SMTMD Annual Report Page 1 of 7 April 1, 2025
2025 SMTMD Annual Report
Santa Monica Travel & Tourism
April 1, 2025
Introduction
This report outlines the annual Tourism Marketing District plan from Santa Monica Travel & Tourism, a not-for-profit organization that works to strengthen our local economy by enhancing and promoting our community as a distinctive, compelling and welcoming travel destination.
Background
Pursuant to Section 36650 of the Property and Business Improvement District Law of 1994, Streets and Highways Code Division 18, Santa Monica Travel and Tourism submits annual reports outlining the improvements and activities to be provided for the calendar year.
Submitted to:
Jennifer Taylor, Economic Development Manager, City of Santa Monica Oscar Santiago, Director of Finance, City of Santa Monica Prepared by:
Misti Kerns, President/CEO of Santa Monica Travel & Tourism For the Period of:
Fiscal Year 2024-2025
Submitted on April 1, 2025: ________
Enclosures:
Attachment A. 2025-2026 Budget
Attachment B. TMD ADR Assessment for 2024
Attachment C. Tourism Marketing District Plan
Attachment D. 2025-2026 Operating Plan
SMTMD Annual Report Page 2 of 7 April 1, 2025
Santa Monica Travel and Tourism
TMD Report Plan for Fiscal Year 2024-2025
Section One – Proposed Boundary Changes
Definition: Per section 36650 Report by Owners Association; Approval or modification by city council section (b)(1): Any proposed changes in the boundaries of the improvement district or in any benefit zones or classification of businesses within the district.
Response: In the fiscal year 2024-2025, there will be no changes in the boundaries of the improvement district.
SMTMD Annual Report Page 3 of 7 April 1, 2025
Section Two – Programs and Services for Fiscal Year 2025-2026 Definition: Per section 36650 Report by Owners Association; Approval or modification by city council section (b)(2): The improvements and activities to be provided for that fiscal year.
Programs and Services:
See Attachment D: 2025-2026 Operating Plan.
SMTMD Annual Report Page 4 of 7 April 1, 2025
Section Three – Approved Budget for Fiscal Year 2025-2026 Definition: Per section 36650 Report by Owners Association; Approval or modification by city council section (b)(3): An estimate of the cost of providing the improvements and the activities for that fiscal year.
Response: See Attachment A. 2025-2026 Budget. The 2024-2025 Budget was presented to the SMTT Board of Directors on March 12, 2025, where the Board of Directors approved the budget as presented unanimously. Minutes from the March 12, 2025, Board of Directors Meeting adopting the 2025-2026 budget will be presented at the June 4, 2025, Joint Annual Board and TMD Committee Meeting. Following the June 4, 2025 meeting, SMTT will forward the final minutes within 48 hours to the Economic Development Department.
SMTMD Annual Report Page 5 of 7 April 1, 2025
Section Four – Assessment Rates
Definition: Per section 36650 Report by Owners Association; Approval or modification by city council section (b)(4): The method and basis of levying the assessment in sufficient detail to allow each business owner to estimate the amount of the assessment to be levied against his or her business for that fiscal year.
Response:
Pursuant to Section V(B) of the Management District Plan, assessment rates may be increased annually by a maximum of $0.25 for Tier 1 and 2 lodging businesses and a maximum of $0.10 for Tier 3 lodging businesses. Assessment rates are based on the assessed lodging businesses’ average daily rate, based on the previous year’s performance. Lodging businesses with an average daily rate less than $100 will not be included in the district or assessed.
The TMD Hotel Committee held their regular quarterly meeting on February 11, 2025, voting unanimously to move the July 1, 2025, assessment start date to January 1, 2026, and unanimously voting to increase the TMD collection rates for calendar year 2026, the rates for calendar year 2026 are listed below:
Average Daily Rate Assessment Per Occupied Room Per Night for January 1, 2025
Tier 3: $100-$199.99 $2.30
Tier 2: $200-$300 $6.25
Tier 1: Over $300 $7.25
See Attachment B. TMD ADR Assessment for 2024.
SMTMD Annual Report Page 6 of 7 April 1, 2025
Section Five – Carryover Dollars from Fiscal Year 2024-2025 Definition: Per section 36650 Report by Owners Association; Approval or modification by city council section (b)(5): The estimated amount of any surplus or deficit revenues to be carried over from a previous fiscal year.
Response: There are estimated to be no carryover dollars from fiscal year 2024-2025.
The contingency balance for fiscal year ending June 30, 2024, was $264,759 (4.27% of the annual funds per the SMTMD plan).
SMTMD Annual Report Page 7 of 7 April 1, 2025
Section Six – Estimated In-Kind Contributions for Fiscal Year 2025- 2026
Definition: Per section 36650 Report by Owners Association; Approval or modification by city council section (b)(6): The estimated amount of any contributions to be made from sources other than assessments levied pursuant to this part.
Response: The projected in-kind contributions for the year 2025-2026 are $265,000.
These are additional contributions from local businesses (in-kind) towards programs and services.
1 SANTA MONICA TRAVEL & TOURISM
PROGRAMS AND SERVICES OPERATING PLAN
July 1, 2025 – June 30, 2027
2 TABLE OF CONTENTS
Executive Summary --------------------------------------------------------------------------------------------- 3 One Plan, Two Funding Sources ---------------------------------------------------------------------------- 6 Funding Sources ------------------------------------------------------------------------------------------------- 8 Programs & Services-------------------------------------------------------------------------------------------10 Lane 1: Drive Balance Demand for the Destination----------------------------------------------------16 Travel Trade – Domestic & International Markets ------------------------------------------------------17 Santa Monica Meet---------------------------------------------------------------------------------------------26 Lane 2: Enhance the Brand and Steward the Destination Experience----------------------------29 Experience Management Plan (EMP) ---------------------------------------------------------------------29 Tourism Improvement District (TID)------------------------------------------------------------------------30 Brand Campaign ------------------------------------------------------------------------------------------------30 Paid Media--------------------------------------------------------------------------------------------------------31 Santa Monica City Shared Identity Project ---------------------------------------------------------------32 Content and Social Media ------------------------------------------------------------------------------------32 santamonica.com -----------------------------------------------------------------------------------------------34 Santa Monica Restaurants -----------------------------------------------------------------------------------35 Media Relationships--------------------------------------------------------------------------------------------35 Crisis Communications ----------------------------------------------------------------------------------------37 Lane 3: Champion the Value of Tourism------------------------------------------------------------------40 Board Engagement---------------------------------------------------------------------------------------------41 Community & Civic Relations --------------------------------------------------------------------------------42 Santa MoniCARES ---------------------------------------------------------------------------------------------43 Tourism Industry Leadership---------------------------------------------------------------------------------44 I Am Santa Monica ---------------------------------------------------------------------------------------------44 “I Am Your Destination” Program ---------------------------------------------------------------------------45 Lane 4: Strengthen Strategic Partnerships ---------------------------------------------------------------47 Strategic Partnerships -----------------------------------------------------------------------------------------47 Lane 5: Ensure Operational Excellence-------------------------------------------------------------------50 Operational Excellence ----------------------------------------------------------------------------------------50 Emergency Preparedness ------------------------------------------------------------------------------------51 Destination Marketing Accreditation Program (DMAP)------------------------------------------------51 Closing-------------------------------------------------------------------------------------------------------------53 3 EXECUTIVE SUMMARY
Dear Santa Monica Community and Tourism Business Partners, On behalf of the entire Board of Directors and Santa Monica Travel & Tourism (SMTT) staff members, we are pleased to present our program and services operating plan covering July 1, 2025, through June 30, 2027.
We’ve come a long way over the past four years and our destination continues to experience growth. However, due to recent natural disasters and the current geopolitical climate, there are many factors threatening a full recovery. Historically, prior to the pandemic, our visitor origin to Santa Monica was at a steady 50% from key international markets. Targeting and attracting this visitor base has been a strategic approach for decades as international visitors use public transport, stay longer in the destination and have a higher spend when here. While we are seeing international travel rebound at our hotels, the journey to full recovery continues as visa processing times remain elevated and the changing political landscape poses an increased threat. As an example of this, Canada recently called for a travel boycott to the United States.
While Santa Monica was fortunate to avoid any damage to infrastructure, the Los Angeles wildfires created a media perception locally, domestically and internationally that our city was closed for business. As such, our team has been aggressive to correct this media narrative and raise awareness that our beachside city is fully open for business and welcoming travelers. In fact, less than 2% of Los Angeles County burned. However, more work is needed to raise awareness of this.
Despite these headwinds, the United Sates is on the brink of a historic travel surge with mega events like the 2026 World Cup and 2028 Summer Olympic Games taking place in Los Angeles. Santa Monica is bound to benefit from these. However, the U.S. Travel Association has shared that advancements in travel technology are needed for us to fully capitalize on the opportunities. Specifically, enhancements are needed to visa processing, airport screening and staffing and customs wait times.
These factors continue to impact the economy of Santa Monica’s hotels, restaurants, attractions, retail establishments, city revenues and our daily lives.
More optimistically, the U.S. Travel Association estimates that domestic leisure travel spending will grow 3.9% in 2025, equally 2019 levels. Air travel volumes are expected to continue growing into 2026 and beyond, bringing further optimism for our industry.
Visit California shows a similar forecast with total domestic visitor spending expected to grow by 3% in 2025. With international travelers, price remains a top barrier. However, this segment is still expected to grow by 22% in 2025.
4 Santa Monica’s tourism industry is a critical source of jobs and revenue that contributes to a thriving and sustainable local economy. Pre-pandemic, visitor spending was nearly $2 billion with Transient Occupancy Tax (TOT) generating over $58 million into the City of Santa Monica’s general fund, providing for essential city services, including police and fire, parks, libraries, education and road improvements.
To ensure a strong, resilient and vibrant Santa Monica, our internal work is just as important as our external efforts. Over the next year, SMTT will continue to produce our annual economic impact study and utilize available research tools to help identify trends and track results. Additionally, this information will help to inform the Santa Monica Experience Management Plan (EMP) - a roadmap for the future which outlines nine strategies to optimize the Santa Monica experience for our residents and visitors through 2032 to preserve and enhance our quality of life. Each strategy has a dedicated localized committee to guide and ensure that progress is shared and stays on track. This plan is a collaborative vision created with the support of the City of Santa Monica, along with residents, businesses and community leadership. The EMP remains a priority as we rebuild the tourism industry and guide execution of those strategies for overall communitywide success.
We look to the future with hope, even as we reflect on the ongoing effects of this major global disruption. To rebuild our community, we must focus on investments, partnerships, innovation, and collaboration with all sectors. This will help strengthen our businesses, keep jobs in our area, and sustain the vital tourism revenues that support essential city services for our residents, businesses, employees, and visitors.
Just as our community came together to support our neighbors in the Los Angeles wildfires, so too will we come together to ensure our beachside city is offering the best visitor experience possible.
Santa Monica has a lot of spirit, and when we come together as one, we can’t be stopped.
In gratitude,
Misti Kerns, CMP CDME
President/CEO
Santa Monica Travel & Tourism
5 ONE PLAN, TWO FUNDING SOURCES
While Santa Monica Travel & Tourism (SMTT) is supported through two funding sources, the organization operates from one cohesive strategic plan. Our two-year rolling strategic plan will align with the strategies in the Santa Monica Experience Management Plan (EMP) that provides a roadmap for destination success through 2032.
We continue to see growth in travel and tourism to Santa Monica as well as economic recovery; however, we remain conscious of the need to continually respond to shifts in the travel industry and the community. While the needs, programs and markets may have altered in response to emergent activity, our five strategic areas of focus remain:
• Drive Balanced Demand for the Destination
• Enhance the Brand and Steward the Destination Experience • Champion the Value of Tourism
• Strengthen Strategic Partnerships and Relationships
• Ensure Operational Excellence
This work plan details our initiatives and programs according to the above strategic areas of focus. The following provides an overview of our funding sources, and our expenditures aligned with our various departments. Further details on city-funded programs are outlined below for reference.
Promoting the destination and the experiences it offers serves as a catalyst of economic development. Santa Monica Travel & Tourism’s purpose is to build, protect and promote Santa Monica’s brand and international reputation as a destination; attract decision makers and new investments; and help local businesses expand their global reach.
Destination promotion helps sustain and create local jobs that spur economic growth in the city and helps to improve the quality of life for Santa Monica residents.
When the Santa Monica Tourism Marketing District (TMD) was established in 2013, it was not meant to replace city funding. It was meant to demonstrate public-private partnership between the City of Santa Monica and the hotel community, facilitating a unique approach to increasing employment, taxes and revenues and has proven successful.
There are hundreds of Santa Monica businesses (beyond our hotels) that directly benefit from a strong visitor base. City funding ensures the promotion of those local businesses and provides opportunities for them to reach and serve that visitor base. Small businesses are some of the most dependent on us, as they often are less equipped to gain high visibility and reach domestic and international visitors to stimulate visitor spending. This is more critical than ever as we rebuild from the economic downturn. 6 City funding allows us to provide basic services to more than eight million visitors once they are in our community. It helps steer them to our businesses in each neighborhood, communicate local ordinances and provide public safety tips to ensure they responsibly enjoy their Santa Monica experience, an area that will require further attention as visitation grows.
Having a base of city funding permits SMTT to utilize its TMD funding to maintain a consistent presence in top-producing domestic and international markets.
City Contract,
$2,994,004.00
Other Income,
$190,000
Visitor Center Retail
Sales Revenue,
$85,000
TMD Collections,
6,813,435
2025-2026 Funding Sources
City Contract Other Income Visitor Center Retail Sales Revenue TMD Collections TIS, $1,243,002
Marketing, $1,754,608
Visitor Services,
$216,330
MICE, $375,000
Client Services, $155,120
Public Relations,
$646,898
General & Administrative,
$1,454,000
Salaries & Benefits,
$3,802,224
Fixed Asset, $98,185
2025-2026 Total Budget Expenditures
TIS Marketing Visitor Services
MICE Client Services Public Relations
General & Administrative Salaries & Benefits Fixed Asset (37% of total budget)
City Contract,
$2,994,004
City Other Income,
$200,000
Visitor Center Retail Sales
TMD Collections Revenue, $135,000 ,
7,125,967
2026-2027 Funding Sources
City Contract City Other Income Visitor Center Retail Sales Revenue TMD Collections TIS , $1,381,413
Marketing,
$1,625,000
Visitor Services,
$209,000
MICE, $355,000
Client Services,
Public Relations $230,213 ,
$650,000
General &
Administrative,
$1,530,098
Salaries & Benefits,
$4,023,463
Fixed Asset,
$98,185
2026-2027 Total Budget Expenditures
TIS Marketing Visitor Services
MICE Client Services Public Relations
General & Administrative Salaries & Benefits Fixed Asset (38% of total budget)
9 CITY FUNDING USE BY DEPARTMENT
Programs and services utilizing city funding are outlined below by department:
Marketing
• In partnership with SMTT’s new Agency of Record, produce new video and photo assets that showcase a clean and open Santa Monica visitor experience. • Partner with Visit California and Brand USA to leverage Professional Meetings and Events (PME) co-opportunities and further infiltrate the Meetings, Incentives, Conferences and Exhibitions (MICE) business, both domestically and internationally.
• Research and produce an Economic Impact Report monthly, quarterly and annually.
• Continue community sponsorships budget permitting such as: ICE at Santa Monica, SaMo Pride, Pier 360, Buy Local’s Most Loved contest, 4th of July Parade, Sister City Association, Santa Monica Police Activities League, Chrysalis, local youth music groups, Santa Monica Conservancy, Santa Monica History Museum, Business Improvement District (BID) advertising partnerships and SMDP’s ‘Tis the Season guide.
• Sustain ongoing sponsorship commitments for newly established events, such as the LA Wine & Food Festival, Tech Week and Frieze Los Angeles. • Update, monitor and facilitate the execution of the Santa Monica Experience Management Plan (EMP).
• Perform traveler and resident outreach through local education and advertising campaigns promoting Visitor Information Centers, car-free messaging, sustainability, reinforcing and sharing local ordinances, public safety, crisis communications (as needed) and economic impact research. • Create free programs for local businesses and residents, such as I Am Santa Monica, Santa Monica Restaurant Week and I Wish I Had an Extra Bedroom campaign.
• Provide a free Partner Portal that allows businesses to customize their business landing page on santamonica.com.
• Utilize search engine optimization (SEO) to drive organic traffic to santamonica.com.
• Act as the central source of information to educate and advise visitors, travel and trade professionals and media about Santa Monica’s overall visitor experience. • Build awareness of Santa Monica as an attractive and unique travel destination. • Provide client services as needed for small meetings and conference groups, with materials to encourage attendance.
• Supply virtual and printed collateral pieces including, but not limited to, the Official Santa Monica Visitor Guide & Map and corporate planner publications. • Partner with the city to fully inventory and utilize its facilities when feasible. 10 • Promptly answer all correspondence related to convention and visitors’ facilities in Santa Monica and disseminate information through correspondence, media publicity and personal contacts that favorably advertises advantages and opportunities.
• Promote travel and tourism activities that will bring additional revenue to the city and local businesses.
• Host familiarization tours (FAMs) for leading domestic and international travel industry buyers, journalists, editors, influencers and broadcasters. • Proactively secure broadcast segments that showcase the Santa Monica visitor experience.
• Attend global and domestic media networking events that connect the travel industry with top-tier journalists, editors, influencers and broadcasters. • Direct efforts toward cultivating a dynamic and contemporary brand presence aimed at fostering visitor engagement and stimulating economic growth. • Drive awareness and participation in community-based charitable initiatives utilizing the Santa MoniCARES website, collateral materials and advertising channels.
• Provide complimentary promotional opportunities to local partners, encompassing 360-degree video capture, social media promotion, destination signage and exposure on santamonica.com.
• Expand Santa Monica’s competitiveness for groups by advising and supporting group marketers.
• Assist and explore opportunities to expand and improve existing products, services and experiences.
• Periodically review public and private facilities and services in Santa Monica necessary for travel and tourism activities, with the goal to advise the city and business community of concerns and needed improvements that align with the Experience Management Plan (EMP).
