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HomeMy WebLinkAboutOrdinance #2974 ORDINANCE NO. 2974 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH AMENDING THE CITY'S TRANSIENT OCCUPANCY TAX ORDINANCE TO PROVIDE A CREDIT FOR THE PAYMENT OF TRANSIENT OCCUPANCY TAXES TO THE HUNTINGTON BEACH REDEVELOPMENT AGENCY. WHEREAS, California Revenue and Taxation Code Section 7280 .5 permits the redevelopment agency of any city which has levied a transient occupancy tax pursuant to Section 7280 to adopt an ordinance levying a transient occupancy tax if the city 's ordinance entitles any person subject to the tax under the city' s ordinance to credit the amount of taxes due to the agency against the payment of taxes due under the city ' s ordinance; and The Huntington Beach Redevelopment Agency ( "Agency" ) desires to receive a portion of the transient occupancy taxes generated by hotels, inns, tourist homes or houses, motels, and other lodgings located within a portion of the Main-Pier Redevelopment Project Area to the extent necessary to enable the Agency to timely satisfy its payment obligations under that certain Disposition and Development Agreement ( "DDA" ) dated August 15, 1988, by and between the Agency and RLM Properties, Ltd. ( "Developer" ) ; and The City Council desires to facilitate the implementation of the Redevelopment Plan for the Main-Pier Redevelopment Project Area and the Agency's ability to perform its payment obligations under the DDA by providing that persons subject to the City' s transient occupancy tax ordinance in the portion of the Main-Pier Redevelopment Project Area designated -1- 2974 I herein shall be entitled to a credit against the payment of taxes due under the City's ordinance in the amount of the transient occupancy taxes due to the Agency; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH DOES ORDAIN AS FOLLOWS: Section 1. A new Section 3 .28 .170 is hereby added to the Huntington Beach Ordinance Code to read in its entirety as follows 3 .28 .170 . Credit for Transient Occupancy Taxes Paid to Huntington Beach Redevelopment Agency. Any person or persons subject to the transient occupancy tax under this Ordinance shall be entitled to a credit against the payment of such taxes due in the amount of any transient occupancy taxes due from that person or persons to the Huntington Beach Redevelopment Agency( "Agency" ) pursuant to Ordinance No. 1, adopted by the Agency on October 24, 1988, which affects any persons occupying a room or rooms in any hotels, inns, tourist homes or houses, motels, or other lodging within that portion of the Main-Pier Redevelopment Project Area bounded on the south by Pacific Coast Highway, on the west by Huntington Street, on the north by the proposed alignment for the future extension of Walnut Avenue) as shown on the City's Precise Plan of Alignment adopted prior to this Ordinance) , and on the east by Beach Boulevard. Section 2 . Section 1 above shall automatically terminate and be of no further force and effect on the date that -2- 2974 the entire Agency indebtedness set forth in Attachment No. 5 to the DDA is paid in full or, as to Paragraph 4 only, the date that any unpaid balance is forgiven and discharged as provided therein. Section 3 . The purpose of this Ordinance is to assist the Agency in implementing the Redevelopment Plan for the Main-Pier Redevelopment Project Area by providing an additional source of revenue to the Agency to satisfy its payment obligations to the Developer under the DDA. Accordingly, to the extent that after the operative date of this Ordinance the Agency collects any transient occupancy taxes not required to enable the Agency to timely make such payments to the Developer, the excess amount shall promptly be paid to the City. Section 4 . Pursuant to California Revenue and Taxation Code Section 7280 .5 (d) and Attachment No . 5 to the DDA, this Ordinance may not be amended, modified, or repealed prior to the termination date set forth in Section 2 in a manner that jeopardizes or impairs the Developer 's rights under the DDA without the prior written consent of the Developer (including all permitted successors and assigns of RLM Properties, Ltd. 