Chapter 5.129 — SUNSET STRIP BID

• a. The Sunset Strip Business Improvement District ("district") was established under the Parking and Business Improvement Area Law of 1989, California Streets and Highway Code Section 36500 et seq. ("Act"), through Ordinance No. 02-621, with public hearings held on January 7 and February 4, 2002 in West Hollywood, California.

• b. The city complied with all notice and hearing requirements under the Act, considered all testimony and protests regarding the district's establishment and initial assessment levy, and determined no majority protest existed per Streets and Highways Code Section 36525, justifying the district's creation.

• c. The City Council finds that the public interest, convenience, and necessity support the district and that businesses within boundaries, as defined in Section 5.129.030, benefit from improvements and activities funded by assessments detailed in Section 5.129.040, promoting economic vitality through increased visibility, pedestrian traffic, and customer patronage.

• (Ord. 25-13, 7/7/2025)

The Sunset Strip BID ("district"), originally established pursuant to Ordinance No. 02-621 continues to operate as a business improvement district under the Parking and Business Improvement Area Law of 1989, California Streets and Highway Code Section 36500 et seq. (Ord. 02-621, 2/19/2002; Ord. 25-13, 7/7/2025)

The district is primarily centered along a 1.2-mile stretch along the portion of Sunset Boulevard known as "The Strip." The district is comprised of one zone. A list of addresses which are included in the district is included in Exhibit A of Section 5.129.080. (Ord. 02-621, 2/19/2002; Ord. 25-13, 7/7/2025)

• a. Except where funds are otherwise available, an assessment will be levied annually to pay for all the improvements and activities to be provided within the district, commencing with fiscal year 2002-2003.

• b. The method and basis of levying the assessment is set forth in Exhibit B in Section 5.129.090.

• c. For purposes of the levying and collecting of assessments within the district, a fiscal year shall commence on each July 1st and end on the following June 30th. The assessment for each fiscal year shall be due and payable in two equal installments. Prior to July 31st of each fiscal year, the city shall provide the business owners within the district with a written invoice of the amount of the assessment which is owed for that fiscal year and the amount of the first installment of that assessment. The first installment shall be due and payable on the date of such invoice and shall become delinquent ninety days thereafter. Prior to

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City of West Hollywood, CA § 5.129.040

WEST HOLLYWOOD CODE

§ 5.129.040

January 31st of each fiscal year, the city shall provide the business owners within the district with a written invoice of the amount of the second installment. The second installment for each fiscal year shall be due and payable on the date of such invoice and shall become delinquent ninety days thereafter.

• d. The assessment shall be subject to the same penalties for nonpayment as the business license tax. In addition to the penalties imposed, the assessment shall be subject to interest at the rate of one-half of one percent (0.5%) per month for each month or portion of a month that the assessment shall be delinquent on the amount of the assessment, exclusive of penalties, from the date on which the assessment first became delinquent until paid. The interest shall be computed on a monthly basis and shall not be subject to proration for any portion of a month. A payment made by mail shall be deemed received on the date shown on a postage cancellation stamp imprinted on the envelope in which the payment is received, or if payment is made by means other than through the United States mail, payment shall be deemed received on the date the payment is stamped "received" by the Director of the city's Finance Department or his or her designee.

ion of a month. A payment made by mail shall be deemed received on the date shown on a postage cancellation stamp imprinted on the envelope in which the payment is received, or if payment is made by means other than through the United States mail, payment shall be deemed received on the date the payment is stamped "received" by the Director of the city's Finance Department or his or her designee.

• e. Notwithstanding the foregoing, commencing with the assessment for fiscal year 2004-2005, for any new business established in the District between July 1st and December 31st of a fiscal year, the assessment for such business shall be equal to one-half of the annual assessment for that fiscal year and shall be due and payable in the manner prescribed in Subsection c of this section for the second installment of an assessment. Commencing with the assessment for fiscal year 2004-2005, for any new business established in the district between January 1st and June 30th of a fiscal year, such business shall be exempt from the assessment for that fiscal year. For purposes of this Subsection e, a business shall be deemed established on the date the city issues a business license for the business or the date the business commences operation, whichever is earlier (the "Start Date"). A business owner may file an application for an exception to the Start Date with the Director of the city's Department of Economic Development (the "Director"). This application shall set forth with specificity the facts upon which it is based. Upon receipt of such an application, the Director shall investigate and review the matter and shall either affirm the original Start Date or assign a new Start Date and shall notify the business owner of the decision in writing. The decision of the Director on an application for a new Start Date shall be final. In no event shall a new business be exempt from the levy of the assessments for a period exceeding one year from the date the business commences operating in the district.

