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HomeMy WebLinkAboutAttachment 1 - Management District PlanAttachment 1 National City Management District Plan NATIONAL CITY TOURISM MARKETING DISTRICT MANAGEMENT DISTRICT PLAN Formed pursuant to the Property and Business Improvement District Act of 1994 (Streets and Highways Code §36600 et seq.) Submitted to the National City Chamber of Commerce And National City Lodging Businesses August 22, 2011 by CIVITAS NATIONAL CITY TOURISM MARKETING DISTRICT MANAGEMENT DISTRICT PLAN TABLE OF CONTENTS I. INTRODUCTION AND OVERVIEW 2 II. WHY A TOURISM MARKETING DISTRICT FOR NATIONAL CITY? 3 III. WHAT IS A TOURISM MARKETING DISTRICT? 4 IV. NATIONAL CITY TMD BOUNDARY 5 V. SERVICE PLAN AND BUDGET 6 A. Assessment 6 B. Determination of Special Benefit 7 C. Time and Manner for Collecting Assessments 7 D. Service Plan Budget.Summary 7 VI. BID GOVERNANCE 10 A. Owners' Association 10 APPENDIX 1 — THE PROPERTY AND BUSINESS IMPROVEMENT DISTRICT LAW OF 1994 11 APPENDIX 2 — LODGING BUSINESSES TO BE ASSESSED WITHIN THE NCTMD 25 National City Tourism Marketing District Management District Plan Page 1 I. INTRODUCTION AND OVERVIEW Developed by National City Chamber of Commerce (the Chamber) and National City lodging businesses, the National City Tourism Marketing District (NCTMD) is a benefit assessment district proposed to help fund marketing and sales promotion efforts for National City lodging businesses. This approach has been used successfully in other destination areas throughout the country to improve tourism and drive additional room nights. Location: The proposed NCTMD includes all lodging businesses (hotels, motels, and inns) located within the boundaries of the city limits of the city of National City. Services: Marketing and sales promotions and safety and image enhancement initiatives to increase tourism and to market National City as a tourist, meeting and event destination. Budget: The total NCTMD annual budget for each year of its five year operation is anticipated to be approximately $175,000. Cost: The annual assessment rate is 2.5% of gross short term (stays less than 31 days) room rental revenue on lodging businesses. Based on the benefit received, assessments will not be collected on certain stays as described on page 6. Formation: TMD formation requires submittal of petitions from lodging businesses representing more than 50% of the total annual assessment followed by a City Council hearing and an opportunity for a written protest. The assessed lodging business owners will receive notice of the public hearing by mail. If there is a majority written protest, the TMD will not be formed. Duration: The proposed NCTMD will have a five year life. The NCTMD assessment will be implemented beginning January 1, 2012. Once per year beginning on the anniversary of the formation of the district there is a 30-day period in which owners paying more than 50% of the assessment may protest and terminate the district. National City Tourism Marketing District Management District Plan Page 2 II. WHY A TOURISM MARKETING DISTRICT FOR NATIONAL CITY? There are several reasons why now is the right time to form a TMD in National City; the most compelling reasons are as follows: 1. The Need to Increase Occupancy The formation of the NCTMD is a proactive effort to provide supplemental funding beyond that provided by the City. The funding will ensure that adequate financing exists for the investment required to increase occupancy in the lodging industry and be competitive in the conference segment of the tourism market. The investment will cover an expanded marketing and promotional budget needed to reach this market segment. 2. An Opportunity for Increasing City Tax Revenues As occupancy rates increase, so too will the City's TOT revenue. With stable public/private funding for tourism marketing efforts, annual occupancy rates should increase significantly as new marketing and sales promotion programs are implemented. Greater occupancy will also produce an increase in sales tax revenues from tourist spending. This represents a substantial return to the City. The formation of the NCTMD in partnership with the Chamber creates a stable funding source tied directly to tourism promotion. 3. Stable Funding for Tourism Promotion The NCTMD will provide a stable source of funding for consistent tourism promotion efforts. The NCTMD will provide funding for tourism promotion free of the political and economic circumstances that can reduce or eliminate government funding for tourism promotion. National City Tourism Marketing District Management District Plan Page 3 III. WHAT IS A TOURISM MARKETING DISTRICT? Tourism Marketing Districts (TMDs) utilize the efficiencies of private sector operation in the market -based promotion of tourism districts. TMDs allow lodging and tourism -related business owners to organize their efforts to increase tourism. Tourism -related business owners within the district fund a TMD, and those funds are used to provide services that the businesses desire and that benefit the lodging businesses within the District. Tourism Marketing District services may include, but are not limited to: ➢ Marketing of the Destination ➢ Tourism Promotion Activities ➢ Sales Lead Generation In California, Tourism Marketing Districts are formed pursuant to the Property and Business Improvement District Law of 1994 (PBID Law). This law allows for the creation of a special benefit assessment district 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 district. There are many benefits to Tourism Marketing Districts: ➢ Funds cannot be diverted for other government programs; ➢ Tourism Marketing Districts are customized to fit the needs of each tourism district; ➢ They allow for a wide range of services, including those listed above; ➢ Tourism Marketing Districts are designed, created and governed by those who will pay the assessment; ➢ They provide a stable funding source for tourism promotion. The Property and Business Improvement District Law of 1994 is provided in Appendix 1. National City Tourism Marketing District Management District Plan Page 4 IV. NATIONAL CITY TMD BOUNDARY The NCTMD will include all lodging businesses, existing and in the future, available for public occupancy within the boundaries of the city limits of the city of National City. The boundary currently includes twelve lodging businesses. Please see the map below. A complete listing of lodging businesses within the proposed NCTMD can be found on Appendix 2 of this Plan. N National City Tourism Marketing District C IV ITAS \ WJ.CIVITASADVISCRS_COM National City Tourism Marketing District Management District Plan Page 5 V. SERVICE PLAN AND BUDGET A. Assessment The NCTMD annual assessment rate is 2.5% of gross short term (stays less than 31 days) room rental revenue for lodging businesses. Based on the benefit received, assessments will not be collected on the following stays: 1. Stays when hotel rents are directly paid by the United States government or its agencies or instrumentalities, or by a transient while he or she is on official business as an employee of the United States government or a federal agency or instrumentality. This does not exempt a stay by a transient who is employed by a business entity that is under contract to a federal entity from payment of the assessment for a stay by that transient even though the payment is later to be reimbursed by the federal entity. 