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Sacramento ● Los Angeles ● San Luis Obispo
Partnerships. Progress. Prosperity.
C IV ITAS
Morro Bay TID Presentation
October 21, 2014
Overview
TID Overview
Beyond Lodging
National TID Survey Results
TID Overview
A rose by any other name..
TBID
TID
TMD
LBID
HBID
TPA
BIA
HBIA
LBIA
TPD
Characteristics of TIDs
• Assessment on room night sales • % of revenue or $ per night
Mechanism
• Cannot be diverted• Varying terms – 1-40 years
Stability
• New or existing nonprofit• DMO or hotel organization • Local Government oversight
Governance
The TID Revolution
Started in West Hollywood, 1992
Slow initial growth
Rapid expansion in last decade
Districts Now• 85 California• 17 Montana• 11 Washington• 5 South Dakota• 1 Oregon• 1 Texas• 1 New Jersey • 1 Kansas
Next Up• Pennsylvania• Oklahoma• Wisconsin• Florida• Tennessee
Morro Bay TBID
• Formed pursuant to the 1989 Act.
• Assessment is 3% of gross revenue
• Raises approximately $500,000per year
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 industryEach of these authorized uses must directly benefit the assessed hotels
California has two TID laws
• No petition• 1 year term• Annual renewal• Business only• Appointed advisory board• City can disestablish• Morro Bay TBID formed
under 89 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
1994 Law1989 Law
Governing Documents
– 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
– 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
SLO County TMDMorro Bay TBID
Proposition 26
Voters approved in November 2010-Article XIIIC of CA Constitution
All levies are a tax and require a 2/3 vote of the electorate, unless:
Seven exceptions:
• A charge imposed for a specific benefit conferred or privilege granted directly to the payor that is not provided to those not charged
• A charge imposed for a specific government service or product provided directly to the payor that is not provided to those not charged
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
Outreach
Document Preparation
Owner Approval
City Approval
Four steps to TID formation:
Formation Process
• Initiated by City Council• City Council adopts Resolution of Intention• City Council holds public hearing• City Council adopts Ordinance • Assessment collection begins
1989 Law
Formation Process
• 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
1994 Law
Assessed Businesses
The types of businesses that are typically assessed in a TID include:• Hotels/Motels/Inns• Bed & Breakfast• Vacation Rentals• RV Parks• Campgrounds
Beyond Lodging
If lodging businesses can do it, why not others?
Restaurants Retail Attraction
s Wineries Auto
• 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
Newport Beach Restaurant District
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 boardNo Brown Act
Dine Newport Beach
RBID Management
Marketing
Film Newport Beach
Attract film companies
Revenue from permits
Celebrate Newport Beach
Execute eventsDevelop new
events
Enterprise Newport Beach
B-2-B & BID marketing
Mammoth Lakes TID
Included Business Types
• Attractions• Restaurants• Retail• Transportation• Other tourism related
Challenge is linkage between programs and assessees as defined businesses
Restaurant/Retail Districts have been created
National TID Survey Results
What was the primary reason your destination formed a tourism
district?
What was the biggest challenge in forming you district?
What is the assessment rate in your tourism district?
On average destinations increased their tourism
funding by 192% after the formation of a tourism
district.
Snapshot
• “45% increase in hotel stays between 2010 and 2013.”
• “Overall results of initial 5 year district (during Recession) was approximately 20:1”
• “We have shown over 100% increase in weekend stays.”
• “More than 50% increase to TOT revenues in the past 4 years.”
Snapshot
• “Articles in the New York Times and Smithsonian Magazine which tracked over 20,000 unique visitors daily to our website.”
• “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.”
• “Increased generated room nights by 550% since 2008.”
Questions and Comments
John Lambeth, PresidentCivitas
www.civitasadvisors.com(800)999-7781
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