San Diego Municipal Code Div. 25 San Diego Tourism Marketing District

Procedural Ordinance (Added 5-30-2007 by O-19622 N.S.; effective 6-29-2007.)

The purpose and intent of this Division is:

(a) To allow for the establishment of a tourism marketing district to provide for
tourism development, including coordinated joint marketing and promotion of
San Diego businesses, in order to retain and expand the lodging industry which
is one of the top revenue generators for the San Diego economy and a key
employment sector.

(b) To create a mechanism to fund promotional activities for tourism development
through the levy of assessments upon the businesses to which the special and
specific benefit from those activities is conferred.

(c) To provide a method for the involvement of a nonprofit entity to participate in
the preparation and review of proposed tourism marketing district plans for
district activities.

(d) To provide a method for the City Council to authorize a nonprofit entity with
specific interest in the promotion of City tourism to implement and administer
district activities.

(e) To provide a mechanism with which a charge may be imposed for 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 costs to the City of San
Diego of conferring the benefit..
(“Purpose and Intent” added 5–30–2007 by O–19622 N.S.; effective 6-29-2007.)
(Amended 10-6-2011 by O-20096 N.S.; effective 11-5-2011.)

This division may be cited as the San Diego Tourism Marketing District Procedural Ordinance. (“Citation of Division” added 5–30–2007 by O–19622 N.S.; effective 6-29-2007.)

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This Division shall be liberally construed in order to effectuate its purposes. No error, irregularity, informality and no neglect or omission of any officer, in any procedure taken under this Division which does not directly affect the jurisdiction of the San Diego City Council to order the work shall void or invalidate such procedure for any assessment or the cost of the work done thereunder. (“Rules of Construction” added 5–30–2007 by O–19622 N.S.; effective 6-29-2007.) (Amended 10-6-2011 by O-20096 N.S.; effective 11-5-2011.)

For purposes of this division, defined terms appear in italics. The following definitions apply in this Division:

“Activities” means, but is not limited to, the promotion and marketing of assessed businesses to provide a special and specific benefit to assessed businesses within the district that is not provided to those not paying the assessment.

"Assessment" means a levy for the purpose of conducting activities which will provide a special and specific benefit to the assessed businesses located within a tourism marketing district is not provided to those not paying the assessment. Assessments levied under this Division are not special taxes.

"Business" means any and all types of hotels where a structure, or any portion of a structure, is held out to the public as being occupied, or designed for occupancy, by transients for dwelling, lodging or sleeping purposes.

“Business owner” means the owner, operator, or authorized representative of the business who is noted on City records as the responsible party for the remitting and reporting of Transient Occupancy Tax pursuant to San Diego Municipal Code section 35.0114.

"District management plan" or "plan" means a proposal as defined in sections

61.2507.

"Tourism marketing district," or "district," means an area established pursuant to this Division, within which businesses pay assessments to fund activities.

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"Tourism marketing district association" or “association” means a private nonprofit entity which represents, and whose membership includes only the assessed business owners or business owners’ representatives in a district and which participates in the preparation and review of proposed district management plans for district activities that provide a special and specific benefit to assessed businesses that is not provided to those that are not assessed. A tourism marketing district association may be an existing nonprofit entity or a newly formed nonprofit entity. In accordance with California Streets and Highways Code section 36614.5, the 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.

Transient has the same meaning as in San Diego Municipal Code section 35.0102. (“Definitions” added 5–30–2007 by O–19622 N.S.; effective 6-29-2007.) (Amended 12-18-2007 by O-19691; effective 1-17-2008.) (Amended 10-6-2011 by O-20096 N.S.; effective 11-5-2011.)

This Division provides an alternative method of financing certain activities. The provisions of this Division shall not affect or limit any other provisions of law authorizing or providing for activities or the raising of revenue for the benefit of businesses. (“Alternative Financing Method; No Limit on Other Provisions of Law” added 5–30–2007 by O–19622 N.S.; effective 6-29-2007.)

