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HomeMy WebLinkAbout12A - NOTICE OF PH 2016 DT BIDREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: CLERK OF COUNCIL USE ONLY: NOVEMBER 17, 2015 TITLE: APPROVED DOWNTOWN SANTA ANA BUSINESS ❑ As Recommended IMPROVEMENT DISTRICT— INTENT TO ❑ As Amended 1771 Ordinance on 1" Reading LEVY ASSESSMENT FOR 2016 Ordinance (STRATEGIC PLAN NO. 3, 4F) implementing Resolution [I implementing o ❑ Set Public Hearing For CONTINUED TO FILE NUMBER CITY MANAGE RECOMMENDED ACTION Approve the 2016 Assessment Report for the Downtown Santa Ana Business Improvement District, which is administered by two organizations, the Santa Ana Business Council and Downtown Incorporated. 2. Adopt a resolution of intention to levy an annual business license tax assessment for the 2016 calendar year and establish a time and place for a public hearing to be held by the City Council on December 15, 2015 to hear and consider all protests. COMMUNITY REDEVELOPMENT AND HOUSING COMMISSION RECOMMENDATION At a special meeting on November 10, 2015, by a 4:0 (Leon abstained) vote, the Community Redevelopment and Housing Commission: 1) found that the 2016 Downtown Santa Ana Business Improvement District Assessment Report complies with the California Streets and Highways Code §36533; and 2) recommended that the Executive Director of the Community Development Agency file the 2016 Downtown Santa Ana Business Improvement District Assessment Report with the Clerk of the Council for City Council approval or modification, The 2016 Assessment Report contains the basis and method of levying the assessment, estimated activities and budgets from the two business associations, the Santa Ana Business Council and Downtown Inc., and a map of the Business Improvement District (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 on the 2016 BID levy to be held on December 15, 2015. 12A -1 Downtown Santa Ana BID Intent to Levy Assessment for 2016 November 17, 2015 Page 2 Terms On July 1, 2013, the City Council activated the current BID and the City executed operating agreements with Downtown Inc. and Santa Ana Business Council to administer the activities of the BID, These agreements contain provisions to ensure proper administration and distribution of funds; provisions are included for Items such as the annual budget, financial record keeping, fund distribution, and board composition and meeting requirements. The terms of these Operating ,Agreements commenced on September 17, 2013 and will terminate on September 17, 2016, unless terminated sooner due to any violations of the provisions in the agreements, or If the BID Is not approved in any given year, The agreements are renewed automatically in one year renewal terms, unless either party gives at least two months notice of termination. Each organization receives roughly $100,000 (collected from the business license tax fee) per calendar year (January through December) and may carry over unspent funds into the next year. Downtown Inc. will carry over a reserve of approximately $30,000 into 2016. The Santa Ana Business Council will carry over a reserve of approximately $100,000 into 2016. Both of these numbers are estimates as of October 1, 2015. If the BID is successfully renewed, each organization will receive an additional allocation of roughly $100,000 each in January 2016. Business Improvement District LBLW Baokoround 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 create promotional materials, increase the security presence, enhance maintenance of the downtown shopping corridors, and implement streetscape 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). In 2008, the City Council approved the establishment of the Downtown Santa Ana Community Management District (commonly referred to as the PBID) and puff 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 thereby 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. The City Council activated the current BID on July 1, 2013 and approved the operating agreements for the two associations administering the BID on September 17, 2013, 12A -2 Downtown Santa Ana BID Intent to Levy Assessment for 2015 November 17, 2015 Page 3 STRATEGIC PLAN ALIGNMENT Approval of this Item allows the City to meet Goal #3 (Economic Development), Objective 4 (Continue to pursue objectives that shape downtown Santa Ana into a thriving, culturally diverse, shopping, dining, and entertainment destination), Strategy F (Partner with downtown business and merchant associations to program events that showcase restaurants, shopping and entertainment venues). FISCAL IMPACT There Is no direct fiscal impact associated with this action. The City collects the BID revenue from businesses within the BID boundary and distributes funding to each organization in accordance with the approved Operating Agreements, l3aypffi➢ Exhibit: 1. Bid Boundary 2. Assessment Report 3. Resolution 12A -3 12A -4 Exhibit 1 BUSINESS IMPROVEMENT DISTRICT BOUNDARY FLOWER ST. Y I D ❑ ❑ F Z y D O D Z+ D 0) N W @@ O ^=$ I co W c W. R (A R055 ST. M E 4 3 BI CM 5 T. � " o O/ 1 BIRCH ST. (Ds ((DD ❑ z �QBROAD WAY A/ E SYCAMORE o ST. ~ ❑ SYCAMORE ST. r'F 1:1,E] MAIN 5T El El ❑ El El El F-1 BUSH 5T. arncss � ❑ ❑ E E El w 0 0 ° El SPURGEON ST. OPANGE ❑ l>-��, -Vi F Flr I 5F FRENCH ST. MORTIMfR ST. 12A -5 12A -6 EXHIBIT 2 DOWNTOWN SANTA ANA BUSINESS IMPROVEMENT DISTRICT 2016 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 600 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). 