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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />JANUARY 22, 2013 <br />TITLE: <br />ORDINANCE TO REPEAL ARTICLE XX <br />DISESTABLISHING THE DOWNTOWN <br />COMMUNITY MANAGEMENT DISTRICT <br />AND DIRECTION REGARDING <br />REACTIVATION OF DOWNTOWN BID <br />CITY MANAGER <br />RECOMMENDED ACTION <br />CLERK OF COUNCIL USE ONLY: <br />APPROVED <br />? As Recommended <br />? As Amended <br />? Ordinance on 1s` Reading <br />? Ordinance on 2nd Reading <br />? Implementing Resolution <br />? Set Public Hearing For <br />CONTINUED TO <br />FILE NUMBER <br />Adopt an ordinance repealing Article XX of Chapter 13 of the Santa Ana Municipal Code <br />relating to community management districts; and <br />2. Direct staff to undertake activities to allow consideration of reactivation of the Downtown Santa <br />Ana Business Improvement District (BID). <br />DISCUSSION <br />The City of Santa Ana established a Business Improvement District (BID) in 1984 at the request of <br />Downtown merchants to provide funds from business license surcharges for the promotion of the <br />Downtown. Funds were collected for this BID continuously through 2007. On December 15, 2008 <br />the City Council adopted a resolution establishing the Downtown Santa Ana Community <br />Management District (commonly known as the PBID) and levied assessments on property owners <br />within the District to fund various programs benefiting the Downtown. On May 18, 2009, the City <br />Council approved an agreement with Downtown, Inc. to manage the Downtown PBID and <br />Downtown, Inc. proceeded to administer the Clean & Safe Programs and undertake marketing <br />efforts outlined in their annual report. <br />Concurrently, it became evident that while there were many Downtown stakeholders supportive of <br />the PBID and its programs, there were also Downtown stakeholders - both property owners and <br />business owners - that either did not agree with the initial formation of the PBID or did not agree <br />with the program expenditures. Due to this disagreement and other factors, the City Council did <br />not levy the PBID assessment in 2012 and therefore, did not provide Downtown, Inc. the funds <br />anticipated in the May 2009 agreement. <br />On January 22, 2013, the City Council will consider in closed session a potential settlement <br />agreement with Downtown, Inc. If the City Council agrees to the settlement terms presented, the <br />City Attorney will then report the terms of the settlement agreement to the public in open session. <br />5OA-1