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Home My WebLink About2013-033 - Levying An Assessment for the Downtown Santa Ana Business Improvement AreaRESOLUTION NO. 2013-033 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA LEVYING AN ASSESSMENT FOR THE DOWNTOWN SANTA ANA BUSINESS IMPROVEMENT AREA FOR CALENDAR YEAR 2013 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS FOLLOWS: Section 1. The City Council of the City of Santa Ana hereby finds, determines and declares as follows: A. On February 6, 1984, the City Council, by Ordinance No. NS-1715, established the Downtown Santa Ana Business Improvement Area pursuant to California Streets and Highways Code Sections 36500, et seq. (the `BID Law'). B. On June 17, 2013, the City Council received the 2013 Annual Report for the Downtown Santa Ana Business Improvement Area (the "Report"). C. On June 17, 2013, the City Council adopted Resolution 2013-027 approving the Report and setting a public hearing for July 1, 2013 at which time protests could be made to the proposed levy of the 2013 annual assessment for the Downtown Santa Ana Business Improvement Area (the "Annual Assessment'). D. On July 1, 2013, at the time and place called for in Resolution 2013-027, the City Council conducted a duly noticed public hearing at which written and oral protests to the proposed Annual Assessment were made and considered as provided in Streets and Highways Code section 36524 and 36525. E. Qualifying written protests constituting a majority of the owners of the businesses paying the Annual Assessment were not received at or before the conclusion of the public hearing. Section 2. The Report is hereby confirmed, and the levy of an assessment for the calendar year 2013 in accordance with Attachment B of the Report, a copy of which is attached hereto and incorporated herein by reference, is hereby approved. Resolution No. 2013-033 Pagel of ADOPTED this 1st day of July, 2013. r.aYv' APPROVED AS TO FORM: Sonia R. Carvalho, City Attorney By: A f? Sandoval ief Assistant City Attorney AYES: NOES: ABSTAIN AND NOT PRESENT: Councilmembers: Amezcua. Benavides. Pulido Reyna Sarmiento. Tinaiero (6) Councilmembers Councilmembers None (0) Martinez (1) NOT PRESENT: Councilmembers None (0) CERTIFICATE OF ATTESTATION AND ORIGINALITY I, MARIA D. HUIZAR, Clerk of the Council, do hereby attest to and certify the attached Resolution No. 2013-033 to be the original resolution adopted by the City Council of the City of Santa Ana on July 1, 2013. Date: 7 i16tiv? A) Clerk of the Council City of Santa Ana Resolution No. 2013-033 Page 2 of 2 DOWNTOWN SANTA ANA BUSINESS IMPROVEMENT DISTRICT 2013 ASSESSMENT REPORT Backaround On February 6, 1984, the City Council adopted Ordinance No. NS-1715 pursuant to Section 36500, et seq., of the 1979 State of California Streets and Highways Code, creating a Business Improvement District (BID) in Downtown Santa Ana. On October 6, 2003, the City Council appointed the Community Redevelopment and Housing Commission (CRHC) as the Downtown Santa Ana Business Improvement District Advisory Board. As the BID Advisory Board, the CRHC is responsible for making recommendations to the City Council on the expenditure of revenues derived from the levy of assessments, on the classification of businesses, as applicable, and on the method and basis of levying the assessments (including the annual budget). The BID was established as a means of providing the Downtown business community with the funding to promote the Downtown through events and advertising pieces; funding to increase security and enhance the overall aesthetics of the area; and also to maintain the downtown shopping corridors. Improvement Area Boundaries The geographic boundaries of the district remain unchanged from the original 1984 area, and they include over 700 retail, service, and professional members (see Attachment A). Assessment Formula The formula for the BID tax levy also remains unchanged from the original 1984 ordinance and is based on the category and/or sales volumes of the business (see Attachment B). 