75A - PH DOWNTOWN BUSINESS - Laserfiche WebLink

Home Browse Search

Public Hearing — 2021 Downtown BID Assessment December 15, 2020 Page 2 BACKGROUND On February 6, 1984, the City Council adopted Ordinance No. NS-1715 pursuant to state law, creating a Business Improvement District in Downtown Santa Ana. The BID was established as a means of providing the Downtown business community with the funding to promote events and create promotional materials, increase the security presence, enhance maintenance of the downtown shopping corridors, and implement streetscape improvements to the area. The BID is funded through an additional charge on the business license tax for those businesses within the BID boundary. 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 a two -month notice of termination, or if the BID is not approved in any given year. If the BID is successfully renewed, each organization will receive approximately $100,000 (collected from the business license tax fee) per calendar year (January through December). In FY 2019-20, 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, reinstated free Trolley rides, Savor Santa Ana, Boca De Oro Literary Festival, activation of the Promenades, Estrella TV promotion, monthly Santa Ana Sidewalk Sales, and the weekly Downtown Santa Ana newsletter. Both organizations also maintain social media accounts with over 35,000 active followers. Due to the COVID-19 pandemic, both organizations assisted businesses with the establishment of online delivery platforms, social media promotions, food islands and retail islands, and connected them with business recovery resources. FISCAL IMPACT There is no direct fiscal impact associated with this action. The City collects the BID revenue from businesses within the BID boundary and distributes funding to each organization, in accordance with approved operating agreements. Revenues will be deposited equally in the BID Trust and Agency Fund for Downtown Inc. and Santa Ana Business Council in account (Nos. 09301001- 24036 and 09301001-24043) respectively, and distributions to each organization will be made from the same accounts. Fiscal Impact Verified By: Kathryn Downs, CPA, Executive Director— Finance and Management Services Agency Submitted By: Steven A. Mendoza, Executive Director — Community Development Agency Exhibit: 1. 2021 Assessment Report 2. Intent to Levy BID Assessment List 3. Resolution 75A-2