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HomeMy WebLinkAboutED BID Annual Levy Assessment 2013Wry OF Agenda Item No: 6.a Meeting Date: May 6, 2013 SAN RAFAEL CITY COUNCIL AGENDA REPORT Department: Economic Development Prepared by: Stephanie Lonotte,Manager City Manager SUBJECT: REPORT AND RECOMMENDATION TO ACCEPT PUBLIC TESTIMONY ON CITY COUNCIL'S INTENTION TO AMEND THE EXISTING DOWNTOWN PARKING AND BUSINESS IMPROVEMENTS AREA AND LEVY AN ASSESSMENT RECOMMENDATION: Take public testimony BACKGROUND: San Rafael established a Parking and Business Improvements District ("BID") in 1970. codified as Chapter 10.08 of the Municipal Code. After several years of discussion and study, the BID Board of Directors submitted a request tothe City to amend the BID District. The BID determined that expanded services, a larger area, greater diversity of businesses, and a different assessment process could result in a revitalized and improved Downtown District. City Council considered the request and at the March 18. 2013 meeting, adopted Resolution No. 13519 which stated Council's intent to amend the existing Downtown Parking and Business Improvement Dinthot, and started the amendment process. The Resolution ofIntent showed the area and the benefit zones, the name of the Diothot, the types of activities proposed to be funded with the aasesamenba, a statement that the assessment is annuu|, the method and basis for calculating the assessment by each business owner, and the time and place for a public meeting to take testimony and the time and place for apublic hearing where protests may beheard. The resolution was mailed to704 business license holders onrecord with the City inthe proposed area with a Joint Hearing Notice for both a public meeting on May 6 and a public hearing on May 20. Acopy of the Joint Hearing Notice and the Resolution ofIntention isattached. ANALYSIS: The purpose of this public meeting is to hear any public testimony on the proposal. No action isrequired tobetaken bvthe City Council beyond taking testimony. Atthe May 2Opublic hearing, City Council shall hear all protests on the amendment. Protests may be oral or written, but only written protests for business nwnona in the proposed District will be counted in determining if the amendment should be approved. If written protests are received from businesses that will pay 5096 or more of the ossesaments, the amendment cannot be approved. If the protests are for o specific element of the amendment, adjustments tnthe proposal can be made. The District iuthen amended bythe adoption of an ordinance. FOR CITY CLERK ONLY File No.: Council Meeting: SAN RAFAEL CITY COUNCIL AGENDA REPORT / Paste: 2 Proposed Changes to Existing BID The proposed changes tothe existing District are to change the name from "Downtown Parking and Business Improvements Area", to "Downtown San Rafael Business Improvement District". The area is proposed to be expanded and extend from the K8inao|e Mile to Hethedon Avenue. from Fifth to Third Streets, and extend down BStreet toSecond Street. Amap ofthe proposed area isattached aaExhibit X All businesses in the area would be membors, with the exception of residential uses and home occupations. Voluntary memberships ofbusinesses outside the District boundaries would beallowed. Proposed Assessments State law requires that BID assessments be levied onthe basis of the estimated benefit to the business. Businesses can be categorized for the purpose of determining their relative benefit, and the area itself can be divided into zones based upon the relative benefits of different locations. The Standard and Premium Benefit Zones proposed reflect this different benefit provided to different areas as the centrally located Premium area is expected to receive a larger degree of benefit that the more outlying areas. The assessments are scaled tothe type ofbusiness and assume that retail, restaurants, personal services (spas, hair and nail salons) and financial institutions (banks) will receive more benefit from the BID activities, especially marketing and promotions. Offices and professionals will benefit hualesser extent, but the BID will still bring more potential customers to Downtown and office and professionals will benefit from asafe and clean environment. Lower assessments are charged topersonal services sole practitioners (individual operators in apaa, hair and nail salons) asthere are multiple operators in a personal services facility, and the facility also pays asebusiness. The spread nfassessments between the types ofbusinesses and the zones ofbenefit are typical ofbusiness based BID throughout California. The assessments would be o flat fee by type of business and location in two different benefit zones. The Standard and Premium Benefit Zones are shown on the Exhibit map, and the assessment fees are as Downtown San Rafael Business Improvement District Annual Assessment Formula The BID estimates that there vvnu|d be approximately 700 members and an annual assessment of approximately $95,000 would be generated. The aae000mont would continue to be paid on an annual basis aspart ofthe business