The URL can be used to link to this page

Home My WebLink AboutRes 08-86 Formation of Palm Springs Desert Resorts CTBIDp ,-,i MEETING QATE __.-....,�...,) r5t.cNT►NUED TO __..__91/1-0? PASSED TO 2ND PE:A A3 �.._ CITY OF PILM DESERT OFFICE OF THE CITY MANAGER STAFF REPORT REQUEST: CONSIDERATION OF RESOLUTION NO. 08-86 TO GRANT CONSENT TO THE COUNTY OF RIVERSIDE TO FORM THE PALM SPRINGS DESERT RESORTS COMMUNITIES TOURISM BUSINESS IMPROVEMENT DISTRICT DATE: August 28, 2008 CONTENTS: Proposed City of Palm Desert Resolution No. 08-86 County Board of Supervisors Staff Report County of Riverside Resolution No. 2008-330 SUBMITTED BY: Carlos L. Ortega, City Manager Recommendation: By Minute Motion, adopt Resolution No. 08-86 granting consent to the County of Riverside to form the Palm Springs Desert Resort Communities Tourism Business Improvement District. Executive Summary: The Palm Springs Desert Resorts Communities Convention and Visitors Authority (CVA) Joint Powers Authority, made up of elected officials from each of the eight member cities in the Coachella Valley (Coachella is excluded because it does not have any hotels), and the Hospitality Industry and Business Council (HIBC), made up of hoteliers and tourism business owners, have agreed unanimously to institute a Business Improvement District (BID) for the region. The purpose for creating the BID is twofold: (1) to increase funding for the CVA by increasing the financial participation of valley hotels, and (2) to decrease the amount of the TOT contributions from the cities. The plan would decrease the amount of transient occupancy taxes each city would contribute to the CVA by about 75 percent. Coachella Valley cities have various TOT rates. Those rates will remain in effect and will not affect the overall plan. Hotels in the Coachella Valley with fifty (50) rooms or more would be assessed a 2% BID assessment that would be passed on to hotel guests. G:ICITYMGRIKAREN RUSSO AGENDA REPORTS 20081PALM SPRINGS DESERT RESORT COMMUNITIES TOURISM BID.DOCX Background: The Riverside County Board of Supervisors adopted Resolution 2008-330 requesting consent of the cities of Cathedral City, Desert Hot Springs, Indian Wells, Indio, LaQuinta, Palm Desert, Palm Springs, and Rancho Mirage, to create the Palm Springs Desert Resort Communities Tourism Business Improvement District (BID). The Board of Supervisors appointed the CVA Hospitality Industry and Business Council (HIBC) as the advisory board to the Board of Supervisors to recommend the provisions of the Resolution of Intention prior to the formation of the Tourism BID. The Advisory Committee will direct how funds are used and will report annually to the County. There will be no phase -in; assessments will begin immediately upon formation of the BID. This plan, when implemented, would include increasing the privately contributed revenue to the CVA and decreasing the publicly funded revenue, with the overall goal of increasing the CVA's marketing budget. Funding generated by the BID would subsidize the CVA's prescribed aim to promote the desert to travelers and encourage conventions to come to the region. The agency currently has a $6.3 million budget. Cities fund $5.0 million of this amount from TOT. Implementation of the BID with the 2% room rate assessment for all hotels with a minimum of 50 rooms is projected to raise $ 7.6 million for a total funding in 2009 of $ 10.25 million. In 2010, the cities TOT contribution would be reduced by 75%, netting the CVA a budget of $10.25 million dollars. If approved, the following Palm Desert hotels, all over 50 rooms, would be subject to the 2% assessment: Best Western -Palm Desert Resort * Courtyard by Marriott Embassy Suites Hotel * Fairfield Inn Hampton Inn & Suites Holiday Inn Express International Lodge Marriott Desert Springs * Residence Inn by Marriott * Shadow Mountain Resort * The state -enabling legislation for BID's in California is in place as part of the Parking and Business Improvement Area Law of 1989. Examples of key California cities with tourism BID's in place include Costa Mesa, Folsom, Huntington Beach, Laguna Beach, Marin County, Marina del Rey, Orange, Sacramento, San