TRANSIENT OCCUPANCY TAX REPORT INDUSTRY REPORT

TRANSIENT OCCUPANCY TAX REPORT INDUSTRY REPORT 2017

ECONOMIC DEVELOPMENT BOARD BOARD OF DIRECTORS WAYNE LEACH MICHAEL NICHOLLS MICHAEL TOMASINI TERRI DENTE TERRY GARRETT KATHRYN HECHT LINDA KACHIU PAM CHANTER, CHAIR JORGE ALCAZAR SKIP BRAND BEN STONE, Executive Director EDB FOUNDATION SPONSORS PRESENTING LEVEL FOUNDATION LEVEL PREMIER LEVEL EXECUTIVE LEVEL AMERICAN AGCREDIT AMERICAN RIVER BANK COMCAST GEORGE PETERSEN INSURANCE KEEGAN & COPPIN CO. MIDSTATE CONSTRUCTION NORBAR SONOMA COUNTY ALLIANCE SUMMIT STATE BANK VANTREO INSURANCE ZAINER RINEHART CLARKE MEDIA LEVEL PG. 2

CONTENTS 4. EXECUTIVE SUMMARY 6. CITY AND UNINCORPORATED DATA 8. ANNUAL TOT TRENDS 10. TOT RECEIPTS 11. HISTORICAL COMPARISON 14. TOT DATA TABLE 16. SPENDING BREAKDOWN 18. INDUSTRY DEVELOPMENT 21. SOURCES, METHODOLOGY & ACKNOWLEDGMENTS PG. 3

2016 Q3 TRANSIENT OCCUPANCY TAX REPORT EXECUTIVE SUMMARY May 2017 THIRD QUARTER 2016 The Sonoma County Economic Development Board (EDB), in partnership with Sonoma County Tourism (SCT), is pleased to bring you the 2016 third quarter calendar year (CY) Transient Occupancy Tax (TOT) Report. The analysis drafted by the Sonoma County EDB is based on reports from each jurisdiction within the county. This report contains the most recent data available based on county reporting. The report covers the county s TOT revenues, compared with Sonoma County s historical CY numbers, and the accommodation development report for July, August and September of 2016. TOT ASSESSMENT BY CITY City TOT City TOT City TOT Cloverdale 10% Rohnert Park 12% Sonoma 10% 12% Santa Rosa 9% Windsor 12% Petaluma 10% Sebastopol 10% Unincorporated County 9% HIGHLIGHTS Sonoma County s revenues for third quarter 2016 increased 14% over third quarter 2015. All Sonoma County cities, except Cloverdale and Windsor, experienced increased year-overyear TOT revenue for third quarter 2016. Sonoma has the largest third quarter increases at 31%. The Unincorporated area has the next largest increase at 17%. All cities, except Cloverdale and Windsor, recorded their best third quarter TOT revenues to date. This reflects improving economic conditions and highlights Sonoma County s growing popularity as a tourist destination. For questions, please call (707) 565-7170 PG. 4

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2016 Q3 TRANSIENT OCCUPANCY TAX REPORT SEASONALLY ADJUSTED TOT REVENUES BY CALENDAR YEAR Q1 2005 - Q3 2016 This section analyzes the quarterly TOT trends for the aggregated city and unincorporated areas from first quarter calendar year (CY) 2005 through third quarter (CY) 2016. SUMMARY OF FINDINGS TOT revenues grew steadily between 2005 and 2007. Revenues decreased in 2008 and continued to do so into fourth quarter 2009. TOT revenues started to show growth in first quarter 2010 and show consistent increasing trends through third quarter 2016. The general trend in TOT revenues since 2005 reflects Sonoma County s popularity as a tourist destination and the strength of local lodging properties average daily and occupancy rates. Recent growth rates continue to exceed those from 2005-2008, prior to the economic downturn. The significant dips in TOT revenues between 2008 and 2009 and between 2011 and 2012 can be attributed to decreased tourism worldwide in response to a weakening economy and/or reactions to specific events such as the global recession in 2011. Seasonally Adjusted TOT Revenues Sonoma County, Q1 2005 - Q3 2016 (Millions of Dollars) $10 Unincorporated $8 Cities $6 Total $4 $2 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 Source: Sonoma County and Cities Finance Departments PG. 6

