HomeMy WebLinkAbout25B - DOWNTOWN SANTA ANA CMD AND BID ANNUAL REPORTSREQUEST FOR
COUNCIL ACTION
CITY COUNCIL MEETING DATE:
AUGUST 16, 2010
TITLE:
DOWNTOWN SANTA ANA COMMUNITY
MANAGEMENT DISTRICT AND BUSINESS
IMPROVEMENT DISTRICT ANNUAL
REPORTS AND AGREEMENT WITH
DOWNTOWN INC.
CITY MANAGER
RECOMMENDED ACTION
CLERK OF COUNCIL USE ONLY:
APPROVED
? As Recommended
? As Amended
? Ordinance on Vt Reading
? Ordinance on 2nd Reading
? Implementing Resolution
? Set Public Hearing For_
CONTINUED TO
FILE NUMBER
Approve the 2010 Downtown Santa Ana Community Management District annual report.
2. Approve the 2010 Downtown Santa Ana Business Improvement District annual report.
3. Direct the City Attorney to prepare and authorize the City Manager and Clerk of the Council to
execute an agreement with Downtown Inc., a non-profit corporation, in the amount of
$1,294.37 to expend the remaining funds towards the "Clean and Safe" Program benefitting
the BID area.
COMMUNITY REDEVELOPMENT AND HOUSING COMMISSION ACTION
At its Regular Meeting of August 3, 2010, by a vote of 5:0, the Community Redevelopment and
Housing Commission recommended that the City Council approve the 2010 Downtown Santa Ana
Business Improvement District annual report and authorize the City Manager to execute an
agreement with Downtown Inc.
DISCUSSION
Community Management District
On December 15, 2008, the City Council adopted a resolution establishing the Downtown Santa
Ana Community Management District (CMD) and the levy of an assessment of the property
owners within the District to fund various activities in the Downtown. The CMD plan provided that
the initial tax assessment be levied in FY 2009-10 and that the operating term of the CMD be
January 1, 2010 to December 31, 2014.
25B-1
CMD and BID Annual Reports and
Agreement with Downtown, Inc.
August 16, 2010
Page 2
The City entered into a management agreement with Downtown Inc. to run the newly created non-
profit organization to oversee the expenditure of the assessments collected during the five-year
term of the CMD. The ordinance establishing the Community Management District and the
management agreement with Downtown Inc. requires the submission of an annual report to the
City Council containing the following information:
1) any changes to the boundaries of the CMD;
2) the improvements and activities to be provided for that upcoming fiscal year;
3) an estimate of the cost of providing the improvements and the activities for that upcoming
fiscal year;
4) the method and basis of levying the assessment;
5) the amount of any surplus or deficit revenues to be carried over from a previous fiscal year;
and
6) the amount of any contributions to be made from sources other than assessments levied.
Downtown Inc. has submitted the 2010 annual report for the Downtown Santa Ana Community
Management District (Exhibit 1).
Business Improvement District
On February 6, 1984, the City Council adopted Ordinance No. NS-1715 pursuant to Section 36500
et seq of the California Streets and Highways Code, creating a Business Improvement District
(BID) in Downtown Santa Ana. The BID allows the businesses to assess themselves in order to
raise funds for the promotion and improvement of the Downtown area. The report includes the
name and boundaries of the BID, the activities and their cost proposed for the coming year, the
method and basis of levying and collecting the assessments, and basic financial information
covering such things as prior year surplus or deficits and non-assessment revenue.
In May of 2009, the City Council approved the 2009 annual report and a Business Improvement
District service agreement for $230,000 with Downtown Inc. to facilitate the utilization of carry
forward 2007/2008 BID funds to be programmed for marketing, promotion and other activities of
benefit to the Downtown Santa Ana Business Improvement District. The 2010 annual report
highlights the activities which have been undertaken with the carry forward BID funds from April
2009 through June 2010 (Exhibit 2). At the August 3, 2010, Community Redevelopment and
Housing Commission meeting, the Commission reviewed the annual report in the capacity of BID
Advisory Board.
25B-2
CMD and BID Annual Reports and
Agreement with Downtown, Inc.
August 16, 2010
Page 3
Downtown Inc., as the community-based organization for downtown, acted as the contract agency
for the BID funds. As of June 30, 2010, a total of $1294.37 of BID funds remain unexpended. A
total of $727.97 is held in the City Trust Account and $566.40 is held by Downtown Inc. Downtown
Inc. will expend the remaining funds towards the "Clean and Safe" Program, and a contract
amendment is needed to allow for its expenditure..
FISCAL IMPACT
Funds are available in the Downtown Business Improvement District Trust & Agency Reserve
account (no. 09301001-24000).
APPROVED AS TO FUNDS AND ACCOUNTS:
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CbOL-Cynthia J. e on
Deputy City anager for Development
Services
Community Development Agency
CJN/NTE/TE/mlr
Exhibits: 1. CMD Annual Report
2. BID Annual Report
YT
Francisco Gutierrez ??.r
Executive Director
Finance & Management Services Agency
25B-3
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DOWNTOWN SANTA ANA BUSINESS IMPROVEMENT DISTRICT
2010 ANNUAL REPORT
Background
The Downtown Santa Ana Business Improvement District (BID) was established in
February 1984 by the City Council as a means of providing the Downtown business
community with funding for promoting the area, increasing security, enhancing
maintenance, and implementing physical improvements. The Community
Redevelopment and Housing Commission (CRHC) is the BID Advisory Board.
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.
Method and Basis of Levying Assessments
• 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 volume of the business as
follows:
The following businesses located within the boundaries of the BID, classified under
City Ordinance NO 1690 as Amusement Services, Pawnbrokers, Service Station
and Classification A including, but not limited to, Retail Sale of Goods, Hotels 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 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 BID and a public
hearing held by the City.
• 2010 Assessment Levy
There will be no assessment levied or collected in 2010/2011.
EXHIBIT 2
25B-4
Summary of Activities and Improvements
All programs and activities completed from April 2009 - June 2010 can be classified in
the following broad categories:
"Clean and Safe"
o Supplemental security for weekend nights
o Supplemental maintenance
• Events and Promotions
o Holiday celebrations
o Merchant promotions
o Social celebrations
o Seasonal events
o Arts and music
• Publicity, Advertising, Marketing, and Outreach
o Newsletters
o Website
o Visitor guides/maps
o General advertising
• Physical Amenities
o Holiday decorations
o Bike racks
• Economic Development
o Business assistance
Budget Plan
Downtown Inc. is a new nonprofit corporation composed of downtown stakeholders
dedicated to downtown economic revitalization. They led the successful effort to form a
Community Management District (CMD), and this group has been designated as the
recipient/management organization of the CMD funds. Downtown Inc., as the sole
community-based organization for downtown, acted as the contract agency for the BID
funds. As of June 30, 2010, a total of $1294.37 of BID funds remains unexpended. A
total of $727.97 is held in the City Trust Account and $566.40 is held by Downtown Inc.
as the balance of the May 2009 Service Agreement which terminated on June 30, 2010.
25B-5
Budget Summary
2009/10
April 2009 - June 2010
Approved Actual
Budget Expenditures
REVENUE
Prior year operating surplus $230,000 $230,000
TOTAL REVENUE $230,000 $230,000
EXPENDITURES
Downtown "Clean and Safe" Program $123,000 $87,225.59
Prior Holiday Obligations (Decorations) $13,000 $16,275.17
Prior Obligation/FFE (Bicycle Racks) $5,000 $4,640.30
Promotions and Marketing $89,000 $121,292.54
TOTAL EXPENDITURES $230,000 $229,433.60
2010 Budget
July 2010 - September 30, 2010
REVENUE
Remaining Prior Year Unappropriated BID Funds $727.97
Carryover 09/10 Funds (Downtown, Inc.) $566.40
EXPENDITURES
Downtown "Clean and Safe" Program $1,294.37
25B-6
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2009 - 2010 ANNUAL REPORT
2009 - 2010 ANNUAL REPORT
LEADERSHIP
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Downtown Incorporated began the process to improve the vitality of Downtown Santa Ana with the formation of
the Community Management District and officially opened our doors August 2009. During our formation, the
economy rocked the business world to its roots. Despite the economy and market fluctuations along with changes in
the business environment, we will work to strengthen retail and commercial establishments.