Mateo County, South Placer County, and West Hollywood. * Under the current TOT formula, these hotels are designated convention hotels. The City pays more TOT for convention than non -convention hotels G:ICITYMGRVCAREN RUSSOWGENDA REPORTS 20081PALM SPRINGS DESERT RESORT COMMUNITI TOURISM BID.DOCX The City of Palm Desert was one of the first cities to form a BID under the new law and created the El Paseo Business Improvement District. Funds raised are used to promote businesses on El Paseo. A BID is a type of assessment district that is publicly sanctioned but privately directed. BIDS are public/private partnerships where private businesses agree to assess themselves in exchange for the authority to use the funds to benefit their business. Traditional California -based BID's that also promote tourism are active in the Monterey County (New Monterey, North Monterey, Old Monterey Business Association, Old Salinas, and Pacific Grove), and San Diego County, where 16 BID's support many of San Diego's most popular events. There will be a one-year transition during which time the cities will continue to contribute to the CVA using the current funding formula for the first year following formation of the BID. The combination of assessments and TOT contributions by all cities will enable the BID to build a reserve. Thereafter, the cities "share" will decrease to 25% of their TOT. There is no additional fiscal impact to the City for 2008/09. The budget for FY 08/09, scheduled to be paid to the CVA, is based on projected occupancy at the City's hotels. It is anticipated that the formation and structure of the BID will be completed by January, 2009. The "transition" is proposed to be calendar year 2009. This would ultimately mean that beginning January, 2010, the cities would begin contributing 25°/0 of the TOT funds they currently provide to the CVA. Based on the FY 08/09 budget figures, the City's contribution following the one-year transition would be reduced to approximately $250,000 (25%), leaving a balance of $750,000 in the City's general fund. Submitted By: CARLOS L. TEGA City Manager Approval: PAUL GIBSON Finance Director G:ICITYMGR KAREN RUSSOIAGENDA REPORTS 2008 PALM SPRINGS DESERT RESORT COMMUNITI6$ TOURISM BID.DOCX RESOLUTION NO. 08-86 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, GRANTING CONSENT TO THE COUNTY OF RIVERSIDE TO FORM THE PALM SPRINGS DESERT RESORT COMMUNITIES TOURISM BUSINESS IMPROVEMENT DISTRICT THE CITY COUNCIL OF THE CITY OF PALM DESERT DOES HEREBY RESOLVE AS FOLLOWS: WHEREAS, the California Legislature, in adopting the Parking and Business Improvement Area Law of 1989 (Streets & Highways Code Section 36500 et seq.) ("Business Improvement Law") authorized cities and counties to levy assessments on businesses in order to promote economic revitalization and tourism, to create jobs, attract new businesses, and prevent erosion of business districts; and WHEREAS, the County of Riverside is beginning the process to establish a business improvement district ("BID") to be commonly known as the Palm Springs Desert Resort Communities Tourism Business Improvement District ("Tourism BID"), pursuant to the Business Improvement Law, the purpose of which is to promote tourism within the desert communities and to fund programs that benefit the hotel and motel businesses within desert communities; and WHEREAS, the Board of Supervisors of the County of Riverside has requested consent to form the Tourism BID within the boundaries of the Cities of Cathedral City, Desert Hot Springs, Indian Wells, Indio, LaQuinta, Palm Desert, Palm Springs, and Rancho Mirage, by the adoption of Resolution No. 2008-300, dated July 1, 2008; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Palm Desert as follows: Section 1. Recitals are True and Correct. The recitals set forth herein are true and correct. Section 2. Consent for County of Riverside to Create Multi -Jurisdictional BID. The City Council consents to the County of Riverside forming the Tourism BID, which shall include the City of Palm Desert. Section 3. Transmission of Resolution to County of Riverside. The Clerk of the City of Palm Desert is hereby directed to transmit