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HomeMy WebLinkAbout15 - Marine Avenue Business Improvement RenewalCITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. 15 June 23, 2009 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Community & Economic Development, Planning Department Kathlyn Bowden, AICP, Economic Development Coordinator kbowden(a)city. newoort- beach.ca. us SUBJECT: Marine Avenue Business Improvement District Renewal: Conduct Public Hearing and Adopt Resolution for Renewal of the Business Improvement District for Fiscal year 2009 -2010. ISSUE: Annual renewal of the Marine Avenue Business Improvement District. 1. Conduct the Public Hearing regarding the renewal of the Marine Avenue Business Improvement District; and 2. Adopt Resolution for the renewal of the Marine Avenue Business Improvement District confirming the levy of the BID assessment for the 2009 -2010 fiscal year, unless during the Public Hearing the Council receives protests representing 50 percent or more of the total assessment amount. DISCUSSION: Background: On June 9, 2009 the City Council held a public meeting, approved the Marine Avenue Business Improvement District Fiscal Year 2009 -2010 Annual Report, and adopted a Resolution of Intention to levy and collect assessments for the District for the Fiscal Year of July 1, 2009 to June 30, 2010. Details regarding the proposed renewal of the District and annual report are provided in the attached June 9, 2009 staff report. A protest hearing must be held each year prior to renewal of a Business Improvement District. If protests are received from business owners representing 50 percent or more of the total assessment amount, the proceedings to renew the District must be discontinued Marine Avenue BID Renewal Hearing June 23, 2009 Page 2 for at least one year. If protests represent less than 50 percent of the total assessment, the City Council may renew the District. At the time this report was prepared, no letters received. Staff will provide an oral update on tabulation of protests at the City Council meeting. Proposed Activities and Budget: of opposition to the District had been any subsequent correspondence and a The activities proposed for the next year include marketing, advertising, public relations, and public improvements and maintenance to benefit Marine Avenue businesses. Further detail regarding the proposed improvements, activities, and budget were provided in the 2009 -2010 Annual Report approved by City Council on June 9, 2009. The estimated budget for these activities is approximately $27,050. It is anticipated that a remaining balance of approximately $6,300 will be carried over into the 2009 -2010 fiscal year budget. The BID expects to collect approximately $13,100 in assessments, and anticipates an additional $7,070 in matching funds from the City. PUBLIC NOTICE: Public notice of the protest hearing and the Resolution of Intention to levy and collect assessments for the renewal of the Marine Avenue Business Improvement District has been published in the Daily Pilot in compliance with state law. Prepared by: A THLYN BOWDEN onomic Development Coordinator With Assistance from: CLINTON SCOTT PALMER B.I.D. Systems, Inc., BID Administration Submitted by: Av, ono . _ --w. i -O =istant Attachments: Resolution of Confirmation 2009 - June 9, 2009 Staff Report (recycled) ATTACHMENT A RESOLUTION NO. 2009- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH CONFIRMING THE LEVYING OF ASSESSMENTS FOR THE FISCAL YEAR OF JULY 1, 2009 TO JUNE 30, 2010 FOR THE MARINE AVENUE BUSINESS IMPROVEMENT DISTRICT. WHEREAS, on June 9, 2009 the MARINE AVENUE Business Improvement District annual report was filed and approved by the City Council; and WHEREAS, on June 9, 2009 the City Council adopted and ordered to be published a Resolution of Intention declaring the intention to levy assessments for the MARINE AVENUE Business Improvement District for the fiscal year July 1, 2009 to June 30, 2010; and WHEREAS, a public hearing regarding the renewal of the MARINE AVENUE Business Improvement District was held on June 23, 2009 without a protest of majority of the assessment. NOW, THEREFORE, the City Council of the City of Newport Beach hereby renews the MARINE AVENUE Business Improvement District for the fiscal year July 1, 2009 to June 30, 2010, and confirms the levy of assessments as described in the Resolution of Intention dated June 9, 2009 and published June 13, 2009. 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 23`d day of June, 2009. MAYOR ATTEST: CITY CLERK LN CITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. June 9, 2009 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Community & Economic Development, Planning Department Kathlyn Bowden, AICP, Economic Development Coordinator kbowden aC)citv.newport- beach.ca.us SUBJECT: Marine. Avenue Business Improvement District Renewal: Annual Report for Fiscal Year 2009 -2010, and Adoption of Resolution of Intention to Levy for the Fiscal Year 2009 -2010. ISSUE: Should the City Council renew the Marine Avenue Business Improvement District for its 14th year of operation, for the BID's fiscal year of July 15t, 2009 to June 30"', 2010? RECOMMENDATION: 1. Approve the Marine Avenue Business Improvement District Year 2009 - 2010 Annual Report; and 2. Adopt the Resolution of Intention to Levy Assessments and set the public hearing for June 23, 2009. DISCUSSION: Background: The Marine Avenue Business Improvement District (BID) is nearing the end of its thirteenth year