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HomeMy WebLinkAbout20 - Corona del Mar Business Improvement DistrictE�vvo CITY OF NEWPORT BEACH Odd R m COMMUNITY AND ECONOMIC Hearing Date: August 22, 2000 DEVELOPMENT PLANNING DEPARTMENT Agenda Item No.: 20 3300 NEWPORT BOULEVARD Staff Person: Daniel R. Trimble NEWPORT BEACH, CA 92658 (949) 644 -3230 (949) 644 -3200; FAX (949) 644 -3250 REPORT TO THE MAYOR AND CITY COUNCIL PROPOSAL: Corona del Mar Business Improvement District Renewal Public Hearing and levying of Assessments for 2000 -2001 Fiscal Year SUMMARY: Conduct public hearing for renewal of the Corona del Mar Business Improvement District for the 2000 -2001 Fiscal Year and adopt Resolution of Confirmation. SUGGESTED ACTION: 1. Hold public hearing regarding the renewal of the Corona del Mar Business Improvement District; and 2. a. If protests represent less than 50 percent of the total assessment amount adopt the Resolution of Confirmation. RIO b. If protests represent 50 percent or more of the total assessment abandon the proceedings to renew the District. Background On July 22, 2000 the City Council held a public meeting, approved the Corona del Mar Business Improvement District 1999 -2000 Annual Report and adopted a Resolution of Intention to levy and collect assessments for the District for the 2000 -2001 fiscal year. Details regarding the proposed renewal of the District and annual report are provided in the attached July 25, 2000 staff report. Discussion A protest hearing must be held each year prior to 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, the City Council may renew the District. At the time this report was prepared, one letter 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. The Resolution of Intention has been published in the Daily Pilot in compliance with state law. One letter of protest was received on March 9, 2000. The businessperson felt that they did not receive the same level of benefit from the BID activities because of their location and the fact that they are not a retail use. As a result, they want to be either excluded from the assessment or be assessed a smaller amount. The BID has always maintained that their activities help to improve and reinforce the image of Corona del Mar as a desirable location and business address. So that all businesses — including retail, offices and post office box listings — with a Corona del Mar address benefit as a result of the improvements that the BID assessments are funding. Advisory Board The Corona del Mar Business Improvement District Advisory Board elections have recently been completed for the new fiscal year. The nine members of the 2000 - 2001 Advisory Board will be: John Blom, Walt Boice, Andrew Costa, Don Glasgow, Linda Leonhard, Gary Naumann, Wade Roberts, Mark Schulein and Jim Walker. The officers will be decided by the Advisory Board at the first meeting of the new fiscal year. The BID by -laws have been changed to extend the terms of the Advisory Board from one to two years. Three or four Advisory Board positions will be elected each year for staggered two -year terms. Submitted by: SHARON Z. WOOD Assistant City Manager Prepared by: DANIEL R. TRIMBLE Associate Planner With assistance from: CLINTON SCOTT PLAMER Cathimarie's Inc., BID Administration Attachments: Resolution No. 2000 - _Confirming Renewal and Levy of Assessments City Council Staff Report of July 25, 2000 Letter of Protest F: \ Users\ PLNUliared% Bl Ds\ CDM\ COUNCIL\2000Renew \CDM2000CCRPT2.doc Page 2 RESOLUTION NO. 20007 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH CONFIRMING THE LEVYING OF ASSESSMENTS FOR THE FISCAL YEAR OF SEPTEMBER 1, 2000 TO AUGUST 31, 2001 FOR THE CORONA DEL MAR BUSINESS IMPROVEMENT DISTRICT. WHEREAS, on July 25, 2000 the Corona del Mar Business Improvement District annual report was filed and approved by the City Council; and WHEREAS, on July 25, 2000 the City Council adopted and caused to be published a Resolution of Intention declaring the intention to levy assessments for the Corona del Mar Business Improvement District for the fiscal year September 1, 2000 to August 31, 2001; and WHEREAS, a public hearing regarding the renewal of the Corona del Mar Business Improvement District was held on August 22, 2000 with one written letter of protest. 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 August 22, 2000 for the Corona del Mar Business Improvement District for the fiscal year September 1, 2000 to August 31, 2001. 