a certified copy of this Resolution to the Clerk of the Board of Supervisors of the County of Riverside. Resolution No. 08-86 BE IT FURTHER RESOLVED that the City Council of the City of Palm Desert, California, does hereby adopt this Resolution of Intention as set forth herein. PASSED AND ADOPTED this ATTEST: Rachelle D. Klassen City Clerk of the City of Palm Desert APPROVED AS TO FORM: STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss CITY OF PALM DESERT ) day of , 2008. Jean M. Benson Mayor of the City of Palm Desert BEST, BEST & KRIEGER, LLP David J. Erwin, City Attorney I, Rachelle D. Klassen, City Clerk of the City of Palm Desert, hereby certify that the above and foregoing Resolution No. was duly and regularly passed and adopted by the said City Council at a regular meeting thereof held on the day of , 2008, by the following roll call vote: AYES: NOES: ABSENT: IN WITNESS WHEREOF, I have hereunto set my hand and affixed the seal of the City of Palm Desert this day of , 2008. Rachelle D. Klassen City Clerk of the City of Palm Desert . qoa * � SUBMITTAL TO THE BOARD OF SUPERVISQR$ ,a ;:M� � ''* COUNTY OF RIVERSIDE, STATE OF CAL��Qf"�,t�,;�'�, ��;�� ¢':°;.t.��1�:�fjT. CA FROM: EXECUTIVE OFFICE ��,�� . �� SUBMITTAL DATE: July 1, 2008 SUBJECT:Adoption of Resolution 2008-330, Requesting consent of Cities in the Coachella Valley to form a Multi-jurisdictional Tourism Business Improvement District. RECOMMENDED MOTION: That the Board of Supervisors: 1. Approve and adopt Resolution 2008-330 requesting consent of the Cities of Cathedral City, Desert Hot Springs, Indian Wells, Indio, La Quinta, Palm Desert, Palm Springs, and Rancho Mirage, to � create the Palm Springs Desert Resort Communities Tourism Business Improvement District. � 2. Appoint the Hospitality Industry and Business Council (HIBC) of the Palm Spring Desert Resort <:; Communities Convention and Visitors Authority (CVA), a joint powers authority, as the >�cJvisory z; board to the Board of Supervisors to recommend the provisions of the resolution of intention prior to '�: the formation of the Palm Springs Desert Resort Communities Tourism Business Improvement w ;� District. � ; 3. Direct the Clerk of the Board to transmit a certified copy of Resolution 2008-330 to the City Clerk for � `o � each of the Cities of Cathedral City, Desert Hot Springs, Indian Wells, Indio, La Quinta, Palm Dese� ? �' Palm Springs, and Rancho Mirage. o ,9 U F- � � � Dan Martinez �Q Deputy County Executive cer � > `t O � aQ Current F.Y.Total Cost: $ 0 In Current Year Bud et: No �Q FI NANCIAL Current F.Y. Net County Cost: $ 0 Budget Adjustment g No o DATA Annual Net County Cost: $ 0 For Fiscal Year: 2008/09 � � m SOURCE OF FUNDS: N/A Positions To Be � Deleted Per A-30 Requires 4/5 Vote � C.E.O. RECOMMENDATION: U � - a a° Count Executive Office Si nature BY' ❑ ❑ � � MINUTES OF THE BOARD O SUPERVISORS � � N V1 C C � � On motion of Supervisor Buster, seconded by Supervisor Stone and duly ❑ ❑ carried by urranimous vote, IT WAS ORDERED that the above matter is approved as recommended. Ayes: Buster, Tavaglione, Stone, Wilson and Ashley Nays: None Nancy Romero �- Absent: None CI�I th Board � U -/ 0 o Date: July 1, 2008 m� � X xc: E.O., Cities Deputy a w o a Prev. Agn. Ref.: District: Agenda Number: • Form 11 SUBJECT: Adoption of Resolution 2008-330, Requesting consent of Cities in the Coachella Valley to form a Multi-jurisdictional Tourism Business Improvement District. Page 2 of 4 BACKGROUND: On June 23, 2008, the County of Riverside received a letter (Attachment A) from the Palm Springs Desert Resort Communities Convention and Visitors Authority (CVA) requesting that the County begin the process of forming a Palm Springs Desert Resort Communities Tourism Business Improvement District (Tourism BID) in the Coachella Valley. The CVA is a Joint Powers Authority that was established to promote the hospitality industry in the member communities which includes the unincorporated area of the Coachella Valley, Cathedral City, Desert Hot Springs, Indian Wells, Indio, La Quinta, Palm Desert, Palm Springs, and Rancho Mirage. It serves as a coordinating agency for sales, marketing and promotional