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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />JULY 7, 2008 <br />TITLE: <br />ORDINANCE ENABLING THE <br />ESTABLISHMENT OF COMMUNITY <br />MANAGEMENT DISTRICTS <br />i <br />~~~-~.r.,-_ _, <br />CITY MANAGER <br />RECOMMENDED ACTION <br />CLERK OF COUNCIL USE ONLY: <br />APPROVED <br />^ As Recommended <br />^ As Amended <br />^ Ordinance on 1St Reading <br />^ Ordinance on 2"d Reading <br />^ Implementing Resolution <br />^ Set Public Hearing For <br />CONTINUED TO <br />FILE NUMBER <br />Adopt an ordinance adding Article XX to Chapter 13 of the Santa Ana <br />Municipal Code related to establishment of Community Management <br />Districts. <br />DISCUSSION <br />Beginning in the Spring of 2007, the City initiated an analysis of the <br />various assessment options available to adopt in the Downtown. The <br />existing Business Improvement District (BID) cannot equitably generate <br />sufficient resources to address the economic pressures in an evolving <br />downtown. Therefore, new assessment options were evaluated. The <br />analysis examined Property and Business Improvement Districts (PBIDs) <br />which are established under California statute, Community Management <br />Districts (CMDs) which are formed under a city's charter authority, and <br />Parking and Business Improvement Districts (BIDs), also formed under <br />state law. All three are benefit assessment districts. The first two <br />levy a special assessment against real property within the defined <br />district. The third type of district levies an assessment against <br />business. This is the type of district Downtown Santa Ana has had in <br />place since 1984. <br />Both the Property and Business Improvement District and the Community <br />Management District, as tentatively framed for Downtown, can generate <br />nearly five times the revenue of the current BID. This enables <br />stakeholders to exercise significantly greater self-determination in the <br />development, implementation, and management of downtown economic <br />enhancement programs. <br />This Community Management District ordinance lays out the processes for <br />the establishment of this unique benefit assessment district. It is <br />50B-1 <br />