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Home My WebLink About2014-001 - Levying An Assessment For the Downtown Santa Ana Business Improvement Area(jxs 12- 26 -13) RESOLUTION NO. 2014 -001 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA LEVYING AN ASSESSMENT FOR THE DOWNTOWN SANTA ANA BUSINESS IMPROVEMENT AREA FOR CALENDAR YEAR 2014 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS FOLLOWS: Section 1. The City Council of the City of Santa Ana hereby finds, determines and declares as follows: A. On February 6, 1984, the City Council, by Ordinance No. NS -1715, established the Downtown Santa Ana Business Improvement Area pursuant to California Streets and Highways Code Sections 36500, et seq. (the "BID Law "). B. On December 16, 2013, the City Council received the 2014 Annual Report for the Downtown Santa Ana Business Improvement Area (the 'Report'). C. On December 16, 2013, the City Council adopted Resolution 2013 -057 approving the Report and setting a public hearing for January 7, 2014 at which time protests could be made to the proposed levy of the 2014 annual assessment for the Downtown Santa Ana Business Improvement Area (the "Annual Assessment'). D. On January 7, 2014, at the time and place called for in Resolution 2013- 057, the City Council conducted a duly noticed public hearing at which written and oral protests to the proposed Annual Assessment were made and considered as provided in Streets and Highways Code section 36524 and 36525. E. Qualifying written protests constituting a majority of the owners of the businesses paying the Annual Assessment were not received at or before the conclusion of the public hearing. Section 2. The Report is confirmed and the levy of an assessment for the calendar year 2014 is hereby affirmed in accordance with the assessment formula described in Attachment B of the Report. A copy of the full Report is attached hereto and incorporated by reference. Resolution No. 2014 -001 Page 1 of 2 ADOPTED this 7th day of January, 2014. 0)�'(] 7 � 41, iguel A. P lido Mayor APPROVED AS TO FORM: Sonia R. Carvalho, City Attorney Sandov"l Assistan'f'City Attorney AYES: Councilmembers: Amezcua Benavides Reyna Sarmiento (4) NOES: Councilmembers: None U ABSTAIN: Councilmembers: Martinez Pulido Tinajero (3) NOT PRESENT: Councilmembers: None (0) CERTIFICATE OF ATTESTATION AND ORIGINALITY I, MARIA D. HUIZAR, Clerk of the Council, do hereby attest to and certify the attached Resolution No. 2014 -001 to be the original resolution adopted by the City Council of the City of Santa Ana on January 7, 2014. Date: / 111.40/` Clerk of the Council City of Santa Ana Resolution No. 2014 -001 Page 2 of 2 DOWNTOWN SANTA ANA BUSINESS IMPROVEMENT DISTRICT 2014ASSESSMENT REPORT Background On February 6, 1984, the City Council adopted Ordinance No. NS -1715 pursuant to Section 36500, et seq., of the 1979 State of California Streets and Highways Code, creating a Business Improvement District (BID) in Downtown Santa Ana. On October 6, 2003, the City Council appointed the Community Redevelopment and Housing Commission (CRHC) as the Downtown Santa Ana Business Improvement District Advisory Board. As the BID Advisory Board, the CRHC is responsible for making recommendations to the City Council on the expenditure of revenues derived from the levy of assessments, on the classification of businesses, as applicable, and on the method and basis of levying the assessments (including the annual budget). The BID was established as a means of providing the Downtown business community with the funding to promote the Downtown through events and advertising pieces; funding to increase security and enhance the overall aesthetics of the area; and also to maintain the downtown shopping corridors. Improvement Area Boundaries The geographic boundaries of the district remain unchanged from the original 1984 area, and they include over 700 retail, service, and professional members (see Attachment A). Assessment Formula The formula for the BID tax levy also remains unchanged from the original 1984 ordinance and is based on the category and /or sales volumes of the business (see Attachment B). 2014 Budget Plan Based on the feedback from the two Associations, the 2014 BID Budget focuses on the continuation of promotions and marketing of the BID. Some of the promotion and marketing will be focused on Downtown events and advertising pieces; which are all designed to enhance the overall aesthetics of the area and also to maintain the downtown shopping corridors. Detailed breakdowns of the two groups' budgets are attached (Attachment C). The assessments from the 2014 BID are estimated at $200,000 to be split evenly by Downtown Inc. and the Santa Ana Business Council Inc. Page 1 of 6 -- the two business groups that have spearheaded this BID process. Due to the delayed start of the 2013 BID assessment, both associations will have carryover funding from the previous year estimated to be at $95,000 each. This carryover has been incorporated into a reserve fund for their 2014 budgets. This reserve funding may be used for additional events and promotions throughout the year. These two representative business associations are proposing to host a variety of major community events and promotions, including, but not limited to the following: Downtown Inc. Sound Downtown /Restaurant Week Artwalks (12x) OC Pride Day of the Dead Patchwork (2x) Downtown Santa Ana Film Festival OC Fashion Week Santa Ana Business Council Business Fair Quinceanera Expo Mother's Day Celebration 4th of July Event Art Fair Film Festival Octoberfest Noche de Altares Plaza Navidena Other programming for the associations will include funding for the Downtown Restaurant Association, Holiday promotions, website development and maintenance, and an artist retention program. Page 2 of 6 ATTACHMENT A FLOWER ST. N > ❑ ❑ 1 ti O D Z > rt D W❑ g 0 7' ~ < D ❑g W ❑ o Ln 5 E ❑ N ROSS ST. Ul 3 n z ti BIRCH S f. s i 0 o A C BIRCH ST. 4 iD§E q £ gg 3t �f �i No D BROAD WAY ❑O❑ 71 El SYCAMORE ST. SYCAMORE ST. r+ 17-F] F-1 ❑ ❑ MAIN ST. ❑ F—I F—I El ❑ El ❑ L BUSH ST. CVPflE55 ❑ ❑ El D F-1 1:1 ❑ OR O a SPURGEON ST. n IIIIIr u ❑ ❑ D�� L ORANGE FRENCH ST. F m 0 e MORTIMEft ST. ATTACHMENT B 2014 ANNUAL ASSESSMENT FORMULA The following businesses located within the boundaries of the Business Improvement District (BID), classified under City Ordinance NS 1690 as Amusement Services, Pawnbrokers, Service Station and Classification A, including, but not limited to Retail Sale of Goods, Hotel and Motels, Theaters and Food Establishments, shall pay an amount equal to one and one -half times their annual business license fee. Businesses classified as Commercial Rental Property, Rental Property, Residential and Rooming House shall pay an amount equal to one - quarter times their annual business license fee. All other businesses, including Professions, Trades and Services within the boundaries of the proposed Business District, shall pay an amount equal to their annual business license fee. Once the assessment formula is established, it cannot be changed without written notice to all businesses within the boundaries of the proposed Business Improvement District and a public hearing held by the City of Santa Ana. Page 4 of 6 ATTACHMENT C DOWNTOWN BUSINESS IMPROVEMENT DISTRICT PROPOSED BUDGETS SUMMARY 2014 OPERATING FUND REVENUE BID Assessments — current $200,000 Prior Year Carry Forward $190,000 Total Revenue $390,000 Downtown Inc. ADMINISTRATION Overhead (Supplies, insurance, misc) $6,000 MARKETING Special Events Sound Downtown /Restaurant Week $10,000 Artwalks (12x) $12,000 OC Pride $5,000 Day of the Dead $5,000 Patchwork (2x) $10,000 Downtown Santa Ana Film Festival $5,000 OC Fashion Week $5,000 Total $52,000 Advertising (Print/Online) $27,000 OTHER PROGRAMMING Restaurant Association $5,000 Artist Retention Program $5,000 Misc. $5,000 Reserve $95,000 Total $195,000 Page 5 of 6 Santa Ana Business Council Inc. ADMINISTRATION Overhead (Supplies, insurance, misc) MARKETING Special Events Business Fair Quinceanera Expo Mother's Day Celebration 4th of July Event Art Fair Film Festival Octoberfest Noche de Altares Plaza Navidena Total Advertising (Print/Online) Newsletters Website & Social Media OTHER PROGRAMMING Reserve Total Total Expenditures $11,000 $2,000 $3,000 $8,000 $3,000 $2,000 $2,000 $2,000 $3,000 $2,500 $27,500 $30,000 $8,750 $8,750 $14,000 $95,000 $195,000 $390,000 Page 6 of 6