TITLE
Recommendation to approve the Uptown Property and Business Improvement District Annual Report and Assessment for the period of January 1, 2017 through December 31, 2017, automatically extending the current agreement with the Uptown Property and Community Association for a one-year period; and, authorize payment of $54,561 in City property assessments from the General Fund (GF) and $3,668 in City property assessments from the Successor Agency Fund (SA). (Districts 8,9)
DISCUSSION
Pursuant to the Property and Business Improvement Law of 1994 (Law), the Uptown Property and Business Improvement District (UPBID) was established by the City Council in 2013 for a five-year period. Under the Law, Uptown Property and Community Association (UPCA) property owners assess themselves an additional fee to pay for various services beyond those provided by the City, including enhanced maintenance, public safety, beautification, marketing, and economic development programs.
The 1994 Law requires that the UPCA Advisory Board approve and file an Annual Report describing their projected budget and expenditures. The Fiscal Year (FY 17) Annual Report is attached for City Council approval. The levy of assessment will cover the period of January 1, 2017 through December 31, 2017.
The Board-approved UPBID rate of assessment is based on parcel size and use, as shown on Page 6 of the attached Annual Report. The UPBID Management Plan allows up to a 4 percent per year cost-of-living increase in the assessment rate. For FY 17 the UPBID Board voted to maintain the assessment at the same rate as FY 16.
Method of Assessment
The UPBID assessment area contains properties owned by private commercial owners and the City of Long Beach. In FY 17, properties over 20,000 square feet up to 100,000 square feet are assessed an annual amount of $0.09 per square foot. Properties less than 20,000 square feet will be assessed at a rate no greater than $0.08 per square foot. Properties larger than 100,000 square feet will be assessed an annual amount of $0.10 for each square foot. The total property assessment to be collected by the City and paid to the UPBID for the period of January 1, 2017 through December 31, 2017 is estimated at $180,772. A portion of the proposed assessment is attributable to City-owned parcels and will be paid from the City’s General Fund. The total proposed FY 17 assessment for the parcels owned by the City is $54,561.
The Successor Agency will pay its assessment as a Parcel Owner until such time as the Successor Agency’s parcels located within the UPBID boundaries are transferred. The total proposed FY 17 assessment for parcels owned by the Successor Agency is $3,668.
The table below shows the assessment rates effective for FY 17. The rates have not changed since the formation of the UPBID.
|
Parcel Land Use Type |
Assessment Rate per Lot Sq Ft |
|
Large Parcels with Commercial uses >100,000 square feet |
$0.1000 |
|
Medium Parcels with Commercial uses 20,000 to 100,000 square feet |
0.0900 |
|
Small Parcels with Commercial uses <20,000 square feet |
0.0800 |
|
Parcels with Apartments |
0.0350 |
|
Parcels with Parks |
0.0200 |
|
Parcels occupied by Educational Institutions |
0.0050 |
|
Parcels with Mobile Homes |
0.0010 |
|
Parcels with Residential uses |
Not Assessed |
The Law also allows the City to contract with service providers to carry out the UPBID Program. Since 2013, the City has contracted with UPCA to carry out the UPBID programs. The current agreement provides that the term be automatically extended on a year-to-year basis upon City Council approval of the Assessment Report (included in the Annual Report) and related levy of assessments.
This matter was reviewed by Deputy City Attorney Amy R. Webber on November 14, 2016 and by Budget Analysis Officer Julissa José-Murray on November 17, 2016.
TIMING CONSIDERATIONS
The UPBID’s 2016 contract ends on December 31, 2016. City Council approval of the Annual Report and Assessment is requested on December 6, 2016, to continue the assessment and extend the contract for another year.
FISCAL IMPACT
It is estimated that the UPBID will generate $180,772 in FY 17 through the proposed assessment. Sufficient funds are included in the FY 17 Budget in the Parking and Business Area Improvement Fund (SR 132) in the Economic and Property Development Department (EP), for City pass-through payments to UPBID.
The estimated UPBID revenue includes a FY 17 assessment of $54,561 for City-owned parcels to be paid from the General Fund (GF). Of that amount, $23,340 is budgeted in the Economic and Property Development Department (EP), $22,782 is budgeted in the Parks, Recreation and Marine Department (PR), $4,807 is budgeted in the Fire Department (FD), and $3,633 is budgeted in the Library Services Department (LS). The estimated UPBID revenue also includes a FY 17 assessment of $3,668 to be paid by the Successor Agency Fund (SA 270), which is budgeted in the Development Services Department (DV). Approval of this recommendation will provide continued support to the local economy.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
KATHRYN MCDERMOTT
INTERIM DIRECTOR OF
ECONOMIC & PROPERTY DEVELOPMENT
APPROVED:
PATRICK H. WEST
CITY MANAGER