HomeMy WebLinkAboutRDA Agenda Packet 2006/03/07
i declare under pen",l,. u, ,j~' jury that I am
employed by the City of Chula Vista in the ~ ~ f/:.
of the City Clerk and that I posted th~
on the bulletin board according
re irements. ~ ~ --"'-
SIGNED
Stephen C. Padilla, Mayor/Chair
Patricia E. Chavez, Council/Agency Member David D. Rowlands, Jr., City Manager/Executive Director
John McCann, Council/Agency Member Ann Moore, City Attorney/Agency Counsel
Jerry R. Rindone, Council/Agency Member Susan Bigelow, City Clerk
Steve Castaneda, Council/Agency Member
March 7, 2006
4:00 P.M.
(Immediately following the City Council Meeting)
Council Chambers
City Hall
276 Fourth Avenue
CALL TO ORDER
ROLL CALL: Council/Agency Members Castaneda, Chavez, McCann, Rindone, and
Mayor/Chair Padilla
CONSENT CALENDAR
(Item I)
The Council/Agency will enact the Consent Calendar staff recommendations by
one motion, without discussion, unless a Council/Agency Member, a member of
the public, or City staff requests that an item be removed for discussion. If you
wish to speak on one of these items, please fill out a "Request to Speak" form
(available in the lobby) and submit it to the City Clerk prior to the meeting. Items
pulled from the Consent Calendar will be discussed immediately following the
Consent Calendar.
I. APPROVAL OF MINUTES of January 10, 2006.
Staffrecommendation: Council approve the minutes.
ITEMS REMOVED FROM THE CONSENT CALENDAR
PUBLIC COMMENTS
Persons speaking during Public Comments may address the Council/Agency on
any subject matter within the Council/Agency's jurisdiction that is not listed as an
item on the agenda. State law generally prohibits the Council/Agency from taking
action on any issue not included on the agenda, but, if appropriate, the
Council/Agency may schedule the topic for future discussion or refer the matter to
staff. Comments are limited to three minutes.
._-~_.----_.~---------~--...~_.__..__... --"-~'~'-------'-"---'------'---,-"
ACTION ITEM
The Item listed in this section of the agenda will be considered individually by the
Council/Agency, and is expected to elicit discussion and deliberation. If you wish
to speak on any item, please fill out a "Request to Speak" form (available in the
lobby) and submit it to the City Clerk prior to the meeting.
2. CONSIDERATION BY THE CITY COUNCIL AND THE REDEVELOPMENT
AGENCY OF AUTHORIZING THE CITY MANAGER/EXECUTIVE DIRECTOR TO
SIGN A PETITION PROPOSING THE RENEWAL AND EXPANSION OF THE
DOWNTOWN CHULA VISTA PROPERTY-BASED BUSINESS IMPROVEMENT
DISTRICT ON BEHALF OF THE CITY AND AGENCY
The City of Chula Vista owns property located within the proposed Property Based
Business Improvement District (PBID) boundaries. The Downtown Chula Vista PBID is
legally required to petition all property owners, located within the proposed PBID
boundaries, as part of its renewal process. Adoption of the resolution authorizes the City
Manager to sign the PBID petition on behalf of the City for all City-owned parcels
located within the proposed PBID boundaries. (Assistant City Manager/Community
Development Director)
Staff recommendation: Council adopt the following resolution:
JOINT RESOLUTION OF THE CITY COUNCIL AND THE
REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA
AUTHORIZING THE CITY MANAGERlEXECUTIVE DIRECTOR TO SIGN
THE PETITION PROPOSING THE RENEWAL AND EXPANSION OF THE
DOWNTOWN CHULA VISTA PROPERTY-BASED BUSINESS
IMPROVEMENT DISTRICT ON BEHALF OF THE CITY AND AGENCY
OTHER BUSINESS
3. CITY MANAGER/DIRECTOR'S REPORTS
4. MAYOR/CHAIR'S REPORTS
5. COUNCIL/AGENCY MEMBER'S COMMENTS
ADJOURNMENT to the Regular Meeting of March 14, 2006 at 6:00 p.m. in the Council
Chambers.
In compliance with the
AMERICANS WITH DISABILITIES ACT
The City of Chu/a Vista requests individuals who require special accommodations to access, attend, and/or participate in a City
meeting, activity, or service request such accommodation at least forty-eight hours in advance for meetings and five days for
scheduled services and activities. Please contact the City Clerk for specific information at (619) 691-5041 or
Telecommunications Devicesfor the Deaf(TDD} at (619) 585-5655. California Relay Service is also available for the hearing
impaired.
Page 2 - Jt. CouncilJRDA Agenda
http://www.chulavistaca.gov
March 7, 2006
MINUTES OF AN ADJOURNED REGULAR MEETING OF THE CITY COUNCIL
AND A SPECIAL MEETING OF THE REDEVEL~MENT AGENCY
OF THE CITY OF CHULA VISTA
January 10, 2006
6:00 P.M.
An Adjourned Regular Meeting of the City Council and a Special Meeting of the Redevelopment
Agency were called to order at 8:45 p.m. in the Council Chambers, located in City Hall, 276
Fourth Avenue, Chula Vista, California.
ROLL CALL:
PRESENT: Council/Agency Members: Castaneda (arrived at 6:13 p.m.), Chavez,
McCann, Rindone and Mayor/Chair Padilla
ABSENT: Council/Agency Authority Members: None
ALSO PRESENT: City Manager/Executive Director Rowlands, City Attorney/
Agency Counsel Moore, and City Clerk Bigelow
CONSENT CALENDAR
(Items 1 through 2)
Councilmember Chavez stated she would abstain from voting on the minutes of November 22
and December 6,2005, as she was not on the Council at the time.
1. APPROVAL OF MINUTES of November 22, 2005 and December 6,2005.
Staffrecommendation: Agency approve the minutes.