2013 Budget Plan Based on the feedback from the two Associations, the 2013 BID Budget focuses primarily on the continuation of promotions and marketing of the BID. Some of the promotion and marketing will be focused on Downtown events and advertising pieces; which are all designed to enhance the overall aesthetics of the area and also to maintain the downtown shopping corridors. Detailed breakdowns of the two groups' budgets are attached (Attachment C). The estimated assessments from the BID would Page 1 of 6 be $250,000 to be split evenly by Downtown Inc. and the Santa Ana Business Council Inc. -- the two business groups that have spearheaded this reactivation process. All revenues collected since the 2007 BID assessment have been expended and there are no surplus funds or deficits in this fiscal year. These two representative business associations are proposing to host a variety of major community events and promotions, including, but not limited to the following: • Sound Downtown/Restaurant Week ($10,000) • OC Pride ($5,000) • Day of the Dead ($5,000) • Patchwork ($10,000) • Downtown Santa Ana Film Festival ($5,000) • OC Fashion Week ($5,000) • Artwalk / Sidewalk sale (Spurgeon & 4th Street) ($2,000) • Valentine's Day ($1,000) • Spring Festival & St. Patrick's Day ($2,000) • Quinceanera Expo ($3,000) • Mother's Day ($8,000) • Father's Day ($1,000) • 4th of July ($3,000) • Art Fair ($2,000) • 16th & Film Festival ($5,000) • Lucha Libre & Halloween ($6,000) • Noche de Altares ($3,000) • Christmas ($4,000) Other programming for the associations will include funding for the Downtown Restaurant Association, Holiday promotions, website development and maintenance, and an artist retention program. Page 2 of 6 ATTACHMENT A f I L FLOWER ST. z+ r+ 7-7-1 vo F-7-7 . Vf ROSS ST. ILA T 3 BIRCH S . s _ r T " p BIRCH 5T. fD ? BROAD WAY ?O? ~? ? V1 SYCAMORE ST. SYCAMORE ST. n r ? y F-1 ? ? -1 MAIN ST. IIIIr ? ? ? ? ? ? ? CYPRESS BUSH ST. m O ? ? ? ? ? ? ? O SPURCiEON ST. ? N ORN14f ? ? =?a=? FRENCH ST. 0 MORTIMER ST. ATTACHMENT B 2013 ANNUAL ASSESSMENT FORMULA The following businesses located within the boundaries of the Business Improvement District (BID), classified under City Ordinance NS 1690 as Amusement Services, Pawnbrokers, Service Station and Classification A, including, but not limited to Retail Sale of Goods, Hotel and Motels, Theaters and Food Establishments, shall pay an amount equal to one and one-half times their annual business license fee. Businesses classified as Commercial Rental Property, Rental Property, Residential and Rooming House shall pay an amount equal to one-quarter times their annual business license fee. All other businesses, including Professions, Trades and Services within the boundaries of the proposed Business District, shall pay an amount equal to their annual business license fee. Once the assessment formula is established, it cannot be changed without written notice to all businesses within the boundaries of the proposed Business Improvement District and a public hearing held by the City of Santa Ana. Page 4 of 6 ATTACHMENT C DOWNTOWN BUSINESS IMPROVEMENT DISTRICT PROPOSED BUDGETS SUMMARY 2013 OPERATING FUND REVENUE BID Assessments - current .........................................................$250,000 Prior Year Carry Forward ............................................................$0 Total Revenue $250,000 Downtown Inc. ADMINISTRATION Overhead (Supplies, insurance, misc) ..................................$6,000` MARKETING Special Events Sound Downtown/Restaurant Week $10,000 OC Pride $5,000 Day of the Dead $5,000 Patchwork (2x) $10,000 Downtown Santa Ana Film Festival $5,000 OC Fashion Week $5,000 Other $12,000 Total .................................................................... $52,000 Advertising (Print/Online) .................................................$57,000 OTHER PROGRAMMING Restaurant Association ....................................................$5,000 Artist Retention Program ...................................................$5,000 Page 5 of 6 Total $125,000 '07lioe Rent is being subsidized by a DTl Board member. Santa Ana Business Council Inc. ADMINISTRATION Overhead (Office rental, supplies, insurance, misc) ................$12,500 MARKETING Special Events ...................................................... .........$40,000 Artwalk / Sidewalk sale (Spurgeon & 4th Street) $2,000 Valentine's Day $1,000 Spring Festival & St. Patrick's Day $2,000 Quinceanera Expo $3,000 Mother's Day $8,000 Father's Day $1,000 4th of July $3,000 Art Fair $2,000 16th & Film Festival $5,000 Lucha Libre & Halloween $6,000 Noche de Altares $3,000 Christmas $4,000 Advertising (Print/Online) ................................................. $50,625 Newsletters ................................................................... $8,750 Website & Social Media ....................................................$8,750 OTHER PROGRAMMING Holiday Promotions .........................................................$4,375 Total Total Expenditures $125,000 $250,000 Page 6 of 6