2. Stays directly paid by the State of California or a state agency. This does not exempt a stay by a transient who is employed by the state from payment of the assessment for a room rented by that transient even though the payment is later to be reimbursed to the transient by the state. 3. When the stay is, by treaty or federal or state law, exempt from payment of the assessment. 4. Stays more than thirty (30) consecutive days. 5. Stays pursuant to contracts executed prior to January 1, 2012. The term "gross revenue" as used herein means the consideration charged, whether or not received, for the occupancy of space in a hotel valued in money, whether to be received in money, goods, labor or otherwise, including all receipts, cash, credits and property and services of any kind or nature, without any deduction therefrom whatsoever. Gross revenue shall not include any federal, state or local taxes collected, including but not limited to transient occupancy taxes. Bonds shall not be issued. The amount of assessment, if passed on to each transient, shall be disclosed in advance, and each transient shall receive a receipt for payment from the business. B. Delinquency, Penalties and Interest 1. Any business which fails to remit any assessment within the time required shall pay a penalty of ten percent of the amount of the assessment in addition to the amount of the assessment. 2. Any business which fails to remit any delinquent assessment on or before a period of thirty days following the date on which the assessment first became delinquent shall pay a second delinquency penalty of ten percent of the amount of the assessment in addition to the amount of the assessment and the ten percent penalty first imposed. 3. If it is determined by the City that the nonpayment of any assessment is due to fraud, a penalty of twenty-five percent of the amount of the assessment shall be added thereto in addition to the penalties stated in subsections 1 and 2 above. 4. In addition to the penalties imposed, any business which fails to remit any assessment shall pay interest at the rate of one and one-half percent per month or fraction thereof National City Tourism Marketing District Management District Plan Page 6 on the amount of the assessment, exclusive of penalties, from the date on which the assessment first became delinquent until paid. B. Determination of Special and Specific Benefit State law requires that assessment funds be expended on a special and specific benefit conferred directly to the payors that is not provided to those not charged, and which does not exceed the reasonable cost to the City of conferring the benefit. The specific benefit the district will provide to assessed lodging businesses, and will not provide to non - assessed lodging businesses, is room night sales. The programs and services provided with the district funds will be designed specifically to drive room night sales at assessed lodging businesses. Only assessed lodging businesses will be featured in marketing materials, receive sales leads generated from district -funded activities, be featured in advertising campaigns, and benefit from other district -funded services. Non -assessed lodging businesses will not receive these nor any other district -funded services. The services provided herein are intended to increase room night sales for lodging businesses. It is appropriate that the assessment be based on room night revenue, which varies proportionally between businesses and is an appropriate measure of benefit. C. Time and Manner for Collecting Assessments The NCTMD assessment will be implemented beginning January 1, 2012 and will continue for five years. The City will be responsible for collecting the assessment on a monthly basis (including any delinquencies, penalties and interest) from each lodging business located in the boundaries of the NCTMD. The City shall take all reasonable efforts to collect the assessments from each lodging business. The City shall forward the assessments to the Chamber which will have the responsibility of managing TMD programs as provided in this Management District Plan. D. Service Plan Budget Summary A summary of the annual service plan budget for the NCTMD is provided on the following pages. The total five year improvement and service plan budget is projected at approximately $175,000 annually, or $875,000 through 2016. A service plan has been developed to deliver services throughout the District. Annual Budget Years One through Five 84% $147,000 , 10% $17,500 1% $1,750.. 5% $8,750 100% $175,000. National City Tourism Marketing District Management District Plan Page 7 Sales, Marketing, Safety and Image A sales and marketing program will promote National City as an overnight tourist and meeting destination. The sales and marketing program will have a central theme of promoting National City as a desirable place to visit overnight. The safety and image initiatives will be designed to increase safety at lodging businesses and enhance the image of the lodging businesses as safe places to visit. These programs may include: • Internet marketing efforts to increase awareness and optimize internet presence; • Print ads in magazines and newspapers targeted at potential visitors; • Radio ads targeted at potential visitors; • Attendance of trade shows; • Sales blitzes; • Familiarization tours; • Preparation and production of collateral promotional materials such as brochures, flyers and maps; • Attendance of professional industry conferences and affiliation events; • Lead generation activities designed to attract tourists and group events to National City; • Director of Sales and General Manager meetings to plan and coordinate tourism promotion efforts; • Education of hospitality staff on service and safety (related to alcohol and food) designed to create a visitor experience that will bring repeat visits; • Education of lodging business management and the owners' association on marketing strategies best suited to meet National