TITLE
Recommendation to adopt Resolution of Intention to establish the Midtown Business Improvement District; set the date of Tuesday,
August 11, 2015 at 5:00 p.m. for a Public Hearing; receive petitions; return the City's Ballot; and designate the Administrative Board.
(Districts 4,6)
DISCUSSION
The State of California Property and Business Improvement District Law of 1994 (Section 33600 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, including public safety, beautification, marketing, and economic development programs.
Property owners of record along E. 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 known as the Midtown Business Improvement District (MBID). The new Business Improvement District shall be comprised of property owners within the proposed boundaries, as described later in this report. The MBID Management District Plan (MDP) (attached to the Resolution as Exhibit "A") includes the Engineers Report and 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 established, the MBID shall commence on January 1, 2016, for the initial period of January 1, 2016 through December 31, 2020, and 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 $161,501 in revenue during the first year. Property owned by the City of Long Beach will be assessed $19,125; property owned by the Successor Agency will be assessed $6,631; and property occupied by Long Beach Transit will be assessed $39,949. The details of the City's parcels and assessments are described in the MDP and a map of the proposed MBID is attached. Upon annual review, the City Council can increase the levy up to 4 percent. If the levy is not renewed, a subsequent public hearing must occur to dis-establish the MBID.
The Midtown Property and Community Association (MTPCA) will govern the MBID, and shall serve as Owner's Association per the California Streets and Highways Code Section 36651. The MTPCA 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 MTPCA will also provide an annual report to the City. A portion of the proposed assessment is attributable to City-owned parcels and would be paid from the City's General Fund going forward. It is anticipated that parcels currently owned by the Successor Agency will be in escrow for sale at the time of assessment, and reimbursement of any monies paid by the Successor Agency (or in its stead, the City) will be reimbursed at the close of escrow.
This matter was reviewed by Deputy City Attorney Amy R. Webber and by Budget Management Officer Victoria Bell on June 1, 2015.
TIMING CONSIDERATIONS
City Council action is requested on June 16, 2015 in order to set the public hearing and ballot tabulation date for August 11, 2015.
FISCAL IMPACT
If the MBID is approved and established, the annual General Fund (GF) cost of $14,490 for Parks, Recreation and Marine (PRM), and $4,635 for the Library is unbudgeted. The proposed assessment for all Successor Agency-owned parcels in the MBID is estimated at $6,631 annually. Upon annual review, the City can increase the levy up to 4 percent.
SUGGESTED ACTION
Approve recommendation.
BODY
A RESOLUTION OF INTENTION OF THE CITY COUNCIL OF THE CITY OF LONG BEACH DECLARING THE INTENTION OF THE CITY COUNCIL TO ESTABLISH THE MIDTOWN BUSINESS IMPROVEMENT DISTRICT, FIXING THE TIME AND PLACE OF A PUBLIC HEARING THEREON AND GIVING NOTICE THEREOF
Respectfully Submitted,
MICHAEL P. CONWAY, DIRECTOR
DEPARTMENT OF ECONOMIC AND PROPERTY DEVELOPMENT
APPROVED:
PATRICK H. WEST
CITY MANAGER