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FY 2026-27 TMD Annual Report (available in the City Clerk's Reading File)

Santa Clarita City Council
June 9, 2026

Document
FY 2026-27 TMD Annual Report (available in the City Clerk's Reading File)
Meeting
June 9, 2026
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Santa Clarita City Council
Original file
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Text extracted from the city's file for reading and search. Open the original on santaclaritacityca.iqm2.com. That file is the official record.

CITY OF SANTA CLARITA

TOURISM MARKETING DISTRICT

Fiscal Year 2025-26
Annual Report

Fiscal Year 2026-27
Initiatives and Budget

This annual report highlights the Tourism Marketing District’s progress and performance in Fiscal Year 2025–26, along with a forward-looking plan for Fiscal Year 2026–27 (July 1, 2026 through June 30, 2027). Through strategic promotions, partnerships, and targeted campaigns, the Tourism Marketing District has strengthened Santa Clarita’s visibility, increased overnight visitation, and generated measurable economic impact. This report also outlines the proposed activities, budget, and projected revenues that will guide continued growth in the year ahead.

2 Tourism Marketing District Overview

BACKGROUND
The Santa Clarita Tourism Marketing District (TMD) was formed in May 2010 in accordance with the Parking and Business Improvement Area Law of 1989, Part 6 of Division 18 of the California Streets and Highways Code (1989 Law) and the provisions of the California Constitution Article XIII D (Proposition 218).

The TMD allows assessed lodging businesses within the City of Santa Clarita (City) to support efforts to increase tourism in the City, which in turn increases hotel room night stays and, therefore, increases Transient Occupancy Tax (TOT) revenue back to the City.

Lodging businesses are assessed a two-percent fee for each room night. The TMD uses these dollars to fund programs, services, and special events that will deliver incremental new room night sales to its assessed members. The TMD works to create strong, measurable results in bringing more visitors to Santa Clarita.

ADVISORY BOARD
The Advisory Board consists of one specified representative from each of the participating hotels within the Hotel Tourism Marketing Benefit Zone and two City representatives selected by the City Manager.

The following lists the entities currently represented on the Advisory Board:

ORGANIZATION, BOARD MEMBER, & TITLE
Best Western – Terri Blumberg, General Manager
Courtyard by Marriott – Vincent Singletary, General Manager Embassy Suites – Danny Efron, General Manager
Holiday Inn Express - Karina Winkler, General Manager
Homewood Suites | Hampton Inn – Karla Iraheta, General Manager Hotel Lexen – Vimal Desai, Owner
Hyatt Regency – Clifford Monterrosa, General Manager
SpringHill Suites | Residence Inn - Shannon Hillygus, General Manager City of Santa Clarita – Tyler Pledger, Economic Development Manager City of Santa Clarita – Monica Fawcett, Economic Development Associate

3 District Boundaries

The boundaries of the TMD include all real property within the City of Santa Clarita. Within the TMD, a Hotel Tourism Marketing Benefit Zone was established by Ordinance No. 10-4 that currently includes the ten (10) hotel properties identified below:

Property Name
(Hotel/Business Name)

Assessor’s Parcel Number
Reference
Property/Business Physical
Address
Best Western Valencia Inn 2861-071-008 27413 Wayne Mills Place Santa Clarita, CA 91355
Courtyard by Marriott 2866-034-080 28523 Westinghouse Place Santa Clarita, CA 91355
Embassy Suites 2866-034-097 28508 Westinghouse Place
Santa Clarita, CA 91355
Hampton Inn 2866-035-007 28700 Newhall Ranch Road
Santa Clarita, CA 91355
Holiday Inn Express 2861-071-008 27513 Wayne Mills Place Santa Clarita, CA 91355
Homewood Suites 2866-035-007 28700 Newhall Ranch Road
Santa Clarita, CA 91355
Hotel Lexen Newhall 2831-018-040 24219 Railroad Avenue
Santa Clarita, CA 91321
Hyatt Regency 2861-062-020 24500 Town Center Drive
Santa Clarita, CA 91355
Residence Inn 2861-071-010 27505 Wayne Mills Place
Santa Clarita, CA 91355
SpringHill Suites 2861-071-010 27505 Wayne Mill Place
Santa Clarita, CA 91355

The properties identified in the grid above are currently all the hotels that are within the Benefit Zone for FY 2026-27. Should new hotel properties open, they would be assessed in accordance with the System of Assessment (Methodology) established by ordinance.