of operation and requests renewal of the District for the fiscal year July 1, 2009 to June 30, 2010. The Marine Avenue BID was established January 1, 1996. This report summarizes the District's accomplishments during the previous fiscal year 2008 - 2009, its thirteenth year of operation, and the proposed activities and budget for the coming year. The BID's 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 June 23, 2009. The District includes the 200 and 300 blocks of Marine Avenue Marine Avenue BID Renewal Hearing June 9, 2009 Page 2 as set forth with greater specificity in the map attached as Exhibit A. California 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 2008 -2009 and proposed activities for the fiscal year 2009 - 2010 are provided below. The District's 2009 - 2010 activities are proposed to remain the same as in the fiscal year 2008 - 2009. Thirteenth Year District Accomplishments: The Marine Avenue Business Improvement District has sponsored the following promotions and activities during the past year: • Placement of advertisements in several tourist related publications. • Continued operation and improvement of the highest visited Balboa Island website, www.balboa - island.net. • Christmas decorations and lighting to enhance holiday shopping along Marine Avenue. • Participation with the Anaheim/Orange County Visitors and Conference Bureau to more widely encourage county -wide tourists to visit Balboa Island • Participation with the Newport Beach Conference and Visitors Bureau, particularly in the installation of a directory at the ferry landing directing people to Marine Avenue. • Preparation and display of Balboa Island flag campaign in conjunction with the Balboa Island Improvement Association (BIIA). • Moved to secure insurance coverage for the advisory board. • Created Standing Committees (Marketing /Advertising, Beautification, and Outreach), elected Standing Committee Chairs, and adopted plans of work corresponding to each Committee. Fiscal Year District Revenues: During 2008 — 2009, the District collected approximately $13,800 in member assessments with $2,500 in additional funds remaining to be collected. Its account balance at the beginning of the year was $9,789. The BID received $6,148 in funds from the City. The BID has spent approximately $17,956 for approved activities, and anticipates spending an additional $5,200 by fiscal year end. It is anticipated that a remaining balance of approximately $6,300 will be carried over into the 2008 - 2009 fiscal year budget. Proposed Activities and Budget: The activities proposed for the next year include marketing, advertising, public relations, and public improvements and maintenance to benefit Marine Avenue businesses. The estimated budget for these activities is approximately $27,050. Marine Avenue BID Renewal Hearing June 9, 2009 Page 3 FUNDING AVAILABILITY: Business Improvement District matching funds are included in City Budget Account No. 2720 -8250. Prepared by: KATHLYN BOWDEN Economic Development Coordinator With Assistance from: CLINTON SCOTT PALMER B.I.D. Systems, Inc., BID Administration Submitted by: Attachments: Exhibit A — BID Boundary Map t Exhibit B — FY 09 -10 Annual Report and FY 09 -10 Priorities & Budget Exhibit C — Resolution of Intention to Levy 2009 - EXHIBIT B MARINE AVENUE BUSINESS IMPROVEMENT DISTRICT FISCAL YEAR 2009 - 2010 ANNUAL REPORT This is the annual report for the thirteenth year of the Marine Avenue Business Improvement District, as required by Section 36533 of the California Streets and Highways Code. This report covers the District's accomplishments for the previous fiscal year (July 1, 2008 to June 30, 2009) and the proposed activities and budget for the 2009 — 2010 fiscal year. 2008 — 2009 Accomplishments Among the Marine Avenue Business Improvement District accomplishments during 2008 — 2009 are the following: 1. Placement of advertisements in several tourist related publications 2. Maintained the highest visited Balboa Island BID sponsored website, www.balboa-island.net 3. Christmas decorations and lighting to enhance holiday shopping along Marine Avenue 4. Participation with the Anaheim /Orange County Visitors and Conference Bureau to more widely encourage county -wide tourists to visit Balboa Island 5. Participation with the Newport Beach Conference and Visitors Bureau. 6. Preparation and display of Balboa Island flag campaign in conjunction with the Balboa Island Improvement Association. 7. Created Standing Committees (Marketing /Advertising, Beautification, and Outreach), elected Standing Committee Chairs, and adopted plans of work corresponding to each Committee. 8. Moved to secure insurance coverage for the advisory board. Basis for Levying Assessments 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. The assessment for all other businesses within the District shall be 100 percent of the annual business license tax as established pursuant to Chapter 5.08 of the Municipal Code if the business is located downstairs; if upstairs, a flat $25.00 will be assessed. 