City's needs; • Coordination with police and other public agencies to address crime and code violations at lodging businesses; • Participation in a business watch program to improve safety at lodging businesses; and • Image enhancement initiatives to promote National City lodging businesses as safe places to stay. Administration and Operations The administrative and operations portion of the budget shall be utilized for staffing costs, office costs, insurance, and other general administrative costs. City Administration Fee The City shall retain 1% of the assessment collected to cover its costs of collection and administration. Contingency/Renewal A prudent portion of the budget will be set aside in a contingency fund, to be used for unforeseeable costs in carrying out the sales and marketing programs. If at the expiration of the district there are contingency funds remaining, and business owners wish to renew the district, the remaining contingency funds may be used for renewal costs. National City Tourism Marketing District Management District Plan Page 8 E. Adjustments Although actual revenues will fluctuate due to market conditions, the proportional allocations of the budget shall remain the same. However, the Chamber board shall have the authority to adjust budget allocations between the categories by no more than fifteen percent (15%) per year. G. Termination If there are funds remaining at the end of the District term and lodging businesses choose to renew, these remaining funds shall be transferred to the renewed District. If there are funds remaining at the end of the District and lodging businesses choose not to renew, any remaining funds will be spent consistent with this Plan or returned to assessed businesses in equal proportions to the assessment paid by each business pursuant to Street and Highways Code §36671. National City Tourism Marketing District Management District Plan Page 9 VI. BID GOVERNANCE A. Owners' Association The City Council, through adoption of this Management District Plan, has the right, pursuant to Streets and Highways Code §36651, to identify the body that shall implement the proposed program, which shall be the owners' association of the NCTMD as defined in Streets and Highways Code §36614.5. The Chamber will serve as the Owner's Association for the NCTMD. The Chamber will create a tourism improvement district committee, which shall include the executive committee and be composed primarily of representatives of assessed lodging businesses, to manage the TID funds and programs. B. Brown Act and California Public Records Act Compliance The Owner's Association is subject to government regulations relating to transparency, namely the Ralph M. Brown Act and the California Public Records Act, designed to promote public accountability. The Owners' Association of a TMD is considered a legislative body under the Ralph M. Brown Act (Government Code §54950 et seq.). Thus, meetings of the Chamber board must be held in compliance with the public notice and other requirements of the Brown Act. The Owner's Association is also subject to the record keeping requirements of the California Public Records Act. C. Annual Report The Chamber board shall present an annual report at the end of each year of operation to the City Council pursuant to Streets and Highways Code 36650. National City Tourism Marketing District Management District Plan Page 10 APPENDIX 1— THE PROPERTY AND BUSINESS IMPROVEMENT DISTRICT LAW OF 1994 PROPERTY AND BUSINESS IMPROVEMENT DISTRICT LAW OF 1994 STREETS AND HIGHWAYS CODE Division 18. Parking *** THIS DOCUMENT IS CURRENT THROUGH 2009-2010 EXTRAORDINARY SESSIONS 1-5, *** AND 7, AND URGENCY LEGISLATION THROUGH CH 4 OF THE 2010 REGULAR SESSION § 36600. Citation of part This part shall be known and may be cited as the "Property and Business Improvement District Law of 1994." § 36601. Legislative findings and declarations The Legislature finds and declares all of the following: (a) Businesses located and operating within the business districts of this state's communities are economically disadvantaged, are underutilized, and are unable to attract customers due to inadequate facilities, services, and activities in the business districts. (b) It is in the public interest to promote the economic revitalization and physical maintenance of the business districts of its cities in order to create jobs, attract new businesses, and prevent the erosion of the business districts. (c) It is of particular local benefit to allow cities to fund business related improvements, maintenance, and activities through the levy of assessments upon the businesses or real property that benefits from those improvements. (d) Assessments levied for the purpose of providing improvements and promoting activities that benefit real property or businesses are not taxes for the general benefit of a city, but are assessments for the improvements and activities which confer special benefits upon the real property or businesses for which the improvements and activities are provided. § 36602. Purpose of part The purpose of this part is to supplement previously enacted provisions of law that authorize cities to levy assessments within a business improvement area. This part does not affect or limit any other provisions of law authorizing or providing for the furnishing of improvements or activities or the raising of revenue for these purposes. National City Tourism Marketing District Management District Plan Page 11 § 36603. Preemption of authority or charter city to adopt ordinances levying assessments Nothing in this part is intended to preempt the authority of a charter city to adopt ordinances providing for a different method of levying assessments for similar or additional purposes from those set forth in this part. A property and business improvement district created pursuant to this part is expressly exempt from the provisions of the Special Assessment Investigation, Limitation and Majority Protest Act of 1931 (Division 4 (commencing with Section 2800)). § 36603.5. Part prevails over conflicting provisions Any provision in this part that conflicts with any other provision of law shall prevail over the other provision of law. § 36604. Severability This part is intended to be construed liberally and, if any provision is held invalid, the remaining provisions shall remain in full force and effect. Assessments levied under this part are not special taxes. § 36605. [Section repealed 2001.] § 36606. "Assessment" "Assessment" means a levy for the purpose of acquiring, constructing, installing, or maintaining improvements and promoting activities which will benefit the properties or businesses located within a property and business improvement district. § 36607. "Business" "Business" means all types of businesses and includes financial institutions and professions. § 36608. "City" "City" means a city, county, city and county, or an agency or entity created pursuant to Article 1 (commencing with Section 6500) of Chapter 5 of Division 7 of Title 1 of the Government Code, the public member agencies of which includes only cities, counties, or a city and county. National City Tourism Marketing District Management District Plan Page 12 § 36609. "City council" "City council" means the city council of a city or the board of supervisors of a county, or the agency, commission, or board created pursuant to a joint powers agreement and which is a city within the meaning of this part. § 36610. 