Developed by Pasadena lodging businesses and the Pasadena Center Operating Company (PCOC), the Pasadena Tourism Business Improvement District (PTBID) is an assessment district proposed to provide specific benefits to payors, by funding marketing and sales promotion efforts for assessed businesses. This approach has been used successfully in other destination areas throughout the country to provide the benefit of additional room night sales directly to payors. The PTBID was initially formed in 2003 pursuant to the Property and Business Improvement Area Law of 1989 (’89 Law) and converted in 2018 pursuant to the Property and Business Improvement District Law of 1994 (’94 Law) for a five (5) year term. The Pasadena Tourism Business Improvement District was renewed for a ten (10) year term beginning July 1, 2023.
Boundaries
The Pasadena PTBID includes all lodging businesses, existing and in the future, located within the boundaries of the City of Pasadena, as shown on the map in Section III.
Background
TBIDs are an evolution of the traditional Business Improvement District. The first TBID was formed in West Hollywood, California in 1989. Since then, over 100 California destinations have followed suit. In recent years, other states have begun adopting the California model – Massachusetts, Montana, South Dakota, Washington, Colorado, Texas and Louisiana have adopted TBID laws. Several other states are in the process of adopting their own legislation. The cities of Wichita, Kansas and Newark, New Jersey used an existing business improvement district law to form a TBID . Additionally, some cities, like Portland, Oregon and Memphis, Tennessee have utilized their home rule powers to create TBIDs without a state law.
California’s TBIDs collectively raise over $300 million annually for local destination marketing. With competitors raising their budgets, and increasing rivalry for visitor dollars, it is important that Pasadena lodging businesses continue to invest in stable, commerce-specific marketing programs.
TBIDs utilize the efficiencies of private sector operation in the market-based promotion of tourism districts. TBIDs allow tourism business owners to organize their efforts to increase commerce. Tourism business owners within the TBID pay an assessment and those funds are used to provide services that increase commerce.
In California, most TBIDs are formed pursuant to the Property and Business Improvement District Law of 1994. This law allows for the creation of a benefit assessment district to raise funds within a specific geographic area. The key difference between TBIDs and other benefit assessment districts is that funds raised are returned to the private non-profit corporation governing the district.
There are many benefits to TBIDs:
• Funds must be spent on services and improvements that provide a specific benefit only to those who pay;
• Funds cannot be diverted to general government programs;
• They are customized to fit the needs of payors in each destination;
• They allow for a wide range of services;
• They are designed, created and governed by those who will pay the assessment; and
• They provide a stable, long-term funding source for tourism promotion.