REPORT TO COUNCIL
SUBJECT
Title
Hotel Tourism Business Improvement District Update (Information Only)
Report
BACKGROUND
On July 17, 2018, the Council asked staff to work with the Sunnyvale Chamber of Commerce and hotels in gathering information regarding the available options for hotels to increase weekend occupancy.
DISCUSSION
For the past year, the Chamber of Commerce Director (Director) had discussions with most hotel managers/operators to gauge interest in forming a Tourism Business Improvement District (TBID) in Sunnyvale. City staff attended four meetings that included the Director and several hotel managers/operators to discuss the possibility of forming a TBID. City staff also met four additional times with hotel operators/managers to discuss the TBID formation.
In California, TBIDs are formed by a majority vote of the assessed hotels and with Council's approval. TBIDs are subject to laws designed to ensure approval by hotel owners paying the assessment, and accountability by the managing body to those hotel owners. Funds raised through TBIDs are collected by the local government agency and returned to the managing body, usually a non-profit corporation, to manage those funds on behalf of the assessed hotels.
The hotel managers/operators attending the meetings were supportive of moving forward with "something", but had different ideas on how to move forward. Some hotel managers/operators were focused on weekend occupancy and supported concentrated marketing efforts while others thought focusing on providing a full-service experience for their guests was critical. The full-service experience included shuttles to Downtown Sunnyvale, the Caltrain Station, and employment areas. The hotel managers/operators attending the meetings felt that the City did not adequately hear their concerns regarding the Transient Occupancy Tax measure the Council placed on the 2018 Ballot and felt they need to unite to speak as a group regarding proposed City policies o...
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