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HomeMy WebLinkAbout12A - SET PH FOR BID ASSESSMENTREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: DECEMBER 16, 2013 TITLE: DOWNTOWN SANTA ANA BUSINESS IMPROVEMENT DISTRICT — INTENT TO LEVY ASSESSMENT FOR 2014 CITY MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 1s' Reading ❑ Ordinance on 2n° Reading ❑ Implementing Resolution ❑ Set Public Hearing For_ CONTINUED TO FILE NUMBER 1. Approve the 2014 Assessment Report and budget for the Downtown Santa Ana Business Improvement District. 2. Adopt a resolution of intention to levy an annual assessment for 2014 and establish a time and place for a public hearing to be held by the City Council on January 7, 2014 to hear and consider all protests. COMMUNITY REDEVELOPMENT AND HOUSING COMMISSION RECOMMENDATION At its regular meeting on December 3, 2013, by a vote 5:0 (Bist, Morfin absent), the Community Redevelopment and Housing Commission: 1) found that the 2014 Downtown Santa Ana Business Improvement District Assessment Report complies with the California Streets and Highways Code §36533; and 2) directed that the Interim Executive Director of the Community Development Agency file the 2014 Downtown Santa Ana Business Improvement District Assessment Report with the Clerk of the Council for City Council approval or modification. DISCUSSION Background On February 6, 1984, the City Council adopted Ordinance No. NS -1715 pursuant to state law, creating a Business Improvement District (BID) in Downtown Santa Ana. The BID was established as a means of providing the Downtown business community with the funding to promote events and advertising pieces, increase the security presence, enhance maintenance of the downtown shopping corridors, and implement street improvements to the area. The BID is funded through an additional charge on the business license tax for those businesses within the BID boundary (Exhibit 1). 12A -1 2014 BID Intent to Levy December 16, 2013 Page 2 In 2008, the City Council approved the establishment of the Downtown Santa Ana Community Management District (commonly referred to as the PBID) and put the BID in suspension. The PBID resulted in a levy on property owners rather than businesses. On February 4, 2013, the City Council adopted Ordinance No. NS -2842 repealing Article XX of Chapter 13 of the Santa Ana Municipal Code disestablishing the Downtown Community Management District. With the disestablishment of the PBID, several downtown merchants and property owners expressed an interest in reactivating the BID to receive funding to promote the safety, maintenance, and overall economic stability of the Downtown. At its meeting on July 1, 2013, the City Council reactivated the BID and levied the assessment for 2013. To administer the activities of the BID, the City executed operating agreements with Downtown Inc. and the Santa Ana Business Council. These agreements contained provisions to ensure proper administration and distribution of the funds. Provisions are included for items such as the annual budget, financial record keeping, fund distribution, and board composition and meeting requirements. Given that this is the first year of the reactivation of the BID and both organizations have already begun incurring expenses for budgeted events, the Agreement provided for $20,000 in upfront funding to each organization for this first year only, subject to subsequent receipt of verifiable invoices and /or receipts. As of November 1, 2013, the City has received $190,000 total in BID funds from the 2013 assessment period. Each group has roughly $95,000 to expend on the remaining 2013 activities and carryover into the 2014 assessment year. Staff has advised the two business associations to conservatively estimate their 2014 budgets at $100,000 each. 2014 Assessment Since the BID was reactivated so late in 2013, the process for 2014 must now begin in order to allow the 2014 assessment levy to be incorporated into the business license bills and proceed on normal billing cycles. The 2014 Assessment Report contains the basis and method of levying the assessment, estimated budgets from the two business associations for