'Improvement" "Improvement" means the acquisition, construction, installation, or maintenance of any tangible property with an estimated useful life of five years or more including, but not limited to, the following: (a) Parking facilities. (b) Benches, booths, kiosks, display cases, pedestrian shelters and signs. (c) Trash receptacles and public restrooms. (d) Lighting and heating facilities. (e) Decorations. (f) Parks. (g) Fountains. (h) Planting areas. (i) Closing, opening, widening, or narrowing of existing streets. (j) Facilities or equipment, or both, to enhance security of persons and property within the area. (k) Ramps, sidewalks, plazas, and pedestrian malls. (1) Rehabilitation or removal of existing structures. § 36611. "Property and business improvement district"; "District" "Property and business improvement district," or "district," means a property and business improvement district established pursuant to this part. § 36612. "Property" "Property" means real property situated within a district. § 36613. "Activities" "Activities" means, but is not limited to, all of the following: (a) Promotion of public events which benefit businesses or real property in the district. National City Tourism Marketing District Management District Plan Page 13 (b) Furnishing of music in any public place within the district. (c) Promotion of tourism within the district. (d) Marketing and economic development, including retail retention and recruitment. (e) Providing security, sanitation, graffiti removal, street and sidewalk cleaning, and other municipal services supplemental to those normally provided by the municipality. (f) Activities which benefit businesses and real property located in the district. § 36614. "Management district plan"; "Plan" "Management district plan" or "plan" means a proposal as defined in Section 36622. § 36614.5. "Owners' association" "Owners' association" means a private nonprofit entity that is under contract with a city to administer or implement activities and improvements specified in the management district plan. An owners' association may be an existing nonprofit entity or a newly formed nonprofit entity. An owners' association is a private entity and may not be considered a public entity for any purpose, nor may its board members or staff be considered to be public officials for any purpose. Notwithstanding this section, an owners' association shall comply with the Ralph M. Brown Act (Chapter 9 (commencing with Section 54950) of Part 1 of Division 2 of Title 5 of the Government Code), at all times when matters within the subject matter of the district are heard, discussed, or deliberated, and with the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1 of the Government Code), for all documents relating to activities of the district. § 36615. "Property owner"; "Owner" "Property owner" or "owner" means any person shown as the owner of land on the last equalized assessment roll or otherwise known to be the owner of land by the city council. The city council has no obligation to obtain other information as to the ownership of land, and its determination of ownership shall be final and conclusive for the purposes of this part. Wherever this subdivision requires the signature of the property owner, the signature of the authorized agent of the property owner shall be sufficient. § 36616. "Tenant" "Tenant" means an occupant pursuant to a lease of commercial space or a dwelling unit, other than an owner. National City Tourism Marketing District Management District Plan Page 14 § 36617. Alternate method of financing certain improvements and activities; Effect on other provisions This part provides an alternative method of financing certain improvements and activities. The provisions of this part shall not affect or limit any other provisions of law authorizing or providing for the furnishing of improvements or activities or the raising of revenue for these purposes. Every improvement area established pursuant to the Parking and Business Improvement Area Law of 1989 (Part 6 (commencing with Section 36500) of this division) is valid and effective and is unaffected by this part. § 36620. Establishment of property and business improvement district A property and business improvement district may be established as provided in this chapter. § 36620.5. Requirement of consent of city council A county may not form a district within the territorial jurisdiction of a city without the consent of the city council of that city. A city may not form a district within the unincorporated territory of a county without the consent of the board of supervisors of that county. A city may not form a district within the territorial jurisdiction of another city without the consent of the city council of the other city. § 36621. Initiation of proceedings; Petition of property or business owners in proposed district (a) Upon the submission of a written petition, signed by the property or business owners in the proposed district who will pay more than 50 percent of the assessments proposed to be levied, the city council may initiate proceedings to form a district by the adoption of a resolution expressing its intention to form a district. The amount of assessment attributable to property or a business owned by the same property or business owner that is in excess of 40 percent of the amount of all assessments proposed to be levied, shall not be included in determining whether the petition is signed by property or business owners who will pay more than 50 percent of the total amount of assessments proposed to be levied. (b) The petition of property or business owners required under subdivision (a) shall include a summary of the management district plan. That summary shall include all of the following: (1) A map showing the boundaries of the district. (2) Information specifying where the complete management district plan can be obtained. (3) Information specifying that the complete management district