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RES-2025-088RESOLUTION NO. 2025-088 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM DECLARING ITS INTENTION TO ADOPT MODIFICATIONS TO THE ANAHEIM TOURISM IMPROVEMENT DISTRICT RELATING TO EXPANDING BOUNDARIES; REVISING ACTIVITIES AND IMPROVEMENTS INCLUDING ADDING HOUSING RELATED ACTIVITIES AND IMPROVEMENTS; CHANGING ALLOCATION OF ASSESSMENT FUNDS TO PROVIDE FUNDING FOR HOUSING -RELATED ACTIVITIES; ESTABLISHING A HOUSING COMMITTEE; ADDING VACATION OWNERSHIP RESORTS TO BUSINESSES SUBJECT TO THE ASSESSMENT; AND ORDERING AND SETTING A TIME AND PLACE FOR A PUBLIC MEETING AND HEARING ON PROPOSED MODIFICATIONS WHEREAS, the City Council (the "City Council") of the City of Anaheim (the "Cit ") established the Anaheim Tourism Improvement District (the "ATID") through the adoption of a Resolution of Formation (Resolution No. 2010-151) on September 14, 2010. ("Resolution of Formation"). The ATID was established in accordance with City Ordinance No. 6174 (the "Enabling Ordinance"), which authorizes the formation of tourism improvement districts and the assessment on businesses within such districts to aid in the promotion of tourism and physical and other improvements and activities within local tourism improvement districts that specifically benefit certain businesses located within such districts. The Enabling Ordinance is codified in Anaheim Municipal Code Chapter 2.14; and WHEREAS, as part of the formation of the ATID, the City Council adopted the Anaheim Tourism Improvement District of 2010 Management Plan dated September 2, 2010 ("2010 Management Plan"). The 2010 Management Plan contains the information required in Anaheim Municipal Code section 2.14.050; and WHEREAS, the City Council desires at this time to make certain modifications to Anaheim Municipal Code Chapter 2.14, the Resolution of Formation and the 2010 Management Plan, as described below, to further promote the ATID as a premier tourism and convention district within the boundaries of the City and, specifically, to further aid in the promotion of local tourism and convention -related programs and activities for hotels located in the proposed ATID area; and WHEREAS, the City Council, among other modifications, desires to add housing programs for ATID assessed businesses and their employees with funding from ATID assessments to address the significant need for workforce housing. The City proposes to use a portion of the existing ATID assessment to fund ATID Area Workforce Housing Programs through a segregated fund established in the Anaheim Local Housing Trust Fund. WHEREAS, evidence showing the modified activities, improvements, services and programs, including housing, will provide specific benefit to the assessed businesses within the ATID boundaries is provided in the record and information presented to the City Council; and WHEREAS, modifications to the ATID are limited to those described in this Resolution of Intent as set forth below. Portions of the Enabling Ordinance, Resolution of Formation and Management Plan not specifically addressed in the proposed modifications remain in place and are not proposed to be amended, including, but not limited to the following: the name of the ATID, the amount (two percent (2%), timing and method of collecting the assessment, and the duration of the district. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Anaheim as follows: 1. The City Council declares its intention to adopt modifications to the Anaheim Municipal Code Chapter 2.14, the Resolution of Formation and the 2010 Management Plan relating to the ATID as generally described below. The proposed revisions to Anaheim Municipal Code Chapter 2.14 are shown in the redline document attached hereto as Exhibit B. The proposed revisions to the 2010 Management Plan are shown in the redline document, entitled First Amended and Restated Anaheim Tourism Improvement District of 2010 Management Plan, attached hereto as Exhibit C. In the attached redline documents, new language is shown as underlined and deleted language is shown as strike -through. The proposed modifications to the ATID referenced in this Resolution are collectively referred to hereafter as "ATID Modifications". a. ATID Area Workforce Housing related actions • Add Housing activities, improvements, services and programs that can be funded by ATID Assessments, including First -Time Homeowners Program, Housing Stability Program and Build More Homes Initiatives. See changes in Anaheim Municipal Code sections 2.14.020.010 and 2.14.020.080 (Exhibit B) and Management Plan Section 014 (Exhibit Q. • Change allocation of ATID Assessment Revenue to allocate nine percent (9%) to new segregated fund entitled ATID Area Worker Housing Program in Anaheim Local Housing Trust Fund to support ATID area workforce housing programs. • Create Housing Committee and membership rules. Housing Committee shall oversee the use of the ATID Area Workforce Housing Program funds and have the full authority to develop and approve an annual budget for ATID Area Workforce Housing Program funds. b. Expand boundaries of ATID to add Viv Hotel and potential new hotels on Anaheim 7 Boulevard from Viv Hotel to just north of Ball Road and easterly to the nearby railroad tracks and properties located on the east side of South Anaheim Way (1628 through 1730 South Anaheim Way), comprising approximately 10 acres, and bordered by the western boundary line of the Platinum Triangle to the east and a Southern California Edison easement to the north. A copy of the Amended District Boundary Map showing the current and added ATID boundaries is attached hereto as Exhibit A. A corresponding update to the street description of boundaries of the ATID and list of Assessed Facilities that will be located in the updated ATID boundaries as of September 2025 is included as part of the Amended and Restated Management Plan. c. Remove existing exclusion of "Vacation Ownership Resorts" as defined in Anaheim Municipal Code from ATID Assessment for units constructed or converted after adoption of the Amended and Restated ATID Management Plan. Vacation Ownership Resorts constructed or converted and commencing operation after adoption of Amended and Restated Anaheim Tourism Improvement District Management Plan will be subject to ATID Assessment subject to conditions set forth in definition of "Assessed Facilities" in Anaheim Municipal Code Section 2.14.020.030. d. Revising allocation of ATID Assessment Funds to Marketing Component Funds. Proposed allocation is seventy-five percent (75%) of Remaining ATID Assessment Revenue (after allocation of one percent (1 %) to City Administration of ATID and nine percent (9%) to ATID Area Workforce Housing Programs) to Marketing Component Funds. e. Revising allocation of ATID Assessment Funds to Transportation Component Funds Proposed allocation is twenty-five percent (25%) of Remaining ATID Assessment Revenue (after allocation of one percent (1%) to City Administration of ATID and nine percent (9%) to ATID Area Workforce Housing Programs) to Transportation Component Funds. f. Additions and clarifications to Marketing and Promotion Activities, Improvements, Services and Programs which may be funded by ATID Assessment, including, but not limited to, underwriting special events, planning and development -related tools and studies, and placemaking and beautification physical improvements. g. Additions and clarifications to Transportation Activities, Improvements, Services and Programs which may be funded by ATID Assessment, including, but not limited to, the "east/west connector", emerging mobility solutions (such as micro - transit systems), and transportation to and from Assessed Facilities within the ATID Boundary to visitor -serving destinations. h. Amending Cost Recovery provisions to allow City to be reimbursed for costs incurred in the investigation, formation and implementation of any ATID 3 amendments, which would include the ATID Modifications. The City's costs relating to the ATID Modifications will be reimbursed, from the proceeds of FY 26-27 assessments generated by the ATID above and beyond, and in addition to, the one percent (I%) annual City administrative costs amount. i. Remove language restricting use of assessment revenues for improvements and activities outside ATID boundaries in Anaheim Municipal Code and Resolution of Formation. j. Generally, updating outdated information in 2010 Management Plan based on events occurring since 2010 adoption. 2. The City Council finds and determines that the public convenience and necessity support the ATID Modifications, and that all Assessed Facilities within the ATID will be specifically benefitted by the expenditure of the funds raised by the Assessments proposed to be levied. 3. Pursuant to Section 2.14.070.040 of the Enabling Ordinance, valid written protests from Assessed Facilities that would be included in the proposed ATID boundaries and that are projected to pay fifty percent (50%) or more of the Assessments levied will prevent further action from being taken on the ATID Modifications for a period of one (1) year from the date the City Council finds a majority protest exists. In order to determine the projected Assessments for purposes of establishing voting percentages, the City shall make projections based on the prior three-year average of rental revenues for the applicable businesses. Since such information is proprietary, the City, alone, will determine the total percentage protest and provide such percentage at the hearing on the ATID Modifications. 4. The City Clerk is hereby directed to give proper notice of the adoption of this Resolution of Intent and the Public Meeting and Public Hearing (as such terms are hereinafter defined), pursuant to the applicable provisions of State law and the Anaheim Municipal Code, to all proposed Assessed Facilities. The Notice will include information on how to submit written protests to the City regarding the ATID Modifications. 5. The time and place of the public meeting to allow public testimony regarding the ATID Modifications (the "Public Meeting") is set for October 28, 2025 at 5:00 p.m., or as soon thereafter as the matter may be heard at City Hall at 200 S. Anaheim Blvd, Anaheim, CA 92805. 6. The time and place of the public hearing to consider any written protests and potential adoption of the ATID Modifications (the "Public Hearing"), is set for November 18, 2025 at 5:30 p.m., or as soon thereafter as the matter may be heard at City Hall at 200 S. Anaheim Blvd, Anaheim, CA 92805. At the Public Hearing, the testimony of all interested persons for or against the ATID Modifications will be heard. 