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HomeMy WebLinkAboutS22 - Balboa Village Business Improvement DistrictCITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. S22 March 11, 2003 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Community & Economic Development, Planning Department Daniel Trimble, AICP, Program Manager 949/644 -3230. dtrimble @city.newport - beach.ca.us SUBJECT: Balboa Village Business Improvement District Renewal: Annual Report for Fiscal Year 2002 - 2003, and Adoption of Resolution of Intention to Levy for Fiscal Year 2003 - 2004. ISSUE: Annual renewal of the Balboa Village Business Improvement District. RECOMMENDATION: 1. Approve Balboa Village Business Improvement District 2002 —2003 Annual Report; and 2. Adopt the Resolution of Intention and set the public hearing for March 25, 2003. DISCUSSION: Background: The Balboa Village Business Improvement District (BID) is nearing the end of its seventh year of operation and requests renewal of the District for the fiscal year April 1, 2003 to March 31, 2004. The Balboa Village BID was established April 1, 1996. This report summarizes the District's accomplishments during 2002 - 2003, its seventh 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 March 11, 2003. The District includes A Street through Coronado Street of the Balboa Peninsula as set Balboa Village BID Renewal Hearing 1 March 11, 2003 Page 2 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 2002 - 2003 and proposed activities for 2004 are provided below. The District's 2003 - 2004 activities are proposed to remain the same as in 2002 - 2003. Seventh Year District Accomplishments: The Balboa Village Business Improvement District has sponsored the following promotions and activities during the past year: *Planning and putting on the Salute to Summer, an event with four bands, street entertainers, and a sidewalk sale. The event promoted the BID area to local and Orange County residents. * Providing seasonal decorations and lighting to promote business during the holiday season, and the start of an annual Tree Lighting Ceremony during the holiday season. *Reprinting and distributing two posters to explain and illustrate the redevelopment of Balboa Village. *Placing advertisements for boat parade viewing and whale watching activities in the local media. *Started a Whale Watching Photo Contest to generate additional promotion to the many whale watching based businesses in the area and to develop public relations opportunities for the entire community. * Producing monthly newsletters from the Board of Directors to all members. Maintaining membership with the Newport Newport Beach Conference and Visitors cooperative advertising program with the Harbor Chamber of Commerce and the Bureau, and participating in a Bureau. *Hiring a marketing consultant to create and administer new marketing and public relations efforts. *Maintaining the www.balboanewportbeach.com website, providing seasonal information and announcements as well as an electronic merchant directory. *Instituting a "Paint the Town" program where children from Newport Elementary School painted merchant windows for the holiday season. Balboa Village BID Renewal Hearing 1 March 11, 2003 Page 3 * Paid for insurance coverage for the association as well as preparation of the federal tax return * Participating in mitigation of construction impacts during all phases of the Balboa Village Improvement Project. Fiscal Year District Revenues During 2003 the district collected approximately $12,459 in member assessments and $11,280 in matching funds from the City. The BID also received $7,500 to assist with construction mitigation marketing efforts. The District spent approximately $30,146 for approved activities. It is anticipated that a remaining balance of approximately $800 will be carried over into the 2003 - 2004 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 Balboa Village businesses. The estimated budget for these activities is approximately $26,500. The Balboa Village Business Improvement District appreciates the City Council's continued support. Environmental Review Not subject to CEQA, as the activity is not a project, as defined in Section 15378(b)(4) Public Notice: None Required Funding Availability: Business Improvement District matching funds are included in City Budget Account No. 2720 -8250. Submitted by: SHARON Z. WOOD Assistant City Manager Balboa Village BID Renewal Hearing 1 March 11, 2003 Page 4 Prepared by: DANIEL R. TRIMBLE, AICP C & ED Program Administrator With Assistance from: CLINTON SCOTT PALMER Cathimarie's Inc.. BID Administration Attachments: Exhibit A— BID Boundary Map Exhibit B — FY 2002 -2003 Annual Report and 2003 -2004 Priorities & Budget Outline Exhibit C — Resolution of Intention to Levy 2003- ! Balboa Village Business Improvement District Pacific Ocean AQ bwboa Pit, 11" � Newport Bay r PUeUC r 0 100 200 300 Feet f; E Hail sa Ousingss trn}tar:emani , f f oi�t+ki Scundarp E:LhUt A EXHIBIT B BALBOA VILLAGE BUSINESS IMPROVEMENT DISTRICT 2002 - 2003 ANNUAL REPORT This is the annual report for the seventh year of the Balboa Village 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 (April 1, 2002 to March 31, 2003) and the proposed activities and budget for the 2003 -2004 fiscal year. The boundaries of the benefit zone will remain the same as 2002 -2003 as set forth with greater specificity in the map attached as Exhibit A and incorporated herein. The improvements and activities to be provided for the coming fiscal year include: 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. 4. Decoration of any public place in the area. 5. Public area improvements and maintenance activities. 6. The general promotion of retail trade activities. 