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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: ~ 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. 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N VI UJ I- ~ VI I- Z UJ :;; VI VI UJ VI VI < :;; ::l :;; X < ::;; 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