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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 for local destination marketing. 120 09110 With competitors raising their budgets, and increasing rivalry 100 88 95 9910110 80 61 64 70 75 for visitor dollars, it is important that Tri-Valley 60 29 32 38 41111 lodging businesses continue to zo9 12 19 25 invest in stable,lodging-specific 0 1 2 = • . ' I III 111111 marketing programs. Ol UIl 0 ---1 N m l!1 l0 f- COal 0 , N m C UI t.0 N CO Cl 0 Cl00 0 0 0 0 0 0 0 0 0 0 - , 1-1 , t--1 , , e-1 1-1 , N rn rn o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 TMDs utilize the efficiencies of e-1 N N N NNNNNNNN N N NNNNNNNNN 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 VISIT 6 February 3,2022 tijiz california