Although challenged by the market, our property owners continue to reinvest in their businesses. Herb Rose with
LaBell Exchange received the coveted Award of Excellence from the Association of TeleServices in a challenging
year for his industry. ROIC acquired the Downtown Plaza and have landscaped, modernized and attracted new
businesses into their heavily trafficked plaza- Mil Jugos will begin an expansion project later this year to
accommodate their increasing popularity. Jugos Acapulco will also be expanding in 2010. City Ventures broke
ground for 16 new live/work units. The YOST Theatre, Fiesta Marketplace and the Spurgeon Building are all in
varying degrees of upgrades and repositioning. Several projects are planned for 2010 that will continue to change
the footprint of downtown.
As we look forward, we will continue to focus on our core functions of public safety, maintenance, advocacy,
marketing and business support and developing programs and services that benefit the downtown.
With all stakeholders working together in partnership, I am confident the successes of Downtown Inc. will continue to
grow in 2010.
Regards,
Bob Stewart.
Board President, Downtown Incorporated
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Downtown Incorporated (DTI) is a private, non-profit organization dedicated to the enhancement and
improvement of Santa Ana's central business district. DTI oversees maintenance, safety and revi-
talization programs financed by the Community Management District, a property assessment district
originally established in 2008 through the legal process to July 2009 as the beginning of operations.
The district is roughly bound by Walnut Street to the South, Mortimer Street to the East, Birch Street
to the North and Flower Street to the West. The 66-block district is located within the central busi-
ness district C-3, C-3 A (Artist Village) zoning area.
Mission Statement
The mission of Downtown Incorporated is to facilitate the enhancement of Downtown Santa Ana as
a vibrant shopping, entertainment, business and cultural destination for all.
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YEAR IN REVIEW
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Dear Downtown Stakeholder,
As our first year comes to a close, we recognize this year has been tough for many downtown stakeholders -
business and property owners, developers and public partners alike. The realities of the new economy have caused
many of us to pause and analyze our priorities and strategies.
While the economy has taken a toll, our commitment to our core fundamentals of public safety, advocacy and
marketing for Downtown has not wavered. Our clean and safe teams patrol the district seven days a week to provide
our stakeholders with public safety and maintenance services. We've also launched our website that includes a
social media presence on Facebook, Twitter and real time blogs, to communicate with our downtown patrons and
connect with our stakeholders. Our staff remains engaged in providing assistance to our community to include:
increased benefits for our Associate Members, co-op advertising and event sponsorship, retail recruitment, expanding
our Art and Entertainment district, advocacy with the City of Santa Ana staff and council, strengthen our partnership
with the Santa Ana Police Department and code enforcement.
If we make good strategic decisions in this down economy, we can maximize opportunities in the next economic cycle.
Downtown Santa Ana is not unlike most large American cities. The 1950's retail environment focused on the
downtown. The advent of the mall in the early seventies brought a mass exodus of core department stores relocating
to large undeveloped areas of the city. Downtown Santa Ana is reinventing itself to accommodate a new market
without alienating our established market.
Earlier this year, Downtown Inc. held a mini retreat with our Board of Directors to embark on an action plan for the
future of the district. We began working with the City of Santa Ana Economic Development, OPIS, Edwardo Figueroa
and Francisco Valle to equip our stakeholders as to trends that would benefit their businesses. All experts believe we
have the basic ingredients for success. We have a strong local market with adequate retail space inventory and a
growing demand for urban experiences. The experts recommend a need for a mix of complementary uses and a
focused approach to improving the retail market
As we look to the year ahead, there are many opportunities on the horizon. We will continue to inform you of our
efforts and we look forward to working with you to create a strong and vibrant Downtown.
Sincerely,
Vicky Baxter
Executive Director Downtown Inc.
Christmas 2009
Public Policy
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While troubled real estate and capital markets and severe local and state government budget deficits
presented many challenges our first year, Downtown Incorporated was actively engaged with policy issues
affecting Downtown and development projects in and adjacent to the district.
Santa Ana Fixed Guideway Project Connecting Garden Grove
The Fixed Guideway will provide faster, more reliable public transportation services and choices for residents and
commuters and greater mobility in Santa Ana. Our Board of Directors is currently researching several alignment or travel
paths in the downtown. The project will encourage more pedestrian-friendly avenues and spur economic development and
jobs. A central city location will generate greater economic benefits for the downtown. Working with City Staff and the
Mayor, Downtown Inc. is researching best practices to make recommendations on the proposal.
Trolley
Although Downtown Inc. is not in the transportation business, we definitely believe that providing a trolley in the downtown
will benefit our restaurants and retail businesses. Working with the City, Downtown Inc. will begin a pilot program in mid-
August to attract people to the downtown. The trolley will initially run from 4:30 PM - 7:30 PM with stops in the downtown to
the train depot. This program will build depending upon its success. The goal is to transition to a "lunch express".
Proiects Advocated
One Broadway Plaza, Jugos Acapulco Expansion, Rehabilitation/Re-positioning of Fiesta Marketplace., YOST Theatre,
Station District, RTKL Wayfinding
Policy Advocated
Dance Ordinance in Arts/Entertainment District, City One-Stop Public Information and Service Center,
Proof Back Door, Limited Free Parking (Structure), Parking Meter Grace Period, 2 hours Vendor Truck Parking
Enforcement
Events Monitored
First Saturday Art Walk, Fiestas Patrias, Cinco de Mayo, Noche de Altares
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(Clean + Safe
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Downtown Incorporated's clean and safe programs support the development of downtown office,
retail and entertainment uses by maintaining a clean and safe environment.
Clean Streets
In August 2009, Downtown Inc. took over the clean streets program from the City of Santa Ana. In January 2010,
DTI contracted with ABLE Building Maintenance, a local Santa Ana Company in business for over 40 years. They
provide litter maintenance and power washing services in the district. The program operates seven days a week.
Pressure washing service is provided between 10:00 PM and 6:00 AM, Tuesday, Thursday and Sunday. A
minimum of three linear blocks is done per day. High traffic areas such as; Main, Broadway and Birch are
pressure washed twice per month. Downtown Inc. responds as needed to areas that need more attention or a call
to service from one of our stakeholders.
Downtown Inc. clean streets team enhances the pedestrian experience by responding to maintenance issues and
providing services, including sweeping and pressure washing alleys and sidewalks, removing street and first floor
level graffiti, litter, collecting leaves and addressing other surface maintenance control issues. In our first year of
service, we have been commended by both consumers and merchants for our diligence and clean downtown.
A recent quote from Al Afghani, Arco Gas Station; "Excellent job, immediately done. Thank you".
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(Clean + Safe
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Safe Streets
Downtown Incorporated is determined to provide a safe atmosphere in our district. American Shield was hired in July, 2009 to
provide ambassador/security services. As the first eyes on the street, Downtown Inc. Security Guides equipped with cell phon
days a week, direct and assist visitors, serve as a communication link and report graffiti. They also support law enforcement
agencies, merchants and property owners in crime prevention efforts. Security Guides walk and bike the district. In 2010, plans
are to purchase an electric utility vehicle clearly marked with our logo and bold letters stating SECURITY to further announce our
presence on the street.
American Shield has built a relationship with our merchants as we believe it is crucial for businesses to feel supported. As this
relationship has grown, there is an overwhelming desire for partnership and cooperation.
Downtown Inc. has made a gigantic effort to have our merchants and property owners report crime. In previous years, merchants
did not understand the necessity to report minor offenses typically resolved by the merchants (petty theft, odd behavior, 51150
conduct, illegal peddlers, drug dealing, homeless trespassing, etc.). Working with SAPD, DTI has informed our community to
"make the call'. All calls are prioritized and recorded. This tracks the criminal activity in downtown and will further assist DTI and
SAPID in providing accurate reporting statistics. Indicators for additional service will depend upon this reporting mechanism.
Nuisance activity and criminal activity are being defined and reported. Identifying "hot spots" or areas of increased service will
make response time less as we work in partnership with American Shield and Santa Ana Police Department.
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Events
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Downtown Santa Ana had many events sponsored by Downtown Inc. in 2009. Two signature events
(Cinco de Mayo and Fiestas Patrias) are not sponsored by DTI at this time.
International Music Festival
This first year event brought culture, music and international cuisine to downtown in partnership with El Centro Cultural de
Mexico, Casa Guanajuato, and Fundacion Yanga Veracruz USA. 50 countries were represented.
