HomeMy WebLinkAbout05 - Balboa Island Bayside Business Improvement District Renewal and Expansion, Annual Report for 1998REPORT TO THE MAYOR AND CITY COUNCIL
SUBJECT: Balboa Island Bayside Business Improvement District Renewal
and Expansion, Annual Report for 1998
SUMMARY: The Marine Avenue Business Improvement District was established
January I, 1996. This report summarizes the District's
accomplishments during 1998, its third year of operation, and the
proposed activities and budget for the coming year. The Marine
Avenue Business Improvement District Board of Directors, which
serves as the District Advisory Board, requests City Council
approval of the annual report, expanded areas of benefit and
boundaries, name change to Balboa Island Bayside Business
Improvement District, modification of assessments and scheduling
of the public hearing for December 14, 1998.
ACTION:
4
Overview
Approve Marine Avenue Business Improvement District
1998 Annual Report; and
Adopt the Resolution of Intention and set the public hearing
for December 14, 1998.
The Marine Avenue Business Improvement District is nearing the end of its third year of operation
and requests renewal of the District for 1999. State law requires that an annual report be prepared
and a public hearing be held each year prior to renewal of the District. This report will provide a
summary of accomplishments during 1998 and a list of proposed activities for the new year, as well
as an explanation of proposed changes to the assessment calculations. The Advisory Board has also
requested the district boundaries be expanded and the name of the Business Improvement District
be changed.
Boundary Expansion and Name Change
The Advisory Board of the Business Improvement District is proposing an expansion of its
boundaries to include businesses located near the ferry landing and at the "hub" of the Bayside
Drive bridge area, described fully in the attached Annual Report and shown on the attached map
"Exhibit A." The new areas currently benefit from some of the existing activities described in the
Annual Report such as the Balboa Island brochure distribution and coordination with The Orange
County Connection visitor busses. They will increasingly benefit from proposed activities such as
sidewalk steam cleaning, promotions, and seasonal decorations and lighting as the District expands.
CITY OF NEWPORT BEACH
EaPO
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COMMUNITY AND ECONOMIC
Hearing Date:
November 23, 1998
'c, ��
DEVELOPMENT
•`
PLANNING DEPARTMENT
Agenda Item No.:
5
3300 NEWPORT BOULEVARD
Staff Person:
Christy Teague
NEWPORT BEACH, CA 92658
(949) 644 -3207
(949) 644 -3200; FAX (949) 644 -3250
REPORT TO THE MAYOR AND CITY COUNCIL
SUBJECT: Balboa Island Bayside Business Improvement District Renewal
and Expansion, Annual Report for 1998
SUMMARY: The Marine Avenue Business Improvement District was established
January I, 1996. This report summarizes the District's
accomplishments during 1998, its third year of operation, and the
proposed activities and budget for the coming year. The Marine
Avenue Business Improvement District Board of Directors, which
serves as the District Advisory Board, requests City Council
approval of the annual report, expanded areas of benefit and
boundaries, name change to Balboa Island Bayside Business
Improvement District, modification of assessments and scheduling
of the public hearing for December 14, 1998.
ACTION:
4
Overview
Approve Marine Avenue Business Improvement District
1998 Annual Report; and
Adopt the Resolution of Intention and set the public hearing
for December 14, 1998.
The Marine Avenue Business Improvement District is nearing the end of its third year of operation
and requests renewal of the District for 1999. State law requires that an annual report be prepared
and a public hearing be held each year prior to renewal of the District. This report will provide a
summary of accomplishments during 1998 and a list of proposed activities for the new year, as well
as an explanation of proposed changes to the assessment calculations. The Advisory Board has also
requested the district boundaries be expanded and the name of the Business Improvement District
be changed.
Boundary Expansion and Name Change
The Advisory Board of the Business Improvement District is proposing an expansion of its
boundaries to include businesses located near the ferry landing and at the "hub" of the Bayside
Drive bridge area, described fully in the attached Annual Report and shown on the attached map
"Exhibit A." The new areas currently benefit from some of the existing activities described in the
Annual Report such as the Balboa Island brochure distribution and coordination with The Orange
County Connection visitor busses. They will increasingly benefit from proposed activities such as
sidewalk steam cleaning, promotions, and seasonal decorations and lighting as the District expands.
The name has been changed to `Balboa Island Bayside Business Improvement District' to better
describe the areas included in the expanded Business Improvement District.
The Advisory Board has been undergoing an outreach campaign to the expanded areas. These areas
have received two mailings, an invitation to a mixer, and personal visits from Board members. The
Advisory Board feels there is overall support for the expansion. At the time this report was
prepared, the City had received four letters of opposition from businesses in the expansion area near
the ferry landing, which are attached.
1998 District Accomplishments
The Marine Avenue Business Improvement District has sponsored the following promotions and
activities during the past year:
1. The distribution of a full color Balboa Island brochure to hotels and visitor racks throughout
Orange County. The merchants have found this to be a very effective tool in bringing visitors to
Balboa Island.
2. Christmas decorations and lighting to enhance holiday shopping along Marine Avenue.
3. Participation with the Anaheim/Orange County Visitors and Conference Bureau to more widely
encourage county -wide tourists to visit Balboa Island.
4. Coordination with The Orange County Connection tour bus service. The Bayside stop at the
foot of the bridge is the second -most popular destination in the County, following only South
Coast Plaza and exceeding Fashion Island by 39 %.
5. Regular steam cleaning of area sidewalks.
6. Participation with the Newport Beach Conference and Visitors Bureau.
7. Partial sponsor of Celebrate Balboa Island Parade.
8. Quarterly "Navigator" Newsletter to Members.
1998 District Revenues
During 1998 the district collected approximately $15,250 and has spent approximately $11,750 for
approved activities. It is anticipated that a remaining balance of approximately $1,000 will be
carried over into the 1999 budget.
Posed Activities and Budget
The activities proposed for the next year include marketing, advertising, public relations, and public
improvements and maintenance to benefit Balboa Island and Bayside area businesses. The
estimated budget for these activities is approximately $16,000.
Page 2
Assessment Collection
For 1999 the assessment is proposed to be reduced from 190 percent of the total business license
tax to 150 percent of the total business license tax for most businesses. The exceptions are to
remain the same: $25 for second floor businesses, independent contractors working for businesses
such as hair salons or real estate brokers are exempt, and individuals with more than one business
within the District are required to pay only one assessment. Assessments are collected in one
installment at the beginning of the year, and are pro -rated for new businesses that open during the
year.
Public Notices
A public notice was published in the Daily Pilot and sent by mail to businesses in the existing and
proposed areas of the Business Improvement District forty -five days prior to the protest hearing of
December 14, 1998 as required by State law. There will be a mailing of a complete copy of the
resolution of intention by first -class mail to each business owner in the area within seven days of
the City Council's adoption of the resolution of intention. There will also be publishing of the
resolution of intention in the newspaper at least seven days before the public hearing according to
State law.
The list used for the public notice was developed through the City's business license file. The list
has been shared with the Business Improvement District Advisory Board for review and revisions,
and has already been corrected to reflect changes in businesses discovered since the first mailing.
Conclusion
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 State law.
Submitted by:
SHARON Z. WOOD
Assistant City Manager
Attachments: nual Report
Draft Resolution of Intention
Exhibit A - Boundary Map
Prepared by:
CHRISTY D. TEAGUE, AICP
Senior Planner
I
F:\...\BIDS\MARINE\COUNCIL\99RENEW\CC-RPTI.DOC
Page 3
MARINE AVENUE BUSINESS IMPROVEMENT DISTRICT
(BALBOA ISLAND BAYSIDE BUSINESS IMPROVEMENT DISTRICT)
1998 ANNUAL REPORT
This is the annual report for the third year of the Marine Avenue Business
Improvement District, proposed to become the Balboa Island Bayside 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 year (January 1, 1998 to December 31, 1998) and the proposed
activities and budget for 1999.
The name of the Business Improvement District is being changed from the
Marine Avenue Business Improvement District to the Balboa Island Bayside
Improvement District. The boundaries of the Business Improvement District are
being expanded to: generally the 200 and 300 blocks of Marine Avenue, the 100
block of Agate Avenue, 406 to 508 South Bay Front, 1101 to 1137 Bayside
Drive (odd only), and 900 to 1090 Bayside Drive (even only), as set forth with
greater specificity in the map attached as Exhibit A and incorporated herein. All
of these areas will benefit from the improvements and activities provided by the
Business Improvement District.
The improvements and activities to be provided for the new fiscal year include:
1. Marketing, advertising and public relations.
2. Brochure development and distribution.
3. Promotion of public events which are to take place on or in any public places
in 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.
The estimated cost of providing the proposed improvements and the activities
described in this report are approximately $16,000.
The benefit assessment shall be equal to one hundred fifty percent (150 %) of
the City's annual business license fee as established pursuant to Chapter 5.08 of
the Municipal Code for most businesses or $25 if a second floor business.
Independent professionals such as real estate salespeople are exempt.
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. 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.
Assessments shall be collected in one annual installment at the beginning of the
year, and be pro -rated for new businesses that open during the year.
The amount of surplus carried over from 1998 is approximately $3,500 at the
end of the first ten months of the year. It is anticipated the balance will be
approximately $1,000 at the year end, December 31, 1998.