efforts aimed at potential tourism, corporate, incentive and convention group markets. A BID is a type of assessment district that is public4y sanctioned but privately directed. The assessment is not considered a tax under Proposition 218 because businesses are being assessed, not property. BIDs are essentially public/private partnerships where private businesses agree to assess themselves in exchange for the authority to use the funds to benefit their business. Cities and counties form these districts that collect the assessments while turning over the revenue to an association or advisory group to spend according to plan. BIDs have been used successfully in other areas by both cities and counties to support tourism and marketing efforts. Examples of multi- jurisdictional BIDs created by other California counties include those formed by Mendocino County, San Luis Obispo County, and Sonoma County. The CVA completed a thorough review and approved the multi-jurisdictional Tourism BID concept with the input of their Joint Powers Authority Executive Committee (JPA), Technical Advisory Committee (TAC), and Hospitality Industry and Business Council (HIBC). The CVA also consulted with representatives from hotels of fifty rooms/units or more who also provided input and endorsed the recommendation to form a multi jurisdictional Tourism BID in the Coachella Valley. Tourism is the Coachella Valley's number one industry. Tourism provides the most jobs and contributes the greatest amount to the local tax base for that area. The Tourism BID would provide a stable source of marketing dollars that would enhance the area's ability to plan and implement marketing and sales programs. It would also provide more control to hospitality professionals on the , use of funds generated from their businesses. This new source of funds would add to the marketing and sales activities and would allow for the Coachella Valley to be more competitive in the tourism market. The level of assessment being considered for the proposed Tourism BID is two percent (2%) of the sale of overnight room stays and would apply only to hotels and motels with fifty (50) or more sleeping rooms. There are approximately 80 hotels/motels in the Coachella Valley that fall in this category. The total annual revenue projected to be generated in the first full year is approximately $7.6 million. The revenue collected would be used to fund the following activities to promote Tourism in the Coachella Valley: 1. Marketing, advertising, and public relations; 2. Brochure development and distribution; 3. Promotion of Public events which benefit businesses in the area and which take place on or in public places within the area; 4. Activities which benefit businesses located and operating in the area, including but not limited to downtown shopping and promotional programs. Form 11 SUBJECT: Adoption of Resolution 2008-330, Requesting consent of Cities in the Coachella Valley to form a Multi-jurisdictional Tourism Business Improvement District. Page 3 of 4 BACKGROUND (Continued): The current funding responsibility shouldered by local governments to pay for regional tourism marketing programs would decrease due to the formation of a Tourism BID. CVA Joint Powers Authority member jurisdictions currently pay for most of the CVA marketing efforts with a portion of their Transient Occupancy Tax (TOT) revenue. If approved, funding from the Cities and County to the CVA would decrease by seventy five percent (75%) from $4.96 million to $1.24 million beginning the second year of implementing the Tourism BID. The savings in funding could be used by the Cities/County to promote their individual marketing efforts. Funding from local governments would remain the same during the first year but would change in the second year as indicated on the chart below: Cities/Count Contributions Current With Tourism BID 25% Palm S rin s 1,185,622 296,406 Palm Desert 973,324 243,331 Indian Wells 937,056 234,264 Rancho Mira e 869,930 217,483 La Quinta 660,352 165,088 Cathedral Cit 123,000 30,750 (ndio 91,020 22,755 Desert Hot S rin s 77,511 19,378 Riverside Count 48,824 12,206 TOTAL $4,966,639 $1,241,661 The first