2 A. COUNCIL RESOLUTION NO. 2006-010 AND AGENCY RESOLUTION NO. 2006-
1931, JOINT RESOLUTION OF THE CITY COUNCIL AND THE
REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA APPROPRIATING
FUNDS FOR AN AGREEMENT WITH HARRELL & COMPANY ADVISORS, LLC
TO SERVE AS FINANCIAL ADVISORS (4/5THS VOTE REQUIRED)
B. COUNCIL RESOLUTION NO. 2006-011 AND AGENCY RESOLUTION NO. 2006-
1932, JOINT RESOLUTION OF THE CITY COUNCIL AND THE
REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA W AlVING THE
FORMAL CONSULTANT SELECTION PROCESS AND APPROVING THE FIRST
AMENDMENT TO THE AGREEMENT WITH ECONOMIC & PLANNING
SYSTEMS; AUTHORIZING THE MAYOR TO EXECUTE THE AMENDMENT;
AND APPROPRIATING FUNDS THEREFOR (4/5THS VOTE REQUIRED)
CONSENT CALENDAR (continued)
/
C. COUNCIL RESOLUTION NO. 2006-012 AND AGENCY RESOLUTION NO. 2006-
1933, JOINT RESOLUTION OF THE CITY COUNCIL AND THE
REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA WAIVING THE
FORMAL CONSULTANT SELECTION PROCESS AND APPROVING THE FlRST
AMENDMENT TO THE AGREEMENT WITH ROSENOW SPEV ACEK GROUP;
AUTHORIZING THE MAYOR TO EXECUTE THE AMENDMENT; AND
APPROPRIATING FUNDS THEREFOR (4/5THS VOTE REQUIRED)
Adoption of the resolutions approves a new contract with Harrell & Co. and amendments
to existing contracts with Economic & Planning Systems and Rosenow Spevacek Group
for ongoing professional services on an as-needed basis with the City and Redevelopment
Agency for consultation on City and Redevelopment projects, financing strategies and
general fiscal and economic consulting services. (Finance Director)
Staff recommendation: Council/Agency adopt the resolutions.
ACTION:
Mayor/Chair Padilla moved to approve staffs recommendations and offered the
Consent Calendar, headings read, texts waived. The motion carried 5-0 except on
Item 1, which carried 4-0-1, with Councilmember Chavez abstaining since she
was not on the Council at the time.
ITEMS REMOVED FROM THE CONSENT CALENDAR
There were none.
PUBLIC COMMENTS
There were none.
OTHER BUSINESS
3. CITY MANAGER/DIRECTOR'S REPORTS
There were none.
4. MAYOR/CHAIR'S REPORTS
There were none.
5. COUNCIL/AGENCY MEMBERS' COMMENTS
There were none.
ADJOURNMENT
At 8:47 p.m., Mayor/Chair Padilla adjourned the Redevelopment Agency to the Regular Meeting
of January 17, 2005, at 6:00 p.m., immediately following the City Council Meeting in the
Council Chambers.
, , ! )
-~ J:u ~~IS~.
Susan Bigelow, MMC, City Clerk
Page 2 - CouncillRDA Minutes
http://www.chula vistaca. gov
January 10, 2006
PAGE 1, ITEM NO.:
MEETING DATE:
~
03/07/06
CITY COUNCIL/REDEVELOPMENT AGENCY AGENDA STATEMENT
JOINT RESOLUTION OF THE CITY COUNCIL AND THE
REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA
AUTHORIZING THE CITY MANAGER/EXECUTIVE DIRECTOR TO
SIGN THE PETITION PROPOSING THE RENEWAL AND EXPANSION
OF THE DOWNTOWN CHULA VISTA PROPERTY-BASED BUSINESS
IMPROVEMENT DISTRICT ON BEHALF OF THE CITY AND THE
AGENCY
SUBMITTED BY: ASSISTANT CITY MANAGER/ DIR. OF COMMUNITY DEVELOPMEN
ITEM TITLE:
REVIEWED BY:
CITY MANAGER (II
~~~
4/5THS VOTE: YES D NO 0
BACKGROUND
The Downtown Chula Vista Property-Based Business Improvement District (PBID) was
formed in 2001 to proactively implement a number of enhancement services and
programs within the downtown core. Administered by the Downtown Business
Association (DBA), the PBID was established to promote a cleaner, safer, and more
attractive business district. The PBID was inaugurated for a five-year term beginning in
2001. In order to continue operation, the PBID must be renewed by June 2006 by a
majority of returned property owner ballots via a weighted ballot process.
In November 2005, staff presented a report discussing the PBID expansion that includes two
additional City parcels, the Main Library and Police Station, and maintains the remainder of
the existing PBID boundary. There was discussion from members of the Council regarding
PBID accomplishments to date, and the proposed PBID boundary expansion and its
financial impacts, and the report was accepted.
Prior to the official balloting process for the renewal of the PBID, the DBA is legally
required to turn in a petition from property owners representing a majority of the total
assessments to be paid. The total annual assessment amount for the first year of the
PBID is estimated to be nearly $408,000, therefore the petitions must represent more
than $204,000, of the total assessments. The City's petition will count toward this
amount, since the City pays into the District. Staff is recommending the City Council
approve the attached resolution authorizing the City Manager to sign the petition on
behalf ofthe City.
2-1
PAGE 2, ITEM NO.:
MEETING DATE:
~
03/07/06
RECOMMENDATION
Approve the resolution authorizing the City Manager/Executive Director to sign the
petition on behalf of the City and the Agency.
BOARDS/COMMISSIONS RECOMMENDATION
Not applicable.
DISCUSSION
Over the past five years, the PBID, under the management of the DBA, has operated the
City's downtown business district. Tne PBID and DBA have pravided a unified voice and
offered influence to help chart downtown's destiny. New investment has added office
buildings, restaurants and retail stores. Recent surveys of property and business owners
indicate that Downtown has become safer and cleaner in the past five years. PBID services
are directly attributed to these positive changes. Additional accomplishments of the PBID, in
collaboration with the DBA, include the following:
· Continued enhanced maintenance activities, including the removal of graffiti, periodic
power washing of sidewalks, litter removal and clean-up after special events.