2016 Q3 TRANSIENT OCCUPANCY TAX REPORT TOT REVENUES BY QUARTER TOTAL TOT REVENUE BY QUARTER Historical Overview Quarter One TOT Revenues 2004-2016 (Millions of Dollars) Quarter Two TOT Revenues 2004-2016 (Millions of Dollars) $8 $10 $6 $8 $6 $4 $4 $2 $2 '04'05'06'07'08'09 '10 '11 12 '13 '14 '15 '16 '04'05'06'07'08'09 '10 '11 '12 '13 '14 '15 '16 Total City Unincorporated Total City Unincorporated Source: Sonoma County and City Finance Departments Source: Sonoma County and City Finance Departments $14 $12 $10 $8 $6 $4 $2 Quarter Three TOT Revenues 2004-2016 (Millions of Dollars) $10 $8 $6 $4 $2 Quarter Four TOT Revenues 2004-2015 (Millions of Dollars) '04'05'06'07'08'09 '10 '11 '12 '13 '14 '15 '16 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 Total City Unicorporated Total City Unincorporated Source: Sonoma County and City Finance Departments Source: Sonoma County and City Finance Departments PG. 7

2016 Q3 TRANSIENT OCCUPANCY TAX REPORT ANNUAL TOT TRENDS ANNUAL TOT PERCENT CHANGE 2014-2015 (Calendar Year) This section shows the annual percentage change in TOT revenues based on the most recent annual data (calendar year). Summary of Findings From 2014-2015, all cities (except Sonoma) and unincorporated areas of Sonoma County experienced positive growth in annual TOT revenue. The overall growth rate for the entire county for 2015 over 2014 was 12%. This indicates that overnight travel continues to grow in Sonoma County. TOT Revenues Percent Change 2014-2015 Calendar Year %35 %30 %25 %20 %15 %10 %5 %0 %-5 Sonoma Rohnert Park Unincorporated Cloverdale Windsor Sebastopol Santa Rosa Petaluma Sonoma County and Cities Finance Departments PG. 8

2016 Q3 TRANSIENT OCCUPANCY TAX REPORT TOT TRENDS BY QUARTER TOT REVENUE PERCENT CHANGE Quarter over Quarter 50% 40% 30% 20% 10% 0% Q1, 2015-2016 January, February, March Cloverdale Petaluma Rohnert Park Santa Rosa Sebastopol Sonoma Windsor Uninc. Source: Sonoma County and City Finance Departments 40% 30% 20% 10% 0% -10% Q3, 2015-2016 July, August, September Cloverdale Petaluma Rohnert Park Santa Rosa Sebastopol Sonoma Windsor Uninc. Source: Sonoma County and City Finance Departments 20% 15% 10% 5% 0% -5% -10% -15% -20% -25% -30% Q2, 2015-2016 April, May, June Cloverdale Petaluma Rohnert Park Santa Rosa Sebastopol Sonoma Windsor Uninc. Source: Sonoma County and City Finance Departments 80% 70% 60% 50% 40% 30% 20% 10% 0% -10% Q4, 2014-2015 October, November, December Cloverdale Petaluma Rohnert Park Santa Rosa Sebastopol Sonoma Windsor Uninc. Source: Sonoma County and City Finance Departments PG. 9

2016 Q3 TRANSIENT OCCUPANCY TAX REPORT ANNUAL TOT RECEIPTS TOTAL CITY AND UNINCORPORATED TOT RECEIPTS 2012-2015 (Calendar Year) This section analyzes the year-over-year TOT revenue trends for each city and the unincorporated areas from calendar year (CY) 2012-2015. Summary of Findings: The county as a whole experienced significant growth in year-over-year TOT revenues in 2015. County TOT revenues experienced a 12% growth from $30.1 million in 2014 to $33.6 million in 2015. Cloverdale experienced the greatest growth with a 33% increase from $176,326 thousand in 2014 to $234,993 thousand in 2015. However, the unincorporated areas and Santa Rosa had the highest revenues at $13.7 million and $5.5 million, respectively. It is important to note that travel to Sonoma County is cyclical and third quarter (July, August, September) provides a disproportionate share of Sonoma County s TOT revenues. Total City & Unincorporated TOT Receipts Calendar Year 2012-2015 (Millions of Dollars) $14 $12 $10 $8 $6 2015 2014 2013 2012 $4 $2 Cloverdale Sebastopol Windsor Rohnert Park Petaluma Sonoma Unincorporated Santa Rosa Source: Sonoma County and Cities Finance Departments PG. 10

