TO: Board of Supervisors
FROM: Ryan J. Alsop, County Executive Officer
REPORT BY: Becky Craig, Assistant County Executive Officer
SUBJECT: Resolution of Intent to Renew the Napa Valley Tourism Improvement District and Related Actions
RECOMMENDATION
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Adopt a Resolution declaring Napa County’s intention to renew the Napa Valley Tourism Improvement District for an additional ten years and fix the time and place of a public meeting and public hearing on the proposal; adopt a Resolution requesting that affected municipalities consent to the renewal; and receive a presentation from Visit Napa Valley. ($11,000,000 annual revenue; Napa Valley Tourism Improvement District; Budgeted; Mandatory)
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BACKGROUND
Napa County established the Napa Valley Tourism Improvement District (“NVTID” and “District”) in 2010 for a five year-term (from 2010 to 2015) and renewed NVTID in 2014 for a ten-year term, from 2015 to 2025. The NVTID was formed under the provisions of the Property and Business Improvement District Law of 1994 (Streets and Highways Code Section 36600 et seq.) The NVTID is a business-based benefit assessment district that funds valley-wide marketing and sales as well as local jurisdictions’ destination marketing efforts for Napa Valley lodging businesses who pay Transient Occupancy Taxes in both the incorporated cities and towns as well as the unincorporated areas.
Today’s action will initiate the process to renew the 2% tourism assessment on applicable lodging activity for a ten-year term, beginning on June 16, 2025 and ending on June 15, 2035. As required by the Property and Business Improvement District Law of 1994, petitions have been received from lodging businesses paying in excess of 50% of the proposed assessments requesting the NVTID be renewed for an additional ten-year term. Visit Napa Valley and its consultant, Civitas, solicited and received the petitions. Report of the ballots received indicates more than 70% support (see Petition Results, attached).
Adopting the attached resolution would declare the Board’s intention to renew the NVTID. It will also set a time and place for a public meeting and a public hearing on the proposal. A public meeting pursuant to Government Code Section 54954.6 will be held on December 3, 2024 to allow public testimony regarding the renewal of the NVTID and the levy of assessments. Subsequently, on December 17, 2024, the Board will hold a public hearing to receive any written protests. If the protests are less than 50% of the proposed assessment levy, the Board may officially renew the NVTID and levy the proposed District assessment for the renewed term. If renewed, the Plan projects District revenues approximating $11 million annually. The County currently receives approximately $500,000 annually for specific promotion of lodging entities located in the unincorporated area.
The proposed Management District Plan (“Plan”) is attached. The Plan includes the proposed boundary, a service plan, budget, and proposed means of governance. The Plan recognizes the Napa Valley Tourism Corporation (“NVTC”) as the owners’ association charged with governance of the District. NVTC in turn contracts with Visit Napa Valley to direct daily operations. NVTC met September 24, 2024, and voted 9-1 with four absences to recommend initiation of the renewal process.
Changes from the current 2015-2025 Plan proposed in the 2025-2035 Plan include (1) providing NVTC the authority to increase the assessment by 0.5%, up to 3%, at periodic intervals during the ten-year term; (2) inclusion of residential vacation/short-term rentals; and (3) revision of the Administration + Audit allocation. NVTC may recommend revisions to the Plan for the Board’s consideration both prior to adoption and during its ten-year term.
Visit Napa Valley’s President and CEO, Linsey Gallagher, will provide an annual report of the organization’s activities and impact.
This item complies with the voting requirements of Article XIIIC of the California Constitution because it is a charge imposed for a specific government service or product provided directly to the payor that is not provided to those not charged and which does not exceed the reasonable costs to Napa County for providing the service or product (See Government Code Section 53758).
Requested Actions:
1. Adopt a Resolution declaring Napa County’s intention to renew the Napa Valley Tourism Improvement District for an additional ten years and fix the time and place of a public meeting and public hearing on the proposal; and
2. Adopt a Resolution requesting that affected municipalities consent to the renewal; and
3. Receive a presentation from Visit Napa Valley.
FISCAL IMPACT
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Is there a Fiscal Impact? |
Yes |
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Is it currently budgeted? |
Yes |
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Is it Mandatory or Discretionary? |
Mandatory |
ENVIRONMENTAL IMPACT
ENVIRONMENTAL DETERMINATION: The proposed action is not a project as defined by 14 California Code of Regulations 15378 (State CEQA Guidelines) and therefore CEQA is not applicable.