· Successfully executed Cinco de Mayo, Pet Fest, Blast from the Past Car Show, Thursday
Concerts in the Park, Thursdays on Third, Farmers Market, Taste of Third Avenue,
Lemon Festival and the Annual Starlight Parade. These weekly, seasonal and/or annual
events draw thousands of visitors and revenue to the Village.
· Collaborated with the City and State agencies to take action regarding bills that would
have negatively impacted the way assessment districts are developed and managed.
· Developed and forwarded to the City a newsrack ordinance to address the newsrack
issues within the Village.
· Held periodic meetings with the Executive Board and City Manager regarding PBID and
DBA matters.
. Developed and approved parking standards for the Village and Third Avenue.
· Created, approved and implemented Third Avenue Village brand identity marketing
icons: "Shop, Dine, Live, Enjoy and Discover". .
. Held business development seminars for PBID members on an annual basis.
· Participated in the Bayfront Master Plan planning group; supported the proposed
project.
· Assisted with the openings of new businesses in the Village district.
The DBA's new Management Plan lists economic development and marketing strategies
that should be implemented, to support the growth and vitality of existing businesses, attract
new businesses and enhance the image of downtown Chula Vista as a destination for
2-2
PAGE 3, ITEM NO.:
MEETING DATE:
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03/07/06
consumer, investor and visitor markets. District-wide enhanced maintenance activities that
will be added include alley and parking lot cleaning.
To continue operation, the PBID must be renewed by June 2006 by a majority of returned
property owner ballots via a weighted ballot pracess. A majority of the property owners
must turn in a petition in order for the balloting process to move forward.
FISCAL IMPACT
There is no immediate fiscal effect associated with this matter. However, the inclusion of
City and Agency properties within the PBID and the obligation to pay assessments to the
District, if it is successfully renewed, will have fiscal impacts beginning with the 2006-2007
budget year.
Currently, the PBID assessment is approximately $48,000, of which City owned parcels
account for $31,000, and Redevelopment Agency owned parcels account for $17,000.
This funding level comprises less than 15% of the District's revenue. By comparison, the
County of San Diego pays about $60,000 annually.
The proposed expanded boundaries, which include the Main Library and Police Station,
would increase the total assessment to approximately $80,000, which is $32,000 more
than the current assessment. The assessment would be paid from the General Fund.
The following table provides a breakdown of the existing and proposed City assessments to
the PBID:
CURRENT ANNUAL CITY ASSESSMENT TO PBID $48,000
Plus: Library 17,000
Plus: Police Station 15,000
New Total 80,000
Assuming the District renewal is ultimately approved by property owner ballot, the City will
be obligated to assessment payments of approximately $80,000 per year, or $800,000 for
the ten year renewal period. This amount could be adjusted slightly upwards by a cost of
living provision within the District documents, which by law cannot exceed five percent and
which in the last five years have not exceeded four percent.
ATTACHMENTS
Attachment #1 - Downtown Chula Vista PBID Proposed Baundaries Map
Attachment #2 - City of Chula Vista Petition, including the draft Management District
Plan
J:\COMMDEV\STAFF.REPI2006\03-07-06\PBID Petition & City Mgr. Authorization.doc
2-3
ATTACHMENT 1
~l~
~
CHU9A ~ISTA ,
----........,
'C....c......Iol,"".
""Proje<tl01127/1le
ndariesforthe
Proposed B;~u(a Vista PBID .
Downtown d Sel"Vlces
_Third Av Enhance
. IUdeBoundary
eJOiStrict-v..
Parcels
Chula Vista
Downtown
2 4
02/28/2005 17:32
5194221452
CVDBA
ATTACHMENT 2
PRELIMINARY PETITION TO FORM THE
DOWNTOWN CHULA VISTA
BUSINESS IMPROVEMENT DISTRICT
(Pursuant to SI!1C. 36600 et seq. of the Calif. St/'gets and Highway Code)
This is a petition to initiate special assessment proceedings to form the Property Ba:sed
Business Improvement District in accordance with the Property and Busilless
Improvement District Law of 1994, California Streets and Highways Code Secllons
36600 et seq., for the purpose of undertaking and implementing the Managertlent
District Plan, a copy of which is attached.
Legal Owner: CITY OF CHULA VISTA
Owner "10 of Total Assessment: 15.36%
APN:
568-044-02-00
568-044-09-00
568-044-1 0-00
568-044-11.00
568-071-18-00
568-071-19-00
568-152-01-00
568-152-23-00
568-152-24-00
568- 152-25-00
568-152-26-00
568-152-27-00
568-153-02-00
568-161-25-00
568.270.03-00
568-270-10-00
566-270.11-00
568-270-29-00
508-333-11-00
568-350-02-00
566-350-03-00
Contin(l~d on page 2
Parcel AddreN (if known)
Parcel Assesa't!!!!
$653.35
$5t1.79
$1,315.34
$1,3$6.02
$a46.00
$7117.35
$5$4.53
$617.17
$5;3.91
$4$3.69
$3$6.65
$2"0.75
$16,7T7.19
$1 A1l6.50
$10,529.88
$2,9/9.77
$1 ,4~6.11
$13,31l6.96
$6.123.67
$Slll.38
$8110.10
Total $62.668.14
205 Landis Ave
246 Church Ave
279 Landis Ave
263 Landis Ave
2-5
02/28/2005 17:32
5194221452
CVDBA
PAGE 03
City of Chula Vista Petition, continued
Page 2
YES, I approve of the proposed assessment of $62,658.14 on the
parcel(s) identified on this preliminary petition.
(Print) Name and 17tle of Owner of Record or an Authorized Representative (in case of property
being owned by non-individuals)
Signature of Owner of Record or Authorized Representative
Date
Please return signed and dated Preliminary Petition to:
Chula Vists Downtown Business Association
272 Third Avenue
Chula Vista, CA 91910
2-6
02/28/2005 17:32
5194221452
PAGE 04
CVDBA
PRELIMINARY PETITION TO FORM THE
DOWNTOWN CHULA VISTA
BUSINESS IMPROVEMENT DISTRICT
(Pursuant to Sec. 36600 at saq. arthe Calif. streets and Highway C0d6)
This is a petition to initiate special assessment proceedings to form the Property Bbed
Business Improvement District in accordance with the Property and Busihess
Improvement District Law of 1994, Califomia Streets and Highways Code Sec;tions
36600 et seq., for the purpose of undertaking and implementing the Managelnent
District Plan, a copy of which is attached.
