12A - DT BID SET PH 2019 - Laserfiche WebLink

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Downtown Business Improvement District— Intent to Levy Assessment for 2019 November 20, 2018 Page 2 the area. The BID is funded through an additional charge on the business license tax for those businesses within the BID boundary. On October 6, 2003, the City Council appointed the Community Redevelopment and Housing Commission (CRHC) as the Downtown Santa Ana Business Improvement District Advisory Board. As the BID Advisory Board, the CRHC is responsible for making recommendations to the City Council on the expenditure of revenues derived from the levy of assessments, on the classification of businesses, as applicable, and on the method and basis of levying the assessments, including the annual budget. DISCUSSION The 2019 Assessment Report contains the basis and method of levying the assessment, estimated activities and budgets from the two business associations - the Santa Ana Business Council and Downtown Inc., and a map of the BID boundaries (Exhibit 1). The Assessment Report presented for consideration and recommended for approval has been reviewed and was determined to meet state law requirements. After approval of the report, the next course of action is to conduct a public hearing where downtown merchants can vote in favor or against the BID renewal. The Public Hearing is scheduled for December 18, 2018. Terms The City Council activated the current BID on July 1, 2013. To administer the activities of the BID, the City executed operating agreements with Downtown Inc. and the Santa Ana Business Council in an effort to address the needs of the two business associations. These agreements contain provisions to ensure proper administration and distribution of funds such as the annual budget, financial record keeping, fund distribution, board composition and meeting requirements. The Agreements are renewed automatically in one year renewal terms, unless either party gives at least two months' notice of termination, or if the BID is not approved in any given year. Each organization receives approximately $100,000 (collected from the business license tax fee) per calendar year (January through December) and may carry over unspent funds into the next year. If the BID is successfully renewed, each organization will receive an additional allocation of approximately $100,000 in 2019. In FY2017-18, the BID, through the efforts of Downtown Inc. and the Santa Ana Business Council, accomplished several successful events and promotions that drew thousands of visitors to Downtown Santa Ana. These events and promotions included: First Saturday Artwalk, Savor Santa Ana, Boca De Oro Literary Festival, Santa Ana Media Summit, Outdoor Cinnema Series, Santa Ana Sidewalk Sales (monthly), and the Downtown Santa Ana newsletter. Both organizations also maintain social media accounts with over 60,000 active followers. STRATEGIC PLAN ALIGNMENT Approval of this item allows the City to meet Goal #3 (Economic Development), Objective 4 (Continue to pursue objectives that shape downtown Santa Ana into a thriving, culturally diverse, 12A-2