PRELIMINARILY APPROVING THE SJHBID
MANAGEMENT DISTRICT PLAN; (3) SETTING A PUBLIC
MEETING TO BE HELD ON NOVEMBER 1, 2022 AT 1:30
P.M. AND A PUBLIC HEARING ON DECEMBER 6, 2022 AT
1:30 P.M.; AND (4) FINDING THAT SAN JOSE HOTELS,
INC. WILL CONTINUE TO SERVE AS THE OWNERS’
ASSOCIATION FOR THE SJHBID TO IMPLEMENT THE
PROGRAM DESCRIBED IN THE MANAGEMENT
DISTRICT PLAN AND AUTHORIZING THE CITY
MANAGER TO NEGOTIATE AND EXECUTE AN
AGREEMENT WITH SAN JOSE HOTELS, INC. TO
PROVIDE THOSE SERVICES, CONTINGENT UPON THE
RENEWAL OF THE SJHBID
WHEREAS, the Property and Business Improvement Law of 1994, Streets and Highways Code § 36600 et seq., authorizes the City of San José (“City”) to establish business improvement districts for the purposes of promoting tourism; and
WHEREAS, in 2006, the Hotel Business Improvement District was approved by property owners and adopted by the City Council of the City of San José pursuant to Streets and Highways Code Section 36500 et seq, commonly referred to as the Property and Business Improvement Area Law of 1989 (“’89 Law”) to provide revenues for marketing efforts and event opportunities for hotels located in San José; and
WHEREAS, the ’89 Law required the Hotel Business Improvement District to be renewed annually, and in 2018, in an effort to implement long-range and larger-scale marketing and visitor attraction programs, the City Council established a new San José Hotel Business Improvement District (“SJHBID”) pursuant to Streets and Highways Code Section 36600 et. seq., commonly referred to as the Property and Business NVF:KMM:KML
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Item No.: 2.9(b)
DRAFT--Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
Improvement Area Law of 1994 (“’94 Law”) for a five (5)-year term beginning July 1, 2018 through June 30, 2023, and selected San José Hotels, Inc. (“SJHI”) as the Owners’ Association for the SJHBID to implement the Management District Plan; and
WHEREAS, the ’94 Law provides that the SJHBID may be renewed for a term not to exceed ten (10) years; and
WHEREAS, Team San José, SJHI, lodging business owners, and representatives from the City have met to consider the renewal of the SJHBID; and
WHEREAS, SJHI has prepared a Management District Plan (“Plan”) for the renewal of the SJHBID, attached to the Memorandum to Council dated September 16, 2022, which sets forth the proposed boundary of the SJHBID, a service plan and budget, and a proposed means of governance; and
WHEREAS, pursuant to the ’94 Law, the Plan proposes that SJHI will continue to serve as the Owners’ Association for the SJHBID, and the SJHI Board will determine SJHBID budgets and assessment rates and monitor service delivery as set forth in the Plan; and
WHEREAS, while SJHI is a private entity and may not be considered a public entity for any purpose, nor may its board members or staff be considered to be public officials for any purpose it is, nevertheless, subject to certain government regulations under the ’94 Law relating to transparency, specifically the Ralph M. Brown Act (commencing with Section 54950 of Part 1 of Division 2 of Title 5 of the Government Code), at all times when matters within the subject matter of the SJHBID are heard, discussed, or deliberated, and the California Public Records Act (commencing with Section 6250 of Division 7 of Title 1 of the Government Code) for all records relating to the activities of the SJHBID; and
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Council Agenda: 10-18-2022
Item No.: 2.9(b)
DRAFT--Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
WHEREAS, lodging businesses who will pay more than fifty percent (50%) of the assessment under the SJHBID have petitioned the City Council to renew the SJHBID; and
WHEREAS, the City Council accepts the petitions and adopts this Resolution of Intention to renew the SJHBID and to levy an assessment on all lodging businesses with eighty (80) rooms or more within the SJHBID boundaries in accordance with the Property and Business Improvement District Law of 1994, and desires to authorize the City Manager to negotiate and execute an agreement with SJHI to implement the renewed SJHBID described in the Plan;
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF SAN JOSE THAT:
1. The City Council finds that lodging businesses that will pay more than fifty percent (50%) of the assessment proposed in the Plan have signed and submitted petitions in support of the renewal of the SJHBID.
2. The City Council declares its intention to renew the SJHBID, pursuant to the Property and Business Improvement District Law of 1994, and preliminarily approves the Management Plan, dated August 1, 2022.