4 District Boundaries (continued)

In accordance with Ordinance No. 10-4 and Chapter 3.36 of Title 3 of the Santa Clarita Municipal Code, only properties designated as hotels and included within the Benefit Zone will be assessed.

“Hotel” shall mean any structure, or any portion of any structure, which is occupied or intended or designed for occupancy by transients, including but not limited to for dwelling, lodging, or sleeping purposes, and includes any hotel, inn, tourist home or house, motel, studio hotel, bachelor hotel, lodging house, rooming house, apartment house, dormitory, public or private club, mobile home or house trailer at a fixed location, or other similar structure or portion thereof, duplex, triplex, single-family dwelling units except any private dwelling house or other individually owned single-family dwelling rented only infrequently and incidental to normal occupancy or any timeshare as set out in Revenue and Taxation Code Section 7280; provided, that the burden of establishing that the facility is not a hotel shall be on the owner or operator thereof.

The proposed system of assessment for the District is designed to generate revenue from hotels in the City to provide a method of funding public programs and activities that will promote the City and hotels as a tourist destination. Hotels within the City limits comprise the Benefit Zone and are the only businesses proposed to be assessed. The FY 2026-27 annual assessments to be levied against hotels within the Benefit Zone are based on the benefits they derive from the program of activities. Businesses located outside the Benefit Zone (i.e., all non- hotel businesses) will not be assessed as they derive only, at most, an indirect benefit from the program of activities.

In accordance with Ordinance No. 10-4, in addition to any assessments, fees, charges, or taxes imposed otherwise in the City, the City Council proposes to levy assessments for fiscal year 2026-27 against businesses in the Benefit Zone for the purpose of funding the programs, activities, and services that will promote the City and hotels as a tourist destination. Each business in the Benefit Zone shall pay an assessment of 2% of total room rents charged and received from transient hotel guests who do not make the hotel their principal place of residence.

These assessments shall be due and payable and shall be paid at the same time and in the same manner that the TOT is due and payable, and shall be subject to the same penalties and interest for nonpayment.

The terms of the TMD apply to any newly established hotels immediately upon the first day of operation and following the public hearing conducted for inclusion into the TMD.

5 DISTRICT BOUNDARY DIAGRAM

Summary of Services & Activities

TMD funds are specifically allocated to attract visitors and generate room nights by supporting services and activities that provide direct benefits to TMD hotels. These services include, but are not limited to:
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6 Summary of Services & Activities

TMD funds are specifically allocated to attract visitors and generate room nights by supporting services and activities that provide direct benefits to TMD hotels. These services include, but are not limited to:
• Financial support for key regional and national events that drive tourism and promote the City
• Creation and execution of destination marketing strategies to boost visitor interest in Santa Clarita
• Advertising and public relations campaigns targeting both business and leisure travelers
• Funding and support for the Summer Visitor Trolley program to enhance the visitor experience
• Participation in strategic meetings and trade shows to connect with event producers and industry partners

Programs and Services for Fiscal Year (FY) 2025-26 included:
• Tourism advertising campaigns using digital media to reach leisure travelers within a 400-mile drive radius
• Summer Visitor Trolley program
• Two 60 x 60” diorama displays featured at Hollywood Burbank Airport
• Led familiarization tours for the Brazilian Paralympic and Korean Olympic delegations, showcasing local facilities for Los Angeles 2028 pre-Olympic training camps
• Attended business development meetings, tradeshows, and market forums including:
o Associations West Annual Conference
o Visit California Outlook Forum
o Los Angeles Market Outlook Forum
o Student & Youth Travel Association
o CalTravel Summit and Board Meetings

7 Advertising
TMD funds effectively supported the launch of comprehensive multimedia advertising campaigns, including print, digital ad networks, and social media platforms, to attract visitors to Santa Clarita.

