Visalia City Council
707 W. Acequia
Visalia, CA 93291
Visalia City Council
Legislation Details (With Text)
File #: 22-0290 Version: 1
Type: Consent Item Status: Agenda Ready
File created: 7/14/2022 In control: Visalia City Council On agenda: 7/18/2022 Final action:
Title: Conduct a Public Meeting to renew the Visalia Tourism Marketing District.
Sponsors:
Indexes:
Code sections:
Attachments: 1. VTMD MDP DRAFT_5-6-2022_For Petition Drive.pdf Date Ver. Action By Action Result
Agenda Item Wording:
Conduct a Public Meeting to renew the Visalia Tourism Marketing District.
Deadline for Action: 7/18/2022
Submitting Department: Administration
Contact Name and Phone Number: Leslie B. Caviglia, City Manager Department Recommendation:
It is recommended that the Visalia City Council open public testimony to allow members of the public to provide comments on the renewal of the Visalia Tourism Marketing District (VTMD).
Background Discussion:
The VTMD is a benefit assessment district designed to help fund sales & marketing and destination development programs for certain Visalia lodging businesses. This approach has been used successfully in other destination areas throughout the state to improve tourism and drive demand for additional room nights to assessed lodging businesses. The renewed VTMD shall include all lodging businesses with twenty (20) rooms or more located within the boundaries of the City of Visalia (City), as shown on the map in the Management District Plan.
Lodging business owners decided to pursue renewal of the VTMD in order to continue a revenue source devoted to marketing Visalia as a tourist, meeting and event destination. If renewed, the VTMD would generate approximately $650,000 on an annual basis for promotion of travel and tourism specific to Visalia.
The VTMD shall be renewed pursuant to the Property and Business Improvement District Law of Visalia City Council Page 1 of 4 Printed on 9/3/2026
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File #: 22-0290, Version: 1
The VTMD shall be renewed pursuant to the Property and Business Improvement District Law of 1994 (94 Law). The 94 Law requires that a public meeting be held prior to the adoption of any new or increased assessment pursuant to Section 54954.6 of the Government Code. The public meeting is the third step in the VTMD renewal process and is intended to allow public testimony regarding the proposed assessment. No action is taken by the Council during this step.
TOURISM MARKETING DISTRICTS
Tourism Marketing Districts (TMDs) utilize the efficiencies of private sector operation in the marketbased promotion of tourism. These special assessment districts allow lodging business owners to organize their efforts to increase tourism. Lodging business owners within the TMD fund the TMD, and those funds are used to provide services that are desired by and benefit the lodging businesses within the TMD.
TMD benefits:
Ø Funds cannot be diverted for other government programs; Ø They are customized to fit the needs of each destination; Ø They allow for a wide range of services; including: destination marketing, tourism promotion, and sales lead generation;
Ø They are designed, created and governed by those who will pay the assessment; and Ø They provide a stable funding source for tourism promotion.
In California, TMDs are primarily formed pursuant to the Property and Business Improvement District Law of 1994 (94 Law). This law allows for the creation of a special benefit assessment districts to raise funds within a specific geographic area. The key difference between TMDs and other special benefit assessment districts is that funds raised are returned to the private non-profit corporation governing the TMD.
MANAGEMENT DISTRICT PLAN
The Management District Plan (Attachment 1) includes the proposed boundary of the renewed VTMD, a service plan and budget, and a proposed means of governance. The VTMD shall include all lodging businesses, existing and in the future, with twenty (20) rooms or more located within the boundaries of the City of Visalia (City).
The renewed VTMD shall have a ten (10) year life, beginning January 1, 2023 through December 31, 2032. The renewed VTMD assessment will be implemented beginning January 1, 2023. Once per year beginning on the anniversary of VTMD renewal there is a thirty (30) day period in which business owners paying fifty percent (50%) or more of the assessment may protest and begin proceedings to terminate the VTMD.
The annual assessment rate is two percent (2%) of gross short-term room rental revenue. Based on the benefit received, assessments will not be collected on: stays of more than thirty (30) consecutive days or stays by representatives or employees of a State or Federal government agency in the performance of their official duties as a representative or employee of the government agency paid for by the government agency.
The City shall be responsible for collecting the assessment on a monthly basis (including any delinquencies, penalties and interest) from each assessed business located in the boundaries of the VTMD. The City shall take all reasonable efforts to collect the assessments from each assessed business. The City retains 1% of the assessments collected as an Visalia City Council Page 2 of 4 Printed on 9/3/2026
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File #: 22-0290, Version: 1
efforts to collect the assessments from each assessed business. The City retains 1% of the assessments collected as an administrative fee, and receives annual reports on the TMD efforts to confirm that the Plan is being implemented.
VTMD RENEWAL PROCESS
June 6, 2022 RESOLUTION OF INTENTION HEARING [COMPLETED] Upon the submission of a written petition, signed by the business owners in the renewed VTMD who will pay more than fifty percent (50%) of the assessments proposed to be levied, the Visalia City Council (Council) may initiate proceedings to renew the VTMD by the adoption of a resolution expressing its intention to renew the VTMD.
Petition Status: Petitions in favor of VTMD renewal were submitted by businesses representing over 50% of the total VTMD assessment. This majority petition allows the Council to initiate proceedings for VTMD renewal at the June 6, 2022 meeting.
June 7, 2022 NOTICE [COMPLETED]
The 94 Law requires the City to mail written notice to the owners of all businesses proposed to be within the renewed VTMD. Mailing the notice begins a mandatory forty-five (45) day period in which owners may protest VTMD renewal.
July 18, 2022 PUBLIC MEETING
Allow public testimony on the renewal of the VTMD and levy of assessments. No Council action required.
August 1, 2022 FINAL PUBLIC HEARING
If written protests are received from the owners of businesses in the renewed VTMD which will pay more than fifty percent (50%) of the assessments proposed to be levied and protests are not withdrawn so as to reduce the protests to less than fifty percent (50%), no further proceedings to levy the proposed assessment against such businesses shall be taken for a period of one (1) year from the date of the finding of a majority protest by the Council.
If the Council, following the final public hearing, decides to renew the VTMD, the Council shall adopt a resolution of formation.
Fiscal Impact:
The City retains 1% of the assessments collected as an administrative fee.
Prior Council Action: The Council approved the initial formation of the District in 2017 Other: N/A
Alternatives: The Council could choose to not hold the hearing and not proceed with the approval process.
Recommended Motion (and Alternative Motions if expected):
No motion or action is required.
Visalia City Council Page 3 of 4 Printed on 9/3/2026
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File #: 22-0290, Version: 1
Environmental Assessment Status: N/A
CEQA Review: N/A
Attachments: N/A
Visalia City Council Page 4 of 4 Printed on 9/3/2026
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