• Facilitate roundtable educational sessions for local businesses. • Publish and inform tour companies and drivers of all bus loading zones in the destination.
• Pursue integrated marketing campaigns and experiential brand activations in designated target markets.
• Create promotional videos for key pillars, such as culinary, health & wellness and outdoor activities. These videos will provide us with exciting content to house on our website and share through social media and newsletters and use as pitching materials to secure media coverage.
• Develop Virtual Reality (VR) tours of destination experiences and businesses. • Begin development of short- and long-range sponsorship and partnership programs for SMTT, including:
• Route 66 Centennial in 2026
• 2026 NBA All-Star 2026
11 • 2026 FIFA World Cup 26
• 2027 Super Bowl LXI
• 2028 Olympic & Paralympic Games
• Continue to elevate our destination brand refresh and address new luxury hotel and business additions in collateral.
• Update destination photography and videography as needed to evolve the brand. 2025-2026 Programs / Additions
• Expand to sales audiences in the Middle East to ensure Santa Monica is well positioned to attract a wide range of international visitors. • Expand and re-engage media in India to ensure Santa Monica is featured in travel outlets positioning the city as a must-visit destination. • Act on learnings of Santa Monica Experience Management Plan (EMP). • Continue to elevate brand collateral for luxury markets and MICE. • Submit Santa Monica Travel & Tourism to brand design, travel, hospitality and group/ MICE industry publication awards for recognition. • Plan new opportunities for partners and local businesses to work with us and be featured on our website such as a more robust “Like a Local” section marketed toward residents.
• Work with our new Agency of Record (AOR) to make seasonal landing pages and our Trip Planner more robust with partner suggestions and specials. • Introduce Matador AI chatbot to santamonica.com.
• Increase dynamic itineraries on our website to drive traffic, increase SEO and highlight new luxury offerings.
• Pursue opportunities for trade and travel shows in emerging markets, pending budget.
• Find more opportunities to collaborate on social media with partners, local businesses and influencers while sharing more dynamic videos and evolving with social media trends.
• Develop engaging campaigns for residents to be a part of to promote our value. • Support and promote the Santa Monica 150th Anniversary celebrations. • Make our Route 66 landing page more robust with events and specials, while seeking out further partner involvement opportunities. This includes the launch of a Route 66 song contest.
• Seek out opportunities for a new “Taste of Santa Monica” culinary event with local chefs and publish a Santa Monica cookbook on a regular basis to expand upon Santa Monica as a culinary destination.
• Collaborate with Visit California on culinary offerings, through participation in the Visit California Culinary Committee.
• Launch marketing committee to seek out business community involvement in marketing opportunities and needs.
12 • Expand retail merchandise line through custom merchandise creation and brand partnerships.
2026-2027 Programs/Additions
• As budget permits, expand sales and PR markets in emerging global markets including India, the Middle East, Brazil and Mexico.
• Expand upon luxury brand photography and offerings to reflect Santa Monica’s new business growth.
• Pursue an opportunity to create a Santa Monica Fashion Week appealing to leisure and sport-enthusiast travelers.
• Increase web traffic to seasonal landing pages and partner specials year over year (YOY).
• Support current EMP committees and add additional committees in line with goals.
Visitor Services
• Operate three Visitor Information Center locations, plus a mobile Visitor Center that serves community events. Visitor Center staff serve when needed as distribution points for city programs and during emergencies. They serve as ambassadors in providing information and services to residents and many of Santa Monica’s 5.3 million annual visitors, 365 days a year.
• Support local community events on site including, but not limited to: National Night Out, Pier 360, local BID holiday events, Buy Local, MAINopoly, Summer SOULstice, ICE Santa Monica, Annual Christmas Tree Lighting at Santa Monica Place and Meet Me Under the Fig Tree.
• Themed lighting on locations to further welcome visitors, celebrate holidays and highlight city-wide events.
• Continue to serve as a city-wide distribution point for resources and information for Santa Monica businesses, residents and visitors.
• Share information and celebrate the positive impacts of tourism for the community at the Annual Tourism Summit, which is a gathering of business, civic and nonprofit organizations. The Tourism Summit is a shared expense between City and TMD during the month of May which is California Tourism Month. • Provide curbside drop-off service for Santa MoniCARES donation collections benefiting Santa Monica-based nonprofits.
• Respond to text-on-demand requests seven days a week during operating hours at Visitor Information Centers.
• Explore and implement AI tools to provide information 24 hours, 7 days a week to potential and visiting individuals.
• Provide Route 66 certificate of completion for travelers who complete the route. • Measure overall number of visitors served.
13 2025-2026 Programs/Additions
• Advance development plan for Visitor Service locations upgrades, both physically and technologically.
• Finalize plan for Visitor Center product and signage, including SMTT’s mobile vehicle, in line with the brand refresh creative.
• Have Santa Monica representation outside of SoFi for international visitors in town for the FIFA 2025 Club World Cup and 2026 World Cup
• Bring back and revisualize an augmented reality visitor guide application that shows reviews of each business and restaurants in Santa Monica. • More representation at local Santa Monica community events and periodic popups at farmers markets. • Prepare for bulk order retail program for retail to local businesses. 2026-2027 Programs/Additions
• Touch screen kiosk(s) or tablet at all VC locations that can bridge the language barrier between our staff and international guests.
• 1-, 2- or 3-day itinerary booklets at all locations for Santa Monica and surrounding attractions.
• Merchandise pop-ups showcasing our merchandise around the city. • Follow up on Route 66 stamp booklet campaign for centennial. 14 5 STRATEGIC LANES OF WORK
SMTT’s five strategic areas of focus are the foundation of our work plan. Here we outline the programs, initiatives and staff efforts that help propel our strategies to success for the destination:
LANE 1: DRIVE BALANCED DEMAND FOR THE DESTINATION
Objectives:
• Increase year over year (YOY) transient occupancy tax (TOT) and average daily rate (ADR). Increase domestic travel levels from target markets. • Increase international visitation from key target markets. • Grow average length of stay from 1.46 to 1.73 nights. Ultimate target: achieve an average length of stay of 2.0 nights in Santa Monica.
• Increase overnight visitation to support key regional and local events. • Position Santa Monica as the premier overnight base for regional events. • Tap into high-net-worth individuals without overstepping the destination’s core clientele.
• Boost site inspections to hotels and venues by 20%.
• Further develop luxury destination offerings and experiences.
It is important to emphasize that several major sporting events are taking place in Los Angeles including the:
• 2026 NBA All Star.
• 2026 FIFA World Cup.
• 2026 U.S. Women's Open.
• 2027 Super Bowl LXI.
• 2028 Olympic & Paralympic Games.
As such, it is crucial for SMTT to utilize and work on these relationships for future bookings and partnership programs.
SMTT will gauge success in its efforts according to these key performance indicators:
Destination Performance
• Occupancy.
• Average Daily Rate (ADR).
• Revenue per available room.
• Visitor makeup (% domestic vs. international).
• Transient Occupancy Tax (TOT) generated.
15 • Retail and sales taxes generated.
• Tourism Marketing District (TMD) collections.
• Employment sustained in our industry.
SMTT Programs Performance
• Room nights booked during campaigns.
• Website traffic and links out to partner websites.
• Increase in social media activity.
• Incentive and meetings business booked.
• Travel trade bookings.
• Overall economic growth year-over-year.
TRAVEL TRADE – DOMESTIC & INTERNATIONAL MARKETS
As mentioned, in the executive summary, many challenges remain and while international inbound travel to the U.S. and California continues to increase, there are several hurdles impacting a full recovery. First, the current geopolitical climate is rife with threats. An example of this is Canada’s recent call to boycott travel to the United States. Additionally, travelers from key inbound markets who are applying for visitor visas for the first time are experiencing wait times that are exceedingly high. Third, with the strength of the U.S. dollar, price continues to be a top pain point for international travelers. Finally, international airlift into LAX still is not at sufficient levels and much growth is needed.
A new report by the Commission on Seamless and Secure Travel warns that the U.S. air travel system is at risk of being overwhelmed by a surge in demand due to major global events like the 2026 FIFA World Cup, 2028 Olympic Games, and the U.S. 250th anniversary. The report outlines urgent recommendations for modernizing air traffic control technology, addressing air traffic controller shortages, and enhancing security measures to ensure smooth and efficient travel. These advancements aim to improve security, reduce delays, and help position the U.S. as a global leader in travel by making the travel system more efficient in the face of growing demand.
The U.S. Travel Association is calling for immediate action from the White House and Congress to implement the Commission's recommendations. Key steps include establishing a task force to lead efforts for major upcoming events, improving visa processing and security measures, and investing in advanced airport screening technology. The report emphasizes the importance of streamlining customs procedures and utilizing biometrics to reduce wait times for travelers. With these improvements, the U.S. could unlock a significant economic opportunity and avoid the frustrations of overcrowded airports, but it requires swift and coordinated action from the government. 16 Listed below is our proposed plan and framework to keep Santa Monica top-of-mind among travel agents, tour operators and meeting planners during this crucial time. We will increase international programs in countries that have historically been top source markets for our destination, and which are expected to have the fastest travel recovery.
We will also build upon the domestic programs and partnerships that we established in the last four years to ensure a diversified and holistic approach is taken.
It is important to note that all areas below are based on available budget, and that this plan is subject to change. If we have learned anything from the past four years, it is that we must be able to adapt and pivot as conditions continue to evolve.
Primary Markets:
• United States.
• United Kingdom/Ireland.
• Australia/New Zealand.
• Canada.
• France.
• Germany.
Exploratory Markets:
• Mexico.
• India.
• Brazil.
• GCC: Bahrain, Kuwait, Qatar, Saudi Arabia, UAE.
• Japan.
• South Korea.
• China.
A continued investment in the luxury segment will remain a focal point for our domestic and international strategies. In 2025, SMTT renewed marketing partnerships with three of the leading luxury travel networks: Virtuoso, Serandipians and Signature Travel Network. These partnerships provide exclusive access to luxury advisors and clients in North America and abroad and have successfully provided us with unique opportunities for joint marketing, webinars, tradeshows and in-person events.
In North America, SMTT will continue to grow Santa Monica’s presence in Canada in partnership with our in-market representation team. Santa Monica also has an opportunity to grow business during our winter and shoulder seasons among Canadian snowbirds. 17 Along those lines, we will be looking to our neighbor to the south, Mexico, and exploring opportunities to potentially grow visitation from this market and, budget permitting, the others listed above.
Overseas, we will be focused on strengthening our relationships and driving room nights with the travel trade in key markets such as the United Kingdom/Ireland, Australia/New Zealand, France and Germany.
United States
Travel Network/Consortia Partnerships
• Virtuoso.
• Signature.
Trade Shows/Events
• IPW Fort Lauderdale.
• ILTM North America.
• ILTM Cannes.
• Brand USA Travel Week.
• Go West Summit.
• Virtuoso Travel Week.
• Signature Travel Conference.
• Visit California Connections/Luxury Forum.
2025-2026 Programs/Additions
• Training Programs:
o Virtuoso Training Webinar.
o Visit California STAR to launch updated content.
• Develop Route 66 programs to increase hotel bookings during the centennial. • Identify final partners and launch for Route 66 programs to increase hotel bookings.
• Continue awareness and marketing on Route 66 centennial experiences and packages.
United Kingdom/Ireland
Trade Shows/Events
• Santa Monica Sales Mission.
• Visit California Pan Euro Media Roadshow.
18 • Visit California Connections/Luxury Forum.
• Virtuoso Forum UK/Ireland.
• Virtuoso On Tour UK/Ireland.
• Brand USA Travel Week Europe.
• Visit USA Summer Affair.
• Aer Lingus Roadshow.
• Unite USA Event.
Campaigns
• Hotelbeds x Visit California.
• SoCal Triangle Joint Promotion (with Greater Palm Springs & San Diego). • Tour Operator, Brand USA and Visit California Co-Ops. • Hablo & Hablo Talks.
• Expedia & Hotels.com digital B2C campaign.
• Bonotel Marketing Campaign.
• Hotelbeds six-month marketing campaign.
2025-2026 Programs/Additions
• Explore activation and Sister City partnerships in Brighton and London.
Canada
• Travel Network/Consortia Partnerships
• Virtuoso Forum Canada.
• Virtuoso On Tour Canada.
• Travel Leaders Roadshow.
• Ensemble Travel Group.
Trade Shows/Events
• Santa Monica Sales & Media Mission.
• Visit California Reverse Sales & Media Mission.
• Visit California Connections/Luxury Forum.
• Ensemble Skyline.
• Discovery America AGM.
• Trevello Tradeshow and Trainings.
Campaigns
• Air Canada Vacations.
• Expedia Canada.
19 • Trevello Travel Group.
• Tour Operator, Brand USA, Virtuoso and Visit California Co-Ops. • The Travel Agent Next Door (TTAND) B2B.
• SpoiledAgent.com.
2025-2026 Programs/Additions
• Porter Airlines Luxury Travel Advisor FAM.
• Seasonal Toronto activation showcasing Santa Monica.
France
Trade Shows/Events
• IFTM Top Resa.
• Visit USA Workshops.
• Brand USA Travel Week Europe.
• Visit California Roadshow.
• Visit California Connections/Luxury Forum.
• ILTM Cannes.
• Visit California Pan Euro Media Roadshow
Campaigns
• Tour Operator Co-Ops.
• Havas Voyages Marketing Campaign.
• Hotelbeds 6-month marketing campaign.
2025-2026 Programs/Additions
• Execute activation in market, budget permitting.
Germany
Trade Shows/Events
• Visit USA Germany Roadshow.
• Visit USA Consumer Shows.
• Brand USA Travel Week Europe.
Campaigns
• CANUSA Touristik.
20 • CRD (with Greater Palm Springs & San Diego).
• FTI.
• America Unlimited/Feinreisen.
• SoCal Triangle Joint Promotion (with Greater Palm Springs & San Diego). • Opodo and Visit California Co-Op.
• HotelPlan (with Greater Palm Springs & San Diego).
• The German Beach Volleyball Association.
• Hotelbeds 6-month marketing campaign.
• Visit California Pan Euro Media Roadshow
Australia/New Zealand
Trade Shows/Events
• Visit California Sales & Media Missions.
• Visit USA Expos and Brand USA B2B Days.
• Visit California Connections/Luxury Forum.
• ILTM Asia Pacific.
• Brand USA Travel Agent Expo.
• Virtuoso Connects, Travel Week and On Tour.
Campaigns
• Flight Centre x Visit California.
• SXSW Sydney Brand USA’s “USA House” activation.
• Helloworld.
• Luxury Escapes.
• MTA Travel.
• Christmas Road Sales Mission.
• Tour Operator, Brand USA and Visit California Co-Ops. • Los Angeles Tourism & Convention Board Roadshow.
• Quantas Best of North America Training Day.
2025-2026 Programs/Additions
• Santa Monica Sales & Media Mission.
• Training Programs:
o Virtuoso Web15
o Visit California STAR Module update annually
21 Global
Trade Shows/Events
• ILTM Cannes.
• ILTM APAC.
• ILTM Brazil.
• ILTM North America.
• Visit California Connections/Luxury Forum.
• Virtuoso Travel Week.
• Virtuoso On Tour.
• IPW Fort Lauderdale.
• Go West.
• Brand USA Travel Week Europe.
• Brand USA Marketplace.
• Private Luxury Events Program.
• TFest Luxury Trade Show.
Campaigns
• Bonotel.
• Hotelbeds.
• Visit California Co-Ops.
• Brand USA Co-Ops.
• Airline Co-Ops.
2025-2026 Programs/Additions
• Leveraging Visit California and the Los Angeles Tourism & Convention Board’s efforts, SMTT may join exploratory activities in potential growth markets for Santa Monica including, but not limited to, Mexico, Brazil, India, Japan, South Korea and the Nordics. Activities may include sales missions, familiarization trips (FAMs) and industry events, budget permitting.
SANTA MONICA MEET
SMTT’s group sales team (Santa Monica Meet) has continued initiatives to represent our destination as a top choice for meetings and events both domestically and internationally.
Looking ahead, Santa Monica Meet will continue to do this by fortifying and building strategic partnerships with meetings-focused industry partners, as well as attending events to showcase our beach city to meeting and event professionals. Larger events like Genesis Invitational, Frieze LA and other major events in Santa Monica continue to be the focus for SMTT and the hotel community. As a result of the LA Wildfires, Genesis 22 Invitational had to move their 2025 tournament from Pacific Palisades to Torrey Pines, leading to a major loss of contracted room revenue for many Santa Monica hotels.
Additionally, the loss of the American Film Market (AFM) after 32 years will take time to replace and although an attempt was made to win AFM back in 2025, ultimately Santa Monica was not selected for the upcoming market. The return of Cirque du Soleil, other cultural experiences, new and upgraded product and new venues will help to keep Santa Monica top of mind.
The future continues to look brighter with the news of several major sporting events coming to the greater Los Angeles region in the next five years. As stated above, some of these include the 2025 Concacaf Nations League Finals, 2025 FIFA Club World Cup, 2026 FIFA World Cup, 2026 U.S. Women's Open Championship, 2026 NBA All-Star, Super Bowl LXI 2027 and 2028 Summer Olympic & Paralympic Games.
Santa Monica hotels are looking to retain legacy groups and secure new group business in the corporate, entertainment, incentive, sports and association segments. From the growing list of major sports events, to the enhancements currently being worked on at Los Angeles International Airport (LAX) and welcoming back cultural events like Frieze Los Angeles and Cirque du Soleil to Santa Monica, Santa Monica will also be a top choice for meeting planners and groups looking to stay in Los Angeles for ultimate VIP experiences and events.
We continue to see an increase in request for proposals (RFP) volume and hotels continue to receive short-term leads as soon as in the month, for the month, as well as RFPs for as far out as 2028 and beyond. For the domestic and international MICE market, factors such as tariffs, politics, inflation and negative media messaging (LA wildfires), many corporations are taking additional measures to ensure meetings and events are being considered in suitable destinations.
Key factors that will contribute to the success of group sales efforts:
• Increasing hotel partner participation at trade shows and sales missions. • Actively partnering with Visit California’s Professional Meetings & Events (PME) Taskforce (which SMTT serves on) and programming.
