TITLE
Recommendation to authorize City Manager, or designee, to sign the petition relating to City-owned properties located within the district to re-establish the Uptown Property and Business Improvement District. (Districts 8,9)
DISCUSSION
The State of California Property and Business Improvement District Law of 1994 (Section 33600 et seq. of the California Streets and Highways Code), and Article XIIID of the California Constitution (Proposition 218), enables the City of Long Beach (City) to create a property-based assessment district allowing property owners to voluntarily assess themselves for various services beyond those provided by the City, including enhanced maintenance, public safety, beautification, marketing, and economic development programs. All properties located within the boundaries of a property-based assessment district that receive special benefits, as determined by the Engineer’s Report, must be allocated a proportional share of the assessment.
The Uptown Property and Business Improvement District (UPBID) was initially established by the City Council on January 1, 2014. The contract set forth the duties of the parties under an annual Budget and Management Plan with respect to the use of property owner assessment funds within the UPBID area. The current UPBID contract terminates on December 31, 2018, and the property owners are now seeking to re-establish the UPBID for a term of ten years.
Re-establishment of the UPBID requires a majority vote of the property owners in favor of the proposed assessment for the new term. For the UPBID to be re-established and the contract renewed, petitions in support of re-establishment must first be signed by property owners within the UPBID boundaries who will pay more than 50 percent (based on assessment value) of the proposed assessments. Petitions have been delivered to each individual parcel owner within the UPBID. After the signed petitions representing more than 50 percent of the assessment proposed to be levied have been received by the City, the City Council may initiate proceedings by the adoption of a Resolution of Intent (ROI) to re-establish the UPBID, and set public hearings and issue ballots to each individual parcel owner.
The UPBID Management District Plan (MDP) details the latest boundaries of the UPBID, the amount of the method of assessment for each parcel, and the improvements and activities for which the assessment funds will be used (Attachment A).
Contained within the UPBID is Fire Station 12, the Michelle Obama Library, Houghton Park, and other parcels owned by the City. The City Council’s action to authorize the City Manager’s signature on the petition in favor of the UPBID’s re-establishment will contribute toward the requirement for more than 50 percent support needed to proceed to a vote of the property owners.
The City’s portion of the assessment amount is calculated by the special benefit received by the properties in accordance with their size and location. The calculation of the assessment is consistent with the MDP and the methodology detailed in the Engineer’s Report. The City’s anticipated assessment amount in the first year is estimated to be $40,880 (Attachment B).
If more than 50 percent support is represented in the petitions, petition results will be presented to the City Council, along with a proposed ROI, and a formal vote of the property owners (including the City) will be conducted in accordance with state law. This will include written notice of the proposed assessment to the record owners of all assessed parcels, a voting ballot, and a statement that a majority protest vote will prevent the assessment’s passage. The City will then conduct a public hearing upon the proposed assessment, not less than 45 days after mailing the notice to the record property owners, and consider all protests against the proposed assessment and tabulate the ballots. In tabulating the ballots, the ballots shall be weighted according to the proportional financial obligation of the affected property.
This matter was reviewed by Deputy City Attorney Amy R. Webber on April 30, 2018 and by Budget Analysis Officer Julissa José-Murray on May 4, 2018.
TIMING CONSIDERATIONS
The current UPBID contract terminates on December 31, 2018. City Council approval to sign the petition is needed at this time to allow completion of the renewal process within the time frames allowed under State law.
FISCAL IMPACT
The proposed recommendation affirms the City will sign the petition relating to City-owned properties in support of the re-establishment of the UPBID. Should the City’s affirmation and those of the other property owners within the district result in the re-establishment of the UPBID, the City-owned properties would be subject to assessment. If the UPBID is re-established, the City’s assessment for FY 19 is projected to be $40,880. This amount is based on the assessments of Houghton Park, Michelle Obama Library, Fire Station 12, and the other City-owned properties in the District. City departments have budgeted for the current assessment that will continue to be used to support an assessment. Approval of this recommendation will provide continued support to the local economy.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
JOHN KEISLER
DIRECTOR OF ECONOMIC DEVELOPMENT
APPROVED:
PATRICK H. WEST
CITY MANAGER