A tourism marketing district may be established as provided in this Division, in the following manner:

(a) Upon the submission of a written petition, signed by the business owners in the
proposed district who will pay more than 50 percent of the assessments
proposed to be levied, the City Council will initiate proceedings to establish a
district by the adoption of a resolution expressing its intention to establish a
district. Where the same business owner would be assessed an amount in
excess of 40 percent of the total amount of all assessments proposed to be
levied, that business owner’s share of the assessment over such 40 percent shall
not be included in determining whether the petition is signed by business
owners who will pay more than 50 percent of the total amount of assessments
proposed to be levied.

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(b) The petition of business owners required under subdivision (a) shall include a
summary of the district management plan. That summary shall include all of
the following:

(1) A map showing the boundaries of the district.

(2) Information specifying where the complete district management plan
can be obtained.

(3) Information specifying that the complete district management 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, the amount of the
proposed assessment, a statement that bonds will not 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 activities and the location and extent of the proposed
district.

(2) A time and place for a public hearing on the establishment of the
tourism marketing district and the levying of assessments, which shall
be consistent with the requirements of section 61.2508.
(“Establishment of Tourism Marketing District” added 5–30–2007 by O–19622 N.S.;
effective 6-29-2007.)
(Amended 12-18-2007 by O-19691; effective 1-17-2008.)
(Amended 10-6-2011 by O-20096 N.S.; effective 11-5-2011.)

The district management plan shall contain all of the following:

(a) A map of the district.

(b) The name of the proposed district.

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(c) A description of the boundaries of the district, including the boundaries of any
benefit zones, proposed for establishment or extension in a manner sufficient to
identify the affected lands and businesses included. Nothing in this Division
prohibits the boundaries of a district created pursuant to this Division to
overlap with other districts created pursuant to this Division or assessment
districts established pursuant to other provisions of law including, but not
limited to, the Parking and Business Improvement Area Law of 1989,
California Streets and Highways Code sections 36500 - 36551, or the Property
and Business Improvement District Law of 1994, California Streets and
Highways Code sections 36600 - 36671.

(d) The general description of activities proposed for each year of operation of the
district and the estimated maximum cost thereof.

(e) The estimated total annual amount proposed to be expended each year for
administration and 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 business
owner to calculate the amount of the assessment to be levied against their
business.

(g) The planned frequency for the levying of the assessments.

(h) The specific number of years in which assessments will be levied. The
maximum term for any district is 40 years. The district management plan may
set forth specific changes in assessments for each year of operation of the
district.

(i) The proposed timing and duration of activities under the plan.

(j) Any proposed rules and regulations to be applicable to the district.

(k) A list of the businesses to be assessed then in existence.

(l) A description of the procedures utilized by the association for the nomination
and election of the association’s board of directors.

(m) Any other item or matter required to be incorporated therein by the San Diego
City Council, the San Diego Municipal Code, or any other applicable law.

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The district management plan shall be approved by City Council at the time City Council considers the petition of businesses seeking to establish a tourism marketing district. Should the businesses or the tourism marketing district association seek to modify the plan at any time, such modifications shall be subject to the requirements of sections 61.2519 and 61.2520. (“Tourism Marketing District Management Plan” added 5–30–2007 by O–19622 N.S.; effective 6-29-2007.) (Amended 12-18-2007 by O-19691; effective 1-17-2008.) (Amended 10-6-2011 by O-20096 N.S.; effective 11-5-2011.)

(a) If the City Council proposes to levy a new or increased assessment pursuant to this Division, the City shall comply with the following notice, protest, and hearing procedures:

(1) The City Council shall identify all businesses which will have a special
and specific benefit conferred on them by the activities and upon which
an assessment will be imposed.

(2) All assessments shall be supported by the management plan.

