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HomeMy WebLinkAbout22 - Marine Avenue Business Improvement DistrictREPORT TO THE MAYOR AND CITY COUNCIL 11, 22 George A. Berger, AICP (949) 644 -3207 SUBJECT: Marine Avenue Business Improvement District Annual Renewal Public Hearing and levying of Assessments for 2002 Fiscal Year. SUMMARY: Conduct public hearing for renewal of the Marine Avenue Business Improvement District for the 2002 Fiscal Year and adopt Resolution of Confirmation. ACTION: 1. Hold public hearing regarding the renewal of the Marine Avenue Business Improvement District; and a. If protests represent less than 50 percent of the total assessment amount, adopt the Resolution of Confirmation to renew the BID for the 2002 Fiscal Year. •; b. If protests represent 50 percent or more of the total assessment, abandon the proceedings to renew the BID. Background On November 13, 2001, the City Council held a public meeting, approved the Marine Avenue Business Improvement District 2001 Annual Report and adopted a Resolution of Intention to levy and collect assessments for the BID for the 2002 fiscal year. Details regarding the proposed renewal of the District and annual repost are provided in the attached November 13, 2001 City Council staff report. Discussion A protest hearing must be held each year prior to the renewal of a Business Improvement District. If protests are received from business owners representing 50 percent or more of the total assessment amount, the proceedings to renew the District must be discontinued for at least one year. If protests represent less than 50 percent of the total assessment amount, the City Council may renew the District. CITY OF NEWPORT BEACH Hearing Date: a¢wPOq, 04 °� COMMUNITY AND ECONOMIC Agenda Item No.: U _ DEVELOPMENT �LICA0.N,' PLANNING DEPARTMENT Staff Person: 3300 NEWPORT BOULEVARD NEWPORT BEACH, CA 92658 (949) 644 -3200; FAX (949) 644 -3229 REPORT TO THE MAYOR AND CITY COUNCIL 11, 22 George A. Berger, AICP (949) 644 -3207 SUBJECT: Marine Avenue Business Improvement District Annual Renewal Public Hearing and levying of Assessments for 2002 Fiscal Year. SUMMARY: Conduct public hearing for renewal of the Marine Avenue Business Improvement District for the 2002 Fiscal Year and adopt Resolution of Confirmation. ACTION: 1. Hold public hearing regarding the renewal of the Marine Avenue Business Improvement District; and a. If protests represent less than 50 percent of the total assessment amount, adopt the Resolution of Confirmation to renew the BID for the 2002 Fiscal Year. •; b. If protests represent 50 percent or more of the total assessment, abandon the proceedings to renew the BID. Background On November 13, 2001, the City Council held a public meeting, approved the Marine Avenue Business Improvement District 2001 Annual Report and adopted a Resolution of Intention to levy and collect assessments for the BID for the 2002 fiscal year. Details regarding the proposed renewal of the District and annual repost are provided in the attached November 13, 2001 City Council staff report. Discussion A protest hearing must be held each year prior to the renewal of a Business Improvement District. If protests are received from business owners representing 50 percent or more of the total assessment amount, the proceedings to renew the District must be discontinued for at least one year. If protests represent less than 50 percent of the total assessment amount, the City Council may renew the District. At the time this report was prepared, no letters of opposition to the District had been received. Staff will provide an oral update on any subsequent correspondence and a tabulation of protests, if necessary, at the City Council meeting. Public notice of the protest hearing and a Resolution of Intention for the renewal of the Marine Avenue Business Improvement District has been published in the Daily Pilot in compliance with state law. The Marine Avenue Business Improvement District appreciates the City Council's continued support. Submitted by: Prepared by: SHARON Z. WOOD GEORGE A. BERGER, AICP Assistant City Manager Senior Planner With assistance from: CLINTON SCOTT PALMER Cathimarie's Inc., BID Administration Attachments: ResolutionNo. 2001 - Confirming Renewal and Levy of Assessments City Council Staff Report of November 13, 2001 2 RESOLUTION NO. 2001- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH CONFIRMING THE LEVYING OF ASSESSMENTS FOR THE FISCAL YEAR OF JANUARY 1, 2002 TO DECEMBER 31, 2002 FOR THE MARINE AVENUE BUSINESS IMPROVEMENT DISTRICT. WHEREAS, the Advisory Board has prepared an Annual Report for the 2001 fiscal year which is on file in the office of the City Clerk; and WHEREAS, on November 13, 2001 the City Council adopted and published a Resolution of Intention declaring the intention to levy assessments for the Marine Avenue Business Improvement District for the fiscal year January 1, 2002 to December 31, 2002; and WHEREAS, a public hearing regarding the renewal of the Marine Avenue Business Improvement District was held on December 11, 2001 without a protest of majority. NOW, THEREFORE, the City Council of the City of Newport Beach hereby confirms the levy of assessments as described in the Resolution of Intention dated November 13, 2001 for the Marine Avenue Business Improvement