Lega' Owner: CITY OF CHULA VISTA REDEVELOPMENT AGENCY
Owner % of Total As....m.nt: 4.26%
APN:
568-071~1~0
568-071-21-00
568-071-22-00
568-152-O2~0
568-152-03-00
568-152-29-00
568-162-08-00
568-162-09-00
568-30Q-44-00
568-334-05-00
568-334-00-00
568-334-07-00
568-334~8-O0
568-351-04-00
568-351-0~0
568-450.s4-00
Parcel Add..... (If known)
201 31d Ave
Church Ave
230 Church Ave
281 landis Ave
285 Landis Ave
"no Site Address'
281 Church Ave
287 Church Ave
356 31d Ava
288 Center st
336 Church Ave
338 Church Ave
342 Church Ave
Church Ave
Church Ave
31d Ave
Parcel As.........nt
'I
$1~.55
$ .13
0.22
5.41
$616.81
$$t5.11
$1111.09
$W8.41
$7,7136.41
$lM9.24
$$t0.57
$l:M7.23
$$10.87
Slil8.36
$319.74
$135.96
Total $17,35o:'iO
Continued on page 2
2-7
02/28/2005 17:32
5194221452
CVDBA
PAGE 05
City of Chula Vista Redevelopment Petition, continued
Page 2
YES, I approve of the proposed assessment of $17,360.10 on" the
parcel(s) identified on this preliminary pelilion.
I'
(Print) Name and nile of Owner of Record or an Authorized Representative (in case of pr~et1y
being owned by non-Individuals)
Signature of Owner of Record or Authorized Representative
Date
~
Please return signed and dated Preliminary Petition to;
Chula Vista Downtown Business Association
272 Third Avenue
Chula Vista, CA 91910
2-8
Management District Plan
for the continuation of the
Downtown Chula Vista
Property-Based Business Improvement District
FINAL PLAN January 2006
CONTENTS
I. Summary of the Management District Plan 1
II. Why Continue the. Downtown Chula Vista PBID? 3
III. History and Track Record of the PBID 4
IV. Improvement and Activity Plan 6
A. Process to Establish the Plan
B. PBID Boundaries
C. Work Program
D. Plan Budgets
E. Ten Year Operating Budgets & Maximum Assessments
V. Assessments 13
A. Assessment Methodology
B. Calculation of Assessments
C. Assessment Adjustments
VI. Governance 17
Exhibits:
. Roster of the TAVA Board of Directors
. Engineer's Report
. List of properties to be benefited
. Map with parcel detail
Exhibits are available upon request from the
Third Avenue ViI/age Association
Prepared for the Third Avenue Village Association
by
Progressive Urban Management Associates, Inc.
and
Kristin Lowell Inc.
2-9
I. DOWNTOWN CHULA VISTA
PROPERTY-BASED BUSINESS IMPROVEMENT DISTRICT (PBID) SUMMARY
Established in 2001 by downtown property and business owners, in cooperation
with the Third Avenue Village Association (formerly the Chula Vista Downtown Business
Association) and the City of Chula Vista, the Downtown Chula Vista Property-Based
Business Improvement District (PBID) is a special benefit assessment district that conveys
special benefits to the properties located within the district boundaries. As described in
this plan, it is proposed that the PBID will continue to provide enhanced maintenance,
economic development and marketing programs, above and beyond those provided by the
City. This approach has been used successfully in downtown Chula Vista, improving the
district's business climate by improving its appearance, promoting storefront renovations
and making it more vibrant.
Location:
Improve-
ments &
Activities:
Method of
Financing:
Budget:
Cost:
The District currently encompasses approximately a 15-block area along
the Third Avenue commercial corridor, bounded roughly by E Street to the
north, Church Avenue to the east, Landis Avenue to the west and I Street
to the south. The expanded district will add approximately one block on F
Street, including the central library and police station. A map Df the
proposed district bDundary is attached and a more detailed map with
specific parcel lines will be provided upon request.
Economic Development & Marketing activities to support the growth and
vitality of existing businesses, attract new businesses and enhance the
image of downtown Chula Vista as a destination for consumer, investor
and visitor markets.
District-Wide Enhanced Maintenance activities to remove graffiti,
periodically power wash sidewalks, remove litter and clean after special
events. Alley and parking lot cleaning will be added.
Third Avenue Enhanced Maintenance activities include daily landscaping
and litter removal, periodic power washing, electricity and irrigation.
Levy of assessments upon real property that benefits from improvements
and activities.
Total district budget for its first year of operation is $407,925:
Activitv BudQet % of Total
Economic Development & Marketing $ 213,000 52.2
District-Wide Maintenance $ 37,000 9.1
Third Avenue Maintenance $ 56,000 13.7
Advocacv & Administration $ 82,500 20.2
Reserve $ 19,425 4.8
Total $ 407,925 100,0
Annual assessments are based upon an allocation of program costs and a
calculation of lot square footage and street frontage. Estimated annual
maximum assessment rates for the first year of the district follow:
1
2-10
Per sa.ft. af Lot Per foot of lot frontaae
Properties Along Third Ave
between E and H Streets $ 0.087 $10.70
All Other Pro-oerties in the District $ 0.087 $1.84
Cap:
Annual assessments may increase by as much as 5% per year to keep
pace with the consumer price index and other program costs. The
determination of annual assessment rates will be subject to the review and
approval of the PBID Owner's Association.
City
Services:
The City of Chula Vista has established and documented the base level of
pre-existing City services. The PBID will not replace any pre-existing
general City services.
District The PBID Owner's Association will continue to be the Third Avenue Village
Governance: Association (formerly the Chula Vista Downtown Business Association), a
non-profit organization consisting of property owners and businesses within
the Dlstrict.
