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Home My WebLink About19D - DOWNTOWN SA BUSINESS DIST REQUEST FOR COUNCIL ACTION ~ ~ CITY COUNCIL MEETING DATE: CLERK OF COUNCIL USE ONLY: DECEMBER 20, 2004 TITLE: .yv UA;a CITY MANAGER APPROVED o As Recommended o As Amended o Ordinance on 1 sl Reading o Ordinance on 2nd Reading o Implementing Resolution o Set Public Hearing For DOWNTOWN SANTA ANA BUSINESS IMPROVEMENT DISTRICT 2004 ANNUAL REPORT AND 2005 BUDGET CONTINUED TO FILE NUMBER RECOMMENDED ACTION 1. Approve the 2004 Annual Report and the 2005 Budget for the Downtown Santa Ana Business Improvement District. 2. Adopt a resolution of intention to levy an annual assessment for calendar year 2005 and establish a time and place for a public hearing to be held by the City Council on January 18, 2005. COMMUNITY REDEVELOPMENT AND HOUSING COMMISSION RECOMMENDATION 1. Found that the 2004-2005 Downtown Santa Ana Business Improvement District Annual Report complies with the California Streets and Highways Code and approved the 2004-2005 Annual Report. 2. Directed the Executive Director of the Community Development Agency to file a 2004-2005 Annual Report with the City Clerk for City Council approval or modification. By a vote of 4:0:3 (Bustamante, Macres, Sarmiento recused) at its Regular Meeting of November 16, 2004. DISCUSSION On February 6, 1984, the City Council adopted Ordinance No. NS-1715 pursuant to Section 36000 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 190-1 Downtown Santa Ana Business Improvement District 2004 Annual Report and 2005 Budget December 20, 2004 Page 2 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). In order to comply with State law, the City Council must approve the annual report and budget as well as conduct a public hearing prior to levying the annual assessment. The 2004 Annual Report, prepared by the BID Ad Hoc Committee of the CRHC, contains proposed changes to the basis and method of levying the assessment, an estimated cost of providing the improvements and activities, the improvements and activities to be provided, the amount of surplus revenue carried over, and the amount of contribution from other sources other than the assessment (Exhibit 1). In developing a budget for 2005, the CRHC conducted extensive outreach to the Downtown business community, which included two community forums that were held on August 17, 2004 and October 12, 2004. Each community forum was designed to gain an understanding of the general issues affecting Downtown businesses and to allow businesses to provide feedback on potential budgetary scenarios. Based on this feedback, the BID Ad Hoc Committee is proposing a budget for 2005 that focuses on two key areas: 1) consulting services to generate information from a broader cross section of business owners in the Downtown area in order to make a decision on whether to keep and revamp the BID or to recommend its dissolution, and 2) maintenance services to provide clean streets in the BID area (Attachment C). The estimated cost of these services is $135,000. FJ:SCAL :IMPACT is no fiscal impact associated with this action, as the City transfers the BID revenue for use in the District in accordance budget. P tricia C. Whitaker Executive Director Community Development Agency PCW/KLA/kla H:Actioos\2004CC\DTSABID2004AnnRep&200SBdgt-12-20-04 190-2 DOWNTOWN SANTA ANA BUSINESS IMPROVEMENT DISTRICT 2004 ANNUAL REPORT DECEMBER 20. 2004 PREPARED By: COMMUNITY REDEVELOPMENT AND HOUSING COMMISSION EXHmIT 1 190-3 2004 ANNUAL REPORT FOR THE DOWNTOWN SANTA ANA BUSINESS IMPROVEMENT DISTRICT Background The Downtown Santa Ana Business Improvement District (BID) was established in February 1984 by the Santa Ana City Council. The Community Redevelopment and Housing Commission (CRHC) of the City of Santa Ana, as the BID Advisory Board, is responsible for the preparation and administration of the BID's budget and annual report, its promotional calendar, marketing and public relations programs, security and maintenance plans, and physical improvement projects. 