7. The foregoing recitals and all exhibits attached hereto are hereby incorporated herein by reference. 4 THE FOREGOING RESOLUTION is approved and adopted by the City Council of the City of Anaheim this 23 day of September, 2025, by the following roll call vote: Mayor Aitken and Council Members Meeks, Balius, AYES: Leon, Rubalcava, Kurtz and 1xiaahs NOES: None ABSENT: None ABSTAIN: None 0 OF THE CITY OF ANAHEIM CITY OF E EXHIBIT "A" AMENDED BOUNDARIES AND MAP OF THE ANAHEIM TOURISM IMPROVEMENT DISTRICT Any and all current and future Assessed Facilities falling within the following boundaries will automatically be included in the ATID for the full term of the ATID. E SALL 1) CFPkITUX, AW t 'Y E KAT I ULLA AVE L GENE AU-Rl WAY --d W fW.- A'A C5 G- F AN w WOOD AVE I - - - - - - - - - - - - - - Key to Features ab w E CH~ AVI Anaheim Tourism Improvement District EXHIBIT "B" PROPOSED REVISIONS TO ANAHEIM MUNICIPAL CODE CHAPTER 2.14 Chapter 2.14 ANAHEIM TOURISM IMPROVEMENT DISTRICT FORMATION CODE Sections: 2.14.010 Relationship to other laws. 2.14.020 Definitions. 2.14.030 Establishment of a tourism improvement district. 2.14.040 Resolution of intention. 2.14.050 Management plan. 2.14.060 Notice of public hearing. 2.14.070 Protests 2.14.080 City Council adoption, revision or modification of assessments; modification of approval of Charter; changes to district boundaries. 2.14.090 Resolution of formation for tourism improvement district. 2.14.100 Benefit zones. 2.14.110 Relationship of assessment to benefits. 2.14.120 Contesting the levy of assessments or resolutions. 2.14.130 Cost recovery. 2.14.140 Bond financing. 2.14.150 Advisory Board; annual report. 2.14.160 Renewal. 2.14.170 Disestablishment. 2.14.010 RELATIONSHIP TO OTHER LAWS. .010 This ordinance provides an alternative method of financing certain tourism related programs, improvements and activities. The provisions of this ordinance shall not affect or limit any other provisions of law authorizing or providing for the furnishing of improvements or activities or the raising of revenue for these purposes. Every improvement area established pursuant to the Parking and Business Improvement Area Law of 1989 (California Streets and Highways Code Sections 36500-36551) or the Property and Business Improvement District Law of 1994 (California Streets and Highways Code Sections 36600-36671) is valid and effective and is unaffected by this chapter. Any provision of this chapter which conflicts with any of the above -referenced provisions of law shall prevail over such other provisions of law. .020 This chapter is intended to be construed liberally and, if any provision is held invalid, the remaining provisions shall remain in full force and effect. If the provisions of this chapter respecting the levying of assessments are held invalid in any area within which assessments have been levied pursuant to the resolution of formation and assessment methodology adopted in accordance with Section 2.14.090, the assessments shall be reimposed in an identical amount and upon the same businesses as a matter of law and no lapse in the levy of any assessment shall be deemed to have occurred. Assessments levied under this chapter are not general or special taxes. (Ord. 6174 § 1 (part); July 27, 2010.) 2.14.020 DEFINITIONS. .010 "Activities" means, but is not limited to, all of the following: .011 Promotion of public events which benefit businosse-- ^r real ^r^^er yAssessed Facilities in the district. .012 Furnishing and/or underwriting of music, special events or entertainment in a-ny n�� eethe City that benefit the Anaheim Convention Center or within the district. .013 The international and national promotion of tourism and use of the Anaheim Convention Center within the district including establishment of satellite offices and facilities in other markets for the promotion of the City as a desirable destination location. .014 Marketing and economic development, including retail and tourism -related businesses retention and recruitment. .015 Providing security, sanitation, graffiti removal, street and sidewalk cleaning, and other municipal services supplemental to those normally provided by the municipality. .016 Planning and development -related tools and studies that facilitate tourism within the district. .017 Financial support for first-time homeownership to qualified Assessed Facilities employees. .018 Emergency financial assistance to prevent loss of housing to low and very - low income Assessed Facilities employees. .019 Other activities, services and programs provided for the purpose of conferring specific benefit upon Assessed Facilities located in the district. .020 "Advisory Board" means the advisory board designated by the City Council pursuant to Section 2.14.150. 2 .030 "Assessed Facilities" means (1) all current and future visitor accommodation facilities, hotels, motels located within the ATID boundaries engaged in the renting of rooms for a period of less than thirty (30) days. and (2) all Vacation Ownership Resorts, as such term is defined in AMC Sections 18.114.030.150.1501 and 18.116.030.100 that are: (a) constructed as or converted to Vacation Ownership Resorts and commence operation after adoption of the First Amended and Restated Management Plan on . 2025. (b) are located within the ATID boundaries. and C) include time share facilities or interests that can be used for occupancy through either the payment in dollars or points or similar credits as part of a vacation ownership resort program of rooms for a period of less than thirty (30) days. .0341 "Assessment" means a levy for the purpose of acquiring, constructing, installing, or maintaining improvements and promoting activities which will benefit the businesses located and operating within a tourism improvement district. .040 "Business" means all types of businesses that benefit from the establishment of a tourism improvement district. .050 "City" means the City of Anaheim. .060 "City Council" means the City Council of the City of Anaheim. .070 "Contracting Entity" means the organization with which the City contracts to handle the day-to-day operations of the TID and implementation of the management plan. .080 "Improvement(s)" means the acquisition, construction, installation, or maintenance of any tangible property with an estimated useful life of five (5) years or more including, but not limited to, the following: .081 Parking facilities. .082 Transportation systems that deliver customers and patrons to the TID hotels, the Anaheim Resort Area, the Platinum Triangle, and the Anaheim Convention Center. .083 Benches, booths, kiosks, display cases, pedestrian shelters, public art and signs. .084 Trash receptacles and public restrooms. .085 Lighting, heating and cooling facilities. .086 Decorations. .087 Parks and plazas. .088 Fountains. .089 Planting areas and landscaping (including parkways and median strips). .090 Closing, opening, widening, or narrowing of existing streets. .091 Facilities or equipment, or both, to enhance security of persons and property within the area. .092 Ramps, sidewalks, bridges, plazas, and pedestrian malls. 093 Rehabilitation or removal of existing structures. 094 Convention center facilities. .095 Fund the development and rehabilitation of workforce housing for qualified Assessed Facilities employees. .090 "Property" means real property in and around TID businesses located within proposed TID boundaries. .100 "Tourism improvement district," or "district," or "TID" means an area designated as provided in this chapter. (Ord. 6174 § 1 (part); July 27, 2010.) 2.14.030 ESTABLISHMENT OF A TOURISM IMPROVEMENT DISTRICT. .010 A tourism improvement district maybe established as provided in this chapter. .020 The City Council may establish a district on its own initiative or upon petition of one or more businesses. .030 The City may not forma district within the unincorporated territory of a county, without the consent of the board of supervisors of that county. The City may not form an area within the territorial jurisdiction of another city without the consent of the city council of the other city. (Ord. 6174 § 1 (part); July 27, 2010.) 2.14.040 RESOLUTION OF INTENTION. .010 Proceedings to establish a tourism improvement district shall be instituted by the adoption by the City Council of a resolution of intention to establish the district. The resolution of intention shall do all of the following: .011 State that a tourism improvement district is proposed to be established pursuant to this Chapter 2.14 and describe the boundaries of the territory proposed to be included in the district and the boundaries of each separate benefit zone to be established within the district. The boundaries of the district may be described by reference to a map on file in the office of the city clerk, showing the proposed district. .012 State the name of the proposed district. .013 State the type or types of improvements and activities proposed to be funded by the levy of assessments on businesses in the district including any improvements to be acquired, and the percentages of assessment revenues to be allocated for improvements and for activities, respectively. .014 State that an assessment will be levied monthly to pay for all improvements and activities within the district. 4 .015 State (a) the proposed method and basis of levying the assessment insufficient detail to allow each business owner to estimate the amount of the assessment to be levied against his or her business and/or (b) a set assessment amount to be levied against each business. .016 State the duration of the district which shall not exceed thirty (30) years. Notwithstanding this limitation, a district created pursuant to this chapter that finances authorized improvements with bonds, pursuant to Section 2.14.130, shall be subject to a levy of assessments until the maximum maturity of the bonds. .017 State whether bonds will be issued pursuant to Section 2.14.130 and for what purposes. .018 Fix a time and place for a public hearing on the establishment of the tourism improvement district and the levy of assessments, which shall be consistent with the requirements of Section 54954.6 of the Ralph M. Brown Act (California Government Code Sections 54950-54963). .019 State that at the hearing the testimony of all interested persons for or against the establishment of the district, the extent of the district, or the furnishing of specified types of improvements or activities will be heard. The notice shall also describe, in summary, the effect of protests made by business owners against the establishment of the district, the extent of the district, and the furnishing of a specified type of improvement or activity. (Ord. 6174 § 1 (part); July 27, 2010.) 