(3) The City shall give notice by mail to the business owner of each
identified business. Each notice shall state the estimated total initial
annual assessments for the entire district, the duration of the payments,
the reason for the assessment and the basis upon which the amount of
the proposed assessment was calculated, and a specific formula in
sufficient detail to allow the business owner to calculate the proposed
assessment on the business, together with the date, time, and location of
a public hearing on the proposed assessment.

(4) If the proposed assessment formula is based on gross room revenue, the
amount of the proposed assessment for each identified business shall be
estimated based on gross room rental revenue for the City’s most recent
complete fiscal year.

(5) Each notice shall also include, in a conspicuous place, a summary of the
procedures for the completion, return, and tabulation of the ballots
required pursuant to section 61.2508(a)(6), including a statement that
the assessment shall not be imposed if the ballots submitted in
opposition to the assessment exceed the ballots submitted in favor of
the assessment, with ballots weighted according to the proportional
financial obligation of the affected business.

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The City shall give notice by mail at least 45 days prior to the date of the public hearing upon the proposed assessment. On the face of the envelope mailed to the business owner, in which the notice and ballot are enclosed, there shall appear in substantially the following form in no smaller than 16-point bold type: “OFFICIAL BALLOT ENCLOSED.” The City may additionally place the phrase “OFFICIAL BALLOT ENCLOSED” on the face of the envelope mailed to the business owner, in which the notice and ballot are enclosed, in a language or languages other than English.

(6) Each notice given pursuant to this section shall contain a ballot that
includes the City’s address for receipt of the ballot and a place where
the person returning the assessment ballot may indicate his or her name,
a reasonable identification of the business, and his or her support or
opposition to the proposed assessment. Each ballot shall be in a form
that conceals its contents once it is sealed by the person submitting the
ballot. Each ballot shall be signed and either mailed or otherwise
delivered to the address indicated on the ballot. Regardless of the
method of delivery, all ballots shall be received at the address indicated,
or the site of the public testimony, in order to be included in the
tabulation of a majority protest pursuant to section 61.2508(a)(8).
Ballots shall remain sealed until the tabulation of ballots pursuant to
section 61.2508(a)(8) commences, provided that a ballot may be
submitted, changed, or withdrawn by the person who submitted the
ballot prior to the conclusion of the public testimony on the proposed
assessment at the hearing required pursuant to this section. The City
may provide an envelope for the return of the ballot, provided that if the
return envelope is opened by the City prior to the tabulation of ballots
pursuant to section 61.2508(a)(8), the enclosed ballot shall remain
sealed as provided in this section.

(7) At the time, date, and place stated in the notice mailed pursuant to
section 61.2508(a)(3), the City shall conduct a public hearing upon the
proposed assessment. At the public hearing, the City shall consider all
objections or protests, if any, to the proposed assessment. At the public
hearing, any person shall be permitted to present written or oral
testimony. The public hearing may be continued from time to time.

(8) At the conclusion of the public hearing, a person or persons designated
by the City shall tabulate the ballots submitted, and not withdrawn, in
support of or opposition to the proposed assessment.

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(9) The City Council may, if necessary, continue the tabulation at a
different time or location accessible to the public, provided the City
Council announces the time and location at the hearing. Technological
methods may be used in the tabulation of the ballots, including, but not
limited to, punchcard, or optically readable (bar-coded) ballots.

(10) A majority protest exists if the ballots submitted, and not withdrawn, in
opposition to the proposed assessment exceed the ballots submitted, and
not withdrawn, in its favor, weighting those ballots by the amount of
the proposed assessment to be imposed upon the identified business for
which each ballot was submitted.

(11) If there is a majority protest against the imposition of a new assessment
or an increase in an existing assessment, the City shall not impose or
increase the assessment.

(b) In addition to the requirements of section 61.2508(a), the City shall also comply with California Government Code section 54954.6, as it relates to adopting any new or increased assessment. (“Notice of Proposed Assessments; Public Hearing” added 5–30–2007 by O–19622 N.S.; effective 6-29-2007.) (Amended 12-18-2007 by O-19691; effective 1-17-2008.) (Amended 10-6-2011 by O-20096 N.S.; effective 11-5-2011.)

