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 Downtown Long Beach Property and Business Improvement District. (Districts 1,2)
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 be assessed for various services beyond those provided by the City, including enhanced maintenance, public safety, beautification, marketing, and economic development programs.
The Downtown Long Beach Property and Business Improvement District (DLBPBID) was established by the City Council in 1998 for a term of five years. The DLBPBID was renewed in 2003 for a term of ten years, and, again in 2012 for an additional ten-year term. Property owners of record in Downtown Long Beach (Downtown) and the Downtown Long Beach Alliance (DLBA) are circulating a petition to initiate special assessment proceedings to renew the DLBPBID for a third ten-year term. The DLBPBID renewal is required to build on the successes accomplished in Downtown due in part to the special assessment revenue generated by the DLBPBID. Since 2012 when the DLBPBID was last renewed, the DLBA has leveraged DLBPBID special assessment revenue to host over 130 signature events, beautify public space by removing approximately 51,000 stickers and instances of graffiti, updating wayfinding signage, and providing routine power washing, create 27 temporary parklet spaces and support 11 sidewalk dining permits, expand support for people experiencing homelessness, and provide over $700,000 in grant funding to support small businesses and advance placemaking.
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 establish the district and to set a public hearing and issue ballots to each parcel owner. As part of this effort, the City has been requested to sign the petition for the parcels owned by the City located within the proposed DLBPBID boundaries.
The DLBPBID Management District Plan (MDP) (Attachment A) details the boundaries of the DLBPBID, the amount and method of assessment for each parcel, and the improvements and activities for which the assessment funds will be used. The MDP was informed by a strategic planning process undertaken in the first half of 2021 by the DLBA that included input from interviews, roundtable discussions, leadership meetings, and an online survey from more than 500 Downtown stakeholders. The strategic planning process was designed and implemented under the guidance of a 35-member committee and DLBA Board of Directors.
The MDP proposes to expand the DLBPBID to the north along the Pacific Avenue corridor to 8th Street and to include the Convention Center building and major walkways in the Rainbow Harbor area. The inclusion of these areas will help support a seamless Downtown visitor experience with continuity of clean services. In addition, Safety Ambassador patrols through areas such as Rainbow Harbor and the Rainbow Lagoon walkways will allow for visitor interaction for directional and hospitality services. Additionally, assessment rates are projected to increase across all parcels that will be levied for the DLBPBID assessment by an average of 34.5 percent. The increase in the assessments is driven by several factors, such as the need for expanded sidewalk pressure washing services, the hiring of a Homeless Outreach Manager to collaborate with social service agencies, local nonprofits, and City departments, increasing pay for the Clean and Safe to assist with retaining talent in a competitive labor market, and the hiring of a Business Navigator to expand support for businesses.
If renewed, the DLBPBID will have a ten (10) year life. Related special assessments will begin July 1, 2022, and continue through June 30, 2032. Related special benefit services will begin January 1, 2023, and end December 31, 2033. The City Council will annually review and consider approving the renewal of the levy, budgets, and reports as submitted by the Owner’s Association for the DLBPBID. The assessment methodology is projected to generate approximately $3,782,348 in revenue during the first year. Property owned by the City will be assessed at $785,156. A summary of the City’s parcels and assessments is attached (Attachment B).
The MDP proposes that the DLBA would manage the DLBPBID under contract with the City and shall serve as the Owners’ Association per the California Streets and Highways Code Section 36651. The DLBA Board of Directors is required to adhere to the Ralph M. Brown Act. Pursuant to the Streets and Highways Code, Section 36650, the DLBA will also provide the City with an Annual Report. The City would pay its assessment as a parcel owner for the duration of the DLBPBID.
This matter was reviewed by Deputy City Attorney Richard Anthony on February 15, 2022, and by Budget Operations and Development Officer Rhutu Amin Gharib on March 3, 2022.
TIMING CONSIDERATIONS
The current DLBPBID terminates on December 31, 2022. 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
If the DLBPBID is approved and renewed, the estimated total annual City share of the DLBPBID assessment for FY 23 will be $785,156, an increase of $180,983 over the current assessment. This increase is due in part to the proposed expansion of the DLBPBID to include the frontage along the Convention Center building and major walkways in the Rainbow Harbor area.
Of the total amount, $220,484 will pass through the City and be paid by property management contractor Site Centers for the Pike property development. The remaining assessment of $564,672 will be paid by various City departments for properties in the General Fund Group, Civic Center Fund Group, Successor Agency Fund Group and Tidelands Operating Fund Group in the amounts of $253,869, $108,343, $1,189 and $201,271, respectively. Specific impacts at the department level are under review and will be presented to the City Council should the DLBPBID be approved and renewed. Upon annual review, the City Council can increase the property assessment up to five (5) 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 fiscal or 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