Chapter 3.36
TOURISM MARKETING DISTRICT

Sections:

3.36.010    Establishment of Area and Benefit Zone.

3.36.020    Description of Area and Benefit Zone.

3.36.030    Method of Assessment.

3.36.040    Funds.

3.36.050    Use of Revenues.

3.36.060    Amendments.

3.36.070    Effective Date.

3.36.080    Validity of Chapter.

3.36.010 Establishment of Area and Benefit Zone.

Pursuant to Section 36500 et seq. of the Streets and Highways Code of the State of California, a business improvement area designated as the Santa Clarita Tourism Marketing District (“TMD”) of the City of Santa Clarita is hereby created and established and the “benefit zone” is hereby created and established within such TMD. (Ord. 10-4 § 2, 5/25/10)

3.36.020 Description of Area and Benefit Zone.

The boundaries of the TMD shall include all of the real property within the City of Santa Clarita and the boundaries of said area are coterminous with the City boundaries, a map of which is on file in the office of the Clerk. The boundaries of the benefit zone shall include designated hotels now operating in the City identified and attached to the ordinance codified in this chapter as Exhibit “A” and may include hotels hereafter operating in the TMD pursuant to proceedings for inclusion. “Hotel” shall mean any structure, or any portion of any structure, which is occupied or intended or designed for occupancy by transients, including but not limited to for dwelling, lodging or sleeping purposes, and includes any hotel, inn, tourist home or house, motel, studio hotel, bachelor hotel, lodging house, rooming house, apartment house, dormitory, public or private club, mobilehome or house trailer at a fixed location, or other similar structure or portion thereof, duplex, triplex, single-family dwelling units except any private dwelling house or other individually owned single-family dwelling rented only infrequently and incidental to normal occupancy or any timeshare as set out in Revenue and Taxation Code Section 7280; provided, that the burden of establishing that the facility is not a hotel shall be on the owner or operator thereof. (Ord. 10-4 § 2, 5/25/10)

3.36.030 Method of Assessment.

A.    Only those designated hotels included within the benefit zone (identified and attached to the ordinance codified in this chapter as Exhibit “A”) shall be assessed. An annual assessment is to be levied against such hotels based on the benefits they derive from the program of activities. Businesses located outside the benefit zone (i.e., all non-hotel businesses) will not be assessed as they derive only, at most, an indirect benefit from the program of activities.

B.    This chapter and requirements established herein shall be applicable to all hotels in the designated benefit zone as said hotels existed as of the date of the ordinance codified in this chapter or as modified in subsequent proceedings for inclusion of hotels proposed to operate within the benefit zone. Any modification to the benefit zone or program of activities for which the assessments are to be levied would be subject to notification of all affected businesses within the TMD and a public hearing before the City Council. At such public hearing, the City Council shall hear all protests and receive evidence, including written protests, for and against such modifications, including the inclusion of additional hotels or business. Assessments on newly established hotels shall commence immediately upon the first day of operation and after the public hearing for inclusion of such property.

C.    In addition to any assessments, fees, charges or taxes imposed otherwise in the City, the City Council proposes to annually levy assessments against businesses in the benefit zone for the purpose of funding the programs, activities and services that will promote the City and hotels as a tourist destination. Each business in the benefit zone shall pay an assessment of two percent (2%) of total room rents charged and received from transient hotel guests who do not make the hotel their principal place of residence.

D.    The assessments hereby levied shall be due and payable and shall be paid at the same time and in the same manner that the transient occupancy tax is due and payable and shall be subject to the same penalties and interest for nonpayment.

E.    The method of assessment established by this chapter shall not be changed without written notice to all businesses in the TMD and a public hearing held by the City Council. At such a public hearing, the City Council shall hear all protests and receive evidence, including written protests, for and against the establishment of any change in the method of assessment. (Ord. 10-4 § 2, 5/25/10)

3.36.040 Funds.

There is created a special fund of the City to be designated as the “Santa Clarita Tourism Marketing District Fund” into which all revenue derived from the assessments under this chapter shall be placed and such funds shall be used only for the purposes specified in this chapter. (Ord. 10-4 § 2, 5/25/10)

3.36.050 Use of Revenues.

Revenues derived from the method of assessment described herein shall be used for programs and activities that will promote the City and hotels as a tourist destination. The City shall allocate the revenue generated under the provisions of this ordinance to the Santa Clarita Tourism Marketing District Fund and the Advisory Board appointed by the City Council shall provide recommendations as to the best use of these funds to support the programs, activities, and services to promote the City and hotels as a tourist destination on an annual basis. The Advisory Board shall make recommendations to the City of Santa Clarita and the City Council as to the use of available revenue for the following purposes:

A.    Promoting the identity of Santa Clarita through financial support of key regional and national events that support tourism and result in an economic impact; and

B.    Developing and implementing a destination marketing strategy and promotions designed to increase visitor attraction to Santa Clarita, including overnight visits; and

C.    Developing and undertaking an advertising and public relations program focusing on the business and leisure travel trade; and

D.    Annual operation expenses including, but not limited to, annual district administration functions and expenses, consultants, printing, postage and meetings. (Ord. 10-4 § 2, 5/25/10)

3.36.060 Amendments.

Businesses within the TMD established by this chapter shall be subject to any amendments to the Parking and Business Improvement Area Law of 1989, Section 36500 et seq. of the Streets and Highways Code. (Ord. 10-4 § 2, 5/25/10)

3.36.070 Effective Date.

The assessments to be collected pursuant to this chapter shall first be collected commencing fiscal year 2010-2011 (the fiscal year commencing July 1, 2010, and ending June 30, 2011) and the levy of such assessments is proposed to take effect the first day of the first quarter of fiscal year 2010-2011 (July 1, 2010) and shall be collected on a quarterly basis thereafter. (Ord. 10-4 § 2, 5/25/10)

3.36.080 Validity of Chapter.

If any section, sentence, clause or phrase of this chapter is, for any reason, held by a court of competent jurisdiction to be invalid, such decision shall not affect the validity of the remaining portions of this chapter The City Council of the City of Santa Clarita hereby declares that it would have passed and does hereby pass this section and each sentence, section, clause and phrase hereof, irrespective of the fact that any one (1) or more sections, sentences, clauses, or phrases be declared invalid or unconstitutional. (Ord. 10-4 § 2, 5/25/10)