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HomeMy WebLinkAboutResolution No. 2026-20 | Resolution of Intent GTBID | Adopted 04/20/2026RESOLUTION NO. 2026-20 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GILROY DECLARING ITS INTENTION TO RENEW THE GILROY TOURISM BUSINESS IMPROVEMENT DISTRICT (GTBID) AND FIXING THE TIME AND PLACE OF A PUBLIC MEETING AND A PUBLIC HEARING THEREON AND GIVING NOTICE THEREOF WHEREAS, the City created the GTBID on September 17, 2012 by Resolution No. 2012-36 for an initial five (5) year term; and WHEREAS, the GTBID was subsequently renewed on October 17, 2016 by Resolution No. 2016-54 for an additional ten (10) year term, which ends on December 31, 2027; 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, Gilroy Visitors Bureau, Inc. dba the Gilroy Welcome Center (GWC), lodging business owners, and representatives from the City have met to consider the renewal of the GTBID; and WHEREAS, lodging businesses worked with GWC to develop 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 businesses who will pay more than fifty percent (50%) of the assessment under the GTBID have petitioned the 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 Council finds that assessed 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 Council accepts the petitions and adopts 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 Council finds that the Plan satisfies all requirements of Streets and Highways Code §36622. 4. The Council declares its intention to renew the GTBID and to levy and collect assessments on assessed businesses within the GTBID boundaries pursuant to the Property and Business Improvement District Law of 1994. Docusign Envelope ID: 926F9F6E-95F9-8027-812D-A0346C1919ED Resolution No. 2026-20 Resolution of Intent GTBID City Council Regular Meeting | April 20, 2026 Page 2 of 5 5. The GTBID shall include all lodging businesses with ten (10) rooms or more, existing and in the future, available for public occupancy located within the boundaries of the City, as shown in the map attached as Exhibit A. 6. The name of the district shall continue to be the Gilroy Tourism Business Improvement District. 7. The initial annual assessment rate is two percent (2%) of gross short-term sleeping room rental revenue. During the GTBID’s ten (10) year term, the assessment rate may be increased by the GWC’s Board to a maximum rate of five percent (5%) of gross short-term sleeping room rental revenue for assessed lodging businesses. If the assessment rate is increased, it may subsequently be decreased, but shall not be decreased below a minimum of two percent (2%) of gross short-term sleeping room rental revenue. The maximum increase or decrease in any year shall be two percent (2%). Based on the benefit r eceived, 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. 8. The assessments levied for the GTBID shall be applied toward Sales and Marketing programs to market assessed businesses in the City 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, 2028, or as soon as possible thereafter, and ending ten (10) years from its start date, 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 renewing the GTBID and levying assessments are set for May 18, 2026 at 6:00 PM, or as soon thereafter as the matter may be heard, at the Council Chambers located at City Hall, 7351 Rosanna Street, Gilroy, CA 95020. 12. The time and place for the public hearing to renew the GTBID and the levy of assessments are set for June 15, 2026 at 6:00 PM, or as soon thereafter as the matter may be heard, at the Council Chambers located at City Hall, 7351 Rosanna Street, Gilroy, CA 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 May 1, 2026. 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 assessed businesses within the renewed GTBID that will pay fifty percent (50%) or more of the estimated total assessment of the entire GTBID, no further proceedings to renew the GTBID shall occur for a period of one (1) year. Docusign Envelope ID: 926F9F6E-95F9-8027-812D-A0346C1919ED Resolution No. 2026-20 Resolution of Intent GTBID City Council Regular Meeting | April 20, 2026 Page 3 of 5 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 this 20th day of April 2026, by the following roll call vote: AYES: COUNCIL MEMBERS: BRACCO, CLINE, FUGAZZI, HILTON, MARQUES, RAMIREZ, BOZZO NOES: COUNCIL MEMBERS: NONE ABSTAIN: COUNCIL MEMBERS: NONE ABSENT: COUNCIL MEMBERS: NONE APPROVED: Greg Bozzo, Mayor ATTEST: _______________________ Kim Mancera, City Clerk Docusign Envelope ID: 926F9F6E-95F9-8027-812D-A0346C1919ED Resolution No. 2026-20 Resolution of Intent GTBID City Council Regular Meeting | April 20, 2026 Page 4 of 5 CERTIFICATE OF THE CLERK I, Kim Mancera, City Clerk of the City of Gilroy, do hereby certify that the attached Resolution No. 2026-20 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 held on Council held Monday, April 20, 2026, with a quorum present. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Official Seal of the City of Gilroy this Tuesday, April, 21 2026. ____________________________________ Kim Mancera City Clerk of the City of Gilroy Docusign Envelope ID: 926F9F6E-95F9-8027-812D-A0346C1919ED Resolution No. 2026-20 Resolution of Intent GTBID City Council Regular Meeting | April 20, 2026 Page 5 of 5 EXHIBIT A District Boundaries Docusign Envelope ID: 926F9F6E-95F9-8027-812D-A0346C1919ED