2016 Q3 TRANSIENT OCCUPANCY TAX REPORT TOT HISTORICAL COMPARISON CLOVERDALE, HEALDSBURG, PETALUMA, ROHNERT PARK Q1 2005 to Q3 2016 $100 Cloverdale TOT Revenues Thousands of Dollars $1200 TOT Revenues Thousands of Dollars $80 $1000 $60 $800 $600 $40 $400 $20 $200 Q1 2005 2009 2013 Q2 2006 2010 2014 Q3 2007 2011 2015 Q4 2008 2012 2016 Q1 Q2 2005 2006 2009 2010 2013 2014 Q3 2007 2011 2015 Q4 2008 2012 2016 Source: Cloverdale Finance Department Source: Finance Department Petaluma TOT Revenues Thousands of Dollars Rohnert Park TOT Revenues Thousands of Dollars $1200 $1200 $1000 $1000 $800 $800 $600 $600 $400 $400 $200 $200 Q1 Q2 2005 2006 2009 2010 2013 2014 Q3 2007 2011 2015 Q4 2008 2012 2016 Q1 Q2 2005 2009 2013 2006 2010 2014 Q3 2007 2011 2015 Q4 2008 2012 2016 Source: Petaluma Finance Department Source: Rohnert Park Finance Department PG. 11

2016 Q3 TRANSIENT OCCUPANCY TAX REPORT TOT HISTORICAL COMPARISON SANTA ROSA, SEBASTOPOL, SONOMA, WINDSOR Q1 2005-Q3 2016 Santa Rosa TOT Revenues Thousands of Dollars Sebastopol TOT Revenues Thousands of Dollars $2000 $200 $1750 $1500 $150 $1250 $1000 $100 $750 $50 $500 $250 Q1 2005 2009 2013 Q2 2006 2010 2014 Q3 2007 2011 2015 Q4 2008 2012 2016 Q1 Q2 2005 2006 2009 2010 2013 2014 Q3 2007 2011 2015 Q4 2008 2012 2016 Source: Santa Rosa Finance Department Source: Sebastopol Finance Department Sonoma TOT Revenues Thousands of Dollars Windsor TOT Revenues Thousands of Dollars $1200 $600 $1000 $500 $800 $400 $300 $600 $200 $400 $100 $200 Q1 2005 2009 2013 Q2 2006 2010 2014 Q3 2007 2011 2015 Q4 2008 2012 2016 Q1 Q2 2005 2006 2009 2010 2013 2014 Q3 2007 2011 2015 Q4 2008 2012 2016 Source: Sonoma Finance Department Source: Windsor Finance Department PG. 12

2016 Q3 TRANSIENT OCCUPANCY TAX REPORT TOT HISTORICAL COMPARISON UNINCORPORATED AREA Q1 2005 - Q3 2016 Unincorporated Area TOT Revenues Thousands of Dollars $6000 $5000 $4000 $3000 $2000 $1000 Q1 Q2 Q3 Q4 2005 2009 2013 2006 2010 2014 2011 2007 2015 2008 2012 2016 Source: Sonoma County Auditor-Controller/ Treasurer-Tax Collector PG. 13