step in forming the Tourism BID will be for the County to approve Resolution 2008-330. This resolution formally requests consent from each of the participating cities for the County to form the Tourism BID in the Coachella Valley. Resolution 2008-330 also designates the HIBC as the advisory committee to the Board of Supervisors for the formation of the proposed Tourism BID. The HIBC is comprised of hospitality professionals from the Coachella Valley, including hotel general managers, restaurateurs, and attraction managers. There are 17 HIBC board members at any given time, including a Chair, Vice Chair, and Secretary. Its current purpose is to review and guide CVA policies, marketing initiatives, and other matters relating to the success of the CVA from the hospitality industry's perspective. The second step will be for each city to consider the request from the County. If approved, each city will adopt its own resolution granting permission for the County to include the city's jurisdiction in the Tourism BID. The County will not proceed to the next step unless all the cities identified in Resolution 2008-330 grant the necessary consent. The third step will be for the county to adopt a resolution declaring its intent to establish the Tourism BID and scheduling a public hearing. Notice of the intent to establish the Tourism BID and of the public hearing will be published and will be mailed to each impacted business. The proposed creation of the Tourism BID will fail if written protests are received from impacted business owners in the proposed area which will pay fifty percent (50%) or more of the assessments. Form 11 SUBJECT: Adoption of Resolution 2008-330, Requesting consent of Cities in the Coachella Valley to form a Multi-jurisdictional Tourism Business Improvement District. Page 4 of 4 BACKGROUND (Continued): The fourth and final step will be for the county to adopt the ordinance that establishes the Tourism BID and allows for the assessments to be levied. The target effective date of the Tourism BID ordinance is January 1, 2009. Due to the recognized potential benefits and interest shown in forming a BID in the Coachella Valley, it is recommended that the County begin the process of forming a multi jurisdictional Tourism BID by approving the attached Resolution 2008-330. 1 Board of Supervisors County of Riverside 2 3 RESOLUTION NO. 2008-330 4 5 A RESOLUTION UF THE BOARD OF SUPERVISORS OF THE COUNTY OF RIVERSIDE CALIFORNIA, REQUESTING CONSENT OF THE CITIES OF CATHEDRAL CITY DESERT 6 HOT SPRINGS, INDIAN WELLS, INDIO, LA QUINTA PALM DESERT PALM SPRINGS � AND RANCHO MIRAGE, TO CREATE THE PALM SPRINGS DESERT RESORT COMMUNITIES TOURISM BUSINESS IMPROVEMENT DISTRICT AND APPOINTING AN g ADVISORY BOARD TO RECOMMEND PROVISIONS OF A RESOLUTION OF iNTENTION TO CREATE A BUSINESS IMPROVEMENT DISTRICT 9 10 THE BOARD OF SUPERVISORS OF THE COUNTY OF RIVERSIDE DOES HEREBY 11 RESOLVE AS FOLLOWS: 12 WHEREAS, the California Legislature in adopting the Parking and Business Improvement Area 13 Law of 1989 (Streets & Highways Code § 36500 et, seq.) authorized cities and counties to levy assessment 14 on businesses in order to promote economic revitalization and tourism, to create jobs, attract new IS 16 businesses and prevent erosion of business districts; and 1� WHEREAS, the Board of Supervisors of the County of Riverside desires to begin the process to 1 g form a business improvement district ("BID") to be commonly known as the Palm Springs Desert Resort 19 Communities Tourism Business Improvement District ("Tourism BID"), the purpose of which is to 20 promote tourism within the desert communities and to fund programs that benefit the hotel and motel 21 businesses within desert communities; and 22 23 WHEREAS, certain lodging businesses within the proposed Tourism BID have requested that the 24 Board of Supervisors establish such a business improvement area; and 25 WHEREAS, the territory proposed to be included in the Tourism BID ]ies within the boundaries 26 and jurisdiction of the Cities of Cathedral City, Desert Hot Springs, Indian Wells, Indio, La Quinta, Palm 27 Desert, Palm Springs, and Rancho Mirage; and 28 07.01.08 3. 