plan shall be furnished upon request. (c) The resolution of intention described in subdivision (a) shall contain all of the following: (1) A brief description of the proposed activities and improvements, the amount of the proposed assessment, a statement as to whether the assessment will be levied on property or National City Tourism Marketing District Management District Plan Page 15 businesses within the district, a statement as to whether bonds will be issued, and a description of the exterior boundaries of the proposed district. The descriptions and statements do not need to be detailed and shall be sufficient if they enable an owner to generally identify the nature and extent of the improvements and activities and the location and extent of the proposed district. (2) A time and place for a public hearing on the establishment of the property and business improvement district and the levy of assessments, which shall be consistent with the requirements of Section 36623. § 36622. Contents of management district plan The management district plan shall contain all of the following: (a) A map of the district in sufficient detail to locate each parcel of property and, if businesses are to be assessed, each business within the district. (b) The name of the proposed district. (c) A description of the boundaries of the district, including the boundaries of benefit zones, proposed for establishment or extension in a manner sufficient to identify the affected lands and businesses included. The boundaries of a proposed property assessment district shall not overlap with the boundaries of another existing property assessment district created pursuant to this part. This part does not prohibit the boundaries of a district created pursuant to this part to overlap with other assessment districts established pursuant to other provisions of law, including, but not limited to, the Parking and Business Improvement Area Law of 1989 (Part 6 (commencing with Section 36500)). This part does not prohibit the boundaries of a business assessment district created pursuant to this part to overlap with another business assessment district created pursuant to this part. This part does not prohibit the boundaries of a business assessment district created pursuant to this part to overlap with a property assessment district created pursuant to this part. (d) The improvements and activities proposed for each year of operation of the district and the maximum cost thereof. (e) The total annual amount proposed to be expended for improvements, maintenance and operations, and debt service in each year of operation of the district. (f) The proposed source or sources of financing, including the proposed method and basis of levying the assessment in sufficient detail to allow each property or business owner to calculate the amount of the assessment to be levied against his or her property or business. The plan also shall state whether bonds will be issued to finance improvements. (g) The time and manner of collecting the assessments. (h) The specific number of years in which assessments will be levied. In a new district, the maximum number of years shall be five. Upon renewal, a district shall have a term not to exceed 10 years. Notwithstanding these limitations, a district created pursuant to this part to finance capital improvements with bonds may levy assessments until the maximum maturity of the bonds. The management district plan may set forth specific increases in assessments for each year of operation of the district. (i) The proposed time for implementation and completion of the management district plan. (j) Any proposed rules and regulations to be applicable to the district. National City Tourism Marketing District Management District Plan Page 16 (k) A list of the properties or businesses to be assessed, including the assessor's parcel numbers for properties to be assessed, and a statement of the method or methods by which the expenses of a district will be imposed upon benefited real property or businesses, in proportion to the benefit received by the property or business, to defray the cost thereof, including operation and maintenance. The plan may provide that all or any class or category of real property which is exempt by law from real property taxation may nevertheless be included within the boundaries of the district but shall not be subject to assessment on real property. (1) Any other item or matter required to be incorporated therein by the city council. § 36623. Procedure to levy assessment (a) If a city council proposes to levy a new or increased property assessment, the notice and protest and hearing procedure shall comply with Section 53753 of the Government Code. (b) If a city council proposes to levy a new or increased business assessment, the notice and protest and hearing procedure shall comply with Section 54954.6 of the Government Code, except that notice shall be mailed to the owners of the businesses proposed to be assessed. A protest may be made orally or in writing by any interested person. Every written protest shall be filed with the clerk at or before the time fixed for the public hearing. The city council may waive any irregularity in the form or content of any written protest. A written protest may be withdrawn in writing at any time before the conclusion of the public hearing. Each written protest shall contain a description of the business in which the person subscribing the protest is interested sufficient to identify the business and, if a person subscribing is not shown on the official records of the city as the owner of the business, the protest shall contain or be accompanied by written evidence that the person subscribing is the owner of the business. A written protest which does not comply with this section shall not be counted in determining a majority protest. If written protests are received from the owners of businesses in the proposed district which will pay 50 percent or more of the assessments proposed to be levied and protests are not withdrawn so as to reduce the protests to less than 50 percent, no further proceedings to levy the proposed assessment against such businesses, as contained in the resolution of intention, shall be taken for a period of one year from the date of the finding of a majority protest by the city council. § 36624. Changes to proposed assessments At the conclusion of the public hearing to establish the district, the city council 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. At the public hearing, the city council may only make changes in, to, or from the boundaries of the proposed property and business improvement district that will exclude territory that will not benefit from the proposed