2.14.050 MANAGEMENT PLAN. .010 The City shall have prepared a management plan for the ATID which shall be provided to all businesses to be assessed no later than ten (10) days prior to the hearing on the resolution of formation. Such management plan shall include all of the following: .011 A map of the district insufficient detail to locate each assessed business within the district. .012 The name of the proposed district. .013 A description of the boundaries of the district, including the boundaries of benefit zones, proposed for establishment or extension in a manner sufficient to identify the affected businesses included. .014 The improvements and activities proposed for the first five (5) years of operation of the district and the maximum cost thereof. .015 The total annual amount proposed to be expended for improvements, maintenance and operations, and debt service in each of the first five (5) years of operation of the district. 5 .016 The proposed source or sources of financing, including the proposed method and basis of levying the assessment in sufficient detail to allow each affected business owner to calculate the amount of the assessment to be levied against his or her business. The plan also shall state whether bonds will be issued to finance improvements. 017 The time and manner of collecting assessments. 018 The specific number of years in which assessments will be levied. .019 The proposed time for implementation and completion of the management plan and whether or not an Advisory Board will be designated for the district pursuant to Section 2.14.150. .020 Any proposed rules and regulations to be applicable to the district. 021 A list of the businesses to be assessed. 022 The structure governing implementation of the management plan. .023 A description of the Contracting Entity with which the City will contract for day- to-day management of the TID. .024 All required cost recovery information specified in Section 2.14.130.020. (Ord. 6174 § 1 (part); July 27, 2010.) 2.14.060 NOTICE OF PUBLIC HEARING. Notice of a public hearing held under Section 2.14.080 shall be given by the mailing of a complete copy of the resolution of intention by first-class mail to each business owner in the district that will be subject to the assessment, within seven (7) days of the City Council's adoption of the resolution of intention. (Ord. 6174 § 1 (part); July 27, 2010.) 2.14.070 PROTESTS. .010 At the public hearing, the City Council shall hear and consider all protests against the establishment of the district, the extent of the district, or the furnishing of specified types of improvements or activities within the district. A protest may be made orally or in writing by any interested person. Any protest pertaining to the regularity or sufficiency of the proceedings shall be in writing and shall clearly set forth the irregularity or defect to which the objection is made. .020 Every written protest shall be filed with the clerk at or before the time fixed for the public hearing. The City Council may waive any irregularity in the form or content of any written protest and at the public hearing may correct minor defects in the proceedings. A written protest may be withdrawn in writing at any time before the conclusion of the public hearing. 0 .030 Each written protest shall contain a description of the affected business in which the person subscribing the protest is interested sufficient to identify the business and, if a person subscribing is not shown on the official records of the city as the owner of the business, the protest shall contain or be accompanied by written evidence that the person subscribing is the owner of the business. A written protest which does not comply with this section shall not be counted in determining a majority protest. .040 If written protests are received from the owners of businesses in the proposed area which are projected to pay 50 percent (50%) or more of the assessments proposed to be levied and protests are not withdrawn so as to reduce the protests to less than that 50 percent (50%), no further proceedings to create the specified tourism improvement district or to levy the proposed assessment, as contained in the resolution of intention, shall be taken for a period of one (1) year from the date of the finding of a majority protest by the City Council. In order to determine the projected assessments for purposes of establishing voting percentages, the City shall make projections based on the prior three- year average of revenues for the applicable businesses. Since such information is proprietary, the City, alone, will determine the total percentage protest and provide such at the hearing on the resolutions of formation. .050 If the majority protest is only against the furnishing of a specified type or types of improvement or activity within the district, those types of improvements or activities shall be eliminated. (Ord. 6174 § 1 (part); July 27, 2010.) 2.14.080 CITY COUNCIL ADOPTION, REVISION OR MODIFICATION OF ASSESSMENTS; MODIFICATION OF APPROVAL OF CHARTER; CHANGES TO DISTRICT BOUNDARIES. .010 At the conclusion of the public hearing to establish the district, the City Council may adopt, revise, change, reduce, or modify the proposed assessment or the type or types of improvements and activities to be funded with the revenues from the assessments. .020 At the public hearing, the City Council may only make changes in, to, or from, the boundaries of the proposed tourism improvement district that will exclude territory which will not benefit from the proposed improvements or activities. However, proposed assessments may only be revised by reducing any or all of them. .030 The City Council shall not change the boundaries of the district to include any territory that will not, in its judgment, benefit by the improvement or activity. Any addition of territory to the proposed boundaries of the district may be made only upon notice to the owners of the businesses proposed to be added to the area, as provided in Section 2.14.060, and upon a public hearing on the addition of territory, as provided in subsection 2.14.040.018. .040 The adoption of the resolution of formation pursuant to Section 2.14.090 shall constitute the levy of an assessment in each of the fiscal years for the duration of the tourism improvement district. (Ord. 6174 § 1 (part); July 27, 2010.) 7 2.14.090 RESOLUTION OF FORMATION FOR TOURISM IMPROVEMENT DISTRICT. .010 If the City Council, following the public hearing, decides to establish the proposed tourism improvement district, it shall adopt a resolution of formation to that effect. The resolution shall contain all of the following: .011 A brief description of the proposed activities and improvements, the amount of the proposed assessment, the percentages of assessment revenues to be allocated for improvements and for activities, respectively, and a statement about whether bonds will be issued. The descriptions and statements do not need to be detailed and shall be sufficient if they enable the business owner to generally identify the nature and extent of the improvements and activities and the location and extent of the proposed district. .012 The time and place where the public hearing was held concerning the establishment of the district. .013 A determination regarding any protests received at the public hearing. .014 The description of the boundaries of the district and of each separate benefit zone established within the district. .015 A statement that a tourism improvement district has been established and the name of the district. .016 A statement that the businesses in the district established by the resolution of formation shall be subject to any amendments to this chapter. .017 The description of the method and basis of levying the assessments, with a breakdown by classification of businesses if a classification is used, and/or a set assessment amount to be levied against each business. .018 A statement that the improvements and activities to be provided in the district will be funded by the levy of the assessments. The revenue from the levy of assessments within a district shall not be used to provide ivements ^r ^^*""ties outside the d*"'^* ar-for any purpose other than the purposes specified in the resolution of intention, as modified by the City Council at the hearing concerning establishment of the district. .019 A finding that the businesses to be assessed within the tourism improvement district will be benefited by the improvements and activities funded by the assessments proposed to be levied. Only tourism improvement district businesses that benefit from tourist visits may be assessed. .020 The time and manner of collecting the assessments. .021 A copy of the management plan. (Ord. 6174 § 1 (part); July 27, 2010.) 2.14.100 BENEFIT ZONES. .010 The City Council may establish one or more separate benefit zones within the district based upon the degree of benefit derived from the improvements or activities to be provided within the benefit zone and may impose a different assessment within each benefit zone. .020 All provisions of this chapter applicable to the establishment, modification, or disestablishment of a tourism improvement district apply to the establishment, modification, or disestablishment of benefit zones. The City Council shall, to establish, modify, or disestablish a benefit zone, follow the procedure to establish, modify, or disestablish a tourism improvement district. (Ord. 6174 § 1 (part); July 27, 2010.) 2.14.110 RELATIONSHIP OF ASSESSMENT TO BENEFITS. The assessments levied on businesses pursuant to this chapter shall be levied on the basis of the estimated benefit to the businesses within the tourism improvement district. The City Council may classify businesses for purposes of determining the benefit to a business of the improvements and activities provided pursuant to this part. (Ord. 6174 § 1 (part); July 27, 2010.) 