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 (Attachment A). Assessment Formula For the 2005 budget and assessment, the CRHC is proposing to reduce this year's annual assessment to 25 percent of the formula stated for each business license category in the original 1984 ordinance (Attachment B). Summary of Improvements and Activities On October 6, 2003, the Santa Ana City Council appointed the Community Redevelopment and Housing Commission (CRHC) as the Downtown Santa Ana Business Improvement District (BID) Advisory Board. As the BID Advisory Board, the CRHC is responsible for recommending an annual budget by early November 2004 and other policies pertaining to the BID. The CRHC conducted extensive community outreach to develop a BID budget. This included two community forums. The first community forum, held on August 17, 2004, focused on understanding the general issues affecting Downtown businesses. Letters were sent to over 700 businesses in the area, and Commissioners together called, visited or dropped off flyers to 140 randomly selected businesses to invite them to the first community forum. Five general themes emerged from this forum: 1) business/government relations; 2) infrastructure, cleanliness, maintenance; 3) change; 4) Downtown Santa Ana's image; and 5) lack of participation. Two policy options emerged from the initial conversations with business owners and the first community forum. They are: 1) recommend keeping the BID, but substantially revamp the fee assessment, boundaries, activities and governance structures so that the BID functions as a positive tool for Downtown businesses, or 2) recommend dissolving the BID. Rather than make 190-4 a final policy recommendation by early November, the CRHC chose to focus on preparing a budget for 2005 and to focus on the broader policy decisions in early 2005, with additional input. The CRHC held a second community forum on October 12, 2004, to gain feedback on the proposed budget for 2005. Letters were sent to over 700 businesses. Participants gave feedback on three budget scenarios designed to generate discussion on funding options (e.g., fee assessments, unencumbered funds, and capital improvement funds) and expenditures (e.g., administrative, consulting, promotions, marketing, maintenance, and security). 2005 Budget Plan Based on this feedback, the CRHC is proposing a budget for 2005 that focuses on two key areas: 1) consulting services to generate information from a broader cross section of business owners in the Downtown area in order to make a decision on whether to keep and revamp the BID or to recommend its dissolution, and 2) maintenance services that equitably cover all the streets in the BID area (Attachment C). 190-5 ~ c:a: LLI CC c:a: .... :z: LLI :E LLI ::- = CC a.. :E - B :z: - en = a:a c:a: :z: c:a: c:a: .... :z: c:a: en :z: == = I- ~ = Q 2:j~U niDi ..... i .............. IU DO ! D [j a r:rDT~J 0 D D [j IT ~ ODO odd DDD D.OIT< ...............~ D~ . ~ I flPl D IT ~ I~! - ~I IT i I ~7a 10 SSOlI UJ - ~e t.. m~JS -, ( I ~ 1l1MOU I 190-6 Attachment B 2005 ANNUAL ASSESSMENT FORMULA The following businesses located within the boundaries of the Business Improvement District, 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 times 25 percent. 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 times 25 percent. All other businesses, including Professions, Trades and Services within the boundaries of the proposed Business Improvement District, shall pay an amount equal to their annual business license fee times 25 percent. 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. 190-7 Attachment C DOWNTOWN SANTA ANA BUSINESS IMPROVEMENT DISTRICT 2005 BUDGET SUMMARY Operating Revenue BID Assessments - City of Santa Ana Unencumbered Previous BID Assessments Capital Improvement Funds $35,000 $62,000 $38,000 Total Operating Revenue $135,000 Operating Expense BID Consultant Sidewalk Steamcleaning Maintenance Administration $15,000 $110,000 $10,000 Total Operating Expense $135,000 Consultant: We still need to gather information to figure out what to do with the key policy issue of keeping or dissolving the BID. However, we can scale down the type of consultancy. In this case, hire two second-year graduate students ($3,500 each or $7,000). The remaining $8,000 can be used for: (a) mailings, room reservations, incentives and other materials for focus groups, interviews, and surveys ($5,000); and (b) two community forums ($1,500 each or $3,000 total). Maintenance: The Sidewalk Steamcleaning can be a contractural service that is established to provide an evenly distributed level of cleaning based upon the number of blocks within the BID. Cleanliness is a type of promotional activity since it creates a pleasant image for Downtown customers. 190-8 RESOLUTION NO. 2004-093 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 2004-2005 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS FOLLOWS: 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, 1989, 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. Since the adoption of said ordinance, the City Council has levied 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. 2. The City Council presently intends to REDUCE said assessment to 25 percent of the formula stated for each business license category in the original 1984 ordinance during the year 2004-2005. 