The advisory group of the Balboa Island Bayside 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 1999 budget.
Among the Marine Avenue Business Improvement District accomplishments
during 1998 are the following:
1. The distribution of a full color Balboa Island brochure to hotels and visitor racks
throughout Orange County. The merchants have found this to be a very
effective tool in bringing visitors to Balboa Island.
2. Christmas decorations and lighting to enhance holiday shopping along Marine
Avenue.
3. Participation with the Anaheim /Orange County Visitors and Conference Bureau
to more widely encourage county -wide tourists to visit Balboa Island.
4. Coordination with The Orange County Connection tour bus service. The
Bayside stop at the foot of the bridge is the second -most popular destination
in the County, following only South Coast Plaza and exceeding Fashion
Island by 39 %.
5. Regular steam cleaning of area sidewalks.
6. Participation with the Newport Beach Conference and Visitors Bureau.
7. Partial sponsor of Celebrate Balboa Island Parade.
8. Quarterly "Navigator" Newsletter to Members.
The Balboa Island Bayside Business Improvement District appreciates the City
Council's continued support.
2
RESOLUTION NO. 98-
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 YEAR OF
JANUARY 1, 1999 TO DECEMBER 31, 1999, TO CHANGE THE NAME TO
THE BALBOA ISLAND BAYSIDE BUSINESS IMPROVEMENT DISTRICT, TO
EXPAND THE BOUNDARIES, TO MODIFY THE BASIS FOR LEVYING
ASSESSMENTS AND FIXING 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
Calendar Year 1998 which is on file in the Office of the City Clerk; and
WHEREAS, the Advisory Board has requested the boundaries be
expanded to include more business areas on and around Balboa Island which have
benefited from the activities of the District; and
WHEREAS, the assessment will benefit the existing and expanded
boundaries within the District; and
WHEREAS, the expanded boundary areas will be benefited by
improvements and activities of the District; and
WHEREAS, the Advisory Board has requested the name of the District be
changed to reflect all benefited business areas within the District; and
2
WHEREAS, the Act requires the City Council to declare its intention to
levy and collect assessments within the Business Improvement District for the next year;
and
WHEREAS, the Business Improvement District Advisory Board has
recommended the basis for levying assessment be modified.
NOW, THEREFORE, the City Council of the City of Newport Beach
resolves as follows:
Section 1: The Annual Report by the Advisory Board is on file as required
by State law. The Annual Report contains a description of improvements and activities to
be provided for 1999, the area boundaries, and the annual assessments within the District.
Section 2: The City Council hereby declares it intention to renew the
Business Improvement District for the year January 1, 1999 to December 31, 1999
pursuant to the Act.
Section 3: The boundaries of the District are proposed to be expanded to
include: generally the 200 and 300 blocks of Marine Avenue, the 100 block of Agate
Avenue, 406 to 508 South Bay Front, 1101 to 1137 Bayside Drive (odd only), and 900 to
1090 Bayside Drive (even only), as set forth with greater specificity in the map attached
as Exhibit A and incorporated herein.
Section 4: The District name is proposed to be changed from "Marine
Avenue Business Improvement District' to "Balboa Island Bayside Business
Improvement District' to reflect all benefited business areas within the District.
Section 5: The City Council intends to levy a benefit assessment upon
persons conducting business in the District. Such benefit assessment shall be as follows:
Resolution No. 98 -_
Balboa Island Bayside Business Improvement District
91
A. 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:
I. Hair stylists
2. Nail technicians
3. Real estate agents
B. The assessment for second floor businesses shall be $25.
C. 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 6: 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 year.
Section 7: 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 8. 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. 98 -_
Balboa Island Bayside Business Improvement District
51
Section 9: 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 which are to take place on or in any public places in the
r<Texti
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 December 14, 1998 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 which 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
Resolution No. 98 -_
Balboa Island Bayside Business Improvement District
WR
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.
Further information regarding the proposed Business Improvement District
renewal and expansion 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 and
thereon held on the day of 1998.
lu: •�
ATTEST:
CITY CLERK
ATTACHMENT: Exhibit A - Boundary Map
Resolution No. 98 -_
Balboa Island Bayside Business Improvement District
�1"7 William C. Hardesty
Realtor
503 Park Avenue, Balboa Island, Ca. 92662
(949) 675 -2866 FAX(949)673-7118
Email - BatboaHomeeaol.eom
31 Years on Balboa Island. 41 years in Ncwpoa Beach
November 4, 1998
Christy Teague, Senior Planner
City of Newport Beach Planning Dept.
3300 Newport Boulevard
Newport Beach, Ca. 92658 -8915
Please forward a copy to each City Council Member.
