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06/01/2021 04C Resolution relating to business regulation; stating the intent of the City Council to set the date of June 15, 2021 for a public hearing to consider modification of YMC 5.99 of the City of Yakima Municipal Code (hereafter "Tourism Promotion 1 to\'4\lyy tbxk ik 1 • 1,:4ti P p P 1 PPi Pt ittYlltYlt.\ta.e ai e.-"`- BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. 4.C. For Meeting of: June 1, 2021 ITEM TITLE: Resolution relating to business regulation; stating the intent of the City Council to set the date of June 15, 2021 for a public hearing to consider modification of YMC 5.99 of the City of Yakima Municipal Code (hereafter"Tourism Promotion Area" or"TPA") SUBMITTED BY: Ryan Bleek,Assistant City Attorney Steve Groom, Director of Finance and Budget SUMMARY EXPLANATION: In response to a petition submitted by authorized representatives of lodging properties within the TPA whose collective room capacity comprises 78% of those rooms subject to the additional TPA lodging charge, Yakima City Council, during the its regular business meeting on May 18, 2021, directed staff to draft a resolution of intent to modify Chapter 5.99 of the Yakima Municipal Code entitled "Tourism Promotion Area." Under YMC 5.99.070(A), the resolution of intent shall set a time for a public hearing to consider the proposed action, which in this instance will be set for 6:00 p.m. on June 15, 2021 at the Yakima City Hall Council Chambers. Subsequent to the public hearing, Council may elect to pass the ordinance amending Chapter 5.99.040 to impose the additional two-dollar tourism promotion charge. The proposed ordinance is attached. In 2020, the Washington State Legislature granted local legislative authorities the ability, under RCW 35.101 .057, to impose an additional charge of up to three dollars per night of lodging for stays at lodging businesses located within a TPA. In order to impose the additional charge, the Yakima City Council must receive signatures from lodging businesses who would pay sixty percent or more of the proposed charges. The signatories must specify the proposed uses and projects to which the proposed revenue from the additional charge shall be put, the total estimated costs, and the estimated rate for the charge. On April 14, 2021, the City received a petition from authorized representatives of lodging properties within the TPA whose collective room capacity comprises 78% of those rooms subject to the additional TPA lodging charge. The petition contains the proposed uses and projects to which the proposed revenue from the additional charge shall be put, the total estimated costs, and the estimated rate for the charge as required by RCW 35.101.057. The petition seeks to 2 impose an additional two-dollar charge per night of lodging at stays within the Yakima County TPA. The current boundaries of the TPA include the City of Yakima and all unincorporated areas of Yakima County. ITEM BUDGETED: NA STRATEGIC PRIORITY: Economic Development APPROVED FOR SUBMITTAL BY THE CITY MANAGER RECOMMENDATION: Adopt resolution ATTACHMENTS: Description Upload Date Type D reso 5/25r2021 Cotter Memo D Draft Ordinance re TPA 5120/2021 Presentafon 3 RESOLUTION NO. R-2021 - A RESOLUTION relating to business regulation; stating the intent of the City Council to set the date of June 15, 2021 for a public hearing to consider modification of YMC 5.99 of the City of Yakima Municipal Code (hereafter "Tourism Promotion Area" or "TPA"). WHEREAS, the Yakima City Council approved, by Ordinance 2004-17, the establishment of a Tourism Promotion Area pursuant to RCW Chapter 35.101 for the purpose of funding the promotion of tourism and convention business within the TPA; and WHEREAS, the tourism and convention industries in the TPA have suffered significantly as a result of the COVID-19 pandemic; and WHEREAS, the increase in funds from an additional TPA charge could be used to bolster efforts to market tourism and convention opportunities within the TPA and support the recovery of those industries; and WHEREAS, RCW 35.101.057, which is set to expire on July 1, 2027, authorizes the Yakima City Council to "impose an additional charge of up to three dollars per night of stay on the furnishing of lodging by a lodging business located in the [Tourism Promotion Area]"; and WHEREAS, the Yakima City Council may impose the additional charge authorized by RCW 35.101.057 under the condition that "signatures of the persons who operate lodging businesses who would pay sixty percent or more of the proposed charges must be provided together with the proposed uses and projects to which the proposed revenue from the additional charge shall be put, [and] the total estimate costs"; and WHEREAS, the signatures of authorized representatives from lodging properties whose collective room capacity comprises 78% of those rooms subject to the additional TPA lodging charge have been provided as well as the proposed uses and projects to which the proposed revenue from the additional charge shall be put, the total estimated costs, and the estimated rate for the charge as required by RCW 35.101.057; and WHEREAS, the city Council finds that the petition requesting an additional charge of two dollars per night of lodging within the TPA meets the requirements of RCW 35.101.057, and that it is therefore appropriate to adopt this resolution in accord with YMC 5.99.070(A) and set a public hearing at 6:00 p.m. on Tuesday, June 15, 2021 at the City Hall Council Chambers for consideration of an ordinance amending YMC 5.99.040 to impose such additional TPA charge; now, therefore: BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA: The City Council hereby adopts this Resolution of Intent to modify Chapter 5.99 of the Yakima Municipal Code to impose an additional two-dollar charge per night of lodging furnished by a lodging business located in the TPA. The Council further sets a public hearing for consideration of the amended ordinance to be held at 6:00 p.m. on June 15, 2021 in the City Council Chambers at 129 N. 2nd St, Yakima, Washington. If approved after the public hearing, the effective date of said ordinance, as attached and incorporated herein, shall be in full force and effect 30 days after its passage, approval, and publication as provided by law and by the City Charter. 1 4 ADOPTED BY THE CITY COUNCIL this 1st day of June, 2021. Patricia Byers, Mayor ATTEST: Sonya Claar Tee, City Clerk 2 5 ORDINANCE NO. 2021- AN ORDINANCE amending the City of Yakima Municipal Code Section 5.99.040 Tourism Promotion Charge to add an additional tourism promotion charge of two dollars per night of lodging stay BE IT ORDAINED BY THE CITY OF YAKIMA: Section 1. Section 5.99.040 of the City of Yakima Municipal Code is hereby amended to read as follows: 5.99.040 Tourism promotion charge. Effective October 1, 2011, there shall be imposed a tourism promotion charge on the furnishing of lodging by a lodging business located in the Yakima County tourism promotion area in the amount of two dollars per room per day. Added to the tourism promotion charge specified in the above paragraph, there shall be imposed a second, additional tourism promotion charge of two dollars per night of lodging stay furnished by a lodging business located within the Yakima County tourism promotion area, until such time that ROW 35.101.057 shall expire or is repealed, or as modified by ordinance. The tourism promotion charges imposed under this chapter are not a tax on the "sale of lodging"for the purposes of calculating the lodging tax limit specified in RCW 82.14.410. (Ord. 2011-21 § 1 (part), 2011: Ord. 2010-37 § 1 (part), 2010: Ord. 2004-17 § 1 (part), 2004). Section 2. This ordinance shall be in full force and effect 30 days after its passage, approval, and publication as provided by law and by the City Charter. PASSED BY THE CITY COUNCIL, signed and approved this 15th day of June, 2021. ATTEST: Patricia Byers, Mayor Sonya Clear Tee, City Clerk Publication Date: Effective Date: