HomeMy WebLinkAboutMICROSOFT POWERPOINT - BID POWERPOINT PH 7-1-13 FINAL.PPT [ReadDowntown Santa Ana
Business Improvement
District
(Downtown BID)
1
Actions Approved
•Actions approved at June 17 th Council meeting
allow consideration of reactivating the
Downtown BID for 2013
•Approval of the 2013 Assessment Report and
budget
st
•Set the public hearing for July 1to consider
the levy of the 2013 Downtown BID
assessment
2
What is the Downtown BID?
•A type of special assessment for a specific area
or district
•Revenues can be used to improve and promote
the business district
•Business owners within the district voted to
establish the BID (1984)
•Annual assessments were collected from each
business (1984 through 2007)
3
Downtown BID
•783 active business license accounts within the
BID boundary
•617 BID-eligible businesses
•Anticipated annual BID revenue = $250,000
•Community Redevelopment and Housing
Commission (CRHC) serves as advisory board
•Business License Extension 2012-2013
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Downtown BID Boundary
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Context
•Community management district (PBID)
•Established in 2008
•Disestablished in 2013
•Assessed properties, not businesses
•Support from newly formed Santa Ana
Business Council (SABC) and Downtown Inc
(DTI) to reactivate the Downtown BID for
promotion
•City Council directed staff to take necessary
steps to allow consideration of reactivating the
BID assessment
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Sample Cost Comparison BID and PBID
Assessment Sq. Ft. PBID BIDRateBID
Category(Estimated)AssessmentAssessment
Fixed Flat
Rate12,487$641.000.25$65.75
Gross
Receipts
(Service 1,983$3,414.001.0$1,897.00
Rate)
Gross
Receipts 62,500$15,108.001.5$10,607.00
(Retail Rate)
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Reactivation Activities
•Confirmation of BID boundaries and
businesses
•March 25, 2013 letter mailed to all
businesses
•Developed FAQs to explain key issues of
concern
•Response to over 200 individual inquiries by
City Finance Department
•Two informational meetings hosted by DTI
and SABC
•Worked with DTI and SABC on budgets
8
Reactivation Activities
June 20 th Certified Mail letter mailed to all
business owners:
•Informing them of the July 1 st public hearing
•Providing a summary of the Assessment Report,
showing no boundary change, no formula change
and proposed budgets
•Explaining how to file a protest to the
assessment levy, if that is desired by a business
9
Reactivation Activities
•June 24 th First Class Letter mailed
referencing Certified Letter and BID website
for more information
10
Approval Actions to Date
•Must comply with State BID law and municipal
code
•2013 Assessment Report reviewed and
approved by the CRHC on June 4 th
•No changes to BID boundary
•No changes to BID assessment formula
•Anticipated budget of $250,000:
–$125,000 to DTI for promotion activities
–$125,000 to SABC for promotion activities
11
Public Hearing
July 1st public hearing:
•Receive all protests to the annual
assessment in writing
•If protests are received from businesses
paying 50% or more of the total proposed
assessment, the 2013 assessment cannot
be levied
–A business’ protest vote is weighted based upon
their assessment's percentage of total BID
assessment
–No single business represents more than 5% of
the total
12
Post Public Hearing
•If protests are less than 50%, and City
Council approves a 2013 BID
assessment levy:
All 2013 BID Area business license
?
accounts with a renewal date earlier than
July 1, 2013 will be mailed a written
notification of their BID assessment by
August 15, 2013.
A reminder statement will be sent
?
September 5, 2013. BID assessments will
be due and payable by September 30,
2013.
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Post Public Hearing (Cont’d)
All 2013 BID Area business license
?
accounts with a renewal date occurring
after September 30, 2013, will be mailed a
written notification and statement of their
BID assessment by November 27, 2013.
BID assessments for these businesses will
?
be due and payable by December 31,
2013.
All BID Area businesses whether their
?
assessment payment is due September
thst
30or December 31may request
installment payments.
14
Ongoing Process
•Convene stakeholders meetings as
necessary to address any potential issues
with respect to assessment
•Restart process in Fall 2013 for the 2014
levy of assessment scheduled to begin
February 15, 2014.
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