Simi Valley Municipal Code Ch. 7 Tourism Marketing District

Pursuant to Section 36500 et seq. of the Streets and Highways Code of the State of California, a business improvement area designated as the Simi Valley Tourism Marketing District ("SVTMD") of the City of Simi Valley is hereby created and established and the "benefit zone" is hereby created and established coterminous with the SVTMD.

(§ 1, Ord. No. 1356, eff. June 3, 2024)

Assessments levied for the SVTMD shall be used for sales, promotions and marketing programs to market Simi Valley lodging businesses as tourist, meeting, and event destinations, and other improvements and activities as set forth in the Management District Plan. The revenue from the levy of the assessments on lodging businesses within the SVTMD may not be used to provide for activities or improvements outside the SVTMD or for any purpose other than those specified herein, in the Management District Plan, and in the Resolution of Intention. Any funds remaining at the end of any year may be used in subsequent years in which the SVTMD assessment is levied as long as they are used consistent with the requirements set forth herein.

(§ 1, Ord. No. 1356, eff. June 3, 2024)

The City of Simi Valley hereby renews the SVTMD, for a ten (10) year term, beginning July 1, 2024, or as soon as possible thereafter, under the provisions of the Property and Business Improvement District Law of 1994, as set forth in the Streets and Highways Code of the state, Section 36600 et seq.

(§ 1, Ord. No. 1356, eff. June 3, 2024)

The Management District Plan (Plan) presented at the final public hearing of the renewal of the SVTMD held pursuant to the Property and Business Improvement District Law of 1994 is hereby adopted and approved.

(§ 1, Ord. No. 1356, eff. June 3, 2024)

A. The activities to be provided to benefit businesses in the SVTMD 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 SVTMD; to provide activities or improvements outside the SVTMD; or for any purpose other than the purposes specified in this chapter, the resolution of intention, the resolution of formation, and the plan. Notwithstanding the foregoing, improvements and activities that must be provided outside the SVTMD boundaries to create a specific benefit to the assessed businesses may be provided, but shall be limited to marketing or signage pointing to the SVTMD.

B. The Council finds as follows:

1. The activities funded by the assessment will provide a specific benefit to assessed businesses within the SVTMD that is not provided to those not paying the assessment.

2. The assessment is a charge imposed for a specific benefit conferred or privilege granted directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the City of conferring the benefit or granting the privilege.

3. The assessment is a charge imposed for a specific government service or product provided directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the City of providing the service or product.

4. Assessments imposed pursuant to the SVTMD 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 or customer, that portion shall be specifically called out and identified for the transient or customer in any and all communications from the business owner as the "SVTMD Assessment" or "Tourism Assessment" as specified in the plan.

5. The assessments levied for the SVTMD shall be applied toward marketing and sales promotions, and other improvements and activities as set forth in the plan.

6. Assessments levied on lodging businesses pursuant to this chapter shall be levied on the basis of benefit. Because the services provided are intended to increase room rentals, an assessment based on gross short-term room rental revenue is the best measure of benefit.

(§ 1, Ord. No. 1356, eff. June 3, 2024)

Bonds shall not be issued to fund the SVTMD.

(§ 1, Ord. No. 1356, eff. June 3, 2024)

The renewed TMD includes all lodging businesses, existing and in the future, available for public occupancy located within the boundaries of the City as described in the Management District Plan.

(§ 1, Ord. No. 1356, eff. June 3, 2024)

A. Each business in the benefit zone shall pay an assessment of two (2%) percent of gross short-term sleeping room rental revenue charged and received from transient hotel guests who do not make the hotel their principal place of residence. Based on the benefit received, assessments will not be collected on stays of more than thirty (30) consecutive days.

B. Any modification to the benefit zone or program of activities for which the assessments are to be levied would be subject to notification of all affected businesses within the TMD and a public hearing before the City Council. At such public hearing, the City Council shall hear all protests and receive evidence, including written protests, for and against such modifications, including the inclusion of additional hotels or business. Assessments on newly established hotels shall commence immediately upon the first day of operation and after the public hearing for inclusion of such property.

C. The method of assessment established by this chapter shall not be changed without written notice to all businesses in the TMD and a public hearing held by the City Council. At such a public hearing, the City Council shall hear all protests and receive evidence, including written protests, for and against the establishment of any change in the method of assessment.

(§ 1, Ord. No. 1356, eff. June 3, 2024)

The City will be responsible for collecting the assessment on a quarterly basis (including any delinquencies, interest, and overdue charges) from each lodging business located in the boundaries of the SVTMD. The City shall take all reasonable efforts to collect the assessments from each assessed lodging business. The City shall receive one (1%) percent of the total assessments as reimbursement for City services.

(§ 1, Ord. No. 1356, eff. June 3, 2024)

The City Council through adoption of this chapter and the plan, has the right pursuant to Streets and Highways Code Section 36651, to identify the body that shall implement the proposed program, which shall be the Owners' Association of the SVTMD as defined in Streets and Highways Code Section 36612. The City Council has determined that the Simi Valley Chamber of Commerce shall be the SVTMD Owners' Association. Passage of this chapter authorizes the City Council to contract with the Simi Valley Chamber of Commerce to administer the SVTMD.

(§ 1, Ord. No. 1356, eff. June 3, 2024)

The Owners' Association, pursuant to Streets and Highways Code Section 36650, shall cause to be prepared a report for each fiscal year, except the first year, for which assessments are to be levied and collected to pay the costs of the improvement and activities described in the report. The first report shall be due after the first year of operation of the SVTMD.

(§ 1, Ord. No. 1356, eff. June 3, 2024)

The SVTMD renewed pursuant to this chapter shall be subject to any amendments to the Property and Business Improvement District Law of 1994 (California Streets and Highways Code Section 36600 et. seq.).

(§ 1, Ord. No. 1356, eff. June 3, 2024)