Resolution 2016-43RESOLUTION NO. 2016-43
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GILROY
DECLARING ITS INTENTION TO RENEW THE GILROY TOURISM
BUSINESS IMPROVEMENT DISTRICT AND FIXING THE TIME AND
PLACE OF A PUBLIC MEETING AND A PUBLIC HEARING THEREON
AND GIVING NOTICE THEREOF
WHEREAS, the City of Gilroy created the Gilroy Tourism Business Improvement
District (GTBID) in 2012 by Resolution No. 2012 -36; and
WHEREAS, the GTBID was created for a five (5) year term which ends on December
31, 2017; and
WHEREAS, the Property and Business Improvement Law of 1994, Streets and
Highways Code § 36600 et seq., authorizes the City to renew business improvement districts for
the purposes of promoting tourism; and
WHEREAS, the Gilroy Welcome Center, lodging business owners, and representatives
from the City of Gilroy have met to consider the renewal of the Gilroy Tourism Business
Improvement District (GTBID); and
WHEREAS, the Gilroy Welcome Center has drafted a Management District Plan (Plan)
which sets forth the proposed boundary of the GTBID, a service plan and budget, and a proposed
means of governance; and
WHEREAS, lodging business who will pay more than fifty percent (50 %) of the
assessment under the GTBID have petitioned the City Council to renew the GTBID.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL THAT:
1. The recitals set forth herein are true and correct.
2. The City Council finds that lodging businesses that will pay more than fifty percent
(50 %) of the assessment proposed in the Plan have signed and submitted petitions in
support of the renewal of the GTBID. The City Council accepts the petitions and adopts
RESOLUTION NO. 2016-43
this Resolution of Intention to renew the GTBID and to levy an assessment on certain
lodging businesses within the GTBID boundaries in accordance with the Property and
Business Improvement District Law of 1994.
3. The City Council finds that the Plan satisfies all requirements of Streets and Highways
Code §36622.
4. The City Council declares its intention to renew the GTBID and to levy and collect
assessments on lodging businesses within the GTBID boundaries pursuant to the Property
and Business Improvement District Law of 1994.
5. The GTBID shall include all lodging businesses located within the boundaries of the City
of Gilroy, as shown in the map attached as Exhibit A.
6. The name of the district shall be Gilroy Tourism Business Improvement District
(GTBID).
7. The initial annual assessment rate is two percent (2 %) of gross short-term room rental
revenue. Based on the benefit received, assessments will not be collected on: stays of
more than thirty (30) consecutive days; and stays by any officer or employee of a foreign
government who is exempt by reason of express provision of federal law or international
treaty. During the ten (10) year term, the assessment rate may be increased by the Gilroy
Welcome Center's Board to a maximum of five percent (5 %) of gross short-term room
rental revenue as described in Section W of the Plan. The assessment rate may also be
decreased by the Gilroy Welcome Center's Board, but shall not drop below two percent
(2 %) of gross short-term room rental revenue.
8. The assessments levied for the GTBID shall be applied toward sales promotion and
marketing programs to market assessed lodging businesses in Gilroy as tourist, meeting,
and event destinations, as described in the 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 consistent with the requirements of this resolution and the Plan.
9. The renewed GTBID will have a ten (10) year term, beginning January 1, 2018 through
December 31, 2027, unless renewed pursuant to Streets and Highways Code § 36660.
10. Bonds shall not be issued.
11. The time and place for the public meeting to hear testimony on establishing the GTBID
and levying assessments are set for September 12, 2016, at 6:00 PM, or as soon thereafter
as the matter may be heard, at the Council Chambers located at 7351 Rosanna. Street,
Gilroy, CA 95020.
12. The time and place for the public hearing to establish the GTBID and the levy of
assessments are set for October 3, 2016, at 6:00 PM, or as soon thereafter as the matter
may be heard, at the Council Chambers located at 7351 Rosanna Street, Gilroy, CA
RESOLUTION NO. 2016 -43
95020. The City Clerk is directed to provide written notice to the lodging businesses
subject to assessment of the date and time of the meeting and hearing, and to provide that
notice as required by Streets and Highways Code § 36623, no later than August 19, 2016.
13. At the public meeting and hearing the testimony of all interested persons for or against
the renewal 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 more than fifty percent (50 %) of the estimated total
assessment of the entire GTBID, no further proceedings to renew the GTBID shall occur
for a period of one year.
14. The complete Plan is on file with the City Clerk and may be reviewed upon request.
15. This resolution shall take effect immediately upon its adoption by the City Council.
PASSED AND ADOPTED on this 1 st day of August, 2016 by the following roll call vote:
AYES: COUNCILMEMBERS: BRACCO, HARNEY, LEROE- MUNOZ,
TUCKER, VELASCO and WOODWARD
NOES: COUNCILMEMBERS: NONE
ABSENT: COUNCILMEMBERS: AULMAN
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RESOLUTION NO. 2016-43
APPENDIX A - BOUNDARY MAP
The following page provides the Boundary Map that outlines the boundaries of the GTBID.
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I, SHAWNA FREELS, City Clerk of the City of Gilroy, do hereby certify that the
attached Resolution No. 2016 -43 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 1St day of August, 2016 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 2nd da"f August, 2016.
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of the City of Gilroy
(Seal)