Holiday Plays at the YOST Theatre
In conjunction with the YOST Theatre, Teratro Actores de Santa Ana, Louie Olivos, Jr., and Carter Dewberry & Associates,
Downtown Inc. held free matinee plays for children in both Spanish and English during the Christmas Season. The plays
were varied from chamber music and narration to "No Christmas for Smiley" with traditional holiday music and a message
against violence and gangs. All media outlets were used with press releases and a featured story in the 0 C Register.
Downtown Santa Ana - World Cup Headquarters
FIFA World Cup - The Restaurant Association (32 downtown restaurants), joined this effort. Businesses televised the
games to their patrons with early morning and all day rebroadcasts. 13 participating restaurants were listed on the website.
Many businesses participated by contributing prizes from soccer balls to one of a kind soccer rings valued at $350. Media
outlets included: Miniondas, Farandula, 0 C Register, 0 C Weekly, Yahoo web banners, flyers and mailings.
A monthly live music event during summer - Each show featured one-two bands performing live on the Artist Promenade in
the early evening, followed by specialty DJ's and music programming in select venues on North Broadway. This music
series showcased a broad array of musical genres including independent, alternative, acoustic, instrumental, experimental,
surf, pop and jazz.
Block Party - Handmade Brigade
Marketed by DTI, this event brought a diversity of people to purchase handmade products into downtown.
Fiesta Calle Cuatro Concert Series
A diverse series of musical experiences (traditional folkloric and multi-cultural) located along our retail corridor on 4th Street.
The marketing strategy of this entertainment series is to position Downtown Santa Ana as a summer destination and a place
to shop, be entertained, do business and discover arts and culture. By providing different types of musical entertainment and
highlighting different venues in the Downtown, all of the local businesses and areas are promoted with new patrons and
increased foot traffic.
DTI partnered with the Old Orange County Courthouse
A joint effort with the historic Old Courthouse brought families to enjoy a movie and exhibits featuring the California Golden
Bear. Face painting and popcorn were provided by DTI along with a historic trolley tour narrated by historian Tim Rush.
First Saturday Art Walk
In June 2010 the First Saturday Art Walk's governance was taken over by DTI_ Staff became responsible for maintaining
the integrity of the event as well as order. Ten vendors are screened and must fit the criteria to insure quality.
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MARKETING & PROMOTIONS
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Downtown Inc. periodically runs promotions to promote local businesses. Promotions also help
display all of the positive change downtown. Some of the promotions sponsored by Downtown Inc.
are:
Santa Ana Downtown Divas
What began as a networking group of women in business has become a dynamic force for change in the downtown. Forty women
who agree constitute success and these ladies are inviting more ladies to become involved in the community management district
and provide needed feedback on the direction of downtown.
Passport to Downtown
Downtown Inc. was the primary sponsor for Noche de Altaras, a traditional celebration also known as Day of the Dead in November.
DTI participated by having a booth and hosting a "Passport to Downtown Treasure Hunt". Passports were given to participants who
received a DOWNTOWN sticker as they visited our downtown stores. The passport were filled with stickers and turned in for prizes.
To encourage the public to visit both sides of 4th Street, half the stickers were black and half were white and the requirement was to
have both colors to win. Patrons won a full range of prizes purchased at cost from our merchants. Advertising included mail
merges, local newspaper ads as well as e-mail blasts. Attendance to Noche de Altares is a downtown Santa Ana tradition that has
taken place for the last seven years. In 2009 the event brought well over 9,000 attendees. This event is a true crossover event
bringing music, food and culture to an increasingly diverse audience.
Holiday Light Proiection Proiect
In 2009, Downtown Inc. decided to forsake the traditional and explore new avenues of holiday entertainment. Over 10,000 people
braved cold December nights to watch a new concept in light and sound. Animated Light Projection set to music on the historic
Spurgeon building. With an original music score synched to Chris Alfaro's computer and over a quarter of a million dollars in rented
projection equipment, the downtown district gained new favor with both locals and visitors to produce a truly unique 14 day event.
Picked up by both local and L.A. media networks, newcomers enjoyed watching a spectacle of light and sound. Although an illusion,
snow falling and collecting on the window ledge can invoke cold chills even when temperatures are far from freezing.
Cookies with Santa
Downtown Inc. hosted Santa Claus straight from the North Pole on Saturday, December 5th, 12th and 19th from 11:00 AM -100
PM to enjoy cookies and candy canes with kids. Parents were asked to show a receipt for $5.00 or more from any downtown
business and receive a framed picture with Santa ($20.00 Value). 800 pictures were taken with appreciative parents and even
grandparents. Santa was thrilled to hold one of Santa Ana's youngest newcomers (Anna, 21 days old).
Valentine's Day Celebration
Strolling Mariachi bands serenaded shoppers along with volunteers distributing 500 long stemmed red roses marked February 14th.
A featured interview with Teresa from Teresa's Jewelers and the icon of Spanish radio, Teddy Fregoso brought shoppers into the
district to buy their "beloved" a gift. 0 C Weekly and the 0 C Register were also used in media buys.
Mixers
In partnership with our local restaurants and businesses, Downtown Inc. has held a mixer at the historic Santora building and
Original Mike's. Both have brought over 150 people and a chance to meet, greet and network. A chance to get to know one another
on an informal basis, mixers also produce dollars through deals and agreements as businesses "mix" their goods and services and
allow commerce to take place. Downtown Inc. assists in marketing the event via e-mail blast, press release, mailings, and flyers.
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Retail
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The dramatic slowing of the national economy in the housing and financial markets in
combination with a reduction in consumer confidence have contributed to a significant decrease
in overall sales tax revenue over the past year.
Maintaining a diverse mix of retail is essential for an active and dynamic downtown. Restaurants, entertainment, and retailers
draw evening and weekend activity and support the needs of residents, businesses and promote visitors.
There is recognition amongst many of Downtown's retailers and restaurants that they must broaden their customer appeal by
redefining what they sell and how they sell it. DTI is assisting these retailers in their revitalization efforts by partnering with OPIS
Network and Mi Empresa Exitosa to analyze retail conditions and develop a downtown retail activation strategy. Both
organizations have provided workshops for our retail community as they assess their viability in this downturn and reposition
themselves for recovery. Also to further understand the market, DTI will house a seminar conducted by Francisco Valle in the fall.
Several major mixed-use projects are planned for Downtown that will enhance the economic vitality of the area. Two proposals
for Broadway incorporate the historic reuse of the existing building. Chapter One: the modern local, is moving forward along with
The Copper Door. These two neighbors will have a kinship as that "neighborhood" bar with a twist. The twist for Chapter One
is, its affordable gourmet dining. The Cooper Door will introduce Santa Ana to beers of the world with future surprises and
amenities.
In addition, Fiesta Marketplace has proposed a comprehensive re-design that will increase the diversity of retail offerings to
prepare for the influx of residents and visitors into the Downtown area. The redesign will enhance the shopping and pedestrian
experience on the promenade and will help strengthen this traffic-generating corridor toward Main and Broadway. The Yost
Theatre, with seating capacity of 800, will draw top name entertainment and will provide a first class dining experience. A lounge,
located in the property next to the Yost Theatre, will provide entertainment dining and dancing.
Downtown Inc. will work in partnership with the City of Santa Ana to inform our businesses of facade money as it becomes
available. This will further "freshen up" the downtown in anticipation of recovery.
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Physical Enhancements
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The City of Santa Ana's past installation of electrical boxes in the planters on 4t" Street, allowed for
lighting in the trees.
Downtown Inc. covered the cost of trimming the trees and contracted with DekraLight to have lights strung along tree lined
4th Street. The public and the merchants loved the additional lighting and ambiance so much that DTI continues to
maintain them throughout the year. The festive friendly ambiance creates a warm look to the downtown at night and is
welcoming. The LED lights are another joint partnership with the City of Santa Ana and Downtown Inc.
Future considerations include hanging flower baskets from the streetlights and possible flowers in the planters. Our
maintenance team would water and weed the flowers and keep them well groomed. The idea would be to find corporate
partners giving them recognition through a name plaque on the light pole. A utility vehicle would be purchased to hold
water and tools.
The Executive Director sits on the Fagade Committee to better understand the process and availability of funding for
downtown applicants. Several projects were funded in 2009 totaling $500,000. In 2010, DTI will work with the city to
market this program in our district as funds become available.