Approved Activities; Changes to District Boundaries

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 activities to be funded with the revenues from the assessments. At the hearing, the City Council may only make changes to the boundaries of the proposed tourism marketing district that will exclude territory containing businesses that the City Council finds will not benefit from the proposed activities; and may only change proposed assessments by reducing them. (“City Council Adoption, Revision or Modification of Assessments; Modification of Approved Activities; Changes to District Boundaries” added 5–30–2007 by O–19622 N.S.; effective 6-29-2007.) (Amended 10-6-2011 by O-20096 N.S.; effective 11-5-2011.)

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(a) If the City Council, following a public hearing, decides to establish a proposed tourism marketing 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, the amount of the
proposed assessment, 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 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 Council
shall not establish the district or levy assessments if a majority protest
was received.

(5) A statement that the operations of the district established by the
resolution shall be subject to any amendments to this Division.

(6) A statement that the activities to be provided to benefit businesses 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 activities that directly benefit businesses 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 statement specifying the time and manner for levying the assessments
by the City Treasurer.

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(8) A statement that any assessment imposed pursuant to this Division is levied solely upon the business owner within the district, that the business owner is solely responsible for payment of the assessment when due, and that, if the business 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 a “San Diego Tourism Marketing District Assessment.”

(9) A finding that the activities funded by the assessments will provide a
special and specific benefit to businesses within the tourism marketing
district that is not provided to those not paying the assessment.

(b) The adoption of the resolution of formation and recordation of the notice and
map pursuant to section 61.2512 shall constitute the levy of an assessment in
each of the fiscal years referred to in the district management plan.
(“Resolution of Formation of Tourism Marketing District” added 5–30–2007 by
O-19622 N.S.; effective 6-29-2007.)
(Amended 12-18-2007 by O-19691; effective 1-17-2008.)
(Amended 10-6-2011 by O-20096 N.S.; effective 11-5-2011.)

Following adoption of a resolution establishing a district pursuant to section 61.2510 the City Clerk shall record a notice and map of the district. (Renumbered from former Section 61.2512, and amended 10-6-2011 by O-20096 N.S.; effective 11-5-2011.)

The City Council may establish one or more separate benefit zones within the district based upon the degree of benefit derived from the activities to be provided within the benefit zone, and may impose a different assessment within each benefit zone. The City Council may also define categories of businesses based upon the degree of benefit that each will derive from the 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. (“City Clerk to Record Notice and Map of District” added 5–30–2007 by O–19622 N.S.; effective 6-29-2007.) (Amended 12-18-2007 by O-19691; effective 1-17-2008.) (Renumbered from former Section 61.2513, retitled to “City Council Establishment of Benefit Zones” and amended 10-6-2011 by O-20096 N.S.; effective 11-5-2011.)

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(a) All provisions of this Division applicable to the establishment, modification, or disestablishment of a tourism marketing district apply to the establishment, modification, or disestablishment of benefit zones or categories of business. In order to establish, modify, or disestablish a benefit zone or category of business, the City Council shall follow the procedure to establish, modify, or disestablish a tourism marketing district.

(b) Subsection (a) above notwithstanding, no written petition of business owners
shall be required for the City Council to change or clarify a benefit zone or
category of business subject to an assessment; however, a written petition shall
be required for the City Council to disestablish a benefit zone or category of
business subject to an assessment. Any such petition may be signed by any
business owner in the district, whether or not such business is within a benefit
zone or category of business to be disestablished.
(“Council Establishment of Benefit Zones” added 5–30–2007 by O–19622 N.S.;
effective 6-29-2007.)
(Renumbered from former Section 61.2514, and amended 10-6-2011 by O-20096 N.S.;
effective 11-5-2011.)
(Amended 6-29-2016 by O-20667 N.S.; effective 7-29-2016.)

