HomeMy WebLinkAboutED BID Annual Levy Assessment 2015Agenda Item No: 3. c
Meeting Date: October 19, 2015
SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: Economic Development
Prepared by: Tom Adams, City Manager Approval:
Economic Development Specialist
TOPIC: Setting of Public Hearing for Annual Renewal of the BID Assessment
SUBJECT: Resolution of the San Rafael City Council Accepting the Annual Report of the
Downtown San Rafael Business Improvement District (BID), Declaring City Council's
Intention to Levy an Annual Assessment for the Downtown San Rafael Business
Improvement District, and Setting the Public Hearing for November 2, 2015.
RECOMMENDATION:
Adopt Resolution.
BACKGROUND:
Section 36500 of the California Streets and Highways Code allows for the creation of a business
improvement district within a municipality whereby businesses within the district self -assess themselves
an annual fee in order to pay for improvements and activities which benefit the overall business district.
The intent of the state law is to provide a funding mechanism for business districts to promote
economic vitality and provide additional services beyond those offered by local government.
Businesses within the San Rafael downtown initially set up a business district in 1979 — this original
district included approximately 125 businesses along Fourth Street between Lincoln and E Street. In
2013, the City Council voted to disband the original downtown district and replace it with a larger district
of approximately 700 businesses along Fourth Street — the expanded district includes the West End
and some side streets, as well as non -ground floor tenants, and other tenants not included in in original
BID (see Exhibit A for BID Map).
The assessments for the new BID were mailed in December 2013 and the new BID organization began
operations in 2014. The new BID has been very active in numerous programs to improve the downtown
business climate. The Annual Report of the BID for 2016, like last year, focuses on the following areas:
building the BID organization and working with its membership on developing priorities, increasing the
effectiveness of marketing and events, promoting economic development, and working with the City to
FOR CITY CLERK ONLY
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address various issues related to parking, safety, cleanliness, and social issues. (See Exhibit B of the
attached Resolution for the BID Annual Report).
ANALYSIS:
Per state law, in order to renew the annual assessment, the City Council must first adopt a 'Resolution
of Intention to Levy an Annual Assessment' and set a public hearing for a future date. In accordance
with state law, the annual renewal process for the BID assessment will take place at two city council
meetings as follows:
Meeting #1 - October 19, 2015: Resolution Accepting Annual Report and Declaring Intention to Levy
an Annual Assessment.
This meeting is intended to notify the public of the annual BID assessment process. The only
City Council action required is to accept the BID annual report, adopt the resolution of intention to levy
an annual assessment, and set a public hearing on the BID assessment. These actions do not commit
the City Council to any ultimate decision other than initiating the annual BID assessment renewal
process.
Meeting #2 — November 2, 2015: Public Hearing on Annual Assessment
This purpose of this meeting is to receive additional input from the public on the proposed
annual assessment for the BID and to determine whether to confirm the levy of an assessment for the
upcoming year as proposed in the Annual Report.
COMMUNITY OUTREACH:
The BID will take the initiative to notify its members of the annual renewal through its member
communications such as the BID e -newsletter, notifications on the BID website, and through agenda
items at the monthly BID Board meeting. In addition, state law requires a certain level of public
notification of the annual assessment. Per state law, the City will publish the Resolution of Intention to
Levy an Annual Assessment in the newspaper prior to the public hearing.
FISCAL IMPACT:
Adoption of the resolution does not have a direct impact on the City other than some ongoing staff time
related to assessment billing and processing and administration of the annual renewal. To the extent
that the BID activities enhance the business climate within the district, this will generate increased sales
tax revenue for the City.
OPTIONS:
The City Council has the following options to consider on this matter:
1) Adopt the resolution (Staff recommendation).
2) Direct staff to modify the resolution.
3) Direct staff to return with more information. Note: This is a time sensitive item as the Finance
Department mails business license renewals and BID assessments in December.)
4) Decline to adopt the resolution and take no action.
RECOMMENDED ACTION:
Adopt resolution accepting Annual Report and declaring City Council's intention to levy an annual
assessment for the Downtown San Rafael Business Improvement District.