District District continuation requires submission of petitions from property owners
Continuation: representing more than 50% of total assessments. Petitions are then
submitted to City Council and a mail ballot is sent to all affected property
owners. The majority of ballots returned, as weighted by assessments to
be paid, must not be in opposition to the PBID to allow City Council to
renew it.
Duration:
The district will have a 10-year life beginning January 1, 2007. In five years
(i.e. 2011), the Third Avenue Village Association and downtown property
owners will undertake a review of the Management District Plan and PB1D
programs. Any new or increased assessments that are not consistent with
the provisions of this Management District Plan will require a new mail
ballot process.
A complete copy of the
Downtown Chula Vista PBID Management District Plan
shall be furnished upon request by contacting the
Third Avenue Business Association at 619-422-1982.
2
2-11
II. WHY CONTINUE THE DOWNTOWN CHULA VISTA PBID?
The Downtown Chula Vista PBID was established by property and business owners
in 2001. The PBID was viewed as a pro-active private sector initiative to improve
downtown's business climate by providing enhanced maintenance services and
establishing pro-active economic development and marketing initiatives.
Since the creation of the PBID in 2001, downtown has continued to improve.
Downtown is widely perceived as safer and cleaner. New investment has added office
buildings, restaurants and retail stores. New housing and mixed-use development is now
anticipated as downtown evolves beyond its primary role as a retail and employment
center. Identified as the "Third Avenue Village" within the new Urban Core Specific Plan,
support for downtown revitalization is growing throughout the entire city. To protect and
leverage downtown's existing and new investment, the following reasons have been voiced
by downtown property and business owners for continuing the PBI D:
. Lead downtown through the next decade. The PBID and the Third Avenue
Village Association are recognized leaders of downtown's ongoing evolution. The
Third Avenue Village Association is an established public/private partnership,
offering influence to chart downtown's destiny and providing the resolve of a unified
voice representing downtown's diverse interests.
. Maintain and expand the level of enhanced cleanliness that has visibly
improved downtown since the PBID was formed. Responses from property
and business owner surveys and interviews find that downtown has become
remarkably cleaner in the past five years. PBI D services are directly attributed to
these positive changes.
. Accommodate downtown's evolution as the "Third Avenue Village" - a
consumer destination that is clean, safe and .fun for employees and visitors.
To capitalize on Downtown's potential for becoming a stronger local and regional
draw, the community is mobilizing energy and resources to realize the Third
Avenue Village vision. As part of this evolution, the Downtown Business
Association will become the Third Avenue Village Association CfAVA). The PBiD is
necessary to continue to provide a secure and reliable environment for the Village
experience and to support T A V A's efforts to market and manage the district.
. Be more competitive in a changing and challenging market with aggressive
economic development and marketing initiatives. The regional and national
economic environment is far more challenging today than it was several years ago.
In uncertain times, the PBID can be a tool to help attract new jobs, businesses,
housing, retail, entertainment and investment.
. Maintain private sector control and accountability for enhanced services. The
PBID will continue to be managed by the private non-profit Third Avenue Village
Association guided by its Board of Directors composed of downtown property and
business owners.
3
2-12
III. HISTORY AND TRACK RECORD OF THE DOWNTOWN PBID
What is a PBID?
The International Downtown Association estimates that more than 1,000
property-based business improvement districts (PBID) currently operate throughout
the United States and Canada. A PBID provides enhanced improvements and
activities, such as public safety, maintenance and marketing, in addition to
those provided by local government. PBIDs provide services that improve the
overall viability of business districts -- resulting in higher property values, sales and
tax revenues.
Since the creation of California's Property and Business Improvement
District Law in 1994, more than 70 new PBIDs have been established in California
downtowns and business districts.
Downtown Chula Vista PBID Performance: 2002 throuah 2005
The Downtown Chula Vista PBID was formed in 2001 following the
submission of petitions from downtown property owners to the Chula Vista City
Council. Beginning on January 1, 2002, the Chula Vista Downtown Business
Association began to provide services financed by the PBID, including:
. Uniformed Maintenance crews offer regular sweeping, litter and graffiti
removal and periodic power washing of downtown sidewalks. Daily service
is provided along Third Avenue. Since Third Avenue receives a higher
frequency of maintenance services from the PBID, property owners along
Third Avenue pay higher assessment rates based on street frontage.
. Economic Development & Marketing initiatives support the growth and
vitality of existing businesses, attract new businesses and enhance the
image of downtown Chula Vista for both consumer and investor markets.
The entire district shares in the costs and benefits from business support &
recruitment and public information services through a uniform assessment
rate based on lot square footage.
4
2-13
Property Owner Satisfaction with PBID Services
The Third Avenue Village Association has sought input from property and
business owners and continually measured success of the program. Key indicators
of success since 2001 have included:
. Cleaner sidewalks and attractive streets - Property owners respond that
downtown is significantly cleaner. In the most recent survey undertaken in
the early summer of 2005, 100% of respondents indicated that downtown is
cleaner and more attractive. 92% indicated that downtown's image is better
and 72% responded that downtown is perceived as safer.
. From 2003 to 2004, the incidence of graffiti tags was reduced by nearly
80%, from 216 to 50.
. Downtown has evidenced new investment over the past five years, including
the first and second phases of the Gateway project, a new police station and
many new businesses. Guided by the "Third Avenue Village" vision,
additional investment is under construction or planned, including new
housing, mixed-use, retail and entertainment development.
. Downtown sales tax receipts have increased each year and by nearly 37%
between fiscal years 2000 and 2004.
Fiscal Responsibility
With services delivered by the private non-profit Third Avenue Village
Association, which serves as the PBID's Owner's Association, and governed by its
Board of Directors consisting of downtown property and business owners, the PBID
has exercised a high degree of fiscal responsibility over its first five years. Key
fiscal management measures include:
. Accountability: While the original Management District Plan allowed for
annual rate increases of up to 5% per year, actual rate increases have
averaged about 3% per year.
. Efficiency: The PBID is supported by a small administrative staff at the
Third Avenue Village Association. PBID assessments are leveraged with
other funds raised by the TAVA, notably sponsorship revenues from special
events.
