NOTICE OF PUBLIC MEETING AND PUBLIC HEARING CONCERNING THE establishment OF THE Elk Grove TOURISM Marketing DISTRICT AND LEVY OF AN ASSESSMENT ON CERTAIN lodging BUSINESSES WITHIN THE DISTRICT

NOTICE IS HEREBY GIVEN that on December 10, 2014, the City Council (the “Council”) of the City of Elk Grove (the “City”) adopted a Resolution of Intention to establish the Elk Grove Tourism Marketing District (the “EGTMD”) and to levy an assessment on certain lodging businesses within the EGTMD as set forth in the attached Resolution of Intention.

NOTICE IS HEREBY FURTHER GIVEN that at 6:00 PM on January 14, 2015, at the City of Elk GroveCouncil Chambers, 8400 Laguna Palms Way, Elk Grove, CA 95758, a public meeting shall be held pursuant to Government Code section 54954.6 to allow public testimony regarding the establishment of the EGTMD and the levy of assessments therein as set forth in the enclosed Resolution of Intention and pursuant to Government Code section 54954.6.

NOTICE IS HEREBY FURTHER GIVEN that at 6:00 PM on February 11, 2015, at the City of Elk GroveCouncil Chambers, 8400 Laguna Palms Way, Elk Grove, CA 95758, has been set as the time and place for a public hearing at which time the Council proposes to establish the EGTMD and to levy the proposed assessment as set forth in the Resolution of Intention.

Boundaries:The proposed EGTMD includes all lodging businesses located within the boundaries of the City of Elk Grove and a portion of unincorporated Sacramento County as shown on the map attached hereto as Exhibit A.

Assessment:The annual assessment rate is two percent (2%) of gross short-term (stays less than 31 consecutive days) room rental revenue for lodging businesses in the City of Elk Grove, and one percent (1%) for lodging businesses in the unincorporated portion of Sacramento County. Based on the benefit received, assessments will not be collected on stays of less than thirty one (31) consecutive days, nor on stays by employees of City, County, State and Federal government entities and foreign government diplomats if documentationof an exemption certificate is submitted and payment is made directly to the hotel for rentals or by a government-sponsored corporate charge card, nor on stays pursuant to contracts executed prior to April 1, 2015.

Budget:The total EGTMD annual budget for the initial year of its five (5) year operation is anticipated to be approximately $215,000. This budget is expected to fluctuate as room sales do, but is not expected to significantly change over the EGTMD’s term.

Purpose:The EGTMD is designed to provide specific benefits directly to payors by increasing room night sales. Marketing and sales promotions are intended to increase overnight tourism and market payors as tourist, meeting and event destinations, thereby increasing room night sales.

Collection:The City will be responsible for collecting the assessment on a monthly or quarterly basis (including any delinquencies, penalties and interest) from each lodging business located in the boundaries of the EGTMD. The City shall take all reasonable efforts to collect the assessments from each lodging business.

Duration:The proposed EGTMD will have a five (5) year life, beginning April 1, 2015, through March 31, 2020. Near the end of the term, the petition and City Council hearing process must be repeated for the EGTMD to be renewed. Once per year beginning on the anniversary of district formation there is a 30-day period in which assessed businesses may petition to disestablish the EGTMD. During that period, upon the written petition of the owners or authorized representatives of businesses in the area who pay 50% or more of the assessments levied, the City Council shall pass a resolution of intention to disestablish the EGTMD.

Management:A new nonprofit corporation, Visit Elk Grove (VEG) will serve as the EGTMD’s Owners’ Association. The Owners’ Association is charged with managing funds and implementing programs in accordance with this Plan, and must provide annual reports to the City Council.

Protest:Any owner of a lodging business within the proposed EGTMD that will be subject to the assessment may protest the establishment of the EGTMD. A majority protest will cause the assessment to be abandoned. If written protests are received from the owners of lodging businesses in the proposed EGTMD who represent 50 percent (50%) or more of the estimated annual assessments to be levied, the EGTMD shall not be established and the assessment shall not be imposed.

You may mail a written protest to:

Office of the City Clerk

City of Elk Grove

8401 Laguna Palms Way

Elk Grove, CA 95758

You may also appear at the public hearing and submit a written protest at that time.

Information:Should you desire additional information about this proposed EGTMD or assessment contact:

Kara Reddig

Deputy City Manager, City of Elk Grove

8401 Laguna Palms Way

Elk Grove, CA 95758

(916) 478-2249

Dated: December 11, 2014______

Jason Lindgren, City Clerk

Exhibit A

Boundary Map