DATA TABLE 2016 Q3 TRANSIENT OCCUPANCY TAX REPORT HISTORICAL TOT FIGURES: First Quarter 2007 to Third Quarter 2016 UNINCORP. CLOVERDALE HEALDSBURG PETALUMA ROHNERT PARK SANTA ROSA SEBASTOPOl SONOMA WINDSOR 2008 1st QTR. $1,289,874 $28,022 $311,526 $249,762 $353,189 $733,276 $51,991 $400,313 $159,143 2nd QTR. $2,014,375 $48,422 $526,998 $383,884 $544,846 $1,027,031 $72,610 $742,978 $180,873 3rd QTR. $2,872,890 $57,306 $620,068 $469,838 $634,567 $1,221,170 $106,440 $858,075 $238,950 4th QTR. $1,613,795 $41,472 $408,422 $282,038 $393,008 $761,227 $67,557 $546,326 $189,400 TOTAL $7,790,934 $175,222 $1,867,014 $1,385,522 $1,925,611 $3,742,704 $298,600 $2,547,692 $768,366 2009 1st QTR. $945,598 $24,658 $242,455 $217,974 $296,290 $544,743 $33,847 $266,213 $209,493 2nd QTR. $1,918,165 $41,472 $398,126 $336,119 $432,015 $791,316 $51,783 $528,719 $264,255 3rd QTR. $2,725,730 $47,252 $518,841 $403,133 $528,712 $1,006,062 $76,443 $678,372 $321,779 4th QTR. $1,466,080 $34,707 $380,846 $237,566 $346,532 $703,559 $61,839 $517,425 $243,108 TOTAL $7,055,573 $148,090 $1,540,267 $1,194,792 $1,603,550 $3,045,680 $223,912 $1,990,729 $1,038,635 2010 1st QTR. $1,025,729 $19,191 $240,268 $185,020 $284,473 $531,501 $39,194 $261,783 $200,478 2nd QTR. $2,066,768 $41,532 $455,403 $328,607 $477,902 $819,705 $65,892 $521,603 $302,648 3rd QTR. $2,914,897 $52,281 $637,550 $458,606 $608,551 $1,095,239 $90,850 $735,175 $370,985 4th QTR. $1,698,113 $35,290 $449,969 $278,113 $380,650 $765,413 $61,039 $551,755 $271,769 TOTAL $7,705,506 $148,293 $1,783,190 $1,250,346 $1,751,576 $3,211,858 $256,975 $2,070,316 $1,145,879 2011 1st QTR. $1,245,786 $18,518 $279,708 $212,922 $316,041 $577,394 $43,010 $352,882 $223,231 2nd QTR. $2,248,535 $38,872 $560,767 $371,683 $476,037 $857,815 $74,938 $571,481 $343,143 3rd QTR. $3,346,902 $54,742 $735,373 $486,115 $643,120 $1,217,602 $101,079 $908,591 $461,011 4th QTR. $1,951,855 $30,328 $514,165 $302,368 $404,315 $774,822 $62,679 $545,717 $283,596 TOTAL $8,793,077 $142,461 $2,090,013 $1,373,088 $1,839,513 $3,427,633 $281,707 $2,378,670 $1,310,981 2012 1st QTR. $1,208,612 $20,451 $352,782 $268,811 $365,172 $639,225 $47,978 $376,266 $241,512 2nd QTR. $2,395,452 $38,695 $606,790 $413,880 $528,735 $974,865 $89,201 $677,555 $333,094 3rd QTR. $3,460,124 $71,993 $793,361 $545,145 $695,365 $1,327,717 $113,550 $895,755 $487,306 4th QTR. $2,406,667 $32,052 $553,803 $337,904 $466,776 $920,002 $55,563 $683,024 $352,831 TOTAL $9,470,854 $163,190 $2,306,736 $1,565,740 $2,056,048 $3,861,809 $306,291 $2,632,600 $1,414,744 2013 1st QTR. $1,442,788 $18,876 $388,100 $220,116 $409,604 $730,203 $50,403 $538,172 $272,403 2nd QTR. $2,795,098 $43,474 $683,079 $413,881 $631,677 $1,166,691 $86,192 $804,583 $422,690 3rd QTR. $4,093,327 $67,891 $854,985 $619,475 $808,108 $1,459,427 $125,105 $1,051,846 $494,633 4th QTR. $2,452,386 $47,032 $631,137 $408,175 $622,325 $1,004,402 $91,011 $726,329 $372,496 TOTAL $10,783,600 $177,274 $2,557,302 $1,661,647 $2,471,714 $4,360,723 $352,711 $3,120,931 $1,562,221 2014 1st QTR. $1,612,339 $28,023 $413,773 $335,858 $529,348 $836,436 $66,414 $486,988 $316,585 2nd QTR. $3,082,372 $47,616 $738,629 $556,221 $726,462 $1,241,528 $111,737 $909,334 $450,331 3rd QTR. $4,450,953 $65,031 $913,236 $433,317 $893,146 $1,610,962 $138,740 $1,111,409 $524,916 4th QTR. $2,752,594 $35,656 $682,752 $591,604 $675,809 $1,200,795 $104,352 $1,047,664 $405,805 TOTAL $11,898,259 $176,326 $2,748,389 $1,917,000 $2,824,765 $4,889,721 $421,243 $3,555,395 $1,697,637 2015 1st QTR. $2,138,741 $29,617 $484,171 $352,281 $592,996 $956,764 $79,325 $557,193 $296,522 2nd QTR. $3,520,067 $59,500 $808,862 $597,754 $818,270 $1,413,327 $120,140 $916,055 $460,999 3rd QTR. $4,889,504 $88,174 $972,300 $799,251 $975,733 $1,801,829 $150,571 $884,612 $585,810 4th QTR. $3,176,502 $57,701 $725,932 $540,631 $748,204 $1,294,574 $112,859 $1,171,629 $455,315 TOTAL $13,724,814 $234,993 $2,991,265 $2,289,917 $3,135,203 $5,466,494 $462,895 $3,529,490 $1,798,647 2016 1st QTR. $2,298,335 $42,540 $512,384 $457,736 $615,223 $1,075,396 $86,520 $719,658 $353,453 2nd QTR. $3,529,886 $62,065 $847,694 $700,889 $915, 763.25 $1,590,844 $140,468 $646,809 $490,516 3rd QTR. $5,734,479 $81,543 $1,059,088 $866,298 $1,070,257 $1,977,191 $164,058.33 $1,162,978 $571,285 PG. 14