17 1 WHEREAS, it is the opinion of the Board of Supervisors that the hotel and motel businesses locate 2 within the proposed Tourism BID will benefit from the activities of a business improvement district and the 3 u ose sou t to be accom lished b the work can best be accom lished b a sin le com rehensive P IP � P � Y P � Y g P 4 scheme of work; and 5 WHEREAS, consenting cities will participate in the proposed Tourism BID by authorizing the 6 � County of Riverside to collect the assessment applied to certain hotels and motels within their local g jurisdictions; 9 NOW, THEREFORE, BE IT RESOLVED by the Board of Supervisors of the County of Riverside 10 as follows: 11 Section 1. Recitals are True and Correct. The recitals set forth herein are true and correct. 12 Section 2. Consent of Cities reQuested to Create Multi-Jurisdictional BID. Consent of the Cities, 13 through their City Council, is hereby requested to create the Palm Springs Desert Resort Communities 14 15 Tourism Business Improvement District, and to grant to the Board of Supervisors of the County of 16 Riverside jurisdiction in connection with creation and operation of the proposed Tourism BID, with input 1� from the lodging businesses and participating cities. i 8 Section 3. Appointment of Advisory Board Prior to Adoption of Resolution of Intention. The 19 County appoints the Hospitality Industry and Business Council (HIBC) of the Palm Springs Desert Resort 20 Communities Convention and Visitors Authority(CVA), a joint powers authority, as the advisory board 21 22 pursuant to Section 36530 of the California Streets and Highways Code to recommend the provisions of the 23 resolution of intention prior to the adoption of the resolution of intention to create the Tourism BID. The 24 HIBC, which includes 17 experts from the local hospitality community, interprets the policies of the CVA 25 and advises on CVA marketing programs. 26 Section 4. Transmission of Resolution to Cities. The Clerk of the Board is hereby directed to 27 transmit a certified copy of this Resolution to the City Clerk for each of the Cities of Cathedral City, Desert 28 Hot Springs, Indian Wells, Indio, La Quinta, Palm Desert, Palm Springs, and Rancho Mirage. 1 BE IT FURTHER RESOLVED THAT the Board of Supervisors of the County of Riverside, 2 California, does hereby adopt this Resolution as set forth herein. 3 PASSED AND ADOPTED this lst day of July 2008. � 4 5 ATTEST: 6 . 7 L��CG� g Sandi Schlemmer, Deputy Clerk for Nancy Romero, Clerk of the Board R ' son, Chairman 9 Board of Supervisors of the County of Riverside 10 11 12 13 14 15 16 17 18 19 20 21 FOR PPROV� NTYCO�NrSE�I�� BY� '� � T A E A. AR NER �—�ATE 22 23 24 25 26 27 28 07.01.08 3.17 1 STATE OF CALIFORNIA ) 2 CITY OF RIVERSIDE ) ss 3 COUNTY OF RIVERSIDE ) 4 5 I, Nancy Romero, Clerk of the Board of Supervisors of the County of Riverside, hereby certify tha 2008- 6 the above and foregoing Resolution No. 330 was duly and regularly passed and adopted by the said Boar � of Supervisors at a regular meeting thereof held on the 1 day of .7uly , 2008, by the following roll cal g vote: 9 10 AYES: Buster, Tavaglione, Stone, Wilson and Ashley 11 12 NOES: None 13 14 ABSENT: None 15 16 IN WITNESS WHEREOF, I have hereunto set my hand and affixed the seal of the County o 17 Riverside this lst day of July , 2008. 18 19 20 `� d 21 Sandi Schlemmer, Deputy Clerk for Nancy Romero, Clerk of the Board 22 The foregoing is certified to be a true copy of a resolution duly 23 adopted by said Board of Supervisors on the date therein set forth. 24 NANCY ROMERO, Clerk of said Board 25 By' Deputy 26 27 28 07.01.08 3.17 . ATTACHMENT A � f� � . . ��`�� . � � � �.