• Retaining SMTT’s Client Advisory Board and increasing the number of members YOY.
• Updating client network on new and updated hotel portfolio including hotel rebrands, renovations and unique event space updates.
• Site inspection assistance for qualified meeting planners. • New video and photography assets (virtual tours, updated meeting space images, hotel videos, etc.).
• Showcasing new experiences like LA Tech Week’s Innovation Hub, Cirque du Soleil, Frieze LA and more for unique incentive group experiences. 23 • Focusing on groups that are a fit for Santa Monica hotels (i.e. 25-125 rooms on peak).
As outlined below, Santa Monica Meet will exhibit at key trade shows and events to engage meeting professionals:
Maintaining Relationships
• Meeting Professionals International Southern California Chapter – committee member/ preferred annual sponsor.
• Society for Incentive Travel Excellence Southern California Chapter – active sponsor.
• West Coast DMO Alliance Programming and Events.
• GBTA Los Angeles Chapter – active member.
• Establishing and nurturing relationships with key intermediary companies such as ConferenceDirect, HelmsBriscoe, HPN, American Express, Meetings Made Easy, Prestige, Maritz and more.
Sales Missions in Key Target Markets
• Phoenix Metro.
• Northeast (New York & Boston).
• Salt Lake City.
• Northern California.
Trade Shows and Roadshows
• IMEX America.
• Prestige Global.
• Visit California Professional Meetings & Events Roadshows. • Retreat Resources Roadshows.
• C&IT Forum (International).
• HelmsBriscoe Annual Business Conference.
• IBTM America.
2025-2026 Programs/Additions
• Phoenix Sales Mission.
• East Coast Sales Mission.
• IMEX Frankfurt.
• Northstar Sports Leadership Forum.
24 2026-2027 Programs/Additions
• IBTM World.
• The Meetings Show.
• AMEX Interaction – EMEA Market.
Additionally, Santa Monica Meet will renew its partnership with Cvent as the industry leader in lead generation. SMTT will also seek new ways to secure business via new or alternative channels, such as Facebook groups like Fete and Entertainment Travel Community, MICE FAMs, and new industry events like PlannerHero roadshows and IMEX Frankfurt. However, the foundation of our group sales efforts will continue to be rooted in representing our beach city as a top destination for memorable and impactful events and securing new and repeat business for the future. 25 LANE 2: ENHANCE THE BRAND AND STEWARD THE DESTINATION EXPERIENCE Objectives:
• Maintain positive social sentiment across facets: accommodations, dining, retail, wellness, cleanliness and safety, returning to pre-pandemic levels. • Continuously optimize branding and assets to ensure cohesive collateral. • Expand luxury brand photography and collateral for luxury markets and MICE 25/26 & 27/28.
• Increase web performance: Optimize SEO, increase monthly visits, page visits per visit, average time on site year over year by 5-8%.
• Increase partner referrals year over year by 5 - 10%. • Successfully launch sales and production of annual visitor guide and map in house. • Bolster Santa Monica’s culinary identity to increase culinary tourism. • Foster relationships with community marketing experts, to ensure a robust and diverse marketing perspective.
• Explore and expand industry recognition opportunities. • Increase partner referrals year over year by 5-10%.
• Increase positive press coverage of the destination year over year by 10%; India market by 20% (Y1); Mexico market by 20% (Y2); Middle East market 20% (Y3) and (Y4); Brazil market by 20% (Y5).
• Increase Social Media Followers year over year by 1 – 5% dependent on platform, while also evaluating emerging channels
• Instagram: 60k (Y1), 64K (Y2), 68K (Y3) 73K (Y4), 78K (Y5) • Facebook: 79K (Y1), 80K (Y2), 81K (Y3), 82K (Y4), 83K (Y5) • X (Twitter): 42K (Y1), 43.5K (Y2), 45.5K (Y3), 47.5K (Y4), 50.5K (Y5) • Increase retail merchandise sales.
• Create a campaign to commemorate the Route 66 centennial – (Y1 & Y2). • Develop a campaign to celebrate and support Santa Monica’s 150th Anniversary (Y1).
• Steward the Experience Management Plan (EMP), to ensure goals are met.
Key Initiatives/Strategies:
• Plan both visitor and local focused content and marketing initiatives. • Elevate brand collateral for luxury markets and MICE (Y1). • Expand luxury brand photography and offerings (Y2).
• Submit SMTT to brand design, travel, hospitality, and group/MICE industry publication awards.
• Plan new opportunities for partners/ local businesses to work with us and be featured on our website such as the “Like a Local” section. 26 • Make seasonal landing pages and Trip Planner more robust with partner suggestions/specials.
• Increase dynamic itineraries on website to drive traffic, increase SEO, highlight new luxury offerings.
• Pursue opportunities for trade and travel shows in emerging markets, pending budget.
• Find more opportunities to collaborate with partners, local businesses and influencers on social media, share more dynamic videos. • Plan and create Route 66 landing page, events, partner involvement opportunities like commemorative decals in car dealership windows and passport incentive for visitors, create retail commemorating Route 66, and activate social media engagements.
• Seek out opportunity for a new Taste of Santa Monica event with local chefs and publish a Santa Monica cookbook.
• Support and promote the Santa Monica 150th Anniversary celebrations. • Collaborate with Visit California on culinary offerings, through participation in the Visit California Culinary Committee.
• Launch marketing committee (Y1).
• Expand retail merchandise line through custom merchandise creation and brand partnerships.
• Ensure all Santa Monica businesses are utilizing partner portal services and are scheduled for Threshold 360 services.
• Increase web traffic to seasonal landing pages and partner specials year over year (Y1 - Y5).
• Support current EMP committees and add additional committees, in line with next goals (Y2-5).
SANTA MONICA EXPERIENCE MANAGEMENT PLAN (EMP)
With our EMP Plan now updated we have moved to the process of implementation, which will continue to unfold over the coming years through 2032. There is much to do as we embark on this important journey.
For the first few years of the plan, we will focus on implementing programs for four of our nine key strategies (in bold below). A committee has been created for each of these strategies consisting of a cross section of key members of the community. Each committee has been appointed an SMTT facilitator to ensure open communications between all stakeholders in the EMP process:
• Ensure Santa Monica continues to be a safe and clean place. • Support livability for Santa Monica residents.
• Highlight and leverage cultural and historic experiences. • Promote a diversity of retail, dining and evening experiences. 27 • Foster memorable accommodation experiences that enhance the value proposition.
• Facilitate the viability of small and unique businesses. • Sustainably invest in making Santa Monica the greenest beach city in the U.S. • Support and enhance Santa Monica’s most important assets. • Enhance mobility for Santa Monica visitors, residents and workforce.
A governance committee has also been created to ensure that progress is made on each strategy and to prioritize short- and long-term goals. While SMTT is spearheading this process, we do not independently control or own the Plan, nor all the initiatives that will be pursued. A consultant has been retained to facilitate the first years of the implementation phase and guide the process city-wide.
Going forward, this plan will allow for implementation of areas and ideas that have been outlined in the EMP while further building out the plan for future years to build upon the experiences offered.
TOURISM IMPROVEMENT DISTRICT (TID)
In 2022 SMTT created the TID and works with participating hotels to create a voluntary tourism services district to support supplemental clean and safe services along Ocean Front Walk and the adjoining public right of way. This program has proven successful to the environment and SMTT has an agreement with Chrysalis to staff and execute this program, with pilot program funding from SMTT and continuing funding from participating hotels through a voluntary assessment.
BRAND CAMPAIGN
SMTT has collaborated with Agency of Record (AOR), Noble Studios, to execute the initial and subsequent phases of an award-winning brand refresh. This encompassed a meticulous brand health assessment, thorough exploration of paid media opportunities and in-depth brand discovery, culminating in a comprehensive research endeavor to objectively evaluate the Santa Monica brand, gauge visitor sentiment, identify target audiences, gather competitive insights and outline future objectives. This initial discovery led to the development of a bridge campaign, alongside the establishment of a brand platform and messaging strategy.
As we transitioned into 2024, SMTT proceeded into the second half of the rebrand’s phased approach, concentrating on finalizing the brand's visual identity, refining the brand campaign and overseeing video and photo production.
28 Moving into a new year, SMTT has signed a new AOR, 62ABOVE. The savvy team has already kicked things off by producing a drone video highlighting the message that Santa Monica is open for business following the Los Angeles wildfires.
We will continue to focus our efforts on top domestic feeder markets: San Francisco, Phoenix, New York City, Las Vegas, Chicago, Seattle and Washington D.C.; and internationally in key markets previously identified.
PAID MEDIA
Traditionally, paid media efforts have been focused on the fall, winter and spring shoulder seasons with hiatus in summer but to keep Santa Monica top of mind year-round, we have moved to an annual evergreen campaign that shifts based on seasonality and targeted time frames. Our objective is to create emotional connections to Santa Monica beyond landmarks and drive overnight and mid-week visitation from core audience segments and extend their length of stay by two nights or more.
The campaigns are focused on and will deliver on the following key performance indicators (KPIs):
• Increasing direct bookings to hotels and increase TOT revenues. • Increasing weekday hotel stays and business travel.
• Increasing length of stay and overall spend of visitors. • Increasing referrals to Santa Monica businesses via the Partner Portal. • Driving traffic to santamonica.com campaign landing page. • Increasing bookings through online travel agencies.
• Increasing social media presence and driving traffic to santamonica.com.
SANTA MONICA CITY SHARED IDENTITY PROJECT
SMTT is continuing to work with the City of Santa Monica and various stakeholders to develop a city brand shared identity that will allow the city to promote Santa Monica as a premier location for blue chip partnerships and flagship events.
CONTENT AND SOCIAL MEDIA
SMTT will continue to compile content from Santa Monica businesses for promotion through social media channels, the website and email.
SMTT’s social media strategy for the coming year will be to increase engagement and followers outside of the greater Los Angeles area, with a focus on top domestic feeder and international markets. SMTT’s in-house Social Media Manager has and will continue to spearhead fostering organic community engagement and crafting captivating content spotlighting Santa Monica's premier attractions, spanning outdoor dining, arts, culture, 29 recreational activities and more. We also plan to expand our social media presence by exploring new and underutilized identified platforms and partnering with key travel industry influencers who align with the values of Santa Monica to promote the destination to their followers.
SMTT distributes several e-newsletters targeting different audience segments to ensure the local business community, visitors, residents and travel and trade partners are aware of the latest news and happenings throughout Santa Monica. Newsletters and cadence are as follows:
Board of Directors Newsletter
• Audience: SMTT Board of Director Members.
• Cadence: Continued communications on SMTT programs and services. • Content: Strategic plan initiatives, sales and marketing program updates, updates from the Chair of the Board of Directors.
Community Newsletter
• Audience: Local Businesses, Hotel General Managers (GMs) and Sales/ Marketing staff, guest-serving employees, restaurants, retail, BIDs, SMTT Board, City Partners, SMTT Partner Agencies.
• Cadence: Monthly.
• Content: Santa Monica in the news, new businesses, SMTT updates and programs, upcoming events.
Consumer Newsletter
• Audience: Consumers, Santa Monica Residents, Santa Monica Visitors, those who opt in at santamonica.com.
• Cadence: Monthly.
• Content: News about hotels, cultural happenings, shopping, food & drink, things to do and special offers.
Sea the Good Newsletter – sent on behalf of Santa MoniCARES • Audience: Community Newsletter distribution list, Santa Monica Residents, other non-profits in the community, Santa Monica Visitors, those who opt in at SantaMoniCARES.org.
• Cadence: Quarterly.
• Content: newsletter highlighting inspiring and admirable news stories. 30 Travel and Trade Newsletter
• Audience: Travel Agents, Operators and Meeting Planners. • Cadence: Quarterly.
• Content: Hotel updates, new business openings, upcoming events, what’s new.
International Newsletters
• Audience: Markets with SMTT representation receive a newsletter catering to travel, trade and consumers.
• Current markets: Canada, United Kingdom/Ireland, France, Germany and Australia/New Zealand.
• Cadence: Monthly/Quarterly.
• Content: Hotel updates, new businesses openings, upcoming events, what’s new and things to do in Santa Monica.
SMTT will continue to work with key targeted publications and freelance journalists to develop timely articles and blog posts to ensure content on santamonica.com is attracting organic traffic; addressing visitor needs; and highlighting how the destination is on the cutting edge of travel, culinary, health and wellness, cultural experiences, shopping and sustainability trends.
In 2025, SMTT will be bringing the creation and production of the Official Santa Monica Visitor Guide & Map in house, including content creation, ad sales, photography and design & layout.
SANTAMONICA.COM
Following the successful launch of a fully enhanced, mobile-optimized website in the fall of 2022, santamonica.com underwent another iteration in 2024 with a reskin to align with the refreshed branding. Further enhancements to the website will be implemented to continually elevate the traveler experience. These upgrades will include the integration of a 24/7 AI-powered chatbot, content optimization to align with leading SEO keywords, enhancements to web performance, BookDirect updates and the development of refreshed content through the creation of new landing pages and blog posts.
We remain committed to prioritizing an exceptional user experience on santamonica.com and serving as the premier beach destination for both travelers and trade seeking news and updates. Offering resources for travelers at every stage of their journey, the website educates visitors on the allure of Santa Monica while highlighting the region's myriad attractions. Additionally, the meeting planner section facilitates the coordination of events and conferences, fostering collaboration with Santa Monica hotels and venues. With its revamped design, the website enables dynamic content presentation on the homepage 31 to spotlight local events and provides advertising avenues for businesses seeking exposure to an engaged audience interested in building itineraries and inspiration for visiting Santa Monica, thereby generating local revenues.
The goals of santamonica.com remain consistent:
Consumer:
• Reintroduce Santa Monica as a “home base” destination to explore the broader region and differentiate it from Los Angeles and other SoCal destinations. • Stabilize occupancy and serve the local business community. • Highlight creating experiences and connections in Santa Monica. • Drive overnight visitation during shoulder seasons.
• Facilitate partnerships between Santa Monica businesses through both complimentary and paid promotional opportunities, including free access to the Partner Portal, dedicated business listing pages and complimentary promotion of specials, discounts and distinctive offerings.
Trade:
• Attract events and meetings to Santa Monica hotels and venues for overnight experiences.
• Educate meeting planners on the available hotels, venues and destination differentiators that make it the ultimate meeting location. • Show off the outside-the-boardroom activities for attendees to enjoy. • Drive MICE leads and bookings by highlighting the destination's appeal for meetings, incentives, conferences and events.
SANTA MONICA RESTAURANTS
To amplify awareness of our culinary scene, SMTT is partnering with Santa Monica restaurant owners, chefs and hotels to share their personal stories, culinary inspirations and advice to those looking to break into the food & beverage scene. This is to increase overall sales and experiences in our culinary businesses and elevate Santa Monica’s reputation as a world-renowned destination for culinary enthusiasts. We will work over the next 12-18 months to identify a partner to produce a Santa Monica themed cookbook.
MEDIA RELATIONS
SMTT will continue to raise awareness of Santa Monica as a pre-eminent travel destination that offers a quintessential Southern California beach experience through media relations. Efforts will focus on the story topics that resonate most with the publications, outlets and social media channels that reach our target consumer. 32 We will continue to share the innovative efforts our community is taking to be a leader in sustainability. Media and consumer interest in this topic has grown significantly and we’re fortunate that the City of Santa Monica has prioritized sustainability since the development of the Sustainable City Plan in 1994, and additional work on this front in the community continues to be noteworthy.
We will continue to urge local businesses to engage in programs like the Green Business Certification program and Sustainable Quality Awards to amplify the community’s efforts and showcase how visitors can travel and enjoy Santa Monica responsibly.
SMTT is also focusing storytelling opportunities on our community as a highly desirable destination for culinary enthusiasts, as we showcase our four weekly farmers markets and diverse dining options, including 18 Michelin-recommended restaurants. SMTT will continue to identify opportunities for themed press visits, offering itineraries that showcase the breadth of our bounty. These will focus on the community’s culinary expertise, as well as the new experiential product in market, and will emphasize more attendance at local events. This will help showcase how much is happening in our community that residents and visitors can enjoy. Health and wellness is an additional area of outreach to travel journalists, who continue to show interest in the abundance of opportunities including beach yoga, bike tours, beach volleyball, pickleball, mindfulness classes, spa experiences and healthy eating. The Route 66 Centennial in 2026 also presents an excellent opportunity for storytelling.
SMTT will engage journalists from the region and nation with a special focus on international as travel continues to rebound. We will seek fresh opportunities to host journalists from Australia/New Zealand, Europe and North America. A new partnership with a PR firm in in India will foster engagement with top writers in this emerging market and facilitate projects in the regions on an ad hoc basis.
SMTT will leverage opportunities to connect with journalists on media missions and international activations with other partners in the following markets:
• Australia/New Zealand
• Canada
• France
• Germany
• India
• Brazil
• Japan
• Mexico
• United Kingdom/Ireland
33 We will continue working with a media monitoring and distribution platform to increase domestic and global reach to journalists, bloggers and influencers and measure the effectiveness of our public relations output.
SMTT will also support and work with the city in getting the word out about city service improvements, hotels and businesses that are undergoing renovations/ remodeling and updates to showcase the incredible economic impact these projects will offer Santa Monica.
CRISIS COMMUNICATIONS
The crisis communications plan continues to be updated to reflect longstanding and emergent issues and ensure aligned messaging needs. Updates include the addition of heat and weather advisories, as well as continued amendments based off the lessons learned and best practices from the pandemic. We continue to create new media holding statements and refine existing ones to ensure we are ready to respond to crisis situations when appropriate.
Our team has also focused on relationships with the City of Santa Monica, Santa Monica Police Department, Santa Monica Fire’s Communications Department Public Information Officers and the communications teams in California destination marketing organizations.
This is to ensure our relationships continue to grow and emergency contact information is shared, so we can swiftly respond to crises and support each other’s efforts. We continue to share information in conjunction with the City of Santa Monica to provide official messages to our business community, visitors and Santa Monica residents on santamonica.com, social media channels, community newsletters and news updates.