Downtown Inc. works closely with the City on street lights that are not working or areas that need additional lighting. DTI
has alerted property owners to light requirements resulting in increased lighting in alleys and in areas previously dark-
To better inform our merchants of signage requirements, Downtown Inc. has hosted meetings with code enforcement and
merchants. One of the outcomes has been a brochure from the City outlining details and giving examples of allowed/not
allowed signage.
To encourage bike enthusiasts to shop, dine and play in the district, bike racks were purchased and installed in several
areas in the downtown amounting to over $5,000- One installation was on West 4t" across from the Ronald Reagan
Federal Building and several locations in the Artists Village. Before the cement was dry, bicycles were parked in the racks.
This has alleviated the bikes locked to trees, bollards, benches, signposts or strewed into pedestrian walkways.
VV-WP- -
15
Residential
¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦
Downtown continues to evolve as a vibrant urban destination.
This year, City Ventures will finish their Phase 1 Project with four lofts and four live/work units. The additional units will
fulfill the need for a diverse housing market.
New housing brings vibrant energy to the Downtown District, encourages more businesses to invest in the area and
creates a sense of community. While the national housing market has experienced a tremendous slow down, efforts to
support the development of quality housing projects that activate the central city continues to be a high priority.
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There are four different floor plans that vary from approximately 1,500 square feet to 2,400 square feet. Early buyers will
have the opportunity to create a living environment that suits their lifestyle needs by laying out the rooms. The expected
completion date will be the middle to end of November with prices starting in the mid to high $300s. The live/works will
occupy the first and second floor and the lofts will primarily be on the third floor. City Ventures is working with Wells Fargo
with an interest rate at a 50 year low. This complex located in the Artist Village allows residents a walkable lifestyle in
Downtown Santa Ana.
16
Associate Membership
¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦
A regular member is a property owner in the 66 block Community Management District. All
property owners are encouraged and invited to actively participate in Downtown Inc.
Any other person may apply for Associate Membership in Downtown Incorporated by executing
and filing with the Secretary of Downtown Incorporated an application for membership and making
payment of dues as prescribed from time to time by the Board of Directors. Upon approval by the
Board of Directors, the applicant shall become an Associate Member of Downtown Incorporated.
Benefits of Associate Membership:
Networking opportunities
Local government advocacy
Credibility
Learning opportunities
Discounts
Co-op advertising and website link
Committee participation
DTI's media (bilingual newsletter, flyers and e-mails)
Partnership with other organizations
DTI began to outreach to downtown businesses with three strategies:
(1) Meeting the businesses on a personal level. This consists of visiting every existing business in the
downtown district and making a formal introduction.
(2) DTI staff became aware of who to contact as well as changes of locations. Staff was then able to maintain
an accurate database.
(3) DTI began a snail mail and email campaign to acquaint businesses with DTI. Bi-monthly Merchant
Meetings are held to inform businesses of upcoming events, opportunities, networking, changes in policy in the
district, and exchange ideas.
Businesses were very responsive and recognized the opportunity. A total of 55 businesses have joined in 2009.
Associate Membership continues to grow and will be a focus for 2010.
17
Financials
¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦
Downtown Incorporated manage a budget of almost $1 million.
Downtown Inc. receives its support primarily from property assessments. The management district encompasses 281 parcels
equaling 40,000 linear feet of street frontage, 4.3 million sq. ft. of land and 3.1 million sq. ft. of buildings. DTI's assessment rates
are based on flat Parcel fee +Street frontage fee + Land area fee + Building area fee. Full assessment formula on page 21. Th
district's operating budget allocates 87% of funds to core activities public safety, maintenance, marketing, physical enhancemen
while 13% is allocated to administration. The Board of Directors voted at their July 2010 regular board meeting, no changes to tr
Community Management District boundaries and no increased assessment for 2010111.
2009-2010 FUND ALLOCATION BY DEPARTMENT
$48
¦ Maintenance &
Landscaping
¦ Marketing & Promotions
Ambassador Program
¦ Physical Enhancement
Administration &
Operations
' Roundo(l amounts in thousands
'As of June 30, 2010. Financial Review pending, prepared by ELLS, CPA's..
18
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DEMOGRAPHICS
¦ ¦ . . ¦ . ¦ ¦ . ¦ . ¦ ¦ . ¦ ¦ ¦ ¦ ¦ ¦ . ¦ . . ¦ . ¦ ¦ . . . ¦ . . ¦ . ¦ ¦ . ¦ . . . ¦ ¦ .
Downtown Santa Ana continues to be one of the region's largest employment centers with an
estimated employment population of 26,425 with 2,277 establishments.
Downtown's population in 2009 totaled 70,928 with 13,627 households. Per capita income is $10,649
and the average household income is $47,273. The average Central City citizen is 26.5 years old.
In addition to traditional demographics, industries are
increasingly utilizing psychographics as a tool to target
potential market segments. Psychographics identify
personality characteristics and attitudes that affect a
person's lifestyle and purchasing behavior. In terms of
retail, Santa Ana's trade area psychographic
characteristics are conducive to a prosperous retail
market. Groups such as IN STYLE, OLD and
NEWCOMERS, METRO RENTERS, CONNOISSEURS,
URBAN CHIC and others with a favorable disposition
towards urban retailing have a renewed interest in the
district. Santa Ana has an encouraging new mix of
"urban trendsetters," those who will set the tone for
downtown's retail and restaurant scene, and "followers,"
those that will follow the lead of the trendsetter.
¦ Services
¦ Manufacturing
Administrative
¦ Retail
Construction
¦ Wholesale
¦ Financial
¦ Transportation
¦ Agriculture
20
Source City of Santa Ana Community Development Agency
Assessment Formula:
Street Frontage Fee + Land Area Fee + Building Area Fee + Parcel Fee
1. Single-family residential uses are set at a rate of 10 cents per square foot of building pad, from one to four units are set at a
flat rate of $100 per unit (includes residential condos).
2. Multi-family residential uses of five or more units are set at 25 percent of respective base assessment rates (apartments).
3. Nonprofit- (5010) owned/occupied properties are set at 25 percent of respective base assessment rates.
4. Building areas are capped at a floor area ratio (FAR) of 4.0.
5. Government-owned/occupied properties will not be assessed and will receive no direct services.
6. Residential uses, regardless of the number of units, that are 100 percent project-based rental assistance programs; for
example, senior housing and the like, will not be assessed and will receive no direct services.
7. Mixed-use properties/complexes will generally be assessed based on prorated land-use ratios, using the following guidelines:
Commercial/Office Condos - No Residential Uses (multiple owners)
a. Building area fee at full building area fee rate (structured parking area excluded).
b. Land area fee at full land area fee rate but prorated for each unit based on ratio of unit building area to total building area.
c. Frontage fee at full frontage rate but prorated for each unit based on ratio of unit building area to total building area.
Mixed-Use Rental: Ground-Floor Commercial and Upper-Floor Residential (single owner)
a. Building area fee at full rate for commercial area and 25 percent commercial rate for residential area (structured parking area
excluded).
b. Land area fee at full land area fee rate.
c. Frontage fee at full frontage rate.
Mixed-Use Condos: Ground-Floor Commercial and Upper-Floor Residential (multiple owners)
a. Building area fee at full rate for commercial pad areas and 10 cents per square foot of building pad area, per residential condo
unit (structured parking area excluded).
b. Land area fee at full land area fee rate for commercial pad footprint.
c. Frontage fee at full frontage rate for commercial units (ground floor direct frontage).
d. Live-work condo units where there is a clear and legally defined distinction between work space and living space will be
assessed using a combination of a, b, and c above.
Street Frontage Fee is calculated by multiplying the linear feet of street frontage of a parcel by the Street Frontage Rate ($6 per
linear foot).
Land Area Fee is calculated by multiplying the square footage of the parcel by the Land Area Rate (10 cents per square foot)
Building Area Fee is calculated by multiplying the square footage of a structure, as derived from its gross exterior dimensions, by
the Building Area Rate (15 cents per square foot).
Flat Parcel Fee - each individual Assessor's Parcel is assessed the Flat Parcel Rate ($425).
Street Frontage Rate Land Area Rate Building Area Rate Flat Parcel Rate
$6.00 per linear foot 10¢ per square foot 15¢ per square foot $425 per parcel
21
OPERATIONS
............................................
