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Downtown Business Improvement District Intent to Levy Assessment for 2021 <br />November 17, 2020 <br />Page 2 <br />DISCUSSION <br />The 2021 Assessment Report contains the basis and method of levying the assessment, estimated <br />activities and budgets from the two business associations, the Santa Ana Business Council and <br />Downtown Inc., and a map of the BID boundaries (Exhibit 1). The Assessment Report presented <br />for consideration and recommended for approval has been reviewed and was determined to meet <br />state law requirements. After approval of the report, the next course of action is to conduct a public <br />hearing where downtown merchants can vote in favor or against the BID renewal. The public <br />hearing is scheduled for December 15, 2020. <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 Council <br />in an effort to address the needs of the two business associations. These agreements contain <br />provisions to ensure proper administration and distribution of funds such as the annual budget, <br />financial record keeping, fund distribution, board composition, and meeting requirements. The <br />Agreements are renewed automatically in one-year renewal terms, unless either party gives at <br />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 FY 2019-20, the BID, through the efforts of <br />Downtown Inc. and the Santa Ana Business Council, accomplished several successful events and <br />promotions that drew thousands of visitors to Downtown Santa Ana. These events and promotions <br />included the following: First Saturday Artwalk, re -instated free Trolley rides, Savor Santa Ana, Boca <br />De Oro Literary Festival, activation of the Promenades, Estrella TV promotion, monthly Santa Ana <br />Sidewalk Sales, and the weekly Downtown Santa Ana newsletter. Both organizations also maintain <br />social media accounts with over 35,000 active followers. <br />FISCAL IMPACT <br />There is no direct fiscal impact associated with this action. The City collects the BID revenue from <br />businesses within the BID boundary and distributes funding to each organization, in accordance <br />with approved operating agreements. Revenues will be deposited equally in the BID Trust and <br />Agency Fund and distributions to each organization will be made from the same accounts as <br />follows: <br />Fiscal Year <br />Accounting Unit- <br />Fund Description <br />Accounting Unit, <br />Estimated <br />Account <br />Account Description <br />Amount <br />FY 20-21 <br />09301001-24036 <br />Business Improvement <br />Trust & Agency, <br />$50,000 <br />(Jan. — June) <br />District <br />Downtown Inc. <br />FY 20-21 <br />09301001-24043 <br />Business Improvement <br />Trust & Agency, Santa <br />$50,000 <br />(Jan. — June) <br />District <br />Ana Business Council <br />FY 21-22 <br />09301001-24036 <br />Business Improvement <br />Trust & Agency, <br />$50,000 <br />Jul —Dec. <br />District <br />Downtown Inc. <br />FY 21-22 <br />09301001-24043 <br />Business Improvement <br />Trust & Agency, Santa <br />$50,000 <br />(July —Dec.) <br />District <br />Ana Business Council <br />Total Amount <br />$200,000 <br />12A-2 <br />