· Transparency: All PBID Owner's Association meetings and records are
subject to Califomia Brown Act requirements.
5
2-14
IV. IMPROVEMENT AND ACTIVITY PLAN
A. Process to Establish the Management District Plan
To form the Management District Plan for the continuation of the Downtown
Chula Vista PBID, area property and business owners and civic leaders have been
involved in a participatory process that was initiated in the Spring of 2005. The
consulting firms of Progressive Urban Management Associates and Kristin Lowell
Inc. were retained by the City of Chula Vista and the Third Avenue Village
Association (TAVA) to guide the process for renewing the Downtown PBID. Key
steps of the process included:
1. PSID Property Owner Renewal Committee: To guide the consultant team
and test PBID renewal concepts, the TAVA Board of Directors has served
as the PBID Property Owner Renewal Committee. A roster of the TAVA
Board of Directors is provided in the Appendix.
2. One-On-One and Roundtable Meetings with Property Owners: The
consultants held a series of one-on-one and roundtable meetings with
property owners located throughout the PBID.
3. Direct Mail Survey:. In the Summer of 2005, a direct mail survey was sent
to property owners within the Downtown PBID, providing additional input
into the design of the improvement and activity plan.
Top improvement priorities that emerged from the TAVA board of directors,
surveys completed by participants in one-on-one and small group meetings,
and the direct mail survey included:
. Continue cleaning and graffiti removal programs
. Expand maintenance services to include parking lots and alleys
. Intensify efforts to help businesses grow and attract new businesses,
particularly those that support the mixed-use vision of the "Third
Avenue Village".
. Support beautification efforts, including tree lighting and directional
signage
. Keep costs reasonable
4. Final Plan: The draft PBID Management District Plan and budget were
reviewed by the TAVA Board of Directors and individual property owners.
Input from these meetings led to the completion of the final plan.
6
2-15
B. PBID Boundaries
The Downtown Chula Vista PBID service area will continue to encompass
the Third Avenue commercial corridor within the following boundaries:
· E Street to the north
· Landis Avenue to the west
. Church Avenue to the east
. I Street to the south
The current PBID boundaries will be expanded to include one additional
block of F Street, south to Fourth Avenue, encompassing the City of Chula Vista
central library and police station.
Within the PBID boundary there are two different benefit zones for the
maintenance programs and activities. If was determined that he Third Avenue
corridor required more maintenance services that the rest of the properties in the
PBID. These benefit zones include:
. District-Wide Maintenance: All assessable properties within the PBID
boundary will receive the same base level of enhanced maintenance
services.
. Third Avenue Enhanced: All assessable properties with frontage along
Third Avenue between E and H Streets will receive a higher frequency of
maintenance services than other parcels within the PBID boundary.
A map illustrating the revised PBID boundaries and benefit zones is
attached.
7
2-16
C. Work Program
As determined by downtown property and business owners, the top priorities
for improvements and activities within the Downtown Chula Vista PBID include:
. Continuation of PBID Maintenance services to retain a consistent level of
cleanliness throughout downtown. In addition to sidewalk sweeping, power
washing, graffiti removal and landscape maintenance, the PBID will add
cleaning of parking lots and alleys.
. More aggressive and visible Economic Development & Marketing
initiatives to attract new businesses, consumers and visitors to downtown
properties and, consistent with the "Third Avenue Village" vision, advance
downtown's evolution as a dining and entertainment district.
The following narrative provides recommendations for the first operating
year of the PBID. Program activities may be amended in subsequent years within
the following general categories. Final programs and budgets will be subject to the
review and approval of the Third Avenue Village Association Board of Directors
which is the PBID Owner's Association.
1. Maintenance
PBID maintenance teams will continue to provide enhanced cleaning
services, including sidewalk sweeping and litter removal, power washing of
sidewalks, graffiti removal and the additional service of alley and parking lot
cleaning. The proposed service frequencies for Maintenance services for the Third
Avenue corridor versus the remainder of the district are provided below:
None
As Needed
None
None
THIRD AVENUE
SERVICE AREA
Dail
Quarterly
4 times er ear
As Needed
Dail
As Needed
ACTIVITY
Sidewalk Swee in
Power Washing
Sidewalks
Graffiti removal
Landsca e & Plantin s
Utilities & Irri ation
Alley & Parking Lot
Cleanin
DISTRICT -WIDE
SERVICE AREA
Weekl
Weekl
Weekl
For 2007, additional maintenance funds are budgeted to expand
maintenance to alleys and parking lots.
Maintenance services are budgeted for 22.8% of first year PBID
assessments.
8
2-17
2. Economic Development & Marketing
Economic development and marketing activities will expand upon the past
efforts and provide aggressive strategies to continue the improvement of the
business image of the downtown district with the goal of attracting and retaining
businesses, jobs and investment. Annual work programs and budgets will be
developed in collaboration with targeted stakeholders and approved by the PBID
Owner's Association. Programs will be selected from a variety of options that may
include the following:
Economic Development services to aide in efforts to attract new retail,
restaurants, entertainment, service and other businesses consistent with the "Third
Avenue Village" vision to downtown and elevate downtown's business profile in the
regional market. Options may include:
. Design and production of investor marketing packages to assist real estate
brokers, developers and property owners in business recruitment efforts.
. Maintenance of a district database with local market and real estate
information.
· Market research and market-based planning to identify targeted businesses
and investment strategies for downtown;
· Trouble-shooting and permitting liaison services to assist property and
business owners to invest and operate in the district.
. Enhanced research and development of the downtown website.
. Coordinate efforts with the City of ChulaVista in developing an outreach
program to property owners, real estate brokers and local/regional
businesses to develop under-utilized downtown properties.
. Business retention efforts to encourage existing businesses to grow.
Destination Marketing programs that aim to position downtown Chula Vista
as a dining, retail and entertainment destination. Marketing programs must
demonstrate collective benefits to business and property owners. Options may
include:
· Advertising, including branding, coordinated campaigns and increased
placement and frequency in mass media venues.
