TITLE
Recommendation to authorize City Manager, or designee, to sign the petition, and subsequent ballot, relating to City-owned properties located within the boundaries of the Midtown Property and Business Improvement District. (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 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.
Property owners of record along Anaheim Street, between Raymond Avenue and Alamitos Avenue, are circulating a petition to initiate special assessment proceedings to renew the Midtown Property and Business Improvement District (MBID). Upon the submission of a written petition signed by the property owners in the proposed district who pay more than 50 percent of the assessment proposed to be levied, the City Council may initiate proceedings to renew the district by the adoption of a Resolution of Intention (ROI) to re-establish the district, and to set a public hearing and issue ballots to each individual parcel owner. As a part of this effort, the City has been requested to sign the petition for the parcels owned by the City located within the proposed MBID boundaries.
The MBID Management District Plan (MDP) (Attachment A) details the boundaries of the MBID, the amount and method of assessment for each parcel, and the improvements and activities for which the assessment funds will be used.
If renewed, the MBID will have a ten-year life. Related special assessments will begin July 1, 2020 and continue through June 30, 2030. Related special benefit services will begin January 1, 2021, and end December 31, 2030. The City Council will annually review and consider approving renewal of the levy, budgets, and reports as submitted by the MBID. The assessment methodology is projected to generate approximately $158,944 in revenue during the first year. Property owned by the City will be assed $22,500. A summary of the City’s parcels and assessments is attached (Attachment B).
The MDP proposes that the Midtown Property and Business Owner’s Association (MPBOA) govern the MBID and serve as the Owners’ Association per the California Streets and Highways Code Section 36651. The MPBOA Board of Directors are required to adhere to the Ralph M. Brown Act. Pursuant to the Streets and Highways Code, Section 36650, the MPBOA will also provide the City an Annual Report. The City would pay its assessment as a parcel owner for the duration of the MBID.
This matter was reviewed by Deputy City Attorney Amy R. Webber on July 13, 2020.
TIMING CONSIDERATIONS
The current MBID terminates on December 31, 2020. City Council approval to sign the petition is needed at this time to allow completion of the renewal process within the timeframes allowed under State law.
FISCAL IMPACT
If the MBID is approved and re-established, the $22,500 annual cost to City is budgeted in the Economic Development Department ($5,676), Parks, Recreation, and Marine Department ($12,703), and Library Services Department ($4,120). Upon annual review, the City Council can increase the property assessment up to 4 percent. This recommendation has no staffing impact beyond the normal budgeted scope of duties and is consistent with existing City Council priorities. There is no local job impact associated with this recommendation. No Financial Management review was able to be conducted due to the urgency and time sensitivity of this item.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
JOHN KEISLER
DIRECTOR OF ECONOMIC DEVELOPMENT
APPROVED:
THOMAS B. MODICA
CITY MANAGER