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HomeMy WebLinkAbout05 - Corona del Mar Business Improvement District (BID) RenewalCITY OF NEWPORT BEACH O�e'�Rr COMMUNITY AND ECONOMIC Hearing Date: July 23, 2002 O DEVELOPMENT U` PLANNING DEPARTMENT Agenda Item No.: 5 3300 NEWPORT BOULEVARD Staff Person: George A. Berger, AICP �RFOAN! NEWPORT BEACH, CA 92658 (949) 644 -3207 (949) 644 -3200; FAX (949) 644 -3229 REPORT TO THE MAYOR AND CITY COUNCIL SUBJECT: Corona del Mar Business Improvement District Renewal: Annual Report for 2001 -2002 Fiscal Year; and Adoption of Resolution of Intention to Levy for 2002 -2003 Fiscal Year. SUMMARY: The Corona del Mar Business Improvement District was established September 1, 1996. This report summarizes the District's accomplishments during the 2001 -2002 fiscal year —its sixth year of operation —and the proposed activities and budget for the coming year. The Corona del Mar Business Improvement District Board of Directors, which serves as the District Advisory Board, requests City Council approval of the Annual Report and scheduling of the public hearing for August 13, 2002. SUGGESTED ACTION: 1. Approve Corona del Mar Business Improvement District 2001 -2002 Annual Report; and 2. Adopt the Resolution of Intention to Levy for 2002 -2003 Fiscal Year and set the public hearing for August 13, 2002. Background The Corona del Mar Business Improvement District is nearing the end of its sixth year of operation and requests renewal of the District for the fiscal year September 1, 2002 to August 31, 2003. The boundaries of the benefits zone have been reviewed by the Board, and are recommended to remain unchanged: generally located on East Coast Highway from Hazel Drive to Avocado Avenue as set forth with greater specificity in the map attached as Exhibit A. State law requires that an annual report be prepared and a public hearing be held each year prior to renewal of the District. A summary of accomplishments during the 2001 -2002 fiscal year and proposed activities for the new fiscal year are provided below. Sixth Year District Accomplishments The Corona del Mar Business Improvement District sponsored the following promotions and activities during the past year: With the cooperation of the City's General Services Department, the BID installed new metal pedestrian benches and trash receptacles at various locations throughout the BID area, replacing worn and outdated concrete and wood benches and receptacles. At the time of this report, the BID also is in the process of receiving and installing four new bus shelters throughout the village, with the Public Works and General Services departments helping to secure the necessary City and CalTrans permits. The BID contributed $75,000 to this project, with a matching amount provided by City funds; • Maintained and updated the Corona del Mar BID website, www.cdtnvillage.com, to educate the public about the Vision 2004 plan and distribute information on current events and administration of the BID; • Moved forward with the Vision 2004 Plan by securing the State's agreement to relinquish the portion of Coast Highway within Corona del Mar from CalTrans jurisdiction to the City's. This was achieved by working closely with the City Council, City staff, and a legislative consultant paid for by the BID. Presently, agreements on proper boundaries and financial compensation are underway, prior to acceptance by the City; • Assisted the Corona del Mar Chamber of Commerce in the publishing of a four -color merchant directory for all BID members in Corona del Mar; • In cooperation with the Public Works Department, continued engineering studies to replace the painted medians with new, raised Bomanite medians; • Provided quarterly maintenance of decorative bedding at the Marguerite / Coast Highway intersection with replanting as needed; • Mailed monthly newsletters from the Advisory Board to all members in conjunction with the Corona del Mar Chamber of Commerce newsletter; • Supported the Corona del Mar Chamber of Commerce with the Annual Christmas Walk; • Participated with the Corona del Mar Chamber of Commerce and the Newport Beach Conference and Visitor's Bureau to bring visitors to Corona del Mar. Fiscal Year District Revenues During the 2001 -2002 fiscal year the District started with a balance of $123,500. It collected approximately $66,000 in member assessments with over $20,000 yet to be collected. The BID received $54,534 in matching funds from the City and has spent approximately $175,400 this FY for approved activities. It is anticipated that a remaining balance of approximately $69,000 or somewhat less will be carved over into the 2002 -2003 Fiscal Year. Proposed Improvements, Activities and Budget The FY2002 -2003 Priorities and Budget Outline, including specific goals for each category, is submitted by the BID Advisory Board as part of the attached Annual Report. The highest priorities for the upcoming fiscal year are: N 1. BID Administration/ Vision 2004: • Continue representation in Sacramento to secure CalTrans operating agreement • Develop further funding options to implement Vision 2004 Plan • Continue to