. Public relations efforts to promote a positive image and overall experience.
· Increased distribution and enhanced quality of publications, including the
downtown map and directory and future activity guides.
. Improved special event production and promotions.
. Design, installation and maintenance of a new downtown directional signage
system.
9
2-18
Communications services to better inform business and property owners.
. Continued publication of a downtown district newsletter.
. PBID ratepayer surveys to measure overall satisfaction with programs.
. Media relations activities to project a creative and exciting business image in
local, regional and national media.
Economic development & marketing activities are budgeted for 52.2% of
funds raised from first year PBID assessments.
3. Advocacy, Administration and Reserve
Through the Third Avenue Village Association, the PBID supports a
professional staff that delivers programs and advocates on behalf of the Downtown
district. The PBID allows Downtown property owners to project a unified voice and
elevate their influence in policies and issues that affect the central business district.
Funds are allocated to office and support services such as bookkeeping, office rent,
insurance, office equipment and professional development and training for the staff
and Third Avenue Village Association board. A 5.0% operating reserve is also
budgeted as a contingency for any payment of delinquencies andlor unforeseen
budget adjustments.
Advocacy, administration and reserve ac.tivities are budgeted for 25.0% of
funds raised from first year PBID assessments.
10
2-19
D. Plan Budgets
1. 2007 Operating Budget Summary
The total improvement and activity plan budget for 2007 is projected at
$407,925 with the following components:
Improvements & Activities Proposed %
2007 Budaet
Economic Develooment & Marketino $ 213,000 52.2
Maintenance: District-Wide $ 37,000 9.1
Maintenance: Third Ave Enhanced $ 56,000 13.7
PBID Advocacv & Administration $ 82,500 20.2
PBID Reserve $ 19,425 4.8
Total $ 407,925 100.0
2. Ten Year Operating Budget
A projected ten year operating budget for the Downtown Chula Vista PBID is
provided in the Ten Year Operating Budget and Maximum Assessment exhibit on
the following page. The projections are based upon the following assumptions:
. Total program revenue increases by 5% per year, the maximum allowed
under the proposed annual budget adjustment to keep pace with changes in
the consumer price index and other program costs. Actual budgets may not
increase 5%, as determined by the PBID Owner's Association. During the
first five years of the current PBID, actual annual increases averaged about
3%.
. Revenues for specific activities (i.e. Maintenance, Economic Development &
Marketing, Advocacy, Administration & Reserve) may be reallocated among
activities from year to year based upon district needs and budgets
developed by the PBID Owner's Association.
11
2-20
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V. ASSESSMENTS
A. Assessment Methodology
To develop the PBID assessment methodology, the consulting team
includes Kristin Lowell Inc., a certified engineer. Kristin Lowell Inc. evaluated
several methods of assessment for conveying special benefits from the type of
improvements and activities described within the Downtown Chula Vista PBID
Management District Plan. With input from the TAVA Board of Directors and
downtown property and business owners, it was determined that the existing
downtown Chula Vista PBID assessment methodology should be continued.
Additional information and justification for the proposed assessment
methods and adjustments are provided in the Engineer's Report, prepared by
Kristin Lowell Inc. and provided as an attachment to the Management Plan.
Service benefits are distributed to lot acreage and linear street frontage
through a "cost allocation" approach - the costs of specific services are allocated
to the primary assessment variables that benefit most from services.
. Lot acreage is the primary assessment variable for Economic Development
and Marketing activities since the distribution of benefits from the proposed
services is expected to be uniform throughout the district and proposed
improvements and activities are intended to enhance value throughout the
district attracting new investment and providing a clean appearance and
safer business environment.
. Lot frontage is the primary assessment variable for Maintenance activities,
since properties benefit from better maintained landscaping and sidewalks
that run along the frontage of properties. Costs of district-wide maintenance
activities are allocated to all properties within the District, while Third Avenue
enhanced maintenance costs are allocated only to properties with frontage
on Third Avenue south of E Street and north of H Street.
B. Calculation of Assessments
The preceding methodology is applied to a database that has been
constructed by Kristin Lowell Inc. and the City of Chula Vista. The process for
compiling the property database includes the following steps:
· Property data was first obtained from the County of San Diego Assessor's
Office through the City of Chula Vista.
· County assessor property data was cross-checked with reliable private
sector sources.
· An extensive site survey was undertaken to verify data on a block-by-block
basis.
13
2-22
. As an attachment to the Management District Plan, an assessment notice
will be sent to all property owners within the proposed PBID. The
assessment notice will contain lot acreage information. Property owners
may request final verification of data on or before July 1, 2006, which is one
month prior to the submission of assessment information to the County
Auditor.
A list of properties to be included in the PBID is provided within the
Appendix.
Based upon the methodology, property data and the proposed PBID budget,
approximate lot acreage and frontage assessments are calculated. Assessments
will not exceed the following amounts during the first year of the PBID:
Per sq.ft. of Lot Per foot of lot frontage
Properties Along Third Avenue,
between E and H Streets $ 0.087 $ 10.70
All Other Prooerties in the District $ 0.087 $1.84
The estimated assessment rates for 2007 reflect A 1% DECREASE from the
estimated lot square footage assessment rate and no change to the frontage rates
from 2005.
C. Assessment Adjustments
Annual Adjustment: Annual assessment rates may be adjusted for annual
changes in the San Diego Consumer Price Index (CPI) for all urban consumers
and/or other changes in programs costs, not to exceed 5%. Actual annual
adjustments may range from 0% to 5%. Assessment rates will not exceed the
levels illustrated by the Ten Year Operating Budget arid Maximum Assessment
exhibit.
Budget Process: A balanced budget approach is utilized to develop each
annual budget within the constraints of the assessment rates. Any annual budget
surplus or deficit is tracked by program. Prior year surpluses may be used as
necessary based on the allocations described in the Management District Plan.
Time and Manner for Collecting Assessments: As provided by state law,
the Downtown Chula Vista PBID assessment appears as a separate line item on
annual property tax bills prepared by the County of San Diego. Property tax bills
are distributed in the fall and payment is expected by lump sum or installment.
