HomeMy WebLinkAboutResolution No. 2026-44 | GTBID Resolution of Formation | Adopted 06/15/2026
RESOLUTION NO. 2026-44
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
GILROY DECLARING RESULTS OF MAJORITY PROTEST
PROCEEDINGS AND RENEWING THE GILROY TOURISM
BUISNESS IMPROVEMENT DISTRICT
WHEREAS, the City created the Gilroy Tourism Business Improvement District (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 District Law of 1994, Streets and
Highways Code § 36600 et seq., authorizes the City to renew business improvement districts
upon petition by a weighted majority of the business owners located within the boundaries of the
district; and
WHEREAS, lodging business owners who will pay more than fifty percent (50%) of the
proposed assessment, as weighted according to the amount of the assessment to be paid by the
petitioner, within the boundaries of the GTBID have petitioned the Council to renew the GTBID;
and
WHEREAS, included with the petitions was a Management District Plan (Plan) summary that
describes the proposed assessment to be levied on lodging businesses, existing and in the future,
within the GTBID to pay for sales and marketing programs, and other improvements and
activities set forth in the Plan; and
WHEREAS, the assessed lodging businesses within the GTBID will receive a specific benefit
from the activities and improvements set forth in the Plan; and
WHEREAS, on April 20, 2026, at 6:00 PM at the Council Chambers located at City Hall, 7351
Rosanna Street, Gilroy, CA 95020, the Council adopted a Resolution of Intention, Resolution No.
2026-20; and
WHEREAS, the public meeting and public hearing to consider the renewal of the GTBID have
been properly noticed in accordance with Streets and Highways Code § 36623; and
WHEREAS, on May 18, 2026, at 6:00 PM at the Council Chambers located at City Hall, 7351
Rosanna Street, Gilroy, CA 95020, the Council held a public meeting regarding the renewal of
the GTBID, and the Council heard and received objections and protests, if any, to the renewal of
the GTBID and the levy of the proposed assessment; and
WHEREAS, on June 15, 2026, at 6:00 PM at the Council Chambers located at City Hall, 7351
Rosanna Street, Gilroy, CA 95020, the Council held a public hearing regarding the renewal of
the GTBID, and the Council heard and received all objections and protests, if any, to the renewal
of the GTBID and the levy of the proposed assessment; and
Docusign Envelope ID: 6F1C9F3B-B9B5-8489-827B-13D2F143F364
Resolution No. 2026-44
GTBID Resolution of Formation
City Council Regular Meeting | June 15, 2026
Page 2 of 6
WHEREAS, the City Clerk has determined that there was no majority protest. A majority protest
is defined as written protests received from owners of businesses in the renewed GTBID which
would pay fifty percent (50%) or more of the assessments proposed to be levied. Protests are
weighted based on the assessment proposed to be levied on each lodging business; and
WHEREAS, the City bears the burden of proving by a preponderance of the evidence that an
assessment imposed for a specific benefit or specific government service is not a tax, that the
amount is no more than necessary to cover the costs to the City in providing the specific benefit
or specific government service, and that the manner in which those costs are allocated to a payor
bear a fair or reasonable relationship to the specific benefits or specific government services
received by the payor.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL THAT:
1. The recitals set forth herein are adopted by the Council as findings and they are true
and correct.
2. The GTBID is hereby renewed for 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.
3. The Plan dated May 27, 2026, is hereby adopted and approved.
4. The activities to be provided to benefit businesses in the GTBID will be funded by
the levy of the assessment. The revenue from the assessment levy shall not be used: to provide
activities that directly benefit businesses outside the GTBID; to provide activities or improvements
outside the GTBID; or for any purpose other than the purposes specified in this Resolution, the
Resolution of Intention, and the Plan. Notwithstanding the foregoing, improvements and activities
that must be provided outside the GTBID boundaries to create a specific benefit to the assessed
businesses may be provided, but shall be limited to marketing or signage pointing to the GTBID.
