DATE: June 3, 2026
TO: Honorable Mayor and City Councilmembers
FROM: City Manager's Office
TITLE: RESOLUTION OF INTENTION TO MODIFY THE OCEANSIDE TOURISM MARKETING DISTRICT (OTMD) PLAN
RECOMMENDATION
title
Staff recommends that the City Council adopt a Resolution of Intention to modify the OTMD Management District Plan and increase the assessment rate for vacation rental businesses to two and one half (2.5%) percent.
body
BACKGROUND AND ANALYSIS
The OTMD was initially created in 2010 for a five-year term, renewed in 2015 for a
10-year term and subsequently renewed in 2024 for a nine-year, three-month term. Established by Visit Oceanside (VO) in partnership with the City of Oceanside and community stakeholders, the OTMD is a benefit assessment district permitted under California law (Property and Business Improvement District Law of 1994, Streets and Highways Code section 36600 et seq.) This law allows for the creation of special benefit assessment districts to raise funds within a specific geographic area.
The OTMD provides a revenue source to fund marketing and sales promotion efforts for Oceanside lodging and vacation rental businesses. VO is a California nonprofit corporation responsible for promoting Oceanside as a sought-after destination, and serves as the OTMD Owners' Association, charged with managing funds and implementing programs in accordance with the OTMD Management District Plan.
Tourism Marketing Districts (TMDs) have been used successfully in other destination areas throughout the state to improve tourism and drive additional room nights to assessed lodging and vacation rental businesses. The OTMD includes all lodging and vacation rental businesses, existing and in the future, available for public occupancy located within the boundaries of the City of Oceanside.
TMDs utilize the efficiencies of private sector operation in the market-based promotion of tourism. These special assessment districts allow lodging and vacation rental ...
Click here for full text