2.14.120 CONTESTING THE LEVY OF ASSESSMENTS OR RESOLUTIONS. The validity of a Resolution of Intention, a Resolution of Formation or an assessment levied under this chapter shall not be contested in any action or proceeding unless the action or proceeding is commenced within thirty (30) days after the resolution of formation levying the assessment is adopted pursuant to Section 2.14.090. Any appeal from a final judgment in an action or proceeding shall be perfected within thirty (30) days after the entry of judgment. (Ord. 6174 § 1 (part); July 27, 2010.) 2.14.130 COST RECOVERY. .010 The City Council may authorize a district formed pursuant to this ordinance to recover though the assessments, the cost incurred in formation of and amendments to the district, including: .011 The cost of preparation of the management plan or amendments to Plan. .012 The cost of printing, advertising, and the giving of published, posted, or mailed notices. .013 Compensation of any attorneys or other consultants employed to render services related to the formation of and amendments to any district including proceedings under this ordinance. .014 Any other costs associated with the formation of and amendments to the district. 0 .020 If a district is authorized to recover these costs, any management plan prepared pursuant to subsection 2.14.050 shall specify the formation or amendment costs eligible for recovery through assessments, the schedule for recovery of those costs, and the basis for determining the amount of the additional assessment for recovery of costs. (Ord. 6174 § 1 (part); July 27, 2010.) 2.14.140 BOND FINANCING. .010 The City Council may, by resolution, determine and declare that bonds shall be issued to finance the estimated cost of some or all of the proposed improvements described in the resolution of formation adopted pursuant to Section 2.14.090, if the resolution of formation adopted pursuant to that section provides for the issuance of bonds, under the Improvement Bond Act of 1915 (Division 10 (commencing with Section 8500)) or, if appropriate, in conjunction with Marks -Roos Local Bond Pooling Act of 1985 (Article 4 (commencing with Section 6584) of Chapter 5 of Division 7 of Title 1 of the Government Code). Either act, as the case may be, shall govern the proceedings relating to the issuance of bonds, although proceedings under the Bond Act of 1915 may be modified by the City Council as necessary to accommodate assessments levied upon business pursuant to this chapter. .020 The resolution adopted pursuant to Section 2.14.040 shall generally describe the proposed activities or improvements specified in the resolution of formation adopted pursuant to Section 2.14.090, set forth the estimated cost of those improvements, specify the number of installments and the fiscal years during which they are to be collected. The amount of debt service to retire the bonds shall not exceed the amount of revenue estimated to be raised from assessments over thirty (30) years. .030 Notwithstanding any other provision of this chapter, assessments levied to pay the principal and interest on any bond issued pursuant to this section shall not be reduced or terminated if doing so would interfere with the timely retirement of the debt. (Ord. 6174 § 1 (part); July 27, 2010.) 2.14.150 ADVISORY BOARD; ANNUAL REPORT. .010 The City Council may designate an Advisory Board that shall make recommendations to the City Council regarding the expenditure of revenues derived from the levy of assessments pursuant to this chapter, the classification of businesses, as applicable, and the method and basis of levying the assessments. The City shall enter into a contract with an organization ("Contracting Entity") to provide for day-to-day management of any activities, services and advertising (not improvements) authorized to be funded with the assessments. .020 The Advisory Board or Contracting Entity shall cause to be prepared a report for each City fiscal year, except the first year or portion thereof, for which assessments are to be levied and collected to pay the costs of the improvements and activities described in the 10 report. The first report shall be due after the first year of operation of the district. The report may propose changes, including, but not limited to, the boundaries of the tourism improvement district or any benefit zones within the district, the basis and method of levying the assessments, any changes in the classification of property, including any categories of business, if a classification is used, the management plan, and the activities and improvements to be funded by the assessments. .030 The report shall be filed with the clerk and shall refer to the tourism improvement district by name, specify the fiscal year to which the report applies, and shall contain all of the following information: .031 Any proposed changes in the boundaries of the tourism improvement district, any benefit zones, classification of businesses, the basis and method of levying assessments, the management plan or the activities and improvements to be funded by the assessments. .032 The improvements and activities to be provided for that fiscal year. .033 An estimate of the cost of providing the improvements and the activities for that fiscal year. .034 The method and basis of levying the assessment in sufficient detail to allow each business owner, as appropriate, to estimate the amount of the assessment to be levied against his or her business for that fiscal year. .035 The amount of any surplus revenues to be carried over from a previous fiscal year. .036 The amount of any contributions to be made from sources other than assessments levied pursuant to this chapter. .040 The City Council may approve the report as filed by the Advisory Board or Contracting Entity or may modify any particular contained in the report and approve it as modified. Any modification whether proposed by the Advisory Board, the Contracting Entity or the City, shall be made subject to a public hearing with public notice consistent with Section 2.14.060 and subject to the protest provisions in Section 2.14.070. The City Council shall not approve a change in the basis and method of levying assessments that would impair an authorized or executed contract to be paid from the revenues derived from the levy of assessments, including any commitment to pay principal and interest on any bonds issued on behalf of the district. (Ord. 6174 § 1 (part); July 27, 2010.) 2.14.160 RENEWAL. .010 Any district previously established whose term has expired, maybe renewed by following the procedures for establishment as provided in this chapter. .020 Upon renewal, any remaining revenues derived from the levy of assessments, or any revenues derived from the sale of assets acquired with the revenues, shall be transferred to the renewed district. If the renewed district includes additional businesses not included in the prior district, the remaining revenues shall be spent to benefit only the 11 businesses in the prior district. If the renewed district does not include businesses included in the prior district, the remaining revenues attributable to these businesses shall be refunded to the owners of these businesses. .030 Upon renewal, a district shall have a term not to exceed thirty (30) years, or, if the district is authorized to issue bonds, until the maximum maturity of those bonds. There is no requirement that the boundaries, assessments, improvements, or activities of a renewed district be the same as the original or prior district. (Ord. 6174 § 1 (part); July 27, 2010.) 2.14.170 DISESTABLISHMENT. .010 Any district established or extended pursuant to the provisions of this chapter, where there is no indebtedness, outstanding and unpaid or outstanding contract, incurred to accomplish any of the purposes of the district, may be disestablished by resolution by the City Council in either of the following circumstances: .011 If the City Council finds there has been misappropriation of funds, malfeasance, or a violation of law in connection with the management of the district, it shall notice a hearing on disestablishment. .012 During the operation of the district, there shall be a 30-day period each year in which assessed facilities assessees may request disestablishment of the district. The first such period shall begin five (5) years after the date of establishment of the district or such other time as set forth in the management plan and shall continue for thirty (30) days. The next such 30-day period shall begin six (6) years after the date of the establishment of the district or such other time as set forth in the management plan. Each successive year of operation of the district shall have such a 30-day period. Upon the written petition of the owners of businesses in the TID who pay 50 percent (50%) or more of the assessments levied, the City Council shall pass a resolution of intention to disestablish the district. The City Council shall notice a hearing on disestablishment. .020 The City Council shall adopt a resolution of intention to disestablish the district prior to the public hearing required by this section. The resolution shall state the reason for the disestablishment, shall state the time and place of the public hearing, and shall contain a proposal to dispose of any assets acquired with the revenues of the assessments levied within the property and business improvement district. The notice of the hearing on disestablishment required by this section shall be given by mail to each affected TID business subject to assessment in the district, as appropriate. The city shall conduct the public hearing not less than thirty (30) days after mailing the notice to the property or business owners. The public hearing shall be held not more than sixty (60) days after the adoption of the resolution of intention. .030 Upon the disestablishment of a district, any remaining revenues, after all outstanding debts are paid, derived from the levy of assessments, or derived from the sale of assets acquired with the revenues, or from bond reserve or construction funds, shall be refunded pro rata to the owners of TID businesses then located and operating within the 12 district in which assessments were levied by applying the same method and basis that was used to calculate the assessments levied in the fiscal year in which the district is disestablished. .040 If the dis establishment occurs before an assessment is levied for the fiscal year, the method and basis that was used to calculate the assessments levied in the immediate prior fiscal year shall be used to calculate the amount of any refund. .050 Notwithstanding the above, if there is indebtedness or outstanding contracts, the assessment may not be terminated for such indebtedness or contract but may be permanently or temporarily terminated or otherwise reduced with respect to all other improvements and activities if the above steps are taken upon the written petition of the owners of businesses in the TID who paid 50 percent (50%) or more of the assessments in the preceding fiscal year. (Ord. 6174 § 1 (part); July 27, 2010.) 