providing special events and other promotional activities in the upcoming year, and a map of the BID boundaries. The Assessment Report presented for consideration and recommended for approval has been reviewed by the City Attorney's Office and determined to meet state law requirements. After approval of the report, the next course of action is to conduct a public hearing, which is scheduled for January 7, 2014. FISCAL IMPACT If the recommended action item is approved, there is no direct fiscal impact associated with this action. The City serves as a pass through for BID revenue in accordance with the Assessment Report and any approved operating agreements. 12A -2 2014 BID Intent to Levy December 16, 2013 Page 3 t'V i, r 4�c, . yfin i ancy Fj6ng, AICP U Interim Executive Director Community Development Agency NF /MM /kg Exhibit: 1. Assessment Report 2. Resolution 12A -3 12A -4 EXHIBIT 1 DOWNTOWN SANTA ANA BUSINESS IMPROVEMENT DISTRICT 2014 ASSESSMENT REPORT Background 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). 2014 Budget Plan Based on the feedback from the two Associations, the 2014 BID Budget focuses 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 assessments from the 2014 BID are estimated at $200,000 to be split evenly by Downtown Inc. and the Santa Ana Business Council Inc. Page 1 of 6 12A -5 -- the two business groups that have spearheaded this BID process. Due to the delayed start of the 2013 BID assessment, both associations will have carryover funding from the previous year estimated to be at $95,000 each. This carryover has been incorporated into a reserve fund for their 2014 budgets. This reserve funding may be used for additional events and promotions throughout the 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: Downtown Inc. Sound Downtown /Restaurant Week Artwalks (12x) OC Pride Day of the Dead Patchwork (2x) Downtown Santa Ana Film Festival OC Fashion Week Santa Ana Business Council Business Fair Quinceanera Expo Mother's Day Celebration 4th of July Event Art Fair Film Festival Octoberfest Noche de Altares Plaza Navidena 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 12A -6 ATTACHMENT A 7777777777777r- FLOWER ST. 55 > z J* ❑ 0 0 > :3 m (D 0 ROSS ST, Ln Ell 3 BI -H 5 F. 0 < I BIRCH ST. rD 3 F-1 T BROAD WAY F � ❑ V) SYCAMORE ST, SYCAMORE H.-[ H F ❑ F LMAIN ST. F1 ❑ F El D F F1 BUSH ST. F-1 ❑ F-1 El ❑ C SR �PAE$5 El 0 F SPURGEON ST. r. > ORANGE [--�--`�� z FRENCH ST. ❑ HMORTIMJR5L, 77 F-D 12A-7 ATTACHMENT B 2014 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 12A -8 ►' I A K143 :LTJI =1 ilrire] DOWNTOWN BUSINESS IMPROVEMENT DISTRICT PROPOSED BUDGETS SUMMARY 2014 19124 9-A IllaRX01 M 101 REVENUE BID Assessments — current Prior Year Carry Forward Total Revenue Downtown Inc, ADMINISTRATION Overhead (Supplies, insurance, misc) MARKETING Special Events Sound Downtown /Restaurant Week Artwalks (12x) OC Pride Day of the Dead Patchwork (2x) Downtown Santa Ana Film Festival OC Fashion Week Total Advertising (Print/Online) OTHER PROGRAMMING Restaurant Association Artist Retention Program Misc. Reserve Total 12A -9 $200,000 $190,000 $390,000 ,,. $10,000 $12,000 $5,000 $5,000 $10,000 $5,000 $5,000 $52,000 $27,000 $5,000 $5,000 $5,000 $95,000 $195,000 Page 5 of 6 Santa Ana Business Council Inc. ADMINISTRATION Overhead (Supplies, insurance, misc) MARKETING Special Events Business Fair Quinceanera Expo Mother's Day Celebration 4th of July Event Art Fair Film Festival Octoberfest Noche de Altares Plaza Navidena Total Advertising (Print/Online) Newsletters Website & Social Media OTHER PROGRAMMING Reserve Total Total Expenditures 12A -10 $11,000 $2,000 $3,000 $8,000 $3,000 $2,000 $2,000 $2,000 $3,000 $2,500 $27,500 $30,000 $8,750 $8,750 $14,000 $95,000 $195,000 $390,000 Page 6 of 6 Exhibi4Z (jxs 12- 04 -13) RESOLUTION NO. 2013- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA DECLARING ITS INTENTION TO LEVY AN ASSESSMENT FOR THE DOWNTOWN SANTA ANA BUSINESS IMPROVEMENT AREA FOR THE YEAR 2014 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. By Ordinance No. NS -1715, adopted February 6, 1984, the City Council of the City of Santa Ana established the Downtown Santa Ana Business Improvement