District for the fiscal year January 1, 2002 to December 31, 2002. This resolution shall take effect immediately upon adoption. Passed and adopted by the City Council of the City of Newport Beach at a regular meeting held on the day of 2001. MAYOR WomgVI CITY CLERK Resolution No. 2001 - Corona del Mar Business Improvement District 2 �E.vcogr CITY OF NEWPORT BEACH Hearing Date: November 13, 2000 a` COMMUNITY AND ECONOMIC Agenda Item No.: 5 ); DEVELOPMENT ^^ PLANNING DEPARTMENT Staff Person: George A. Berger, AICP 3300 NEWPORT BOULEVARD (949) 644 -3207 NEWPORT BEACH, CA 92658 (949) 644 -3200; FAX (949) 644.3229 REPORT TO THE MAYOR AND CITY COUNCIL a-a- SUBJECT: Marine Avenue Business Improvement District Renewal, Annual Report for 2001 Fiscal Year, and Adoption of Resolution of Intention to Levy for 2002 Fiscal Year. SUMMARY; The Marine Avenue Business Improvement District was established January 1, 1996. This report summarizes the District's accomplishments during 2001, its sixth year of operation, and the proposed activities and budget for the 2002 fiscal year. The Marine Avenue Business Improvement District .Board of Directors, which serves as the District Advisory Board, requests City Council approval of the 2001 Annual Report and scheduling of the public hearing for December 11, 2001. ACTION: 1. Approve Marine Avenue Business Improvement District 2001 Annual Report; and 2. Adopt the Resolution of Intention to Levy for 2002 Fiscal Year and set the public hearing for December 11, 2001. Overview The Marine Avenue Business Improvement District is nearing the end of its sixth year of operation and requests renewal of the District for the fiscal year January 1 to December 31, 2002. The District includes the 200 and 300 blocks of Marine Avenue as set forth with greater specificity in the map attached as Exhibit A. State law requires that an annual report be prepared and a public hearing be held each year prior to renewal of the District. A summary of accomplishments during 2001 and proposed activities for 2002 are provided below. The District's 2002 activities are proposed to remain the same as in 2001. Sixth Year District Accomplishments The Marine Avenue Business Improvement District sponsored the following promotions and activities during the past year: Reprinting of a full color Balboa Island brochure with distribution to hotels and visitor racks throughout Orange County. The merchants have found this to be a very effective tool in bringing shoppers to Balboa Island. 2. Participation in the Newport Beach Conference and Visitors Bureau. 3. Christmas decorations and lighting to enhance holiday shopping along Marine Avenue. 4. Participation with the Anaheim/Orange County Visitors and Conference Bureau to more widely encourage countywide tourists to visit Balboa Island. 5. Ongoing steam cleaning of sidewalks within the District. Fiscal Year District Revenues During 2001 the district collected approximately $13,200 and received $9,731 in matching funds from the City. The BID has spent approximately $18,100 for approved activities, and anticipates a remaining balance of approximately $1,000 will be carried over into the 2002 fiscal year budget. Proposed Activities and Budget The BID Advisory Board has submitted the Priorities and Budget Outline for the 2002 Fiscal Year — including specific goals within each of the categories —as part of the Annual Report (see attached Exhibit B). Activities proposed for 2002 include marketing, advertising, public relations, and public improvements and maintenance benefiting Balboa Island businesses. The estimated budget for these activities is approximately $23,500. Assessment Collection The current and proposed benefit assessment is equal to 100% of the City's ,usual annual business license fee, or $25 if a•second floor business, as established pursuant to Chapter 5.08 of the Municipal Code. In most cases the business license fee is comprised of $120 plus an additional amount for each employee. Banks and financial institutions exempt from City business license regulations shall be assessed $500 per year. Insurance agencies that are exempt from City license regulations shall be assessed $250 per year. Individuals with more than one business entity within the assessment boundaries shall be required to pay the District assessment for the business with the higher assessment. Persons operating one of the following businesses as an independent contractor in an establishment owned by another person shall be exempt from this assessment: 1. Hair stylists 2. Nail technicians 3. Real estate agents A The penalty for delinquent payments will be twenty -five percent per month, provided that the penalty amount added shall in no event exceed one hundred percent of the assessment amount due. Assessments will be collected in one installment at the beginning of the fiscal year, and will be pro- rated for new businesses that open during the year. The Marine Avenue Business Improvement District appreciates the City Council's continued support. Submitted by: SHARONZ.WOOD Assistant City Manager Prepared by: GEORGE A. BERGER, AICP Senior Planner Ao Wi assistance from: CLINTON SCOTT PALMER Cathimarie's Inc., BID Administration Attachments: Exhibit — BID Boundary Map Exhibit B-2001 Annual Report and 2002 Priorities & Budget Outline