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HomeMy WebLinkAboutResolutions - No. 2020-172RESOLUTION NO. 2020-172 A RESOLUTION OF THE LODI CITY COUNCIL DECLARING RESULTS OF THE MAJORITY PROTEST PROCEEDINGS AND RENEWING THE LODI TOURISM BUSINESS IMPROVEMENT DISTRICT (LTBID) WHEREAS, the Property and Business Improvement District Law of 1994 (Streets and Highways Code §36600 et. seq.) authorizes the City of Lodi (City) to renew business improvement districts upon petition by a weighted majority of the business owners located within the boundaries of the district; and WHEREAS, lodging business owners who will pay more than fifty percent (50%) of the proposed assessment, as weighted according to the amount of the assessment to be paid by the petitioner, within the boundaries of the LTBID have petitioned the City Council to renew the LTBID; and WHEREAS, the renewed LTBID includes lodging businesses in the City of Lodi and a portion of the unincorporated area of San Joaquin County referred to as County Service Area #31, also known as "Flag City"; and WHEREAS, consent to include lodging businesses has been received from San Joaquin County; and WHEREAS, included with the petitions was a Management District Plan (Plan) summary that describes the proposed assessment to be levied on lodging businesses within the LTBID to pay for sales, marketing, and communications and visitor service enhancements programs to market assessed lodging businesses in Lodi as tourist, meeting, and event destinations, as described in the Plan; and WHEREAS, the assessed lodging businesses within the LTBID will receive a specific benefit from the activities and improvements set forth in the Plan; and WHEREAS, on June 17, 2020 at 7:00 p.m. at 305 West Pine Street, Lodi, the City Council adopted a Resolution of Intention, Resolution No. 2020-137; and WHEREAS, the public meeting and public hearing to consider the renewal of the LTBID have been properly noticed in accordance with Streets and Highways Code §36623; and WHEREAS, on July 15, 2020 at 7:00 p.m. at 305 West Pine Street, Lodi, the City Council held a public meeting regarding the renewal of the LTBID, and the City Council heard and received objections and protests, if any, to the renewal of the LTBID and the levy of the proposed assessment; and WHEREAS, on August 5, 2020 at 7:00 p.m. at 305 West Pine Street, Lodi, CA the City Council held a public hearing regarding the renewal of the LTBID, and the City Council heard and received all objections and protests, if any, to the renewal of the LTBID and the levy of the proposed assessment; and WHEREAS, the City Clerk has determined that there was no majority protest. A majority protest is defined as written protests received from owners of businesses in the renewed LTBID which would pay fifty percent (50%) or more of the assessments proposed to be levied. Protests are weighted based on the assessment proposed to be levied on each lodging business; and WHEREAS, the City of Lodi bears the burden of proving by a preponderance of the evidence that an assessment imposed for a specific benefit or specific government service is not a tax, that the amount is no more than necessary to cover the costs to the City of Lodi in providing the specific benefit or specific government service, and that the manner in which those costs are allocated to a payer bear a fair or reasonable relationship to the specific benefits or specific government services received by the payer. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL THAT: 1. The recitals set forth herein are adopted by the City Council as findings and they are true and correct. 2. The LTBID is hereby renewed for a 10 -year term, beginning October 1, 2020 through September 30, 2030. 3. The Plan dated April 21, 2020 is hereby adopted and approved. 4. The activities to be provided to benefit businesses in the LTBID will be funded by the levy of the assessment. The revenue from the assessment levy shall not be used: to provide activities that directly benefit businesses outside the LTBID; to provide activities or improvements outside the LTBID; or for any purpose other than the purposes specified in this Resolution, the Resolution of Intention, and the Plan. Notwithstanding the foregoing, improvements and activities that must be provided outside the LTBID boundaries to create a specific benefit to the assessed businesses may be provided but shall be limited to marketing or signage pointing to the LTBID. 5. The City Council finds as follows: a) The activities funded by the assessment will provide a specific benefit to assessed businesses within the LTBID that is not provided to those not paying the assessment. b) The assessment is a charge imposed for a specific benefit conferred or privilege granted directly to the payer that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of conferring the benefit or granting the privilege. C) The assessment is a charge imposed for a specific government service or product provided directly to the payer that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of providing the service or product. d) Assessments imposed pursuant to the LTBID 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 "LTBID Assessment" or "Tourism Assessment" as specified in the Plan. 6. The assessments levied for the LTBID shall be applied towards sales, marketing, and communications and visitor service enhancements programs to market assessed lodging businesses in Lodi as tourist, meeting, and event destinations, as set forth in the Plan. 7. Assessments levied on lodging businesses pursuant to this resolution 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. 8. The assessments for the entire LTBID will total approximately $550,000 in the first twelve (12) months. 9. Bonds will not be issued to fund the LTBID. 10. The LTBID shall include all lodging businesses located within the boundaries of the City of Lodi and a portion of the unincorporated area of San Joaquin County referred to as County Service Area #31, also known as "Flag City". A boundary map is attached hereto and incorporated herein by reference. 11. The assessments shall be used for the purposes set forth above and any funds remaining at the end of any year may be used in subsequent years in which the LTBID assessment is levied as long as they are used consistent with the requirements set forth herein. 12. The assessments to fund the activities and improvements for the LTBID will be collected by the City of Lodi from each lodging business located in the LTBID on a quarterly basis, and in accordance with Streets and Highways Code §36631. 13. The City Council, through adoption of this Resolution and the 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 LTBID as defined in Streets and Highways Code §36612. The City Council has determined that Visit Lodi! shall be the LTBID Owners' Association. 14. Visit Lodi!, pursuant to Streets and Highways Code §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. The first report shall be due after the first year of operation of the LTBID. 15. The LTBID established pursuant to this resolution will be subject to any amendments to the Property and Business Improvement District Law of 1994 (California Streets and Highways Code §36600 et. seq.). 16. The City Clerk, or his or her designee, is directed to take all necessary actions to complete the establishment of the LTBID and to levy the assessments. 17. This Resolution shall take effect immediately upon its adoption by the City Council. Dated: August 5, 2020 I hereby certify that Resolution No. 2020-172 was passed and adopted by the City Council of the City of Lodi in a regular meeting held August 5, 2020 by the following vote: AYES: COUNCIL MEMBERS — Chandler, Mounce, Nakanishi, and Mayor Kuehne NOES: COUNCIL MEMBERS — None ABSENT: COUNCIL MEMBERS — None ABSTAIN: COUNCIL MEMBERS — None J NNIF CUSMIR City Clerk 2020-172 EXHIBIT A District Boundaries