Agenda Item: 9
CITY OF SANTA CLARITA
AGENDA REPORT
CONSENT CALENDAR
CITY MANAGER APPROVAL:
DATE: June 11, 2024
SUBJECT: SECOND READING OF AMENDMENTS TO THE CITY'S
MUNICIPAL CODE REGARDING THE BOUNDARIES OF THE
BENEFIT ZONE OF THE SANTA CLARITA TOURISM
MARKETING DISTRICT BY DESIGNATING ADDITIONAL
HOTELS
DEPARTMENT: Economic Development
PRESENTER: Evan Thomason
RECOMMENDED ACTION
City Council:
1. Conduct a second reading and adopt an ordinance entitled, “AN UNCODIFIED
ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA CLARITA,
CALIFORNIA, AMENDING THE BOUNDARIES OF THE BENEFIT ZONE OF THE
SANTA CLARITA TOURISM MARKETING DISTRICT BY DESIGNATING
ADDITIONAL HOTELS TO BE INCLUDED IN THE BENEFIT ZONE ALL PURSUANT TO SANTA CLARITA MUNICIPAL CODE SECTIONS 3.36.020 (DESCRIPTION OF AREA AND BENEFIT ZONE) AND 3.36.030.A (METHOD OF ASSESSMENT) AND THE PARKING AND BUSINESS IMPROVEMENT AREA LAW OF 1989, SECTION 36500 ET SEQ. OF THE STREETS AND HIGHWAYS CODE.”
2. Authorize the City Manager or designee to execute all contract, amendments, and associated documents, subject to City Attorney approval.
BACKGROUND
On May 28, 2024, the City Council conducted a public hearing for amendments to the City of Santa Clarita’s (City) Municipal Code (Chapter 3.36) regarding the Boundaries of the Benefit Zone of the Santa Clarita Tourism Marketing District (TMD) to include newly constructed hotels as part of the TMD as receiving benefits and to pay an assessment of two percent of total room rents charged and received from transient hotel guests. The revenue received from the two percent assessment gets deposited into the TMD Fund, which is used for programs and activities
that promote the City as a tourist destination and generate economic activity.
ALTERNATIVE ACTION
Other direction as determined by the City Council.
FISCAL IMPACT
The onboarding of the five new hotels is estimated to increase Tourism Marketing District (Fund 360) revenue by approximately $430,000 annually, as part of the two percent method of assessment. Revenues within the TMD Fund are only to be used for the purposes of programs and activities that promote the City of Santa Clarita as a tourist destination.
ATTACHMENTS
Ordinance