Exhibit C — Resolutionof Intentionto Levy 2001 -_ 3 N Irm-MMUM M-� ImIlm iffmMull limim lui1 l 1 1 m uiiiu I Y, z 0 Ir U- EXHIBIT A 0 co w D z w w Z I LL 0 C) Lo W --- IIM ---- Y, z 0 Ir U- EXHIBIT A 0 co w D z w w Z I LL 0 C) Lo W EXHIBIT B MARINE AVENUE BUSINESS IMPROVEMENT DISTRICT 2001 ANNUAL REPORT This is the annual report for the sixth year of the Marine Avenue Business Improvement District, as required by Section 36533 of the California Streets and Highways Code. This report covers the District's accomplishments for the previous fiscal year (January 1, 2001 to December 31, 2001) and the proposed activities and budget for Fiscal Year 2002. The boundaries of the benefit zone will remain the same as 2001 as set forth with greater specificity in the map attached as Exhibit A. The improvements and activities to be provided for the coming fiscal year include: 1. Marketing, advertising and public relations. 2. Brochure development and distribution. 3. Promotion of public events that are to take place on or in any public places in area. 4. Decoration of any public place in the area. 5. Public area improvements and maintenance activities. 6. The general promotion of retail trade activities. The estimated cost of providing the proposed improvements and the activities described in this report are approximately $23,500. The implementation of these actions is more fully described in the attached Priorities and Budget Outline. Benefit assessments will be collected in one annual installment, and shall be equal to one hundred percent (100 %) of the City's annual business license fee as established pursuant to Chapter 5.08 of the Municipal Code if the business is located in a downstairs space; if upstairs, a flat $25.00 will be assessed. The penalty for delinquent payments shall be equal to that established for delinquent business license fees pursuant to Chapter 5.08, providing that the penalty amount added shall in no event exceed one hundred percent of the assessment amount due. Individuals with more than one business entity within the assessment boundaries shall only be required to pay the District assessment for the largest b business, shall be exempt from assessments on additional businesses within the District, and shall continue to pay required business license fees in accordance with Chapter 5.08 of the Municipal Code. Banks and financial institutions that are exempt from City business license regulations shall be assessed $500 per year. Insurance agencies that are exempt from City business license regulations shall be assessed $250 per year. Assessments shall be collected at the beginning of the fiscal year, and shall be pro -rated for new businesses that open during the fiscal year. The amount of surplus carried over from the 2001 fiscal year is approximately $2,100 at the end of the first ten months of the fiscal year. It is anticipated the balance will be approximately $1,000 at the fiscal year end, December 31, 2001. The advisory group of the Marine Avenue Business Improvement District may raise additional funds through various events and fundraisers in addition to the assessments levied. At this time they do not anticipate additional funds for the 2001 budget. Among the Marine Avenue Business Improvement District accomplishments during 2001 were /are the following: I. The reprinting of a full color Balboa Island brochure with distribution to hotels and visitor racks throughout Orange County. The merchants have found this to be a very effective tool in bringing visitors to Balboa Island; { 2. Christmas decorations and lighting to enhance holiday shopping along Marine Avenue; 3. Participation with the Anaheim/Orange County Visitors and Conference Bureau to more widely encourage county -wide tourists to visit Balboa Island; 4. Participation with the Newport Beach Conference and Visitors Bureau; 5. Ongoing cleaning of the sidewalks in the subject area. The merchants of Marine Avenue appreciate the efforts of the City Council and your continued support of Balboa Island. T Marine Avenue Business Improvement District Priorities and Budget Outline January 1, 2002 - December 31, 2002 Funds Available FY 2001 End $ 1,000 Funds to be Collected January 2001 $ 13,000 Anticipated Matching Funds from City $ 9,500 Total Available Funds $ 23,500 Priorities Percent of Budget Amount 1. Sidewalk Cleaning 49% $11,500 2. Marketing 43% $10,200 • Reprint Balboa Island Brochure • Distribute to local Hotels and Visitor Information Racks 3. Memberships 5% $ 1;200 • Newport Beach Visitor and Convention Bureau • Anaheim Convention and Visitor's Bureau 5. Administration 3% $ 600 • Meeting Announcements • Minutes, Agendas and Mailings to Members I EXHIBIT C RESOLUTION NO. 01- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH DECLARING ITS INTENTION TO RENEW THE MARINE AVENUE BUSINESS IMPROVEMENT DISTRICT FOR THE FISCAL YEAR OF JANUARY 1, 2002 TO DECEMBER 31, 2002, AND FIX THE TIME AND PLACE OF A PUBLIC HEARING. WHEREAS, the Marine Avenue Business Improvement District was established in 1996 pursuant to the Parking and Business Improvement Area Law of 1989, California Streets and Highways Code, Section 36500 et seq., (hereinafter the "Act "), which requires an annual report to be filed and approved by the City Council for each fiscal year; and ' WHEREAS, the