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  Time Set   # 35.       
  
Meeting Date: 05/10/2022  
Brief Title:    TBID Renewal
From: Chad Rinde, Interim County Administrator, County Administrator's Office
Staff Contact: Alexander Tengolics, Manager of Governmental Relations, County Administrator's Office, x8068

Subject
Hold public hearing regarding the renewal of the Yolo County Tourism Business Improvement District. (No general fund impact) (Rinde/Tengolics)
Recommended Action
Hold public hearing regarding the renewal of the Yolo County Tourism Business Improvement District.
Strategic Plan Goal(s)
Robust Economy
Reason for Recommended Action/Background
The Yolo County Tourism Business Improvement District (YCTBID) is a benefit assessment district designed to help fund marketing and public relations and community marketing programs for Yolo County lodging businesses. This approach has been used successfully in other destination areas throughout the state to improve tourism and drive additional room nights to assessed lodging businesses. The renewed YCTBID shall include all lodging businesses, existing and in the future, with four (4) rooms or more located within the boundaries of unincorporated Yolo County and the cities of Davis and Winters.
 
Lodging business owners decided to pursue renewal of the YCTBID in order to continue a revenue source devoted to marketing Yolo County as a tourist, meeting and event destination. If renewed, the YCTBID would generate approximately $430,000 on an annual basis for promotion of travel and tourism specific to Yolo County.
 
The YCTBID 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 YCTBID renewal process and is intended to allow public testimony regarding the proposed assessment. No action is taken by the Board during this step.
 
Tourism Business Improvement Districts
 
Tourism Business Improvement Districts (TBIDs) utilize the efficiencies of private sector operation in the market-based promotion of tourism.  These special assessment districts allow lodging business owners to organize their efforts to increase tourism.  Lodging business owners within the TBID fund the TBID, and those funds are used to provide services that are desired by and benefit the lodging businesses within the TBID.

TBID benefits:
  • Funds cannot be diverted for other government programs;
  • They are customized to fit the needs of each destination;
  • They allow for a wide range of services; including: destination marketing, tourism promotion, and sales lead generation;
  • They are designed, created and governed by those who will pay the assessment; and
  • They provide a stable funding source for tourism promotion.
In California, TBIDs 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 TBIDs and other special benefit assessment districts is that funds raised are returned to the private non-profit corporation governing the TBID.
 
MANAGEMENT DISTRICT PLAN
 
The Management District Plan (Att. A) includes the proposed boundary of the renewed YCTBID, a service plan and budget and a proposed means of governance. The YCTBID shall include all lodging businesses, existing and in the future, with four (4) rooms or more located within the boundaries of unincorporated Yolo County (County) and the cities of Davis and Winters (cities).
 
The renewed YCTBID will have a seven (7) year life, beginning July 1, 2022, or as soon as possible thereafter, and end seven (7) years from its start date. Once per year, beginning on the anniversary of YCTBID renewal, there is a 30-day period in which owners paying more than fifty percent (50%) of the assessment may protest and initiate a Board of Supervisors hearing on YCTBID termination. 
 
The annual assessment rate shall be two percent (2%) of gross room rental revenue.  After the initial year, the assessment rate may be increased annually to a maximum of four percent (4%) of gross short-term room rental revenue as described in Section VI of the Management District Plan.  The assessment rate may also be decreased, but shall never drop below two percent (2%) of gross short-term room rental revenue.  The maximum annual assessment increases or decreases shall be one half percent (0.5%) per year. Based on the benefit received, the assessment shall not be collected on: stays of more than thirty (30) consecutive days and stays by any officer or employee of a foreign government who is exempt by reason of express provision of federal law or international treaty.
 
The County and cities shall be responsible for collecting the assessment on a monthly or quarterly basis (including any delinquencies, penalties and interest) from each assessed lodging business located in the YCTBID, within their respective jurisdictions.  The County and the cities shall take all reasonable efforts to collect the assessments from each assessed business.
 
Below is a timeline of the TBID renewal process and remaining steps. 

April 26, 2022          RESOLUTION OF INTENTION HEARING [COMPLETED]
Upon the submission of a written petition, signed by the business owners in the renewed YCTBID who will pay more than fifty percent (50%) of the assessments proposed to be levied, the Yolo County Board of Supervisors (Board) may initiate proceedings to renew the YCTBID by the adoption of a resolution expressing its intention to renew the YCTBID.
 
Petition Status: Petitions in favor of YCTBID renewal were submitted by 11 lodging businesses, which represent 58.57% of the total YCTBID assessment. This majority petition allows the Board to initiate proceedings for YCTBID renewal at the April 26, 2022 meeting.
 
April 27, 2022           NOTICE [COMPLETED]
The 94 Law requires the County to mail written notice to the owners of all businesses proposed to be within the renewed YCTBID.  Mailing the notice begins a mandatory forty-five (45) day period in which owners may protest YCTBID renewal. 
 
May 10, 2022           PUBLIC MEETING
Required to allow public testimony on the renewal of the YCTBID and levy of assessments.  No Board action is required on this date. 
 
June 28, 2022           FINAL PUBLIC HEARING
If written protests are received from the owners of businesses in the renewed YCTBID 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 Board.
 
At the conclusion of the public hearing to renew the YCTBID, the Board may adopt, revise, change, reduce, or modify the proposed assessment or the type or types of improvements and activities to be funded with the revenues from the assessments. Proposed assessments may only be revised by reducing any or all of them.
 
If the Board, following the public hearing, decides to renew the YCTBID, the Board shall adopt a resolution of formation.
Collaborations (including Board advisory groups and external partner agencies)
Visit Yolo

Fiscal Impact
No Fiscal Impact
Fiscal Impact (Expenditure)
Total cost of recommended action:    $  
Amount budgeted for expenditure:    $  
Additional expenditure authority needed:    $  
On-going commitment (annual cost):    $  
Source of Funds for this Expenditure
Attachments
Att. A. Management District Plan

<
Form Review
Inbox Reviewed By Date
Jill Perez Jill Perez 04/28/2022 03:55 PM
Chad Rinde Chad Rinde 04/29/2022 09:38 AM
Joanne Van Hoosear Joanne Van Hoosear 04/29/2022 01:57 PM
Form Started By: Alexander Tengolics Started On: 03/08/2022 02:07 PM
Final Approval Date: 04/29/2022

    

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