RES 221266 - Laserfiche WebLink

III. BACKGROUND TMDs are an evolution of the traditional Business Improvement District. The first TMD was formed in West Hollywood, California in 1989. Since then, over 100 California destinations have followed suit. In recent years,other states have begun adopting the California model—Montana,South Dakota, Washington,Colorado,Texas and Louisiana have adopted TMD laws. Several other states are in the process of adopting their own legislation. The cities of Wichita,Kansas and Newark,New Jersey used an existing business improvement district law to form a TBID. And, some cities, like Portland, Oregon and Memphis, Tennessee have utilized their home rule powers to create TMDs without a state law. California's TMDs collectively Number of Districts Operating in raise over$300 million annually California I for local destination marketing. ost10 With competitors raising their 120 s8 95 991011041budgets, and increasing rivalry 100 __. �_� ---__-- --_ - - 7Q 75 for visitor dollars, it is gp ,_ 61_64 sa important that TriValley 60 40 — — 2 19 29 32 38 46y lodging businesses continue to 20 invest in stable,lodging-specific %z q 6 ■.'r �a marketing programs. 0 al Lf) 0 ,I N lfl lD N 00 Ol O ,4 N rrl Vl LID N CO Ol 0 Co Ol O O O O O O O O O O 1-1 `'-i `� `� N TMDs utilize the efficiencies of CT) 0 0 0 O l Ql O O O O O O O O O O O O O O O O O O O O N N NNNNNN N N N N N N NNNNNNNN — — — --- private sector operation in the market-based promotion of tourism districts. TMDs allow lodging business owners to organize their efforts to increase demand for room night sales. Lodging business owners within the TMD pay an assessment and those funds are used to provide services that increase demand for room night sales. In California, most TMDs are formed pursuant to the Property and Business Improvement District Law of 1994. This law allows for the creation of a benefit assessment district to raise funds within a specific geographic area. The key derence between TMDs and other benefit assessment districts is that funds raised are returned to the private non-profit corporation governing the district. There are many benefits to TMDs: • Funds must be spent on services and improvements that provide a specific benefit only to those who pay; • Funds cannot be diverted to general government programs; • They are customized to fit the needs of payors in each destination; • They allow for a wide range of services; • They are designed, created and governed by those who will pay the assessment;and • They provide a stable,long-term funding source for tourism promotion. TVTMD Management District Plan T1'.4 ta>VISITragod' � 6 October 19,2021 Nitv california