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CC - Item I - Study Session with the Chamber of Commerce - Internal Files Box 069TO: HONORABLE MAYOR AND MEMBERS ROSEMEAD CITY COUNCIL FROM: FRANK G. TRIPEPI, CITY MANAGER ~ DATE: APRIL 27, 1989 RE: STUDY SESSION WITH THE CHAMBER OF COMMERCE Attached is a letter from the Rosemead Chamber of Commerce requesting a continuance of the Transient Occupancy Tax in the amount of 1 1/4%. As you know, the City entered into an agreement with the Chamber to allocate two of the current 8% Transient Occupancy Tax for the purpose of constructing a Chamber office and a Visitor Information Center. The agreement was for a four year period and at the end of the four years the 2% would no longer be allocated to the A Chamber. Also attached is a copy of the original agreement. The 2% has averaged $19,365 per quarter for the past 2 1/2 years. A conservative projection of the requested 1 1/4% would be $12,000 per quarter ($48,000 per year). These figures do not include the Transient Occupancy Tax for the Sheraton Hotel. FGT : j s Attachment A:5-9-89J:(1) COUNCIL AGENDA MAY 211989 ITEM No. R Rosemead ROBEMEAD ,CHAMBER e Chamber of Commerce o COMMERCE 9054 East Garvey Avenue Ra5emead Cal~ornia 91770 (818) 288-0811 Honorable Mayor McDonald Members of the City Council Gentlemen: Representatives of the Board of Directors of the Rosemead Chamber of Commerce respectfully request a study session with the Council on May 2, 1989 for discussion of the following: A continuance of the transient occupancy tax in the amount of 1 1/4% to follow the 2% tax at the end of the 4 year term previously agreed upon. 1. To promote tourism in the following ways: a) Prepare a factual brochure about our community that will attract people to stay in Rosemead. The brochure will promote the location of Rosemead: T Out of the congestion of Los Angeles T An area to safely bring your children T Excellent shopping and services T Accessable to two freeways T Centrally located for ALL So. Calif. attractions These are to be mailed in response to the several hundred requests we already receive from people out of state looking for places to stay and things to see when they visit Southern California. b) Advertise in the California Grapevine - a publication about our state and local attractions. (Attached) Increased tourism produces increased revenues. 2. Establish programs necessary to compete with the newly established Council of Business and Industry, (COBI). The West Covina Chamber of Commerce is reaching out into all San Gabriel communities to promote the San Gabriel Valley, economic development, advertising, etc. 3. Additional personnel to service the increased demands of a Visitor Information Center. "Businesses joined together since 1927" Study session cont. This proposal is based on needed activities to property promote the City of Rosemead. The time element for implementation is predicated on the expansion of Chamber facilities. Sincerely, Betty~Dondanville, Pres. AGREEMENT THIS AGREEMENT, made and entered into this day of 1987 by and between the CITY OF ROSEMEAD, a municipal corporation, hereinafter called "CITY", and the ROSEMEAD FOUNDATION, INCORPORATED, a non-profit public benefit corporation hereinafter called "FOUNDATION" WHEREAS, the CITY and FOUNDATION are desirous of developing a Visitor Information Center, which shall disseminate information concerning the City of Rosemead and its businesses; and WHEREAS, FOUNDATION proposes to acquire land and construct a building to serve as headquarters for the Rosemead Chamber of Commerce and the Rosemead Visitor Information Center; and WHEREAS, FOUNDATION is unable to raise sufficient funds for such project without the assistance of CITY; and WHEREAS, by the passage of Ordinance No. 587, CITY indicated its willingness to fund the project with 25% (twenty-five percent) of the collected transient occupancy tax revenue for a period of four years from the effective date of an increase in the tax from h% to 8%; and WHEREAS, the Rosemead voters confirmed the tax increase by a majority vote on March 3, 1987; NOW, THEREFORE, in consideration of the covenants and conditions hereinafter set forth and pursuant to Ordinance No. 587 of the Rosemead City Council, the parties hereto agree as follows: 1. CITY shall prepare an accounting and shall determine the amount of transient occupancy tax accrued and collected after August 8, 1986. CITY shall establish a separate bank account earmarked for the project. 2. For all transient occupancy tax revenue collected at the 8% rate, CITY shall for a period of 4 (four) years, until August 8, 1990, pay into said account 25% (twenty-five percent) thereof. Such funds shall be set aside for the following, and no other, purposes: A. Acquisition of land for the proposed building. B. Professional architectural services. C. Actual construction costs. D. Operation costs of the Rosemead Visitor Center in the new facility. 3. Prior to any disbursements from the account, the proposed expenditure shall be placed upon the consent calendar of the Rosemead City Council for ratification. Upon approval by the City Council, funds shall be paid out of the account to FOUNDATION. 4. In no event shall the transient occupancy tax funds received from CITY be used in conjunction with any fund raising expenses for FOUNDATION or Chamber. 5. In the event that FOUNDATION either ceases to exist or fails to commence construction or acquisition by January 1, 1989, CITY may terminate this Agreement and retain all funds 2 in the earmarked account. This Agreement shall not be assignable to any successor to FOUNDATION. 6. FOUNDATION agrees to submit location, building plans and operation plans for the Visitor Center to CITY for prior approval. 7. Before commencing construction, FOUNDATION agrees to acquire adequate liability, property, and worker's compensation insurance in amounts and form to be approved by the City Attorney. 8. FOUNDATION will assume liability and defend and hold CITY harmless from loss, costs or expenses caused by the negligent or wrongful act or omission of FOUNDATION officers, agents and employees occurring in the performance of this Agreement. 9. CITY's only participation in this project is the earmarking, per these terms and conditions, of 25% (twenty- five percent) of transient occupancy tax revenue for 4 (four) years from and after August 8, 1986. CITY's participation shall cease on August 8, 1990. 10. FOUNDATION's complete financial records shall be subject, to review and audit by the CITY at any time during the effective period of this Agreement. 11. One of CITY's primary motives in entering into this Agreement is to assist in the reduction of the Rosemead Chamber of Commerce's operating costs. At the scheduled termination of this Agreement, an accounting shall he made by CITY which sets forth the total of all payments made to FOUNDATION. 3 For a period of ten (10) years following the termination of this Agreement, i.e., from August 9, 1990 through August 9, 2000, in the event the building is ever sold or transferred and thereafter utilized for other than the purposes specified herein, and if FOUNDATION does not reinvest, for similar purposes as authorized herein, the proceeds of such sale or transfer within one (1) year of receipt: A. FOUNDATION shall reimburse CITY, pursuant to the following schedule: 1. If building is sold or use terminates on or before 80% of CITY's December 31, 1990 contribution 2. If building is sold or use terminates on or after January 1, 1991 but prior to 60% of CITY's December 31, 1992 contribution 3. If building is sold or use terminates on or after January 1, 1993 but prior to 40% of CITY's December 31, 1994 contribution 4. If building is sold or use terminates on or after January 1, 1995 but prior to 20% of CITY's December 31, 1996 contribution 4 5. If building is sold or use terminates on or after January 1, 1997 but prior to - ' 10% of CITY's' August 8, 2000 contribution IN WITNESS WHEREOF, the CITY OF ROSEMEAD, by order of its City Council and the ROSEMEAD FOUNDATION, INCORPORATED, through its authorized officer, have caused this Agreement to be executed on the day and year first written above. CITY OF ROSEMEAD Cl ' Wit/ By MAYOR ATTEST: CITY CLERK ROSEMEAD FOUNDATION,-INCORPORATED By : Title: 5