present the Vision 2004 Plan to educate concerned parties about improvements • Work with the City of Newport Beach in implementing the improvements called forth by the Vision 2004 Plan 2. Action Committee: • Work closely with City staff to develop improvements called for by the Vision 2004 Plan. When funding has been appropriated for Vision 2004, and when improvements have begun, the CdM BID will look to share costs when possible with the City from BID funds • Engineer and build new medians to replace painted medians • Contribute funds to the Corona del Mar Chamber for the Christmas Walk • Install holiday decorations throughout the BID during the holiday season Marketing • Maintain Memberships with Newport Harbor Chamber of Commerce • Develop new annual special events in conjunction with the CdM Chamber of Commerce • Monthly newsletter published in conjunction with the CdM Chamber of Commerce • Maintain and update the www.cdmvillage.comwebsite • Continue with Marketing Advisor Program • Develop alternative business promotion and marketing programs 4. Maintenance • Maintain lighting and seasonal color for Marguerite/ Coast Highway intersection • Maintain backflow devices as needed for tree irrigation • Maintain sidewalks and benches as needed • Maintain all tree wells and tree health for 200 palm and orchid trees within the District Assessment Collection The current and proposed BID benefit assessment per business is equal to one and one -half (1 -1/2) the City's annual business license fee, pursuant to Chapter 5.08 of the Newport Beach Municipal Code. In most cases the business license tax is comprised of $120 plus an additional amount for each employee. This rate has been consistent since the establishment of the Corona del Mar Business Improvement District in 1996. Banks and financial institutions exempt from City business license regulations are assessed $500 per year. Insurance agencies exempt from City license regulations are assessed $250 per year. Persons operating one of the following businesses as an independent contractor in an establishment owned by another person are exempt from this assessment: 1. Hair stylists 2. Nail technicians 3. Real estate agents The penalty for delinquent payments is twenty-five percent per month, provided that the penalty amount added shall in no event exceed one hundred percent of the assessment amount due. Assessments are collected in a single installment at the beginning of the fiscal year, and are pro- rated for new businesses opening during the year. The Advisory Board of the Corona del Mar Business Improvement District does not expect to raise funds in addition to the assessments levied for the upcoming year. It is anticipated that matching funds will be approved by the City Council for fiscal year 2002 -2003, with additional funds added to the amount designated for marketing activities and physical improvements. The attached Annual Report further describes the budget and activities for the upcoming year, and has been filed with the City Clerk's office as required by California law. Submitted by: SHARON Z. WOOD Assistant City Manager Prepared by: GEORGE A. BERGER, AICP Senior Planner YmJh� With assistance from: CLINTON SCOTT PALMER Cathimarie'sInc., BID Administration Attachments: Exhibit A: CdM BID Boundary Map Exhibit B: FY 01 -02 Annual Report (by BID Advisory Board) Exhibit C: FY 02 -03 Priorities and Budget by (BID Advisory Board) Exhibit D: Resolution of Intention 02- 4 ., :�;�. . EXHIBIT B CORONA DEL MAR BUSINESS IMPROVEMENT DISTRICT ANNUAL REPORT FOR 2001 -2002 FISCAL YEAR Overview This is the annual report for the CORONA DEL MAR Business Improvement District, as required by Section 36533 of the California Streets and Highways Code, for fiscal year September 1, 2001 to August 31, 2002. Boundaries The boundaries of the benefit zone remain unchanged: generally located on East Coast Highway from Hazel Drive to Avocado Avenue as set forth with greater specificity in the map attached as Exhibit A. Proposed Activities The improvements and activities to be provided for the fiscal year include: 1. Marketing, advertising, and promotion of CORONA DEL MAR 2. Physical Improvements within CORONA DEL MAR 3. CORONA DEL MAR BID Member and Community Outreach 4. CORONA DEL MAR BID Tax Preparation and Insurance Proposed Budget The estimated cost of providing the proposed improvements and activities in this report is approximately $111,264. The implementation of these actions is more fully described in the attached Priorities and Budget Outline for the 2002 -2003 fiscal year. Assessments Assessments shall be collected in one annual installment at the beginning of the fiscal year, and shall be pro -rated for new businesses that open during the fiscal year. The benefit assessment shall be equal to 150% of the City's usual annual business license tax as established pursuant to Chapter 5.08 of the Municipal Code. The penalty for delinquent payments will be twenty -five percent per month, providing that the penalty amount added shall in no event exceed one hundred percent of the assessment amount due. Banks and financial institutions that are exempt