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Council reauthorizes Travel Costa Mesa business improvement assessment at 3%; Crowne Plaza withdraws
Summary
The council reauthorized the Travel Costa Mesa Business Improvement Area to levy a 3% assessment for FY 2026–27 and confirmed Travel Costa Mesa's annual report; the Crowne Plaza notified the organization of its intent to withdraw but staff said the withdrawal will have minimal fiscal impact to the city.
The Costa Mesa City Council reauthorized the Travel Costa Mesa Business Improvement Area (BIA) on June 2 and approved levying the annual 3% assessment for participating hotels in fiscal year 2026–27.
Assistant to the City Manager Miss Jacker noted state law requires annual reauthorization of BIAs. Plet Lombardi Freeze, president of Travel Costa Mesa, summarized the organization’s marketing, group sales, and earned media efforts for the prior year and played a brief recap video of activity.
Lombardi Freeze told council the BIA will include 10 hotels in the upcoming fiscal year after the Crowne Plaza notified Travel Costa Mesa of its intent to withdraw. Staff told council the Crowne Plaza’s withdrawal will reduce the BIA membership but have a minimal direct fiscal effect on the city’s transient occupancy tax collection. Lombardi Freeze said the organization projects approximately $3.44 million in BIA revenue for the next year and will reduce its spending estimate by about $250,000–$300,000 because of hotel renovations and the Crowne Plaza withdrawal.
Council members asked about the effect of a large hotel renovation and an uncertain economy; Lombardi Freeze said she is monitoring pace and group bookings and will provide updated budget information as it is finalized. Council voted to adopt the resolution confirming the annual report and levying the assessment; the motion carried unanimously.
The council’s action authorizes Travel Costa Mesa to continue marketing and sales programs funded by the assessment to promote occupancy and group business across participating hotels.