Administration
Downtown Inc. currently employs three full time staff. The Executive Director, Business Manager who is acting Human Resources
Director and Membership Outreach Manager. Each of these positions is varied and involves many facets. A part time
Administrative Assistant works closely with the business manager to insure quality accounting and record keeping. Due to a mix
of contract services and the necessity to be transparent-, DTI uses a bid process for most services costing over $5,000. An
independent contractor provides consultation in this process along with Information Technology issues such as telephone,
computer software/hardware, copy machine, networking, data base and other technologies requiring a specific competence.
In November, 2009 Downtown Inc. launched an Intern Volunteer Program designed to assist university students/graduates
interested in the public sector field. Each student selects their area of interest from events, retail recruitment, research into
municipal codes and enforcement, and issues pertinent to Downtown Inc. The interns have proved to be invaluable and have
logged over 500 hours of volunteer time. They have moved the organization forward far beyond what was expected in our first
year. The Board of Directors and staff are most grateful for their efforts and accomplishments.
Intern Testimonial:
In February I started as an intern at Downtown Incorporated after finishing my degree in Political Science at UC Berkeley. Since
February, I've interned for approximately 200 + hours in addition to participating in events Downtown Inc. has hosted or been
affiliated with. I mainly work on projects associated with the Art Walk and the Artists Village such as devising a system to permit
vendors who wish to operate on the promenade during the First Saturday Art Walk. Each month, I communicate with all vendors,
get the information and documents needed in order for them to obtain a permit, and bring them to City Hall. After this process is
complete, I assign vendors their spaces, give them a set of rules they must comply with, and stay the duration of each art walk to
ensure everyone complies and that no unauthorized vendors are present. I also assist the staff with various projects and events as
well as write for and help edit the monthly newsletter.
Downtown Incorporated has provided me with great experience and has allowed me to make this internship truly my own. I am not
stuck filing papers, but instead get real hands-on experience in local politics. administration, and project management. I believe
this internship will prove beneficial for me as/ enter law school in 2011 and will undoubtedly come in handy if/ wish to work in local
government or for a PBID in the future.
Kathryn Podsiadio, U C Berkeley 2009
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Directors + Staff
¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦
Board Directors
2009/10 Officers
Term Expiration:
President: Bob Stewart, Empire Building (2010/11) 4/30/12
Vice Chair: Ryan Chase, Fiesta Marketplace #2 (2010/11) 4/30/12
Treasurer: Ray Range], R & R Sportswear (2009/10) 4/30/10
Gil Marrero, Harrah Properties (2010/11) 4/30/11
Secretary: Wendy Bryan, Gonzalez Northgate Markets (2009/10) 4/30/10
Irv Chase, Fiesta Marketplace #1 (2010/11) 4/30/13
Property Owners - Directors
Joe Duffy, Phillips Hutton Building 4/30/11
Jon Gothold, DGWB Ventures 4/30/11
Davin Gumm, Pacific Building 4/30/13
Adolfo Lopez, Lopez Properties 4/30/12
Elise Luckham, First American Title 4/30/12
Michael Paxton, Spurgeon Building 4/30/13
Alicia Valdez, Gonzales Northgate Markets 4/30/13
Raul Yanez, Yanez Properties 4/30/11
Neighborhood Representative Property Owner
Brian Christenson, Artist Village Lofts 4/30/11
Merchant Representative Business Owner
Teresa Saldivar, Teresa's Jewelry 4/30/11
City of Santa Ana Representative
Cindy Nelson, Deputy City Manager Ex-Officio Member
Staff
Vicky Baxter, Executive Director
Liset Hernandez, Business Manager
Ruth Valle, Member Services/Outreach
Norm Baxter, Consultant
Phung Mai, Administrative Assistant
Kathryn Podsiadlo, Special Projects Intern
AndrewTovstein, Retail Recruitment Intern
Claudia Lavini, Special Projects Intern
Joshua Lee, Research Intern
23
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LEADERSHIP
¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦
Downtown Incorporated began the process to improve the vitality of Downtown Santa Ana with the formation of
the Community Management District and officially opened our doors August 2009. During our formation, the
economy rocked the business world to its roots. Despite the economy and market fluctuations along with changes in
the business environment, we will work to strengthen retail and commercial establishments.
Although challenged by the market, our property owners continue to reinvest in their businesses. Herb Rose with
LaBell Exchange received the coveted Award of Excellence from the Association of TeleServices in a challenging
year for his industry. ROIC acquired the Downtown Plaza and have landscaped, modernized and attracted new
businesses into their heavily trafficked plaza- Mil Jugos will begin an expansion project later this year to
accommodate their increasing popularity. Jugos Acapulco will also be expanding in 2010. City Ventures broke
ground for 16 new live/work units. The YOST Theatre, Fiesta Marketplace and the Spurgeon Building are all in
varying degrees of upgrades and repositioning. Several projects are planned for 2010 that will continue to change
the footprint of downtown.
As we look forward, we will continue to focus on our core functions of public safety, maintenance, advocacy,
marketing and business support and developing programs and services that benefit the downtown.
With all stakeholders working together in partnership, I am confident the successes of Downtown Inc. will continue to
grow in 2010.
Regards,
Bob Stewart.
Board President, Downtown Incorporated
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Downtown Incorporated (DTI) is a private, non-profit organization dedicated to the enhancement and
improvement of Santa Ana's central business district. DTI oversees maintenance, safety and revi-
talization programs financed by the Community Management District, a property assessment district
originally established in 2008 through the legal process to July 2009 as the beginning of operations.
The district is roughly bound by Walnut Street to the South, Mortimer Street to the East, Birch Street
to the North and Flower Street to the West. The 66-block district is located within the central busi-
ness district C-3, C-3 A (Artist Village) zoning area.
Mission Statement
The mission of Downtown Incorporated is to facilitate the enhancement of Downtown Santa Ana as
a vibrant shopping, entertainment, business and cultural destination for all.
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YEAR IN REVIEW
¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦
Dear Downtown Stakeholder,
As our first year comes to a close, we recognize this year has been tough for many downtown stakeholders -
business and property owners, developers and public partners alike. The realities of the new economy have caused
many of us to pause and analyze our priorities and strategies.
While the economy has taken a toll, our commitment to our core fundamentals of public safety, advocacy and
marketing for Downtown has not wavered. Our clean and safe teams patrol the district seven days a week to provide
our stakeholders with public safety and maintenance services. We've also launched our website that includes a
social media presence on Facebook, Twitter and real time blogs, to communicate with our downtown patrons and
connect with our stakeholders. Our staff remains engaged in providing assistance to our community to include:
increased benefits for our Associate Members, co-op advertising and event sponsorship, retail recruitment, expanding
our Art and Entertainment district, advocacy with the City of Santa Ana staff and council, strengthen our partnership
with the Santa Ana Police Department and code enforcement.
If we make good strategic decisions in this down economy, we can maximize opportunities in the next economic cycle.
Downtown Santa Ana is not unlike most large American cities. The 1950's retail environment focused on the
downtown. The advent of the mall in the early seventies brought a mass exodus of core department stores relocating
to large undeveloped areas of the city. Downtown Santa Ana is reinventing itself to accommodate a new market
without alienating our established market.
Earlier this year, Downtown Inc. held a mini retreat with our Board of Directors to embark on an action plan for the
future of the district. We began working with the City of Santa Ana Economic Development, OPIS, Edwardo Figueroa
and Francisco Valle to equip our stakeholders as to trends that would benefit their businesses. All experts believe we
have the basic ingredients for success. We have a strong local market with adequate retail space inventory and a
growing demand for urban experiences. The experts recommend a need for a mix of complementary uses and a
focused approach to improving the retail market
As we look to the year ahead, there are many opportunities on the horizon. We will continue to inform you of our
efforts and we look forward to working with you to create a strong and vibrant Downtown.
Sincerely,
Vicky Baxter
Executive Director Downtown Inc.
Christmas 2009
Public Policy
¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦
While troubled real estate and capital markets and severe local and state government budget deficits
presented many challenges our first year, Downtown Incorporated was actively engaged with policy issues
affecting Downtown and development projects in and adjacent to the district.