improvements or activities. Any modifications, revisions, reductions, or changes to the proposed assessment district shall be reflected in the notice and map recorded pursuant to Section 36627. National City Tourism Marketing District Management District Plan Page 17 § 36625. Resolution of formation (a) If the city council, following the public hearing, decides to establish the proposed property and business improvement district, the city council shall adopt a resolution of formation that shall contain all of the following: (1) A brief description of the proposed activities and improvements, the amount of the proposed assessment, a statement as to whether the assessment will be levied on property or businesses within the district, a statement about whether bonds will be issued, and a description of the exterior boundaries of the proposed district. The descriptions and statements do not need to be detailed and shall be sufficient if they enable an owner to generally identify the nature and extent of the improvements and activities and the location and extent of the proposed district. (2) The number, date of adoption, and title of the resolution of intention. (3) The time and place where the public hearing was held concerning the establishment of the district. (4) A determination regarding any protests received. The city shall not establish the district or levy assessments if a majority protest was received. (5) A statement that the properties or businesses in the district established by the resolution shall be subject to any amendments to this part. (6) A statement that the improvements and activities to be provided in the district will be funded by the levy of the assessments. The revenue from the levy of assessments within a district shall not be used to provide improvements or activities outside the district or for any purpose other than the purposes specified in the resolution of intention, as modified by the city council at the hearing concerning establishment of the district. (7) A finding that the property or businesses within the area of the property and business improvement district will be benefited by the improvements and activities funded by the assessments proposed to be levied. (b) The adoption of the resolution of formation and recordation of the notice and map pursuant to Section 36627 shall constitute the levy of an assessment in each of the fiscal years referred to in the management district plan. § 36626. Resolution establishing district If the city council, following the public hearing, desires to establish the proposed property and business improvement district, and the city council has not made changes pursuant to Section 36624, or has made changes that do not substantially change the proposed assessment, the city council shall adopt a resolution establishing the district. The resolution shall contain all of the information specified in paragraphs (1) to (8), inclusive, of subdivision (b) of Section 36625, but need not contain information about the preliminary resolution if none has been adopted. National City Tourism Marketing District Management District Plan Page 18 § 36626.5. [Section repealed 1999.J § 36626.6. [Section repealed 1999.1 § 36626.7. [Section repealed 1999.1 § 36627. Notice and assessment diagram Following adoption of the resolution establishing the district pursuant to Section 36625 or 36626, the clerk of the city shall record a notice and an assessment diagram pursuant to Section 3114. If the assessment is levied on businesses, the text of the recorded notice shall be modified to reflect that the assessment will be levied on businesses, or specified categories of businesses, within the area of the district. No other provision of Division 4.5 (commencing with Section 3100) applies to an assessment district created pursuant to this part. § 36628. Establishment of separate benefit zones within district; Categories of businesses The city council may establish one or more separate benefit zones within the district based upon the degree of benefit derived from the improvements or activities to be provided within the benefit zone and may impose a different assessment within each benefit zone. If the assessment is to be levied on businesses, the city council may also define categories of businesses based upon the degree of benefit that each will derive from the improvements or activities to be provided within the district and may impose a different assessment or rate of assessment on each category of business, or on each category of business within each zone. § 36628.5. Assessments on businesses or property owners The city council may levy assessments on businesses or on property owners, or a combination of the two, pursuant to this part. The city council shall structure the assessments in whatever manner it determines corresponds with the distribution of benefits from the proposed improvements and activities. § 36629. Provisions and procedures applicable to benefit zones and business categories All provisions of this part applicable to the establishment, modification, or disestablishment of a property and business improvement district apply to the establishment, modification, or disestablishment of benefit zones or categories of business. The city council shall, to establish, modify, or disestablish a benefit zone or category of business, follow the procedure to establish, modify, or disestablish a parking and business improvement area. National City Tourism Marketing District Management District Plan Page 19 § 36630. Expiration of district; Creation of new district If a property and business improvement district expires due to the time limit set pursuant to subdivision (h) of Section 36622, a new management district plan may be created and a new district established pursuant to this part. § 36631. Time and manner of collection of assessments; Delinquent payments The collection of the assessments levied pursuant to this part shall be made at the time and in the manner set forth by the city council in the resolution establishing the management district plan described in Section 36622. Assessments levied on real property may be collected at the same time and in the same manner as for the ad valorem property tax, and may provide for the same lien priority and penalties for delinquent payment. All delinquent payments for assessments levied pursuant to this part shall be charged interest and penalties. § 36632. Assessments to be based on estimated benefit; Classification of real property and businesses; Exclusion of residential and agricultural property (a) The assessments levied on real property pursuant to this part shall be levied on the basis of the estimated benefit to the real property within the property