HomeMy WebLinkAboutStudy Session #1 (18-257) PowerPoint communication - HBTID S8/31/2018
The Huntington Beach Hotel/Motel Business Improvement District
(HBHMBID) was initially established in 2002 pursuant to the Parking and
Business Improvement Area Law of 1989
• Required an annual levy
• 1% assessment from 2002-2009; Increased to 2% in 2010
In 2014, the HBHMBID was converted to the Huntington Beach Tourism
Business Improvement District (HBTBID) pursuant to the Property and
Business Improvement District Law of 1994 ('94 Law)
• Law allows for a maximum 5 year term on the outset and up to 10
year term upon renewal
• 3% assessment
SUPPLEMENTAL
COMMUNICATION
Meebng Date: _ `�—�,D/r -
C /
Agenda Item No.:
8/31/2018
Transient Occupancy Tax (TOT) paid by overnight lodging guests, City retains 90%,
VHB receives 10% of all TOT. This agreement with VHB expires on September 30,
2021.
HB Tourism Business Improvement District (HBTBID) expires on September 30,
2019. VHB receives 100% of the 3% assessment minus an administration fee
retained by City.
AW, It _�:e t S
• HBTBID Assessment modified from 3% to 4% and paid by overnight hotel guests, not
residents.
• Hotel check out rate for overnight guests would increase slightly from 13% to 14%
(10%TOT and 4%HBTBID).
• HBTBID District would be reauthorized for 7 1/2 years and will be aligned with the
City's new Fiscal Year (July -June).
• A new Management District Plan (MDP) Agreement would be developed and approved
for 7 1/2 years.
ANN
.w- ..
N
8/31/2018
HBTBID Assessment Modification
The Management District Plan expenditure category buckets would be modified
to allow for greater flexibility as sales and marketing trends/best practices change
over time. Over 70% of all future HBTBID Assessments would be spent on Tourism
Enhancement Programs, including the desired targeted amount annually of
$250,000/year for Visitor Services Enhancements.
8/31/2018
HBTBID Assessment Modification
Initial Annual Budget - $5,000,000
Contingency / Reserve, City Admin. Fee,
$400,000 , 8% $50,000 , 1%
Administration,
$950,000 , 19%
Tourism
Enhancement
Programs,
$3,600,000 , 72%
8/31/2018
Tourism Improvement Districts
as of September 14, 2017
OF.
- Active TIN
® C—idcring TIN
8/31/2018
Initiation
Outreach & Consensus
Building
Document Prep
Document Revision
Hearing Process
Renewed District
Begins Operations
Orange County Cities
TOT Occupancy Tax
TBID Assessment Rate
Total Check Out Rate
Anaheim
15.0%
2.0%
17.0%
Buena Park
12.0%
2.0%
14.0%
Costa Mesa
10.0%
3.0%
11.0%
Dana Point
10.0%
$3.00 per night
13% (est. with $3 per room)
Garden Grove
14.5%
2.5%
17.0%
Huntington Beach
10.D%
3.0%
13.0%
Irvine
8.0%
2.0%
10.0%
Laguna Beach
12.0%
2.0%
14.0%
Newport Beach
10.0%
3.0%
13.0%
Competitive Non-OC Cities
Long Beach
12.0%
3.0%
15.0%
Los Angeles
14.0%
1.5%
15.5%
Napa Valley
12.0%
2.0%
14.0%
San Diego
10.5%
2%•
12.5%
Santa Barbara
12.0%
$.75-$4.85 per night
13%-14.6%
Santa Monica
14.0%
$1.50-$5.25 per night
14%-16%
West Hollywood
12.5%
3.0%
15.5%
'Increase will be on future ballot
1.1
8/31/2018
F