1 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 Fiscal Year District Revenues During 2008 — 2009, the District collected approximately $13,800 in member assessments with approximately $3,500 in additional funds remaining to be collected. Its account balance at the beginning of the year was $9,789. The BID received $6,148 in funds from the City. The BID has spent approximately $17,956 for approved activities, and anticipates spending an additional $5,200 by fiscal year end. It is anticipated that a remaining balance of approximately $6,300 will be carried over into the 2009 - 2010 fiscal year budget. Renewal of District The boundaries of the benefit zone will remain the same as fiscal year 2008 - 2009 as set forth with greater specificity in the map attached as Exhibit A and incorporated herein. .:�N Proposed Improvements, Activities and Budget The BID Advisory Board submits the 2009 -2010 Priorities and Budget Outline as part of the Annual Report, including specific goals for each category. The highest priorities for the upcoming fiscal year are: 1. Marketing, advertising and public relations. 2. Promotion of public events that are to take place on or in any public places in area. 3. Decoration of any public place in the area. 4. Public area improvements and maintenance activities. 5. The general promotion of retail trade activities. The estimated cost of providing the proposed improvements and the activities described in this report are approximately $27,050. The implementation of these actions is more fully described in the attached Priorities and Budget Outline for the 2009 — 2010 fiscal year. The advisory group of the Marine Avenue BID may raise additional funds through various events and fundraisers in addition to the assessments levied. At this time they do not anticipate additional funds for the 2009 -2010 budget. The merchants of Marine Avenue appreciate the efforts of the City Council and their continued support of their BID. . Marine Avenue Business Improvement District Priorities and Budget Outline July 1, 2009 — June 30, 2010 Funds Available Fiscal End 2008 - 2009 Funds to be Collected July 2009 Anticipated Matching Funds from City Total Available Funds Priorities Marketing 1. Continue to develop and market website 2. Place advertising in tourist related publications Memberships { 1. Newport Beach Visitor and Convention Bureau Administration 1. Mailing and Postage Costs Flag Program $ 6,300 $ 13,100 $ 8,000 $ 27 Amount $19,075 $ 1,300 $ 2,476 $ 3,000 Seasonal Decor $ 1,200 Total Expenditures $ 27,051 EXHIBIT C RESOLUTION NO. 09- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH DECLARING ITS INTENTION TO RENEW THE MARINE AVENUE BUSINESS IMPROVEMENT DISTRICT FOR THE FISCAL YEAR OF JULY 1, 2009 TO JUNE 30, 2010, AND FIX THE TIME AND PLACE OF A PUBLIC HEARING. WHEREAS, the Marine Avenue 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 Fiscal Year 2009 -2010 which is on file in the Office of the City Clerk; and WHEREAS, the Act requires the City Council to declare its intention to levy and collect assessments within the Business Improvement District for the next fiscal year. NOW, THEREFORE, the City Council of the City of Newport Beach resolves as follows: Section 1: The Annual Report filed by the Advisory Board is hereby approved. The Annual Report contains a description of improvements and activities to be provided for 2009 - 2010, the area boundaries, and the annual assessment within the District. Section 2: The City Council hereby declares it intention to renew the Business Improvement District for the fiscal year July 1, 2009 to June 30, 2010 pursuant to the Act. d Section 3: The location of the District will remain the same: generally the 200 and 300 blocks of Marine Avenue as set forth with greater specificity in the map attached as Exhibit A and incorporated herein. Section 4: The City Council intends to levy and impose and order the collection of a benefit assessment upon persons conducting business in the District. 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. 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 benefit assessment shall be equal to one hundred percent (100 %) of the City's annual business license fee as established pursuant to Chapter 5.08 of the Municipal Code if the business is located in a downstairs space; if upstairs, a flat $25.00 will be assessed. Section 5: The benefit assessments shall be collected by the City in one 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 6: 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 7. An owner of more than one business within the District shall only be required to pay the assessment for the largest business, and shall be exempt from assessments on additional businesses within the District. Resolution No. 09- Marine Avenue Business Improvement District Section 8: The improvements and activities to be funded by the benefit assessments shall include only the following: 1. Marketing, advertising and public relations; 2. Brochure development and distribution; 3. Promotion of public events that are to take place on or in any public places in the area; 4. Decoration of any public place in the area; 5. Public area improvements and maintenance activities; 6. The general promotion of retail trade activities. BE IT FURTHER RESOLVED, that the City Council of the City of Newport Beach, shall conduct a public hearing on June 23, 2009 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 establishment 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 f 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 within the District, those types of improvements or activities shall be eliminated. 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. Resolution No. 09 -_ Marine Avenue Business Improvement District >I 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 and thereon held on the day of 2009. MAYOR ATTEST: CITY CLERK ATTACHMENT: Exhibit A - Boundary Map Resolution No. 09-- Marine Avenue Business Improvement District