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Pacifica council adopts tourism marketing district; lodging to pay 0.5% assessment starting July 1
Summary
The City Council approved a new Pacifica Tourism Marketing District, a half-percent assessment on short-term lodging revenue to begin July 1 and replace the existing Business Improvement District.
The Pacifica City Council voted unanimously April 28 to establish the Pacifica Tourism Marketing District, a new assessment program to fund destination marketing and visitor services.
Under the management district plan adopted by the council, lodging businesses — including hotels, RV parks and short-term rentals — will pay a 0.5 percent assessment on room revenue. Assessments will be collected in tandem with the city’s transient occupancy tax (TOT). The district is set to begin assessments on July 1, 2025; the city’s existing Business Improvement District will expire June 30, 2025.
City staff said the district will operate for an initial five-year term and could be renewed. Staff and consultants told council the funds will be used for marketing, sales promotion and destination development to increase overnight stays and related spending in Pacifica. Once the district is established, the council directed staff to issue an RFP to select a nonprofit owners’ association to manage the district. That nonprofit will be required to comply with the Brown Act and the Public Records Act and to submit annual reports to council.
Assistant City Manager Julia Carter and city consultant Emily Brown presented the revised management district plan and said staff had conducted outreach, including an informational webinar for lodging operators. Carter told council notices were mailed to all current lodging businesses listed in the district plan; staff reported a small number of questions at the webinar but no written protests were submitted.
Councilmember Greg Beier moved to adopt the resolution; the motion passed unanimously. Councilmembers and commenters asked for clear public information about which lodging businesses will be assessed and how the nonprofit managing organization will be chosen. Staff said the assessment list is a snapshot of existing lodging businesses and that future lodging establishments will also be subject to the assessment once the district is in place.
Staff said assessment revenue will begin collecting July 1 and the city will work with platforms and lodging operators to ensure proper monthly remittance.