Marketing efforts targeted key feeder markets within a 400-mile radius. These funds enable simultaneous outreach to multiple audiences including: leisure travelers, corporate meeting and conference planners, and sports tourism event organizers. Campaigns have delivered strong results, including enhanced brand recognition, measurable hotel room bookings, increased year-over-year traffic to the Tourism website, and growth in corporate meetings and events. The continued use of TMD dollars to promote Santa Clarita as a destination has consistently demonstrated positive returns.

Media Strategy
• Emphasize Santa Clarita’s key advantages for leisure travelers including location, value, and region-specific experiences.
• Engage drive-market audiences with ads that lead to content on VisitSantaClarita.com, highlighting thrills, outdoor fun, family activities, and entertainment. • Prioritize digital media channels (display, mobile, video, email, social) to drive conversions. • Geo-target top-performing California markets to enhance impact. • Place ads in content categories aligned with audience interests: family fun, outdoor adventure, entertainment, and thrills.
• Reach travelers actively researching trips to the Los Angeles area. • Boost social engagement through sweepstakes promotions.

FY 2025-26 Leisure Campaign Results
The TMD organized multiple advertising campaigns in FY 2025-26. These are results from the campaign that ran from October 1, 2025 – February 15, 2026.

YOUTUBE PERFORMANCE MARKETING SOCIAL MEDIA
1,145,730 views 14,868 emails collected 1,061,466 reach

73.24% completion rate 24,939 link clicks

8 DRAFT FY 2026-27 BUDGET

Division/Program: Economic Development – Tourism
Marketing District
Fund Name: Tourism Marketing District
Account Number: 3603504
Personnel
500201 Part-Time Staff $60,035
Operations & Maintenance
510102 Membership & Dues $6,765
510104 Printing $24,000
511101 Special Supplies $1,000
513103 Telephone Utility $1,250
516101 Contractual Services $141,500
516102 Professional Services $234,000
516104 Advertising $294,505
516105 Promotion & Publicity $20,000
516108 Graphic Design Services $5,300
519101 Travel & Training $16,000
519104 Auto Allowance & Mileage $600
DRAFT Total Operations & Maintenance FY 26-27 $804,955 Beginning Fund Balance 7/1/2026 $1,507,011
2026-27 Revenue $1,000,000
2026-27 Expenditures $826,549
Estimated Ending Fund Balance 6/30/2027 $1,680,462

9 FY 2026-27 Initiatives

The TMD’s objective remains to increase demand for overnight visitation, including leisure, group, and meeting business, during the shoulder season (September through March) with a focused strategy centered on drive market growth and the expansion of outdoor recreation and entertainment experiences.

Business-Driven Sales and Advertising
• Prioritize high-performing drive and regional feeder markets to capture short-term, high-conversion travel demand
• Refine digital marketing strategies across display, mobile, video, email, and social media, with an emphasis on geo-targeting and conversion-focused campaigns • Enhance website and digital content to better showcase itineraries, experiences, and trip-planning tools that convert interest into overnight stays • Support group and meeting business through targeted incentives aligned with shoulder season availability
• Participate in select trade shows that deliver the highest potential for small- to medium- sized convention and meeting lead generation, aligned with targeted drive and regional markets
• Strengthen data-driven decision making by leveraging analytics to continuously optimize targeting, messaging, and channel performance
• Align campaign messaging around Santa Clarita’s strengths in outdoor recreation, trails, open space, and entertainment offerings

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