13 EXHIBIT "C" PROPOSED REVISIONS TO THE 2010 MANAGEMENT PLAN First Amended and Restated Anaheim Tourism Improvement District of 2010 Management Plan Established Under Anaheim City Ordinance 6174 Section 2.14.050 Amended and Restated: , 2025 Original Adoption:. September 2, 2010 First Amended and Restated Anaheim Tourism Improvement District of 2010 (ATID) Management Plan Table of Contents AN,1C Section 2.14.050, Pa Ft .n1n_ Management Plan Sub -Section: Page 011 _ .— Name of the Proposed District Page 3 012 i`, Map of the District Page 4 013- A Description of the Boundaries of the District; Page 5 !11/1 The Imr.re.,ement and Aet;yi+ies Drer.ese.d fQr+he Fir.-+ C 34e-.r.- 14 Proposed Page 7 Activities, Improvements, Services and Programs +he Ciro+ Five (5)yeaFS of Oper7+ieR of the DirArk4015 Page 9 Reserved 016 The Proposed Source or Sources of Financing Including the Proposed Method and Basis of Levying the Assessment Page 44 10 017---T44c Time and Manner of Collecting Assessments Page -13 12 018- The Specific Number of Years in Which the Assessment will be Levied Page -14 13 099 The 49po sed Time fer Implementation -@Ad Gomnle+inn the — Management 019 Reserved. Page 46 14 020 /List of the Businesses to be Assessed Page 14 15 021The Structure Governing Implementation of the Management Plan Page -9 18 022--Atl Required Cost Recovery Information Specified in Section 2.14.130.020 Page 24 21 SECTION 011 THE NAME OF THE PROPOSED DISTRICT The name of the proposed District will be the "Anaheim Tourism Improvement District of 2010" ("ATID"). SECTION 012 MAP OF THE DISTRICT The map of the ATID and the following streets and address series are included in the following pages. b P i Q E r r r ! y r I ! KATELtA W KATFItA AVE J 1 / I t ouamc. ",'x;D AVE_ VOUO AV :.� W r N AVE M Key to Features I a O W CN F CHAPMAN AVE z \� toIflit Anaheim Tourism Improvement District A .. Or A^/^r ' 04 SECTION 013 DESCRIPTION OF THE BOUNDARIES OF THE DISTRICT The boundaries of the ATID are set forth in the maps in Section 012 . The businesses subiect to the ATID assessment are defined in Anaheim Municipal Code (AMC) Chapter 2.14 as "Assessed Facilities". Per AMC section 2.14.020.030, "Assessed Facilities" are defined as: "(1) all current and future visitor accommodation facilities, hotels, a44d-motels Rese4S) located within the ATID boundaries engaged in the renting of rooms for a period of less than thirty (30) days (26§225§24 iGh artier Will be, l9eated- s , bewndaFies., and (2) all Vacation Ownership Resorts, as such term is defined in AMC Sections 18.114.030.150.1501 and 18.116.030.100 that are: (a) constructed as or converted to Vacation Ownership Resorts and commence operation after adoption of the First Amended and Restated Management Plan on , 2025, (b) ) are located within the ATID boundaries, and (c) include time share facilities or interests that can be used for occupancy through either the payment in dollars or pointes or similar credits as part of a vacation ownership resort program for a period of less than thirty (30) days. In general, a narrative of the Assessed Facilities to be included in the ATID is as follows: Any and all current and future Assessed Facilities falling within the area designated on the map set forth in Section 012 hereof, including, without limitation, those Assessed Facilities on the following streets: o On Harbor Dr+veBoulevard from north Anaheim Resort boundaries near Vermont Avenue on the north, southward to the Garden Grove City border/and Chapman Avenue on the south; o On Disneyland Drive from north Anaheim Resort boundaries near Locust Avenue on the north, southward to West Street/Garden Grove City border on the south; o On the east side of Walnut Street from Ball Road on the north and Stella StFeetAvenue on the south; o On Manchester Avenue and Clementine Street with the intersection of Harbor Boulevard and Manchester Avenue on the north to the intersection of Katella Avenue and Clementine Street on the south end, o On Anaheim Boulevard /Haster Street within the Anaheim Resort boundaries with Interstate 5 on the north, southward to the Anaheim Resort boundaries ate-ngon the south and commencing again from Anaheim Way running northward to just beyond Ball Road on the north to Clifton Avenue and easterly to railroad tracks nearest to Anaheim Boulevard en the seuth, o On Katella Avenue from Walnut Street on the west to the Santa Ana River on the east; o On Disney Way from Harbor Blvd on the west, to Interstate 5 on the east; o On Ball Road from West Place on the west to the eastern Anaheim Resort boundaries of Ball Road on the east; o On Orangewood Avenue within the Anaheim Resort boundaries west of Interstate 5 continuing eastward and commencing again from Anaheim Way running eastward to the Santa Ana River on the east; o On Chapman Avenue within the Anaheim Resort boundaries; o On Gene Autry Way within Anaheim Resort boundaries, and commencing again from Interstate 5 on the west to State College Blvd on the east; o On Lewis Street within the Platinum Triangle boundaries; o On State College Blvd within the boundaries of the Platinum Triangle boundaries; o On Howell Avenue within the Platinum Triangle boundaries; o On Sunkist Street within the Platinum Triangle boundaries; o On BeuglasDou&lass Road within the Platinum Triangle boundaries; o On the east and west side of the Orange Freeway/State Route 57 within the boundaries of the Platinum Triangle; o On Anaheim Way within the Platinum Triangle boundaries; o On the east side of South Anaheim Way (1628 through 1730 South Anaheim Way), comprising approximately 10 acres, and bordered by the western boundary line of the Platinum Triangle to the east and a Southern California Edison easement to the north. o Any existing and future private and public roads, streets, avenues or boulevards an k4within the current and future boundaries of the Anaheim Resort A,,,, and the Platinum Triangle as currently designated by the City Council of Anaheim; 0 SECTION 014 DESGRI�IfIH,� I�RE PE)TENT.II TRANISPEATATIGN ITRAS PROPOSED ACTIVITIES, IMPROVEMENTS, SERVICES AND PROGRAMS The purpose of forming the ATID as a Tourism Improvement District is to provide revenues to cover the costs of activities, improvements, services and programs that will benefit the Assessed Facilities and the tourism and convention industry in the City of Anaheim ("City"). The activities, improvements, services and programs to be provided and paid for by the ATID shall confer a special benefit to all Assessed Facilities. Those activities, improvements, services and programs are listed below. aut-he-rizing bends to be paid fFem the Gity Ge-Her-al FuRds 9F etheF speeffial funds, Other than XID� , p�� �T Activities, Improvements, Services and Programs, IFAI9Fe.,emeR+r of the ATID: The ATID will serve as a funding mechanism for some or all of the following types of special improvements w, activities, services, or programs to market, promote, wd support, enhance and >tai -f the City's tourism and convention industry: 1. Marketing and Promotion Activities, Improvements, Services and Programs: Advertising and marketing programs-, 10, SpeeiaTevents P; ;e ?Fties demand-geneFaWFSJ ►--WndeFwFitiRg 9FelatRi9th-at-heRef1t the Assessed- Faen, i;;tieT ➢ supporting the Anaheim Convention Center efand Assessed Facilities; 10- Private a dditiGRal se^, t- International and national promotion of tourism, the Assessed Facilities, the Anaheim Convention Center within the Paeilitiesi and ➢ �Rdi+;gATID Boundaries, including the establishment of satellite offices and facilities in other markets for the promotion of the City as a desirable destination location.,. ➢ Furnishing and/or underwriting of concerts, festivals, entertainment, sports -tourism, and other special events in the City that benefit the Convention Center and Assessed Facilities; Economic development programs that support the recruitment and retention of retail, dining, entertainment, and hospitality businesses; L Planning and development -related tools, strategies and studies that facilitate future visitor - inducing uses within the ATID Boundary area; ➢ Placemaking and beautification, including public art, enhanced landscaping, entry Fj monumentation, public realm features, and related physical improvements within the ATID boundaries and related to the promotion of Anaheim Convention Center or Assessed Facilities; Security and/or ambassador -type services and programs within the ATID boundary area. 2. Transportation IFAPF9VePAent&a4Gl Activities, Improvements Services and Programs: ➢ Planning, design, construction and operation of transit improvements, including the"A the inter ,.,ty dedicated .....,..,. 4ans,t an "east/west connector" system linking the Feg+enal Fail+eeAnaheim Regional Transportation Intermodal Center ("ARTIC") to the various Assessed Facilities and collector points throughout the City, as further set forth in Section 016 hereof; ➢ TFa„SP94aneRCapital and operational expenses such as AnaheiFA TRASP94ati9n Net for an Area Shuttle Operator serving the Assessed Facilities; ➢ Alternative transportation methods for Assessed Facilities; ➢ Pedestrian walkways, bridges, and related improvements; Pilot transportation programs related to emerging mobility solutions, with the potential to benefit the Anaheim Convention Center and Assessed Facilities. ➢ Other programs or activities, such as micro -transit systems, which facilitate tFaRspeFtatiGAM9bil1ity to and from Assessed Facilities within the 4.R_ahP_im °P__^rt ".P, and the ^r,.e,.c^�' �aei'iti^;ATID Boundary and visitor -serving destinations, such as airports, transit stations, restaurants and other tourism -serving uses: and ➢ Debt service on and costs related to bonds, notes or certificates of participation issued by the City for any of the improvements set forth above. 