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Home My WebLink About2009/02/17 Item 2 r::Jl\\O't\ ~\)~ ORDINANCE OF THE CITY OF C~~STA ADDING CHAPTER 5.05 TO THE CfIl:.DA)~fA MUNICIPAL CODE, ESTABLISHING THE CHUL}Q'V?fST A AUTO PARK. BUSINESS IMPROVEMENT DISTRICT PURSUA..NT TO THE PARKING AND BUSINESS IMPROVEMENT AREA LAW OF 1989 AND LEVYING AN ASSESSMENT AND CHARGE THEREIN FOR UPGRADING AND PROMOTING THE AREA ORDINANCE NO. WHEREAS, under and pursuant to the provisions of the Parking and Business Improvement Area Law of 1989, codified as California Streets and Highways Code Section 36500, et seq. (the "Law"), this Council on January 20, 2009, adopted Resolution No. 2009-010, declaring an intention to form a parking and business improvement area to be known as the "Chula Vista Auto Park Business Improvement District," providing for the levy of an assessment and charge to be imposed herein, fixing the time and place for hearing and g!v~g'ri6tice thereof; and WHEREAS, Resolution No. 2009-010 was duly published, and copies thereof were mailed to each business owner in the area, as provided by the Law; and WHEREAS, after a preliminary review for compliance with the California Environmental Quality Act (CEQA) staff previously determined that the activity is not a "Project" as defined under Section 15378 of the State CEQA Guidelines because the action only involves fiscal issues which do not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment; therefore, pursuant to Section 15060( c)(3) of the State CEQA Guidelines the activity is not subject to CEQA; and WHEREAS, as specified in Resolution No. 2009-010, on February 10, 2009 a hearing concerning the formation of the area was held before this Council in the Council Chambers at the City ofChula Vista City Hall, 276 Fourth Avenue, Chula Vista, California, 91910; and WHEREAS, at the hearing, all protests, both 'Written and oral, made or filed, were considered and duly overruled and denied and this Council determined that there was no majority protest within the meaning of Section 36525 of the Law. NOW, THEREFORE BE IT ORDAINED, by the City Council of the City ofChula Vista, as follows: Section 1. That the City Council hereby adds Chapter 5.05 to the Chula Vista Municipal Code to read as follows: C:\Documc:nu and Scttings\shereek\Local Senings\Temporaty Internet Files\0LK3\#7_BIDOrd.Z 10 09-FINAL (clean cc)_OZ. 1 0-09 wtih cc rev.doc 2-1 Ordinance No. Page 2 , '\"'~ 1',~,1 ::;'J~' "" . . ie' . CHAPTER 5.05 .:/.. . .~ ~ CHULA VISTA AUTO. PARK BUSINESS IMPROVEMENT DISTRICT ~. .. - , Sections: 5.05.010 5.05.020 5.05.030 . 5.05.040 5.05.050 5.05.060 5.05.070 5.05.080 5.05.090 5.05.1 00 ' 5.05.110 5.05.120 5.05.010 - Title. -"I r'o, ..... ", .. ").:, Title Chu1a Vista Auto Park Business Improvement District Location Purpose Services and Programs Assessment Calculation Summary of Assessments Eligible Businesses Findings Future Amendments Annual Review Advisory Board Effective'Date Pursuant to California Streets and Highways Code Section 36500, et seq. (the "Law"), a parking and business improvement area is hereby established, to be known as the "Chula Vista Auto Park Business Improvement District," herein called "District." 5.05.020 - Chula Vista Auto Park Business Improvement District Location. The area to be included in the District includes the Chula Vista Auto Park business community area, generally described as the commercial properties along Main Street! Auto Park Drive betWeen Interstate 805 and Nirvana Avenue, within the following address ranges: Auto Park DrivelMain Street Auto Park Place Brandywine Avenue Main Court . 505 - 4555 1860 - 1890 1669 - 1690 1810 - 1820 A map depicting the District is attached and incorporated into Ordinance No. 2009- as "Exhibit A." 5.05.030 - Purpose. The purpose of forming the District as a parking and business improvement area under the Business and Improvement Area Law is to provide revenue to defray the costs of services and programs which will benefit busmesses in the area. C:\Documents and Settings\shereek\Loca.I Scttings\Temporary Internet Ftlcs\OLKJ\#7_BIDOrd_2 10 09.FINAL (clean ccL02.10-09 wtih cc rev.doc 2-2 Ordinance No. Page 3 5.05.040 - Services and Programs. The improvements and activities to be provided in the District will be funded by the levy of assessments. The revenue generated by the assessments to be levied may be utilized for some or all of the following services and programs: A. The construction and maintenance of the new vehicle dealers freeway sign will be included as a service or program funded by the proposed BID. The BID new vehicle dealers within the BID will participate in the design, operations and maintenance of the new freeway sign; B. Pay for marketing and advertising to promote the area as a destinat~n point; C. Banner program for area to promote the District; D. Organizational operations and staff; and E. Day-to-day administration of and staff for the District 5.05.050 - Assessment Calculation. All businesses operating in the above-described area will be assessed a share of the costs of the aforementioned services and programs as determined by the following formula: A. Base amount: In the fIrst six months of adoption of the ordinance, there will be a mandatory minimum payment from each affected transportation dealer in the amount of $3,000 per month per business. Car dealers/owners with separate brands pay on the basis of each business license taken out by City for fIrst six months of assessment district. . B. After six months of adoption of the district, the three-tiered system with minimums and maximums is applied. C. Tiered system is based upon the fact that all dealers, regardless of type and style of vehicle, pay a base assessment of $3,000 per month; 1. Any sales above $ 24,000,001 in annualized sales, after the fIrst six months of the district, will pay at a rate of .0015% of the average quarterly sales. ($ 24 million in sales per year times .0015 = $36,000 per year). 