Pasadena Tourism Business Improvement District March 12, 2018

TBID Overview The TBID movement began in West Hollywood, California, in 1989 TBIDs have revolutionized destination marketing funding TBIDs have now spread to 172 destinations across 14 states The district places a charge on hotel room sales, which is collected by the jurisdiction and dedicated to funding marketing programs The funding is managed and programs are implemented by a dedicated nonprofit corporation (like the PCOC) or advisory board

Pasadena TBID Initially formed by City Council in 2003 under the Parking and Business Improvement Area Law of 1989 (the ‘89 law) Established to fund the destination and event marketing efforts that were funded by revenues of the PCOC and the PCOC share of the TOT, freeing those funds to be used for debt service on the new construction of the convention center. Monies generated from the TBID must be used for the general promotion of tourism within the TBID

Pasadena TBID Conversion The PCOC Board and Pasadena hoteliers wish to convert the Pasadena TBID from the ‘89 law to the Property and Business Improvement District Law of 1994 (the ‘94 law). This modernization will allow for a 5-year term, as opposed to annual renewal TBID funds raised will continue to be returned to the PCOC to manage and implement funding, in accordance with the Management District Plan Three (3) existing property-based districts currently operate under the ‘94 law in Pasadena: Old Pasadena Management District, the South Lake Avenue District and Pasadena’s Playhouse District.

Pasadena TBID Conversion Process New District begins Operation: July 1, 2018 – June 30, 2023 ‘89 district expires – June 30, 2018 City Council – Public Hearing / Resolution of Formation: April 16, 2018 City Council – Public Meeting: March 12, 2018 Notice mailed to all assessed lodging businesses City Council – Resolution of Intention: February 26, 2018 Petition Drive – 81.42% support from Hoteliers: January 2018 Submit MDP to City for Review: January 2018 Hotel & Stakeholder review of MDP: June – December 2017 Develop Management District Plan (MDP): June 2017 Outreach & Education: April – June 2017

Pasadena TBID District Parameters Boundaries All lodging businesses within the City of Pasadena Services Marketing and Sales programs to promote Pasadena as a tourist, meeting and event destination Assessment Rate 2.89% of room rental revenue Annual Budget $3,800,000 Term 5 years: July 1, 2018 – June 30, 2023 Management PCOC Board of Director’s will serve as “Owner’s Association, and is charged with managing funds and implementing programs in accordance with the Management District Plan.

PCOC Board of Director’s Composition Six (6) directors appointed by the Mayor of Pasadena; One (1) director representing Innovate Pasadena or the technology industry; One (1) director representing a Pasadena Arts Institution; One (1) director with an economic interest in commercial real property located within the proposed midtown/civic auditorium sub-district; and Three (3) directors representing the community at large with hospitality or business background/experience.

PCOC Board of Director’s Composition (continued) Four (4) directors representing major hotels with 250+ rooms; Two (2) directors representing minor hotels with 100-249 rooms; One (1) director representing the Pasadena City Manager; One (1) director who shall be a Pasadena City Council member; and One (1) director who shall be a Tournament of Roses member.

Next Steps City Council – Public Meeting: March 12, 2018 New District begins Operation: July 1, 2018 – June 30, 2023 ‘89 district expires – June 30, 2018 City Council – Public Hearing / Resolution of Formation: April 16, 2018 City Council – Public Meeting: March 12, 2018