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 2000. MAYOR ATTEST: CITY CLERK F: \Users\PLN\S hared\B IDs \CDM\ COUNCIL \2000Renew \CDM20o0RESCONF.doc PER H. TREBLER A Professional Law Corporation 2121 East Coast Highway, Suite 280 Corona Del Mar, California .92625 (949) 640 -5969 (949) 759- 0788/Fax The Honorable John Noyes, Mayor CITY OF NEWPORT BEACH P.O. BOX 1768 Newport Beach, CA 92658 -8915 Re: Corona del Mar BID July 11, 2000 Council Meeting Deal Sir: I understand that the Corona del Mar BID is set for consideration and re- authorization by the Council on July 11, 2000. It would be appreciated if this letter could be circulated among the members of the Council prior to, and its contents be considered at, that meeting. I attended the BID meeting on March 9, 2000 and courteously was given the opportunity to discuss the following. My office is located at the letterhead address (2nd floor), just West of Avocado Avenue. - The activities of this BID are designed to benefit businesses which front the Highway and serve walk -in customers all of which are located to the East of Avocado Avenue. The commercial activity in which I am engaged, the practice of law, is substantially different from that of the merchants of CDM who benefit from the BID's activities. - The improvements instituted by the BID so far and the ones being considered for the immediate future have been sited East of the building in which my office is located. The businesses located at the Northwest corner of Avocado and Coast Highway (immediately across the highway from my office) have not been included in the BID and therefore are not responsible for the District's assessments. A precedent has been established for other BIDS (e.g. Balboa Island) to authorize multiple classes of assessments depending on (it is assumed) location and enjoyment of the BID's improvements. The Honorable John Noyes, Mayor March 9, 2000 Page 2 of 2 It is respectfully requested that the council either: — Exclude the businesses located in the office buildings to the West of Avocado Avenue from the BID, or For their occupants, establish a special class of membership from which a substantially smaller assessment would be due. Thank you. Ver y yours, T/''//IG /�� /'� r PER H. TREBLER PHT:111 cc Councilman Dennis O'Neil Don Glasgow, Chairman CDM BID City Clerk LaVonne Harkless • • Q�£WPOgT o = o C9ld FOPd�P CITY OF NEWPORT BEACH COMMUNITY AND ECONOMIC DEVELOPMENT PLANNING DEPARTMENT 3300 NEWPORT BOULEVARD NEWPORT BEACH, CA 92658 Hearing Date: Agenda Item No.: Staff Person: July 25, 2000 Daniel R. Trimble (949) 644 -3230 (949) 644 -3200; FAX (949) 644 -3250 I REPORT TO THE MAYOR AND CITY COUNCIL " o SUBJECT: Corona del Mar Business Improvement District Renewal, Annual Report for 1999 -2000 Fiscal Year, and Adoption of Resolution of Intention to Levy for 2000 -2001 Fiscal Year. SUMMARY: The Corona del Mar Business Improvement District was established September 1, 1996. This report summarizes the District's accomplishments during the 1999 -2000 fiscal year, its fourth year of operation, and the proposed activities and budget for the coming year. The Corona del Mar Business Improvement District Board of Directors, which serves as the District Advisory Board, requests City Council approval of the Annual Report and scheduling of the public hearing for August 22, 2000. SUGGETED ACTION: 2. Background Approve Corona del Mar Business Improvement District 1999 -2000 Annual Report; and Adopt the Resolution of Intention to Levy for 2000 -2001 Fiscal Year and set the public hearing for August 22, 2000. The Corona del Mar Business Improvement District is nearing the end of its fourth year of operation and requests renewal of the District for the fiscal year September 1, 2000 to August 31, 2001. The boundaries of the benefits zone remain unchanged: generally located on East Coast Highway from Hazel Drive to Avocado 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 the 1999 - 2000 fiscal year and proposed activities for the new fiscal year are provided below. Fourth Year District Accomplishments The Corona del Mar Business Improvement District has sponsored the following promotions, physical improvements, and activities during the past year: • Replacement of cracking and decomposing green asphaltic medians with bomanite paving in the western area of the BID. • Engineering to replace the painted medians with new raised bomanite medians. r • New lighting, irrigation and quarterly maintenance of decorative bedding at the Marguerite • and Coast Highway intersection. • Completed Phases 1 & 2 of the Corona del Mar Reforestation Program, including irrigating and planting 100 King Palm and Hong Kong Orchid trees. • Initiated efforts to dedicate East Coast Highway to the City