from City business license regulations shall be assessed $500 per year. Insurance agencies that are exempt from City business license regulations shall be assessed $250 per year. Persons operating one of the following types of businesses as an independent contractor in an establishment owned by another person shall be exempt from this Account Status: assessment: 1. Hairstylists 2. Nail technicians 3. Real estate agents During the 2001 -2002 fiscal year the district collected approximately $66,600 in assessments from members. Its account balance of the beginning of the year was $123,500. It received $54,534 in matching funds from the City for available operating revenue of $244,034. The BID has spent approximately $175,400 for approved activities. The District's current account balance is approximately $69,000 at the end of the first eleven months of the fiscal year. It is anticipated the balance will be approximately $67,000 or less at the fiscal year end, August 31, 2002. Matching funds, anticipated to be approved by the City Council for fiscal year 2002 -2003, would be added to the amount designated for marketing efforts. Prior Year Accomplishments: The merchants of CORONA DEL MAR have found their sixth year as a Business Improvement District to be very successful and have achieved several accomplishments including: *With the cooperation of the City's Public Works and General Services departments, the BID installed new metal benches and trash receptacles at various locations throughout the area, replacing worn and outdated concrete and wood benches. At the time of this report, the BID also is in the process of installing four new bus shelters throughout the village, with the Public Works Department helping in securing the necessary permits from CalTrans and the City itself. The BID contributed $75,000 to this project, with the remainder of the funds generously coming from the City. *Maintained and updated the Corona del Mar BID website, www.cdmvillage.com, to educate the public about the Vision 2004 plan and distribute information on current events and administration of the BID. * Moved forward with the Vision 2004 Plan by securing the State's agreement to relinquish the portion of Coast Highway within Corona del Mar from CalTrans jurisdiction to the City's. This was achieved by working closely with the City Council, City staff, and a legislative consultant paid for by the BID. Presently, agreements on proper boundaries and financial compensation are underway, prior to acceptance by the City. *Assisted the Corona del Mar Chamber of Commerce in publishing a four -color merchant directory for all BID members in Corona del Mar. * Continued engineering studies to replace the painted medians with new, raised Bomanite medians. * Quarterly maintenance of decorative bedding at the Marguerite / Coast Highway intersection with replanting as needed. *Mailed monthly newsletters from the Advisory Board to all members in conjunction with the Corona del Mar Chamber of Commerce newsletter. * Supported the Corona del Mar Chamber of Commerce with the Annual Christmas Walk *Participated with the Corona del Mar Chamber of Commerce and the Newport each Conference and Visitor's Bureau to bring visitors to Corona del Mar. The merchants of Corona del Mar have worked hard to promote their village and wish to express their appreciation for the City Council's continued support of the CORONA DEL MAR Business Improvement District. 1 EXHIBIT C Corona del Mar Business Improvement District Priorities and Budget Outline September 1, 2002- August 31, 2003 Funds Available FY End 2001 69,000 Funds to be Collected September 2001 80,000 Matching Funds from City 53,500 Total Available Funds 202,500 Priorities Budget Amount Total 1. BID Administration / Vision 2004 14% $ 15,400 *Continue representation in Sacramento to secure Caltrans operating agreement *Develop further funding options to implement Vision 2004 Plan *Continue to present the Vision 2004 Plan to educate concerned parties about improvements *Work with the City of Newport Beach in implementing the improvements called forth by the Vision 2004 Plan 2. Action Committee 47% $53,000 *Work closely with the City Staff in developing improvements called for by the Vision 2004 Plan. When funding has been appropriated for Vision 2004, and when improvements have begun, the CdM BID will look to share costs when possible with the City from BID funds. * Engineer and build new medians in place of painted medians *Install decorative holiday decorations and banners *Contribute funds to the Corona del Mar Chamber for the Christmas Walk *Install holiday decorations throughout the BID during the holiday season. 