This was most recently evidenced by our work during the Los Angeles wildfires.
MEDIA RELATIONS PROGRAMS/ADDITIONS
• Focus on first four strategies of Experience Management Plan (EMP). • Destination brand refresh communication.
• Expand efforts into Australia/New Zealand.
• Identify and partner with local businesses to assist developing and amplifying relevant content and expand social footprint to include Pinterest, TikTok and other new platforms.
• Update existing Crisis Communications Plan with learnings from post-pandemic efforts and LA wildfire communications efforts.
• Work with Marketing to create promotional videos for key pillars such as culinary, health and wellness, outdoor activities, family travel and Santa MoniCARES.
These videos will provide us with exciting content to house on our website and share across social media and in newsletters, while providing content to share with news media to attract coverage.
34 • Assess progress on the Experience Management Plan (EMP) and potentially expand to strategies beyond the top four.
• Relaunch the website with brand refresh creative.
• Create dedicated landing pages with language translation options for each international market where SMTT has representation.
• Begin planning, securing and spreading awareness of brand partnerships for upcoming major events including:
o 2024/2025 Cirque Du Soleil
o 2026 NBA All-Star Game
o 2026 FIFA World Cup
o 2026 Route 66 Centennial
o Super Bowl LXI 2027
o LA28 Olympics
• Expand media efforts into identified key international markets. • Provide extensive media training for greater Communications team and SMTT leadership.
2025-2026 Programs/Additions
• Continue to elevate brand collateral for luxury markets and MICE. • Submit Santa Monica Travel & Tourism to brand design, travel, hospitality and group/ MICE industry publication awards for recognition. • Plan new opportunities for partners and local businesses to work with us and be featured on our website such as a more robust “Like a Local” section marketed toward residents.
• Work with our new Agency of Record (AOR) to make seasonal landing pages and our Trip Planner more robust with partner suggestions and specials. • Increase dynamic itineraries on our website to drive traffic, increase SEO and highlight new luxury offerings.
• Pursue opportunities for trade and travel shows in emerging markets, pending budget.
• Find more opportunities to collaborate on social media with partners, local businesses and influencers while sharing more dynamic videos and evolving with social media trends.
• Develop engaging campaigns for residents to be a part of to promote our value. • Make our Route 66 landing page more robust with events and specials, while seeking out further partner involvement opportunities.
• Seek out opportunities for a new “Taste of Santa Monica” culinary event with local chefs and publish a Santa Monica cookbook on a regular basis to expand upon Santa Monica as a culinary destination.
• Collaborate with Visit California on culinary offerings through participation in the Visit California Culinary Committee.
35 • Launch marketing committee to seek out business community involvement in marketing opportunities and needs.
• Expand retail merchandise line through custom merchandise creation and brand partnerships.
• Ensure all Santa Monica businesses are utilizing partner portal services and are scheduled for Threshold 360 services.
2026-2027 Programs/Additions
• Expand upon luxury brand photography and offerings to reflect Santa Monica’s new business growth.
• Pursue an opportunity to create a Santa Monica Swim Week appealing to leisure and sport-enthusiast travelers.
• Increase web traffic to seasonal landing pages and partner specials year over year. • Support current EMP committees and add additional committees, in line with goals. 36 LANE 3: CHAMPION THE VALUE OF TOURISM
Objectives:
• Achieve positive tourism economic outcomes as indicated in the Tourism Economic Impact Report.
• Establish baseline for and ensure year over year increase in positive resident sentiment.
• Increase SMTT services and programs utilized by Santa Monica residents. • Orient new city council and city leadership to the work and goals of SMTT. • Ensure that regional events have positive impacts for Santa Monica. • Uphold influential engagement level with boards and organizations with key initiatives aimed at advancing tourism and the benefits it provides to our community well-being.
• Maintain active board and committee engagement in effective industry organizations.
• Achieve a minimum of $30K (Y1), $50K (Y2) and $60K (Y3) in charitable/donated/in-kind value through the Santa MoniCARES Foundation.
Maintain min. $60K (Y4 & Y5).
• Visitor Center locations re-design to better serve visitors and residents. • Educate and support hotels with city required housekeeping trainings. • Expand on opportunities to incentivize/reach residents to use our services Key Initiatives/Strategies:
• Conduct quarterly intercept surveys to measure economic impacts of tourism. • Establish residential biannual surveys on tourism in Santa Monica. • Continue affiliation with local Business Improvement District leadership, city economic manager, and cultivate new opportunities to enhance tourism messaging and engagement.
• Retain position on SMBRC SM Bay Restoration Commission, voting board member, tourism representative.
• Maintain engagement and board service of SMTT staff on key industry specific boards, U.S. Travel, California Travel Association, Brand USA and others to support federal, state and local tourism education on the benefits of tourism. • Share and educate on Global Entry Program importance and reducing visa wait times.
• Hold fundraising partnerships and events for Santa MoniCares, Volleyween, Prom etc. that encourage participation from the industry and community who wish to give back.
• Emphasize local emergency occurrences with Santa MoniCares to increase charitable donations and in-kind (example: LA Wildfire Relief). 37 • Identify new opportunities for SMTT board member engagement and development.
• Redesign visitor center locations and mobile vehicle to accommodate growing needs of locations, emergency and visitor serving needs and retail growth. • Work with EMP committee members to identify next priorities for the 2-3 year and 5-8 year time periods.
• Reestablish ongoing introductions and briefing for city council and new city leaders.
• Create a program to compliment the I am Santa Monica Ambassador program with a campaign annually to show “My Santa Monica” to drive residents to programs, activations and santamonica.com to support the brand and experience in our community.
• Assist as needed with required citywide Housekeeper training with community partners.
BOARD ENGAGEMENT
The SMTT Board of Directors are active participants in the implementation and execution of the Santa Monica Experience Management Plan (EMP). Board members are represented in the Governance Committee and each of the four strategic initiative committees that have been meeting since 2022. The SMTT Board, along with various city and community stakeholders, residents and local businesses will work as partners over the next ten years toward a shared vision and common goals. This will result in enhanced quality of life for all Santa Monica residents, a remarkable visitor experience that stands the test of time and a stronger, more resilient local economy.
SMTT will continue to identify opportunities for members of its Board of Directors to address any misconceptions about the industry and to champion the value of tourism in speaking engagements in front of community stakeholder groups, such as neighborhood associations, industry events and service organizations.
SMTT will also focus on continued board development opportunities, including participation at industry conferences, familiarization tours, stakeholder meetings, cultural exchanges, community events and media interviews.
SMTT leadership will continue to work in collaboration with the SMTT Board of Directors and TMD Committee to ensure engagement at regularly scheduled meetings with agendas focused on raising awareness of important projects, driving discussion and obtaining feedback. SMTT will continue to distribute electronic board newsletters in months when there is not a regularly scheduled board meeting. 38 COMMUNITY & CIVIC RELATIONS
SMTT will continue to be a vocal champion on behalf of the tourism industry when required, while demonstrating the importance and positive economic impacts of tourism to the community utilizing the following channels as examples:
• Annual Tourism Summit.
• National Travel and Tourism Week.
• Community event presence and collateral distribution. • Buy Local’s Most Loved contest.
• Downtown Santa Monica holiday events/ICE Santa Monica/Roll @ Santa Monica. • Chamber of Commerce events.
• Main Street open street and holiday events.
• Martin Luther King, Jr. event.
• Volley-Ween.
• National Night Out.
• 4th of July Parade.
• Police Activities League events and drives.
• Santa Monica Pier 360.
• Santa Monica 150th Anniversary celebrations.
• PRIDE
• State of the City.
• Sustainable Quality Awards.
• I Wish I Had an Extra Bedroom Program, annually offering hotel discounts to residents over the holiday season.
• Pitching editors at local publications, including Santa Monica Daily Press and more.
• Speaking opportunities at City Council, Kiwanis Club, Rotary Club, Chamber of Commerce and Santa Monica High School Career Day.
• Reinstating the “Tourism Talks” column in Santa Monica Daily Press. • Supporting local events and organizations.
SANTA MONICARES
The Santa MoniCARES foundation launched in 2017 as a coalition of representatives from Santa Monica Travel & Tourism and community partners. The mission of Santa MoniCARES is to harness the hospitable nature and generosity of Santa Monica’s tourism industry and provide support to our local nonprofit agencies. Santa MoniCARES focuses on community engagement through a series of events and activities that further promote our efforts. The foundation plans on expanding LGBTQ+ program support by once again sponsoring the annual Santa Monica High School Gay Student Association Queer Prom and will host a fundraising mixer to raise funds for local LGBTQ+ associations. The foundation will also plan targeted fundraising events to benefit local nonprofits through its 39 network of tourism-serving businesses such as Volley-Ween and the That ‘70s Prom.
Additionally, Santa MoniCARES will focus on relief and recovery efforts related to any natural disasters or extreme events such as wildfires, earthquakes or other occurrences negatively impacting the community of Santa Monica and Los Angeles.
An expanded website will make it easier for nonprofit agencies and residents to partner with Santa MoniCARES through procured fundraising events, volunteerism and donation opportunities. An additional feature on the Santa MoniCARES website will allow the public to choose where their donation dollars are spent. One hundred percent of a donation can be directed to the type of nonprofit donors choose to support, such as education, environmental protection, hunger, the arts, elderly assistance, workforce development, diversity, emergency assistance, equity and inclusion programs and cultural programs.
Santa MoniCARES will continue to be a leader in donation drives and collection points for our local nonprofits in need by collecting gently used clothing, non-perishable food, blankets and toiletries. Internally, SMTT has included Santa MoniCARES’ mission and values as part of our SMTT onboarding process for new employees. Santa MoniCARES is a key component of SMTT’s identity within the community to show that tourism cares about its residents as well as its visitors. Employee volunteerism events and activities are regularly planned throughout the year. We require Santa MoniCARES components at every industry event or program SMTT produces.
TOURISM INDUSTRY LEADERSHIP
SMTT will continue to be a proactive member of the tourism industry and share best practices by leveraging memberships with the following industry associations and taking opportunities to serve on leadership committees, boards of directors and attending or speaking at their annual conferences:
• Brand USA.
• California Travel Association (CalTravel).
• Destinations International.
• eTourism Summit.
• Meeting Professionals International (MPI).
• Certified Meetings Professional (CMP) status.
• Society for Incentive Travel Excellence (SITE).
• U.S. Travel Association’s Board of Directors (USTA).
• Southern California Association Governments - GLUE Council - Tourism Representative.
• California Comeback Taskforce.
• Independent Hospitality Coalition (IHC).
• Santa Monica Bay Restoration Commission (SMBRC) – Tourism Representative • Santa Monica Pier Corporation Board of Directors
40 • Visit California (VCA) leadership and committee roles, including regional strategic tourism planning member with City Manager David White.
• SMTT will further leverage the strength of Visit California by aligning staff to Visit California-led committees relevant to their positions:
o DMO CEO Council- President/CEO
o International - Director of Global Business Development o Marketing – Vice President of Marketing
o Public Relations/Crisis – Vice President of Communications
I AM SANTA MONICA
“I Am Santa Monica" is an interactive business workshop designed to educate Santa Monica residents, businesses and employees about Santa Monica’s offerings. The program is designed specifically to inform and educate tourism-serving employees of businesses, residents and those interested in a potential employment in the tourism industry in Santa Monica about the destination, with a focus on customer service and hospitality training. This free, two-hour, interactive learning workshop includes a bus tour of Santa Monica and ends with a classroom session reviewing detailed take-home materials. Trained individuals become “Official Santa Monica Information Ambassadors” and are equipped with a database of facts, figures and “did you know” anecdotes about Santa Monica for use in customer interactions. Each “Official Santa Monica Information Ambassador” receives a certificate and take-home materials including a QR code to information and resources. There is also a digital version to offer the valuable classroom resources to students who are unable to participate at in-person sessions. The class can now be curated to a business’ individual needs and private, custom classes are available.
A database is being built to communicate with attendees on future happenings in the destination.
“I AM YOUR DESTINATION” PROGRAM
“I Am Your Destination” is the framework of the “I Am Santa Monica” program that we solicit to other cities who want to offer their own class, designed to be affordable and specifically for any tourism destination. The program sells for $15,000 and SMTT is ready to proactively target domestic destinations for potential purchase and utilizing attendance at industry trade shows and forums to attract destination marketing organizations to the program.
41 LANE 4: STRENGTHEN STRATEGIC PARTNERSHIPS
Objectives:
• Generate a minimum of $265K (2025/2026) and $300K (2026/2027) in-kind or fair share value and grow annually.
• Secure a minimum of $175K in outside sponsorship dollars to offset program costs, (25/26) and growth of 8% annually.
• Increase year over year co-op opportunities including but not limited to FAM tours, advertising, social and media relations with Visit California and Brand USA. • Increase media reach with AOR and in kind, iHeart Radio, KCRW+. • Work with city community partnership manager to build upon opportunities with regional and local events i.e. Frieze Los Angeles, Independent Spirit Awards, Feb. (annual), LA Tech Week October 25, Route 66 Centennial 26, U.S. Women’s Open Championship June 26, FIFA World Cup June/July 26, Super Bowl LXI June 27, Summer Olympic Games 28.
Key Initiatives/Strategies:
• Further leverage SMTT staff members’ board or liaison role on BIDS, boards and commissions.
• Increase sponsorship by offering Visitor Information Centers, mobile vehicle for takeovers and activations.
• Outreach and increase local business participation in regional events via co-ops. • Expand partner opportunities: FAM tours, tradeshows and media. • Identify retail/brand partnerships (2025-2026).
• Complete TMD Renewal (2025-2026).
• EMP year over year increase in engagement and participation of community members.
• Increase participation in I Am Santa Monica by 10% (2025-2026) and 5% annually thereafter.
• Rebrand and increase sales of the I Am Your Destination program (2026-2027). 42 STRATEGIC PARTNERSHIPS
Providing cost-effective and valuable programs for our partners is of critical importance.
Our tourism business partners look to SMTT to best represent the brand of Santa Monica and that’s why in 2023, Santa Monica Travel & Tourism generated over $300,000 of inkind support and $10,000 in fair share participation fees from tourism-serving businesses to further support SMTT programs. These valuable contributions do not come automatically. They are derived from our team members’ ongoing dialogue and education with our tourism business partners and through demonstrating a high standard of excellence, engagement and ROI with our programs.
To ensure our partners are aware of all the ways they can work with SMTT, our organization will continue to utilize the following channels:
• Quarterly General Managers meetings.
• Quarterly Marketing Committee and Director of Sales meetings. • TMD Committee meetings.
• Roundtable trainings and discussions.
• Partner Portal.
• santamonica.com.
• BID Board Meetings.
• Hospitality networking events showcasing new venues and opportunities to work with SMTT.
• New business intro program.
• Monthly community newsletter.
• Annual Tourism Summit.
SMTT will continue to solicit sponsorships and in-kind for its Annual Tourism Summit and other signature events to offset program costs.
2023-2024 Programs/Additions
• Generate a minimum of $25,000 in sponsorship revenue from SMTT and Santa MoniCARES-owned properties such as Tourism Summit and Volley-Ween. • Re-establish the marketing committee with city partners, stakeholders and local businesses.
2024-2025 Programs/Additions
• Generate a minimum of $35,000 in sponsorship revenue from SMTT and Santa MoniCARES-owned properties such as Tourism Summit, Volley-Ween, and work toward a large fundraising event.
43 2025-2026 Programs/Additions
• Generate a minimum of $265K (2025-2026) in-kind and/or fair share value and grow annually.
2026-2027 Programs/Additions
• Generate a minimum of $300K in-kind and/or fair share value and grow annually. • Secure a minimum of $175K in outside sponsorship dollars to offset program costs (2025-2026) and growth of 8% annually.
44 LANE 5: ENSURE OPERATIONAL EXCELLENCE
Objectives:
• Strengthen audit compliance. (annual)
• Launch customized real time SMTT dashboard. (25/26)
• Complete TMD renewal process. (26/27)
• Begin process for TID as a permanent voluntary program. (25) • Improve SMTT DEI initiatives. (ongoing)
• Increase SMTT staff participation in community events that align with our mission, vision and values. (annual)
• Conduct an annual board and leadership summit. (annual) • Destination Marketing Accreditation Program (DMAP) renewal. (25/26) • Lower employee retention rate to 6%.
• Update crisis plan to reflect climate change threats. (25/26) • Expanding safety training & implementation. (annual)
• Maximize organizational efficiency methods such as project management software and zoom phone. (25/26) & (annual)
• Maintain the shuttle service and explore alternative options for future.
Key Initiatives/Strategies:
• Improved internal audit controls, clear SOPs, reports, in-house training for accounting staff and audit trails. Hands on budget management for all departments by Director of Finance. Improved accounting training procedures. Regular spending analysis to identify cost savings. Develop quarterly accountability scorecards for individual departments.
• Launch our improved and customized real-time SMTT dashboard (2025), powered by Symphony, Datafy, and internal department reports. This will improve reporting processes to assist in more accurate forecasting.
• Develop in year 1, with completion and implementation aimed at year 3 by engaging a third-party vendor to assess the current TMD performance, a TMD impact study, engage our local stakeholders early in the process, define our proposed TMD structure, petition hotel support, present to city council, adoption and then execution.
• TID begin in year 1 with completion and launch in year 2 by engaging a third-party vendor to assess the current TID performance, a TID impact study, engage our local stakeholders early in the process, define our proposed TID structure, petition for support, present to city council, adoption and then execution. • Improve upon detailed training and development plans for all staff, launch employee recognition plans, strengthen our leaders by training the trainers, improving our DEI initiatives and fostering a positive work life balance. 45 • By identifying events that support tourism, sustainability, culture and the community such as beach cleanups, small businesses, festivals and well-being events. Launch a community engagement committee run by employees which fosters peer to peer engagement.
• Leading into culture, encourages the team to feel ownership and have a say in our strategic planning process.
• Include training on CPR initiative, Narcan at locations, de-escalation training and 5 leaders to attend Community Emergency Response Team (CERT) training.
Conduct annual drills with staff.