If a tourism marketing district expires due to the time limit set pursuant to section 61.2507(h), a new district management plan may be created and a new district established pursuant to this Division. (“Establishment, Modification or Disestablishment; Districts and Benefit Zones” added 5–30–2007 by O–19622 N.S.; effective 6-29-2007.) (Renumbered from former Section 61.2515, and amended 10-6-2011 by O-20096 N.S.; effective 11-5-2011.)

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The collection of the assessments levied pursuant to this Division shall be made at the time and in the manner set forth by the City Council in the resolution establishing the district described in section 61.2510. A method for charging interest and penalties for delinquent payments of assessments may also be prescribed in the resolution establishing the district. (“Expiration of Tourism Marketing District” added 5–30–2007 by O–19622 N.S.; effective 6-29-2007.) (Amended 12-18-2007 by O-19691; effective 1-17-2008.) (Renumbered from former Section 61.2516, and amended 10-6-2011 by O-20096 N.S.; effective 11-5-2011.)

The following business revenues are considered exempt from assessment under this Division:

(1) Revenues from a transient who has exercised occupancy for more than one
month;

(2) Revenues from a transient whose room rent is being paid directly or indirectly
by the federal government or the State of California, or

(3) Revenues from a transient who is by treaty exempt from locally-levied
transient occupancy taxes.
(“Collection of Assessments” added 5–30–2007 by O–19622 N.S.; effective 6-29-2007.)
(Amended 12-18-2007 by O-19691; effective 1-17-2008.)
(Renumbered from former Section 61.2518, and amended 10-6-2011 by O-20096 N.S.;
effective 11-5-2011.)

The validity of an assessment levied under this Division shall not be contested in any action or proceeding unless the action or proceeding is commenced within 30 days after the resolution establishing the district and levying the assessment is adopted pursuant to section 61.2510. Any appeal from a final judgment in an action or proceeding shall be perfected by the appellant within 30 days after the entry of judgment. (“Assessments Based on Estimated Benefits” added 5–30–2007 by O–19622 N.S.; effective 6-29-2007.) (Renumbered from former Section 61.2519, and amended 10-6-2011 by O-20096 N.S.; effective 11-5-2011. Former Section 61.2517 removed.)

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(a) Nothing in this Division shall relieve the City of its responsibility to promote the City of San Diego as enumerated in San Diego Municipal Code section 35.0128 regarding the use of revenues from the City’s Transient Occupancy Tax.

(b) The City Manager, or the Manager’s designee, will provide the tourism
marketing district association, on an annual basis, a statement detailing actual
Transient Occupancy Tax revenues collected under San Diego Municipal Code
section 35.0103 that are available for promoting the City. This statement shall
also describe the prescribed use of revenues from the City’s Transient
Occupancy Tax to include, but not be limited to:

(1) The annual debt payment for all existing bond obligations related to the
San Diego Convention Center Corporation;

(2) The annual marketing subsidy as required by the San Diego Convention
Center Corporation; and

(3) The annual debt payment for all existing bond obligations relative to
Balboa Park and Mission Bay Park.
(“Exemptions from Assessments” added 5–30–2007 by O–19622 N.S.; effective
6-29-2007.)
(Amended 12-18-2007 by O-19691; effective 1-17-2008.)
(Renumbered from former Section 61.2520, and amended 10-6-2011 by O-20096 N.S.;
effective 11-5-2011.)

A tourism marketing district association may, at any time, request that the City Council modify its district management plan. Any modification of the district management plan shall be made pursuant to this Division. (“Validity from Assessments; Contests” added 5–30–2007 by O–19622 N.S.; effective 6-29-2007.) (Amended 12-18-2007 by O-19691; effective 1-17-2008.) (Renumbered from former Section 61.2521, and amended 10-6-2011 by O-20096 N.S.; effective 11-5-2011.)

