1 City Council Meeting: October 27, 2026, Santa Monica, California RESOLUTION NUMBER ______ (CCS)
(City Council Series)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA DECLARING
ITS INTENTION TO RENEW THE SANTA MONICA TOURISM MARKETING DISTRICT
AND FIXING THE TIME AND PLACE OF A PUBLIC MEETING AND A PUBLIC HEARING
THEREON AND GIVING NOTICE THEREOF
WHEREAS, the City Council (“Council”) of the City of Santa Monica (“City”) created the Santa Monica Tourism Marketing District (“SMTMD”) on December 11, 2012 by Resolution No. 10722 (CCS) for an initial five (5) year term; and
WHEREAS, the SMTMD was subsequently renewed on November 1, 2016 by Resolution No. 11005 (CCS) for an additional nine and one-half (9.5) year term, which ends on June 30, 2027; and
WHEREAS, the Property and Business Improvement District Law of 1994, Streets and Highways Code § 36600 et seq., authorizes the City to renew business improvement districts for the purposes of promoting tourism; and
WHEREAS, Santa Monica Travel & Tourism (“SMTT”), lodging business owners, and representatives from the City have met to consider the renewal of the SMTMD; and WHEREAS, assessed businesses worked with SMTT to develop a Management District Plan (Plan) which sets forth the proposed boundary of the SMTMD, a service plan and budget, and a proposed means of governance; and
WHEREAS, lodging businesses who will pay more than fifty percent (50%) of the assessment under the SMTMD have petitioned the Council to renew the SMTMD.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL THAT:
1. The recitals set forth herein are true and correct.
2 2. The Council finds that assessed businesses that will pay more than fifty percent (50%) of the assessment proposed in the Plan have signed and submitted petitions in support of the renewal of the SMTMD. The Council accepts the petitions and adopts this Resolution of Intention to renew the SMTMD and to levy an assessment on certain lodging businesses within the SMTMD boundaries in accordance with the Property and Business Improvement District Law of 1994.
3. The Council finds that the Plan satisfies all requirements of Streets and Highways Code §36622.
4. The Council declares its intention to renew the SMTMD and to levy and collect assessments on assessed businesses within the SMTMD boundaries pursuant to the Property and Business Improvement District Law of 1994.
5. The SMTMD shall include all lodging businesses, existing and in the future, available for public occupancy located within the boundaries of the City with an average daily rate of $100 or more, as shown in the map attached as Exhibit A.
6. The name of the district shall continue to be the Santa Monica Tourism Marketing District.
7. The annual 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 thirty-one (31) or more consecutive days by the same natural person; stays paid by any Federal, State of California, or City, official or employee when on official business provided that an exemption certificate is executed at the time of registration; stays associated with occupancy by a natural person who has occupied, or had the right to occupy, a room or 3 rooms in a lodging business for at least thirty-one (31) consecutive days, where any portion of the room rental is paid by a person other than a natural person and the occupancy is necessitated by (i) displacement from a residence caused by fire, natural disaster, or other casualty, (ii) extended medical treatment, or (iii) other comparable circumstances beyond the natural person's control; stays paid to any hospital, medical clinic, convalescent home or home for aged people; and stays paid by any person as to whom, or any occupancy as to which, it is beyond the power of the City to impose the assessment herein by reason of federal, State, or local law or regulation. Lodging businesses with an average daily rate less than $100 will not be included in the district or assessed. Initial assessment rates for July – December 2027 are:
Tier Average Daily
Rate
Assessment Per Occupied Room Per
Night
1 $300 and above $7.50
2 $200 - $299.99 $6.50
3 $100 - $199.99 $2.40
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:
Year
Tier 3
$100 - $199.99
Tier 2
$200 -
$299.99
Tier 1
$300 and Above
4 July 2027- Dec
2027
$2.40 $6.50 $7.50
2028 $2.50 $6.75 $7.75
2029 $2.60 $7.00 $8.00
2030 $2.70 $7.25 $8.25
2031 $2.80 $7.50 $8.50
2032 $2.90 $7.75 $8.75
2033 $3.00 $8.00 $9.00
2034 $3.10 $8.25 $9.25
2035 $3.20 $8.50 $9.50
2036 $3.30 $8.75 $9.75
*The initial “year” is July 1, 2027 through December 31, 2027
8. The assessments levied for the SMTMD shall be applied toward sales and marketing programs to market assessed businesses in Santa Monica as tourist, meeting, and event destinations, as described in the Plan. Funds remaining at the end of any year may be used in subsequent years in which SMTMD assessments are levied as long as they are used consistent with the requirements of this Resolution and the Plan.
9. The renewed SMTMD will have a term not to exceed nine and one-half (9.5) years, beginning July 1, 2027, or as soon as possible thereafter, and ending December 31, 2036, unless renewed pursuant to Streets and Highways Code § 36660.
10. Bonds shall not be issued.
11. The time and place for the public meeting to hear testimony on renewing the SMTMD and levying assessments are set for November 17, 2026, at 5:30 PM, or as soon thereafter as the matter may be heard, at the City Hall Council Chambers located at 1685 Main Street, Room 250, Santa Monica, CA 90401.
12. The time and place for the public hearing to renew the SMTMD and the levy of assessments are set for January 12, 2027, at 5:30 PM, or as soon thereafter as the matter may be heard, at the City Hall Council Chambers located at 1685 Main Street, 5 Room 250, Santa Monica, CA 90401. The City Clerk is directed to mail joint written notice to the owners of all lodging businesses proposed to be assessed, in accordance with Streets and Highways Code § 36623, no later than November 7, 2026.
13. At the November 17, 2026 public meeting and the January 12, 2027 public hearing the testimony of all interested persons for or against the renewal of the SMTMD shall be received. If at the conclusion of the public hearing, there are of record written protests by the owners of the assessed businesses within the renewed SMTMD that will pay fifty percent (50%) or more of the estimated total assessment of the entire SMTMD, no further proceedings to levy the proposed assessment, as contained in this Resolution, shall be taken for one (1) year from the date the Council finds that a majority protest exists.
14. The complete Plan is on file with the City Clerk and may be reviewed upon request.
15. This resolution shall take effect immediately upon its adoption by the City Council.
The City Clerk shall certify to the adoption of this Resolution, and thenceforth and thereafter the same shall be in full force and effect.
_________________________
HEIDI VON TONGELN
City Attorney
6 EXHIBIT A
District Boundaries