Regular 3.
Regular City Council Meeting
- Meeting Date:
- 05/08/2017
- TITLE
- Public hearing and resolution creating Tourism Business Improvement District No. 0002
- PRESENTED BY:
- Tina Volek
- Department:
- City Hall Administration
Presentation:
PROBLEM/ISSUE STATEMENT
The City Council created the Tourism Business Improvement District (BID) No. 0002 on October 1, 2007. The State law that allows cities to create BIDs also sunsets districts after 10 years and renewing them requires the same procedure as the original formation. Property owners who control over 60% of the city's total hotel square footage submitted a petition to extend/re-create the district. On April 10, the City Council adopted Resolution No. 17-10614, which stated the Council's intention to create the district. A public hearing was advertised for May 8 and notifications were sent to all assessable property owners. After the Council conducts the public hearing, it may adopt the attached resolution that will extend or re-create the district, effective October 1, 2017.
BIDs require a governing board. State law is specific about how to create the initial district's board, even specifying how many years the initial members may serve on the board. However, it is silent about how to create a Board when a district is extended or renewed. City and TBID staff have agreed that the safest course is to follow State law and to treat the renewed district board as if this was an entirely new district. Therefore, if the Council approves the resolution and creates the TBID, staff will work with the Mayor to solicit new TBID Board applications in June or July 2017. The Mayor will review the applications and nominate 5-7 board members. The Council will review and may approve the Mayor's nominations before October 1, when the renewed district goes into effect.
BIDs require a governing board. State law is specific about how to create the initial district's board, even specifying how many years the initial members may serve on the board. However, it is silent about how to create a Board when a district is extended or renewed. City and TBID staff have agreed that the safest course is to follow State law and to treat the renewed district board as if this was an entirely new district. Therefore, if the Council approves the resolution and creates the TBID, staff will work with the Mayor to solicit new TBID Board applications in June or July 2017. The Mayor will review the applications and nominate 5-7 board members. The Council will review and may approve the Mayor's nominations before October 1, when the renewed district goes into effect.
ALTERNATIVES ANALYZED
City Council may:
- Approve the resolution creating an extended or renewed Billings Tourism Business Improvement District No. 0002, or;
- Amend and adopt the resolution, as long as the amendments conform to state law, or
- Disapprove the resolution and provide guidance to staff.
FINANCIAL IMPACT
The hotels report the number of occupied room nights each quarter, the City Finance Department creates an annual assessment statement and the County Treasurer collects the fees . The City may not charge BIDs for this service.
The Visit Billings marketing budget to draw tourists to Billings has increased from $238,000 to $2.2 million under the TBID. Since it has been approved, there have been 259 major conventions, totaling 211,400 room nights in Billings, with an economic impact of $47.6 million on gas, retail, convenience stores and hotels.
The Visit Billings marketing budget to draw tourists to Billings has increased from $238,000 to $2.2 million under the TBID. Since it has been approved, there have been 259 major conventions, totaling 211,400 room nights in Billings, with an economic impact of $47.6 million on gas, retail, convenience stores and hotels.
RECOMMENDATION
Staff recommends that the City Council conduct a public hearing and approve the resolution that extends or renews the Billings Tourism Business Improvement District No. 0002.