license process. Services to be provided The proposed services are consistent with the uses ofrevenue aestated instate law, and are asfollows: X General promotion of businesses activities which provide a specific benefit to aaneaaod businesses within the B1D� . B. Promotion ofpublic events which provide a specific benefit to assessed businesses within the BID and which take places inpublic places within the BID; C The acquisidon, construotion, installation and maintenance of any tangible property including but not limited to benches, trash nscepbau}es, decorations and landscaping which provide specific benefit toassessed businesses within the BID: D� Activities which provide a specific benefit to assessed businesses within the BID. Annual Assessment Type ofBusiness Standard Pnonniurn Retail, Restaurant, Personal Services, Financial Institutions $175 8225 Offices, Professionals $75 S100 Personal Services Sole Practitioner $50 $75 Non -Profit Organization $50 $58 The BID estimates that there vvnu|d be approximately 700 members and an annual assessment of approximately $95,000 would be generated. The aae000mont would continue to be paid on an annual basis aspart ofthe business license process. Services to be provided The proposed services are consistent with the uses ofrevenue aestated instate law, and are asfollows: X General promotion of businesses activities which provide a specific benefit to aaneaaod businesses within the B1D� . B. Promotion ofpublic events which provide a specific benefit to assessed businesses within the BID and which take places inpublic places within the BID; C The acquisidon, construotion, installation and maintenance of any tangible property including but not limited to benches, trash nscepbau}es, decorations and landscaping which provide specific benefit toassessed businesses within the BID: D� Activities which provide a specific benefit to assessed businesses within the BID. SAN RAFA8ZK^CITY COUNCIL AGENDA REPORT /Pmae: 3 The BID would set specific programs within these parameters in an annual budget, which must be accepted bythe City Council. The BID provided a proposed work plan in the initial notice to business owners. A general description of the program areas and the percentage of the allocation of funds to each area under consideration are asfollows: Hospitality (20Y6) —Aodons to promote u safe and welcoming Dovvntown, and to provide additional street enhancement services, such amsidewalk cleaning and beautification. Marketing, Promotions and Communication (20%) — Actions to promote Downtown through marketing, advertising and branding utilizing local media outlets and social media. market Downtown as the prime location in San Rafael for retail busineaaea, strengthen the "Shop Lnco|^ oampaign, and distribute routine member newsletters and e-mail communications. Special Events (20%) — Actions to promote special events that create fun, welcoming activities that draw residents and visitors into Oovvnbown, build o sense of uomnounih/, bring visibility and business to Downtown retailers and nashauranto, and appeal to the broadest demographics of San Rafael and Marin County residents. Administration and Advocacy (48%) — Organizational administrative functions, represent the interests of its mambens, establish an effective relationship with the City, work with community groupo, serve as a resource for members tocultivate asuccessful business, improve the work -day experience for Downtown oOioea, advocate for parking policies that support a strong retail environment, advocate for City policies that support Downtown business in[eraets, business recruitment and retention activities to attract solid businesses that will strengthen the mix of netai|, restaurant and entertainment venues. Outreach Activities The BID has been working onthis proposal for over ayear. BID Board members have visited with ground floor businesses in the proposed assessment area. The BID developed a brochure on the proposal including the proposed assessment and activities. This brochure was mailed toall businesses within the proposed boundaries. The BID Board held outreach gatherings on March 28, April 23and May 1raL All current and potential BID membena, who had San Rafael business |ioenaea, received o postcard invitation to the meetings. The City mailed the resolution ofintent with the map and the proposed faoo to all 704 business license holders on record with the City in the proposed area with a Joint Hearing Notice for both a public meeting unMay 6and apublic hearing onMay 20 FISCAL IMPACT: Amendments to the BID will have nodirect impact onthe City budget. The BID assessment is a funding mechanism that generates funds that must be expended on the activities of the BID. To the extent that the BID activities enhance the area and its business o|imate, the area will generate increased sales tax revenue. Administration of BID related aotiono, such asthe assessment billings and annual renewals and processing of the annual assessment levy will require some ongoing staff time from the City's Economic Development and Finance Departments. OPTIONS: The City Council can listen