Existing laws for enforcement and appeal of property taxes apply to PBID
assessments.
14
2-23
Disestablishment: State law provides for the disestablishment of a PBID
pursuant to an annual review process. Each year that the PBID is in existence,
. there will be a 3D-day period during which the property owners will. have the
opportunity to request disestablishment of the District. This 3D-day period begins
each year on the anniversary day that the district was first established by City
Council.
Within that 3D-day period, if a written petition is submitted by the owners of
real property who pay more than 50 percent (50%) of the assessments levied, the
PBID may be disestablished. The City Council will hold a public hearing on
disestablishing the PBID prior to actually doing so.
Property Use Considerations: The methodology provides the following
treatments for property used exclusively for residential, non-profit and government
uses:
· FAR (Floor Area Ratio) Adjustment: Over the next several years, new
mid-rise mixed-use development is anticipated within the Downtown Chula
Vista PBID. Uses within the larger buildings will intensify the demand for
activities and improvements provided by the PBID. Building square footage
in excess of 2:1 FAR per parcel will be assessed at the same assessment
rate as lot square footage, since this building square footage will benefit from
PBID services.
. Treatment of Residential Property: All parcels with residential uses will
benefit from all PBID activities and improvements and will be subject to PBID
assessments.
. Vacant Unimproved land: For vacant unimproved land within the District,
assessments will be calculated at 50% of the assessment for improved lots.
This adjustment accounts for the lack of income production and utility
provided by vacant unimproved lots. When unimproved lots are improved
with parking and/or a structure and as evidenced by the issuance of a
building permit, then the full assessment will be placed on the improved
property as of the following tax year.
· Churches: For the purposes of the PBID, buildings with churches and
accessory properties (i.e. parking) for churches will pay only a lot frontage
assessment for Maintenance services. Economic Development and
Marketing activities will not benefit churches and these properties will not be
assessed for lot square footage.
. Assessment Policy on Non-Governmental Tax-Exempt Properties: In
addition to churches, properties that are exempt from property tax may not
receive Economic Development and Marketing activities specified in this
Management District Plan and may not be fully assessed for these services.
15
2-24
An owner of real properly located within the boundaries that meets these
criteria may reduce the amount of the lot square footage assessment to be
levied if all of the following conditions are met:
1. The properly owner is a non-profit corporation that has obtained
federal tax exemption under Internal Revenue Code section 501 c3 or
California franchise tax-exemption under the Revenue and Taxation
Code Section 23701d.
2. The class or category of real properly is eligible for exemption, in
whole or in part, from real properly laxation.
3. The properly owner makes the request in writing to the Third Avenue
Village Association prior to the submission of the PBID assessment
rolls to the County Assessor (on or before July 1 of each year).
accompanied by documentation of the tax-exempt status of the
properly owner and the class or category of real properly.
If these conditions are met, the amount of the PBID assessment to be levied
on lot square footage shall be reduced in the same proportion to the real
properly tax exemption granted to the properly by the County of San Diego.
. Government Assessments: The Downtown Chula Vista PBID
Management District Plan assumes that the City of Chula Vista, Chula Vista
Redevelopment Agency, County of San Diego, State of California and other
government entities will pay assessments for the special benefits conferred
to government properly within the boundaries of the PBID. Article XIII D of
the California Constitution was added in November of 1996 and provides for
these assessments.
. Issuance of Bonds: No bonds or other bonded debt is to be issued to
finance activities and improvements envisioned in the Management District
Plan. If the PBID Owner's Association decides to issue bonds or other
bonded debt in the future that increase,s the term and/or assessment rates
set in this Plan. revisions to the Management Plan will require new petition
and mail ballot procedures.
16
2-25
VI. GOVERNANCE
For the Downtown Chula Vista PBID, the Third Avenue Village Association
(TAVA) (formerly the Chula Vista Downtown Business Association), a California
non-profit corporation, shall continue to serve as the PBID Owner's Association.
The role of the TAVA is consistent with similar PBIDs and downtown
management organizations throughout California and the nation. TAVA will
continue to provide executive and administrative staff for the PBID. Consistent with
the Management District Plan, TAVA shall implement programs, including
coordination of sub-contracts with vendors as appropriate.
Pursuant to recent revisions in the State of California PBID legislation,
TAVA, serving as the PBID Owner's Association, is subject to disclosure and
notification guidelines set by the Ralph M. Brown Act and California Public
Records Act.
17
2-26
JOINT RESOLUTION NO. 2006-
JOINT RESOLUTION OF THE CITY COUNCIL AND THE
REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA
AUTHORIZING THE CITY MANAGERJEXECUTIVE DIRECTOR TO
SIGN THE PETITION PROPOSING THE RENEWAL AND
EXPANSION OF THE DOWNTOWN CHULA VISTA PROPERTY-
BASED BUSINESS IMPROVEMENT DISTRICT ON BEHALF OF
THE CITY AND AGENCY
WHEREAS, the Downtown Chula Vista Property-Based Business Improvement District
(PBID) was formed in 2001 to pro actively implement a number of enhancement services and
programs within the downtown core; and
WHEREAS, in order to continue operation, the PBID must be renewed by June 2006 by
a majority of returned property owner ballots via a weighted ballot process; and
WHEREAS, prior to the official balloting process for the renewal of the PBID, the DBA
is legally required to turn in a petition from property owners representing a majority of the total
assessments to be paid; and
WHEREAS, the proposed renewal and expansion would include certain City and Agency
property within the PBID boundaries; and
WHEREAS, the City of Chula Vista will commit to paying the assessment on properties
owned by both, the City of Chula Vista, and the City of Chula Vista Redevelopment Agency.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula
Vista does hereby authorize the City Manager/Executive Director to sign the petition of the
Downtown Chula Vista Property-based Business Improvement District (PBID) on behalf of the
City and Agency.
Presented by
Approved as to form by
Dana M. Smith
Assistant City Manager
H:/AttorneylFinal Resos/2006/3 7 06/Downtown CV PBID
2-27