3. ATID Area Workforce Housing Activities, Improvements, Services and Programs Funds provided to Anaheim Local Housing Trust Fund, adopted on , 2025 (as adopted or subsequently amended), and dedicated exclusively to the following programs as set forth in Anaheim Local Housing Trust Fund Guidelines with funding allocations within the following categories as approved by the Housing Committee: First -Time Homeowners Program: Offers financial support for low- and moderate -income households (up to 150% of area median income) through a downpayment assistance loan to purchase their first home in Anaheim. Funds would be provided solely to assist qualified ATID area Assessed Facility employees. Housing Stability Program: Provides one-time emergency assistance to prevent displacement, eviction, and homelessness of very low-income and low-income ATID area Assessed Facility employees at risk of eviction or homelessness. ➢ Build More Homes Initiative: Funds the development and rehabilitation of workforce housing including affordable, rental and for -sale housing, to increase the city's long-term supply. For these funds, the program would specifically fund housing for qualified ATID area Assessed Facility employees. 9S -3-.4. Support Costs: ➢ Staff and organizational operating costs related to the administration of the ATID; ➢ Repayment of ATID formation and amendment costs including the use of attorneys, consultants and related professional services; and ➢ Any incidental collection fees levied by the City based upon agreement of the Assessed Facilities. Funds remaining at the end of any ATID fiscal year shall be used in subsequent years in which the ATID assessments are levied so long as they are used consistent with the requirements of the adopted resolution of formation, AMC Chapter 2.14 and this Management Plan. IE SECTION 015 — Reserved (Former Section 015 Moved to Appendix A For Informational Purposes Only) 44 SECTION 016 PROPOSED SOURCE OR SOURCES OF FINANCING INCLUDING THE PROPOSED METHOD AND BASIS OF LEVYING THE ASSESSMENT IN SUFFICIENT DETAIL VCAD Pr-.ACCAITAcr. ACTLC GATC4QfCT PERGENTAGE 9 F TLC T-9TA1 nl�AE)YNT AVAIL. ADIC 7`L 1. Y GATEG Pr,,E4 Fno ATP ExpEpjnlT- RF Est F"4� [ n nno nn r , r c ve=;.,s v--r�-nrvr AT49 5e c11 n1n cco nn EAMM ONE .,. A. 44 Assessment Formula. Each Assessed Facility shall pay an assessment in the amount equal to two percent (2%) of the hotel room "rent" (as defined in Anaheim MuRieipal GedeAMC Section 2.12.005.990140) or any applicable development agreement or the rent equivalent as set forth in any applicable time-share agreement pursuant to AMC 2.12.013) charged by the operator of such Assessed Facility (the "ATID Assessment"). This assessment shall also apply to all Vacation Ownership Resort units, as such term is defined in AMC Sections 18.114.030.150.1501 and 18.116.030.100 that are: (a) constructed as or converted to Vacation Ownership Resorts and commence operation after adoption of the First Amended and Restated Management Plan on , 2025 and (b) are located within the ATID area boundary. Allocation. The City ;hall rpr-(44APF its aetwal r- revenwe�esFunds collected 0 amount of the ATI-P ArcessrAents eeue,-teaby the ATID shall be allocated in sweh fiscal „ear Of the rem�ininn net ATID Assessment revenues the following the Gity's rere„ery of its Bests my five peFeent 0 I u 11) and twenty ve PeFeem 0 ) shall bp dpciffir-attad nenent:-Fw-ROs ). The twenty e-peFcem (2°�,) and seventy five peFeeFA 0alleeatieA may be adjusted W thiFty0 0 manner. Category Percent Allocation Description City Administration 1% The City shall recover its actual costs of administering the of ATID ATID, from the ATID Assessment revenues collected monthly before any funds are distributed for other purposes. This amount shall equal one percent (1%) of the amount of the ATID Assessments collected in such fiscal year. ("Administration Component Funds"). ATID Area Workforce Housing 9% Commencing February 1, 2026, nine percent (9%) of ATID Assessment Revenue shall be allocated to the Anaheim 44 Pro_ rg ams Housing Trust Fund for ATID Area Workforce Housing Program activities, improvements, services and programs as set forth in Section 014 to support housing assistance for workers at ATID Assessed Facilities. Marketing and 75% of Seventy-five percent (75%) of the remaining ATID Assessment Revenue shall be dedicated to Marketing and Promotion the Promotion activities, improvements, services, and remaining ATID programs ("Marketing Component Funds") as further Revenues described in Section 014. Transit and 25% of Twenty-five percent (25%) of the remaining ATID Transportation the Assessment Revenue shall be dedicated to activities, remaining improvements, services and programs to support transit and transportation improvements and activities ATID Revenues ("Transportation Component Funds") as further described in Section 014. The specific uses of the Transportation Component Funds and the priority of such uses shall be governed by a Transportation Committee (defined in Section 021 below). The specific uses of the Housing Component Funds and the priority of such uses shall be subject to oversight by the Housing Committee (defined in Section 021 below) and the Housing Committee shall have full authority to develop and approve an annual budget for the Housing Component Funds. All ATID Assessment Funds collected, and any earnings thereon, are irrevocably dedicated to the purposes described in this Management Plan. Any amount of either the Marketing Component Funds ef, the Transportation Component Funds or Housing Component Funds that is not spent in eeeanyone (1) fiscal year shall remain dedicated to such purposes. The City shall enter into a contract with an entity ("Contracting Entity") that will be responsible for handling the day-to-day management of the Marketing Component Funds, under which the City's sole and limited financial obligation shall be to distribute funds from the ATID Assessments pursuant to the terms of this Management Plan and its contract with the Contracting Entity. Details regarding the management of all these funds, decision -making regarding priorities and other related matters are provided in Section 021 of this Management Plan. 44 , . . . . .. . , .� . . IT - WORM . WWI.� .%seyeRty.% Annual Report. The Contracting Entity, which is responsible for managing the day-to-day affairs with respect to the Marketing Component Funds, aPA--the Transportation Committee, which is responsible for overseeing the Transportation Component Funds, and the Housing Committee, which is responsible for overseeing the Housing Component Funds, shall each file an annual report with the City in accordance with Section 2.14.150 of the TID Enabling Ordinance. If, and to the extent that the City elects to issue bonds pursuant to Section 2.14.140 of the TID Enabling Ordinance for the purpose of financing authorized transit improvements, the sole source of payment of debt services and other costs of such bonds shall be from the Transportation Component Funds and no portion of the Marketing Component Funds shall be pledged to or otherwise be available to pay such costs for the term of the ATID. W SECTION 017 Tug'rr"o"zi- AND -MANNER OF r`_.nG66EEGTIn�ayASSESSMENTS TIME AND MANNER OF COLLECTING ASSESSMENTS The City Council found and determined that the public convenience and necessity required the establishment of the ATID and that all Assessed Facilities within the ATID shall be specifically benefitted from the expenditure of the funds raised by the ATID Assessments to be levied. Any future Assessed Facilities opened within the boundaries of the ATID shall be automatically included in the ATID Assessment collection system as they will be specifically benefitted by the expenditure of funds raised by the ATID Assessments levied. Assessment. All Assessed Facilities shall pay an assessment in the amount equal to two percent (2%) of the hotel room "rent" (as defined in Anaheim Manieipal node See-ti R _2 2.905 980) ehaFged by the AMC Section 2.12.005.140, or the rent equivalent as set forth in any applicable development agreement or any time-share agreement pursuant to AMC 2.12.013) charged by the operator of such facility. This assessment shall also apply to all Vacation Ownership Resort units, as such term is defined in AMC Sections 18.114.030.150.1501 and 18.116.030.100 that are: (a) constructed as or converted to Vacation Ownership Resorts and commence operation after adoption of the First Amended and Restated Management Plan on , 2025 and (b) are located within the ATID area boundary. The Assessed Facility shall be solely responsible for payment of such assessment. Collection by City. Each Assessed Facility shall, on or before the close of City business on the last City business day of each month, file a return with the City -designated collector on forms provided by such collector stating the total rents charged during the immediately preceding calendar month. The full amount of the ATID Assessments shall be remitted to the City collector along with the return. Penalty for Non -Payment. Any Assessed Facility that fails to remit any ATID Assessments within the time required shall: (i) pay interest equal to one and one-half percent (1.5%) per month on the outstanding amount due from the first (15t) day immediately following the due date until the date of payment; (ii) pay a penalty of ten percent (10%) for each month, or portion thereof, said payment is overdue, from the first (15Y) day immediately following the due date provided, that the amount of such penalty shall not exceed fifty percent (50%) of such delinquent ATID Assessment; and (iii) pay any collection costs incurred by the City. Any and all interest and penalties collected shall be deposited into the same accounts that hold ATID Assessment revenues and shall be used solely for the same authorized purposes of such revenues. FVZ _' . SECTION 018 SPECIFIC NUMBER OF YEARS IN WHICH THE ASSESSMENT WILL BE LEVIED Concurrently with the establishment of the ATID, the City Council i,, r e, asked to approve a resolution authorizing bonds to be paid from the City General Funds for improvements to or expansion of the Convention Center (including the Plaza). ►^ light „f thiS ff ,,sed- +., ent by the Specifically, on November 16, 2010, the City Council authorized the issuance of debt not to exceed $20,000,000 to finance the expansion of the Convention Center. On December 15, 2010, the City Council issued $20,000,000 in Lease Revenue Notes. Therefore, at formation of the ATID in 2010, the owners of the Assessed Facilities anticipated that the City Council would approve a resolution authorizing bonds to be paid from the City General Funds or other special funds, other than ATID assessments, for improvements to or expansion of the Convention Center (including the Plaza). Therefore, pursuant to AMC Section 2.14.170.010 and the Section 10 of the Resolution of Formation, the Disestablishment provisions of Section 2.14.170 shall not become operative during the initial thirty (30) year term of the ATID and the assessment period for the ATID is for a minimum of thirty (30) years commencing October 31, 2010. 