25B - DOWNTOWN SANTA ANA CMD AND BID ANNUAL REPORTS

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CMD and BID Annual Reports and Agreement with Downtown, Inc. August 16, 2010 Page 2 The City entered into a management agreement with Downtown Inc. to run the newly created non- profit organization to oversee the expenditure of the assessments collected during the five-year term of the CMD. The ordinance establishing the Community Management District and the management agreement with Downtown Inc. requires the submission of an annual report to the City Council containing the following information: 1) any changes to the boundaries of the CMD; 2) the improvements and activities to be provided for that upcoming fiscal year; 3) an estimate of the cost of providing the improvements and the activities for that upcoming fiscal year; 4) the method and basis of levying the assessment; 5) the amount of any surplus or deficit revenues to be carried over from a previous fiscal year; and 6) the amount of any contributions to be made from sources other than assessments levied. Downtown Inc. has submitted the 2010 annual report for the Downtown Santa Ana Community Management District (Exhibit 1). Business Improvement District On February 6, 1984, the City Council adopted Ordinance No. NS-1715 pursuant to Section 36500 et seq of the California Streets and Highways Code, creating a Business Improvement District (BID) in Downtown Santa Ana. The BID allows the businesses to assess themselves in order to raise funds for the promotion and improvement of the Downtown area. The report includes the name and boundaries of the BID, the activities and their cost proposed for the coming year, the method and basis of levying and collecting the assessments, and basic financial information covering such things as prior year surplus or deficits and non-assessment revenue. In May of 2009, the City Council approved the 2009 annual report and a Business Improvement District service agreement for $230,000 with Downtown Inc. to facilitate the utilization of carry forward 2007/2008 BID funds to be programmed for marketing, promotion and other activities of benefit to the Downtown Santa Ana Business Improvement District. The 2010 annual report highlights the activities which have been undertaken with the carry forward BID funds from April 2009 through June 2010 (Exhibit 2). At the August 3, 2010, Community Redevelopment and Housing Commission meeting, the Commission reviewed the annual report in the capacity of BID Advisory Board. 25B-2