7. BID tax preparation and liability insurance The estimated cost of providing the proposed improvements and the activities described in this report is approximately $41,500. The implementation of these actions is more fully described in the attached Priorities and Budget Outline for the 2003 - 2004 year. The benefit assessments will be collected by the City in one annual installment, which 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. The penalty for delinquent payments shall be equal to that established for delinquent business license fees pursuant to Chapter 5.08 of the Municipal Code, providing that the penalty amount added shall in no event exceed one hundred percent of the assessment amount due. Individuals with more than one business entity within the assessment boundaries shall only be required to pay the District assessment for the largest business, shall be exempt from assessments on additional businesses within the District, and shall continue to pay required business license fees in accordance with Chapter 5.08 of the Municipal Code. 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 0 assessed $250 per year. Assessments shall be collected in one annual installment at the beginning of the fiscal year, and be pro -rated for new businesses that open during the fiscal year. The amount of surplus carried over from the 2002 - 2003 fiscal year is approximately $4,000 at the end of the first ten months of the fiscal year. It is anticipated the balance will be approximately $2,000 at the fiscal year end, March 31, 2003. The advisory group of the Balboa Village Business Improvement District 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 2002 budget. Among the Balboa Village Business Improvement District accomplishments during 2002 -2003 are the following: *Planning and putting on the Salute to Summer, an event with four bands, street entertainers, and a sidewalk sale. The event promoted the BID area to local and Orange County residents. Providing seasonal decorations and lighting to promote business during the holiday season, and the start of an annual Tree Lighting Ceremony during the holiday season. *Reprinting and distributing two posters to explain and illustrate the redevelopment of Balboa Village. *Placing advertisements for boat parade viewing and whale watching activities in the local media. *Started a Whale Watching Photo Contest to generate additional promotion to the many whale watching based businesses in the area and to develop public relations opportunities for the entire community. • Producing monthly newsletters from the Board of Directors to all members. • Maintaining membership with the Newport Harbor Chamber of Commerce and the Newport Beach Conference and Visitors Bureau, and participating in a cooperative advertising program with the Bureau. *Hiring a marketing consultant to create and administer new marketing and public relations efforts. *Maintaining the www.balboanewoortbeach.com website, providing seasonal information and announcements as well as an electronic merchant 2 directory. *Instituting a "Paint the Town" program where children from Newport Elementary School painted merchant windows for the holiday season. Paid for insurance coverage for the association as well as preparation of the federal tax return Participating in mitigation of construction impacts during all phases of the Balboa Village Improvement Project. The merchants of Balboa Village appreciate the efforts of the City Council and your continued support of their district. 3 �� Balboa Village Business Improvement District Priorities and Budget Outline April 1, 2003 - March 31, 2004 Funds Available FY End 2003 2,000 Funds to be Collected April 2003 12,500 Additional Funds to be raised 1,000 Matching Funds from City* 26,000 Total Available Funds $41,500 Priorities Budget Amount Total Marketing & Advertising 94% $38,750 1. Hire Marketing Consultant 2. Maintain memberships with NB CofC /NB CVB 3. Print advertising 4. Web Site 5. Direct -mail Outreach Programs 1% $600 1. Monthly newsletter 2. Meeting notices 3. Maintain the open communication with the residents, the BIDs and City Council 4. Construction mitigation campaign Administration 5% $ 2,150 1. Insurance 2. Accounting 3. Other *This includes a request for additional funding for construction mitigation marketing. 4 EXHIBIT C RESOLUTION NO. 2003- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH DECLARING ITS INTENTION TO RENEW THE BALBOA VILLAGE BUSINESS IMPROVEMENT DISTRICT FOR THE FISCAL YEAR OF APRIL 1, 2003 TO MARCH 31, 2004, AND FIX THE TIME AND PLACE OF A PUBLIC HEARING. WHEREAS, the Balboa Village 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 Fiscal Year 2002 - 2003 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 accomplishments during 2002 -2003 and a proposed budget for activities to be provided for 2003- 2004, 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 April 1, 2003 to March 31, 2004 pursuant to the Act. I Section 3: The boundaries of the benefit zone are on the Balboa Peninsula between A Street through Coronado Street, 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 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. Section 5: The benefit assessments shall be collected by the City 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 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. 2003 - Balboa Village 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 March 25, 2003 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 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. 2003 - Balboa Village 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 2003. MAYOR ATTEST: CITY CLERK ATTACHMENT: Exhibit A - Boundary Map Resolution No. 2003 - Balboa Village Business Improvement District < I✓