��'�� t� . �� cat�� r� � �� s � Yo � � � u-r � o � FT� June 23, 2008 Hon. Ray S. Wilson Supervisor, 4th District County of Riverside 73-710 Fred Waring Dr., Suite 222 Palm Desert, CA 92260 Dear Supervisor Wilson: f am writing this letter to request that the County of Riverside initiate the action and process of formation for a multi Jurisdictional Business Improvement District (BlD) by approving the request Resolution (draft atEached} that will be submitted to the cities of Palm Springs, Rancho Mirage, Palm Desert, Indian WeIIs, La Quinfa, Indio, Desert Hot Springs, and Cathedral City. The Palm Sp�ings Desert Resort Communities Convention and Visitors Authority (CVA} has completed review and approval of the BID with the input af their Joint Pawers Authority Execu�tive Committee (JPA), Technical Advisory Committee (TAC), and Haspitality Industry and Business Council {HIBC). This process has led to the recommendation that the BID be formed as presented in this attached Resolution. The hotels in our VaUey of fifty raoms/units or mare expressed interest, provided input, and have endorsed formation of this multi jurisdictional BID. I respectfully request that the Hospitafity Industry and Business Council (HIBC) be designated as the advisory committee to the Caunty of Riverside Board af Supervisars for the multi jurisdictional BID. Th k you for your courtesy and consideration. '''ea/� Robert A. Bernheimer Chair, JPA Executive Committee cc: Dan Martinez, Deputy County Executive Officer Lee Marcus, Chair, HIBC . JefF Beckelman, President and CEO, CVA Servinp thc Dpeerl Resort CommunlUes ot Hluerslde Counly CntheJral Clly • Dosert Hol Sprtnps • Indlan Wnlls • Indlo• La Oulnto • Palm Uese�t • PaEm Sprtnqs• Rancha Mirape ___ _.. . _.._...... ... .... ....... .... ....__............,......_._._...._... ... ---._.......... ......._. _. _.._.- ___................._.._._.._..... 76-fp0 Nigl�tiray 1tt �itaneho Atlroge, CA 9Y270•T:760•770-9000• TF;900-967-3767 • F:76U•77D-9001 •palmsDrinpsu�a.cam Mlashinplon,DC Salee Olffta • 515 Kiqp Streel, Sulta 315 • Ate�andrlp,VA 2231A • T:7D9-549-6D2fi • f:703•519-75T9 �: �� °;I _ i:{ I � �� ;_ .. ,; ��1�r'ISlf�ft �sl.�� r _ �� _ - — ___ �,�fr T = �, �� `, , � `. :�i �' �� E. � �� d�i1�r a _ � � � � � . • � � ,r�,, _� ,.- �� F,`i � � February 2007 — Hospitality Stakeholder Discussions begin �` � January 2008 — HIBC Preliminary Discussion � • February 2008 — CVA Board Preliminary Discussion/Direction `"" — Task Force Appointed :, ..�.:,�_, - � qpril 2008 =� — Task Force Review/Recommendation • May 2008 — Joint HIBC/JPA Executive Committee Meeting . � . . . • • W "�,� � : , � A business improvement district(BID) is a type of assessment district that is publicly sanctioned but � 6 .'. ` privately directed. BIDS are public/private `� partnerships where private businesses agree to assess themselves in exchange for the authority to use the funds to benefit their businesses. Cities and counties form these districts and collect ' �`` assessments while turning over the revenue to an �:° association or advisory group to spend according �� to an agreed upon plan. � �� 1 �� ' � � • ,�,�� . ,- -�F1{ '`, i' • Defined boundary �� {` •�: _ � Assessment versus tax - . � Formed by public entity for private benefit �� Private sector directs use of funds ;;�p ;;;y'�..,: ._ �� Not subject to Proposition 218 � Brown Act provisions apply ��_ �;. `�,�� • � Option Recommendation r `I. Structure—Individual cities or CV-wide CV-Wide � �. Exclusions Hotels under 50 rooms - : ;e�. Assessment—Percentage or Fixed Percentage `= r!-. Amount of assessment 2% � 5. Phase in or no phase in No phase in " ,_�� 6. TOT contribution amount 25% � 7. Advisory Committee HIBG ��•�}"' ' 8. Restructure JPA , One year transition � � • . �� • � • � � - ; _ f'; � Current Under BID Palm Springs 1,185,622 296,406 ._;: = `= �, �alm Desert 973,324 243,331 Indian Wells 937,056 234,264 Rancho Mirage 869,930 217,483 La Quinta 660,352 165,088 Cathedral City 123,000 30,750 �``�� Indio 91,020 22,755 ,}. � `;' �HS 77,511 19,378 �"�"j Riverside County 48,824 � 12,206 TOTAL $4,966,639 $1,241,661 �: � . � �; • - . • . � . � • r '+' ,:; ��{ s t.� � r � �::� � � � � � � � i�,� 2008 Budget $ 6.3m ' °� �� BID Budget $10.25m ;� r � �,, �,.,,:. �= � . - • . • . � . � • , � �.��{ . � -T'�� . . • . • . • • - Current �ID �onv. Sales $2.1 m $3.8m ` � ' ' d�larketing $1 .2m $2.Om �IS $1 .Om $1 .7m � M�-r 1'otal Sales � �_ � Marketing $4.3m . $7.5m �� ; ,>:, :..Jie;�,b4+ " • . k,� L.J � JPA/HIBC/TAC approval of BID funding plan �' ` v. in June !k � Cities approve Resolution granting County I� , �� authorization to establish Coachella Valley �}. �_ BID r,., • County establishes BID