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SANTA ANA'S PROPERTY BASED IMPROVEMENT DISTRICT Also, in 2008, the City of Santa Ana began efforts to establish a new "CID" or Community Improvement District for the same area. FACTS: In 2007, the City of Santa Ana began to review various options on how to increase revenues available for improvements in that business district commonly referred to as "downtown." In January of 2008, the city formed the Management District Formation Committee for the purpose of developing a Community Management District (CMD). The committee also began working with a consultant in an effort to define the specific area to be considered as part of any district and to develop the actual management plan. From June through October of 2008, the petitioning process took place. On July 7, 2008, the City of Santa Ana City Council added Article XX to Chapter 13 of the Municipal Code allowing for the establishment of CMDs. This ordinance differs significantly from state law in that the ordinance set "pre -formation petitioning" at 30% of the proposed district value while the state normally required 50%. Also, the life span of the CMD was set for 10 years while state law limits the life span to five years, with renewals of 10 year periods. On August 5, 2008, Downtown Inc., the newly formed non-profit organization filed Articles of Incorporation with the Secretary of State with the intention of becoming that organization which would manage the proceeds from the new CMD. This non-profit organization had a board of directors that consisted of the very same developers who were pursuing the developmental changes for the downtown area. On August 18, 2008, the Santa Ana City Council adopted Ordinance No. NS-2771..."An Ordinance of the City Council of the City of Santa Ana Adding Article XX to Chapter 13 of the Santa Ana Municipal Code Related to Establishment of Community Management Districts." On August 29, 2008, the Santa Ana City Council adopted the CMD plan, and on October 6, 2008, declared its intention to go forward with the establishment of the CMD. On October 16, 2008, a notice of public hearing in this regard was issued, and a public hearing was set for December 1, 2008. The voting process to establish "property based improvement districts" is based upon the assessed value of the properties and not on an individual or "one man -one vote" rule. On December 1, 2008, the following voting tabulations were reported to the City Council. The tabulations were reported in two ways, i.e. one including the ballots from the Town Square Condominium project and one excluding the project: 2011-2012 ORANGE COUNTY GRAND JURY Page 213