Advisory Board has prepared an Annual Report for Fiscal and Calendar Year 2001 which is on file in the Office of the City Clerk; and WHEREAS, the Act requires the City Council to declare its intention to levy and collect assessments within the Business Improvement District for the next fiscal year; NOW, THEREFORE, the City Council of the City of Newport Beach resolves as follows: Section 1: The Annual Report of Fiscal Year 2001 BID activities filed by the Advisory Board is hereby approved. The Annual Report contains a description of improvements and activities to be provided for 2002, the area boundaries, and the annual assessment within the District. Section 2: The City Council hereby declares its intention to renew the Business Improvement District for the fiscal year January 1, 2002 to December 31, 2002 pursuant to the Act. Resolution No. 01- Marine Avenue Business Improvement District Section 3: The location of the District will remain the same: generally the 200 and 300 blocks of Marine Avenue as set forth with greater specificity in the map attached as Exhibit A and incorporated herein. Section 4: The City Council hereby declares its intention to levy and impose and order the collection of a benefit assessment upon persons conducting business in the District. Such benefit assessment shall be as follows: A. Banks and financial institutions that are exempt from City business license regulations shall be assessed $500 per year. B. Insurance agencies that are exempt from City business license regulations shall be assessed $250 per year. C. Persons operating one of the following types of businesses as an independent contractor in an establishment owned by another person shall be exempt from this assessment: 1. Hair stylists 2. Nail technicians 3. Real estate agents D. The assessment for all other businesses within the District shall be 100 percent (100 %) of the annual business license fee as established pursuant to Chapter 5.08 of the Municipal Code of the City of Newport Beach, California. Section 5: The benefit assessments shall be collected by the City in one annual installment, with collections for new businesses in the District on the day of the issuance of a business license by the City. The assessment for new businesses shall be pro -rated according to the number of full months remaining in the District's fiscal year. Section 6: The penalty for delinquent payments shall be twenty five percent per month, providing that the penalty to be added shall in no event exceed one hundred percent of the assessment amount due. Section 7. An owner of more than one business within the District shall only be required to pay the assessment for the largest business, and shall be exempt from assessments on additional businesses within the District. Resolution No. 01 -_ Marine Avenue Business Improvement District Section 8: The improvements and activities to be funded by the benefit assessments shall include only the following: 1. Marketing, advertising and public relations; 2. Brochure development and distribution; 3. Promotion of public events that are to take place on or in any public places in the subject area; 4. Decoration of any public place in the subject area; 5. Public area improvements and maintenance activities. 6. The general promotion of retail trade activities. BE IT FURTHER RESOLVED, that the City Council of the City of Newport Beach shall conduct a public hearing on December 11, 2001 at 7:00 p.m., or as soon thereafter as this matter may be heard, in the Council Chambers located at 3300 Newport Boulevard, Newport Beach, California at which time the Council will hear all interested persons for or against the establishment of the District, the extent of the District and the specific types of improvements or activities to be funded by the benefit assessment. Protests may be made orally or in writing, but if written, shall be filed with the City Clerk at or before the time fixed for the Hearing and contain sufficient documentation to verify business ownership and validate the particular protest. If written protests are received by the owners of businesses within the District that pay fifty percent or more of the total assessments to be levied, no further proceedings to renew the District shall be taken for a period of one year from the date of the finding of a majority protest by the City Council. If the majority protest is only against the furnishing of a specific type or types of improvements or activity within the District, those types of improvements or activities shall be eliminated. Further information regarding the proposed Business Improvement District renewal may be obtained at the Newport Beach City Hall, 3300 Newport Boulevard, Newport Beach, California, 92658. Telephone (714) 644 -3225. Resolution No. 01- Marine Avenue Business Improvement District I The City Clerk shall cause this resolution of intention to be published once in a newspaper of general circulation in the City at least seven days before the public hearing. This resolution shall take effect immediately upon adoption. Passed and adopted by the City Council of the City of Newport Beach at a regular meeting and thereon held on the day of 2001. MAYOR ATTEST: CITY CLERK ATTACHMENT: Exhibit A - Boundary Map Resolution No. 01 -_ Marine Avenue Business Improvement District