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SANTA ANA'S PROPERTY BASED IMPROVEMENT DISTRICT CITY OF SANTA ANA SPECIAL ASSESSMENT DISTRICT In July of 2011, the Orange County Grand Jury received a complaint requesting that it conduct an inquiry into the establishment of a Community Management District (CMD) in the City of Santa Ana, Ca. Such specially established assessment districts are frequently referred to as "Property Based Improvement Districts" or PBIDs. After a preliminary investigation, it appeared that certain irregularities took place regarding the election process that established the district. It was also alleged that a sufficient number of property owners within the district objected to the process and have sought relief through a petition to "disestablish" the district and filed a petition to do so with their elected representatives on the Santa Ana City Council. This petition has been repeatedly re-calendared by the Santa Ana City Council without making any definitive decisions as to the substance of the petition. These actions or lack thereof, have prevented these petitioners from receiving their rightful consideration. METHODOLOGY: The 2011-2012 Orange County Grand Jury took the following steps to investigate the citizen's complaint letter. They: • Compiled and read documents related to the complaint; • Interviewed by phone and in person individuals related to the complaint; • Interviewed city officials; • Researched public documents relating to ethics of public officials; • Reviewed applicable statutes and case law; • Evaluated the compiled information; and • Generated this report. HISTORY: For many years, almost from its very inception, the City of Santa Ana has had a downtown shopping and business district known as "Fourth Street." It has a long cultural history of Hispanic influence and atmosphere. Approximately twenty-five (25) years ago, it came to be known as the "Fiesta Marketplace", a reference to a business entity which began private development in the immediate area. Fiesta Marketplace initially consisted of majority and minority partners, each of whom owned various parcels of commercial property within the immediate vicinity of this "downtown" area. The "Fiesta Marketplace" originated in 1985 for the purpose of the general improvement of Fourth Street. Some of the improvements were to be financed through various funding sources 2011-2012 ORANGE COUNTY GRAND JURY Page 211