55B - RESO OF INTENT COMM MGMT DST

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REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: OCTOBER 6, 2008 TITLE: RESOLUTION OF INTENTION TO ESTABLISH A COMMUNITY MANAGEMENT DISTRICT IN THE DOWNTOWN CITY MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ^ As Recommended ^ As Amended ^ Ordinance on 1s2 Reading ^ Ordinance on 2"d Reading ^ Implementing Resolution ^ Set Public Hearing For_ CONTINUED TO FILE NUMBER 1) Adopt a Resolution of Intention to form a Community Management District in the Downtown in accordance with the provisions of Article XX, Chapter 13 of the Santa Ana Municipal Code; 2 ) Set a public hearing and order the preparation and distribution of ballots in accordance with the provisions of Section 53753 of the Government Code and Article XIIID, Section 4 of the California Constitution. DISCUSSION In the spring of 2007, the City initiated an analysis of the various assessment district options available to the Downtown, as the existing Business Improvement District (BID) does not generate sufficient revenues to address the growing economic pressures in the area. The analysis examined (1) Property and Business Improvement Districts (PBIDs) which are established under California statute, (2) Community Management Districts (CMDs) which are formed under a city's charter authority, and (3) Parking and Business Improvement Districts (BIDs), also formed under State law. All three are benefit assessment districts. The first two levy a special assessment against real property within the defined district. The third type of district levies an assessment against individual businesses. This is the type of district Downtown Santa Ana has had in place since 1984. Both the PBID and CMD, as framed for Downtown, can generate nearly five times the revenue of the current BID. This enables stakeholders to exercise significantly greater self-determination in the development, implementation and management of downtown economic enhancement programs. 55B-1