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Downtown Business Improvement District Intent to Levy Assessment for 2020 <br />November 5, 2019 <br />Page 2 <br />the area. The BID is funded through an additional charge on the business license tax for those <br />businesses within the BID boundary. <br />On October 6, 2003, the City Council appointed the Community Redevelopment and Housing <br />Commission (CRHC) as the Downtown Santa Ana Business Improvement District Advisory <br />Board. As the BID Advisory Board, the CRHC is responsible for making recommendations to the <br />City Council on the expenditure of revenues derived from the levy of assessments, on the <br />classification of businesses, as applicable, and on the method and basis of levying the <br />assessments, including the annual budget. <br />DISCUSSION <br />The 2020 Assessment Report contains the basis and method of levying the assessment, <br />estimated activities and budgets from the two business associations - the Santa Ana Business <br />Council and Downtown Inc., and a map of the BID boundaries (Exhibit 1). The Assessment <br />Report presented for consideration and recommended for approval has been reviewed and was <br />determined to meet state law requirements. After approval of the report, the next course of action <br />is to conduct a public hearing where downtown merchants can vote in favor or against the BID <br />renewal. The Public Hearing is scheduled for December 3, 2019. <br />Terms <br />The City Council activated the current BID on July 1, 2013. To administer the activities of the BID, <br />the City executed operating agreements with Downtown Inc. and the Santa Ana Business <br />Council in an effort to address the needs of the two business associations. These agreements <br />contain provisions to ensure proper administration and distribution of funds such as the annual <br />budget, financial record keeping, fund distribution, board composition and meeting requirements. <br />The Agreements are renewed automatically in one-year renewal terms, unless either party gives <br />at least two months' notice of termination, or if the BID is not approved in any given year. <br />If the BID is successfully renewed, each organization will receive approximately $100,000 <br />(collected from the business license tax fee) per calendar year (January through December) and <br />may carry over unspent funds into the next year. In FY2018-19, the BID, through the efforts of <br />Downtown Inc. and the Santa Ana Business Council, accomplished several successful events <br />and promotions that drew thousands of visitors to Downtown Santa Ana. These events and <br />promotions included: monthly First Saturday Artwalks, Artwalk Trolley, Savor Santa Ana, Boca <br />De Oro Literary Festival, Santa Ana Media Summit, activation of the Promenades, Estrella TV <br />promotion, monthly Santa Ana Sidewalk Sales, and the weekly Downtown Santa Ana newsletter. <br />Both organizations also maintain social media accounts with over 35,000 active followers. <br />STRATEGIC PLAN ALIGNMENT <br />Approval of this item allows the City to meet Goal #3 (Economic Development), Objective 4 <br />(Continue to pursue objectives that shape downtown Santa Ana into a thriving, culturally diverse, <br />shopping, dining, and entertainment destination), Strategy F (Partner with downtown business <br />and merchant associations to program events that showcase restaurants, shopping and <br />entertainment venues). <br />12A-2 <br />