of Newport Beach from CalTrans, therefore paving the way for installation of an Area Plan. • Began preparation of a Specific Area Plan (Vision 2004) to promote increased pedestrian access to the village and to increase the "quality of experience" for local residents and visitors alike. This plan will incorporate elements from the Village Deign Charette from the previous fiscal year • Steam cleaned the sidewalks in the District for the first time in 40 years. • Removed 2/3 of unlicensed newsracks in the District, reducing visual blight. • Prepared 3rd phase of reforestation plan — calling for an additional 140 trees (King Palms and Hong Kong Orchids), of which 100 are to be installed this year. • Hosted an Open House for all Corona del Mar BID members to present the Vision 2004 plans. . • Mailed quarterly newsletters from the Advisory Board to all members. • Supported the Corona del Mar Chamber of Commerce with the Annual Christmas Walk • Participated with the Corona del Mar Chamber of Commerce and the Newport Beach Conference and Visitor's Bureau to bring visitors to Corona del Mar. Fiscal Year District Revenues During the 1999 - 2000 fiscal year the district collected approximately $62,900 in member assessments with over $8,000 yet to be collected. It received $49,100 in matching funds from the City and has spent approximately $93,524 for approved activities. It is anticipated that a remaining balance of approximately $99,000 or less will be carried over into the 2000 - 2001 fiscal year. It is anticipated that this amount will be further reduced as additional promotions and landscaping projects are implemented over the next two years. Proposed Improvements, Activities and Budget The Priorities and Budget Outline for the 2000 -2001 fiscal year, including specific goals within each of the categories, has been submitted by the Corona del Mar Business Improvement District Advisory Board as part of the attached Annual Report. Page 2 The highest priorities for the upcoming fiscal year are: ® 1. Vision 2004 • Represent area business interests in governmental affairs • Develop a Specific Area Plan for the Corona del Mar Business Improvement District • Work with the City of Newport Beach in implementing the improvements called forth by the Specific Area Plan 2. Physical Improvements • Implement third phase of the reforestation program, site and plant 100 more trees along Coast Highway • Engineer and build new medians in place of painted medians • Install and maintain decorative / informative banner program • Evaluate and install when appropriate new landscaping, site furniture, trash cans, bike racks, etc. 3. Communications / Special Events • Maintain Memberships with Newport Chamber and Newport Conference & Visitors Bureau • Continue old and develop new annual special events in conjunction with the Corona del Mar ® Chamber • Quarterly newsletter • Communicate with merchants, residential associations, and other BlDs and City Council 4. Maintenance • Maintain lighting and seasonal color for Marguerite /Coast Highway intersection • Maintain backflow devices as needed for tree irrigation • Maintain sidewalks and benches as needed Assessment Collection The current and proposed benefit assessment is equal to the City's usual annual business license fee as established pursuant to Chapter 5.08 of the Municipal Code. In most cases the business license tax is comprised of $110 plus an additional amount for each employee. This rate is consistent with what has been paid since the beginning of the Corona del Mar Business Improvement District in 1996. 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 license regulations shall be assessed $250 per year. 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 Page 3 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 would be collected in one installment at the beginning of the fiscal year, and would be pro -rated for new businesses that open during the year. The advisory group of the Corona del Mar Business Improvement District does not expect to raise funds in addition to the assessments levied for the upcoming year. Matching funds have been approved by the City Council for fiscal year 2000 -2001, with the additional funds added to the amount designated for marketing activities and physical improvements. The attached Annual Report further describes the budget and activities for the upcoming year, and has been filed with the City Clerk's office as required by State law. Submitted by: SHARON Z. WOOD Assistant City Manager Attachments: 1999 -2000 Annual Report Resolution of Intention to Levy 2000 Exhibit A - Boundary Map Prepared