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III. WHAT IS A TOURISM BUSINESS IMPROVEMENT DISTRICT? Tourism Business Improvement Districts (BIDs) utilize the efficiencies of private sector operation in the market-based promotion of tourism districts. Tourism BIDs allow hotel and tourism-related business owners to organize their efforts to increase tourism. Tourism-related business owners within the district fund a BID and those funds are used to provide services that the businesses desire and that benefit the lodging businesses within the District. Tourism BID services may include, but are not limited to: ~ Marketing of the Area ~ Tourism Promotion Activities ~ Special Events and Programs In California, Tourism BIDs are formed pursuant to the Property and Business Improvement District Law of 1994 (PBID Law) or the Parking and Business Improvement District Law of 1989 (BID Law). The Tri- Valley lodging businesses have chosen to use the PBID Law in order to have a term of five years. These laws allow for the creation of a special benefit assessment district to raise funds within a specific geographic area. The key difference between BIDs and other special benefit assessment districts is that funds raised are returned to the vrivate non- vrofit corvoration governing the district. There are many benefits to Tourism BIDs: ~ Funds cannot be diverted for other government programs; ~ Tourism BIDs are customized to fit the needs of each tourism district; ~ They allow for a wide range of services, including those listed above; ~ Tourism BIDs are designed, created and governed by those who will pay the assessment; ~ Requires petition support from lodging businesses paying over 50% of the annual proposed assessments (1994 PBID Law) ~ They provide a stable funding source for tourism promotion. The Property and Business Improvement District Law of 1994 (AB 3754) as amended January 1, 2005 is provided in Appendix 1 of this document. Tri-Valley Tourism BID Management District Plan Page 3