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(a) Upon the written request of a tourism marketing district association, the City Council may modify the district management plan, including modification of the activities to be funded with the revenue derived from the levy of the assessments, after conducting one public hearing on the proposed modifications. If the modification includes the levy of a new or increased assessment, the City shall comply with the notice and protest requirements of section 61.2508.

(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.

(c) The City shall give all business owners within the district written notice by
mail, of the proposed modifications of the district management plan, an
explanation of the modification, and the reason for the modification, together
with the date, time and location of a public hearing on the proposed
modification.
(“City’s Promotional Responsibilities” added 5–30–2007 by O–19622 N.S.; effective
6-29-2007.)
(Amended 12-18-2007 by O-19691; effective 1-17-2008.)
(Renumbered from former Section 61.2522, and amended 10-6-2011 by O-20096 N.S.;
effective 11-5-2011.)

(a) Each tourism marketing district association shall cause to be prepared a prospective report for each fiscal year, except the first year, for which assessments are to be levied and collected to pay the costs of the activities described in the report. The tourism marketing district 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 tourism marketing district or any benefit zones within the district, the basis and method of levying the assessments, and any changes in the classification of categories of business, if a classification is used.

(b) The report shall be filed with the City Clerk prior to the end of each fiscal year,
and shall refer to the tourism marketing 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:

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(1) Any proposed changes to the boundaries of the tourism marketing
district or to any benefit zones or classification of businesses within the
district.

(2) The activities to be provided for that fiscal year.

(3) An estimate of the cost of providing the activities for that fiscal year.

(4) The method and basis of levying the assessment in sufficient detail to
allow each business owner to estimate the amount of the assessment to
be levied against his or her business for that fiscal year.

(5) The estimated amount of any surplus or deficit revenues to be carried
over from the previous fiscal year.

(6) The estimated amount of any contributions to be made from sources
other than assessments levied pursuant to this Division.

(c) The City Council may approve the report as filed by the tourism marketing district association, or may modify any portion of the report and approve it as modified. Such modification shall only be made subject to the noticing provisions of sections 61.2520. Any portion of the report which proposes to modify the district management plan shall only be approved after complying with the notice and public hearing requirements of Section 61.2520. 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.

(d) A tourism marketing district association shall comply with the Ralph M.
Brown Act, California Government Code sections 54950 - 54963, at all times
when matters within the subject matter of the district are heard, discussed, or
deliberated, and with the California Public Records Act, California
Government Code sections 6250 - 6276.48, for all documents relating to
activities of the district.

(e) Each business owner paying the tourism district assessment has the right to
vote in annual elections of the association and the right to seek nomination or
election to the board of directors of the association.
(“Modifications of District Management Plan” added 5–30–2007 by O–19622 N.S.;
effective 6-29-2007.)
(Renumbered from former Section 61.2523, and amended 10-6-2011 by O-20096 N.S.;
effective 11-5-2011.)

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The district management plan may state that a tourism marketing district association will provide for and administer the activities described in the district management plan. If the district management plan designates a tourism marketing district association, the City may contract with the designated nonprofit corporation to implement the plan and carry out specified activities, subject to the terms and conditions enumerated in the contract. (“District Plan Modification; Public Hearing Required” added 5–30–2007 by O-19622 N.S.; effective 6-29-2007.) (Amended 12-18-2007 by O-19691; effective 1-17-2008.) (Renumbered from former Section 61.2524, and amended 10-6-2011 by O-20096 N.S.; effective 11-5-2011.)

(a) Upon renewal of an expired district, 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 businesses not included in the prior district, the remaining revenues shall be spent to benefit only the businesses in the prior district. If the renewed district does not include businesses included in the prior district, the remaining revenues attributable to these businesses shall be refunded to the owners of these businesses.