Re. Balboa Island Bayside Business Improvement District
And Newport Beach Restaurant Association
Dear Christy and Honorable City Council Members,
alsw hind saw I 967
RECEIVED BY
PLANNING DEPARTMEN7
CITY OF N WPPPT ,E4.C� --
AM NN '10 1998 PM
71819110111112111213141516
I have a real estate business at 503 Park Ave. on Balboa Island, and Park Ave. Cafe at 501 Park
Ave. on Balboa Island, and I am opposed to both of the above bids.
I have successfully operated my real estate office on Balboa Island since 1967, and Park Ave.
Cafe since 1984 without these "Bids ".
As a past Board Member of the Balboa Island Improvement Association, I know that gaining
and maintaining membership and funds to operate is hard work, but can be accomplished without
demanding funds from unwilling participants. We were often disappointed when someone
wouldn't join the Association , so I can imagine how jubilant the leadership of the Newport
Restaurant Association and the Balboa Island Business Association were when they found a way
to force all merchants to pay. It may be easier for the leaders, but in my opinion it's an abuse of
legislation intended for blighted areas.
The leadership of both associations should join the Chamber of Commerce and head up a
committee to fulfill their desires. That's the American Way!
These bids amount to "tax and spend" wherein businesses are taxing businesses and competing
with the Chamber of Commerce.
I would much rather increase my contribution to "Defend the Bay" than give "spin" money to
these associations. Restaurant guides are a dime a dozen. Heavy traffic and parking shortages
prove that everyone who comes to Newport wants to see Balboa Island and a clean bay. I'll do
my own advertising, thank you!
Yours to Y, (�
William C SHardesty
i� �i �i- aj �� ,/
API -114 4 l� r � ��
ro-,
406 South Bay Front
Balboa Island, Ca. 92662
(949) 723 -0883
November 7, 1998
RECEIVED BY
PLANNING DEPARTMENT
CITY OF NEWPORT nEAC,
Christy Teague, Senior Planner p lyyg
City of Newport Beach, Planning Dept. Ah1 PM
3300 Newport Boulevard 4i6i9110111ilui1iGi3i41516
Newport Beach, California 92658 -8915 1
Re: Balboa Island, Bayside Business Improvement District.
Please notify the City Clerk and the City Council that I am opposed to this
business improvement discrict and do not wish to participate.
/
Yours truly,
Jo
Owner
1bucky 1tuv91
�LOft7£ZS
114 AGATE AVE. • BALBOA ISLAND, CA 92662 • (714) 675 -9484
RECEIVED BY
PLANNING DEPARTMENT
CITY OF NEWPORT BEACH
November 10, 1998 AM NOV 16 1996 PM
71819110111112111213141518
Christy Teague, Senior Planner
City of Newport Beach, Planning Dept.
3300 Newport Blvd.
Newport Beach, Calif. 92658 -8915
Re: Balboa Island, Bayside Business Improvement District
Please notify the City clerk and the City Council that I am opposed to this business
irfpro�ement district and do not wish to participate.
Yo truly
9ckv / &
erth, Owner
uvs Flower s
Aw
HIS
BALWA ISLAND
November 11, 1998
City Clerk
City Of Newport Beach
3300 Newport Boulevard
Newport Beach, California 92658 -8915
Dear City Clerk,
RECEIVED
'98 HOV 17 A 8 55
OFFICE OF T1;= CIT f CLERK
CITY OF F, ;-_wP�URT BEACH
Re: Proposed Expansion of Marine Avenue
Business Improvement District ( "BID ")
Protest of Proposed Expansion
As a small business owner on Balboa Island, I am submitting thiss written protest to the
proposed expansion of "BID" per the instructions in your notice dated October 30, 1998.
My Business: JP's
Address: 504 So. Bayfront, Balboa Island, Ca. 92662
Owner: John P. Carroll
I am against the proposed expansion and assessment because my business is located between
Agate and Opal near the Ferry Landing, well removed from businesses on and around Marine
Avenue -- businesses that historically are the only beneficiaries of activities and improvements that
promote business. In effect, the proposed expansion causes my business to be taxed for
improvements and activities that do not result in enhancing my business.
Frankly, your notice caught me quite by surprise, as the existing "BID" never approached me
to advise of this proposed expansion, nor was I given any information as to the nature of any
proposed activities and improvements and how those things might enhance my business. If such
improvements and activities are to be made and take place on and around Marine Avenue, then
the proposed expansion of "BID" and the resultant assessment is very unfair to my business.
Please advise the City Council of my protest, and thank you for notifying me.
Sin7eel Y�rs, �%�
JMhn P. Carroll