2016 Q3 TRANSIENT OCCUPANCY TAX REPORT TOT BREAKDOWN BY AREA PERCENTAGE BREAKDOWN Past Four Quarters - Q3 2016, Q2 2016, Q1 2016, Q4 2015 TOT Percentage Breakdown by Area Third Quarter 2016 TOT Percentage Breakdown by Area Second Quarter 2016 Windsor Sonoma Sebastopol Santa Rosa Rohnert Park Petaluma Cloverdale Unincorporated Windsor Sonoma Sebastopol Santa Rosa Rohnert Park Petaluma Cloverdale Unincorporated Source: Sonoma County and Cities Finance Departments Source: Sonoma County and Cities Finance Departments TOT Percentage Breakdown by Area First Quarter 2016 TOT Percentage Breakdown by Area Fourth Quarter 2015 Windsor Sonoma Sebastopol Santa Rosa Rohnert Park Petaluma Cloverdale Unincorporated Windsor Sonoma Sebastopol Santa Rosa Rohnert Park Petaluma Cloverdale Unincorporated Source: Sonoma County and Cities Finance Departments Source: Sonoma County and Cities Finance Departments PG. 15

2016 Q3 TRANSIENT OCCUPANCY TAX REPORT SONOMA COUNTY TOT SPENDING TOT SPENDING BREAKDOWN Unincorporated Area TOT tax revenues are derived from a 9.0% tax on the rental of hotel and motel rooms, inn beds, and campgrounds in the unincorporated areas. County of Sonoma TOT Budget Breakdown Unincorporated Area Fiscal Year 2015-2016 (July-June) Transfer to General Fund (19.35%) Cultural & Art Events (7.03%) Economic Development (16.10%) Affordable Housing (8.14%) Other (.94%) Agricultural Promotion (1.01%) Collection and Administration (6.53%) Tourism (16.98%) Regional Parks Maint & Ops (23.91%) Source: County of Sonoma PG. 16

