HomeMy WebLinkAboutReso 47-18 Amending the Hotel (TOT) Incentive Program RESOLUTION NO. 47 — 18
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
APPROVING AN AMENDENT TO THE HOTEL
(TRANSIENT OCCUPANCY TAX) INCENTIVE PROGRAM
WHEREAS, the City Council has made economic development a high priority and has asked
Staff to evaluate possible incentives to renovate or update commercial areas in Dublin; and
WHEREAS, the City Council desires to encourage the development of new high-quality hotels,
as well as promote reinvestment in existing hotels in the City of Dublin, and
WHEREAS, on November 7, 2017, the City Council of the City of Dublin approved Resolution
139-17 which established a Hotel (Transient Occupancy Tax) Incentive Program, and
WHEREAS, amending the Program may allow the City greater flexibility to negotiate with a
hotel developer.
NOW THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin does hereby
approve amendments to the Hotel (Transient Occupancy Tax) Incentive Program attached hereto as
Exhibit A to this Resolution.
BE IT FURTHER RESOLVED that the City Manager or designee is authorized to execute the
Program and any associated agreement and to undertake such further actions as may be necessary
and desirable to carry out the intent of this resolution.
PASSED, APPROVED AND ADOPTED this 15th day of May 2018, by the following vote:
AYES: Councilmembers Goel, Gupta, Hernandez, Thalblum and Mayor Haubert
NOES:
ABSENT:
ABSTAIN:
AV
ATTEST: J I Mayor
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City Clerk
Reso No. 47-18, Adopted 5/15/2018, Item No. 4.8 Page 1 of 1
Exhibit A to Resolution
COTO
DUBLIN CALIFORNIA
Hotel (Transient .Occupancy Tax)
THE NEW
BACK CAN YARD Incentive Program
PURPOSE:
To offer a financial incentive program which encourages the development of new hotels, as well as
promote reinvestment in existing hotels in the City of Dublin.
ELIGIBILTY:
1. Hotel must be of a high quality that it meets a four (first class) /three star (comfort new hotel) or
four (first class)/three diamond (comfort new hotel) hotel rating or higher under the rating
criteria established by the American Automobile Association (AAA), JD Power and Associates, or
comparable hotel rating entity which includes hotel operations on a 24-hour per day, 7 days a
week basis; Hotel must offer housekeeping services, food and beverage services, high-quality
finishes, room services, banquet and meeting services, including at least 10,000 square feet of
meeting/banquet space, concierge and bell services, and parking services.
2. Hotel must provide independent, third-party, certification acceptable to the City of the level of
the quality of the new hotel as a four (first class)/three-star (comfort new hotel) or four (first
class)/three diamond (comfort new hotel) hotel as defined above.
3. Hotel must have 125 or more rooms.
4. Existing hotels seeking funds for redevelopment must measurably and demonstrably improve
the quality of the hotel through either increased capacity or ability to charge higher room rates,
and/or enhancements to the hotel's ratings by AAA,JD Power, etc.
5. On a case-by-case basis, the City Manager or his/her designee may negotiate with the applicant
regarding the meeting space requirement and additional improvements that are deemed to be
consistent with the intent of the program.
FINANCIAL NEED:
As part of the application, a feasibility analysis shall be completed by the applicant to demonstrate a
funding gap between operating performance and project development or improvement cost. The
analysis will be independently reviewed by a City consultant, and must prove that, but for this program,
the development or improvement would not occur.
LIMITS:
1. The Transient Occupancy Tax (TOT) rebate will be no more than 70% for a 4-star hotel and no
more than 50%for a 3-star hotel. Existing hotels that are renovated are eligible to receive a TOT
rebate of no more than 50% of the increment above existing TOT levels for no longer than 10
years.
2. The term of the TOT rebate shall be no longer than 20 years for a 4-star hotel, and no longer
than 15 years for a 3-star hotel. Any change in star rating below 3 stars for the applicant
Approved by Resolution No.47-18 on 5/15/18
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Hotel (Transient Occupancy Tax)
THE NEW
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Incentive Program
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throughout the lifetime of the agreement will result in termination of the agreement. A
reduction from a 4-star hotel rating to a 3-star hotel rating will result in a reduction of the term
of the TOT rebate, consistent with that of a 3-star hotel.
3. The amount of the TOT rebate shall be no greater than the funding gap.
4. The Applicant must enter into a binding agreement with the City.
DOCUMENTATION:
Requests to participate in the program must include the following:
1. A letter of request;
2. Third party certification of the development's rating status;
3. A feasibility analysis; and
4. An executed binding agreement.
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Determination of the applicant's TOT revenues will be based on revenues received, as documented by
the City's Administrative Services (Finance) Department.
APPLICATION PROCESS:
Program applicants will follow all procedures required by Assembly Bill 562 (2013), including prevailing
wage, public hearings and reporting requirements.
Upon receipt of a complete request to participate in the City's Hotel Incentive Program, the request
packet will be presented to the Economic Development Committee for review and recommendation.
Requests approved by the Economic Development Committee will then be presented to City Council for
final approval.
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Approved by Resolution No.47-18 on 5/15/18