• Promote to staff members our open-door policy, launch Asana platform for team project management solutions, invest in additional team building activities and familiarizing with the destination, allow more autonomy for employees to make their own decisions and feel a sense of ownership.
• Explore with city staff alternative options to DA of hotels paying for shuttle services. • Update our crisis plan to align with climate change and the potential impacts to tourism.
OPERATIONAL EXCELLENCE
SMTT’s leadership team created a four-quarter performance review process that focuses on a forward-looking approach to employee development and retention. At the employee's annual hire date, a one-page self-evaluation is completed for the previous year. Upon completion, employees will meet quarterly with their supervisors to discuss individual performance and professional development goals and to address or adjust goals as needed.
Baseline qualifications by title have been created to help drive employee success and offer further opportunities for advancement within SMTT. A salary and benefit survey will be completed in 2024 and 2025 with industry researchers to ensure we are aligned with the industry and the region in our offerings. In addition, we continue with our quarterly team building events, as they have been a success.
Retention will continue to be at the forefront of SMTT by expanding our recruitment efforts along with a 21+ point onboarding process that ensures new staff comprehend the important values and policies that make us unique. SMTT works with a local insurance broker to offer a comprehensive and affordable benefits package.
We continue to be a leader in equipment, technology and sustainability. When decommissioned, SMTT laptops, iPads and cell phones are erased to Department of Defense standards, then donated to either the Police Activities League, if the students can utilize; nonprofit Laptop Elf Company, who recycles the equipment for underprivileged youth and teachers; are traded in for a partial refund to support technological/device 46 updates; or are recycled through one of the City of Santa Monica’s hazardous waste programs.
EMERGENCY PREPAREDNESS
We will review our emergency preparedness plan for 2024-2025 and update as needed.
We plan on certifying additional employees via the City of Santa Monica’s Community Emergency Response Team (CERT) training and will provide all employees the opportunity to attend a class to obtain CPR certification. The EMP will help deliver a full city-wide crisis plan to work in tandem with each organization and the city’s current crisis plans.
SMTT will continue to ensure all frontline visitor staff receive de-escalation training in case of an emergent situation.
SMTT will continue to circulate information on the City’s new visitor emergency text alert system to our hotel general managers, so they can share the service with their guests in the event of a large-scale community concern or incident.
DESTINATION MARKETING ACCREDITATION PROGRAM (DMAP)
Santa Monica Travel & Tourism has long been proud of its participation in the Destination Marketing Accreditation Program (DMAP) through Destinations International. This globally recognized program serves as a visible industry distinction that defines quality and performance standards in destination marketing and management. The process includes submitting documentation of over 110 rigorous standards, including an annual operations plan, HR policies, technology plan, an updated crisis communications plan, a commitment to consumer research, adoption of the DMAP code of ethics and many other standards. SMTT submitted an annual progress report in 2023 and was re-certified as an approved DMAP Destination.
IN CLOSING
Santa Monica Travel & Tourism thanks the City of Santa Monica for its ongoing support and partnership in ensuring that the tourism industry remains a valued contributor to a vibrant and thriving economy. While we’ve seen our fair share of challenges over the past several years and additional threats to travel demand loom on the horizon, our aligned strategies, along with the collaboration and support of the city, community and business leadership, will reinforce our goals, vision and help us best serve our residents, visitors and businesses for many years to come.
Santa Monica Travel Tourism
FISCAL YEAR 2025-2026 BUDGET SHEET
Confidential Financial Data
Revenues
City Contract Revenue $ 2,994,004.00 91.54% $ - 0.00% $ 2,994,004 29.68% Estimated TMD Revenue - 0.00% 6,813,435 99.97% 6,813,435 67.55% Bank Interest 1,800 0.06% 1,800 0.03% 3,600 0.04%
Other Income 190,000 5.81% - 0.00% 190,000 1.88%
Retail Revenue 85,000 2.60% - 0.00% 85,000 0.84%
Total Revenues $ 3,270,804 100.00% $ 6,815,235 100.00% $ 10,086,039 100.00% Cost of Programs
Travel Industry Sales $ - 0.00% $ 1,243,002 18.24% $ 1,243,002 12.32% Marketing 250,000 7.64% 1,504,608 22.08% $ 1,754,608 17.40% Visitor Services 216,330 6.61% - 0.00% $ 216,330 2.14%
MICE - 0.00% 375,000 5.50% $ 375,000 3.72%
Client Services 130,120 3.98% 25,000 0.37% $ 155,120 1.54% Public Relations 270,000 8.25% 376,898 5.53% $ 646,898 6.41% Total Cost of Programs $ 866,450 26.49% $ 3,524,508 51.72% $ 4,390,958 43.54% General & Administrative $ 799,000 24.43% $ 655,000 9.61% $ 1,454,000 14.42% Salaries & Benefits $ 1,568,354 47.95% $ 2,233,870 32.78% $ 3,802,224 37.70% Contingency Fund $ - 0.00% $ 340,672 5.00% $ 340,672 3.38% Fixed Asset $ 37,000 1.13% $ 61,185 0.90% $ 98,185 0.97% Total Expenses $ 3,270,804 100.00% $ 6,815,235 100.00% $ 10,086,039 100.00% Net Increase (Decrease) $ - 0.00% $ (0) 0.00% $ (0) 0.00% Revised 2025-2026 Forecasted Budget
City Contract TMD Total Budget
Santa Monica Travel Tourism
FISCAL YEAR 2026-2027 BUDGET SHEET
Confidential Financial Data
Revenues
City Contract Revenue $ 2,994,004 89.89% $ - 0.00% $ 2,994,004 28.63% Estimated TMD Revenue - 0.00% 7,125,967 99.97% 7,125,967 68.13% Bank Interest 1,900 0.06% 1,800 0.03% 3,700 0.04%
Other Income 200,000 6.00% - 0.00% 200,000 1.91%
Retail Revenue 135,000 4.05% - 0.00% 135,000 1.29%
Total Revenues $ 3,330,904 100.00% $ 7,127,767 100.00% $ 10,458,671 100.00% Cost of Programs
Travel Industry Sales $ - 0.00% $ 1,381,413 19.38% $ 1,381,413 13.21% Marketing 245,000 7.36% 1,380,000 19.36% $ 1,625,000 15.54% Visitor Services 209,000 6.27% - 0.00% $ 209,000 2.00%
MICE - 0.00% 355,000 4.98% $ 355,000 3.39%
Client Services 205,213 6.16% 25,000 0.35% $ 230,213 2.20% Public Relations 200,000 6.00% 450,000 6.31% $ 650,000 6.21% Total Cost of Programs $ 859,213 25.80% $ 3,591,413 50.39% $ 4,450,626 42.55% General & Administrative $ 805,098 24.17% $ 725,000 10.17% $ 1,530,098 14.63% Salaries & Benefits $ 1,629,593 48.92% $ 2,393,870 33.59% $ 4,023,463 38.47% Contingency Fund $ - 0.00% $ 356,298 5.00% $ 356,298 3.41% Fixed Asset $ 37,000 1.11% $ 61,185 0.86% $ 98,185 0.94% Total Expenses $ 3,330,904 100.00% $ 7,127,767 100.00% $ 10,458,671 100.00% Net Increase (Decrease) $ (0) 0.00% $ 0 0.00% $ (0) 0.00% ** Revised 2026-2027 Forecasted Budget
City Contract TMD Total Budget
MEMO
February 25, 2025
To: Misti Kerns, Evan Edwards, SMTT
Re: TMD Reconciliation for 2024 and Tiers for 2025 – Final Review and Findings As per our agreement I have reviewed your provided Excel Spreadsheet I received February 24. Data were current for most properties through December 2024. My review included checking each property’s monthly and year-to-date rooms available, rooms sold, ADR calculation, and proposed 2025 Tier.
My findings are as follows:
Hotels for which I agree with SMTT calculations and proposed Tiers for 2025 (if no note then no change):
1. Bayside
2. CalMar
3. Casa del Mar
4. Cottage
5. Comfort Inn
6. Days Inn
7. Fairmont Miramar
8. Hampton
9. Hilton
10. Huntley Hotel
11. Le Merigot/(J.W. Marriott)
12. Ocean Lodge
13. Ocean Park Inn
14. Ocean View
15. Oceana
16. Palihouse
17. Palm Motel
18. Santa Monica Proper
19. Regent
20. Rest Haven Motel
21. Sea Blue
22. Sea Shore
23. Shangri-La
24. Shore Hotel
25. Shutters
26. The Ambrose
27. The Georgian
28. Viceroy
Hotels that will change tier:
1. Courtyard: drop to Tier 2, at $297.95 ADR thru
Dec.
2. Hotel Carmel: if data provided are correct will
remain in Tier 2 at $226.14 ADR thru Dec.
3. Gateway: at $199.22 ADR, would move T3.
4. Le Meridien/Delfina: at $275.97 ADR thru Dec.
to move to Tier 2.
5. Ocean Park Hotel: missing data; unable to
determine if still exempt; $90.48 ADR thru Dec.
6. Pierside: move to T1; at $317.18 ADR thru Dec.
7. Santa Monica Hotel: stays in T3 at $197.21 ADR
thru Nov.; Dec. data missing but unlikely to
change tier outcome.
8. Sea View: no data provided as you noted
9. Sonder Beacon: at $300.60 ADR thru Dec but
Aug. occupied rooms data missing. Should
remain in Tier 1.
10. Sure Stay BW: stays in Tier 3; at $195.61 ADR
thru Dec.
1041 S. Gramercy Drive l Los Angeles CA 90019
[email protected]
www.lsconsult.com
2018-2027
September 29, 2016 Prepared pursuant to the Property and Business Improvement District Law of 1994, Streets and Highways Code section 36600 et seq.
SANTA MONICA TOURISM
MARKETING DISTRICT
MANAGEMENT DISTRICT PLAN
CONTENTS
I. OVERVIEW ........................................................................................................................................2 II. ACCOMPLISHMENTS.....................................................................................................................4 III. BACKGROUND ................................................................................................................................6 IV. BOUNDARY.......................................................................................................................................7 V. BUDGET AND SERVICES.............................................................................................................8 A. Annual Service Plan............................................................................................................ 8 B. Annual Budget .................................................................................................................... 9 C. California Constitutional Compliance .............................................................................. 10 D. Assessment........................................................................................................................ 13 E. Penalties and Interest ........................................................................................................ 13 F. Time and Manner for Collecting Assessments................................................................. 14 VI. GOVERNANCE...............................................................................................................................15 A. Owners’ Association......................................................................................................... 15 B. Brown Act and California Public Records Act Compliance ............................................ 15 C. Annual Report................................................................................................................... 15 D. Milestone Report............................................................................................................... 15 APPENDIX 1 – LAW....................................................................................................................................17 APPENDIX 2 – ASSESSED BUSINESSES .............................................................................................28 APPENDIX 3 – BENEFIT STUDY ..........................................................................................................29 APPENDIX 4 – TIER BENEFITS.............................................................................................................30 Prepared by
Civitas
(800)999-7781
www.civitasadvisors.com
SMTMD Management District Plan 2
September 29, 2016
I. OVERVIEW
Developed by Santa Monica Travel & Tourism (SMTT), the Santa Monica Tourism Marketing District (SMTMD) is an assessment district proposed to provide specific benefits to payors, by funding marketing and sales promotion efforts for assessed businesses. The SMTMD was formed in 2012 for a five (5) year term; lodging businesses now wish to renew it for an additional nine and one-half (9.5) years.
Location: The renewed SMTMD includes all lodging businesses located within the boundaries of the City of Santa Monica with an average daily rate of $100 or more, as shown on the map in section IV.
Services: The SMTMD is designed to provide specific benefits directly to payors by increasing room night sales. Marketing and sales promotions will increase overnight tourism and market payors as tourist, meeting and event destinations, thereby increasing room night sales.
Budget: The total SMTMD annual budget for each full year of operation is anticipated to be approximately $4,130,000. The initial “year” of operation will be a partial year consisting of six months, for which the anticipated budget is $2,065,000. This budget is expected to fluctuate as room sales and the assessment rate do, as detailed in Section V.
Cost: The assessment is a fixed amount per occupied room per night. The assessment is based on the businesses’ average daily rate, based on the previous year’s performance.
Average daily rate figures shall be updated annually. Based on the benefit received, assessments will not be collected on: stays of more than thirty (30) consecutive days; and stays paid by any Federal, State of California, or City of Santa Monica, official or employee when on official business provided that an exempt certificate is executed at the time of registration. Lodging businesses with an average daily rate less than $100 will not be included in the district or assessed. Assessment rates are:
Tier Average Daily
Rate
Assessment Per Occupied Room
Per Night
1 $300 and above $5.25
2 $200 - $299.99 $4.25
3 $100 - $199.99 $1.50
Assessment rates may be subject to an annual increase of no more than twenty-five cents ($0.25) per year for Tier 1 and Tier 2 lodging businesses and no more than ten cents ($0.10) per year for Tier 3 lodging businesses. The table below demonstrates the maximum with the assumption that the rates will be increased by the maximum amounts for each category in each year of the SMTMD’s nine and one-half (9.5) year term, as it is a required disclosure, it is not the anticipated course of action. The maximum assessment rate for each category is:
SMTMD Management District Plan 3
September 29, 2016
Year $100 - $199.99 $200 - $299.99 $300 and Above
2018* $1.50 $4.25 $5.25
2018-19 $1.60 $4.50 $5.50
2019-20 $1.70 $4.75 $5.75
2020-21 $1.80 $5.00 $6.00
2021-22 $1.90 $5.25 $6.25
2022-23 $2.00 $5.50 $6.50
2023-24 $2.10 $5.75 $6.75
2024-25 $2.20 $6.00 $7.00
2025-26 $2.30 $6.25 $7.25
2026-27 $2.40 $6.50 $7.50
*The initial “year” is January 1, 2018 through June 30, 2018 Collection: The City will be responsible for collecting the assessment on a monthly basis (including any delinquencies, penalties and interest) from each lodging business located in the boundaries of the SMTMD. The City shall take all reasonable efforts to collect the assessments from each lodging business.
Duration: The renewed SMTMD will have a nine and one-half (9.5) year life, beginning January 1, 2018 through June 30, 2027. Once per year, beginning on the anniversary of district renewal, there is a 30-day period in which owners paying more than fifty percent (50%) of the assessment may protest and initiate a City Council hearing on district disestablishment.
Management: Santa Monica Travel & Tourism will continue to serve as the SMTMD’s Owners’ Association. The Owners’ Association is charged with managing funds and implementing programs in accordance with this Plan, and must provide annual reports to the City Council.
SMTMD Management District Plan 4
September 29, 2016
II. ACCOMPLISHMENTS
The SMTMD is being renewed for the following reasons:
1. The SMTMD has funded excellent marketing programs and strategies In the first five (5) year term of the SMTMD, the District has funded:
x Creation of 5-year strategic plan for the destination with input provided by the TMD Hotel Committee;
x Focus Groups conducted in seven (7) domestic and international target markets to assess perceptions of the destination brand;
x Integrated advertising campaigns targeted to domestic target markets to drive travel during Santa Monica’s soft season (paid search, behavioral retargeting, display, paid social, eNewsletter sponsorships).
x Entirely redesigned SantaMonica.com, including new white labeled booking site to drive bookings directly to assessed lodging businesses’ websites. New website recognized with industry design awards for structure, concept and functionality; x Redesigned logo, brand style guide, destination photography and video; and x New and improved Official Visitor Guide and Map with award-winning publishing partner.
2. The SMTMD has funded enhanced business development programs for key international target markets
x United Kingdom, Australia and Brazil:
o Full time representation in all three markets;
o Enhanced public relations support;
o B2B and B2C integrated campaigns with performance metrics and sales analysis; o Brand enhancing partnerships with travel trade clientele (Visit California and Brand USA);
o Sales and media missions including key hotel partners for targeted markets; o Tradeshow participation; and
o Ongoing trade relationship development and trainings. x France and Germany:
o Part-time representation;
o B2B campaigns with sales and social media performance metrics; o Tradeshow participation; and
o Ongoing trade relationship development and trainings.
3. The SMTMD has funded initiatives to increase the meetings and incentives market Santa Monica Travel and Tourism has executed over twenty meetings and incentive (MICE) programs with the objective of increasing qualified meetings and incentives business to the destination. x Sales missions were conducted in New York, Toronto, Washington DC, Chicago, Minneapolis, San Francisco, Orange County and San Diego; x SMTT exhibited at IMEX America, IncentiveWorks, and Incentive Travel Exchange, conducting over 500 meetings with key buyers;
x SMTT hosted nearly thirty (30) meeting planners to the destination to experience first hand what their clients would be booking; and
SMTMD Management District Plan 5
September 29, 2016
x SMTT engaged a third party consultant to conduct focus groups with these meeting planners to better understand future meetings and incentives business opportunity for the destination.
SMTMD Management District Plan 6
September 29, 2016
III. BACKGROUND
TMDs are an evolution of the traditional Business Improvement District. The first TMD was formed in West Hollywood, California in 1989. Since then, ninety-five (95) California destinations have followed suit. In recent years, other states have begun adopting the California model – Montana, South Dakota, Washington, Colorado, Texas and Louisiana have adopted TMD laws. Several other states are in the process of adopting their own legislation. The cities of Wichita, Kansas and Newark, New Jersey used an existing business improvement district law to form a TBID. And, some cities, like Portland, Oregon and Memphis, Tennessee have utilized their home rule powers to create TMDs without a state law.
California’s TMDs collectively raise
over $200 million for local
destination marketing. With
competitors raising their budgets,
and increasing rivalry for visitor
dollars, it is important that Santa
Monica lodging businesses
continue to invest in stable,
lodging-specific marketing
programs.
TMDs utilize the efficiencies of
private sector operation in the
market-based promotion of
tourism districts. TMDs allow
lodging business owners to
organize their efforts to increase room night sales. Lodging business owners within the TMD pay an assessment and those funds are used to provide services that increase room night sales.
In California, TMDs are formed pursuant to the Property and Business Improvement District Law of 1994. This law allows for the creation of a benefit assessment district to raise funds within a specific geographic area. The key difference between TMDs and other benefit assessment districts is that funds raised are returned to the private non-profit corporation governing the district.
