The Tourism Business Improvement District (District) is a benefit assessment district proposed to fund marketing and public relations and community marketing programs for unincorporated Yolo County and the cities of Davis, Winters and Woodland lodging businesses. This approach has been used successfully in other destination areas throughout the state to improve tourism and drive additional room nights. The proposed District includes all lodging businesses, located within the boundaries of unincorporated Yolo County and the cities of Davis, Winters and Woodland.
Hoteliers and the Yolo County Visitors Bureau (Visit Yolo) decided to pursue formation of the District to create a revenue source devoted to marketing unincorporated Yolo County and the cities of Davis, Winters and Woodland as a tourist, meeting and event destination. While cities are free to form their own districts, Visitor Attraction Business Improvement Districts, require annual renewal. For simplification of administration, the cities are requesting the formation of a TBID which has a five year renewal. If formed, the District would generate approximately $690,000 on an annual basis for promotion of travel and tourism specific to unincorporated Yolo County and the cities of Davis, Winters and Woodland.
TBIDs utilize the efficiencies of private sector operation in the market-based promotion of tourism. These special assessment districts allow lodging and tourism-related business owners to organize their efforts to increase tourism. Tourism-related business owners within the district fund the district, and those funds are used to provide services that the businesses desire and that benefit the businesses within the district.
District benefits:
- Funds cannot be diverted for other government programs
- They are customized to fit the needs of each destination
- They allow for a wide range of services; including: marketing of the destination, tourism promotion activities and sales lead generation
- They are designed, created and governed by those who will pay the assessment
- They provide a stable funding source for tourism promotion
In California, TBIDs are formed pursuant to the Property and Business Improvement District Law of 1994. This law allows for the creation of a special benefit assessment district to raise funds within a specific geographic area. The key difference between TBIDs and other special benefit assessment districts is that funds raised are returned to the private non-profit corporation governing the district.
Management District Plan
The Management District Plan (Attachment C) includes the proposed boundary of the District, a service plan and budget and a proposed means of governance. The District will include all lodging businesses, existing and in the future, available for public occupancy within the boundaries of unincorporated Yolo County and the cities of Davis, Winters and Woodland.
The proposed District will have a five year life. The assessment will be implemented beginning July 1, 2017 through June 30, 2022. Once per year beginning on the anniversary of District renewal, there is a 30-day period in which business owners paying more than fifty percent of the assessment may protest and begin proceedings to terminate the District.
The County and cities will be responsible for collecting the assessment on a monthly basis from each lodging business located in the District boundaries, within their respective jurisdictions. The County and cities shall forward the assessments to Visit Yolo, which will have the responsibility of managing District programs as provided in the Management District Plan. Visit Yolo shall reimburse the County and cities the actual amount of their costs of collection and administration.
District Formation Process
May 9, 2017- Resolution of Intention Hearing
Upon the submission of a written petition, signed by the lodging business owners in the proposed District who will pay more than fifty percent of the assessments proposed to be levied, the Board may initiate proceedings to form the District by the adoption of a resolution expressing its intention to form the District.
Petition Status: Petitions submitted in favor of District formation by lodging business and the percent of the total district assessment will be announced during the May 9, 2017 Board of Supervisors meeting. A majority petition allows the Board to initiate proceedings for District formation at the May 9, 2017 meeting.
May 9, 2017- Resolution Requesting Consent
A county may not form a District within the territory of a city without the consent of the city council of that city. Adoption of this resolution formally requests the Davis, Winters and Woodland City Councils to consent to including their territory in the proposed District. Their consent must be received prior to the final public hearing on June 27, 2017.
May 12, 2017- Notice
The Property and Business Improvement District Law of 1994 requires the County mail written notice to the owners of all businesses proposed to be within the District. Mailing the notice begins a mandatory forty-five day period in which owners may protest District renewal. May 12 is the deadline notice must be mailed.
June 6, 2017- Public Meeting
Allow public testimony on the formation of the District and levy of assessments. No Board action required.
June 27, 2017- Final Public Hearing
If written protests are received from the owners of businesses in the proposed District which will pay more than fifty percent of the assessments proposed to be levied and protests are not withdrawn so as to reduce the protests to less than fifty percent, no further proceedings to levy the proposed assessment against such businesses shall be taken for a period of one year from the date of the finding of a majority protest by the Board.
At the conclusion of the public hearing to form the District, the Board may adopt, revise, change, reduce or modify the proposed assessment or the type or types of improvements and activities to be funded with the revenues from the assessments. Proposed assessments may only be revised by reducing any or all of them.
If the Board, following the public hearing, decides to form the District, the Board shall adopt a resolution of formation. |