ATTACHMENTS:
Resolution with Exhibit A: BID Map, Exhibit B: Annual Report, and Exhibit C: Assessment Formula
RESOLUTION NO. 14025
RESOLUTION OF THE SAN RAFAEL CITY COUNCIL ACCEPTING THE ANNUAL
REPORT OF THE DOWNTOWN SAN RAFAEL BUSINESS IMPROVEMENT
DISTRICT, DECLARING THE COUNCIL'S INTENTION TO LEVY AN ANNUAL
ASSESSMENT FOR THE DOWNTOWN SAN RAFAEL BUSINESS IMPROVEMENT
DISTRICT, AND SETTING THE PUBLIC HEARING FOR NOVEMBER 2, 2015
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 Downtown San Rafael Business Improvement District ("BID") was
established in 2013 to amend the existing Parking and Business Improvements Area instituted in
1979 in the commercial area on and around the Fourth Street corridor in San Rafael, the
boundaries of which BID, including the premium benefit zone and the standard benefit zone
therein, are set forth in the map attached hereto as Exhibit A, incorporated herein by reference, a
copy of which is on file with the City Clerk; and
WHEREAS, pursuant to San Rafael Municipal Code Chapter 10.09 and the California
Streets and Highways Code Section 36533, the Board of Directors of the BID has prepared an
annual report attached hereto as Exhibit B, a copy of which is on file with the City Clerk, in
which assessments are proposed to be levied in the BID for calendar year 2016;
NOW THEREFORE BE IT RESOLVED by the City Council of the City of San Rafael as
follows:
Section 1. The City Council accepts the BID annual report for 2016 attached as Exhibit
B, and declares its intention to levy an annual benefit assessment on businesses in the BID as
shown on Exhibit A, to pay for selected improvements and activities of the BID as described in
Exhibit B.
Section 2. The types of improvements and activities proposed to be funded by the levy of
assessments on businesses in the BID are described in Exhibit B.
Section 3. 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 4. All funds of the BID shall be expended on improvements and activities within
the BID.
Section 5. New businesses shall not be exempt from payment of the assessment.
Section 6. A public hearing to levy the BID assessment shall be held before the City
Council on November 2, 2015, 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 levy of the BID assessment or of any of the matters included in the assessment, will be heard
and all protests collected.
Section 7. A protest against the assessment of the BID, or any aspect of the assessment
may be made in writing or orally at the public hearing. To be counted as a part of a majority
protest against the assessment 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 of the regularity of the proceedings
shall be in writing and clearly state the irregularity or defect to which objection is made.
Section 8. If at the conclusion of the public hearing on November 2, 2015 there is a
record of written protests by business owners within the BID that will pay fifty percent (50%) 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 9. Further information regarding the Downtown San Rafael Business
Improvement District may be obtained from the Office of Economic Development at 1313 Fifth
Avenue, San Rafael, CA 94901.
Section 10. The City Clerk is directed to give notice of said public hearing by publishing
the notice 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 those
interested parties who have filed a written request with the local agency for mailed notice of
public meetings or hearings on new or increased general taxes.
I, ESTHER C. BEIRNE, Clerk of the City of San Rafael, hereby certify that the
foregoing Resolution was duly and regularly introduced and adopted at a regular meeting of the
City Council of the City of San Rafael, held on Monday, the 19th day of October, 2015, by the
following vote, to wit:
AYES: Councilmembers: Bushey, Colin, Gamblin, McCullough & Mayor Phillips
NOES: Councilmembers: None
ABSENT: Councilmembers: None
ESTHER C. BEIRNE, City Clerk
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Downtown San Rafael in the 21 st Century:
What is it? And what will it become as our
economy evolves and brick and mortar retailing
becomes more about the experience than
access to product? Is it a destination for arts and
entertainment? How does our downtown retain
its role as the central public gathering place for
our community? Is downtown relevant to the next
generation of residents? How do we communicate
our strengths, our history, our values to our
residents and visitors passing through?
In essence, these are the questions the Downtown
Business Improvement District wrestles with in
our effort to promote a vibrant downtown. Our
mission - to promote the common interests of our
business owners - by and large, can be distilled to
one singular goal: bring more people downtown.
How do we do this? What resonates authentically
with our community?
Distill this idea further and one lands right into
the heart of our efforts: make it attractive, easily
accessible and, above all, a desirable place to spend
time. All the while, do our best to promote our
assets.
