TO: ADAM PIRRIE, CITY MANAGER
FROM: JAMIE EARL, ASSISTANT CITY MANAGER
DATE: APRIL 9, 2024
Reviewed by:
City Manager: AP
SUBJECT:
Title
CLAREMONT TOURISM BUSINESS IMPROVEMENT DISTRICT ANNUAL REPORT (FUNDING SOURCE: GENERAL FUND)
Body
SUMMARY
The Claremont Tourism Business Improvement District (CTBID) was established by City Council resolution on November 10, 2009, pursuant to the California Property and Business Improvement District Law of 1994, to promote tourism in Claremont. The CTBID levies a two percent assessment on certain lodging businesses to carry out specified activities and services. This assessment is collected by the City on behalf of the CTBID in a manner similar to the ten percent Transient Occupancy Tax (TOT) levied by the City on hotels in Claremont.
On January 1, 2010, the City of Claremont signed a formal agreement authorizing the Claremont Chamber of Commerce to administer the CTBID. A new ten-year CTBID agreement with the City was entered into on January 1, 2015 and expires on December 31, 2024.
This report outlines key highlights of the CTBID Annual Report (Attachment A) and CTBID Annual Budget (Attachment B) submitted by the Chamber of Commerce as administrators of the CTBID.
RECOMMENDATION
Recommended Action
Staff recommends that the City Council receive and file the Claremont Tourism Business Improvement District Annual Report.
Body
ALTERNATIVES TO RECOMMENDATION
In addition to the recommendation, there are the following alternatives:
• Request additional information.
• Take no action.
FINANCIAL REVIEW
The CTBID Board approved an initial calendar year budget of $314,900 for 2023 (Attachment B), which included potential funding of holiday promotions with the City. Additional expenditures were approved in subsequent CTBID meetings. CTBID expenditures for 2023 totaled $277,269.68. The CTBID checking account balance and the CTBID Reserve Fund maintained by the Claremont Chamber of Commerce on January 3, 2023, were $41,475.38 and $5,631.10, respectively. The total amount paid by the City to the CTBID for the four quarters of 2023 totaled $410,380.33.
Staff support for the District as well as the time to prepare documentation and complete the staff report is estimated at $1,142. These costs consist of staff time allocated to the project and are included in the operating budget of the Administrative Services Department.
ANALYSIS
Staff has reviewed the report and finds that it provides the required description of improvements and activities conducted by the District in 2023. Additionally, the District is required to explain any changes to its boundaries. No such changes occurred in 2023, nor are any planned for 2024. Assessment amounts and methodology also remain unchanged at two percent of room rates collected via a similar methodology to Transient Occupancy Tax.
Key highlights outlined in the 2023 Annual Report include:
• Discover Claremont funded a ¼ page ad in the 2023 California Visitor Guide. The ad provided placement on the pullout visitor map, an additional Claremont destination listing, and incoming visitor leads fur future outreach. The CTBID mailed the 2024 Claremont Visitor’s Guide to fulfill over 200 incoming requests generated from this during 2023.
• The CTBID continued running three, 15-second spots on Ontario Airport’s digital display boards in the baggage claim areas at Terminals 2 and 4. An additional billboard/photo ad featuring Discover Claremont is running on airport shuttle buses. The goal of the campaign is to attract Inland Empire visitors traveling through Ontario Airport to visit and stay in Claremont.
• As part of its support for the Claremont Shakespeare Festival, a promotion that drives room nights during the slower season, the CTBID funded a newsletter advertorial campaign reaching LAist (newsroom) and KPCC (radio station) members/subscribers promoting overnight “summertime” stays in Claremont. A ticket giveaway as part of the promotion generated about 400 entries.
• The CTBID funded a gold membership in the California Travel Association (“CalTravel”), an influential and unified voice of advocacy for the travel and tourism industry in California. The board advocated for joining the organization in part to solicit additional industry support for the local hotels during the City’s deliberation over new hotel ordinances. Claremont Chamber CEO Randy Lopez was appointed to the CalTravel board of directors, representing Discover Claremont.
• Discover Claremont created more content during 2023 than previous years, increasing the frequency of creating stories and reels for its owned (website) and shared (social media, etc.) channels, with dozens of local tourism-related businesses highlighted. The video reels are primarily developed to be featured on Localhood, a platform created for Visit California destinations and indexed through Google Search.
• The DiscoverClaremont.com website serves as a landing page for the CTBID’s marketing efforts, with a goal of referring traffic directly to the hotel sites for bookings. In all, Google Analytics tracked more than 106,000 unique visitors to the site in2023, and directed 1,850 visitors to the hotel’s booking sites (with another 1,100 directed to a linked Claremont business or event).
• The CTBID continues to actively use social media to promote activities, specials, and related content, especially Facebook and Instagram as they provide opportunities to share visual and video images of Claremont’s sites, food, and shopping. The team focused on repurposing content created for the Visit California Localhood platform, in addition to creating and sharing content, and engaging with visitors’ posts and incoming messages. Discover Claremont had over 27,000 followers across five social media channels at year’s end.
• Below are the occupancy rates for the past five years, as reported by the properties.
Additional information regarding CTBID activities and accomplishments can be found in the 2023 Annual Report and Budget attached to this report.
RELATIONSHIP TO CITY PLANNING DOCUMENTS
Staff has evaluated the agenda item in relationship to the City’s strategic and visioning documents and finds that it applies to the following: Council Priorities, Economic Sustainability Plan, General Plan, and the 2022-24 Budget.
CEQA REVIEW
This item is not subject to environmental review under the California Environmental Quality Act (CEQA).
PUBLIC NOTICE PROCESS
The agenda and staff report for this item have been posted on the City website and distributed to interested parties. If you desire a copy, please contact the City Clerk’s Office.
Submitted by: Prepared by:
Jamie Earl Katie Wand
Assistant City Manager Assistant to the City Manager
Attachments:
A - 2023 CTBID Annual Report
B - 2023 CTBID Annual Budget