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HomeMy WebLinkAbout19E - DTSA BID METRICSCITY COUNCIL MEETING DATE: DECEMBER 20, 2016 TITLE: DOWNTOWN SANTA ANA BUSINESS IMPROVEMENT DISTRICT METRICS (STRATEGIC PLAN NO. 3,4) CITY WINAGER RECOMMENDED ACTION Receive and file. DISCUSSION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on tat Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO F9I NIIl1iTATI Downtown Development continues to be a top priority for the City. In recent years, downtown Santa Ana has experienced increased investment activity, an increase in property values, and an overall increase in the number of businesses included within the Downtown Business Improvement Distrcit (BID). The Downtown BID, created in 1984, 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 attached memo (Exhibit 1) provides a summary of the performance metrics for the Downtown BID. 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). FISCAL IMPACT There is no direct fiscal impact associated with this item. Robert`C." Corte2 Deputy City Manager City Manager's Office Exhibit: 1. Memo on Downtown BID Metrics 19E-1 19E-2 MEMORANDUM To: Mayor and City Council Date: November 29, 2016 From: David Cavazos, City Manager Subject: DOWNTOWN SANTA ANA BUSINESS IMPROVEMENT DISTRICT (BID) METRICS This memo provides a summary of the performance metrics for the Downtown BID. BACKGROUND BID ADMINISTRATION To administer the activities of the Downtown Business Improvement District (BID), the City executed operating agreements with Downtown Inc. (DTI) and the Santa Ana Business Council (SABC) in 2013. The Agreements are renewed automatically in one-year renewal terms, unless either party gives at least two months' notice of termination, or if the BID is not approved in any given year. BID FUNDS The BID is funded through an additional charge on the business license tax for those businesses within the BID boundary. The City collects the BID revenue from businesses within the BID boundary and distributes funding to each of the two BID organizations, in accordance with approved operating agreements. The organizations submit invoices and receipts for reimbursement to the City on a rolling basis. DTI and SABC each receive approximately $100,000 per calendar year from the additional business levy assessment. PERFORMANCE METRICS REAL ESTATE INDICATORS Vacancy Rate (Retail and Office) The downtown vacancy rate for retail and office space is 6.9%. This represents a decrease from a peak vacancy rate of 11.8% in February 2013. Mic aucy Rate 12% 11% 10% % 8% 7% 6% 5%1 2012 2013 2014 2015 2016 Source: Costar 2616 Building Permits Issued (and project valuation) A total of 42 building permits were issued for downtown from July 1, 2015 to June 30, 2016. The total valuation of this permitted work was $4,985,540. In the previous twelve-month period, 89 building permits were issued. The total valuation of this permitted work was $789,052. BUSINESS INDICATORS Total Business Licenses According to business license data, there are a total of 720 active businesses in downtown as of November 2016. This is compared to a total of 702 active businesses in downtown in December 2015. This represents an increase of 2.5% over the last year. Sales Taxes Local sales taxes generated by downtown businesses increased 51 % from 2010 to 2015. Complete data is not yet available for 2016. BID PROGRAMS Marketing Y DTSA Newsletter reaches 1,850 readers each week (16% increase in 2016) 19E-4 2015 2014 2013 2012 2011 2010 Sales tax revenues (USD) 1,147,965 1,024,437 1,002,562 999,515 861,045 761,864 % Increase from previous year 12% 2% 0% 16% 13% n/a % Increase since 2010 51% 34% 32% 31% 13% n/a BID PROGRAMS Marketing Y DTSA Newsletter reaches 1,850 readers each week (16% increase in 2016) 19E-4 • DTI website averages 5,000 visitors per month (5% increase in 2016) • SABC website averages 1,650 visitors per month (website launched in March 2016) • Shop Small Santa Ana Campaign included special deals from 50+ local businesses (New program in 2016) • SABC distributed 7,500 printed flyers per month in 2016, advertising downtown businesses, Sidewalk Sales, DTSA Farmers Market, Sunday Matinees, and Art Walk Social Media • DTI Facebook page: 27,995 likes; SABC Facebook page: 1,790 likes o City of Santa Ana: 6,553 likes; SAUSD: 4,725 likes • DTI Instagram account: 16,500+ followers; 8,000+ posts promoting local businesses • SABC "Flash Mob" Campaign videos generated 38,000+ views (New program in 2016) Special Events • BID -Sponsored events attracted more than 70,000 visitors to downtown in 2016 o First Saturday Art Walk o Santa Ana Media Summit (New event in 2016) o Savor Santa Ana o Santa Ana Street Breakfast (New event in 2016) o SAUSD School of Choice Fair o Arts Roundtables (New event in 2016) Weekly Entertainment • SABC's Sunday Matinees at the Frida Cinema attracts an average of 35 visitors to downtown each weekend (New program in 2016) • SABC sponsored 300+ hours of live musical entertainment in 2016 • SABC sponsored 500+ hours of clown entertainment (balloon figures and face painting) in 2016 • SABC generated $251,563.00 in in-kind donations in 2016, according to the BID organization's own calculations 19E-5 19E-6