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Sacramento ● Los Angeles ● San Luis Obispo

CIVITAS. Partnerships. Progress. Prosperity. Sacramento ● Los Angeles ● San Luis Obispo. Morro Bay TID Presentation. October 21, 2014. Overview. TID Overview. A rose by any other name. TBID. LBID. BIA. TID. LBIA. TMD. HBID. TPD. HBIA. TPA. Characteristics of TIDs.

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Sacramento ● Los Angeles ● San Luis Obispo

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  1. CIVITAS Partnerships. Progress. Prosperity. Sacramento ● Los Angeles ● San Luis Obispo Morro Bay TID Presentation October 21, 2014

  2. Overview

  3. TID Overview

  4. A rose by any other name.. TBID LBID BIA TID LBIA TMD HBID TPD HBIA TPA

  5. Characteristics of TIDs

  6. The TID Revolution

  7. Morro Bay TBID • Formed pursuant to the 1989 Act. • Assessment is 3% of gross revenue • Raises approximately $500,000per year

  8. Morro Bay TBID Pursuant to the Morro Bay Ordinance, the TBID is authorized to use funds for: • The general promotion of tourism within the district • The marketing of conference, group, and film business • The marketing of the district to the travel industry Each of these authorized uses must directly benefit the assessed hotels

  9. California has two TID laws 1994 Law 1989 Law 50% + 1 petition 5 or 10 year term Annual report Business or property Non-profit management Payors can disestablish SLO County TMD formed under 94 law • No petition • 1 year term • Annual renewal • Business only • Appointed advisory board • City can disestablish • Morro Bay TBID formed under 89 law

  10. Governing Documents SLO County TMD Morro Bay TBID Formed pursuant to the 1994 law Governed by the management district plan and the annual report Management district plan allows for: Advertising and promotions programs, sales programs and marketing programs • Formed pursuant to the 1989 law • Governed by Morro Bay Ordinance No. 546 and the annual report • Ordinance allows for: • General promotion of tourism • Marketing of conference, group and film businesses • Marketing the district to the travel industry

  11. Proposition 26

  12. AB 483 (Ting) • Introduced 8/13/13 • Approved by legislature – 2/3 vote • Signed by Governor 10/4/13 • Urgency legislation – effective immediately • Adds two definitions: • Specific Benefit • Specific Government Service

  13. Four steps to TID formation:

  14. Formation Process 1989 Law • Initiated by City Council • City Council adopts Resolution of Intention • City Council holds public hearing • City Council adopts Ordinance • Assessment collection begins

  15. Formation Process 1994 Law • Develop management district plan • Submit 50% + 1 petition to City • City Council adopts Resolution of Intention • City Council holds public meeting and public hearing • City Council adopts Resolution of Formation • Assessment collection begins

  16. Assessed Businesses The types of businesses that are typically assessed in a TID include: • Hotels/Motels/Inns • Bed & Breakfast • Vacation Rentals • RV Parks • Campgrounds

  17. Beyond Lodging

  18. If lodging businesses can do it, why not others?

  19. Newport Beach Restaurant District • Established in 1996 • Annual budget: $315,000 • Assessment rate based on number of employees • Services include advertising campaigns, direct mailers, online reservation system, dining guide productions, sponsorship of restaurant week • Website an important part of promotions – www.newportbeachdining.com • Five year contract with the city for funding

  20. Newport Organizational Chart Visit Newport Beach 501 (c)(6) 6-member board TBID management/Brown Act Newport Beach Foundation 501(c)(3) Fundraising Arm (Potential Future Organization) Newport Beach & Co. 501(c)(6) TOT Funds 24-member board No Brown Act Celebrate Newport Beach Execute events Develop new events Film Newport Beach Attract film companies Revenue from permits Dine Newport Beach RBID Management Marketing Enterprise Newport Beach B-2-B & BID marketing

  21. Mammoth Lakes TID

  22. National TID Survey Results

  23. What was the primary reason your destination formed a tourism district?

  24. What was the biggest challenge in forming you district?

  25. What is the assessment rate in your tourism district?

  26. On average destinations increased their tourism funding by 192% after the formation of a tourism district.

  27. Snapshot • “We have shown over 100% increase in weekend stays.” • “More than 50% increase to TOT revenues in the past 4 years.” • “45% increase in hotel stays between 2010 and 2013.” • “Overall results of initial 5 year district (during Recession) was approximately 20:1”

  28. Snapshot • “Articles in the New York Times and Smithsonian Magazine which tracked over 20,000 unique visitors daily to our website.” • “Increased generated room nights by 550% since 2008.” • “More than 800% ROI on TID funds to gross revenue generated by increased room night sales. Group bookings went from 10K a year to nearly 60K.”

  29. Questions and Comments John Lambeth, President Civitas www.civitasadvisors.com (800)999-7781

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