5. The Council finds as follows:
a) The activities funded by the assessment will provide a specific benefit to assessed
businesses within the GTBID that is not provided to those not paying the assessment.
b) The assessment is a charge imposed for a specific benefit conferred or privilege
granted directly to the payor that is not provided to those not charged, and which does not
exceed the reasonable costs to the local government of conferring the benefit or granting
the privilege.
c) The assessment is a charge imposed for a specific government service or product
provided directly to the payor that is not provided to those not charged, and which does
Docusign Envelope ID: 6F1C9F3B-B9B5-8489-827B-13D2F143F364
Resolution No. 2026-44
GTBID Resolution of Formation
City Council Regular Meeting | June 15, 2026
Page 3 of 6
not exceed the reasonable costs to the local government of providing the service or
product.
d) Assessments imposed pursuant to the GTBID are levied solely upon the assessed
business, and the business owner is solely responsible for payment of the assessment
when due. If the owner chooses to collect any portion of the assessment from a transient,
that portion shall be specifically called out and identified for the transient in any and all
communications from the business owner as the “GTBID Assessment” as specified in the
Plan.
6. The assessments levied for the GTBID shall be applied towards sales and
marketing programs to market Gilroy lodging businesses as tourist, meeting and event
destinations, and other improvements and activities as set forth in the Plan.
7. Assessments levied on lodging businesses pursuant to this resolution shall be
levied on the basis of benefit. Because the services provided are intended to increase sleeping
room rentals, an assessment based on gross short-term sleeping room rental revenue is the best
measure of benefit.
8. 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 Gilroy Visitors Bureau, Inc. dba the Gilroy Welcome Center (GWC) Board of Directors 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 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.
9. The assessments for the entire GTBID will total approximately $324,000 in year
one (1).
10. Bonds shall not be issued to fund the GTBID.
11. The GTBID shall include all lodging businesses, existing and in the future,
available for public occupancy located within the boundaries of the City. A boundary map is
attached hereto as Exhibit A and incorporated herein by reference.
12. The assessments shall be used for the purposes set forth above and any funds
remaining at the end of any year may be used in subsequent years in which the GTBID
assessment is levied as long as they are used consistent with the requirements set forth herein.
13. The assessments to fund the activities and improvements for the GTBID will be
collected by the City on a quarterly basis, and in accordance with Streets and Highways Code §
Docusign Envelope ID: 6F1C9F3B-B9B5-8489-827B-13D2F143F364
Resolution No. 2026-44
GTBID Resolution of Formation
City Council Regular Meeting | June 15, 2026
Page 4 of 6
36631.
14. The Council, through adoption of this Resolution and the Plan, has the right
pursuant to Streets and Highways Code § 36651, to identify the body that shall implement the
proposed program, which shall be the Owners’ Association of the GTBID as defined in Streets
and Highways Code § 36612. The Council has determined that the GWC shall continue to be the
GTBID Owners’ Association.
15. GWC, pursuant to Streets and Highways Code § 36650, shall cause to be prepared
a report for each fiscal year, except the first year, for which assessments are to be levied and
collected to pay the costs of the improvement and activities described in the report. The first
report shall be due after the first year of operation of the GTBID.
16. The GTBID renewed pursuant to this Resolution will be subject to any
amendments to the Property and Business Improvement District Law of 1994 (California Streets
and Highways Code § 36600 et seq.).
17. The City Clerk, or his or her designee, is directed to take all necessary actions to
complete the renewal of the GTBID and to levy the assessments.
18. This Resolution shall take effect immediately upon its adoption by the Council.
PASSED AND ADOPTED this 15th day of June 2026, by the following roll call vote:
AYES: COUNCIL MEMBERS: BRACCO, CLINE, FUGAZZI,
MARQUES, RAMIREZ, BOZZO
NOES: COUNCIL MEMBERS: NONE
ABSTAIN: COUNCIL MEMBERS: NONE
ABSENT: COUNCIL MEMBERS: HILTON
APPROVED:
Greg Bozzo, Mayor
ATTEST:
Kim Mancera, City Clerk
Docusign Envelope ID: 6F1C9F3B-B9B5-8489-827B-13D2F143F364
Resolution No. 2026-44
GTBID Resolution of Formation
City Council Regular Meeting | June 15, 2026
Page 5 of 6
CERTIFICATE OF THE CLERK
I, KIM MANCERA, City Clerk of the City of Gilroy, do hereby certify that the attached
Resolution No. 2026-44 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
Monday, June 15, 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 Wednesday, June 17, 2026.
Kim Mancera
City Clerk of the City of Gilroy
Docusign Envelope ID: 6F1C9F3B-B9B5-8489-827B-13D2F143F364
Resolution No. 2026-44
GTBID Resolution of Formation
City Council Regular Meeting | June 15, 2026
Page 6 of 6
EXHIBIT A
District Boundary Map
Docusign Envelope ID: 6F1C9F3B-B9B5-8489-827B-13D2F143F364