3. The SJHBID shall continue to include all lodging businesses, with eighty (80) rooms or more, located within the boundaries of the City of San José, as shown in the map attached as Exhibit A.
4. The name of the district shall continue to be San José Hotel Business Improvement District (SJHBID).
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Item No.: 2.9(b)
DRAFT--Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
5. The annual assessment rate for lodging businesses with eighty (80) rooms or more is a fixed dollar amount per paid occupied room per night as shown in the table below. During the ten (10) year term, the assessment rate in each zone may be increased by the SJHI Board by a maximum of $1.50 per paid occupied room per night. The maximum increase in any year shall be $0.50 in each zone.
Based on the benefit received, assessments will not be collected on: stays of more than thirty (30) consecutive days; stays by any federal or state officer or employee when on official business; and stays by any officer or employee of a foreign government who is exempt by reason of express provision of federal law or international treaty.
Zone Initial
Assessment
Rate
Maximum
Assessment
Rate
A: Within one (1) mile of the San José
McEnery Convention Center
$2.50 $4.00
B: Within one and one-half (1.5) miles of the
San José International Airport
$1.25 $2.75
C: Over one (1) mile from the San José
McEnery Convention Center and over one
and one-half (1.5) miles from the San José
International Airport
$1.00 $2.50
6. The assessments levied for the SJHBID shall be applied toward sales promotion and marketing programs to market assessed lodging businesses in San Jose as tourist, meeting, and event destinations, as described in the Plan. Funds remaining at the end of any year may be used in subsequent years in which SJHBID assessments are levied as long as they are used consistent with the requirements of this resolution and the Plan.
7. The renewed SJHBID will have a ten (10) year life, beginning July 1, 2023 through June 30, 2033, unless renewed again pursuant to Streets and Highways Code § 36660.
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Item No.: 2.9(b)
DRAFT--Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
8. Bonds shall not be issued.
9. The time and place for the public meeting to hear testimony on renewing the SJHBID and levying assessments are set for November 1, 2022, at 1:30 PM, or as soon thereafter as the matter may be heard, at the Council Chambers located at 200 E. Santa Clara Street, San José, CA 95113.
10. The time and place for the public hearing to renew the SJHBID and the levy of assessments are set for December 6, 2022, at 1:30 PM, or as soon thereafter as the matter may be heard, at the Council Chambers located at 200 E. Santa Clara Street, San José, CA 95113. The City Clerk is directed to provide written notice to the lodging businesses subject to assessment of the date and time of the meeting and hearing, and to provide that notice as required by Streets and Highways Code § 36623, no later than October 22, 2022.
11. At the aforesaid public hearing, the testimony of any and all interested persons for or against the renewal of the SJHBID shall be heard and considered by the City Council. Protests may be made orally or in writing by any interested person.
Each written protest must be filed with the City Clerk located at 200 E. Santa Clara Street, 14th Floor, San José, CA 95113, at or before the time fixed for the public hearing. A written protest may be withdrawn in writing at any time before the conclusion of the public hearing.
As provided in Section 36623 of the California Streets and Highways Code, if written protests against the renewal of the SJHBID are filed with the City Clerk by the owners of businesses in the SJHBID which would pay fifty percent (50%) or more of the assessments proposed to be levied and protests are not withdrawn so as to reduce the protests to less than fifty percent (50%), then no further NVF:KMM:KML
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Council Agenda: 10-18-2022
Item No.: 2.9(b)
DRAFT--Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
proceedings to renew the SJHBID or to levy the proposed assessment may be taken by the City Council for a period of one year. In order to be counted in determining a majority protest, a written protest must contain a description of the business of the person submitting the protest sufficient to identify the business as a business within the proposed SJHBID.
12. The complete Plan is on file with the City Clerk and may be reviewed upon request.
13. This resolution shall take effect immediately upon its adoption by the City Council.
14. The City Council finds that San José Hotels, Inc. will serve as the Owners’ Association for the SJHBID to implement the program described in the Management District Plan.
15. The City Manager is hereby authorized to negotiate and execute an agreement with San José Hotels, Inc. to provide those services described in the Plan, contingent upon the renewal of the SJHBID.
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Council Agenda: 10-18-2022
Item No.: 2.9(b)
DRAFT--Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
ADOPTED this _____ day of ___________, 2022, by the following vote:
AYES:
NOES:
ABSENT:
DISQUALIFIED:
SAM LICCARDO
Mayor
ATTEST:
TONI J. TABER, CMC
City Clerk
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10/03/2022
T-289.004.002\1951497_2 A-1
Council Agenda:
Item No.:
DRAFT--Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
EXHIBIT A
District Boundaries