As we head into 2016, it is clear that our success
depends largely on leveraging our limited capacity in
addressing the most pertinent issues. Working with
the city and collaborating with partner organizations
is critical. We encourage our members to be an
active part of this effort.
Tom Santamorena
President
BID Accomplishments 2015
Organization
Purpose: To promote BID to stakeholders and the community,
and to ensure that organizational foundation is strong and
financial management is prudent.
Monthly happy hours are held every third Thursday,
providing opportunity for BID members to connect. Each
mixer has attracted different BID members and attendance is
growing.
Regular e -newsletters and announcements keep BID members
informed about BID activities and downtown news. Printed
quarterly'digests'are distributed to
many ground -floor tenants.
BID continues to collaborate with
downtown stakeholders and community
partners. Participating in mixers with the
San Rafael Chamber of Commerce and
Renaissance Center.
Economic Development
Purpose: To strengthen retail and
business environment and advocate
on ordinances and policies that affect
downtown businesses.
Parking Sub Committee: To promote
parking as an economic development
tool that supports the downtown
business economy, and to improve user
experience.
• Worked with parking services
to create a'let us help you avoid
parking ticket' information piece to
communicate other convenient and
cost-effective parking options while
visiting downtown.
In response to member requests,
advocated for expanding parking
limits at Fourth Street meters. City
extended parking meters in lot at
1515 Fourth Street to four hours,
deferring further consideration
to conclusion of comprehensive
parking study being carried out
summer/fall 2015.
In November 2014, BID requested
elimination of requirement for
validation tickets during holiday
parking, standardizing free three-
hour parking in all lots and garages
during December. This created a clearer message to
promote holiday shopping in downtown.
• Worked with parking services to relocate 60 downtown
employees from the former PG&E lot leased to the BID. At
BID request, 10 all -day permit parking spaces were added
at 5th and C street, and 20 spaces were added to upper
deck of Lootens and Third.
• Marketing: The BID's downtown parking webpage is the
third most common landing page on our website, and is
the number one hit for google searches for downtown
parking information in San Rafael.
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Make a Difference Every Day
Thank You
The lallowing businesses and individuals
generously sponsomd today's lunch
Yet Wah
James Rose Salon
Brewer Phillips Hair Design
Marelli Brothers Shoe Repair
Rotary Club of Marin Evening
Bangkok Thai Express
Fourth Street Press
Cory Bytof
Greg & Linda Gener
Vin Antico
City of San Rafael - Economic Development Staff
Art Works Downtown
Don Magdanz
Katherine K. Powers
Raffles Fans
Barbara Lawrence
Dharma Trading Company
Tracy O Schmidt, Ph.D., Clinical Psychologist
Downtown Business Improvement District
Free 3 -Hour Parking
All City Lots & Garages
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www.downtownsanrafael.org SNOps. DINING r_ ENTERTAINMENT
Safety Sub Committee: To facilitate
ongoing communication between
members and SRPD and to work with
City and community partners to reduce
or eliminate issues that affect the overall
hospitality of our downtown.
• Advocated in support of City's
effort toward closure of illicit businesses
using cover of massage establishments.
Sent letters to property owners of tenants
that were cited for multiple violations,
requesting discontinuation of leases.
Listened to concerns of our members
who are licensed massage therapists and
advocated for code enforcement to be
the primary tool used to weed out illegal
behavior.
• Hosted a BID member-sponsorsed
lunch for Downtown Streets Team (DST)
members at Yet Wah and raised money
from BID members for team, contributing
a total of $1750 to DST in 2015.
Business Retention/ Recruitment:
Collaborated with the Center for
Independent Living, the City of San
Rafael, and the Chamber of Commerce to
present'Creating Access for All - Not Just
Goodwill, It's Good Business'workshop
for businesses and property brokers.
Participated and promoted to members
the'Access to Capital'event presented by
the Small Business Development Center,
Renaissance Center, and Chamber of
Commerce.
Retail Recruitment: Contributed funding
to retail recruitment study, in partnership
with City's economic development
department. Worked on initial phase of
retail recruitment strategy, inviting BID
members to participate on steering committee. Project is in
progress.