75D - PH - 2013 DOWNTOWN BID - Laserfiche WebLink

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PH - 2013 BID Levy July 1, 2013 Page 2 subject resolution will confirm the 2013 Assessment report for the BID and levy the assessments for 2013. Preparation and approval of the operating agreements would then follow. It is important to note that this public hearing is to determine whether or not to levy the BID assessment for calendar year 2013. The BID charge would be incorporated into the 2013 business license tax bill. The deadline for 2013 business license tax payment for the largest tax group in the Downtown was extended by the City Council to September 30, 2013 to allow for the consideration of the BID levy. Should the City Council approve the BID levy, the timing of consideration for the 2014 BID assessment would occur in Fall 2013 to allow the levy to be incorporated into the business license bills and proceed on normal billing cycles. Additional Background Information Information concerning the Santa Ana Downtown Business Improvement District was provided to the City Council at their meeting of June 17, 2013 (agenda item attached as Exhibit 1). In addition to a summary of the Downtown BID and reactivation activities to date, the agenda item included the 2013 Assessment Report which outlined the proposed budgets of Downtown, Inc (DTI) and the Santa Ana Business Council (SABC). Both DTI and SABC have provided descriptions of their organizations and a listing of their current boards of directors (Exhibits 2 and 3). Attached as Exhibit 4 is a sample of the letter that was sent via certified mail after the City Council meeting of June 17 to all businesses within the BID boundary informing them of the July 1 public hearing and describing their protest option. Exhibit 5 is a sample of the follow-up letter sent via regular mail to help insure that business owners were aware of and reviewed the material provided. Finally, the 2013 Assessment Report includes a description of the BID assessment formula, where certain business classifications are charged 0.25, 1 or 1.5 times their business license fee as their BID assessment. This formula was established in 1984. To ensure full understanding of how the assessment formula is applied to each business, attached as Exhibit 6 is a listing of all businesses which would be subject to the 2013 BID assessment showing which charge would apply to each business. FISCAL IMPACT If the recommended action is approved, there is no direct fiscal impact to the City. The City serves as a pass through for BID revenue in accordance with the Assessment Report and any approved operating agreements. If the recommended action is not approved and the BID is not reactivated by August 1, 2013, Downtown Inc. can enforce the Settlement and Release Agreement and require that the City establish the $189,000 "credit bank" for Downtown Inc. in accordance with the Settlement Agreement. 75D-2