LAKEPORT, Calif. – At the end of a Tuesday morning public hearing, the Board of Supervisors voted to approve a resolution establishing a new district to promote Lake County’s tourism industry.
The approval of the Lake County Tourism Improvement District was the culmination of nearly a year’s worth of work by county staff and Civitas, which is both a law firm and a consulting firm.
County Administrative Office staff first took the proposal to form the district to the board in late November 2017.
Deputy County Administrative Officer Michelle Scully and Rachael Taylor, project manager for Civitas, presented the resolution of formation to the board on Tuesday. Supervisors Tina Scott, attending a meeting in Washington, DC, and Jeff Smith were absent for the discussion.
Taylor said the process was to review all of the protests submitted by impacted businesses. If there wasn’t a majority of protests, the district would be formed and start collecting an assessment on Jan. 1, 2019.
The matter had been scheduled to come before the board earlier this summer, but a number of hospitality business owners who had previously submitted petitions of support withdrew their support and instead protested, according to county documents.
Originally, the proposed assessment was 3 percent, which would have generated an estimated $340,000 a year to market Lake County’s hospitality businesses and promoted tourism.
However, that assessment was dropped to 1.5 percent, at which point several business owners who had concerns withdrew their protests, Taylor said, adding the change in assessment was reflected in an updated management plan for the district.
The total protests submitted for the district totaled 28.2 percent, Taylor said.
“So now we’re going to move forward and we’re going to have a reduced budget, and is it going to be sufficient for it to make any difference?” asked Board Chair Jim Steele
“That’s the hope,” said Taylor. “Part of this discussion was that we felt that forming the district regardless of what the budget is, is probably one of the most important pieces, as a foundation, to put it in place.”
Taylor said they’ve also had some verbal commitments from tribal community about wanting to participate, plus there is the potential funds from county and cities to contribute to the budget. “There’s a lot to be done.”
While the budget was cut in half, down to $170,000, “That is still a substantial amount of money that we will have available for the tourism industry,” said Taylor.
She said the district will be formed for a five-year term, at the end of which they will renew it. At that time, they can remake the parameters, such as the assessment and budget, and should be able to show what they had done with the assessment and request that there be a larger assessment in order to work with a larger budget.
Scully said formation of the district creates an official board which can act as an advocacy group so that the lodging industry has a unified voice, which stakeholders felt was paramount.
“I think it’s transformational and we're well behind the curve with our neighbors that already have entities like this,” said Scully.
Supervisor Moke Simon – whose tribe, the Middletown Rancheria of Pomo Indians, owns Twin Pine Casino and Hotel – said he agreed wholeheartedly with forming the district.
“I think it’s a great idea. I think we are going to make improvements,” he said.
He added, “The tribal community is ready to step up and do their part, so we’re not the only ones advertising Lake County and how beautiful it is out there to the entire world.”
As for the next steps, Taylor said Civitas is working to form the district, which will be a 501c6 nonprofit corporation. Articles of incorporation already have been filed.
She said it has to be governed by an owners association, which means a majority of board members must be those paying assessments. Members of a steering committee that has been integral in the work of forming the district wants to be part of the board, and they also will recruit others.
Taylor said the district’s board will make the important decisions, both in the day-to-day operations of the district and in identifying a staff person, likely part-time, who will work on the programs.
She said all of the work to get the bylaws and board in place will be done in November in order that the district be fully formed ahead of the beginning of collecting assessments in January.
During brief public comment, Lake County Chamber of Commerce Chief Executive Officer Melissa Fulton told the board, “We’re in full support of the formation of this district. We see it as a great step forward to help us enhance our marketing and grow our marketing.”
She questioned if the nonprofit would be a 501c3 or a 501c6. Taylor said it will be the latter.
A 501c3 nonprofit tends to be for purposes including charities and religious organizations, while a 501c6 is for business-related interests.
Taylor told the board that, as a nonprofit, the district can take sponsorships and other contributions.
She said the nonprofit’s name is “Visit Lake County, California.”
Simon offered the resolution, which the board approved 3-0.
“Break out the champagne,” said Steele.
Scully thanked the board for allowing staff to go forward with the tourism improvement district.
“This has been a big, big project, but your support has been constant and I think it’s going to be huge for us,” Scully said.
“We need to do this the right way,” said Steele, explaining that visitors need to be given options for what to do when they visit.
Taylor said the fact that there will be a dedicated board and organization is very important. What Civitas has seen in other counties with such districts over the last couple of years is “just amazing,” she said.
“I can’t wait to see what Lake County does,” Taylor added.
“I’ve got a whole Northshore that’s waiting for you,” Steele said.
Supervisors approve CSA No. 16 assessment, new job classification
In other business, at Tuesday’s meeting the board also held a public hearing to consider a proposed property assessment for County Service Area No. 16 to complete the water system consolidation with Clearlake Oaks County Water District.
Special Districts Administrator Jan Coppinger said that while the county received $1.4 million in grant funds and another $411,000 in a cash match from a property owner, but in completing the project they were still short by $300,000.
“We are at the very end,” she said.
If the assessment was approved, Coppinger said the project should be complete within about 45 days.
She said Proposition 218 letters – a necessary step to notify voters about taxes or assessments – went out in August to all parcel owners. No protests were received, and the board approved the first reading of the ordinance establishing the assessment.
The board voted to continue proclamations of local emergencies for the Pawnee fire and Mendocino Complex; amended the master fee schedule to reduce the cannabis business fee from two installments of $2,536.50 each to one installment of $4,160; appointed Supervisor Rob Brown as delegate and Moke Simon as alternate to the Rural County Representatives Board of Directors, Golden State Finance Authority Board of Directors and Rural Counties Representatives of California Environmental Services Joint Powers Authority Board of Directors for 2019; and approved an amendment allowing for additional Victim-Witness Assistance Program Grant funding.
During the meeting the board also approved a resolution amending the budgeted job allocations for the current fiscal year, adding a new job and classification for “tax administrator,” which will be located in the County Administrative Office but would work with the tax collector-treasurer to make all necessary efforts to collect the county’s cannabis business tax, County Administrative Officer Carol Huchingson said.
The board held over five contract change orders related to the Safe Routes to School project in Clearlake Oaks and amendments to contracts with Quincy Engineering and 4 Leaf Inc. because of the need for at least a fourth-fifths vote in support, which wasn’t possible due to the absence of Scott and Smith.
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Supervisors approve formation of Lake County Tourism Improvement District
- Elizabeth Larson
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