CITY TOT SPENDING 2016 Q3 TRANSIENT OCCUPANCY TAX REPORT TOT SPENDING BREAKDOWN By City TOT tax revenues are derived from taxes on the rental of hotel and motel rooms, inn beds, and campgrounds in Sonoma County cities. The General Fund provides funding for a wide range of city needs, including: Fire Police Planning and Building Public Works Administration Community Services TOT budget breakdowns are provided by each respective city s finance department. Most cities allocate all TOT revenue to the general fund. and Petaluma also allocate revenue to additional categories, including Community Services, Collection and Administration, and Cultural and Art Events. TOT Budget Breakdown Cloverdale, Santa Rosa, Sebastopol, Sonoma, Windsor, and Rohnert Park 2015-2016 General Fund (100%) Source: Sonoma County and Cities Finance Departments TOT Budget Breakdown 2015-2016 TOT Budget Breakdown Petaluma 2015-2016 Community Services (83%) General Fund (17%) Source: Sonoma County and Cities Finance Departments Collection and Administration (13%) Cultural and Art Events (14%) General Fund (73%) Source: Sonoma County and Cities Finance Departments PG. 17

INDUSTRY DEVELOPMENT SONOMA COUNTY LODGING DEVELOPMENTS Unincorporated Area Q3 2016 Updates Sonoma County currently has 30 lodging property applications in the approval process. When completed, 1751 rooms will be added to Sonoma County. Development Type Project Name Lodging Type Unincorporated Area New Be Here Now Nature Lodging Retreat Address/ Location 3770 Langtry Road, Santa Rosa Expansion Sea Ranch Lodge Luxury/Resort 60 Sea Walk Drive, Sea Ranch New New Sonoma Country Inn (Graywood Ranch) Guernewood Park Resort Expansion Bodega Coast Inn Limited Service Expansion Ocean Song Campsites Ca(Campsites) Luxury/Resort 7945 Highway 12, Kenwood Luxury/Resort 17155 Highway 116, Guerneville Environmental Center 521 Highway 1, Bodega Bay 19999 Coleman Valley Road, Bodega Bay New Camp Out Back Campground 16101 Neeley Road, Forestville Expansion Cloverleaf Ranch Luxury/Resort 3886 Old Redwood Hwy, Santa Rosa Expansion None RV/ Campground 16590 Hwy 116, Guerneville Rooms Proposed Completion Year (Est.) Comments 9 Unknown Under construction 40 Unknown Vested and not constructed. 50 Unknown They anticipate opening in 2019. Use Permit Approved (Date) and Hearing Body They have not met the conditions of approval. Appealed. 120 Unknown Applicant must submit materials related to site design which will be followed by County recirculation of the Environmental Initial Study. 12 Unknown Expired and not constructed. Expired and not constructed. 25 Unknown Incomplete. Under review with Code Enforcement. 20 Unknown Application not officially approved. Under review by Code Enforcement. 31 Unknown Incomplete application. 34 Unknown Lodging properties in this section are in various stages of completion. This report is meant to merely provide a snapshot of their current status during the time this report was produced. The EDB and SCT will continue to update this information, quarterly, based on information from each jurisdiction. Projects still under construction from previous reports are also represented above. Lodging properties that have been announced but are not in the approval process are not included.

INDUSTRY DEVELOPMENT CITY LODGING DEVELOPMENTS, Petaluma, and Rohnert Park Q3 2016 Updates Development Type Project Name Lodging Type Address/ Location City of New H3 Hotel 227 Ave New Howling Wine Jaunts Res Vis Lodging New Saggio Hill Luxury, Resort, Spa New Garden Court Inn Limited Service New The Wheelman House Limited Service 602 College St. 91 Acres in N. 146 Ave 223 Center Street City of Petaluma New Silk Mill Hotel Full Service 450 Jefferson St. New The Petaluman Boutique Luxury New Riverfront Courtyard Marriott Hotel City of Rohnert Park New Fairfield Inn and Suites New Cambria Hotel and Suites Focused Service Full Service Full Service 2 Petaluma Blvd S. 500 Hopper Street 405 Martin Avenue New Oxford Suites Full Service 67 Golf Course Drive Rooms Proposed Completion Year (Est.) 39 Unknown 1 Unknown 130 Unknown 23 N/A 3 Unknown 76 Unknown Comments 54 Unknown Inactive application 122 Unknown City pending review 100 Unknown Architectural Review application 5870 Labath 132 Mid-2018 Part of Five Creek Project 163 Summer 2017 Use Permit Approved (Date) and Hearing Body General Plan Amendments, Final Development Plan, and Zoning Amendments approved January 10, 2017

