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Council declares intent to form Pacifica Tourism Marketing District; hotels, STRs to get notice
Summary
Council set public meeting and final hearing dates to form a Tourism Marketing District under California's 1994 law and asked staff whether to proceed with a $1 per‑stay or a lower percentage‑based assessment; council adopted the resolution of intent unanimously.
The City Council on March 10 adopted a resolution of intent to form the Pacifica Tourism Marketing District (PTMD) under the Property and Business Improvement District Law of 1994 and set a public meeting for March 24 and a final hearing for April 28.
Assistant City Manager Yolia Carter introduced the proposal and said the PTMD would modernize the city’s current Pacifica Hotel Business Improvement District (formed under the 1989 law) and allow an owners’ association — typically a nonprofit composed of lodging stakeholders — to manage marketing and destination development programs. Emily Brown, project manager with Civitas, said the 1994 law requires a petition (majority‑support by assessment payers) to form the district but allows an initial five‑year term and governance by a private nonprofit subject to the Brown Act and Public Records Act.
A steering committee of lodging owners earlier submitted signed petitions representing five of eight hotels, which allowed staff to start the legal process. The board initially favored a 1% assessment but at a January meeting asked staff to consider an alternative dollar‑per‑night charge. Staff presented two assessment models for council review: a percentage‑based model (example: 0.5% of gross room revenue yielding an estimate of roughly $143,000 annually) and a flat dollar‑per‑night model (the board’s earlier direction was $1 per room per night; that option is projected to generate about $125,000 under current occupancy assumptions). Staff noted the percentage option could be more equitable across hotels and short‑term rentals because it scales with room revenue.
Council adopted the resolution of intent unanimously and asked staff whether to present the board’s $1 per‑night recommendation at the hearing or to return to the HBID board with the newer revenue comparisons (0.5% estimate) before the April 28 final hearing. Staff said notices will be mailed to all lodging owners and short‑term rental operators with opportunities to protest or testify; council retains authority at the final hearing to reduce (but not increase) the proposed assessment.