by: DANIEL R. TREMBLE Associate Planner l� With assistance from: CL NTON SCOTT PALMER Cathimarie's Inc., BID Administration Page 4 S • L� REPORT TO THE MAYOR AND CITY COUNCIL • CORONA DEL MAR BUSINESS IMPROVEMENT DISTRICT ANNUAL REPORT FOR 1999 -2000 FISCAL YEAR Overview This is the annual report for the Corona del Mar Business Improvement District, as required by Section 36533 of the California Streets and Highways Code, for fiscal year September 1, 1999 to August 31, 2000. Boundaries The boundaries of the benefits zone remain unchanged: generally located on East Coast Highway from Hazel Drive to Avocado Avenue as set forth with greater specificity in the map attached as Exhibit A. Proposed Activities The improvements and activities to be provided for the fiscal year include: 1. Development and Implementation of a Specific Area Plan 2. Physical Improvements within Corona del Mar 3. Corona del Mar BID Member and Community Outreach 4. Maintenance of Existing Corona del Mar BID Improvements • Proposed Budget The estimated cost of providing the proposed improvements and activities in this report is approximately $140,000. The implementation of these actions is more fully described in the attached Priorities and Budget Outline for the 2000 -2001 fiscal year. Assessments Assessments shall be collected in one annual installment at the beginning of the fiscal year, and shall be pro -rated for new businesses that open during the fiscal year. The benefit assessment shall be equal to the City's usual annual business license tax as established pursuant to Chapter 5.08 of the Municipal Code. The penalty for delinquent payments will be twenty -five percent per month, providing that the penalty amount added shall in no event exceed one hundred percent of the assessment amount due. 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. 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 Account Status The District's current account balance is approximately $99,000 at the end of the first ten months . of the fiscal year. It is anticipated the balance will be approximately $107,000 or less at the fiscal year end, August 31, 2001. Matching funds, have been approved by the City Council for fiscal year 2000 -2001, will be added to the amount designated for marketing activities and physical improvements. The advisory board of the Corona del Mar Business Improvement District may raise additional funds through various events and fund - raisers in addition to the assessments levied. At this time they do not anticipate additional funds for the 2000 -2001 fiscal year budget. Prior Year Accomplishments The merchants of Corona del Mar have found their fourth year as a Business Improvement District to be very successful and have achieved several accomplishments including: • Replacement of cracking and decomposing green asphaltic medians with bomanite paving in the western area of the BID. • Engineering to replace the painted medians with new raised bomanite medians. • New lighting, irrigation and quarterly maintenance of decorative bedding at the Marguerite and Coast Highway intersection. • Completed Phases 1 & 2 of the Corona del Mar Reforestation Program, including irrigating and planting 100 King Palm and Hong Kong Orchid trees. • Initiated efforts to dedicate East Coast Highway to the City of Newport Beach from CalTrans, therefore paving the way for installation of an Area Plan. • Began preparation of a Specific Area Plan (Vision 2004) to promote increased pedestrian access to the village and to increase the "quality of experience" for local residents and visitors alike. This plan will incorporate elements from the Village Deign Charette from the previous fiscal year • Steam cleaned the sidewalks in the District for the first time in 40 years. • Removed 2/3 of unlicensed newsracks in the District, reducing visual blight. • • Prepared 3rd phase of reforestation plan — calling for an additional 140 trees (King Palms and Hong Kong Orchids), of which 100 are to be installed this year. • Hosted an Open House for all Corona del Mar BID members to present the Vision 2004 plans • Mailed quarterly newsletters from the Advisory Board to all members. • Supported the Corona del Mar Chamber of Commerce with the Annual Christmas Walk • Participated with the Corona del Mar Chamber of Commerce and the Newport Beach Conference and Visitor's Bureau to bring visitors to Corona del Mar. The merchants of Corona del Mar have worked hard to promote their village and wish to express their appreciation for the City Council's continued support of the Corona del Mar Business Improvement District, especially