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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />5 , 2017 <br />TITLE: <br />APPROVE AGREEMENTS WITH DOWNTOWN INC. <br />AND SANTA ANA BUSINESS COUNCIL TO <br />ESTABLISH DOWNTOWN MERCHANTS FUND <br />(STRATEGIC PLAN NO. 3, 4F) <br />(f� <br />CIT MANAGER <br />RECOMMENDED ACTION <br />CLERK OF COUNCIL USE ONLY: <br />APPROVED <br />❑ As Recommended <br />❑ As Amended <br />❑ Ordinance on 15' Reading <br />❑ Ordinance on 2nd Reading <br />❑ Implementing Resolution <br />❑ Set Public Hearing For <br />CONTINUED TO <br />FILE NUMBER <br />Authorize the City Manager and the Clerk of the Council to execute agreements with Downtown <br />Inc. and Santa Ana Business Council to establish a Merchants Fund for a period of January 1, <br />2018 through January 1, 2019 in the amount of $200,000 ($100,000 per organization), subject to <br />non -substantive changes approved by the City Manager and City Attorney. <br />DISCUSSION <br />On August 4, 2015, the City Council adopted the Downtown Enhancements and Parking <br />Modernization Plan (Plan) to address the need to modernize parking structures, enhance public <br />amenities, and address deferred maintenance in the downtown. As part of the Plan, downtown <br />business associations and stakeholders agreed to an increase in parking rates and the <br />implementation of new smart meters in the downtown area with the understanding that increased <br />revenue from these new rates and smart meters would be reinvested back into the downtown. <br />As part of the Plan, it was proposed that a Downtown Merchants/Validation Fund be created to <br />fund a validation program for participating business and merchants to reward their customers for <br />using the parking structures. Before implementation, both merchant groups and the City staff <br />decided that a validation program was not feasible due to the complicated administration of the <br />program. Downtown Inc. and Santa Ana Business Council requested that the Validation Fund be <br />changed to a Merchants Fund, (Exhibit 1 and 2) for continued promotion and marketing of the <br />downtown (Exhibit 3). <br />Both Associations have provided budgets (Exhibit 4) for the administration of the Merchants <br />Fund. This funding will continue to support strong marketing efforts and will allow for successful <br />year-round administration of events for the Downtown. This additional $100,000 per organization <br />will complement the existing funds each association receives from the City's Business <br />2501-1 <br />