and business improvement district. The city council may classify properties for purposes of determining the benefit to property of the improvements and activities provided pursuant to this part. (b) Assessments levied on businesses pursuant to this part shall be levied on the basis of the estimated benefit to the businesses within the property and business improvement district. The city council may classify businesses for purposes of determining the benefit to the businesses of the improvements and activities provided pursuant to this part. (c) Properties zoned solely for residential use, or that are zoned for agricultural use, are conclusively presumed not to benefit from the improvements and service funded through these assessments, and shall not be subject to any assessment pursuant to this part. § 36633. Time for contesting validity of assessment The validity of an assessment levied under this part shall not be contested in any action or proceeding unless the action or proceeding is commenced within 30 days after the resolution levying the assessment is adopted pursuant to Section 36626. Any appeal from a final judgment in an action or proceeding shall be perfected within 30 days after the entry of judgment. § 36634. Service contracts authorized to establish levels of city services The city council may execute baseline service contracts that would establish levels of city services that would continue after a property and business improvement district has been formed. National City Tourism Marketing District Management District Plan Page 20 § 36635. Request to modify management district plan The owners' association may, at any time, request that the city council modify the management district plan. Any modification of the management district plan shall be made pursuant to this chapter. § 36636. Modification of plan by resolution after public hearing; Adoption of resolution of intention; Modification of improvements and activities by adoption of resolution after public hearing (a) Upon the written request of the owners' association, the city council may modify the management district plan after conducting one public hearing on the proposed modifications. The city council may modify the improvements and activities to be funded with the revenue derived from the levy of the assessments by adopting a resolution determining to make the modifications after holding a public hearing on the proposed modifications. If the modification includes the levy of a new or increased assessment, the city council shall comply with Section 36623 . Notice of all other public meetings and public hearings pursuant to this section shall comply with both of the following: (1) The resolution of intention shall be published in a newspaper of general circulation in the city once at least seven days before the public meeting. (2) A complete copy of the resolution of intention shall be mailed by first class mail, at least 10 days before the public meeting, to each business owner or property owner affected by the proposed modification. (b) The city council shall adopt a resolution of intention which states the proposed modification prior to the public hearing required by this section. The public hearing shall be held not more than 90 days after the adoption of the resolution of intention. § 36637. Reflection of modification in notices recorded and maps Any subsequent modification of the resolution shall be reflected in subsequent notices and maps recorded pursuant to Division 4.5 (commencing with Section 3100), in a manner consistent with the provisions of Section 36627. § 36640. Bonds authorized; Procedure; Restriction on reduction or termination of assessments (a) The city council may, by resolution, determine and declare that bonds shall be issued to finance the estimated cost of some or all of the proposed improvements described in the resolution of formation adopted pursuant to Section 36625, if the resolution of formation adopted pursuant to that section provides for the issuance of bonds, under the Improvement Bond Act of 1915 (Division 10 (commencing with Section 8500)) or in conjunction with Marks -Roos Local Bond Pooling Act of 1985 (Article 4 (commencing with Section 6584) of Chapter 5 of Division 7 National City Tourism Marketing District Management District Plan Page 21 of Title 1 of the Government Code). Either act, as the case may be, shall govern the proceedings relating to the issuance of bonds, although proceedings under the Bond Act of 1915 may be modified by the city council as necessary to accommodate assessments levied upon business pursuant to this part. (b) The resolution adopted pursuant to subdivision (a) shall generally describe the proposed improvements specified in the resolution of formation adopted pursuant to Section 36625, set forth the estimated cost of those improvements, specify the number of annual installments and the fiscal years during which they are to be collected. The amount of debt service to retire the bonds shall not exceed the amount of revenue estimated to be raised from assessments over 30 years. (c) Notwithstanding any other provision of this part, assessments levied to pay the principal and interest on any bond issued pursuant to this section shall not be reduced or terminated if doing so would interfere with the timely retirement of the debt. § 36641. [Section repealed 2001.1 § 36642. [Section repealed 2001.1 § 36643. [Section repealed 2001.1 § 36650. Report by owners' association; Approval or modification by city council (a) The owners' association 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 improvements and activities described in the report. The owners' association's first report shall be due after the first year of operation of the district. The report may propose changes, including, but not limited to, the boundaries of the property and business improvement district or any benefit zones within the district, the basis and method of levying the assessments, and any changes in the classification of property, including any categories of business, if a classification is used. (b) The report shall be filed with the clerk and shall refer to the property and business improvement district by name, specify the fiscal year to which the report applies, and, with respect to that fiscal year, shall contain all of the following information: (1) Any proposed changes in the boundaries of the property and business improvement district or in any benefit zones or classification of property or businesses within the district. (2) The improvements and activities to be provided for that fiscal year. (3) An estimate of the cost of providing the improvements and the activities for that fiscal year. (4) The method and basis