TITLE
Recommendation to approve the Uptown Property and Business Improvement District Annual Report continuing the property assessment for the period of January 1, 2021 through December 31, 2021, automatically extending the current agreement with the Uptown Property and Community Association for a one-year period; and, authorize the payment of $26,046 in City property assessments from the General Fund Group. (Districts 8,9)
DISCUSSION
The Uptown Property and Business Improvement District (UPBID) was established by the City Council in 2013 for an initial term of five years. The UPBID was renewed in 2018 for a term of ten years. The City of Long Beach (City) contracts with Uptown Property and Community Association (UPCA) to manage the UPBID and the UPCA Board of Directors serve as the Advisory Board to the City Council on matters related to the UPBID. UPCA utilizes the UPBID funding to provide enhanced maintenance, security, and marketing above and beyond the services provided by the City.
State law governing Property and Business Improvement Districts requires that an annual report be submitted to the City Council by the Advisory Board designated for this Assessment District. The UPBID 2020-2021 Annual Report (Annual Report) (Attachment) describes the boundaries, proposed activities, and budgetary information, as well as the method and basis for continuation of the assessment. The Annual Report proposes no change to the UPBID boundaries, the method of assessment, and activities.
The Annual Report, transmitting the recommendations of the Advisory Board, proposes the following assessment rates:
Method of Assessment
The UPBID assessment is computed based on three primary parcel characteristics: (1) land use type, (2) linear frontage, and (3) lot square footage. Each parcel’s special benefit points are calculated as follows:
|
Parcel’s Linear Factor + Parcel’s Lot Factor |
X |
Parcel’s Special Factor |
X |
Parcel’s Total Benefit Points |
The original maximum rate per Special Benefit Point is $42.36864.
Parcel Factors
Each parcel’s Linear Factor is computed by dividing the parcel’s specific linear frontage by the median frontage at the time of formation, 45 feet.
Each parcel’s Lot Factor is computed by dividing the parcel’s specific lot square footage by the median lot square footage at the time of formation, 4,792 square feet.
Special Factors
Certain mobile home, apartment, and school properties were assigned a Special Factor to account for special circumstances related to distance from the improvements and the nature of the land use. Details about these factors can be found in the June 2018 Formation Engineer’s Report for the UPBID.
Total Benefit Points
The Total Benefit Points assignment for each property land use is shown in the following table:
|
Property Land Use |
Aesthetic Benefit Points |
Safety Benefit Points |
Economic Benefit Points |
Total Benefit Points |
|
Commercial Property |
1.00 |
1.00 |
3.00 |
5.00 |
|
Apartment Property |
1.00 |
1.00 |
2.00 |
4.00 |
|
Undeveloped Property |
1.00 |
1.00 |
1.50 |
3.50 |
|
Single-Family Residential Property |
1.00 |
1.00 |
0.00 |
2.00 |
|
Mobile Home Park Property |
1.00 |
1.00 |
0.00 |
2.00 |
|
Public/Church Property |
1.00 |
1.00 |
0.00 |
2.00 |
This matter was reviewed by Deputy City Attorney Amy R. Webber on February 9, 2021 and by Budget Management Officer Rhutu Amin Gharib on February 16, 2021.
TIMING CONSIDERATIONS
City Council action is requested on March 9, 2021, so that FY 21 assessment transfers may be made as required by the Agreement for Funding with UPCA.
FISCAL IMPACT
It is estimated that the UPBID will generate $177,357 in FY 21 through the proposed continuation of the assessment. Assessment funds are collected through additional fees attached to property owner assessment payments in the UPBID area. All revenues are distributed directly to UPCA for implementation of annual programs.
The total City share of the UPBID assessment for FY 21 is $26,046. Sufficient funds are budgeted in the General Fund Group in the Library Services Department, the Parks, Recreation, and Marine Department, and the Fire Department to cover the costs of the assessment. 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.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
JOHN KEISLER
DIRECTOR OF ECONOMIC DEVELOPMENT
APPROVED:
THOMAS B. MODICA
CITY MANAGER