Santa Ana Fixed Guideway Project Connecting Garden Grove
The Fixed Guideway will provide faster, more reliable public transportation services and choices for residents and
commuters and greater mobility in Santa Ana. Our Board of Directors is currently researching several alignment or travel
paths in the downtown. The project will encourage more pedestrian-friendly avenues and spur economic development and
jobs. A central city location will generate greater economic benefits for the downtown. Working with City Staff and the
Mayor, Downtown Inc. is researching best practices to make recommendations on the proposal.
Trolley
Although Downtown Inc. is not in the transportation business, we definitely believe that providing a trolley in the downtown
will benefit our restaurants and retail businesses. Working with the City, Downtown Inc. will begin a pilot program in mid-
August to attract people to the downtown. The trolley will initially run from 4:30 PM - 7:30 PM with stops in the downtown to
the train depot. This program will build depending upon its success. The goal is to transition to a "lunch express".
Proiects Advocated
One Broadway Plaza, Jugos Acapulco Expansion, Rehabilitation/Re-positioning of Fiesta Marketplace., YOST Theatre,
Station District, RTKL Wayfinding
Policy Advocated
Dance Ordinance in Arts/Entertainment District, City One-Stop Public Information and Service Center,
Proof Back Door, Limited Free Parking (Structure), Parking Meter Grace Period, 2 hours Vendor Truck Parking
Enforcement
Events Monitored
First Saturday Art Walk, Fiestas Patrias, Cinco de Mayo, Noche de Altares
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(Clean + Safe
¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦
Downtown Incorporated's clean and safe programs support the development of downtown office,
retail and entertainment uses by maintaining a clean and safe environment.
Clean Streets
In August 2009, Downtown Inc. took over the clean streets program from the City of Santa Ana. In January 2010,
DTI contracted with ABLE Building Maintenance, a local Santa Ana Company in business for over 40 years. They
provide litter maintenance and power washing services in the district. The program operates seven days a week.
Pressure washing service is provided between 10:00 PM and 6:00 AM, Tuesday, Thursday and Sunday. A
minimum of three linear blocks is done per day. High traffic areas such as; Main, Broadway and Birch are
pressure washed twice per month. Downtown Inc. responds as needed to areas that need more attention or a call
to service from one of our stakeholders.
Downtown Inc. clean streets team enhances the pedestrian experience by responding to maintenance issues and
providing services, including sweeping and pressure washing alleys and sidewalks, removing street and first floor
level graffiti, litter, collecting leaves and addressing other surface maintenance control issues. In our first year of
service, we have been commended by both consumers and merchants for our diligence and clean downtown.
A recent quote from Al Afghani, Arco Gas Station; "Excellent job, immediately done. Thank you".
8
(Clean + Safe
. ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦
Safe Streets
Downtown Incorporated is determined to provide a safe atmosphere in our district. American Shield was hired in July, 2009 to
provide ambassador/security services. As the first eyes on the street, Downtown Inc. Security Guides equipped with cell phon
days a week, direct and assist visitors, serve as a communication link and report graffiti. They also support law enforcement
agencies, merchants and property owners in crime prevention efforts. Security Guides walk and bike the district. In 2010, plans
are to purchase an electric utility vehicle clearly marked with our logo and bold letters stating SECURITY to further announce our
presence on the street.
American Shield has built a relationship with our merchants as we believe it is crucial for businesses to feel supported. As this
relationship has grown, there is an overwhelming desire for partnership and cooperation.
Downtown Inc. has made a gigantic effort to have our merchants and property owners report crime. In previous years, merchants
did not understand the necessity to report minor offenses typically resolved by the merchants (petty theft, odd behavior, 51150
conduct, illegal peddlers, drug dealing, homeless trespassing, etc.). Working with SAPD, DTI has informed our community to
"make the call'. All calls are prioritized and recorded. This tracks the criminal activity in downtown and will further assist DTI and
SAPID in providing accurate reporting statistics. Indicators for additional service will depend upon this reporting mechanism.
Nuisance activity and criminal activity are being defined and reported. Identifying "hot spots" or areas of increased service will
make response time less as we work in partnership with American Shield and Santa Ana Police Department.
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Events
¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦
Downtown Santa Ana had many events sponsored by Downtown Inc. in 2009. Two signature events
(Cinco de Mayo and Fiestas Patrias) are not sponsored by DTI at this time.
International Music Festival
This first year event brought culture, music and international cuisine to downtown in partnership with El Centro Cultural de
Mexico, Casa Guanajuato, and Fundacion Yanga Veracruz USA. 50 countries were represented.
Holiday Plays at the YOST Theatre
In conjunction with the YOST Theatre, Teratro Actores de Santa Ana, Louie Olivos, Jr., and Carter Dewberry & Associates,
Downtown Inc. held free matinee plays for children in both Spanish and English during the Christmas Season. The plays
were varied from chamber music and narration to "No Christmas for Smiley" with traditional holiday music and a message
against violence and gangs. All media outlets were used with press releases and a featured story in the 0 C Register.
Downtown Santa Ana - World Cup Headquarters
FIFA World Cup - The Restaurant Association (32 downtown restaurants), joined this effort. Businesses televised the
games to their patrons with early morning and all day rebroadcasts. 13 participating restaurants were listed on the website.
Many businesses participated by contributing prizes from soccer balls to one of a kind soccer rings valued at $350. Media
outlets included: Miniondas, Farandula, 0 C Register, 0 C Weekly, Yahoo web banners, flyers and mailings.
A monthly live music event during summer - Each show featured one-two bands performing live on the Artist Promenade in
the early evening, followed by specialty DJ's and music programming in select venues on North Broadway. This music
series showcased a broad array of musical genres including independent, alternative, acoustic, instrumental, experimental,
surf, pop and jazz.
Block Party - Handmade Brigade
Marketed by DTI, this event brought a diversity of people to purchase handmade products into downtown.
Fiesta Calle Cuatro Concert Series
A diverse series of musical experiences (traditional folkloric and multi-cultural) located along our retail corridor on 4th Street.
The marketing strategy of this entertainment series is to position Downtown Santa Ana as a summer destination and a place
to shop, be entertained, do business and discover arts and culture. By providing different types of musical entertainment and
highlighting different venues in the Downtown, all of the local businesses and areas are promoted with new patrons and
increased foot traffic.
DTI partnered with the Old Orange County Courthouse
A joint effort with the historic Old Courthouse brought families to enjoy a movie and exhibits featuring the California Golden
Bear. Face painting and popcorn were provided by DTI along with a historic trolley tour narrated by historian Tim Rush.
First Saturday Art Walk
In June 2010 the First Saturday Art Walk's governance was taken over by DTI_ Staff became responsible for maintaining
the integrity of the event as well as order. Ten vendors are screened and must fit the criteria to insure quality.
11
MARKETING & PROMOTIONS
¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦
Downtown Inc. periodically runs promotions to promote local businesses. Promotions also help
display all of the positive change downtown. Some of the promotions sponsored by Downtown Inc.
are:
Santa Ana Downtown Divas
What began as a networking group of women in business has become a dynamic force for change in the downtown. Forty women
who agree constitute success and these ladies are inviting more ladies to become involved in the community management district
and provide needed feedback on the direction of downtown.
Passport to Downtown
Downtown Inc. was the primary sponsor for Noche de Altaras, a traditional celebration also known as Day of the Dead in November.
DTI participated by having a booth and hosting a "Passport to Downtown Treasure Hunt". Passports were given to participants who
received a DOWNTOWN sticker as they visited our downtown stores. The passport were filled with stickers and turned in for prizes.
To encourage the public to visit both sides of 4th Street, half the stickers were black and half were white and the requirement was to
have both colors to win. Patrons won a full range of prizes purchased at cost from our merchants. Advertising included mail
merges, local newspaper ads as well as e-mail blasts. Attendance to Noche de Altares is a downtown Santa Ana tradition that has
taken place for the last seven years. In 2009 the event brought well over 9,000 attendees. This event is a true crossover event
bringing music, food and culture to an increasingly diverse audience.
Holiday Light Proiection Proiect
In 2009, Downtown Inc. decided to forsake the traditional and explore new avenues of holiday entertainment. Over 10,000 people
braved cold December nights to watch a new concept in light and sound. Animated Light Projection set to music on the historic
Spurgeon building. With an original music score synched to Chris Alfaro's computer and over a quarter of a million dollars in rented
projection equipment, the downtown district gained new favor with both locals and visitors to produce a truly unique 14 day event.