's right under the DDA to any of the payments required to be made thereunder) . Section 5. If any provision of this Ordinance or the application thereof to any person or circumstance is held invalid, the remainder of the ordinance and the application of such provision to other persons or circumstances shall not be affected thereby. Section 6. The City Clerk shall attest to the adoption -3- 2974 of this Ordinance and the same shall be published in accordance with law. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 7th day of November , 1988 . �.�ayor ATTEST: APPROVED AS TO FORM: • City Clerk r--City Attorney R EWED` D APP VED: IN TIA D AND APPROVED: C y Administrator Di e for of Economic De lopment -4- 2974 Ord. No. 2974 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH ) I, CONNIE BROCKWAY, the duly appointed, qualified City Clerk of the City of Huntington Beach and ex-officio Clerk of the City Council of the said City, do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is seven; that the foregoing ordinance was read to said City Council at a regular meeting thereof held on the 24th day of October 19 88 , and was again read to said City Council at a regular meeting thereof held on the 7th day of November , 19 88 , and was passed and adopted by the affirmative vote of at least a majority of all the members of said City Council . AYES: Councilmembers: Kelly, Green, Finley Erskine, Mays, Winchell NOES: Councilmembers: Bannister ABSENT: Councilmembers: Nnna t, Connie Brockway, CITY Clerk of the City of Hunt on Rah aW ex-officlo Clerk of the City Grx 0 !w, "owft that a synopsis of this • or,n-1 s bw pd)NdW i tlhe 4y Pilot on ,19 9 `' �.:.�:., i;i-ty Clerk and ex-officio Clerk Pal of the City Council of the City QM* MM of Huntington Beach, California ulwcwk 2974 ORDINANCE NO. 1 AN ORDINANCE OF THE HUNTINGTON BEACH REDEVELOPMENT AGENCY LEVYING A TAX ON THE PRIVILEGE OF OCCUPYING A ROOM OR ROOMS IN A HOTEL , INN, TOURIST HOME OR HOUSE, MOTEL, OR OTHER LODGING LOCATED ON CERTAIN DESIGNATED PROPERTY WITHIN THE MAIN-PIER REDEVELOPMENT PROJECT AREA WHEREAS, California Revenue and Taxation Code Section 7280 . 5 permits the redevelopment agency of any city which has levied a transient occupancy tax pursuant to Section 7280 to adopt an ordinance levying a transient occupancy tax if the city' s ordinance entitles any person subject to the tax under the city ' s ordinance to credit the amount of taxes due to the agency against the payment of taxes due under the city ' s -o-rdinance; and The City Council of the City of Huntington Beach ( "City" ) has adopted a transient occupancy tax ordinance consistent with the provisions of Revenue and Taxation Code Section 7280 and 7280 .5; and In Accordance with that certain Disposition and Development Agreement dated August 15 , 1988 ( "DDA" ) , by and between the Huntington Beach Redevelopment Agency ( "Agency" ) and RLM Properties, Ltd. ( "Developer" ) , the Agency desires to levy a transient occupancy tax to be applicable to the privilege of occupying a room or rooms in a hotel , inn, tourist home or house, motel, or other lodging located on that certain real property designated herein; NOW, THEREFORE, THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH DOES ORDAIN AS FOLLOWS: Section 1. LEVY OF TRANSIENT OCCUPANCY TAX . The Agency hereby levies a tax on the privilege of occupying a room or rooms in a hotel, inn, tourist home or house, motel, or other lodging located within that portion of the Main-Pier Redevelopment Project Area bounded on the south by Pacific Coast Highway, on the west by Huntington Street, on the north by the proposed alignment for the future extension of Walnut Avenue (as shown on the City' s Precise Plan of Alignment adopted prior to this Ordinance) , and on the east by Beach Boulevard . Said tax shall apply to the same extent , and with the same exceptions, as is the case throughout the balance of the City and as may be provided by state law, as the same may be amended from time to time . Section 2 . RATE . The rate of the