2. • E r, �ri 49 MaNTEM I 1 Iw m HE SECTION 019 — Reserved. NOTE — This section relates to the adoption of the Original Plan on September 2 2010. Since all actions relating to adoption and establishment of ATID in 2010 have been completed this section has been moved to Appendix B and retained for informational purposes. .24 SECTION 020 A LIST OF THE KNOWN BUSINESSES TO BE ASSESSED (AS OF SEPTEMBER 2025) Alamo Inn & Suites 1140 W Katella Ave Alpine Motel 715 W Katella Ave America's Best Value Inn 425 W Katella Ave Anaheim Camelot Inn & Suites 1520 S Harbor Blvd Anaheim Carriage Inn 2125 S Harbor Blvd Anaheim Del Sol Inn 1604 S Harbor Blvd Anaheim Desert Inn and Suites 1600 S Harbor Blvd Anaheim Desert Palms Hotel and Suites 631 W Katella Ave Anaheim Discovery Inn & Suites 1126 W Katella Ave Anaheim Fairfield Inn by Marriott 1460 S Harbor Blvd Anaheim Harbor R V Park, L P 1009 S Harbor Blvd Anaheim Hotel 1700 S Harbor Blvd Anaheim Inn 1630 S Harbor Blvd Anaheim Maingate Inn 1211 S West St Anaheim Majestic Garden Hotel 900 S Disneyland Dr Anaheim Marriott 700 W Convention Way Anaheim Portofino Inn & Suites 1831 S Harbor Blvd Ayres Hotel 2550 E Katella Ave Best Western Courtesy Inn 1070 W Ball Rd Best Western Park Place Inn 1544 S Harbor Blvd Best Western Pavilions 1176 W Katella Ave Best Western Raffles Inn & Suites 2040 S Harbor Blvd Best Western Stovalls Inn 1110 W Katella Ave Budget Inn 1042 W Ball Rd California Inn 909 S Harbor Blvd Cambria Hotel & Suites Anaheim Resort 101 E Katella Ave Candlewood Suites Anaheim Resort Area 1733 S Anaheim Blvd Candy Cane Inn 1747 S Harbor Blvd Capri Suites Anaheim 2141 S Harbor Blvd Castle Inn & Suites 1734 S Harbor Blvd Clarion Hotel Anaheim Resort #740 616 W Convention Way Clementine Hotel & Suites Anaheim 1700 S Clementine St Comfort Inn & Suites 300 E Katella Ave Cortona Inn & Suites Anaheim Resort 2029 S Harbor Blvd Courtyard Anaheim Resort/Convention 2045 S Harbor Blvd Courtyard Marriott Anaheim Theme Park Entrance 1420 S Harbor Blvd Days Inn 1030 W Ball Rd Days Inn & Suites Anaheim 11111 S Harbor Blvd Q Disneyland Hotel 1150 W Magic Way Disney's Grand Californian Hotel 1600 S Disneyland Dr Dolphin's Cove Resort 465 W Orangewood Ave Doubletree Suites Anaheim Convention 2085 S Harbor Blvd Eden Roc Inn & Suites 1830 S West St Element Anaheim Resort Convention Center 1600 S Clementine St Extended Stay America #8738 1742 S Clementine St Four Points by Sheraton Anaheim 1221 S Harbor Blvd Frontier Motel 933 S Harbor Blvd Grand Legacy at The Park 1650 S Harbor Blvd Hampton Inn & Suites by Hilton Anaheim 100 W Katella Ave Hilton Anaheim 777 W Convention Way Hilton Garden Inn & Suites Anaheim 1441 S Manchester Ave Holiday Inn & Suites Anaheim 1240 S Walnut St Holiday Inn Express & Suites Anaheim 1411 S Manchester Ave Home2suites Anaheim Resort 1441 S Manchester Ave Homewood Suites Anaheim Resort 2010 S Harbor Blvd Hotel Indigo 435 W Katella Ave Hotel Lulu 1850 S Harbor Blvd Howard Johnson Plaza Hotel 1380 S Harbor Blvd Hyatt House at Anaheim Resort Convention 1800 S Harbor Blvd Hyatt Place at Anaheim Resort 2035 S Harbor Blvd Islander Inn & Suites 424 W Katella Ave J W Marriott Anaheim Resort 1775 S Clementine St Kings Inn Anaheim 415 W Katella Ave La Quinta Inn & Suites Anaheim 1752 S Clementine St Little Boy Blue Motel 416 W Katella Ave Magnolia Tree Hotel 2176 S Harbor Blvd Motel 6 2145 S Harbor Blvd Motel 6 Disney LLC 100 W Disney Way Park Vue Inn 1570 S Harbor Blvd Peacock Suites Resort Hotel 1745 S Anaheim Blvd Pixar Place Hotel 1717 S Disneyland Dr Quality Inn & Suites Anaheim at The Park 1166 W Katella Ave Queens Inn 620 W Orangewood Ave Ramada Anaheim Convention Center 2060 S Harbor Blvd Residence Inn at Anaheim Resort/Convention Center 640 W Katella Ave Riviera Motel 410 W Katella Ave Sheraton Park Hotel at the Anaheim Resort 1855 S Harbor Blvd Signature Anaheim Maingate 2200 S Harbor Blvd Solara Inn and Suites 921 S Harbor Blvd Sonesta Anaheim 1915 S Manchester Ave Sonesta Es Suites Anaheim 1855 S Manchester Ave pX3 Springhill Suites Anaheim Maingate 1160 W Ball Rd Springhill Suites at Anaheim Resort/Convention Center 1801 S Harbor Blvd Stanford Inn & Suites 2171 S Harbor Blvd Staybridge Suites Anaheim at the Park 1050 W Ball Rd Suncoast Park Hotel Anaheim 1640 S Clementine St Super 8 Anaheim Disneyland Drive 915 S Disneyland Dr The Viv Hotel Anaheim 1601 S Anaheim Blvd The Westin Anaheim Resort 1030 W Katella Ave Towneplace Suites by Marriott 1730 S State College Blvd Travelodge Anaheim 1057 W Ball Rd Tropicana Inn 1540 S Harbor Blvd Worldmark The Club (Hotel) 201 W Katella Ave Wyndham Anaheim Hotel 515 W Katella Ave F- ,- �• • II. •. • _b. . _1.11. E ME I_ 26 P-M SECTION 021 STRUCTURE GOVERNING IMPLEMENTATION OF THE MANAGEMENT PLAN AND THE ALLOCATION OF ATID REVENUES INCLUDING THE MARKETING COMPONENT FUNDS, THE TRANSPORTATION COMPONENT FUNDS, AND HOUSING COMPONENT FUNDS The structure governing the implementation of the ATID and the use and management of the Marketing Component Funds, the Transportation Component Funds and Housing Component Funds and related activities is set forth below. 1. MARKETING COMPONENT Section 2.14.150 of the TID Enabling Ordinance sets forth the requirements of the "Advisory Board" as well as the "Contracting Entity" as follows: The City Council "may designate an Advisory Board that shall make recommendations to the City Council regarding the expenditures of revenues derived from the levy of the assessments pursuant to this chapter, the classification of businesses, as applicable, and the method and basis of levying the assessments." "The City shall enter into a contract with an organization ("Contracting Entity") to provide for day-to-day management of any activities, services and advertising (not improvements) authorized to be funded with the assessments." On June 18, 2024, the City Council established the Anaheim Tourism Improvement District (ATID) Advisory Board. The role of the Advisory Board is limited to making recommendations to the City Council either directly or through recommendations to the Contracting Entity or the ATID Transportation Committee as part of preparation of the ATID Annual Report. The duties of the ATID Advisory Board are set forth in AMC Chapter 2.14 and the Advisory Board Bylaws. The City intends that the uses of the Marketing Component Funds shall reflect the needs of the Assessed Facilities. Therefore, one of the criteria the City shall use in selecting the Contracting Entity is that it is, or will be, structured in a manner that provides adequate representation of the needs of the Assessed Facilities. Altematively, whole the City d9es not, Subject to execution of a mutually agreeable contract with the City and continuing for the term of the contract, " Visit Anaheim serves in the capacity of the Contracting Entity. The Contracting Entity will have the authority to administer the Marketing Component Funds on a day-to-day basis consistent with the Enabling Ordinance, the Resolution of Intention, the Amended and Restated Management Plan, and its contract with the City. The Contracting Entity shall have full authority to present, a review, and approve an annual Marketing Component Funds budget. The Marketing Component Funds budget will be presented at least one (1) time per year, to all owners and operators of Assessed Facilities in an open public forum. At such public forum, the Contracting Entity shall solicit feedback on existing ATID marketing programs and solicit new concepts to maximize the beneficial impact to Assessed Facilities. The Contracting Entity shall take all the information gathered from the forum and present their findings in the form of an annual report each City fiscal year for which assessments are to be levied and collected to pay the costs of the improvements and activities described in the report. The report may propose changes, including, but not limited to, the boundaries of the ATID, the basis and method of levying the assessments, any changes in the classifications of property, changes in the Management Plan, and the activities and improvements to be funded by Marketing Component Funds. The annual report shall follow the guidelines and requirements for the Annual Report as articulated in Section 2.14.150.030 of the Enabling Ordinance. This will be implemented under the corporate authority of the Contracting Entity as articulated in Section 022 of this Management Plan. The City's financial obligations under the contract with the Contracting Entity shall be solely limited to distributing ATID Assessments, and other Funds as may be specified in the contract, per the terms of the contract and this Management Plan and under no circumstances shall the City have any financial liability to the Contracting Entity from its own funds, except such Funds specified in the contract. 2. ,TRANSPORTATION COMPONENT The Transportation Committee shall oversee the use of the Transportation Component Funds and have full authority to present, review, and approve an annual Transportation Component Funds budget. The Transportation Committee shall advise and recommend the use of such funds to the City Manager of Anaheim consistent with such budget. The City Manager shall administer the Transportation Component Funds on a day-to-day basis consistent with the Enabling Ordinance, the Resolution of Intent and the Management Plan, as overseen by the Transportation Committee. The three (3) member Transportation Committee shall be annually appointed as follows: a. One (1) representative appointed by the Anaheim City Manager; b. One (1) representative appointed from the largest single contributor in the aggregate by brand to the ATID;2 and c. One (1) representative recommended by the V41BContracting Entity Board of Directors, who shall also be an owner or operator of an Assessed Facilitya and approved by the other two representatives on the committee. The Transportation Committee shall take all the information gathered from its regular meetings and present their findings in the form of a report each City fiscal year for which assessments are to be levied and collected to pay the costs of the improvements and activities described in the report. The report may propose changes, including, but not limited to, the allocation of transportation -related projects, capital improvements related to transportation - related projects, activities and programs that promote transportation to the rail station to the Assessed Facilities, master plan related expenditures, and the activities and improvements to be funded by the Transportation Component Funds. The annual report shall follow the guidelines and requirements for the Annual Report as articulated in Section 2.14.150.030 of the Enabling Ordinance. 