Picked up by both local and L.A. media networks, newcomers enjoyed watching a spectacle of light and sound. Although an illusion,
snow falling and collecting on the window ledge can invoke cold chills even when temperatures are far from freezing.
Cookies with Santa
Downtown Inc. hosted Santa Claus straight from the North Pole on Saturday, December 5th, 12th and 19th from 11:00 AM -100
PM to enjoy cookies and candy canes with kids. Parents were asked to show a receipt for $5.00 or more from any downtown
business and receive a framed picture with Santa ($20.00 Value). 800 pictures were taken with appreciative parents and even
grandparents. Santa was thrilled to hold one of Santa Ana's youngest newcomers (Anna, 21 days old).
Valentine's Day Celebration
Strolling Mariachi bands serenaded shoppers along with volunteers distributing 500 long stemmed red roses marked February 14th.
A featured interview with Teresa from Teresa's Jewelers and the icon of Spanish radio, Teddy Fregoso brought shoppers into the
district to buy their "beloved" a gift. 0 C Weekly and the 0 C Register were also used in media buys.
Mixers
In partnership with our local restaurants and businesses, Downtown Inc. has held a mixer at the historic Santora building and
Original Mike's. Both have brought over 150 people and a chance to meet, greet and network. A chance to get to know one another
on an informal basis, mixers also produce dollars through deals and agreements as businesses "mix" their goods and services and
allow commerce to take place. Downtown Inc. assists in marketing the event via e-mail blast, press release, mailings, and flyers.
12
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Retail
.............................................
The dramatic slowing of the national economy in the housing and financial markets in
combination with a reduction in consumer confidence have contributed to a significant decrease
in overall sales tax revenue over the past year.
Maintaining a diverse mix of retail is essential for an active and dynamic downtown. Restaurants, entertainment, and retailers
draw evening and weekend activity and support the needs of residents, businesses and promote visitors.
There is recognition amongst many of Downtown's retailers and restaurants that they must broaden their customer appeal by
redefining what they sell and how they sell it. DTI is assisting these retailers in their revitalization efforts by partnering with OPIS
Network and Mi Empresa Exitosa to analyze retail conditions and develop a downtown retail activation strategy. Both
organizations have provided workshops for our retail community as they assess their viability in this downturn and reposition
themselves for recovery. Also to further understand the market, DTI will house a seminar conducted by Francisco Valle in the fall.
Several major mixed-use projects are planned for Downtown that will enhance the economic vitality of the area. Two proposals
for Broadway incorporate the historic reuse of the existing building. Chapter One: the modern local, is moving forward along with
The Copper Door. These two neighbors will have a kinship as that "neighborhood" bar with a twist. The twist for Chapter One
is, its affordable gourmet dining. The Cooper Door will introduce Santa Ana to beers of the world with future surprises and
amenities.
In addition, Fiesta Marketplace has proposed a comprehensive re-design that will increase the diversity of retail offerings to
prepare for the influx of residents and visitors into the Downtown area. The redesign will enhance the shopping and pedestrian
experience on the promenade and will help strengthen this traffic-generating corridor toward Main and Broadway. The Yost
Theatre, with seating capacity of 800, will draw top name entertainment and will provide a first class dining experience. A lounge,
located in the property next to the Yost Theatre, will provide entertainment dining and dancing.
Downtown Inc. will work in partnership with the City of Santa Ana to inform our businesses of facade money as it becomes
available. This will further "freshen up" the downtown in anticipation of recovery.
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Physical Enhancements
¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦
The City of Santa Ana's past installation of electrical boxes in the planters on 4t" Street, allowed for
lighting in the trees.
Downtown Inc. covered the cost of trimming the trees and contracted with DekraLight to have lights strung along tree lined
4th Street. The public and the merchants loved the additional lighting and ambiance so much that DTI continues to
maintain them throughout the year. The festive friendly ambiance creates a warm look to the downtown at night and is
welcoming. The LED lights are another joint partnership with the City of Santa Ana and Downtown Inc.
Future considerations include hanging flower baskets from the streetlights and possible flowers in the planters. Our
maintenance team would water and weed the flowers and keep them well groomed. The idea would be to find corporate
partners giving them recognition through a name plaque on the light pole. A utility vehicle would be purchased to hold
water and tools.
The Executive Director sits on the Fagade Committee to better understand the process and availability of funding for
downtown applicants. Several projects were funded in 2009 totaling $500,000. In 2010, DTI will work with the city to
market this program in our district as funds become available.
Downtown Inc. works closely with the City on street lights that are not working or areas that need additional lighting. DTI
has alerted property owners to light requirements resulting in increased lighting in alleys and in areas previously dark-
To better inform our merchants of signage requirements, Downtown Inc. has hosted meetings with code enforcement and
merchants. One of the outcomes has been a brochure from the City outlining details and giving examples of allowed/not
allowed signage.
To encourage bike enthusiasts to shop, dine and play in the district, bike racks were purchased and installed in several
areas in the downtown amounting to over $5,000- One installation was on West 4t" across from the Ronald Reagan
Federal Building and several locations in the Artists Village. Before the cement was dry, bicycles were parked in the racks.
This has alleviated the bikes locked to trees, bollards, benches, signposts or strewed into pedestrian walkways.
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Residential
¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦
Downtown continues to evolve as a vibrant urban destination.
This year, City Ventures will finish their Phase 1 Project with four lofts and four live/work units. The additional units will
fulfill the need for a diverse housing market.
New housing brings vibrant energy to the Downtown District, encourages more businesses to invest in the area and
creates a sense of community. While the national housing market has experienced a tremendous slow down, efforts to
support the development of quality housing projects that activate the central city continues to be a high priority.
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There are four different floor plans that vary from approximately 1,500 square feet to 2,400 square feet. Early buyers will
have the opportunity to create a living environment that suits their lifestyle needs by laying out the rooms. The expected
completion date will be the middle to end of November with prices starting in the mid to high $300s. The live/works will
occupy the first and second floor and the lofts will primarily be on the third floor. City Ventures is working with Wells Fargo
with an interest rate at a 50 year low. This complex located in the Artist Village allows residents a walkable lifestyle in
Downtown Santa Ana.
16
Associate Membership
¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦
A regular member is a property owner in the 66 block Community Management District. All
property owners are encouraged and invited to actively participate in Downtown Inc.
Any other person may apply for Associate Membership in Downtown Incorporated by executing
and filing with the Secretary of Downtown Incorporated an application for membership and making
payment of dues as prescribed from time to time by the Board of Directors. Upon approval by the
Board of Directors, the applicant shall become an Associate Member of Downtown Incorporated.
Benefits of Associate Membership:
Networking opportunities
Local government advocacy
Credibility
Learning opportunities
Discounts
Co-op advertising and website link
Committee participation
DTI's media (bilingual newsletter, flyers and e-mails)
Partnership with other organizations
DTI began to outreach to downtown businesses with three strategies:
(1) Meeting the businesses on a personal level. This consists of visiting every existing business in the
downtown district and making a formal introduction.
(2) DTI staff became aware of who to contact as well as changes of locations. Staff was then able to maintain
an accurate database.
(3) DTI began a snail mail and email campaign to acquaint businesses with DTI. Bi-monthly Merchant
Meetings are held to inform businesses of upcoming events, opportunities, networking, changes in policy in the
district, and exchange ideas.
Businesses were very responsive and recognized the opportunity. A total of 55 businesses have joined in 2009.
Associate Membership continues to grow and will be a focus for 2010.
17
Financials
¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦
Downtown Incorporated manage a budget of almost $1 million.
Downtown Inc. receives its support primarily from property assessments. The management district encompasses 281 parcels
equaling 40,000 linear feet of street frontage, 4.3 million sq. ft. of land and 3.1 million sq. ft. of buildings. DTI's assessment rates
are based on flat Parcel fee +Street frontage fee + Land area fee + Building area fee. Full assessment formula on page 21. Th
district's operating budget allocates 87% of funds to core activities public safety, maintenance, marketing, physical enhancemen
while 13% is allocated to administration. The Board of Directors voted at their July 2010 regular board meeting, no changes to tr
Community Management District boundaries and no increased assessment for 2010111.
