Anaheim City Council unanimously approved a resolution to amend the Anaheim Tourism Improvement District plan on Nov. 18, reallocating revenue to fund workforce housing.
For changes to take full effect, the council will vote again on the issue on Dec. 9, and by Feb. 1 funding will be reallocated towards affordable housing.
The council was asked to consider all oral and written protests to the amendment. If the majority protests against these changes, then they are not to move forward with the motion. Council only received five written protests, a total of 7.07%. There was only one in-person protest from Quality Inn.
The motion will adopt modifications to the 2010 Anaheim Tourism Improvement District Management Plan. These changes will expand the district boundaries, add housing improvements, establish a Housing Committee and incorporate timeshares — co-owned vacation properties — under the ATID assessment.
The ATID was established to provide revenues to cover the costs of activities within the district area with a 2% room rent fee assessing businesses within the boundary, aiming to improve promotion of local tourism and transportation.
Last year, Councilmember Norma Kurtz requested an item to modernize ATID and to assign a portion of its revenues to fund workforce housing initiatives for workers in the area. The resolution aims to allocate 9% — $2.9 million — from the total ATID revenues to a new fund “ATID Area Worker Housing Program” to the Anaheim Local Housing Trust Fund, helping hospitality workers.
Additionally, the amendment will incorporate new timeshare properties under the ATID assessment, exempting already existing units. Only new units constructed or converted after the new management plan is in motion will be added under the assessment.
The boundaries will be expanded to include The Viv Hotel into the district and potential new units by the South Anaheim Boulevard from the Interstate 5 to north of the Ball Road intersection.
Councilmember Kurtz reinforced that the motion does not increase ATID, and the funding for affordable housing is simply the reallocation of already existing revenue.
“We want to make it clear that this council has no desire to raise the ATID assessment at this time,” Kurtz said. “There is a great desire of some of those employees to establish themselves in Anaheim, to buy a home, become a homeowner and part of the community and part of the programs they’re considering will enable them to do that.”
Mayor Pro Tem Natalie Meeks emphasized that the terms being adopted are consistent with the law and state audit recommendations after having received a couple of letters from the Chamber of Commerce and from an attorney regarding the Brown Act and Public Records Act issues.
The Brown Act, part of California’s legislation, requires councils, as well as other public commissions, to discuss and take actions openly during public meetings to ensure transparency. The PRA allows the public to access government records.
“We do believe that the ordinance and the resolution that is before you does apply with all state laws,” said Steven Mattas, an attorney from Redwood Public Law. “We looked at the issues that were raised in the letters and we believe that the ordinance actually addresses those issues in particular the Brown Act issue as well as the Public Records Act issue.”