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Councilmembers to Consider Revamped Tourism Marketing District

What you are bringing up is the actual black hole: the "administration" aka the "SDTMD Corporation." That would be the group of TMD hotleliers who make all of the decisions about use of the assessment money collected (who would be the members of this group, and how are they chosen?). The Plan says, "The SDTMD Corporation (“Corporation”) acts as the owners’ association...The Corporation’s Board of Directors is comprised exclusively of owners or owner’s representatives from lodging businesses within the District. Each year the Corporation receives and reviews numerous vendor applications for TMD funding." Which means that the Corporation decides who to whom to give the assessment money, such as "Holiday Bowl, Crew Classic, Wine & Food Festival, and Rock & Roll Marathon." To an assessed hotleier operating a 30-room motel near the Tijuana border, this may not be all that beneficial. So how does the Corporation Board spend the assessments collected? Examples: 1. Audits "The SDTMD Corporation will contract with an independent third-party to audit" 2. Administration: "3%* to 5%* including City Administration Costs" 3. City Administration Costs: "TBD – intended to recover actual costs only" ["TBD" is a scary and open-ended number in Paradise Plundered] 4. Contingency/Renewal: "3% to 5%" 5. "Administration shall be increased by $100,000, $150,000, $200,000 and $250,000 annually to be used to develop the ten-year Milestone Reports." It's worse than this. Read the whole Draft Plan.
— October 19, 2011 6:08 p.m.

Councilmembers to Consider Revamped Tourism Marketing District

tedbohannon, You say, "As I understand it, the hotels themselves have to vote in favor of the TMD for it to be passed." By law, to go to a ballot and vote on this assessment district "requires submittal of petitions from lodging business owners representing more than 50% of the total annual assessment followed by a City Council hearing and a ballot procedure." So, you can see, that, from the outset, if the few largest or biggest revenue-generating hotel owners want this (say, just barely comprising >50% of the total proposed assessment), it will go to a ballot and will pass. Collection of the assessment will be imposed on all of the other hotel owners (comprising up to 49% of assessments), even if the actual number of small, "no"-voting hoteliers actually far outnumbers the number of big hoteliers. Assessment ballots are inherently undemocratic. A few powerful entities can force the many smaller entities to pay into the pot. And there is one more aspect: it is not obligatory to pass on the 2% assessment cost to the customer: "The amount of assessment, if passed on to a transient [customer], shall be separately stated from the amount of rent charged and any other applicable taxes, and each transient shall receive a receipt for payment from the business." The big guys can afford to offer some customers a deal,and not charge the 2%, when they want to, but the collective money pot for advertising their hotels will still be there. The little guys will not likely be able to afford anything similar, always needing to pass on the 2% charge to the customers. It's unfair.
— October 19, 2011 3:41 p.m.

Councilmembers to Consider Revamped Tourism Marketing District

Here's the draft proposal: http://docs.sandiego.gov/councilcomm_agendas_atta… I think this is on shaky legal grounds, considering the California State Constitution. For example, the Assessment District plan says, as required by Article XIIID of the State Constitution, "State law requires that assessment funds be expended on a specific benefit conferred directly to the payees that is not provided to those not charged, and which does not exceed the reasonable cost to the City of conferring the benefit." The 2% assessment is the "reasonable cost to the City" to provide PR? How to calculate? The Plan says "Processes to identify and verify specific benefits to assessed businesses will be modeled on practices in use,..." Further: "The specific benefit the district will provide to assessed lodging businesses, and will not provide to those not charged, is incremental room night sales." Now it's "the district," not the City, providing/conferring the PR benefit. I guess district/City are legally interchangeable, but it is odd. Then, "The programs and services provided with the district funds will be designed specifically to drive room night sales at assessed lodging businesses. Only assessed lodging businesses will be featured in marketing materials, receive sales leads generated from district-funded activities, be featured in advertising campaigns, and benefit from other district-funded services. Those not assessed will not receive these and any other district-funded services." So, if you have 29 rooms or less, you will be delegated to a promotional black hole. Nothing the City ever does to promote tourism can refer to your hotel.
— October 19, 2011 3:19 p.m.

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