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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 File No.: 2A bf q 19 Council Meeting: l01/5?13ois Disposition: ►���� i roti /cto�S SAN RAFAEL CITY COUNCIL AGENDA REPORT / Pape: 2 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 P.] 0 .2 L V! E o ; as. 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. D9WNT9WIN STREETS■ UN 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 x< thm 12/31 IP Ur ��. oil 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.