to pubic testimony on the proposed amendment to the District and assessments. If there are areas where more information or analysis of suggested changes to the assessment are desired, direction should be given to staff. At the Council's direut|on, staff can prepare an analysis of the impact of any suggested changes to the District or amendments to the BID to the May 20 t public hearing including an analysis of impact, The K8oy 2O 2013 public hearing has been . � noticed |nthe newspep*�and the heahngmust beopened. OnK8ay2U .theCih/Counoi{nanohoaeto take action or continue the hearing to receive more information. ACTION REQUIRED: Take testimony. ATTACHMENTS: Joint Hearing Notice including the Resolution ofIntention and Map NW—ion City of Main 1 MAYOR GARY O. PHILLIPS COUNCILMEMBER DAbION CONNOLLY COUNCILMEMBER BARBARA HELLER COUNCILMEMBER MARC LEVINE ER ANDREW CUYUGAN MCCULLOUGH March 25, 2013 Notice of a Public Meeting and a Public Hearing of the San Rafael City Council on Amendments to the existing "Downtown Parking and Business Improvements Area" Notice is hereby given that the San Rafael City Council will hold a public meeting at their regularly scheduled City Council meeting on Monday, May 6, 2013 at 7 p.m. in the City Council Chambers of City Hall, 1400 Fifth Avenue, San Rafael, to hear public testimony on a proposal to amend the existing "Downtown Parking and Business Improvements Area" by: A. Changing the name to "Downtown San Rafael Business Improvement District" (the "BID"). B. Expanding the existing area boundaries to those shown on the enclosed Resolution of Intention Exhibit A Map, C. Changing the activities to which the assessment will used to those described on the enclosed Resolution of Intention Exhibit B Use of Assessment Revenue, D. Including_ all businesses (retail, restaurant, personal services, Financial institutions, offices, professionals and non -profits) except residential uses and home occupations in the District; E. Changing the assessment from one half of the Business License Fee to a flat fee by type of business in two zones of benefit as shown in the enclosed Resolution of Intention Exhibit C Annual Assessment Formula. The purpose of this Public Meeting is to take all public testimony, for or against the amendment of the BID or any of the matters included in the amendment; no action will be taken. Notice is hereby given that the San Rafael City Council will also hold a public hearing at their regularly scheduled City Council meeting on Monday, May 20, 2013 at 7 p.m. in the City Council Chambers of City Hall, 1400 Fifth Avenue, San Rafael on the proposed amendments to the "Downtown Parking and Business Improvements Area." At the public hearing, Council will take the testimony of all interested persons, for or against the amendment of the BID or any of the matters included in the amendment, and will collect all protests. At the conclusion of the hearing, Council will take action, and may approve or deny the amendment, make changes in the boundaries, the activities proposed, the businesses included and the assessments. Council may not add territory to the proposed boundaries or increase assessments beyond those stated in the Resolution of Intention. A protest against the amendment of the BID, or any aspect of the amendment, may be made orally or in writing. To be counted as a part of a majority protest against the amendment of the BID, a protest must be in writing and from a business owner in the BID. Written protests must be filed with the City Clerk, City Hall, 1400 Fifth Avenue, P4 Box 151560, San Rafael, 1400 Fr-,rH AVT-=iL E - Po BOX 151560 - SA -N RAFAEL, CA 94915-1560 'AkW1A'.CITYOFS.k RAFAEL.ORG Attachment CA 94915-1560 by May 20, or be submitted at the May 20 public hearing. A written protest may be withdrawn from the record at any time before the conclusion of the public hearing. Each written protest shall contain a written description of the business sufficient to identify the business and its address, and shall be signed by the business owner. If the person signing the protest isbot shown on the official records of the City of San Rafael as the owhier of the business, then the protest shall contain written evidence that the person signing is the owner of the business. Any written protest as to the regularity or sufficiency of the proceedings shall be in writing and clearly state the irregularity or defect to which objection is made. If at the conclusion of the public hearing there are written protests on record of businesses owners within the BID that will pay fifty percent (50%) or more of the total assessments of the entire BID, no firther proceedings to amend the BID shall occur, New proceedings to amend the BID shall not be undertaken again for a period of at least one gear ftoin the date of the finding of the mzjority written protest by the City Council. If the majority written protest is against a specific activity, inclusion of a specific area or type of business, or a specific assessment aniount, adjustments inay be made to The amendment proposal. Further information regarding thQ proposed Downtown San Rafael