Resolution 2012-34RESOLUTION NO. 2012-34
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
GILROY DECLARING ITS INTENTION TO ESTABLISH THE
CITY OF GILROY TOURISM BUSINESS IMPROVEMENT
DISTRICT AND TO LEVY AND COLLECT ASSESSMENTS
WITHIN SUCH DISTRICT PURSUANT TO THE PROPERTY
AND BUSINESS IMPROVEMENT DISTRICT LAW OF 1994,
PART 7 OF DIVISION 18 OF THE CALIFORNIA STREETS AND
HIGHWAYS CODE AND APPOINTING A TIME AND PLACE
FOR A PUBLIC MEETING AND PUBLIC HEARING THEREON
AND GIVING NOTICE THEREOF
WHEREAS, the Property and Business Improvement District Law of 1994, Part 7 of
Division 18 of the California Streets and Highways Code, commencing with Section 36600, (the
"PBID Law ") authorizes cities to establish property and business improvement districts for the
purposes of funding tourism; and
WHEREAS, the PBID Law authorizes cities to levy and collect assessments on
businesses within such districts for the purpose of providing services and activities to promote
tourism that specially benefit businesses within such districts; and
WHEREAS, Section 54954.6 of the California Government Code imposes certain
procedural and substantive requirements relating to the levy of new or increased business
assessments; and
WHEREAS, the Gilroy Welcome Center, owners of lodging businesses, and
representatives from the City of Gilroy (the "City ") have met to consider the formation of a
tourism business improvement district; and
WHEREAS, a management district plan entitled "City of Gilroy Tourism Business
Improvement District Management District Plan" dated June 2012, (the "Management District
Plan") has been prepared and submitted to the City Clerk, containing all of the information
required by Section 36622 of the PBID Law, including a description of the boundaries of the
RESOLUTION NO. 2012 -34
proposed GTBID, the activities and services proposed for the GTBID, and the cost of such
services and activities; and
WHEREAS, written petitions meeting the requirements of Section 36621 of the PBID
Law (the "Petitions ") have been submitted to the City Clerk by owners of lodging businesses
within the City requesting the Gilroy City Council (the "City Council ") to initiate proceedings
pursuant to the PBID Law to establish a tourism business improvement district to be named the
"City of Gilroy Tourism Business Improvement District" (the "GTBID "); and
WHEREAS, such Petitions signed by owners of lodging businesses in the proposed
GTBID who will pay more than fifty percent (50 %) of the assessments proposed to be levied, as
determined in accordance with Section 36621 of the PBID Law, petition the City Council to
establish the GTBID.
NOW, THEREFORE, BE IT RESOLVED as follows:
Section 1. The recitals set forth herein are true and correct.
Section 2. The City Council finds that the lodging businesses that will pay more than
fifty percent (50 %) of the assessment proposed in the Management District Plan have signed and
submitted petitions in support of the formation of the GTBID. The City Council accepts the
signed petitions submitted by the lodging businesses.
Section 3. The City Council finds that the Management District Plan satisfies all
requirements of Section 36622 of the PBID Law.
Section 4. The City Council declares its intention to establish the GTBID and to levy and
collect assessments on lodging businesses within the GTBID boundaries pursuant to the PBID
Law.
Section 5. The boundaries of the GTBID shall be the boundaries of the City of Gilroy, as
set forth in the attached map, incorporated herein as `Exhibit A ".
RESOLUTION NO. 2012-34
Section 6. The name of the tourism business improvement district shall be the City of
Gilroy Tourism Business Improvement District.
Section 7. Annual assessment rates are 2.0% of Taxable Rents, as reported on the City's
Quarterly Transient Occupancy Tax reporting form. Based on the improvements, services and
activities to be provided by the GTBID and the benefit received, assessments will not be
collected on lodging stays of more than 30 consecutive days, nor on stays pursuant to contracts
executed prior to January 1, 2013.
Section 8. The assessments levied on behalf of the GTBID shall be applied toward sales
promotion and marketing programs to market the lodging businesses and the City as an overnight
tourist destination, in order to increase overnight room sales as set forth in Management District
Plan. Funds remaining at the end of any year may be used in subsequent years in which GTBID
assessments are levied as long as they are used in a manner consistent with the requirements of
the Management District Plan.
Section 9. The GTBID will have a five year term, commencing January 1, 2013, unless
renewed pursuant to Section 36660 of the PBID Law.
Section 10. Bonds will not be issued by or on behalf of the GTBID.
Section 11. The time and place for the public meeting on establishing the GTBID and the
levy of assessments are set for August 6, 2012, at 6:00 p.m., or as soon thereafter as the matter
may be heard, in the Gilroy Council Chambers, City Hall, 7351 Rosanna Street, Gilroy,
California.
Section 12. The time and place for the public hearing to establish the GTBID and the
levy of assessments are set for September 10, 2012, at 6:00 p.m., or as soon thereafter as the
matter may be heard, in the Gilroy Council Chambers, City Hall, 7351 Rosanna Street, Gilroy,
California. The City Clerk, or her designee, is directed to provide written notice to the lodging
RESOLUTION NO. 2012-34
businesses subject to assessment of the date and time of the hearing and to provide that notice as
required by Section 36623 of the PBID Law.
Section 13. At the public hearing the testimony of owners of lodging businesses for or
against the establishment of the GTBID may be received. If at the conclusion of the public
hearing there are of record written protests by the owners of the lodging businesses within the
proposed GTBID that will pay fifty percent (50 %) or more of the estimated total assessment of
the entire GTBID, no further proceedings to establish the GTBID shall occur for a period of one
year.
Section 14. The City Clerk shall make the Management District Plan and other
documents related to the proposed GTBID available for public inspection in the office of the
City Clerk during normal business hours.
PASSED AND ADOPTED this 16'h day of July, 2012 by the following roll call vote:
AYES: COUNCILMEMBERS: ARELLANO, BRACCO, DILLON, LEROE-
MUNOZ, TUCKER, WOODWARD and PINHEIRO
NOES: COUNCILMEMBERS: NONE
ABSENT: COUNCILMEMBERS: NONE
ATTEST:
Freels,
APPROVED:
The Pinheiro, Mayor
RESOLUTION NO. 2012-34
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I, SHAWNA FREELS, City Clerk of the City of Gilroy, do hereby certify that the
attached Resolution No. 2012 -34 is an original resolution, or true and correct copy of a city
resolution, duly adopted by the Council of the City of Gilroy at a regular meeting of said Council
held on the 16ffi day of July, 2012, at which meeting a quorum was present.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Official Seal of
the City of Gilroy this 18'x` da o July, 2012.
Y/.i
vna Freels, CMC--/
Clerk of the City of Gilroy
(Seal)