2. Maximum amount: The maximum amount any dealer can pay is $6,000 per month- therefore annualized sales above $48,000,001 per year are capped at $6,000 per month. C:\Documenu a:nd Scttingsl.shereek\Local Scttings\Te:mporary Internet Files\OlKJ\#7 _BIDOrd-2 10 09-FINAL (clean cc)_02-10-09 wtih cc rev. doc 2-3 Ordinance No. Page 4 5.05.060 - Summary of Assessments. The assessments to be imposed for those District businesses are as follows: Sample Assessment Methodology Based Upon Existing Six Transportation Dealers - March 2008 Annual Taxable Sales (1%) Factor Annual Assessment Monthly Charge per dealer (Divided by 12) $ 10,000,000 .0015 $ 36,000.00 $ 3,000.00 Minimum $ 20,000,000 .0015 $ 36,000.00 $ 3,000.00 Minimum $ 24,000,000 .0015 $ 36,000.00 $ 3,000.00 Minimum $ 30,000,000 .0015 $ 45,000.00 $3,750.00 $ 35,000,000 .0015 $ 52,500.00 $ 4,375.00 $ 40,000,000 .0015 $ 60,000.00 $ 5,000.00 $ 45,000,000 .0015 $ 67,500.00 $ 5,625.00 $ 48,000,000 .0015 $ 72,000.00 $ 6,000.00 $ 52,000,000 .0015 $ 72,000.00 $ 6,000.00 $ 60,000,000 .0015 $ 72,000.00 $ 6,000.00 The above-described assessment is an annual charge and shall be levied, collected and enforced in the same manner, at the same time, and with the same penalties and interest as in the case of the business license. For those businesses taxed for other than an annual tax period, the City shall determine the assessment to be levied upon issuance of the City business tax certificate. The total assessment collected from any business under the provisions of the ordinance shall not exceed $6,000.00 per month. 5.05.070 - Eligible Businesses. The following businesses, as identified by the North American Industrial Codes (N.A.I.e.), shall be subject to the Chula Vista Auto Park Business Improvement District Those NAIC Code numbers will include: Primary Type of business NAlC Code - 2007 New Car Dealers 441110 Used Car Dealers 441120 New Recreational Vehicle 441210 Dealers All other New Motor Vehicle 441229 dealers C\Dacuments and Settings\shereek\Lacal Settings\Temporary Internet Files\0LK3\#7 _BIDOrd-2 10 09-FINAL (clean cc)_02-1~9 wtih cc rev.doc 2-4 Ordinance No. Page 5 Each new transportation sales business license holder, as defined by the NArC code numbers in this section, within the confines of one common lot is considered one separate entity for assessment pUrposes, including those situations when a single person or corporation owns multiple new vehicle dealerships. For example, if one entity has two or more dealerships on site and has a separate business license for each dealership that entity would be assessed on each business license issued. If, on the other hand, an entity has multiple dealerships onsite and only has one business license for all of the dealerships, then that entity would be assessed on only one business license. 5.05.080 - Findings. That the Council hereby fmds and determines that the public convenience and necessity require the establishment of the District and that all of the businesses lying within the area will be benefited by the improvements and activities funded by the assessments proposed to be levied. 5.05.090 - Future Amendments. That all of the businesses in the area established by this ordinance shall be subject t6 any amendments to the provisions of the Parking and Business Improvement Area Law of 1989, codified as California Streets and Highways Code Section 36500, et seq. 5.05.100 - Annual Review. All of the assessments imposed pursuant to this ordinance shall be reviewed by the City Council annually. 5.05.110 - Advisory Board. Principle office holders of the following representative businesses shall make up the District Advisory Board pursuant to California Streets and Highways Code Section 36530 BUSINESS Fuller Ford Fuller Honda McCune Chrysler, Jeep, Dodge People's Chevrolet Chula Vista Toyota 5.05.120 - Effective Date. This ordinance shall take effect and be in force on March 20, 2009, and no business license for commercial activities inconsistent with the provisions of this ordinance shall be issued unless application therefore was made prior to the date of adoption of this ordinance. C:\Documents and Senings\shereek\Loca1 Setrings\Tcmporary Internet Filcs\OLKJ\#7 _BIDOrd-2 to 09-FINAL (clean ccL02.11J..09 wtih c:<: l'l:'V.doc 2-5 Ordinance No. Page 6 Section 2. This ordinance will take effect and be in force thirty days after [mal passage. Presented by Approved as to form by James D. Sandoval City Manager Bart C. Miesfeld City Attorney C:\Documents and Sening.s\shereek\J...ocal Settings\Temporary Internet Files\0LK3\#7_BIDOrd-2 10 09-FINAL (clean ccL02-10-09 wtih cc rev. doc 2-6