of levying the assessment in sufficient detail to allow each real property or business owner, as appropriate, to estimate the amount of the assessment to be levied against his or her property or business for that fiscal year. (5) The amount of any surplus or deficit revenues to be carried over from a previous fiscal year. National City Tourism Marketing District Management District Plan Page 22 (6) The amount of any contributions to be made from sources other than assessments levied pursuant to this part. (c) The city council may approve the report as filed bythe owners' association or may modify any particular contained in the report and approve it as modified. Any modification shall be made pursuant to Sections 36635 and 36636. The city council shall not approve a change in the basis and method of levying assessments that would impair an authorized or executed contract to be paid from the revenues derived from the levy of assessments, including any commitment to pay principal and interest on any bonds issued on behalf of the district. § 36651. Designation of owners' association to provide improvements and activities The management district plan may, but is not required to, state that an owners' association will provide the improvements or activities described in the management district plan. If the management district plan designates an owners' association, the city shall contract with the designated nonprofit corporation to provide services. § 36660. Renewal of district; Transfer or refund of remaining revenues; District term limit (a) Any district previously established whose term has expired, may be renewed by following the procedures for establishment as provided in this chapter. (b) Upon renewal, any remaining revenues derived from the levy of assessments, or any revenues derived from the sale of assets acquired with the revenues, shall be transferred to the renewed district. If the renewed district includes additional parcels or businesses not included in the prior district, the remaining revenues shall be spent to benefit only the parcels or businesses in the prior district. If the renewed district does not include parcels or businesses included in the prior district, the remaining revenues attributable to these parcels shall be refunded to the owners of these parcels or businesses. (c) Upon renewal, a district shall have a term not to exceed 10 years, or, if the district is authorized to issue bonds, until the maximum maturity of those bonds. There is no requirement that the boundaries, assessments, improvements, or activities of a renewed district be the same as the original or prior district. § 36670. Circumstances permitting disestablishment of district; Procedure (a) Any district established or extended pursuant to the provisions of this part, where there is no indebtedness, outstanding and unpaid, incurred to accomplish any of the purposes of the district, may be disestablished by resolution by the city council in either of the following circumstances: (1) If the city council finds there has been misappropriation of funds, malfeasance, or a violation of law in connection with the management of the district, it shall notice a hearing on disestablishment. (2) During the operation of the district, there shall be a 30-day period each year in which assessees may request disestablishment of the district. The first such period shall begin one year National City Tourism Marketing District Management District Plan Page 23 after the date of establishment of the district and shall continue for 30 days. The next such 30- day period shall begin two years after the date of the establishment of the district. Each successive year of operation of the district shall have such a 30-day period. Upon the written petition of the owners of real property or of businesses in the area who pay 50 percent or more of the assessments levied, the city council shall pass a resolution of intention to disestablish the district. The city council shall notice a hearing on disestablishment. (b) The city council shall adopt a resolution of intention to disestablish the district prior to the public hearing required by this section. The resolution shall state the reason for the disestablishment, shall state the time and place of the public hearing, and shall contain a proposal to dispose of any assets acquired with the revenues of the assessments levied within the property and business improvement district. The notice of the hearing on disestablishment required by this section shall be given by mail to the property owner of each parcel or to the owner of each business subject to assessment in the district, as appropriate. The city shall conduct the public hearing not less than 30 days after mailing the notice to the property or business owners. The public hearing shall be held not more than 60 days after the adoption of the resolution of intention. § 36671. Refund of remaining revenues upon disestablishment of district; Calculation of refund; Use of outstanding revenue collected after disestablishment of district (a) Upon the disestablishment of a district, any remaining revenues, after all outstanding debts are paid, derived from the levy of assessments, or derived from the sale of assets acquired with the revenues, or from bond reserve or construction funds, shall be refunded to the owners of the property or businesses then located and operating within the district in which assessments were levied by applying the same method and basis that was used to calculate the assessments levied in the fiscal year in which the district is disestablished. All outstanding assessment revenue collected after disestablishment shall be spent on improvements and activities specified in the management district plan. (b) If the disestablishment occurs before an assessment is levied for the fiscal year, the method and basis that was used to calculate the assessments levied in the immediate prior fiscal year shall be used to calculate the amount of any refund. National City Tourism Marketing District Management District Plan Page 24 APPENDIX 2 — LODGING BUSINESSES TO BE ASSESSED WITHIN THE NCTMD Business Name Best Western Marina Gateway Clarion South Bay Comfort Inn Grand Plaza Inn Howard Johnson Express National City Motel Paradise Motel Rodeway Inn Stardust Inn Super 8 Motel Sweetwater Inn Carlil Auto Court Street Address 800 Bay Marina Drive 700 National City Blvd 1645 E Plaza Blvd 1125 E Plaza Blvd 521 Roosevelt Avenue 510 National City Blvd 1470 National City Blvd 607 Roosevelt Avenue 1700 E Plaza Blvd 425 Roosevelt Ave 2435 Sweetwater Rd 1414 Roosevelt Ave Room Count 173 180 91 39 64 24 26 40 34 61 37 National City Tourism Marketing District Management District Plan Page 25