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1 City of Santa Clara Resolution of IntentionMAY 5, 2026SANTA CLARA TOURISM IMPROVEMENT DISTRICT (SCTID) RENEWAL AGENDASanta Clara Tourism Improvement District & Discover Santa Clara® OverviewImpact & Key AccomplishmentsProposed Santa Clara Tourism Improvement District RenewalWhy Renewal MattersRenewal Timeline 01 2 020304051
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2 3Background: Santa Clara Improvement District (SCTID)•The Santa Clara Tourism Improvement District (SCTID) includes 11 lodging businesses within the city boundary with 10 or more rooms and stays under 30 days.•The SCTID is funded by a 2% assessment collected from overnight visitors and is remitted to the city by lodging businesses.•Silicon Valley/Santa Clara DMO (dba Discover Santa Clara®) serves as the Owners' Association, administering SCTID funds per the Management District Plan.•Funds support sales and marketing efforts, led by Discover Santa Clara® as the City’s official Destination Marketing Organization (DMO), to drive overnight visitation, group business, and economic impact.•Originally formed in 2005, the SCTID was last renewed by City Council in 2021 under the 1994 PBID Law for a five-year term ending June 30, 2026.•Discover Santa Clara and the SCTID lodging businesses wish to renew for another 5-year term through June 2031. 3 4
Organizational readiness & key accomplishmentsFinancial Performance (FY 2024/25)•Outperformed assessment projections ($3.2M actual vs. $2.6M forecasted).•Generated $160K in interest revenue.•Closed the year with a ~$600K surplus to reinvest in future activities.Organizational Readiness•Built and fully staffed a nine-person DMO team under new CEO leadership completing the organization’s operational structure.•Established Board-approved financial and administrative infrastructure, including SOPs, policies, and performance management systems supporting accountability and oversight.•Strengthened governance through consistent reporting, Board elections, and Civitas-led training aligned with the renewal process.•Demonstrated strong financial stewardship, exceeding assessment projections and delivering a positive year-end surplus. 3 4
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organizational readiness & key accomplishmentsConvention Sales, Incentive & Services Wins•Drove 46% growth in high-value sales leads over the past two years, reflecting the impact of focused sales efforts.•Expanded group sales activity across key segments, securing and delivering high-value group business across current and future years, highlighted by a citywide event generating over $1M in revenue.•Established a targeted national sales strategy supported by strategic partnerships and enhanced sales infrastructure, engaging planners through 25 industry tradeshows and direct client outreach.Marketing & Visibility•Established core marketing platform, including a redesigned website, first-ever Visitors Guide, digital tools, and unified brand and PR strategy.•Scaled digital audience from near zero to 32K+ Instagram followers and 50K+ email subscribers.•Generated 5.1M impressions through influencer campaigns and strategic partnerships with SCTID hotels and key Santa Clara venues.Global Event Readiness•Super Bowl LX and FIFA World Cup 2026 Activation Plan finalized, already securing high-profile media placements in Forbes and Vogue.•Hosted the first Meeting Planner and Media Familiarization Trip, bringing key planners and media to Santa Clara to showcase and experience the destination firsthand. 6 Dmo momentum in action
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Dmo momentum in action
8 SCTID: Existing vs. proposed Renewal5-year term ending June 30, 2026.Initial assessment rate of 1.5%, increased to 2% in 2022.Applies to lodging businesses with 10+ rooms within a designated area of the City.Annual Budget: $3,565,000.Services: Convention Sales, Incentives & Services; Marketing & Administration.
EXISTING SCTID 5-year term beginning July 1, 2026.2% assessment, with the ability to increase up to 3% through Board and hotelier approval, in annual increments of up to 0.5%.Applies to lodging businesses with 10+ rooms within a designated area of the City. Expressly excludes short-term rentals.Projected Annual Budget: $4,048,000.Services: Marketing, Communications, and Convention Center & Partner Sales, and Administration.
PROPOSED SCTID RENEWAL
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5 9SCTID existing vs. proposed Renewal ParametersEXISTING SCTIDANNUAL BUDGET: $3,565,000PROPOSED SCTID RENEWALPROJECTED ANNUAL BUDGET: $4,048,000Convention Sales, Incentives & Services40% = $1,426,000Marketing & Communication20% = $713,000Adminstration35% = $1,247,750City Adminstration Fee2% = $71,300Contingency/Reserve Marketing, Communications, and Convention Center and Partner Sales70% = $2,833,600Adminstration25%= $1,012,000City Adminstration Fee2% = $80,960Contingency3% = $121,440 10 Why renewal matters•Ensures continued return on significant sales and marketing investment already deployed.•Protects and builds on proven momentum, ensuring continued return on investment from sales, marketing, customer, and partner relationships already in motion.•Drives overnight visitation and hotel occupancy, strengthening demand across group, business, and leisure travel segments.•Strengthens citywide economic impactby driving group demand to the Convention Center and partner venues.•Builds on significant progress to date, continuing to elevate Santa Clara’s visibility, credibility, and ability to compete and win in a highly competitive marketplace.•Sustains a self-funded, hotel-driven model, delivering direct benefits to lodging businesses while generating broader economic impact for the City—with no cost to the General Fund, residents, or non-assessed businesses. 9 10
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SCTID Renewal Timeline & Next StepsDateActionStatusMay – June 2025Develop Renewal Management District Plan (MDP).August 2025 – April 2026Submit draft MDP to City staff for review, discussions, and final approval.April 2026Final MDP and Petition approved by City staffApril – June 2026Update & approve Agreement to Administer (Discover Santa Clara & City)April – May 2026Petition DriveMay 5, 2026City Council – Resolution of Intention No later than May 8, 2026Mail Notice of Public Meeting/Hearing June 9, 2026City Council – Public MeetingJune 23, 2026City Council – Public Hearing & Resolution of FormationJuly 1, 2026Renewed SCTID Begins –= C O MPLE TE D = I N PR O GR E SS
= PENDING
12Questions?
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7 Thank youWWW.DISCOVERSANTACLARA.ORG
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