3. Marketing 29% $31,750 *Maintain Memberships with Newport Chamber * Develop new annual special events in conjunction with the Corona del Mar Chamber • Monthly newsletter published in conjunction with the Chamber of Commerce • Maintain and update the cdmvillage.com website • Continue with Marketing Advisor Program *Develop alternative business promotion and marketing programs 4. Maintenance 10% $11,114 *Maintain lighting and seasonal color for Marguerite/Coast Highway intersection *Maintain backflow devices as needed for tree irrigation *Maintain sidewalks and benches as needed *Maintain all tree wells and tree health for 200 palm and orchid trees within the District EXHIBIT D RESOLUTION NO. 2002- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH STATING ITS INTENTION TO LEVY ASSESSMENTS FOR THE CORONA DEL MAR BUSINESS IMPROVEMENT DISTRICT FOR THE FISCAL YEAR OF SEPTEMBER 1, 2002 TO AUGUST 31, 2003. WHEREAS, the Corona del Mar Business Improvement District was established in 1996 pursuant to the Parking and Business Improvement Area Law of 1989, California Streets and Highways Code, Section 36500 et seq., (hereinafter the "Act "), which requires an annual report to be filed and approved by the City Council for each fiscal year; and WHEREAS, the Advisory Board has prepared an Annual Report for the 2001 -2002 fiscal year which is on file in the Office of the City Clerk; and NOW, THEREFORE, the City Council of the City of Newport Beach resolves as follows: Section 1: The City Council hereby declares the intention to levy assessments for the Corona del Mar Business Improvement District for the fiscal year September 1, 2002 to August 31, 2003 pursuant to the Act. Such benefit assessment shall be as follows: A. Banks and financial institutions that are exempt from City business license regulations shall be assessed $500 per year; Resolution No. 2002 - Corona del Mar Business Improvement District Page I B. Insurance agencies that are exempt from City business license regulations shall be assessed $250 per year; C. Persons operating one of the following types of businesses as an independent contractor in an establishment owned by another person shall be exempt from this assessment: 1. Hair stylists 2. Nail technicians 3. Real estate agents D. The assessment for all other businesses within the District shall be 150 percent of the annual business license tax as established pursuant to Chapter 5.08 of the Municipal Code. Section 2: The penalty for delinquent payments shall be twenty -five percent per month, providing that the penalty to be added shall in no event exceed one hundred percent of the assessment amount due. Section 3: The City shall collect benefit assessments in one annual installment, with collections for new businesses in the District on the day of the issuance of a business license by the City. The assessment for new businesses shall be pro -rated according to the number of full months remaining in the District's fiscal year. Section 4: The improvements and activities to be funded by the benefit assessments shall include only the following: 1. Marketing, advertising, and special events Resolution No. 2002 - Corona del Mar Business Improvement District Page 2 2. Physical improvements & maintenance 3. Communications and Outreach Program 4. Representation of area business interests in governmental affairs 5. Administration Section 5: The location of the District will remain the same: generally located on East Coast Highway from Hazel Drive to Avocado Avenue as set forth with greater specificity in the map attached as Exhibit A. BE IT FURTHER RESOLVED, that the City Council of the City of Newport Beach shall conduct a public hearing on August 13, 2002 at 7:00 p.m., or as soon thereafter as this matter may be heard, in the Council Chambers located at 3300 Newport Boulevard, Newport Beach, California at which time the Council will hear all interested persons for or against the renewal of the District, the extent of the District and the specific types of improvements or activities to be funded by the benefit assessment. Protests may be made orally or in writing, but if written, shall be filed with the City Clerk at or before the time fixed for the Hearing and contain sufficient documentation to verify business ownership and validate the particular protest. If written protests are received by the owners of businesses within the District that pay fifty percent or more of the total assessments to be levied, no further proceedings to renew the District shall be taken for a period of one year from the date of the finding of a majority protest by the City Council. If the majority protest is only against the furnishing of a specific type or types of improvements or activity or benefit within the District, those types of improvements or activities or benefit zones shall be eliminated. Resolution No. 2002 - Corona del Mar Business Improvement District Page 3 Further information regarding the proposed Business Improvement District renewal may be obtained at the Newport Beach City Hall, 3300 Newport Boulevard, Newport Beach, California, 92658. Telephone (949) 644 -3225. The City Clerk shall cause this resolution of intention to be published once in a newspaper of general circulation in the City at least seven days before the public hearing. This resolution shall take effect immediately upon adoption. Passed and adopted by the City Council of the City of Newport Beach at a regular meeting held on the day of 2002. ATTEST: MAYOR CITY CLERK ATTACHMENT: Exhibit A (Boundary Map) Resolution No. 2002 -_ Corona del Mar Business Improvement District Page 4 J