3. 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. 190-9 (b) Promotion of public events. (c) Furnishing of music in any public place. (d) The general promotion of business activities. 4. The Downtown Santa Ana Business Improvement Area is located as shown on Attachment A, attached hereto and incorporated herein. 5. A 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 2004-2005, the boundaries of the area, and the proposed assessments to be levied upon the businesses within the area for the year 2004-2005. 6. 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 17, 2004 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 2004-2005 for the improvements and activities described in the report. 7. 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. The City Council shall hear and consider all protests against the fumishing of specified types of improvements or activities within the Downtown Santa Ana Business Improvement Area. 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. 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. Section 3. 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 ,2004. 190-10 AYES: Councilmembers NOES: Council members ABSTAIN: Councilmembers NOT PRESENT: Councilmembers Miguel A. Pulido Mayor APPROVED AS TO FORM: Joseph W. Fletcher, City Attorney By: Michael Vigliotta Deputy City Attorney CERTIFICATE OF ATTESTATION AND ORIGINALITY I, PATRICIA E. HEALY, Clerk of the Council, do hereby attest to and certify the attached Resolution No. 2004-093 to be the original resolution adopted by the City Council of the City of Santa Ana on Date: ADOPTED this Clerk of the Council City of Santa Ana day of January, 2004. 190-11 190-12 fJv1 S & A Properties 129 W. Wilson Street, Suite 100 Costa Mesa, CA. 92627 949-722-7400 949-722-8855 Fax December 9, 2004 Miguel A. Pulido, Mayor City of Santa Ana 20 Civic Center Plaza Post Office Box 1988 Santa Ana, CA. 92702 RE: Fiesta Marketplace, Santa Ana, CA. Dear Miguel: It is our understanding that on December 20, 2004, the City Council will consider a recommendation from the Citys' Community Redevelopment and Housing Commission ("Commission") regarding a modification of the Downtown Santa Ana business Association ("DSABA") improvement tax. Specifically, the Commission will recommend that the City Council set the improvement tax amount at twenty-five (25%) percent of the former improvement tax amount. At this time, the Fiesta Marketplace Partners would ask that the City Council not act upon any Commission recommendation regarding DSABA or the improvement tax other than an extension of the existing improvement tax collection moratorium. Additionally, we would ask that the City Council direct the City Staff to assist Downtown's various special interest groups in the formation of associations (''BID'') to serve their specific needs. The Fiesta Marketplace Partners strongly support the formation of special interest BIDs. At this time, we envision two BIDs being created in Downtown. One entity would be made up of Fourth Street businesses ("Fourth Street BID") which we would suggest include all Fourth Street business licensees from Mortimer Street on the east to Broadway on the west and any geographically contiguous business licensees who elect to join the Fourth Street BID. The other entity would be made-up of businesses located in and around the Artist Village area ("Artist Village and Restaurant BID"). We would suggest that the Artist Village and Restaurant BID include Fourth Street from Ross Street on the west to Broadway on the east, all Artist Village streets and any geographically contiguous business licensee who elects to join the Artist Village and Restaurant BID. 190-13 We envision that these two entities, with more special interest entities to be added when identified, would coordinate and cooperate with each other, for the betterment of the entire Downtown. We see the City being a very important partner in the creation, operation and advisement of the special interest BIDs. The Fiesta Marketplace Partners is very desirous of working with the City or anyone else who has as their goal the resolution of the on-gong dispute that has prevented the execution of an all year around Fourth Street advertising and promotions program. It is incumbent upon all interested parties to work as quickly as possible to create and implement the operation of the Fourth Street BID and Artist Village and Restaurant BID. Thank: you for your consideration of our comments. Irving M. Chase, General Partner cc: Fiesta Marketplace Promotion Fund City Council Members David Ream, City Manager City Clerk Patricia Whitaker, Executive Director Matthew Lamb, Downtown Development Manager 190-14