There are many benefits to TMDs:
x Funds must be spent on services and improvements that provide a specific benefit only to those who pay;
x Funds cannot be diverted to general government programs; x They are customized to fit the needs of payors in each destination; x They allow for a wide range of services;
x They are designed, created and governed by those who will pay the assessment; and x They provide a stable, long-term funding source for tourism promotion. 1 2 4 6 9 12
19 24 28 31
37 45
60 63
72 80
88 95
0 10
20 30
40 50
60 70
80 90
100
198919952000200120022003200420052006200720082009201020112012201320142015 Number of Districts Operating Per Year
SMTMD Management District Plan 7
September 29, 2016
IV. BOUNDARY
The SMTMD will include all lodging businesses, existing and in the future, available for public occupancy within the boundaries of the City of Santa Monica with an average daily rate of $100 or more. Lodging businesses whose average daily rate increases to $100 will be assessed upon determination of the increase; likewise, lodging businesses whose average daily rate decreases to below $100 will not be assessed upon determination of the decrease. Average daily rate figures shall be updated annually.
Lodging business means: Any public or private hotel, inn, hostelry, tourist home or house motel, rooming house or other lodging place within the City of Santa Monica offering lodging, wherein the owner and operator thereof, for compensation, furnishes lodging to any transient.
The boundary, as shown in the map below, currently includes thirty-two (32) lodging businesses. A complete listing of lodging businesses within the renewed SMTMD can be found in Appendix 2.
SMTMD Management District Plan 8
September 29, 2016
V. BUDGET AND SERVICES
A. Annual Service Plan
Assessment funds will be spent to provide specific benefits conferred or privileges granted directly to the payors that are not provided to those not charged, and which do not exceed the reasonable cost to the City of conferring the benefits or granting the privileges. The privileges and services provided with the SMTMD funds are sales and marketing programs available only to assessed businesses. The assessment rate for each Tier will be commensurate with privileges and services provided to assessed businesses in each Tier as detailed in Appendix 4.
A service plan budget has been developed to deliver services that benefit the assessed businesses. A detailed annual budget will be developed and approved by the SMTT TMD Committee and the SMTT Board. The table below illustrates the initial annual budget allocations for the first partial fiscal year.
The total SMTMD annual budget for each full year of operation is anticipated to be approximately $4,130,000. The initial “year” of operating will be a partial year consisting of six months, for which the anticipated budget is $2,065,000.
Although actual revenues will fluctuate due to market conditions and assessment rate increases, the proportional allocations of the budget shall remain the same. However, the City and the SMTT board shall have the authority to adjust budget allocations between the categories by no more than fifteen percent (15%) of the total budget per year. A description of the proposed improvements and activities for the initial year of operation is below. The same activities are proposed for subsequent years. In the event of a legal challenge against the SMTMD, any and all assessment funds may be used for the costs of defending the SMTMD.
Each budget category includes all costs related to providing that service, in accordance with Generally Accepted Accounting Procedures (GAAP). For example, the sales and marketing budget includes the cost of staff time dedicated to overseeing and implementing the sales and marketing program. Staff time dedicated purely to administrative tasks is allocated to the administrative portion of the budget.
The costs of an individual staff member may be allocated to multiple budget categories, as appropriate Sales & Marketing,
$1,755,250 , 85%
Administration,
$206,500 , 10%
Contingency/Reserve, $103,250 , 5%
FY 2018 Budget (January - June) - $2,065,000
SMTMD Management District Plan 9
September 29, 2016
in accordance with GAAP. The staffing levels necessary to provide the services below will be determined by SMTT on an as-needed basis. Staff costs will be allocated based on work performed.
Sales and Marketing
A sales and marketing program will promote assessed businesses as tourist, meeting, and event destinations. The sales and marketing program will have a central theme of promoting Santa Monica as a desirable place for overnight visits. The program will have the goal of increasing overnight visitation and room night sales at assessed businesses, and may include the following activities:
x Internet marketing efforts to increase awareness and optimize internet presence to drive overnight visitation and room sales to assessed businesses; x Print ads in magazines and newspapers, television ads, and radio ads targeted at potential visitors to drive overnight visitation and room sales to assessed businesses; x Attendance of trade shows to promote assessed businesses; x Sales blitzes for assessed businesses;
x Familiarization tours of assessed businesses;
x Research and analytics to promote assessed businesses; x Translation services designed to drive overnight visitation and room sales to assessed businesses;
x Staff to implement and support expanded marketing and promotion efforts to promote assessed businesses;
x External public relations firms to promote assessed businesses; x Preparation and production of collateral promotional materials such as brochures, flyers and maps featuring assessed businesses;
x Attendance of professional industry conferences and affiliation events to promote assessed businesses;
x Lead generation activities designed to attract tourists and group events to assessed businesses; x Director of Sales and General Manager meetings to plan and coordinate tourism promotion efforts for assessed businesses; and
x Development and maintenance of a website designed to promote assessed businesses.
Administration and Operations
The administration and operations portion of the budget shall be utilized for administrative staffing costs, office costs, and other general administrative costs such as insurance, legal, and accounting fees.
Contingency/Reserve
The budget includes a contingency line item to account for uncollected assessments, if any. If there are contingency funds collected, they may be held in a reserve fund or utilized for other program, administration or renewal costs at the discretion of the Owners’ Association. Policies relating to contributions to the reserve fund, the target amount of the reserve fund, and expenditure of monies from the reserve fund shall be set by the SMTT TMD Committee and the SMTT Board of Directors.
The reserve fund may be used for the costs of renewing the District.
B. Annual Budget
The total nine and one-half (9.5) year improvement and service plan budget is projected at approximately $4,130,000 annually, or $57,530,913 through 2027 if the maximum assessment rate increases are adopted. Fiscal year 2018 covers the six month period from January to June 2018, resulting in a lower budget for the first six months of district operation. This budget is expected to fluctuate as room sales change and if the assessment rate is increased. The initial assessment rate is:
SMTMD Management District Plan 10
September 29, 2016
Tier Average Daily Rate Assessment Per Occupied Room Per Night 1 $300 and above $5.25
2 $200 - $299.99 $4.25
3 $100 - $199.99 $1.50
The SMTT may increase the assessment rate by a maximum of $0.25 per year for Tier 1 and Tier 2 lodging businesses and no more than ten cent ($0.10) per year for Tier 3 lodging businesses. The assessment rate might not increase starting in fiscal year 2018-19, the increases may be implemented in later years at the discretion of the Owners’ Association. The table below demonstrates the maximum with the assumption that the rates will be increased by the maximum amounts for each category in each year of the SMTMD’s nine and one-half (9.5) year term, as it is a required disclosure, it is not the anticipated course of action. Additionally, a three percent (3%) annual increase in the total budget is shown, to account for estimated increased room night sales as a result of SMTMD efforts. This three percent (3%) annual increase is a conservative estimate based on the effects of similarly sized TMD budgets. If the maximum annual assessment increases are adopted by the SMTT Board, the estimated annual budget will increase as shown in the table below.
Estimated Annual Budget If Maximum Assessment Rates Are Adopted 2018-2027
FY Sales &
Marketing Administration Contingency/Reserve Total
2018* $1,755,250 $206,500 $103,250 $2,065,000
2018-19 $3,813,041 $448,593 $224,297 $4,485,931
2019-20 $4,130,576 $485,950 $242,975 $4,859,501
2020-21 $4,463,730 $525,145 $262,572 $5,251,447
2021-22 $4,813,157 $566,254 $283,127 $5,662,537
2022-23 $5,179,531 $609,357 $304,678 $6,093,566
2023-24 $5,563,556 $654,536 $327,268 $6,545,360
2024-25 $5,965,962 $701,878 $350,939 $7,018,778
2025-26 $6,387,504 $751,471 $375,736 $7,514,710
2026-27 $6,828,969 $803,408 $401,704 $8,034,082
Total $48,901,276 $5,753,091 $2,876,546 $57,530,913
*Fiscal year 2018 only covers a 6 month period (January – June). The estimate for the first year of operation of the district is $4,130,000 which translates to approximately $344,166.67 per month. The subsequent years in the table above use the $4,130,000 figure as a base number for all calculations.
C. California Constitutional Compliance
The SMTMD assessment is not a property-based assessment subject to the requirements of Proposition 218. The Court has found, “Proposition 218 limited the term ‘assessments’ to levies on real property.”1 Rather, the SMTMD assessment is a business-based assessment, and is subject to Proposition 26. Pursuant to Proposition 26 all levies are a tax unless they fit one of seven exceptions.
Two of these exceptions apply to the SMTMD, a “specific benefit” and a “specific government service.” Both require that the costs of benefits or services do not exceed the reasonable costs to the City of conferring the benefits or providing the services. 1 Jarvis v. the City of San Diego 72 Cal App. 4th 230
SMTMD Management District Plan 11
September 29, 2016
1. Specific Benefit
Proposition 26 requires that assessment funds be expended on, “a specific benefit conferred or privilege granted directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of conferring the benefit or granting the privilege.”2 The services in this Plan are designed to provide targeted benefits directly to assessed lodging businesses, and are intended only to provide benefits and services directly to those businesses paying the assessment. These services are tailored not to serve the general public, businesses in general, or parcels of land, but rather to serve the specific lodging businesses within the District. The activities described in this Plan are specifically targeted to increase room night sales for assessed lodging businesses within the boundaries of the District, and are narrowly tailored. SMTMD funds will be used exclusively to provide the specific benefit of increased room night sales directly to the assessees. Assessment funds shall not be used to feature non-assessed lodging businesses in SMTMD programs, or to directly generate sales for non-assessed businesses. The activities paid for from assessment revenues are business services constituting and providing specific benefits to the assessed businesses.
The assessment imposed by this District is for a specific benefit conferred directly to the payors that is not provided to those not charged. The specific benefit conferred directly to the payors is an increase in room night sales. The specific benefit of an increase in room night sales for assessed lodging businesses will be provided only to lodging businesses paying the district assessment, with marketing and sales programs promoting lodging businesses paying the district assessment. The marketing and sales programs will be designed to increase room night sales at each assessed lodging businesses. Because they are necessary to provide the marketing and sales programs that specifically benefit the assessed lodging businesses, the administration and contingency services also provide the specific benefit of increased room night sales to the assessed lodging businesses.
Although the District, in providing specific benefits to payors, may produce incidental benefits to non-paying businesses, the incidental benefit does not preclude the services from being considered a specific benefit. The legislature has found that, “A specific benefit is not excluded from classification as a ‘specific benefit’ merely because an indirect benefit to a nonpayor occurs incidentally and without cost to the payor as a consequence of providing the specific benefit to the payor.”3
2. Specific Government Service
The assessment may also be utilized to provide, “a specific government service or product provided directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of providing the service or product.”4 The legislature has recognized that marketing and promotions services like those to be provided by the SMTMD are government services within the meaning of Proposition 265. Destination marketing services are frequently funded and provided by local governments. In the case of the SMTMD, the district is formed and services are overseen by the Santa Monica City Council. Further, the legislature has determined that “a specific government service is not excluded from classification as a ‘specific government service’ merely because an indirect benefit to a nonpayor occurs incidentally and without cost to the payor as a consequence of providing the specific government service to the payor.”6 2 Cal. Const. art XIII C § 1(e)(1)
3 Government Code § 53758(a)
4 Cal. Const. art XIII C § 1(e)(2)
5 Government Code § 53758(b)
6 Government Code § 53758(b)
SMTMD Management District Plan 12
September 29, 2016
3. Reasonable Cost
District services will be implemented carefully to ensure they do not exceed the reasonable cost of such services. The full amount assessed will be used to provide the services described herein. Funds will be managed by SMTT, and reports submitted on an annual basis to the City. Only assessed lodging businesses will be featured in marketing materials, receive sales leads generated from districtfunded activities, be featured in advertising campaigns, and benefit from other district-funded services.
Non-assessed lodging businesses will not receive these, nor any other, district-funded services and benefits.
The District-funded programs are all targeted directly at and feature only assessed businesses. It is, however, possible that there will be a spill over benefit to non-assessed businesses. If non-assessed lodging businesses receive incremental room nights, that portion of the promotion or program generating those room nights shall be paid with non-District funds. SMTMD funds shall only be spent to benefit the assessed businesses, and shall not be spent on that portion of any program which directly generates incidental room nights for non-assessed businesses.
4. Benefit to NonPayors
The specific benefits provided by the SMTMD will only be directly provided to the assessed businesses; they will not be directly provided to non-assessed businesses. Possible indirect benefit does not preclude the SMTMD services from being considered a specific benefit. The legislature has directly indicated, in the context of tourism marketing districts, that services are not precluded from classification as a specific benefit merely because an indirect benefit to a nonpayor occurs as a consequence of providing the service and without cost to the payor.7 Although the legislature does not require the cost of any incidental benefit to non-payors be separated from the assessment, out of an abundance of caution a study was conducted on benefit generated by the SMTMD programs. The study is attached as Appendix 3. The study found that 6.6% of marketing programs generate incidental room night sales at non-assessed lodging businesses. Although it is not required, the portion of programs that generate this benefit will be paid for with non-assessment funds. Assessment funds will only fund that portion of the programs (93.4%) which represents a specific benefit to the assessed businesses. For example, if a program costs $100,000 total, the SMTMD will fund $93,400 and the remaining $6,600 will be sourced from non-assessment funds.
The amount of the assessment is no more than necessary to cover the reasonable costs of the proposed activities, and the manner in which the costs are allocated to a business owner bear a fair share or reasonable relationship to the businesses’ benefits received from the proposed activities. The benefit study in Appendix 3 found that the benefits provided by the SMTMD do not exceed the reasonable cost.
The programs provided with District funding receive additional non-assessment funding in the form of grants, corporate sponsorships, event income, transient occupancy tax, and other funds. These funding sources shall be equal to or exceed the amount of benefit conferred to non-payors annually by the District’s services. These non-assessment funds will be used to pay for the benefit to nonpayors provided by the proposed services, ensuring that assessments will only be used to provide benefits to assessed businesses.
7 AB 483 Ting (2014)
SMTMD Management District Plan 13
September 29, 2016
D. Assessment
The assessment is a fixed amount per occupied room per night. The assessment is based on the businesses’ average daily rate, based on the previous year’s performance. Average daily rate figures shall be updated annually. Based on the benefit received, assessments will not be collected on: stays of more than thirty (30) consecutive days; and stays paid by any Federal, State of California, or City of Santa Monica, official or employee when on official business provided that an exempt certificate is executed at the time of registration. Lodging businesses with an average daily rate less than $100 will not be included in the district or assessed. Assessment rates are:
Tier Average Daily Rate Assessment Per Occupied Room Per Night 1 $300 and above $5.25
2 $200 - $299.99 $4.25
3 $100 -$199.99 $1.50
Assessment rates may be subject to an annual increase of no more than twenty-five cents ($0.25) per year for Tier 1 and Tier 2 lodging businesses and no more than ten cent ($0.10) per year for Tier 3 lodging businesses. The table below demonstrates the maximum with the assumption that the rates will be increased by the maximum amount for each category in each year of the SMTMD’s nine and one-half (9.5) year term, as it is a required disclosure, it is not the anticipated course of action. The maximum assessment rate for each category is:
FY $100 - $199.99 $200 - $299.99 $300 and Above
2018* $1.50 $4.25 $5.25
2018-19 $1.60 $4.50 $5.50
2019-20 $1.70 $4.75 $5.75
2020-21 $1.80 $5.00 $6.00
2021-22 $1.90 $5.25 $6.25
2022-23 $2.00 $5.50 $6.50
2023-24 $2.10 $5.75 $6.75
2024-25 $2.20 $6.00 $7.00
2025-26 $2.30 $6.25 $7.25
2026-27 $2.40 $6.50 $7.50
*Fiscal year 2018 only covers a 6 month period (January – June).
The assessment is levied upon and a direct obligation of the assessed lodging business. However, the assessed lodging business may, at its discretion, pass the assessment on to transients. The amount of assessment, if passed on to each transient, shall be disclosed in advance and separately stated from the amount of rent charged and any other applicable taxes, and each transient shall receive a receipt for payment from the business. The assessment shall be disclosed as the “TMD Assessment.” The assessment is imposed solely upon, and is the sole obligation of the assessed lodging business even if it is passed on to transients. The assessment shall not be considered revenue for any purposes, including calculation of transient occupancy taxes.
Bonds shall not be issued.
E. Penalties and Interest
If any business shall fail or refuse to remit to the City the assessment due on or before the last day of the month in which the assessment becomes due, there shall be added to the assessment a penalty of ten percent (10%) of the amount of the assessment. If the assessment remains delinquent and SMTMD Management District Plan 14
September 29, 2016
unpaid thereafter for a period of thirty (30) days, there shall be an additional penalty of ten percent (10%).
F. Time and Manner for Collecting Assessments
The SMTMD assessment will be implemented beginning January 1, 2018 and will continue for nine and one-half (9.5) years through June 30, 2027. The City will be responsible for collecting the assessment on a monthly basis (including any delinquencies, penalties and interest) from each lodging with an average daily rate of $100 or more. The City shall take all reasonable efforts to collect the assessments from each lodging business. The City shall forward the assessments collected to the Owners’ Association.
SMTMD Management District Plan 15
September 29, 2016
VI. GOVERNANCE
A. Owners’ Association
The City Council, through adoption of this Management District Plan, has the right, pursuant to Streets and Highways Code §36651, to identify the body that shall implement the proposed program, which shall be the Owners’ Association of the SMTMD as defined in Streets and Highways Code §366612. The City Council has determined that Santa Monica Travel & Tourism will serve as the Owners’ Association for the SMTMD.
The SMTT standing advisory committee, known as the “TMD Hotel Committee” shall continue to be responsible for making recommendations to the SMTT Board regarding SMTMD funds and programs. The TMD Hotel Committee shall have between four (4) and nine (9) members, of which at least four (4) will be representatives of assessed lodging businesses.
Annually, SMTT shall hold a joint SMTT board and TMD Hotel Committee meeting which will be open to the public. The purpose of the annual meeting will be mutual approval of the budget and programs for SMTMD funds for the upcoming fiscal year.