2009-2010 FUND ALLOCATION BY DEPARTMENT
$48
¦ Maintenance &
Landscaping
¦ Marketing & Promotions
Ambassador Program
¦ Physical Enhancement
Administration &
Operations
' Roundo(l amounts in thousands
'As of June 30, 2010. Financial Review pending, prepared by ELLS, CPA's..
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DEMOGRAPHICS
¦ ¦ . . ¦ . ¦ ¦ . ¦ . ¦ ¦ . ¦ ¦ ¦ ¦ ¦ ¦ . ¦ . . ¦ . ¦ ¦ . . . ¦ . . ¦ . ¦ ¦ . ¦ . . . ¦ ¦ .
Downtown Santa Ana continues to be one of the region's largest employment centers with an
estimated employment population of 26,425 with 2,277 establishments.
Downtown's population in 2009 totaled 70,928 with 13,627 households. Per capita income is $10,649
and the average household income is $47,273. The average Central City citizen is 26.5 years old.
In addition to traditional demographics, industries are
increasingly utilizing psychographics as a tool to target
potential market segments. Psychographics identify
personality characteristics and attitudes that affect a
person's lifestyle and purchasing behavior. In terms of
retail, Santa Ana's trade area psychographic
characteristics are conducive to a prosperous retail
market. Groups such as IN STYLE, OLD and
NEWCOMERS, METRO RENTERS, CONNOISSEURS,
URBAN CHIC and others with a favorable disposition
towards urban retailing have a renewed interest in the
district. Santa Ana has an encouraging new mix of
"urban trendsetters," those who will set the tone for
downtown's retail and restaurant scene, and "followers,"
those that will follow the lead of the trendsetter.
¦ Services
¦ Manufacturing
Administrative
¦ Retail
Construction
¦ Wholesale
¦ Financial
¦ Transportation
¦ Agriculture
20
Source City of Santa Ana Community Development Agency
Assessment Formula:
Street Frontage Fee + Land Area Fee + Building Area Fee + Parcel Fee
1. Single-family residential uses are set at a rate of 10 cents per square foot of building pad, from one to four units are set at a
flat rate of $100 per unit (includes residential condos).
2. Multi-family residential uses of five or more units are set at 25 percent of respective base assessment rates (apartments).
3. Nonprofit- (5010) owned/occupied properties are set at 25 percent of respective base assessment rates.
4. Building areas are capped at a floor area ratio (FAR) of 4.0.
5. Government-owned/occupied properties will not be assessed and will receive no direct services.
6. Residential uses, regardless of the number of units, that are 100 percent project-based rental assistance programs; for
example, senior housing and the like, will not be assessed and will receive no direct services.
7. Mixed-use properties/complexes will generally be assessed based on prorated land-use ratios, using the following guidelines:
Commercial/Office Condos - No Residential Uses (multiple owners)
a. Building area fee at full building area fee rate (structured parking area excluded).
b. Land area fee at full land area fee rate but prorated for each unit based on ratio of unit building area to total building area.
c. Frontage fee at full frontage rate but prorated for each unit based on ratio of unit building area to total building area.
Mixed-Use Rental: Ground-Floor Commercial and Upper-Floor Residential (single owner)
a. Building area fee at full rate for commercial area and 25 percent commercial rate for residential area (structured parking area
excluded).
b. Land area fee at full land area fee rate.
c. Frontage fee at full frontage rate.
Mixed-Use Condos: Ground-Floor Commercial and Upper-Floor Residential (multiple owners)
a. Building area fee at full rate for commercial pad areas and 10 cents per square foot of building pad area, per residential condo
unit (structured parking area excluded).
b. Land area fee at full land area fee rate for commercial pad footprint.
c. Frontage fee at full frontage rate for commercial units (ground floor direct frontage).
d. Live-work condo units where there is a clear and legally defined distinction between work space and living space will be
assessed using a combination of a, b, and c above.
Street Frontage Fee is calculated by multiplying the linear feet of street frontage of a parcel by the Street Frontage Rate ($6 per
linear foot).
Land Area Fee is calculated by multiplying the square footage of the parcel by the Land Area Rate (10 cents per square foot)
Building Area Fee is calculated by multiplying the square footage of a structure, as derived from its gross exterior dimensions, by
the Building Area Rate (15 cents per square foot).
Flat Parcel Fee - each individual Assessor's Parcel is assessed the Flat Parcel Rate ($425).
Street Frontage Rate Land Area Rate Building Area Rate Flat Parcel Rate
$6.00 per linear foot 10¢ per square foot 15¢ per square foot $425 per parcel
21
OPERATIONS
............................................
Administration
Downtown Inc. currently employs three full time staff. The Executive Director, Business Manager who is acting Human Resources
Director and Membership Outreach Manager. Each of these positions is varied and involves many facets. A part time
Administrative Assistant works closely with the business manager to insure quality accounting and record keeping. Due to a mix
of contract services and the necessity to be transparent-, DTI uses a bid process for most services costing over $5,000. An
independent contractor provides consultation in this process along with Information Technology issues such as telephone,
computer software/hardware, copy machine, networking, data base and other technologies requiring a specific competence.
In November, 2009 Downtown Inc. launched an Intern Volunteer Program designed to assist university students/graduates
interested in the public sector field. Each student selects their area of interest from events, retail recruitment, research into
municipal codes and enforcement, and issues pertinent to Downtown Inc. The interns have proved to be invaluable and have
logged over 500 hours of volunteer time. They have moved the organization forward far beyond what was expected in our first
year. The Board of Directors and staff are most grateful for their efforts and accomplishments.
Intern Testimonial:
In February I started as an intern at Downtown Incorporated after finishing my degree in Political Science at UC Berkeley. Since
February, I've interned for approximately 200 + hours in addition to participating in events Downtown Inc. has hosted or been
affiliated with. I mainly work on projects associated with the Art Walk and the Artists Village such as devising a system to permit
vendors who wish to operate on the promenade during the First Saturday Art Walk. Each month, I communicate with all vendors,
get the information and documents needed in order for them to obtain a permit, and bring them to City Hall. After this process is
complete, I assign vendors their spaces, give them a set of rules they must comply with, and stay the duration of each art walk to
ensure everyone complies and that no unauthorized vendors are present. I also assist the staff with various projects and events as
well as write for and help edit the monthly newsletter.
Downtown Incorporated has provided me with great experience and has allowed me to make this internship truly my own. I am not
stuck filing papers, but instead get real hands-on experience in local politics. administration, and project management. I believe
this internship will prove beneficial for me as/ enter law school in 2011 and will undoubtedly come in handy if/ wish to work in local
government or for a PBID in the future.
Kathryn Podsiadio, U C Berkeley 2009
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Directors + Staff
¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦
Board Directors
2009/10 Officers
Term Expiration:
President: Bob Stewart, Empire Building (2010/11) 4/30/12
Vice Chair: Ryan Chase, Fiesta Marketplace #2 (2010/11) 4/30/12
Treasurer: Ray Range], R & R Sportswear (2009/10) 4/30/10
Gil Marrero, Harrah Properties (2010/11) 4/30/11
Secretary: Wendy Bryan, Gonzalez Northgate Markets (2009/10) 4/30/10
Irv Chase, Fiesta Marketplace #1 (2010/11) 4/30/13
Property Owners - Directors
Joe Duffy, Phillips Hutton Building 4/30/11
Jon Gothold, DGWB Ventures 4/30/11
Davin Gumm, Pacific Building 4/30/13
Adolfo Lopez, Lopez Properties 4/30/12
Elise Luckham, First American Title 4/30/12
Michael Paxton, Spurgeon Building 4/30/13
Alicia Valdez, Gonzales Northgate Markets 4/30/13
Raul Yanez, Yanez Properties 4/30/11
Neighborhood Representative Property Owner
Brian Christenson, Artist Village Lofts 4/30/11
Merchant Representative Business Owner
Teresa Saldivar, Teresa's Jewelry 4/30/11
City of Santa Ana Representative
Cindy Nelson, Deputy City Manager Ex-Officio Member
Staff
Vicky Baxter, Executive Director
Liset Hernandez, Business Manager
Ruth Valle, Member Services/Outreach
Norm Baxter, Consultant
Phung Mai, Administrative Assistant
Kathryn Podsiadlo, Special Projects Intern
AndrewTovstein, Retail Recruitment Intern
Claudia Lavini, Special Projects Intern
Joshua Lee, Research Intern
23
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