Business Improvement District may be obtained from the Office of Economic Development at 1313 Fifth Avenue, San Rafael, CA 949th, by telephone from the Office of Economic Development at 485- 3326 or by email at SRdo�vtitoNvnra)cit,iofsanrafacl,or�. A copy of the Resolution of Intention, Resolution No.13519, adopted by the City Council on M=b 18, 2013 and entitled "Resolution of the San Rafael City Council Declaring Council's Intention to Amend the Downtown Parking and Business Improvements Area" is enclosed. Esther C. Be me San Rafael City Clerk RESOLUTION NO. 13519 RESOLUTION OF THE SAN RAFAEL CITY COUNCIL. DECLARING COUNCIL'S INTENTION TO AMEND THE EXISTING DOWNTOWN PARKING AND BUSINESS IMPROVEMENTS AREA AND LEVY AN ASSESSMENT WHEREAS, the California Streets and Highways Code Section 36500 et seq. authorizes cities to establish parking and business improvement areas for the purpose of promoting economic revitalization and physical maintenance of business districts in order to create jobs, attract new businesses and prevent erosion of business districts; and WHEREAS, the existing San Rafael Business Improvement District has requested the City Council to amend the existing Parking and Business Improvements Area instituted in 1979 in the commercial area on and around Fourth Street in San Rafael. NOW THEREFORE BE IT RESOLVED by the City Council of the City of San Rafael as follows: Section 1. The City Council does, at the request of the existing San Rafael Business Improvement District, and pursuant to the California Streets and Highways Code Section 36500 et. seq., declare its intention to amend the existing "Downtown Parking and Business Improvements Area" by changing the name to "Downtown San Rafael Business Improvement District" (the "BID"); expanding the existing area boundaries; changing the activities to which the assessment will be used; including all businesses except residential uses and home occupations in the District; and changing the assessment to a flat fee by type of business in two zones of benefit. Section 2. The boundaries of the entire area to be included in the BID, and the boundaries of each separate benefit zone within the BID, are set forth in the map and boundary description, Exhibit A, attached hereto and incorporated herein by reference. A map of the BID is on file with the City Clerk. Section 3. The types of improvements and activities proposed to be funded by the levy of assessments on business in the BID are in Exhibit B attached hereto and incorporated herein by reference. Section 4. The City Council intends to levy an annual benefit assessment on businesses in the BID, except where funds are otherwise available, to pay for selected improvements and activities of the BID. Section 5. All funds of the BID shall be expended on improvements and activities within the BID. Section 6. The method and the basis for levying the benefit assessment on businesses within the BID are set forth in Exhibit C attached hereto and incorporated herein by reference. Section 7. New businesses shall not be exempt from payment of the fee. Section 8. A public meeting for the purpose of allowing public testimony on the proposal . to amend the BID shall be held before the City Council on May 6, 2013, at 7 p.m. in the Council Chambers, 1400 Fifth Avenue, San Rafael, California. At the public meeting the testimony of all interested persons, for or against the amendment of the BID or of any of the matters included in the amendment, will be heard. Section 9. A public hearing to amend the BID shall be held before the City Council on the May 20, 2013, at 7 p.m. in the Council Chambers, 1400 Fifth Avenue, San Rafael, California. At the public hearing the testimony of all interested persons, for or against the amendment of the BID or of any of the matters included in the amendment, will be heard and all protest collected. Section 10. A protest against the amendment of the BID, or any aspect of the amendment may be made orally or in writing. To be counted as a part of a majority protest against the amendment of the BID, a protest must be in writing and from a business in the BID. A written protest may be withdrawn from record at any time before the conclusion of the public hearing. Each written protest shall contain a written description of the business in which the person signing the protest is interested, sufficient to identify the business, and its address. If the person signing the protest is not shown on the official records of the City of San Rafael as the owner of the business, then the protest shall contain or be accompanied by written evidence that the person is the owner of the business. Any written protest as to the regularity or sufficiency of the proceedings shall be in writing and clearly state the irregularity or defect to which objection is made. Section 11. If at the conclusion of the public hearing there are of record written protests by businesses owners within the BID that will pay fifty percent (50°l0) or more of the total assessments of the entire BID, no further proceedings to amend the BID shall occur. New proceedings to amend the BID shall not be