• f. In the event a business owner disagrees with the classification assigned to his or her business, the business owner may file an application for reclassification with the Director of the city's Economic Development Department (the "Director"). This application shall set forth with specificity the facts upon which it is based. Upon receipt of such an application, the Director shall investigate and review the matter and shall either affirm the original classification or assign a new classification and shall notify the business owner of the decision in writing. The Director may refuse to accept an application for reclassification from a business owner who has applied for reclassification within the previous twelve months if the application fails to state material and relevant facts which were not, and could not have been, presented in the previous reclassification application. The decision of the Director on an application for reclassification shall be final.

rector may refuse to accept an application for reclassification from a business owner who has applied for reclassification within the previous twelve months if the application fails to state material and relevant facts which were not, and could not have been, presented in the previous reclassification application. The decision of the Director on an application for reclassification shall be final.

• g. The amount of assessment, penalty and interest imposed by the provisions of this Chapter shall be deemed a debt to the city. An action may be commenced in any court of competent jurisdiction in the name of the city for the amount of such debt. The conviction and

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City of West Hollywood, CA

BUSINESS LICENSES, REGULATIONS AND PERMITS

§ 5.129.040

§ 5.129.060

punishment of any person for failure to comply with the provisions of this Chapter shall not relieve such person from paying any assessment, penalty or interest due and unpaid at the time of such conviction nor shall payment prevent prosecution of a violation of any of the provisions of this Chapter. All remedies shall be cumulative, and the use of one or more remedies by the City to enforce this chapter shall not bar the use of any other remedy.

the provisions of this Chapter shall not relieve such person from paying any assessment, penalty or interest due and unpaid at the time of such conviction nor shall payment prevent prosecution of a violation of any of the provisions of this Chapter. All remedies shall be cumulative, and the use of one or more remedies by the City to enforce this chapter shall not bar the use of any other remedy.

• h. Any business owner within the district may apply for a waiver of penalties and/or interest accrued due to late payment of assessments if the debt has not been forwarded to a collections agency and the following circumstances apply: (1) internal billing error by the City of West Hollywood, including incorrect category, incorrect amount, or incorrect mailing address; or (2) this is the business's first delinquency on payment of an assessment within the last three years. An assessment invoice will be sent to a collections agency at one hundred twenty days past due with all applicable penalties and/or interest. Applications for a waiver must be submitted in writing to the City Manager or their designee within fifteen business days from the date of the penalty notice. The application must include a detailed explanation of the circumstances leading to the delinquency, supported by relevant documentation or any evidence pertinent to the justification of the request. The City Manager or their designee will review the application and issue a written decision within twenty business days of receipt. The City Manager or their designee will consider whether there is good cause for the waiver or errors in assessment processing, as applicable in this Section 5.128.040. The decision will be communicated to the business owner via email at the email address provided by the business owner and on file with the city. The amount determined to be due shall be paid within ten business days following the date that the decision is emailed. Any amount due post-waiver must be paid as specified or further penalties will accrue. All penalties and interest will be retained by the City of West Hollywood. For delinquent assessments that have been forwarded to a collection agency, the District will receive the assessment amount paid minus any collection agency fees. Any waiver granted under this subsection does not exempt business owners from compliance with all other sections of this Chapter 5.129.

• i. The assessment formula set forth in Exhibit B of Section 5.129.090 is hereby adopted by the City Council.

(Ord. 02-621, 2/19/2002; Ord. 02-632, 8/19/2022; Ord. 04-679, 3/15/2004; Ord. 25-13, 7/7/ 2025)

There is created a special fund designated as the "Sunset Strip Business Improvement District Fund" into which all revenue derived from assessments levied pursuant to this chapter shall be placed, and such funds shall be used only for the purposes specified in this chapter. This fund shall be subject to an annual independent audit.

(Ord. 02-621, 2/19/2002; Ord. 25-13, 7/7/2025)

• a. The improvements that will be funded by the levy of an assessment against businesses within the district are 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: (i) parking facilities; (ii) benches; (iii) trash receptacles; (iv) street lighting; (v) decorations; (vi) parks; and (vii) fountains.

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City of West Hollywood, CA

WEST HOLLYWOOD CODE

§ 5.129.060

§ 5.129.090

• b. The activities that will be funded by the levy of an assessment against businesses within the district are: (i) promotion of public events which benefit businesses in the district and which take place on or in public places within the district; (ii) furnishing of music in any public place in the district; (iii) promotion of tourism within the district; and (iv) activities which benefit businesses located in and operating in the district.