INDUSTRY DEVELOPMENT CITY LODGING DEVELOPMENTS Santa Rosa, Sonoma, Windsor, and Sebastopol Q3 2016 Updates Development Type Project Name City of Santa Rosa Expansion Hyatt Vineyard Creek Hotel Lodging Type Full Service New Spinster Inn Limited Service New Inn at Santa Rosa Limited Service City of Sonoma New Hotel Project Sonoma Hotel w/ Spa and Restaurant New Hawker Sonoma Boutique Hotel New First Street East Project Hotel w/ Spa and Café Address/ Location 170 Railroad Street 407 South A Street 111 Commercial Court 153 West Napa St. & 541 First St. West 158-172 West Napa St. 254 First St. East, 273-299 Second St. East City of Rohnert Park New Holiday Inn Full Service 8755 Old Redwood Highway City of Sebastopol New French Garden Inn Limited Service 8050 Bodega Avenue New Piazza Hotel Full Service 6828 Depot Street Rooms Proposed Completion Year (Est.) 100 Summer 2017 Comments 100 new rooms (10 in existing building, 90 in the addition) Use Permit Approved (Date) and Hearing Body 9 Spring 2017 8/6/2015 Zoning Administrator 100 Winter 2017/18 62 2017 Application under review; Final EIR and Use Permit to be considered by Planing Commission on 11/3/16. 7 2017 Use Permit application approved by Planning Commission on 10/13/16. 30 2018 Application submitted 10/6/16. 100 Unknown Under construction 18 2018 Development permits expired in November 2016 66 2018

SOURCES 2016 Q3 TRANSIENT OCCUPANCY TAX REPORT City data is provided by the finance and planning departments of Cloverdale, Cotati,, Petaluma, Rohnert Park, Santa Rosa, Sebastopol, Sonoma, and Windsor. County TOT revenue figures are provided by the Sonoma County Auditor-Controller / Treasurer-Tax Collector. County industry developments are provided by the Permit Resource and Management Department. METHODOLOGY Total, city, and unincorporated area TOT revenues are seasonally adjusted using X-13ARIMA-SEATS, which is a seasonal adjustment software produced, distributed, and maintained by the U.S. Census Bureau. Seasonal adjustments are only made for page 6 of this report. All other data figures are unadjusted. A calendar year runs from January to December. Each quarter contains three months of the year, beginning with January, February and March for the first quarter. A fiscal year runs from July to June. Please note that this report contains data updated through the third quarter (July, August, September) of calendar year 2016, and contains the most recent data available based on county reporting. All information contained within this report was obtained from sources believed to be accurate, but Sonoma County Tourism (SCT) and the Economic Development Board (EDB) do not guarantee that it is accurate or complete. This report is intended for informational purposes only and does not represent an endorsement of any proposed project by the SCT or EDB or any of their employees, affiliates, or members. ACKNOWLEDGMENTS The Transient Occupancy Tax reports are produced by the Economic Development Board in conjunction with Sonoma County Tourism. This quarter s report was prepared by Tourism Research Project Coordinator, Maile Hartsook. Thank you to the finance and planning departments of Cloverdale, Cotati,, Petaluma, Rohnert Park, Santa Rosa, Sebastopol, Sonoma, and Windsor for providing TOT revenue figures and industry updates for Sonoma County cities. Thank you to the Permit and Resource Management Department (PRMD) and the Sonoma County Auditor-Controller / Treasurer-Tax Collector office for providing information for the unincorporated areas of Sonoma County. PG. 21

707-565 - 7170 141 STONY CIRCLE, STE. 110, SANTA ROSA, CA 95401