TITLE
Recommendation to receive supporting documentation into the record, conclude the hearing to consider the establishment of the Midtown Business Improvement District (MBID); direct the City Clerk to tabulate the ballots and report the results of the tabulation to the Mayor and City Council during the August 11, 2015 meeting; and, if a majority of ballots received are in favor of the establishment of the MBID, adopt resolution to establish the MBID for an initial term of five (5) years, effective January 1, 2016 through December 31, 2020. (Districts 4,6)
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 to create a property-based assessment district allowing property owners to voluntarily assess themselves for various services beyond those provided by the City. These services include enhanced maintenance, public safety, beautification, marketing, and economic development programs.
Property owners of record along East Anaheim Street, between Raymond Avenue and Alamitos Avenue, who will pay more than 50 percent of the proposed assessment, have submitted petitions to the City for the establishment of a business improvement district to be identified as the Midtown Business Improvement District (MBID). The new Business Improvement District shall be comprised of property owners within its proposed boundaries. The MBID Management District Plan (MDP) (Attachment A to this Council Letter and Exhibit A to the Resolution) details the boundaries of the MBID, and the improvements and activities for which the assessment funds will be used, and the MBID Engineer’s report (Attachment B) details the amount and method of assessment for each parcel.
If established, the MBID shall commence on January 1, 2016, for the initial five-year period of January 1, 2016 through December 31, 2020, and the City Council will annually review and consider approving the renewal of the levy, budgets and reports as submitted by the MBID. The assessment methodology will generate approximately $161,501 in revenue during the first year. The proposed assessment for all City-owned parcels in the MBID is estimated at $65,705 annually (a detail of each parcel assessment is found in the MDP). Property formerly owned by the Successor Agency will be assessed $6,631, which is anticipated to be paid by the buyers of the property. If the property does not timely close escrow and City funds are used to pay the assessment, these funds will be recouped through escrow from the sales proceeds. The assessment for the Parks, Recreation and Marine property will be $14,490 and $4,635 for the Library property. Property occupied by Long Beach Transit will be assessed at $39,949. Upon annual review, City Council may increase the levy up to 4 percent. If the levy is not renewed, a subsequent public hearing must occur to disestablish the MBID.
The Midtown Property and Business Owners Association (MPBOA) will govern the MBID, and shall serve as the Owner’s Association, pursuant to California Streets and Highways Code Section 36651. The MPBOA Board of Directors will be comprised of a majority of parcel owners paying the assessment that will adhere to the Ralph M. Brown Act requirements. Pursuant to the Streets and Highways Code, Section 36650, the MPBOA will also provide an annual report to the City.
As approved by City Council action on June 16, 2015 (Number RES-15-0075), and to comply with the California Constitution, a notice of assessment and an assessment ballot were mailed to property owners who are proposed to be assessed. At the conclusion of this public hearing, an independent third party will tabulate the votes, and will return to City Council later during this August 11, 2015 meeting to announce the results. If a majority of ballots received (with ballots weighted by assessment amounts) are in favor of the establishment of the MBID, the City Council may proceed with the adoption of the Resolution establishing the MBID. If a majority of the ballots received do not support the establishment of the MBID, then the MBID cannot be established.
This matter was reviewed by Deputy City Attorney Amy R. Webber on July 13, 2015 and by Budget Manager Victoria Bell on July 24, 2015.
TIMING CONSIDERATIONS
City Council action is requested on August 11, 2015 in order to submit all parcel information to the County of Los Angeles Assessor’s Office.
FISCAL IMPACT
If the MBID is approved and established, the proposed assessment for all City-owned parcels in the MBID is estimated at $65,705 annually (a detail of each parcel assessment is found in the MDP). Property formerly owned by the Successor Agency will be assessed $6,631, which is anticipated to be paid by the buyers of the property. If the property does not timely close escrow and City funds are used to pay the assessment, these funds will be recouped through escrow from the sales proceeds. Property occupied by Long Beach Transit will be assessed $39,949. The annual General Fund (GF) cost of $14,490 for Parks, Recreation and Marine (PRM), and $4,635 for the Library is currently included in the FY 16 Proposed Budget. Upon annual review, the City may increase the levy up to 4 percent.
SUGGESTED ACTION
Approve recommendation.
BODY
[Enter Body Here]
Respectfully Submitted,
MICHAEL P. CONWAY, DIRECTOR
DEPARTMENT OF ECONOMIC AND PROPERTY DEVELOPMENT
APPROVED:
PATRICK H. WEST
CITY MANAGER