Chapter 3.34
TOURISM IMPROVEMENT DISTRICT
Sections:
3.34.010 Healdsburg tourism improvement district renewed.
3.34.020 Management district plan.
3.34.030 Activities and improvements.
3.34.110 Amendments to enabling legislation.
3.34.010 Healdsburg tourism improvement district renewed.
The City of Healdsburg hereby renews the Healdsburg tourism improvement district (HTID), for a 10-year term, beginning January 1, 2023, and ending December 31, 2032, pursuant to the provisions of the Property and Business Improvement District Law of 1994, as set forth in California Streets and Highways Code Section 36600 et seq. (Ord. 1218 § 4, 2022.)
3.34.020 Management district plan.
The management district plan (“management plan”) dated September 21, 2022, is hereby adopted and approved. A copy is attached to the ordinance codified in this chapter and located in the office of the City Clerk. (Ord. 1218 § 4, 2022.)
3.34.030 Activities and improvements.
A. The activities to be provided to benefit businesses in the HTID will be funded by the levy of the assessment. The revenue from the assessment levy shall not be used to fund activities that directly benefit businesses outside the HTID; to fund activities or improvements outside the HTID; or for any purpose other than the purposes specified in this chapter, the resolution of intention adopted by the City Council on August 2, 2022, and the management plan. Notwithstanding the foregoing, improvements and activities that must be provided outside the HTID boundaries to create a specific benefit to the assessed businesses may be funded, but use of such funds shall be limited to marketing or signage pointing to the HTID.
B. The assessments levied for the HTID shall be applied toward marketing and sales promotions and district development programs to market HTID lodging businesses as tourist, meeting and event destinations, and other improvements and activities as set forth in the plan.
C. Assessments levied on lodging businesses pursuant to this chapter shall be levied on the basis of benefit. Because the services provided are intended to increase room rentals, an assessment based on room rentals is the best measure of benefit.
D. Assessments may be used to fund activities, as defined by Streets and Highways Code Section 36606, and improvements, as defined by Streets and Highways Code Section 36610, to benefit the assessed businesses, as described by the management plan. (Ord. 1218 § 4, 2022.)
3.34.040 Budget.
The assessment budget for the entire HTID will total approximately $1,500,000 in year one, and is anticipated to grow by three percent annually thereafter, subject to market conditions. A detailed annual assessment budget will be developed and approved by the chamber. Funds will be allocated as described in the management plan. (Ord. 1218 § 4, 2022.)
3.34.050 Bonds
Bonds shall not be issued to fund the HTID. (Ord. 1218 § 4, 2022.)
3.34.060 Boundaries.
The HTID includes all lodging businesses (including all lodging businesses located on the premises of a winery) located within the boundaries of the City of Healdsburg as described in the management district plan. (Ord. 1218 § 4, 2022.)
3.34.070 Assessments.
A. The annual assessment rate is two percent of gross short-term room rental revenue, for each assessed business. Based on the benefit received, assessments will not be collected on stays of more than 30 consecutive days; stays by any federal or state officer or employee when on official business; stays by any officer or employee of a foreign government who is exempt by reason of express provision of federal law or international treaty; and stays by any person who has signed an agreement in writing for occupancy in a lodging business for more than 30 days. During the 10-year term, the assessment rate may be decreased annually by the HTID owners’ association by a maximum of one-half of one percent of gross room rental revenue per year, as described in Section V of the management plan. The total assessment rate may not be decreased to less than one-half of one percent.
B. The assessments shall be used for the purposes set forth herein. Any funds remaining at the end of any year may be used in subsequent years in which the HTID assessment is levied as long as they are used consistent with the requirements set forth herein.
C. Assessments imposed pursuant to this chapter are levied solely upon the assessed business, and the business owner is solely responsible for payment of the assessment when due. If the owner chooses to collect any portion of the assessment from a transient, that portion shall be specifically called out and identified for the transient in any and all communications from the business owner as the “HTID assessment” as specified in the management plan. (Ord. 1218 § 4, 2022.)
3.34.080 Collections.
The City will be responsible for collecting the assessment on a monthly basis (including any delinquencies, penalties and interest as set forth in the management plan) from each assessed business located in the boundaries of the HTID. The City shall take all reasonable efforts to collect the assessments from each assessed lodging business. (Ord. 1218 § 4, 2022.)
3.34.090 Owners’ association.
The management plan identifies the Healdsburg Chamber of Commerce as the owners’ association for the HTID. Pursuant to Streets and Highways Code Section 36651, the City has contracted with the Chamber of Commerce to administer the HTID. (Ord. 1218 § 4, 2022.)
3.34.100 Annual report.
The Healdsburg Chamber of Commerce, pursuant to Streets and Highways Code Section 36650, shall cause to be prepared a report for each fiscal year, except the first year, for which assessments are to be levied and collected to pay the costs of the improvement and activities described in the report, to be presented to the City Council. The first report shall be due after the first year of operation of the HTID. (Ord. 1218 § 4, 2022.)
3.34.110 Amendments to enabling legislation.
The HTID renewed pursuant to this chapter shall be subject to any amendments to the Property and Business Improvement District Law of 1994 (California Streets and Highways Code Section 36600 et seq.). (Ord. 1218 § 4, 2022.)