B. Brown Act and California Public Records Act Compliance An Owners’ Association 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. The Owners’ Association is, however, subject to government regulations relating to transparency, namely the Ralph M. Brown Act and the California Public Records Act. These regulations are designed to promote public accountability. The Owners’ Association acts as a legislative body under the Ralph M. Brown Act (Government Code §54950 et seq.). Thus, meetings of the SMTT board and certain committees must be held in compliance with the public notice and other requirements of the Brown Act. The Owners’ Association is also subject to the record keeping and disclosure requirements of the California Public Records Act. Accordingly, the Owners’ Association shall publicly report any action taken and the vote or abstention on that action of each member present for the action.
C. Annual Report
SMTT shall present an annual report at the end of each year of operation to the City Council pursuant to Streets and Highways Code §36650 (see Appendix 1). The annual report shall include:
x Any proposed changes in the boundaries of the improvement district or in any benefit zones or classification of businesses within the district.
x The improvements and activities to be provided for that fiscal year. x An estimate of the cost of providing the improvements and the activities for that fiscal year. x The method and basis of levying the assessment in sufficient detail to allow each business owner to estimate the amount of the assessment to be levied against his or her business for that fiscal year.
x The estimated amount of any surplus or deficit revenues to be carried over from a previous fiscal year.
x The estimated amount of any contributions to be made from sources other than assessments levied pursuant to this part.
D. Milestone Report
SMTT shall prepare a five-year Milestone Report, which will be due in May 2022 prior to the City’s approval of the annual report for Fiscal Year 2022-2023. The Milestone Report shall be submitted to SMTMD Management District Plan 16
September 29, 2016
the City and all assessed businesses. It shall include all information required in the annual report, as well as historical program and performance data, including key performance indicators for lodging businesses such as average daily rate, revenue per available room, and occupancy rates. The Milestone Report may serve as the annual report for Fiscal Year 2022-2023. If lodging businesses are not satisfied with the results of the Milestone Report, they may petition the City to disestablish the District pursuant to Streets and Highways Code section 36650.
SMTMD Management District Plan 17
September 29, 2016
APPENDIX 1 – LAW
STREETS AND HIGHWAYS CODE
Division 18. Parking
Part 7. Property and Business Improvement District Law of 1994 Cal Sts & Hy Code Div. 18, Pt. 7 Note (2015)
*** This document is current through the 2015 Supplement *** (All 2014 legislation)
36600. Citation of part
This part shall be known and may be cited as the “Property and Business Improvement District Law of 1994.” 36601. Legislative findings and declarations
The Legislature finds and declares all of the following:
(a) Businesses located and operating within business districts in some of this state’s communities are economically disadvantaged, are underutilized, and are unable to attract customers due to inadequate facilities, services, and activities in the business districts.
(b) It is in the public interest to promote the economic revitalization and physical maintenance of business districts in order to create jobs, attract new businesses, and prevent the erosion of the business districts. (c) It is of particular local benefit to allow business districts to fund business related improvements, maintenance, and activities through the levy of assessments upon the businesses or real property that receive benefits from those improvements.
(d) Assessments levied for the purpose of conferring special benefit upon the real property or businesses in a business district are not taxes for the general benefit of a city, even if property or persons not assessed receive incidental or collateral effects that benefit them.
(e) Property and business improvement districts formed throughout this state have conferred special benefits upon properties and businesses within their districts and have made those properties and businesses more useful by providing the following benefits:
(1) Crime reduction. A study by the Rand Corporation has confirmed a 12-percent reduction in the incidence of robbery and an 8-percent reduction in the total incidence of violent crimes within the 30 districts studied.
(2) Job creation.
(3) Business attraction.
(4) Business retention.
(5) Economic growth.
(6) New investments.
(f) With the dissolution of redevelopment agencies throughout the state, property and business improvement districts have become even more important tools with which communities can combat blight, promote economic opportunities, and create a clean and safe environment. (g) Since the enactment of this act, the people of California have adopted Proposition 218, which added Article XIII D to the Constitution in order to place certain requirements and restrictions on the formation of, and activities, expenditures, and assessments by property-based districts. Article XIII D of the Constitution provides that propertybased districts may only levy assessments for special benefits. (h) The act amending this section is intended to provide the Legislature’s guidance with regard to this act, its interaction with the provisions of Article XIII D of the Constitution, and the determination of special benefits in property-based districts.
(1) The lack of legislative guidance has resulted in uncertainty and inconsistent application of this act, which discourages the use of assessments to fund needed improvements, maintenance, and activities in propertybased districts, contributing to blight and other underutilization of property. (2) Activities undertaken for the purpose of conferring special benefits upon property to be assessed inherently produce incidental or collateral effects that benefit property or persons not assessed. Therefore, for special SMTMD Management District Plan 18
September 29, 2016
benefits to exist as a separate and distinct category from general benefits, the incidental or collateral effects of those special benefits are inherently part of those special benefits. The mere fact that special benefits produce incidental or collateral effects that benefit property or persons not assessed does not convert any portion of those special benefits or their incidental or collateral effects into general benefits. (3) It is of the utmost importance that property-based districts created under this act have clarity regarding restrictions on assessments they may levy and the proper determination of special benefits. Legislative clarity with regard to this act will provide districts with clear instructions and courts with legislative intent regarding restrictions on property-based assessments, and the manner in which special benefits should be determined. 36602. Purpose of part
The purpose of this part is to supplement previously enacted provisions of law that authorize cities to levy assessments within property and business improvement districts, to ensure that those assessments conform to all constitutional requirements and are determined and assessed in accordance with the guidance set forth in this act.
This part does not affect or limit any other provisions of law authorizing or providing for the furnishing of improvements or activities or the raising of revenue for these purposes. 36603. Preemption of authority or charter city to adopt ordinances levying assessments Nothing in this part is intended to preempt the authority of a charter city to adopt ordinances providing for a different method of levying assessments for similar or additional purposes from those set forth in this part. A property and business improvement district created pursuant to this part is expressly exempt from the provisions of the Special Assessment Investigation, Limitation and Majority Protest Act of 1931 (Division 4 (commencing with Section 2800)).
36603.5. Part prevails over conflicting provisions
Any provision of this part that conflicts with any other provision of law shall prevail over the other provision of law, as to districts created under this part.
36604. Severability
This part is intended to be construed liberally and, if any provision is held invalid, the remaining provisions shall remain in full force and effect. Assessments levied under this part are not special taxes. 36606. “Activities”
“Activities” means, but is not limited to, all of the following that benefit businesses or real property in the district:
(a) Promotion of public events.
(b) Furnishing of music in any public place.
(c) Promotion of tourism within the district.
(d) Marketing and economic development, including retail retention and recruitment. (e) Providing security, sanitation, graffiti removal, street and sidewalk cleaning, and other municipal services supplemental to those normally provided by the municipality. (f) Other services provided for the purpose of conferring special benefit upon assessed businesses and real property located in the district.
36606.5. “Assessment”
“Assessment” means a levy for the purpose of acquiring, constructing, installing, or maintaining improvements and providing activities that will provide certain benefits to properties or businesses located within a property and business improvement district.
36607. “Business”
SMTMD Management District Plan 19
September 29, 2016
“Business” means all types of businesses and includes financial institutions and professions. 36608. “City”
“City” means a city, county, city and county, or an agency or entity created pursuant to Article 1 (commencing with Section 6500) of Chapter 5 of Division 7 of Title 1 of the Government Code, the public member agencies of which includes only cities, counties, or a city and county, or the State of California. 36609. “City council”
“City council” means the city council of a city or the board of supervisors of a county, or the agency, commission, or board created pursuant to a joint powers agreement and which is a city within the meaning of this part. 36609.4. “Clerk”
“Clerk” means the clerk of the legislative body.
36609.5. “General benefit”
“General benefit” means, for purposes of a property-based district, any benefit that is not a “special benefit” as defined in Section 36615.5.
36610. “Improvement”
“Improvement” means the acquisition, construction, installation, or maintenance of any tangible property with an estimated useful life of five years or more including, but not limited to, the following:
(a) Parking facilities.
(b) Benches, booths, kiosks, display cases, pedestrian shelters and signs. (c) Trash receptacles and public restrooms.
(d) Lighting and heating facilities.
(e) Decorations.
(f) Parks.
(g) Fountains.
(h) Planting areas.
(i) Closing, opening, widening, or narrowing of existing streets. (j) Facilities or equipment, or both, to enhance security of persons and property within the area. (k) Ramps, sidewalks, plazas, and pedestrian malls.
(l) Rehabilitation or removal of existing structures.
36611. “Management district plan”; “Plan”
“Management district plan” or “plan” means a proposal as defined in Section 36622. 36612. “Owners’ Association”
“Owners’ association” means a private nonprofit entity that is under contract with a city to administer or implement improvements, maintenance, and activities specified in the management district plan. An owners’ association may be an existing nonprofit entity or a newly formed nonprofit entity. An owners’ association 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. Notwithstanding this section, an owners’ association shall comply with the Ralph M. Brown Act (Chapter 9 (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 district are heard, discussed, or deliberated, and with the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1 of the Government Code), for all records relating to activities of the district.
SMTMD Management District Plan 20
September 29, 2016
36614. “Property”
“Property” means real property situated within a district. 36614.5. “Property and business improvement district”; “District” “Property and business improvement district,” or “district,” means a property and business improvement district established pursuant to this part.
36614.6. “Property-based assessment”
“Property-based assessment” means any assessment made pursuant to this part upon real property. 36614.7. “Property-based district”
“Property-based district” means any district in which a city levies a property-based assessment. 36615. “Property owner”; “Business owner”; “Owner”
“Property owner” means any person shown as the owner of land on the last equalized assessment roll or otherwise known to be the owner of land by the city council. “Business owner” means any person recognized by the city as the owner of the business. “Owner” means either a business owner or a property owner. The city council has no obligation to obtain other information as to the ownership of land or businesses, and its determination of ownership shall be final and conclusive for the purposes of this part. Wherever this part requires the signature of the property owner, the signature of the authorized agent of the property owner shall be sufficient. Wherever this part requires the signature of the business owner, the signature of the authorized agent of the business owner shall be sufficient. 36615.5. “Special benefit”
“Special benefit” means, for purposes of a property-based district, a particular and distinct benefit over and above general benefits conferred on real property located in a district or to the public at large. Special benefit includes incidental or collateral effects that arise from the improvements, maintenance, or activities of property-based districts even if those incidental or collateral effects benefit property or persons not assessed. Special benefit excludes general enhancement of property value.
36616. “Tenant”
“Tenant” means an occupant pursuant to a lease of commercial space or a dwelling unit, other than an owner. 36617. Alternative method of financing certain improvements and activities; Effect on other provisions This part provides an alternative method of financing certain improvements and activities. The provisions of this part shall not affect or limit any other provisions of law authorizing or providing for the furnishing of improvements or activities or the raising of revenue for these purposes. Every improvement area established pursuant to the Parking and Business Improvement Area Law of 1989 (Part 6 (commencing with Section 36500) of this division) is valid and effective and is unaffected by this part.
36620. Establishment of property and business improvement district A property and business improvement district may be established as provided in this chapter. 36620.5. Requirement of consent of city council
SMTMD Management District Plan 21
September 29, 2016
A county may not form a district within the territorial jurisdiction of a city without the consent of the city council of that city. A city may not form a district within the unincorporated territory of a county without the consent of the board of supervisors of that county. A city may not form a district within the territorial jurisdiction of another city without the consent of the city council of the other city. 36621. Initiation of proceedings; Petition of property or business owners in proposed district (a) Upon the submission of a written petition, signed by the property or business owners in the proposed district who will pay more than 50 percent of the assessments proposed to be levied, the city council may initiate proceedings to form a district by the adoption of a resolution expressing its intention to form a district. The amount of assessment attributable to property or a business owned by the same property or business owner that is in excess of 40 percent of the amount of all assessments proposed to be levied, shall not be included in determining whether the petition is signed by property or business owners who will pay more than 50 percent of the total amount of assessments proposed to be levied.
(b) The petition of property or business owners required under subdivision (a) shall include a summary of the management district plan. That summary shall include all of the following:
(1) A map showing the boundaries of the district.
(2) Information specifying where the complete management district plan can be obtained. (3) Information specifying that the complete management district plan shall be furnished upon request. (c) The resolution of intention described in subdivision (a) shall contain all of the following:
(1) A brief description of the proposed improvements, maintenance, and activities, the amount of the proposed assessment, a statement as to whether the assessment will be levied on property or businesses within the district, a statement as to whether bonds will be issued, and a description of the exterior boundaries of the proposed district, which may be made by reference to any plan or map that is on file with the clerk. The descriptions and statements do not need to be detailed and shall be sufficient if they enable an owner to generally identify the nature and extent of the improvements, maintenance, and activities, and the location and extent of the proposed district. (2) A time and place for a public hearing on the establishment of the property and business improvement district and the levy of assessments, which shall be consistent with the requirements of Section 36623. 36622. Contents of management district plan
The management district plan shall include, but is not limited to, all of the following:
(a) If the assessment will be levied on property, a map of the district in sufficient detail to locate each parcel of property and, if businesses are to be assessed, each business within the district. If the assessment will be levied on businesses, a map that identifies the district boundaries in sufficient detail to allow a business owner to reasonably determine whether a business is located within the district boundaries. If the assessment will be levied on property and businesses, a map of the district in sufficient detail to locate each parcel of property and to allow a business owner to reasonably determine whether a business is located within the district boundaries. (b) The name of the proposed district.
(c) A description of the boundaries of the district, including the boundaries of benefit zones, proposed for establishment or extension in a manner sufficient to identify the affected property and businesses included, which may be made by reference to any plan or map that is on file with the clerk. The boundaries of a proposed property assessment district shall not overlap with the boundaries of another existing property assessment district created pursuant to this part. This part does not prohibit the boundaries of a district created pursuant to this part to overlap with other assessment districts established pursuant to other provisions of law, including, but not limited to, the Parking and Business Improvement Area Law of 1989 (Part 6 (commencing with Section 36500)). This part does not prohibit the boundaries of a business assessment district created pursuant to this part to overlap with another business assessment district created pursuant to this part. This part does not prohibit the boundaries of a business assessment district created pursuant to this part to overlap with a property assessment district created pursuant to this part.
(d) The improvements, maintenance, and activities proposed for each year of operation of the district and the maximum cost thereof. If the improvements, maintenance, and activities proposed for each year of operation are the same, a description of the first year’s proposed improvements, maintenance, and activities and a statement that the same improvements, maintenance, and activities are proposed for subsequent years shall satisfy the requirements of this subdivision.
(e) The total annual amount proposed to be expended for improvements, maintenance, or activities, and debt service in each year of operation of the district. If the assessment is levied on businesses, this amount may be estimated SMTMD Management District Plan 22
September 29, 2016
based upon the assessment rate. If the total annual amount proposed to be expended in each year of operation of the district is not significantly different, the amount proposed to be expended in the initial year and a statement that a similar amount applies to subsequent years shall satisfy the requirements of this subdivision. (f) The proposed source or sources of financing, including the proposed method and basis of levying the assessment in sufficient detail to allow each property or business owner to calculate the amount of the assessment to be levied against his or her property or business. The plan also shall state whether bonds will be issued to finance improvements.
(g) The time and manner of collecting the assessments.
(h) The specific number of years in which assessments will be levied. In a new district, the maximum number of years shall be five. Upon renewal, a district shall have a term not to exceed 10 years. Notwithstanding these limitations, a district created pursuant to this part to finance capital improvements with bonds may levy assessments until the maximum maturity of the bonds. The management district plan may set forth specific increases in assessments for each year of operation of the district. (i) The proposed time for implementation and completion of the management district plan. (j) Any proposed rules and regulations to be applicable to the district. (k) (1) A list of the properties or businesses to be assessed, including the assessor’s parcel numbers for properties to be assessed, and a statement of the method or methods by which the expenses of a district will be imposed upon benefited real property or businesses, in proportion to the benefit received by the property or business, to defray the cost thereof.
(2) In a property-based district, the proportionate special benefit derived by each identified parcel shall be determined exclusively in relationship to the entirety of the capital cost of a public improvement, the maintenance and operation expenses of a public improvement, or the cost of the activities. An assessment shall not be imposed on any parcel that exceeds the reasonable cost of the proportional special benefit conferred on that parcel. Only special benefits are assessable, and a property-based district shall separate the general benefits, if any, from the special benefits conferred on a parcel. Parcels within a property-based district that are owned or used by any city, public agency, the State of California, or the United States shall not be exempt from assessment unless the governmental entity can demonstrate by clear and convincing evidence that those publicly owned parcels in fact receive no special benefit. The value of any incidental, secondary, or collateral effects that arise from the improvements, maintenance, or activities of a property-based district and that benefit property or persons not assessed shall not be deducted from the entirety of the cost of any special benefit or affect the proportionate special benefit derived by each identified parcel.
(l) In a property-based district, the total amount of all special benefits to be conferred upon the properties located within the property-based district.
(m) In a property-based district, the total amount of general benefits, if any. (n) In a property-based district, a detailed engineer’s report prepared by a registered professional engineer certified by the State of California supporting all assessments contemplated by the management district plan. (o) Any other item or matter required to be incorporated therein by the city council. 36623. Procedure to levy assessment
(a) If a city council proposes to levy a new or increased property assessment, the notice and protest and hearing procedure shall comply with Section 53753 of the Government Code. (b) If a city council proposes to levy a new or increased business assessment, the notice and protest and hearing procedure shall comply with Section 54954.6 of the Government Code, except that notice shall be mailed to the owners of the businesses proposed to be assessed. A protest may be made orally or in writing by any interested person. Every written protest shall be filed with the clerk at or before the time fixed for the public hearing. The city council may waive any irregularity in the form or content of any written protest. A written protest may be withdrawn in writing at any time before the conclusion of the public hearing. Each written protest shall contain a description of the business in which the person subscribing the protest is interested sufficient to identify the business and, if a person subscribing is not shown on the official records of the city as the owner of the business, the protest shall contain or be accompanied by written evidence that the person subscribing is the owner of the business or the authorized representative. A written protest that does not comply with this section shall not be counted in determining a majority protest. If written protests are received from the owners or authorized representatives of businesses in the proposed district that will pay 50 percent or more of the assessments proposed to be levied and protests are not withdrawn so as to reduce the protests to less than 50 percent, no further proceedings to levy the proposed assessment against such businesses, as contained in the resolution of intention, shall be taken for a period of one year from the date of the finding of a majority protest by the city council.