Area pursuant to sections 36500 et seq. of the California Streets and Highways Code; and B. As provided in Ordinance No. NS -1715, the City Council is authorized to levy an assessment in the following amounts for the improvements and activities of the Downtown Santa Ana Business Improvement Area: (a) For amusement services, pawnbrokers, service stations, retail sales of goods, hotels, motels, theaters, food establishments: an assessment in an amount equal to one and one -half (1.5) the annual business license fee. (b) For commercial and residential rental property: an assessment in an amount equal to one -fourth (0.25) the annual business license fee. (c) For all other businesses: an assessment in an amount equal to the annual business fee. Section 2. The improvements and activities for which the assessment revenues may be used in the Downtown Santa Ana Business Improvement Area pursuant to Ordinance No. NS -1715 are as follows: (a) Decoration of any public place. (b) Promotion of public events. (c) Furnishing of music in any public place. Resolution No. 2013 -XXX Page 1 of 3 12A -11 (d) The general promotion of business activities. Section 3. The Downtown Santa Ana Business Improvement Area is located as shown on Attachment A, attached hereto and incorporated herein. Section 4. An assessment report is on file with the Clerk of the Council to which reference may be made for a full and detailed description of the improvements and activities to be provided for the year 2014, the boundaries of the area, and the proposed assessments to be levied upon the businesses within the area for the year 2014. Section 5. A public hearing shall be held by the City Council at the City Council Chambers, 22 Civic Center Plaza, Santa Ana, California at its regular meeting of January 7, 2014 at 6:00 p.m. or as soon thereafter as the matter may be heard, for the purpose of determining whether to impose the above said assessment for the year 2014 for the improvements and activities described in the report. Section 6. At the public hearing, written and oral protests may be made in accordance with sections 36524 and 36525 of the California Streets and Highways Code. A protest may be made orally or in writing by any interested person. Any protest pertaining to the regularity or sufficiency of the proceedings shall be in writing and shall clearly set forth the irregularity or defect to which the objection is made. Every written protest shall be filed with the Clerk of the Council at or before the time fixed for the public hearing. Each written protest shall contain a description of the business in which the person subscribing the protest is interested sufficient to identify the business and, if a person subscribing is not shown on the official records of the city as the owner of the business, the protest shall contain or be accompanied by written evidence that the person subscribing is the owner of the business. A written protest which does not comply with this section shall not be counted in determining a majority protest. Section 7. This Resolution shall take effect immediately upon its adoption by the City Council, and the Clerk of the Council shall attest to and certify the vote adopting this Resolution. ADOPTED this day of 12013. Resolution No. 2013 -XXX Page 2 of 3 Miguel A. Pulido Mayor 12A -12 (jxs 12- 04 -13) APPROVED AS TO FORM: Sonia R. Carvalho, City Attorney 0 AYES: Councilmembers NOES: Councilmembers ABSTAIN: Councilmembers NOT PRESENT: Councilmembers Jose Sandoval Chief Assistant City Attorney CERTIFICATE OF ATTESTATION AND ORIGINALITY I, MARIA D. HUIZAR, Clerk of the Council, do hereby attest to and certify the attached Resolution No. 2013 -XXX to be the original resolution adopted by the City Council of the City of Santa Ana on Date: Clerk of the Council City of Santa Ana ADOPTED this day of December, 2013. Resolution No. 2013 -XXX Page 3 of 3 12A -13 F- «MI'iITI -MV_1 FLOWER ST. n Z+ Q y y P g� O E ILA �s 5• rD ILA ILA ROSS ST. i n 3 L� n V BIR H 5 r. -S N 0 C BIRCH ST. rD BROAD WAY ❑Q� F-1 V% SYCAMORE Sl'. SYCAMORE 5T. H-El MAIN ST. BUSH ST. —1 F-1 F-1 El F-1 El CvPkE55 W© O � SRURGEON ST. n ❑ ❑ ��a p ORANGE FRENCH S'I'. /\ 12A -14