Council accepts Hotel Business Improvement District report, sets hearing to continue levy

The Half Moon Bay City Council accepted the 2024 annual report for the Hotel Business Improvement District (BID) on May 20 and adopted a resolution of intention to levy the BID assessment for fiscal year 2025–26, setting a public hearing for June 3.

Irma Acosta, an administrative analyst in the city’s Economic and Community Vitality division, summarized the BID background: the district collects a nightly assessment paid by hotels (historically $1 per room per night) and directs those funds to destination marketing managed by the Coastside Chamber of Commerce. TAC (transient occupancy tax) remains a critical city revenue, comprising around 40% of the general fund, and hotels historically account for roughly 95% of TOT collections.

Chrislyn Geith, CEO of the Coastside Chamber of Commerce (the BID’s designated managing agency), presented the BID annual report and marketing results. Geith told council the chamber’s mission is to use BID funds to increase midweek occupancy and marketing reach; the chamber reported a relaunch of the tourism website with 501,000 users over the year, 71 media articles generated, and a continuing focus on attracting corporate retreats while maintaining leisure visitors.

Geith said the BID membership agreed in February 2024 to increase the assessment to $2 per room per night to fund enhanced marketing; the annual report shown to council accounted only for the prior $1 assessment because the $2 rate took effect in January and collections had not yet fully appeared in the 2024 data.

Councilmember moved to accept the report and adopt the resolution of intent; the council directed the city clerk to schedule the public hearing for June 3, 2025. The resolution initiates the formal hearing process required for the district to continue levying the assessment for the coming fiscal year.

Council members asked about hotel feedback and marketing strategy. Geith said the chamber coordinates quarterly with hotels, the city and vendors and uses website metrics, visitor studies and cooperative marketing to target leisure and (when feasible) corporate markets. The chamber reported discussing a potential midweek destination marketing campaign and finishing a visitor spending study this summer.

The council’s action advances the BID’s administrative process: the public hearing will allow hotels, businesses and members of the public to comment before the city considers final adoption of the assessment for FY 2025–26.