• c. The revenue derived from the levy of the assessments shall not be used to provide activities outside the district or for any purpose other than the purposes specified in Resolution No. 02-2626.

• (Ord. 02-621, 2/19/2002; Ord. 25-13, 7/7/2025)

The city may contract with a separate private agency to administer the improvements and activities described in Section 5.129.060. Any agency that holds the funds in trust for purposes related to the contract shall, at no expense to the city, provide an annual independent report by a certified public accountant of these funds. The audit may be funded from assessment proceeds as part of the general administration of the district. At all times the city shall reserve full rights of accounting of these funds.

(Ord. 02-621, 2/19/2002; Ord. 25-13, 7/7/2025)

Businesses within the district established by this chapter shall be subject to any amendments to the Parking and Business Improvement Area Law of 1989, California Streets and Highways Code Section 36500 et seq.

(Ord. 02-621, 2/19/2002; Ord. 25-13, 7/7/2025)

EXHIBIT A — District Boundaries.

The specific addresses included in the BID boundaries are as follows:

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Street Range
Alta Loma Rd. 1200-1232
Carol Dr. 1032-1033; 1046-1052
N. Doheny Dr. 1111
Doheny Rd. 9201-9209; 9231; 9255; 9329
Hammond St. 1020-1026
Hilldale Ave. 1011; 1030-1036
Holloway Dr. 8731-8756; 8758; 8760; 8762; 8766
Horn Ave. 1114
Larrabee St. 1012; 1021-1029
Miller Dr. 1320
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City of West Hollywood, CA

BUSINESS LICENSES, REGULATIONS AND PERMITS

§ 5.129.090

§ 5.129.090

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Street Range
N. Olive Dr. 1323; 1333
Palm Ave 1022-1022 1/2
N. San Vicente Blvd. 1004; 1020; 1022
N. Sherbourne Dr. 1104-1112
W. Sunset Blvd. 8222-9220; 9229 9255 (odd only)
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The service area includes approximately 200+ businesses.

EXHIBIT B — Assessment Formula.

The proposed Sunset Strip Business improvement District is divided into sixteen separate business classifications. These classifications are limited to the following businesses: Nightclubs/Bars or Adult; Hotels; Restaurants; Other, which includes Liquor stores/Convenience stores with liquor; Valet Parking services; and, Retail stores. Each business classification receives a level of service in relation to the total amount paid into the district.

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Classification Assessment
I. Nightclub/Bar or Adult
1. Occupancy 600 and over $17,500
2. Occupancy 250-599 $10,000
3. Occupancy 100-249 $7,500
4. Occupancy 0-99 $2,500
II. Hotel
5. Room Count 120 and over $2,000
6. Room Count 0-119 $2,000
III. Restaurant
A. With Liquor License (ABC 47/48)
7. Occupancy 450 and over $12,500
8. Occupancy 275-449 $7,500
9. Occupancy 175-274 $5,000
10. Occupancy 100-174 $3,750
11. Occupancy 0-99 $2,500
B. Without Liquor License
12. Occupancy 50 and over $1,980
13. Occupancy 0-49 $800
IV. Other
14. Liquor Store/Convenience Store with Liquor License $2,500
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City of West Hollywood, CA

WEST HOLLYWOOD CODE

§ 5.129.090

§ 5.129.090

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Classification Assessment
15. On-Street Valet (per location) $2,000
16. Retail Store $200
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The classification "Retail Stores" shall include businesses predominately selling merchandise to the general public. This classification does not include businesses which predominately sell merchandise on a wholesale basis. This classification also does not include businesses which predominately provide services to the public (such as dry cleaners, beauty salons, travel agencies, or private mailing and copying services), even if such businesses make sales of merchandise incidental to the provision of their primary service.

The following types of businesses will not be assessed: motion picture distributors, business consultants, public relations, computer programmers, services allied to motion pictures, motion picture and video production, real estate agents, foreign trade and international firms, television broadcasting, dental laboratories, outdoor advertising services, manufacturing industries, nonclassifiable establishments, legal counsel and prosecutors, legal services, music recording, insurance agents/brokers, entertainers, general medical and surgical services, physical fitness facilities, commercial photography, executive offices, miscellaneous publishing, museums, management investment, nonprofit service establishments; radio broadcasting, adjustment and collection, accounting/auditing, engineering services, and travel agencies. (Ord. 02-621, 2/19/2002; Ord. 25-13, 7/7/2025)

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City of West Hollywood, CA

BUSINESS LICENSES, REGULATIONS AND PERMITS

§ 5.130.010

§ 5.129.090