transient occupancy tax imposed by this Ordinance shall be six percent (6% ) . The Agency reserves the authority from time to time to amend this Ordinance to reduce such rate to a lesser rate, provided that such lesser rate generates sufficient revenues to enable the Agency to timely satisfy its payment obligations to the Developer under the DDA, as the same may be amended from time to time . Section 3 . OPERATIVE DATE . This Ordinance shall not be operative until the later of ( i ) the first day of the calendar quarter commencing more than one hundred eighty ( 180 ) days after adoption of this Ordinance or ( ii ) thirty (30 ) days after the Agency defaults under Attachment No. 5 to the DDA and the Developer provides to the Agency written notice to of Agency ' s default . The Executive Director is hereby authorized and directed to notify all persons and entities liable for -_c.ollection and payment of the tax immediately after the operative date of this Ordinance. Section 4 . TERMINATION DATE . This Ordinance shall automatically terminate and be of no further force and effect on the date that the entire Agency indebtedness set forth in Attachment No. 5 to the DDA is paid in full or, as to Paragraph 4 only, on the date that any unpaid balance is forgiven and discharged as provided therein. Section 5 . PAYMENT OF EXCESS TAX REVENUE TO CITY. The purpose of this Ordinance is to implement the Redevelopment Plan for the Main-Pier Redevelopment Project Area by providing an additional source of revenue to the Agency to satisfy its payment obligations to the Developer under the DDA. Accordingly, to the extent that after the operative date of this Ordinance the Agency collects any transient occupancy taxes not required to enable the Agency to timely make such payments to the Developer , the excess amount shall promptly be paid to the City. Section 6 . AMENDMENTS . Pursuant to California Revenue and Taxation Code Section 7280 .5 (d) and Attachment No. 5 to the DDA, this Ordinance may not be amended, modified, or repealed prior to the termination date set forth in Section 4 in a manner that jeopardizes or impairs the Developer ' s rights under the DDA without the prior written consent of the. Developer ( including all permitted successors and assigns of Developer ' s right under the DDA to any of the payments required to be made thereunder) . Section 7 . SEVERABILITY . If any provision of this Ordinance of the application thereof to any person or circumstance is held invalid, the remainder of the Ordinance and the application of such provision to other persons or circumstances shall not be affected thereby. 2 - 1 Section 8 . ATTESTATION AND PUBLICATION . The Secretary of the Agency shall attest to the adoption of this Ordinance and the same shall be published in accordance with the procedures applicable to general law cities . Section 9 This ordinance shall take effect thirty (30 ) days after its passage . PASSED AND ADOPTED by the Redevelopment Agency of the City of Huntington Beach at an regular meeting thereof held on the 7th day of November , 1988 . C airma ATTEST: APPROVED AS TO FORM: dw.�' — 6�1 -Agency Clerk `,N Agency Attorney SE)_ ao REVIEWED AND APPROVED: INITIATED AND APPROVED: . - . L 4 L—W. 4L4,e City Administrator Dire Ufir of Redevelopment 3 1 Ord. No. 1 STATE OF CALIFORNIA ) COUNTY OR ORANGE ) CITY OF HUNTINGTON BEACH) I , CONNIE BROCKWAY, Clerk of the Redevelopment Agency of the City of Huntington Beach, do hereby certify that the whole number of members of the Redevelopment Agency of the City of Huntington Beach is seven; that the foregoing ordinance was read to said Redevelopment Agency at a regular _. meeting thereof held on 24th day of October 19 88 and was again read to said Redevelopment Agency at a regular meeting thereof held on the 7th day of November 19 88 , and was passed and adopted by affirmative vote of at least a majority of all the members of said Redevelopment Agency. AYES: Members: Kelly, Green, Finley, Erskine, Mays, Winchell NOES: Members: Bannister ABSENT: Members: None Clerk of the Redevelopmen Agency of the City of Huntington Beach, CA 1