Please Note: According to the County, lodging establishments should collect the BID assessment as a separate line item on customer receipts, labeled "Mendocino County Lodging Assessment".

A Business Improvement District (BID) is a type of special assessment district where an industry chooses to assess itself to provide funds to address a common need — in this case, the promotion of tourism in Mendocino County. There's been some confusion about the law under which the BID will be formed. The state of California passed laws in 1989 and in 1994 relating to the formation of different kinds of BIDs. While both laws are current, the 1994 law does not address the marketing and economic development aspects of a Tourism-oriented BID. These are described in the 1989 law, however, and this is the law under which the MCLA BID will be created. Here is the actual text of the CA Statute for Business Improvement Districts. Here is the draft version of the proposed Mendocino County ordinance to form the BID.

The BID that MCLA has developed will raise about $550,000 in the first year, and it will focus on “branding” Mendocino County as a viable destination option to compete for tourist dollars with Sonoma and Napa Counties. Because of its diversity of travel options, the entire county will be showcased with equal emphasis on our wine country, our redwoods, and our spectacular coastline. Here's the Marketing Plan (also available in PDF format) that describes the effort.

The Mendocino County Board of Supervisors on Tuesday, May 9, 2006 unanimously introduced an ordinance approving the Mendocino County Lodging Business Improvement. The Business Improvement District will promote all hotels, inns, bed & breakfasts, and vacation rental businesses in the County of Mendocino and in the cities of Fort Bragg, Point Arena, Ukiah and Willits.

Under terms of the ordinance, lodging operators will assess themselves 1 per cent of gross room or rental receipts, raising an estimated $550,000 to promote tourism in the county. The County of Mendocino will provide 50% matching funds to increase the total promotional and marketing budget to approximately $900,000, in the first year . Private industry will design and deliver the promotional and marketing program, through the Mendocino County Lodging Association. The ordinance caps the county’s administrative costs at one-percent (1%).

Key Tenets of the Proposed Lodging BID

•  Lodging will control how the BID funds are actually spent. The MCLA Board will nominate an Advisory Board to select and distribute funds to qualified contractors.

• All funds will be put out for bidding to qualified Advertising/PR professionals.

• The MCLA Bid Marketing group will coordinate campaigns and plans with the Mendocino County Alliance (MCA) to guard against duplication of efforts.

• Creation of the BID is contingent on a guaranteed 50% match of BID funds by the Board of Supervisors, and these funds will be designated for County-wide promotion.

  The budget requires that 90% of BID funds be spent directly on promotion!

   How the MCLA BID Will Work

• BID funds can only be spent in accordance with the budget submitted when Lodging members vote on forming the BID.
• The BID must be renewed annually by the Board of Supervisors, and it can be dissolved by a majority vote (in terms of TOT dollars paid) of assessed businesses.
• By law, the County and participating cities cannot legally keep the funds -- it is mandatory that BID funds be transferred to the BID organization, who ensures that the funds are used for the direct benefit of the lodging industry.
• Lodging businesses in the County and participating cities will be required to collect the 1% BID assessment along with the TOT. On a quarterly basis, the County and participating cities will transfer the funds to the BID organization.
• When forming the district, all businesses that are subject to the assessment have an opportunity to protest the formation of the BID. A 50% negative vote (in terms of actual TOT dollars paid) prevents the Board of Supervisors from forming the district for one year.