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HomeMy WebLinkAboutSS2 - BID Update PresentationAgenda Item No. SS2 March 26, 2013 Business Improvement Districts Update Business Improvement Districts Parking and Business Improvement Area Law of 1�8� Balboa Village BID Marine Ave BID Corona del Mar BID Newport Beach Restaurant Association Business Improvement Districts Pronerty and Business Improvement District Law of 1994 Tourism BID 1989 Act BID Concerns Desire more City staff support City's policies and State law cumbersome Members are business owners with limited time Want to make quick, independent decisions City Concerns Disparate marketing efforts, redundancies Limited budgets spent duplicating efforts Overall member participation is low, a few members carry the workload Significant CMO, Finance, CAO and other staff time required The Question How do we alleviate the regulatory / City oversight burden felt by the BIDs AND alleviate the time required of City staff to effectively manage the BIDs? Proposed Solutions Outsource BID oversight / Retain a BID Manager Convert Corona del Mar and NB Restaurant Association BIDs to 1994 Act structure — Declined by both Boards Convert Balboa Village & Marine Ave. BIDS to merchant associations - Approved by both Boards FY 13 BID Budgets Assessments City BID FY 13 Budget Collected Matching Other Revenue (estimated) Funds (Estimated) FY 13 Balboa $1200 FY 12 $32200 , $17K $14K Village carryover Corona del Includes $15K FY 12 $144000 , $98K $38K Mar carryover Includes $3,600 in Marine $32,300 $16.71K $10K sponsorships, $12K Avenue FYI carryover NB $23,500 in Restaurant $206,000 $114K $38K sponsorships,$30K Association FY 12 carryover Proposal - Marine Avenue Et Balboa Village B I Ds City pays for formation of not - for - profit merchants association Enter into 5 -year agreements $40,000 each BID per year for 5 years Additional $lo,000 (year one only) for marketing if BIDS work with Newport Beach & Co. ($ goes to NB &Co.) Staff will coordinate the disestablishment of the BIDS Risks and Benefits for BIDs Risks Lose ability to assess Lose City staff, legal and bookkeeping support More oversight and administrative responsibility on the Boards Benefits Independence from City oversight No longer required to follow most of the laws and policies Proposed City funding exceeds current revenues Possible 5 -yr. Agreement Proposal - Corona del Mar Et NB Restaurant Assoc. Remain as 1989 Act BIDs City provides $40,000 /each for up to five years Additional $1o,000 (year 1 only) for marketing if BIDs work with Newport Beach & Co. ($ goes to NB & Co.) City pays to continue bookkeeping for year 1 BIDs to absorb future cost of a bookkeeper BIDs to absorb the cost of a BID "manager" Corona del Mar Et NB Restaurant Assoc. Contd. City and BIDs must agree on all consultant selections City to assign a liaison (diminished role) to work with BID manager City would consider future (after year 1) increases to contracting authority (currently $loK) City would allow consultant agreements terms up to five years, but pending the annual renewal of each BID Risks and Benefits Risks Retain City oversight (legal, policy, financial) BIDS assume more costs and responsibilities Less City administrative support Benefits Retain City oversight (legal, policy, financial) Retain ability to assess More independence & City open to lessening some restrictions in future years Possible 5 -yr. agreement Summary Balboa Village & Marine Ave. BIDs — propose converting to merchant associations NB Restaurant Assoc. and Corona del Mar BIDs desire to remain as 1989 Act BIDs, but would assume more responsibility Business Improvement Districts Update