2016 Budaet Plan Based on the feedback from the two Associations, Downtown Inc. and the Santa Ana Business Council Inc., the 2016 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 2016 BID are estimated at $200,000 to be split evenly by Downtown Inc. and the Santa Ana Business Council —the two business groups that have spearheaded this BID process. Any remaining funds from the previous year (currently estimated at $130,000 total) will be incorporated into a reserve fund for the groups' 2016 budgets. This reserve funding may be used for 12A -7 additional events and promotions throughout the year. In 2016, the two representative business associations are proposing to host and /or sponsor a variety of community events and promotions, including: Art Walk (12x) Patchwork Savor Santa Ana Fiestas Patrias Parade Noches de Altares OC Film Fiesta Weekly live music on Calle Cuatro Weekend matinees Other programming for the associations will include ongoing social media marketing, funding for the Downtown Restaurant Association, holiday promotions, website development and maintenance, and financial support for the Anaheim Regional Transit (ART) Disney Circulator which connects downtown Santa Ana to Disneyland and other regional destinations. 12A -8 ATTACHMENT A BUSINESS IMPROVEMENT DISTRICT BOUNDARY 1 1 1:11:10 El El El 12A -9 97 Z* LA y�a rD tl1 4J "^4 8 S: rD 3 rD OM)AD WAY {� 1J n � V3 SYCAMORE MAIN ST 8U5H ST Q .uvxv 1 1 1:11:10 El El El 12A -9 ATTACHMENT B 2016 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. 12A -10 ATTACHMENT C DOWNTOWN BUSINESS IMPROVEMENT DISTRICT PROPOSED BUDGETS SUMMARY 2016 OPERATING FUND REVENUE 2016 BID Assessments — Projected $200,000 Prior Year Carry Forward (Estimated) $130,000 Total Revenue $330,000 EXPENDITURES Downtown Inc. (DTI) ADMINISTRATION Administrative (Office Supplies, Insurance, Professional Services) $14,000 EVENTS Art walk $12,000 Programming $8,000 Stakeholder Partnerships $8,000 Meetings $1,000 Events Total $29,000 MARKETING Consultant $36,000 Restaurant Association $5,000 Website /Social Media $5,000 Advertising /Printing /Signage $9,000 Assoc. Memberships/Training $2,000 Marketing Total $57,000 DTI — TOTAL EXPENDITURES (2016) $100,000 12A -11 Santa Ana Business Council (SABC) ADMINISTRATION Overhead (Office Supplies, Insurance, Professional Services) $10,000 Advertising/Website /Social Media /Consultant /Advocate Graphic designer /Social Media Specialists $18,200 Consultant/Advocate $15,600 Promotions $5,000 (Facebook, postcards, posters, banners, flyers, stationary, distribution) Advertising Total $38,800 MARKETING Serenade on the Streets Program $72,000 Rondalla — Every Saturday Jarochos — Every Sunday Clowns —Every weekend (16 hours) Special Events (Sponsorships) Fiestas Patrias Noches de A/tares OC Film Fiesta United Artist Coalition of Santa Ana Christmas Toy giveaway Other Event Sponsorship Total $7,850 OTHER PROGRAMMING Transportation — ART Disney Circulator $6,000 Matinees (weekly) $13,000 Dancing on the Streets Program $15,000 Conference, Seminar & Trip Expenditures $5,000 SABC — TOTAL EXPENDITURES (2016) $167,650 TOTAL BID EXPENDITURES (2016) $267,650 2017 Carry Over (Estimated) $62,350 12A -12 RQH — 11/17/15 RESOLUTION NO. 2015- 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 DISTRICT FOR THE YEAR 2016 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 District pursuant to Ordinance No. NS -1715 are as follows: (a) Decoration of any public place. (b) Promotion of public events. Exhibit 3 Resolution No. 2015 -XXX Page 1 of 3 12A -13 (c) Furnishing of music in any public place. (d) The general promotion of business activities, Section 3. The Downtown Santa Ana Business Improvement District 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 2016, the boundaries of the area, and the proposed assessments to be levied upon the businesses within the area for the year 2016. 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 December 15, 2015, at 5;45 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 2016 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. Resolution No. 2015 -XXX Page 2 of 3 12A -14 ADOPTED this --- p day of 2015. Miguel A. Pulido Mayor APPROVED AS TO FORM: Sonia R.,,arval4p, City Attorney m Assi AYES: Councilmembers NOES: Councilmembers ABSTAIN: Councilmembers NOT PRESENT: Councilmembers CERTIFICATE OF ATTESTATION AND ORIGINALITY I, MARIA D. HUIZAR, Clerk of the Council, do hereby attest to and certify the attached Resolution No. 2015 -XXX to be the original resolution adopted by the City Council of the City of Santa Ana on IM Clerk of the Council City of Santa Ana 12A -15 Resolution No. 2015 -XXX Page 3 of 3 O ATTACHMENT A BUSINESS IMPROVEMENT DISTRICT BOUNDARY ST, MAIN ST. BUSH ST, F1 El Lm ROSS ST, BIRCH ST. 0 ST, SYCAMORE ST, Ll -1 1 El E F F E F-1 El E 0 El DI i E SPUR6EON El 12A -16 i L ST.