Item 23 - Resolution of Intention to Renew the Santa Ana Tourism Marketing District

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SATMD Management District Plan 3 February 27, 2025 I. OVERVIEW Developed by Santa Ana lodging businesses and Travel Santa Ana (TSA), the Santa Ana Tourism Marketing District (SATMD) is an assessment district proposed to continue to provide specific benefits to payors by funding Sales and Marketing promotion efforts for assessed businesses. This approach has been used successfully in other destination areas throughout the country to provide the benefit of additional room night sales directly to payors. The SATMD was initially created in 2021 for a five (5) year term. TSA and Santa Ana lodging businesses now wish to renew the SATMD for an additional ten (10) year term. Location: The renewed SATMD includes all lodging businesses with seventy (70) rooms or more, existing and in the future, available for public occupancy located within the boundaries of the City of Santa Ana (City), as shown on the map in Section IV. Services: The SATMD is designed to provide specific benefits directly to payors by increasing awareness and demand for room night sales. Sales and Marketing promotions programs will increase demand for overnight tourism and market payors as tourist, meeting and event destinations, thereby increasing demand for room night sales. Budget: The total SATMD annual assessment budget for the initial year of its ten (10) year operation is anticipated to be approximately $1,600,000. A similar assessment budget is expected to apply to subsequent years, but this assessment budget is expected to fluctuate as room sales do, as businesses open and close, and if the assessment rate is increased or decreased pursuant to this Management District Plan (Plan). Cost: The annual assessment rate is two percent (2%) of gross short-term sleeping room rental revenue. Every two (2) years during the operation of the SATMD, the assessment rate may be increased by the TSA Board to a maximum rate of four percent (4%) of gross short-term sleeping room rental revenue. 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 two-year period shall be one-half of one percent (0.5%). Based on the benefit received, assessments will not be collected on: stays of more than thirty (30) consecutive days; stays by any person as to whom, or any occupancy as to which, it is beyond the power of the City to impose the assessment herein provided; stays by any officer or employee of a foreign government who is exempt by reason of express provision of federal law or international treaty; and stays by any federal or state officer or employee while on official business only and when payment for such occupancy is made directly to the operator by duly authorized voucher payment from a governmental accounting office. This exemption does not exempt a transient who is employed by the United States government or the state or their respective instrumentalities from payment of the assessment when the payment is later to be reimbursed by the United States government or the state or their respective instrumentalities. Collection: The City will be responsible for collecting the assessment on a monthly basis (including any delinquencies, interest, and overdue charges) from each assessed lodging business EXHIBIT 2