Title
Establishing a business improvement district encompassing certain taxable (for real estate tax purposes) hotels within the boundaries of the City and County of Philadelphia, to be known as the Philadelphia Hospitality Improvement Levy District (the "District"); designating the Philadelphia Hospitality Improvement Levy District Corporation to serve as Neighborhood Improvement District Management Association (the "NIDMA") for the District; approving a plan for the District, including a list of proposed programs and services related to the development and promotion of the hotel and tourism industry in the City and County of Philadelphia and their estimated cost, and providing for special assessment fees to be levied on affected property owners within the District to fund such programs and services; authorizing the Director of Commerce, on behalf of the City, to execute an agreement with the NIDMA for the District; and authorizing the NIDMA to assess affected property owners within the District and collect or cause to be collected special assessment fees to be used in accordance with the approved plan; all in accordance with the provisions of the Community and Economic Improvement Act.
Body
WHEREAS, Council of the City of Philadelphia is authorized by the Community and Economic Improvement Act, Act of December 21, 1998, P.L. 1307, No. 174 (53 P.S. §18101 et seq.), as heretofore amended, including by Act of May 24, 2016, No. 32 and the Act of May 24, 2016, No. 28 and as the same may be further amended, restated, or supplemented from time to time (as so amended, the "Act"), to establish, by ordinance, business improvement districts and to designate certain entities to impose special assessment fees and administer programs and services within such districts in order "to promote and enhance more attractive and safer commercial, industrial, residential and mixed-use neighborhoods; economic growth; increased employment opportunities; and improved commercial, industrial, business districts and business climates;" and
WHEREAS, The purpose of this Ordinance is to establish a business improvement district encompassing certain taxable (for real estate purposes) hotels within the boundaries of the City and County of Philadelphia, to be known as the "Philadelphia Hospitality Improvement Levy District" and to ensure that all actions required by the Act to establish such a district have been taken before the enactment of this Ordinance; and
WHEREAS, Special assessment fees are proposed to be imposed on certain taxable (for real estate tax purposes) hotels within the District by the NIDMA to fund (i) additional supplemental programs, services and improvements related to the development and promotion of the hotel and tourism industry in the City and County of Philadelphia and (ii) administration expenses of the District; and
WHEREAS, Special assessment fees are proposed to be imposed and collected on certain taxable (for real estate tax purposes) hotels within the City and County of Philadelphia, which special assessment fee shall be levied upon the lots or parcels of land within the District on which such hotels operate and which are benefited by the services authorized herein, subject to such adjustments as may be determined by the City to be fair and equitable and in accordance with the benefits received from the services that will be furnished; and
WHEREAS, Special assessment fees imposed and collected upon individual lots or parcels of land shall be equitably apportioned among the hotels operated by the owner thereof based upon a percentage fee of gross short-term guest sleeping room rental revenue as determined by the NIDMA's board of directors in accordance with the NIDMA's by-laws and the final plan approved under Section 4 of this Ordinance; and
WHEREAS, All procedures required by the Act for establishment of the District have been followed; in particular, more than forty-five (45) days have elapsed from the last public hearing required by the Act, and the Clerk of Council has not received objections filed by one-third or more of the affected property owners or affected property owners whose property valuation as assessed for taxable purposes amounts to one-third or more of the total property valuation within the proposed boundaries of the District; now, therefore
THE COUNCIL OF THE CITY OF PHILADELPHIA HEREBY ORDAINS:
1. In accordance with the provisions of the Act, a business improvement district is hereby established encompassing certain taxable (for real estate purposes) hotels within the boundaries set forth in Exhibit "A-l" attached hereto. The district shall be known as the Philadelphia Hospitality Improvement Levy District (the "District").
2. Philadelphia Hospitality Improvement Levy District Corporation is hereby designated as the Neighborhood Improvement District Management Association (the "NIDMA") for the District.
3. The NIDMA shall have any and all powers authorized under the Act to levy, collect and enforce special assessment fees on affected property owners for the purpose of providing additional supplemental programs, services and improvements pursuant to the Act.
4. Council hereby approves as the final plan for the District the plan set forth in Exhibit "A" attached hereto together with any amending or superseding plan that may satisfy the requirements of the Act. The NIDMA is hereby authorized to impose and collect special assessment fees on all lots or parcels of land within the District on which hotels operate and which are benefited by the services authorized herein in accordance with the provisions of the final plan and the provisions of the Act.
5. The Director of Commerce, on behalf of the City, is hereby authorized to enter into an agreement with the NIDMA, in a form approved by the City Solicitor, which agreement shall include the following provisions:
(a) A detailed description of the respective duties and responsibilities of the City and of the NIDMA with respect to the District as set forth in the final plan approved under Section 4;
(b) A requirement that the City will maintain within the District the same level of municipal programs and services that were provided within the District before its establishment;
(c) A "sunset provision" under which the agreement will terminate on December 31, 2022. The agreement may not be renewed unless the District is continued beyond that date in accordance with the sunset provisions of Section 6 of this Ordinance; and
(d) The NIDMA's agreement to be responsible for the calculation, imposition and collection of all special assessment fees levied within the District and the City's agreement to impose and enforce liens for nonpayment of such special assessment fees as set forth in the Act at 53 P.S. §18107(a)(10); provided that the agreement may include a provision wherein the City may designate the NIDMA (or its designee) as agent for the City to perform the City's responsibility to impose and enforce liens for nonpayment of special assessment fees on behalf of the City and under its authority.
(e) Any special assessment fees levied by the NIDMA shall be the sole responsibility of the affected property owner. The City shall not be liable for any special assessment fees due.
(f) The NIDMA shall agree that it shall not seek to impose liens, or ask the City to impose liens, resulting from the nonpayment of special assessment fees relating to any other purpose for which assessments may be levied hereunder, other than special assessment fees for (i) additional supplemental programs, services and improvements relating to the development and promotion of the hotel and tourism industry in the City and County of Philadelphia or (ii) administration expenses of the District, that would exceed in priority liens related to any City claims or judgments, whether based on "municipal claims," as such term is defined in the Municipal Claims and Tax Lien Act, 53 P.S. §7101 through §7505 or otherwise resulting from non-payment of ad valorem real estate taxes. The NIDMA shall agree further that no lien that is filed shall take priority over real estate tax liens.
(g) The NIDMA shall have no right to file a lien against any City property interest in connection with any unpaid special assessment fees.
6. The District shall terminate on December 31, 2022. The District may be continued beyond that date only if Council enacts a new ordinance following a review of the District and the programs and services provided by the NIDMA within the District. The same process required to establish the District must be followed to continue the District beyond the expiration date.
7. The Chief Clerk shall keep on file the plan referred to as Exhibit "A" in Section 4 of this Ordinance, and all accompanying documents referenced in Exhibit "A", and shall make them available for inspection by the public during regular office hours.
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