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HomeMy WebLinkAbout021522-06.5 ADMINISTRATIVE STAFF REPORT 6.5 TO: Mayor and Town Council February 15, 2022 SUBJECT: Resolution 9-2022, granting consent to the City of Pleasanton to include the Town of Danville in the renewal the Tri-Valley Tourism Marketing District (TVTMD) BACKGROUND On March 17, 2015, Town Council adopted Resolution 29-2015 granting consent to the City of Pleasanton to include the Town of Danville in the renewal of the Tri-Valley Tourism Marketing District (TVTMD), dated December 15, 2014, which is set to expire June 30, 2022. The TVTMD is a benefit assessment district designed to help fund sales, marketing and destination development programs for Tri-Valley area 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 TVTMD would include all lodging businesses with five (5) rooms or more located within the boundaries of the Town of Danville (Town), the cities of Dublin, Livermore, and Pleasanton (Cities) and those portions of the unincorporated areas of Contra Costa and Alameda Counties (Counties), as shown in the map at Page 7 of the Management District Plan (Attachment C). DISCUSSION Renewal of the TVTMD will allow for a continued revenue source, managed by Visit Tri Valley, to be devoted to marketing the Tri-Valley area as a tourist, meeting and event destination. If renewed, the TVTMD would generate approximately $2,166,000 on an annual basis for promotion of travel and tourism specific to the Tri-Valley area. Tourism Marketing Districts In California, Tourism Marketing Districts (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. TVTMD Renewal Consent 2 February 15, 2022 TMDs utilize the efficiencies of private sector operations 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 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: • 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. Management District Plan The Management District Plan includes the proposed boundary of the renewed TVTMD, a service plan and budget and a proposed means of governance. The TVTMD shall include all lodging businesses with five (5) rooms or more located within the current TVTMD boundaries, which includes Danville’s only hotel, the Best Western Sycamore Inn. The manager of the hotel is on the VTV Board of Directors and is supportive of the TVTMD renewal. The renewed TVTMD will have a ten (10) year life, beginning July 1, 2022, or as soon as possible thereafter, that will end ten (10) years from its start date. The renewed TVTMD assessment will be implemented beginning July 1, 2022. Once per year beginning on the anniversary of TVTMD 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 TVTMD. The annual assessment rate is currently three dollars and twenty-five ($3.25) per paid occupied room per night. Based on the benefit received, assessments will not be collected on 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 annual assessment rate may be subject to an increase each year starting in the third year, the amount of which shall be determined by the Visit Tri-Valley Board, as described in the Plan. The total assessment rate may not exceed four dollars ($4.00). Each city, town and county shall be responsible for collecting the assessment on a quarterly basis (including any delinquencies, penalties and interest) from each lodging TVTMD Renewal Consent 3 February 15, 2022 business located in their respective jurisdictions within the boundaries of the TVTMD. Each city, town and county shall take all reasonable efforts to collect the assessments from each lodging business. On a quarterly basis, each City, Town and County shall forward the assessment collected to the City of Pleasanton, which shall then forward the assessments collected to the Owners’ Association. The TVTMD will maintain its existing governance structure with the VTV Board of Directors acting as the board of directors for the tourism district and the City of Pleasanton serving as the lead agency in forming the assessment district and administering assessment distribution. PUBLIC CONTACT Posting of the meeting agenda serves as notice to the general public. FISCAL IMPACT It is anticipated that the annual assessment collected to support the TVTMD for the purpose of expanding tourism in the Tri-Valley will be approximately $46,000 for Danville. The fees collected, minus a 1% processing fee that will remain in the Town’s General Fund, will be forwarded to the VTV. The Town’s annual membership will remain at $2,500. RECOMMENDATION Adopt Resolution 9-2022, granting consent to the City of Pleasanton to include the Town of Danville in the renewal of the Tri-Valley Tourism Marketing District (TVTMD). Prepared by: Jill Bergman Business & Economic Development Director Attachments: A - Resolution No. 9-2022 B – City of Pleasanton Resolution No. 22-1267 requesting consent to include Danville in the renewal the Tri-Valley Tourism Marketing District (TVTMD) C – Management District Plan (dated April 21, 2015) ATTACHMENT A ATTACHMENT B ATTACHMENT C