the $50,000 allocated in this years budget for additional trees/landscaping in Corona del Mar. 0 Page 2- (o Corona del Mar Business Improvement District Priorities and Budget Outline September 1, 2000 - August 31, 2001 Funds Available FY End 2000 Funds to be Collected September 2000 Anticipated Matching Funds from City Total Available Funds Priorities 1. Vision 2004 Percent of Budget 20% $99,000 $80,000 $49,900 $228,900 Budget Amount $45,780 Represent area business interests in governmental affairs , Develop a Specific Area Plan for the Corona del Mar Business Improvement District Work with the City of Newport Beach in implementing the improvements called forth by the Specific Area Plan 2. Physical Improvements W. $137,340 • Implement third phase of the reforestation program, site and plant 100 more trees along Coast Highway • Engineer and build new medians in place of painted medians • Install and maintain decorative /informative banner program • Evaluate and install when appropriate new landscaping, site furniture, trash cans, bike racks, etc. 3. Communications I Special Events 10% $22,890 • Maintain Memberships with Newport Chamber and Newport Conference & Visitors Bureau • Continue old and develop new annual special events in conjunction with the Corona del Mar Chamber • Quarterly newsletter • Communicate with merchants, residential associations, and other BIDs and City Council 4. Maintenance 10% $22,890 Maintain lighting and seasonal color for Marguerite /Coast Highway intersection Maintain backflow devices as needed for tree irrigation • Maintain sidewalks and benches as needed Page,' I RESOLUTION NO. 2000- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH STATING ITS INTENTION TO LEVY ASSESSMENTS FOR THE CORONA DEL MAR BUSINESS IMPROVEMENT DISCTRICT FOR THE FISCAL YEAR SEPTEMBER 1, 2000 TO AUGUST 31, 2001. WHEREAS, the Corona del Mar Business Improvement District was established in 1997 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, on September 1, 1996 the City Council approved the establishment of the Corona del Mar Business Improvement District; and WHEREAS, on July 25, 2000 the Corona del Mar Business Improvement District 1999 -2000 Annual Report was filed and approved by the City Council. NOW, THEREFORE, the City Council of the City of Newport Beach resolves as follows: Section 1: The location of the District will remain the same: generally properties along East Coast Highway from Hazel Drive to Avocado Avenue, as set forth with greater specificity in the map attached as Exhibit A and incorporated herein. Section 2: The City Council hereby declares the intention to levy assessments for the Business Improvement District for the fiscal year 2000 -2001 pursuant to the Act. 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. 0 I C. Persons operating one of the following types of businesses as an 0 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 150 percent of the annual business license tax as established pursuant to Chapter 5.08 of the Municipal Code. Section 3: The benefit assessments shall be collected by the City or an assigned contractor in one annual installment. Assessments will be levied on the date the annual District renewal becomes effective, and 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 4: The penalty for delinquent payments shall be twenty -five percent of the assessment amount per month, providing that the penalty to be added shall in no event exceed one hundred percent of the assessment amount due. Section 5: The improvements and activities to be funded by the benefit assessments shall include only the following: Physical improvements, Maintenance, Marketing and promotions, Special events, Representation of area business interests in governmental affairs, and Member business communications. Resolution No. 2000 -_ Corona del Mar Business Improvement District Paget/ BE IT FURTHER RESOLVED, that the City Council of the City of Newport Beach shall conduct a public hearing on August 22, 2000 at 7:00 p.m., or as 0 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 renewal 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 which 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 (949) 644 -3225. 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. Resolution No. 2000 -_ Corona del Mar Business Improvement District Pag 0 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 2000. MAYOR ATTEST: CITY CLERK ATTACHMENT: Exhibit A - Boundary Map 0 \ MIS_ I\SYS\Users\PLMSharedBIDs \CDM\ COUNCIL \99renew\OORenew \CDMRESOI.doc L1 Resolution No. 2000 -_ Corona del Mar Business Improvement District / A 1 Pag:. V