(b) Upon renewal, a district shall have a term not to exceed forty (40) years. There
is no requirement that the boundaries, assessments, or activities of a renewed
district be the same as the original or prior district.
(“Tourism Marketing District Association; Report of Activities” added 5–30–2007 by
O–19622 N.S.; effective 6-29-2007.)
(Amended 12-18-2007 by O-19691; effective 1-17-2008.)
(Renumbered from former Section 61.2525, and amended 10-6-2011 by O-20096 N.S.;
effective 11-5-2011.)

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(a) Any tourism marketing district established or extended pursuant to the provisions of this Division, where there is no outstanding and unpaid indebtedness incurred to accomplish any of the purposes of the district, may be disestablished by resolution of 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; or

(2) After the first year of operation of the district, there shall be a 30-day
period each year in which assessed business owners may request
disestablishment of the district. The first such period shall begin upon
presentation to City Council of the district’s initial annual report of
activities. During each successive year of operation of the district,
business owners shall have such a 30-day period to request
disestablishment upon presentation of the district’s report of activities.
Upon the written petition of the business owners in the district 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, pursuant to section
61.2508.

(b) The City Council shall adopt a resolution of intention to disestablish the
district, benefit zone or category of businesses within 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 district or benefit zone within the district.
The notice of the hearing on disestablishment required by this section shall be
given by mail to the owner of each business subject to assessment in the
district. The City Council shall conduct the public hearing not less than 30 days
after the mailing of the notice to the business owners. The public hearing shall
be held not more than 60 days after the adoption of the resolution of intention.
(“Tourism Marketing District Association; Contract With Nonprofit” added
5-30-2007 by O–19622 N.S.; effective 6-29-2007.)
(Renumbered from former Section 61.2526, and amended 10-6-2011 by O-20096 N.S.;
effective 11-5-2011.)
(Retitled from “Disestablishment of District; Procedures” to “Disestablishment of
District, Benefit Zone or Category of Business; Procedures” and amended 6-29-2016
by O-20667 N.S.; effective 7-29-2016.)

Ch. Art. Div.
6 1 25 17

San Diego Municipal Code Chapter 6: Public Works and Property, Public Improvement and Assessment Proceedings (7-2016)

(a) 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. All outstanding assessment revenue collected after disestablishment shall be spent on activities specified in the district management plan.

(b) 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, shall be refunded to the
business owners 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.
(“Renewal of Expired District” added 5–30–2007 by O–19622 N.S.; effective
6-29-2007.)
(Renumbered from former Section 61.2527, and amended 10-6-2011 by O-20096 N.S.;
effective 11-5-2011.)

(a) An action to determine the validity of assessments, contracts, improvements, or activities, or the amendment or approval of a district management plan, including but not limited to an amendment that changes, clarifies, or disestablishes a benefit zone or category of businesses, may be brought by the City or tourism marketing district association pursuant to Chapter 9 (commencing with section 860) of Title 10 of Part 2 of the California Code of Civil Procedure. For such purpose an assessment, contract, improvement, activity, acquisition, plan, or plan amendment shall be deemed to be in existence upon its authorization by the City Council.

(b) In accordance with California Streets and Highways Code section 36633, the
validity of an action identified in subsection (a) above, shall not be contested in
any action or proceeding unless the action or proceeding is commenced within
30 days after the matter is deemed to be in existence under that subsection (a).
Any appeal from a final judgment in an action or proceeding shall be perfected
within 30 days after the entry of judgment.
(“Disestablishment of District; Procedures” added 5–30–2007 by O–19622 N.S.;
effective 6-29-2007.)
(“Action to Determine Validity; Action Contesting Validity” added 10-6-2011 by
O-20096 N.S.; effective 11-5-2011. Former Section renumbered to 61.2524.)
(Amended 6-29-2016 by O-20667 N.S.; effective 7-29-2016.)

Ch. Art. Div. 6 1 25 18

San Diego Municipal Code Chapter 6: Public Works and Property, Public Improvement and Assessment Proceedings (3-2010)

Article 1: Public Improvement and Assessment Proceedings