undertaken again for a period of at least one year from the date of the finding of the majority written protest by the City Council. If the majority written protest is against a specific activity, inclusion of a specific area or type of business, or a specific assessment amount, adjustments may be made to the amendment proposal. Section 12. Further information regarding the proposed Downtown San Rafael Business Improvement District may be obtained from the Office of Economic Development at 1313 Fifth Avenue, San Rafael, CA 94901; by telephone from the Office of Economic Development at 485- 3326; or email at SRdowiitowrit;,,cib -ofsaiirafael org. Section 13. The City Clerk is directed to give notice of said public hearing by causing this Resolution of Intention to be published once in a newspaper of general circulation in the City of San Rafael, at least seven days before the hearing; and by mailing a complete copy of this Resolution of Intention to each business owner in the District within seven days of the adoption of this Resolution by the City Council. 1, ES`l`llER C. I i:;IRNE, Clerk of the City of San Rafael, hereby certify that the foregoing Resolution -,,Nas duly and regularly introduced and adopted at a regular meeting of the City Council of the City of San Rafael, held on Monday, the 18th day of a arch, 2013, by the following vote, to wit: AYES: Councilmembers: Colin, Connolly, "eller, McCullough & Mayor Phillips NOES, C'ouncilmertabers: None ABSENT: : f. ouncilmembers: None il* S'I HER C. REIRN , City Clerk o D11:3 10 6 Downtown San Rafael Business Improvement District Use of Assessment Revenue The revenues derived from the assessments shall be used for the purposes as stated in Streets and Highways Code Section 36501 et seq. for the specific benefit of assessed businesses which may include: A. General promotion of businesses activities which provide a specific benefit to assessed businesses within the BID; B. Promotion of public events which provide a specific benefit to assessed businesses within the BID and which take place in public places within the BID; C. The acquisition, construction, installation and maintenance of any tangible property including but not limited to benches, trash receptacles, decorations and landscaping which provide a specific benefit to assessed businesses within the BID; D. Activities which provide a specific benefit -to assessed businesses within the BID. EXHIBIT C Downtown San Rafael Business Improvement District Annual Assessment Formula Type of Business Retail, Restaurant, Personal Services, Financial Institutions Offices, Professionals Personal Services Sole Practitioner Non -Profit Organization Annual Assessment Standard Premium $175 $225 $75 $100 $50 $75 $50 $50 CITY OF SAN RAFAEL INSTRUCTIONS: USE THIS FORM WITH EACH SUBMITTAL OF A CONTRACT, AGREEMENT, ORDINANCE OR RESOLUTION BEFORE APPROVAL BY COUNCIL / AGENCY. SRCC\SA AGENDA ITEM NO. 6. a DATE OF MEETING: May 6, 2013 FROM: Stephanie Lovette DEPARTMENT: Economic Development DATE: 2/27/07 TITLE OF DOCUMENT: REPORT AND RECOMMENDATION TO ACCEPT PUBLIC TESTIMONY ON CITY COUNCIL'S INTENTION TO AMEND THE EXISTING DOWNTOWN PARKING AND BUSINESS IMPROVEMENTS AREA AND LEVY AN ASSESSMENT DeparVnent Head (signature) (LOWER HALF OF FORM FOR APPROVALS ONLY) APPROVED AS COUNCIL / AGENCY APPROVED AS TO FORM: AGENDA ITEM: L jt - City -M anager (sigp'ature) City Attorney (signaturej R- u ' e � , ® e _ , ® ' _ ® , , � ' � ► , � � � � � � } , e , , � � ������m ������% � � � A , � _ _ _ v � � � z� � � � � �� � \d � � � < a � <� »� ; � � � _ � e ..�� _ :« �� � � ,\ �� ��. _ ` ' e _ ` e ■ ' � � \ \� � � _ , ' � \� , , � \.\ , _ , , - . ` . . ' § °«} • e , . , _ . , _ e »\� . . e � , ?«. � e � °2� � . El 11 0 9� p l ag. �F 'P x � E8 Ea 0 tto op 09 wr v�} x � » : § ■� � � . <■ a � � � m< , y , . � y . ... . + . . : z2«° » � � \ :/ � Im My name is Ann Brooks. I've been a studio artist at Art Works Downtown for fifteen years. First, I'd like to state my support for the direction the BID would like to take San Rafael's Downtown. I think our Fourth Street has great potential to be a much greater magnet than it currently is. My hat off to a forward looking City Council of several decades ago who hired George Girvin to design our street landscaping and furniture. However it is now time to bring our Downtown into the 21st century. This will benefit all the businesses in the area and needs to be paid for by those whose annual profits can support the necessary assessments. The studio artists at Art Works Downtown make a big contribution to culture in our downtown as they provide a year-round opportunity to visit them at work in their studios. The artists use their studios principally as a place to work and only occasionally as a retail venue. Most of these artists' annual gross sales is less than five figures. For some, it is less than four figures. A $50 BID assessment on top of the city's Business License Fee would be a hardship for many of these artists. I propose that the BID assessment for any studio artist in the downtown district remain one half of the income based Business License Fee. M