3. HOUSING COMPONENT The Housing Committee shall oversee the use of the Housing Component ATID funds and shall have full authority to develop and approve an annual Housing Component Funds budget. The Housing Committee shall advise the City Manager of the approved budget and use of the funds. The City Manager or designee shall administer the Housing Component Funds consistent with the Housing Committee direction and the Anaheim Local Housing Trust Fund provisions. The Housing Component Committee shall include five (5) members appointed annually including: a. One (1) representative appointed by the Anaheim City Manager; b. One (1) representative appointed from the largest single contributor in the aggregate by brand to the ATID;z c. Three (3) representatives recommended by the Contracting Entity Board of Directors; with at least one representing a small hotel (less than 300 rooms) and who are also owners or operators of an Assessed Facility, The Housing Committee shall take all the information gathered from its regular meetings and present their findings in the form of a report each City fiscal year for which assessments are to be levied and collected to pay the costs of the improvements and activities described in the report. The report may include proposed changes, including, but not limited to, the allocation to housing -related projects, activities, improvements, services and programs that support workforce housing programs for employees of the Assessed Facilities funded with Housing Component Funds. The annual report shall follow the guidelines and requirements for the Annual Report as articulated in Section 2.14.150.030 of the Enabling Ordinance. Z In the first (111) year following the establishment of the ATID, the determination of the largest single contributor shall be based on projected ATID assessment payments. In each subsequent year, the determination shall be based on actual ATID assessment payments in the preceding year. 0 SECTION 022 � ', REQUIRED COST RECOVERY INFORMATION SPECIFIED IN SECTION 2.14.130.010 Funds allocated for the investigation, formation and implementation of the ATID from the City may be reimbursed from the first (1st) year proceeds of the assessments generated by the ATID above and beyond, and in addition to, the one percent (1%) limitation set forth above. The Enabling OFelinance allevis the fellewinglFunds allocated for the investigation, formation and implementation of the ATID amendments, including the First Amended and Restated Management Plan, in 2025 from the City may be reimbursed from the proceeds of FY 26-27 of the assessments generated by the ATID above and beyond, and in addition to, the one percent (1%) limitation setforth above. The Enabling Ordinance allows the following: 2.14.130 COST RECOVERY. .40.010The city council may authorize a district formed pursuant to this ordinance to recover though the assessments, the cost incurred information of and amendments to the district, including: .040.011 The cost of preparation of the management plan or amendments to Plan. -14.012The cost of printing, advertising and the giving of published, posted, or mailed notices. 4.2.013Compensation of any attorneys or other consultants employed to render services related to the formation of and amendments to any district including proceedings under this ordinance. .4.014Any other costs associated with the formation of and amendments to the district. The costs of the City for investigation, formation and implementation of the ATID in 2010 a-Fewere estimated not to exceed: three hundred and fifty thousand dollars ($350,000). The costs of the City for investigation, development, and implementation of the amendments to the ATID, including this First Amended and Restated Management Plan, in 2025 are estimated not to exceed: two hundred forty thousand dollars ($240,000). Ongoing Administrative Cost Recovery by the City of Anaheim: The annual reimbursed costs of the City for administering, collecting, sending penalty notices, and auditing all Assessed Facilities shall Ant exceedegual one percent (1%) of the gross amount collected annually by the City for the ATID. The actual cost recovery costs, P,Gte ual to exreed the_one percent (1° , o shall be deducted from the total amount collected prior to any distributions of the Marketing Component Funds o_; , the -34 Transportation Component Funds or the Housing Component Funds. EXHIBIT A SAMPLE BUDGET FOR THE MARKETING COMPONENT FUNDS rrrr-r_Na-rr.-:lrrr:irakrlVmW.sIsm -rrrrria-rr.�:�rr.�:srar�mm-zrrru- rq • . 1 1 ExhibitA NOTE: The below budget was an estimate of a budget included in the Original Plan adopted on September 2, 2010. It is deleted as out-of-date. Appendix A — Former Section 015 (For Information Purposes Only) SECTION 015 BACKGROUND -THE TOTAL ANNUAL AMOUNT PROPOSED TO BE EXPENDED FOR THE FIRST FIVE (5) YEARS OF OPERATION OF THE ATID (FY 2010-11 through 2014-15) In an effort to plan conservatively, the following table assumes that there will not be any growth of new hotels or assessed facilities within the ATID boundaries of the Anaheim Resort Area or the Platinum Triangle within the next five (5) years. It also assumes that the room rates and occupancy rates will grow at a rate of only three percent (3%) per year. Any adjustments in revenue from the addition or subtraction of rooms and/or fluctuations in room and occupancy rates will be reported to the Contracting Entity (defined below) and the Transportation Committee (defined below), which in turn will recommend any budgetary changes to the City Manager and City Council annually. A sample annual budget for the Marketing Component Funds (defined below) is attached hereto as Exhibit A. The following figures are net of the City's administrative costs of up to a maximum of one percent (1%) of ATID revenues. The twenty-five percent (25%) and seventy-five percent (75%) allocation may be reallocated at a later date pursuant to the reallocation provisions in Section 016 hereof. YEAR PERCENTAGE OF THE TOTAL AMOUNT AVAILABLE (FY) CATEGORY ATID BUDGET FOR ATID EXPENDITURE 2010-11 (Partial Formation Costs of Year*) the City n/a $350,000.00 Marketing Component 75% of remaining Funds amount $4,360,811.00 Transportation Component 25% of remaining Funds amount $1,453,604.00 To tol 100% $ 6,164, 415.00 2011-12 Marketing Component Funds 75% $7,140,024.00 Transportation Component Funds 25% $2,380,008.00 Total 100% $9,520,032.00 2012-13 Marketing Component Funds 75% $7,354,225.00 Transportation Component Funds 25% $2,451,408.00 Total 100% $9,805,633.00 2013-14 Marketing Component Funds 75% $7,574,851.00 Transportation Component Funds 25% $2,524,950.00 Total 100% $10,099,801.00 2014-15 Marketing Component Funds 75% $7,802,097.00 Transportation Component Funds 25% $2,600,699.00 Total 100% $10,402,796.00 Marketing Component Fund Total for 15i 75% $34,232,008.00 5 Years of Transportation Component ATID Funds 25% $11,410,669.00 Total 100% $45,642,677.00' *It is currently estimated that ATID Assessments will be collected for eight (8) months of the 2010-11 fiscal year. Therefore, the ATID expenditure for the 2010-11 fiscal year is estimated based on eight (8) months of collections. 1 Total does not include 2010-11(Partial Year) City Formation Costs of $350,000. APPENDIX B - FORMER SECTION 019 THE PROPOSED TIME FOR IMPLEMENTATION AND COMPLETION OF THE ANAHEIM TOURISM IMPROVEMENT DISTRICT ACTION TAKEN BY THE CITY EXPLANATION DATE/STATUS COUNCIL Adoption of TID Enabling This is the local legislation that allows July 20, 2010, Adopted Ordinance by the City for the creation of the new ATID unanimously by the City Council Council Resolution of Intent to Signifies the City's intention to hold a July 27, 2010, Adopted Establish the ATID public hearing to consider unanimously by the City establishment of the new ATID Council Finalization of the ATID Week of August 30, 2010 Pending Management Plan Circulation of petitions of Though not required, the VCB will Pending, petitions should by ATID Members circulate petitions among ATID hotel begin circulation around informing the City Council owners and operators to demonstrate August 30, 2010 of their support of the support of the ATID at the September ATID 14, 2010 public hearing Public Meeting/City Input sought by City Council for the August 31, 2010 Council Chambers proposed ATID Public Hearing, Resolution Public Hearing to hear all positions of September 14, 2010. of Formation/City support and opposition to the ATID is formed if the City Chambers proposed levying of the assessment on Council adopts the affected businesses to fund the special Resolution of Formation benefits proposed in the ATID by majority vote First bills sent out by the Notices informing all Assessed Notices sent out mid City to inform ATID Facilities that ATID fees will be October assessed facilities of their required to be collected, or paid obligation to pay the 2% commencing November 1, 2010 ATID assessments for each occupied room rent First ATID payments made Covering November ATID assessments Early December to the City First transfer of ATID Collections by the City, placed in a Late December funds from the City to the segregated account. 75% of the Contracting Entity collections sent to the Contracting Entity ATID funds allocated on Managed by the Contracting Entity and January 2011 behalf of all ATID Transportation Committee Assessed Facilities CLERK'S CERTIFICATE STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss. CITY OF ANAHEIM ) I, THERESA BASS, City Clerk of the City of Anaheim, do hereby certify that the foregoing is the original Resolution No. 2025-088 adopted at a regular meeting provided by law, of the Anaheim City Council held on the 231 day of September, 2025 by the following vote of the members thereof: AYES: Mayor Aitken and Council Members Meeks, Balius, Leon, Rubalcava, Kurtz and Maahs NOES: None ABSTAIN: None ABSENT: None IN WITNESS WHEREOF, I have hereunto set my hand this 26th day of September, 2025. x i' CITY ERK OF THE CITY OF ANAHEIM (SEAL)