SMTMD Management District Plan 23
September 29, 2016
(c) If a city council proposes to conduct a single proceeding to levy both a new or increased property assessment and a new or increased business assessment, the notice and protest and hearing procedure for the property assessment shall comply with subdivision (a), and the notice and protest and hearing procedure for the business assessment shall comply with subdivision (b). If a majority protest is received from either the property or business owners, that respective portion of the assessment shall not be levied. The remaining portion of the assessment may be levied unless the improvement or other special benefit was proposed to be funded by assessing both property and business owners.
36624. Changes to proposed assessments
At the conclusion of the public hearing to establish the district, the city council may adopt, revise, change, reduce, or modify the proposed assessment or the type or types of improvements, maintenance, and activities to be funded with the revenues from the assessments. Proposed assessments may only be revised by reducing any or all of them. At the public hearing, the city council may only make changes in, to, or from the boundaries of the proposed property and business improvement district that will exclude territory that will not benefit from the proposed improvements, maintenance, and activities. Any modifications, revisions, reductions, or changes to the proposed assessment district shall be reflected in the notice and map recorded pursuant to Section 36627. 36625. Resolution of formation
(a) If the city council, following the public hearing, decides to establish a proposed property and business improvement district, the city council shall adopt a resolution of formation that shall include, but is not limited to, all of the following:
(1) A brief description of the proposed improvements, maintenance, and activities, the amount of the proposed assessment, a statement as to whether the assessment will be levied on property, businesses, or both within the district, a statement on whether bonds will be issued, and a description of the exterior boundaries of the proposed district, which may be made by reference to any plan or map that is on file with the clerk. The descriptions and statements need not be detailed and shall be sufficient if they enable an owner to generally identify the nature and extent of the improvements, maintenance, and activities and the location and extent of the proposed district. (2) The number, date of adoption, and title of the resolution of intention. (3) The time and place where the public hearing was held concerning the establishment of the district. (4) A determination regarding any protests received. The city shall not establish the district or levy assessments if a majority protest was received.
(5) A statement that the properties, businesses, or properties and businesses in the district established by the resolution shall be subject to any amendments to this part. (6) A statement that the improvements, maintenance, and activities to be conferred on businesses and properties in the district will be funded by the levy of the assessments. The revenue from the levy of assessments within a district shall not be used to provide improvements, maintenance, or activities outside the district or for any purpose other than the purposes specified in the resolution of intention, as modified by the city council at the hearing concerning establishment of the district.
(7) A finding that the property or businesses within the area of the property and business improvement district will be benefited by the improvements, maintenance, and activities funded by the proposed assessments, and, for a property-based district, that property within the district will receive a special benefit. (8) In a property-based district, the total amount of all special benefits to be conferred on the properties within the property-based district.
(b) The adoption of the resolution of formation and, if required, recordation of the notice and map pursuant to Section 36627 shall constitute the levy of an assessment in each of the fiscal years referred to in the management district plan.
36626. Resolution establishing district
If the city council, following the public hearing, desires to establish the proposed property and business improvement district, and the city council has not made changes pursuant to Section 36624, or has made changes that do not substantially change the proposed assessment, the city council shall adopt a resolution establishing the district. The resolution shall contain all of the information specified in Section 36625. 36627. Notice and assessment diagram
SMTMD Management District Plan 24
September 29, 2016
Following adoption of the resolution establishing district assessments on properties pursuant to Section 36625 or Section 36626, the clerk of the city shall record a notice and an assessment diagram pursuant to Section 3114. No other provision of Division 4.5 (commencing with Section 3100) applies to an assessment district created pursuant to this part.
36628. Establishment of separate benefit zones within district; Categories of businesses The city council may establish one or more separate benefit zones within the district based upon the degree of benefit derived from the improvements or activities to be provided within the benefit zone and may impose a different assessment within each benefit zone. If the assessment is to be levied on businesses, the city council may also define categories of businesses based upon the degree of benefit that each will derive from the improvements or activities to be provided within the district and may impose a different assessment or rate of assessment on each category of business, or on each category of business within each zone. 36628.5. Assessments on businesses or property owners
The city council may levy assessments on businesses or on property owners, or a combination of the two, pursuant to this part. The city council shall structure the assessments in whatever manner it determines corresponds with the distribution of benefits from the proposed improvements, maintenance, and activities, provided that any propertybased assessment conforms with the requirements set forth in paragraph (2) of subdivision (k) of Section 36622. 36629. Provisions and procedures applicable to benefit zones and business categories All provisions of this part applicable to the establishment, modification, or disestablishment of a property and business improvement district apply to the establishment, modification, or disestablishment of benefit zones or categories of business. The city council shall, to establish, modify, or disestablish a benefit zone or category of business, follow the procedure to establish, modify, or disestablish a property and business improvement district. 36630. Expiration of district; Creation of new district If a property and business improvement district expires due to the time limit set pursuant to subdivision (h) of Section 36622, a new management district plan may be created and the district may be renewed pursuant to this part. 36631. Time and manner of collection of assessment; Delinquent payments The collection of the assessments levied pursuant to this part shall be made at the time and in the manner set forth by the city council in the resolution levying the assessment. Assessments levied on real property may be collected at the same time and in the same manner as for the ad valorem property tax, and may provide for the same lien priority and penalties for delinquent payment. All delinquent payments for assessments levied pursuant to this part may be charged interest and penalties.
36632. Assessments to be based on estimated benefit; Classification of real property and businesses; Exclusion of residential and agricultural property
(a) The assessments levied on real property pursuant to this part shall be levied on the basis of the estimated benefit to the real property within the property and business improvement district. The city council may classify properties for purposes of determining the benefit to property of the improvements and activities provided pursuant to this part. (b) Assessments levied on businesses pursuant to this part shall be levied on the basis of the estimated benefit to the businesses within the property and business improvement district. The city council may classify businesses for purposes of determining the benefit to the businesses of the improvements and activities provided pursuant to this part.
(c) Properties zoned solely for residential use, or that are zoned for agricultural use, are conclusively presumed not to benefit from the improvements and service funded through these assessments, and shall not be subject to any assessment pursuant to this part.
SMTMD Management District Plan 25
September 29, 2016
36633. Time for contesting validity of assessment
The validity of an assessment levied under this part shall not be contested in any action or proceeding unless the action or proceeding is commenced within 30 days after the resolution levying the assessment is adopted pursuant to Section 36626. Any appeal from a final judgment in an action or proceeding shall be perfected within 30 days after the entry of judgment.
36634. Service contracts authorized to establish levels of city services The city council may execute baseline service contracts that would establish levels of city services that would continue after a property and business improvement district has been formed. 36635. Request to modify management district plan
The owners’ association may, at any time, request that the city council modify the management district plan. Any modification of the management district plan shall be made pursuant to this chapter. 36636. Modification of plan by resolution after public hearing; Adoption of resolution of intention; Modification of improvements and activities by adoption of resolution after public hearing (a) Upon the written request of the owners’ association, the city council may modify the management district plan after conducting one public hearing on the proposed modifications. The city council may modify the improvements and activities to be funded with the revenue derived from the levy of the assessments by adopting a resolution determining to make the modifications after holding a public hearing on the proposed modifications. If the modification includes the levy of a new or increased assessment, the city council shall comply with Section 36623.
Notice of all other public hearings pursuant to this section shall comply with both of the following:
(1) The resolution of intention shall be published in a newspaper of general circulation in the city once at least seven days before the public hearing.
(2) A complete copy of the resolution of intention shall be mailed by first class mail, at least 10 days before the public hearing, to each business owner or property owner affected by the proposed modification. (b) The city council shall adopt a resolution of intention which states the proposed modification prior to the public hearing required by this section. The public hearing shall be held not more than 90 days after the adoption of the resolution of intention.
36637. Reflection of modification in notices recorded and maps Any subsequent modification of the resolution shall be reflected in subsequent notices and maps recorded pursuant to Division 4.5 (commencing with Section 3100), in a manner consistent with the provisions of Section 36627. 36640. Bonds authorized; Procedure; Restriction on reduction or termination of assessments (a) The city council may, by resolution, determine and declare that bonds shall be issued to finance the estimated cost of some or all of the proposed improvements described in the resolution of formation adopted pursuant to Section 36625, if the resolution of formation adopted pursuant to that section provides for the issuance of bonds, under the Improvement Bond Act of 1915 (Division 10 (commencing with Section 8500)) or in conjunction with Marks-Roos Local Bond Pooling Act of 1985 (Article 4 (commencing with Section 6584) of Chapter 5 of Division 7 of Title 1 of the Government Code). Either act, as the case may be, shall govern the proceedings relating to the issuance of bonds, although proceedings under the Bond Act of 1915 may be modified by the city council as necessary to accommodate assessments levied upon business pursuant to this part. (b) The resolution adopted pursuant to subdivision (a) shall generally describe the proposed improvements specified in the resolution of formation adopted pursuant to Section 36625, set forth the estimated cost of those improvements, specify the number of annual installments and the fiscal years during which they are to be collected. The amount of debt service to retire the bonds shall not exceed the amount of revenue estimated to be raised from assessments over 30 years.
SMTMD Management District Plan 26
September 29, 2016
(c) Notwithstanding any other provision of this part, assessments levied to pay the principal and interest on any bond issued pursuant to this section shall not be reduced or terminated if doing so would interfere with the timely retirement of the debt.
36650. Report by owners’ association; Approval or modification by city council (a) The owners’ association shall cause to be prepared a report for each fiscal year, except the first year, for which assessments are to be levied and collected to pay the costs of the improvements, maintenance, and activities described in the report. The owners’ association’s first report shall be due after the first year of operation of the district. The report may propose changes, including, but not limited to, the boundaries of the property and business improvement district or any benefit zones within the district, the basis and method of levying the assessments, and any changes in the classification of property, including any categories of business, if a classification is used. (b) The report shall be filed with the clerk and shall refer to the property and business improvement district by name, specify the fiscal year to which the report applies, and, with respect to that fiscal year, shall contain all of the following information:
(1) Any proposed changes in the boundaries of the property and business improvement district or in any benefit zones or classification of property or businesses within the district. (2) The improvements, maintenance, and activities to be provided for that fiscal year. (3) An estimate of the cost of providing the improvements, maintenance, and activities for that fiscal year. (4) The method and basis of levying the assessment in sufficient detail to allow each real property or business owner, as appropriate, to estimate the amount of the assessment to be levied against his or her property or business for that fiscal year.
(5) The estimated amount of any surplus or deficit revenues to be carried over from a previous fiscal year. (6) The estimated amount of any contributions to be made from sources other than assessments levied pursuant to this part.
(c) The city council may approve the report as filed by the owners’ association or may modify any particular contained in the report and approve it as modified. Any modification shall be made pursuant to Sections 36635 and 36636.
The city council shall not approve a change in the basis and method of levying assessments that would impair an authorized or executed contract to be paid from the revenues derived from the levy of assessments, including any commitment to pay principal and interest on any bonds issued on behalf of the district. 36651. Designation of owners’ association to provide improvements and activitites The management district plan may, but is not required to, state that an owners’ association will provide the improvements, maintenance, and activities described in the management district plan. If the management district plan designates an owners’ association, the city shall contract with the designated nonprofit corporation to provide services.
36660. Renewal of district; Transfer or refund of remaining revenues; District term limit (a) Any district previously established whose term has expired, or will expire, may be renewed by following the procedures for establishment as provided in this chapter. (b) Upon renewal, any remaining revenues derived from the levy of assessments, or any revenues derived from the sale of assets acquired with the revenues, shall be transferred to the renewed district. If the renewed district includes additional parcels or businesses not included in the prior district, the remaining revenues shall be spent to benefit only the parcels or businesses in the prior district. If the renewed district does not include parcels or businesses included in the prior district, the remaining revenues attributable to these parcels shall be refunded to the owners of these parcels or businesses.
(c) Upon renewal, a district shall have a term not to exceed 10 years, or, if the district is authorized to issue bonds, until the maximum maturity of those bonds. There is no requirement that the boundaries, assessments, improvements, or activities of a renewed district be the same as the original or prior district. 36670. Circumstances permitting disestablishment of district; Procedure SMTMD Management District Plan 27
September 29, 2016
(a) Any district established or extended pursuant to the provisions of this part, where there is no indebtedness, outstanding and unpaid, incurred to accomplish any of the purposes of the district, may be disestablished by resolution by the city council in either of the following circumstances:
(1) If the city council finds there has been misappropriation of funds, malfeasance, or a violation of law in connection with the management of the district, it shall notice a hearing on disestablishment. (2) During the operation of the district, there shall be a 30-day period each year in which assessees may request disestablishment of the district. The first such period shall begin one year after the date of establishment of the district and shall continue for 30 days. The next such 30-day period shall begin two years after the date of the establishment of the district. Each successive year of operation of the district shall have such a 30-day period. Upon the written petition of the owners or authorized representatives of real property or the owners or authorized representatives of businesses in the area who pay 50 percent or more of the assessments levied, the city council shall pass a resolution of intention to disestablish the district. The city council shall notice a hearing on disestablishment. (b) The city council shall adopt a resolution of intention to disestablish the district prior to the public hearing required by this section. The resolution shall state the reason for the disestablishment, shall state the time and place of the public hearing, and shall contain a proposal to dispose of any assets acquired with the revenues of the assessments levied within the property and business improvement district. The notice of the hearing on disestablishment required by this section shall be given by mail to the property owner of each parcel or to the owner of each business subject to assessment in the district, as appropriate. The city shall conduct the public hearing not less than 30 days after mailing the notice to the property or business owners. The public hearing shall be held not more than 60 days after the adoption of the resolution of intention. 36671. Refund of remaining revenues upon disestablishment or expiration without renewal of district; Calculation of refund; Use of outstanding revenue collected after disestab-lishment of district (a) Upon the disestablishment or expiration without renewal of a district, any remaining revenues, after all outstanding debts are paid, derived from the levy of assessments, or derived from the sale of assets acquired with the revenues, or from bond reserve or construction funds, shall be refunded to the owners of the property or businesses then located and operating within the district in which assessments were levied by applying the same method and basis that was used to calculate the assessments levied in the fiscal year in which the district is disestablished or expires. All outstanding assessment revenue collected after disestablishment shall be spent on improvements and activities specified in the management district plan.
(b) If the disestablishment occurs before an assessment is levied for the fiscal year, the method and basis that was used to calculate the assessments levied in the immediate prior fiscal year shall be used to calculate the amount of any refund.
SMTMD Management District Plan 28
September 29, 2016
APPENDIX 2 – ASSESSED BUSINESSES
BUSINESS NAME BUSINESS MAILING ADDRESS
Bayside Hotel 2001 Ocean Avenue, Santa Monica, CA 90405 Best Western Plus Gateway Hotel
Santa Monica
1920 Santa Monica Boulevard, Santa Monica, CA
90404
Cal Mar Hotel Suites 220 California Avenue, Santa Monica, CA 90403 Comfort Inn Santa Monica-West Los
Angeles
2815 Santa Monica Boulevard, Santa Monica, CA
90404
Days Inn Santa Monica/Los Angeles 3007 Santa Monica Boulevard, Santa Monica, CA 90404
DoubleTree Suites by Hilton Hotel
Santa Monica
1707 Fourth Street, Santa Monica, CA 90401
Fairmont Miramar Hotel & Bungalows 101 Wilshire Boulevard, Santa Monica, CA 90401 Hotel Carmel 201 Broadway, Santa Monica, CA 90401
Hotel Cassa Del Mar 1910 Ocean Way, Santa Monica, CA 90405 Hotel Shangri-La at the Ocean 1301 Ocean Avenue, Santa Monica, CA 90401 Huntley Santa Monica Beach 1111 Second Street, Santa Monica, CA 90403 JW Marriott Santa Monica Le Merigot 1740 Ocean Avenue, Santa Monica, CA 90401 Le Meridien Delfina Santa Monica 530 Pico Boulevard, Santa Monica, CA 90405 Loews Santa Monica Beach Hotel 1700 Ocean Avenue, Santa Monica, CA 90401 Ocean Lodge Hotel Corporation 1667 Ocean Avenue, Santa Monica, CA 90401 Ocean Park Inn 2452 Lincoln Boulevard, Santa Monica, CA 90405 Ocean View Hotel 1447 Ocean Avenue, Santa Monica, CA 90401 Oceana Beach Club Hotel 11766 Wilshire Boulevard, Los Angeles, CA 90025 Palihouse Santa Monica 1001 Third Street, Santa Monica, CA 90403 Rest Haven Motel 815 Grant Street, Santa Monica, CA 90405 Santa Monica Motel 2102 Lincoln Boulevard, Santa Monica, CA 90405 Santa Monica Pico Travelodge 3102 Pico Boulevard, Santa Monica, CA 90405 Sea Shore Motel 2637 Main Street, Santa Monica, CA 90405 Seaview Hotel 1760 Ocean Avenue, Santa Monica, CA 90401 Shore Hotel 1515 Ocean Avenue, Santa Monica, CA 90401
Shutters on the Beach Hotel One Pico Boulevard, Santa Monica, CA 90405 The Ambrose Hotel 1255 20th Street, Santa Monica, CA 90404 The Cottage Santa Monica 2219 Ocean Avenue, Santa Monica, CA 90405 The Georgian Hotel 1415 Ocean Avenue, Santa Monica, CA 90401 The Hotel California 1670 Ocean Avenue, Santa Monica, CA 90401 Viceroy Santa Monica 1819 Ocean Avenue, Santa Monica, CA 90401 Wyndham Santa Monica – At The Pier 120 Colorado Avenue, Santa Monica, CA 90401 SMTMD Management District Plan 29
September 29, 2016
APPENDIX 3 – BENEFIT STUDY