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HomeMy WebLinkAbout03 - Balboa Village Business Improvement District,af�'P�Rr CM OF NEWPORT BEACH Hearing Date: March 13, 2002 COMMUNITY AND ECONOMIC DEVELOPMENT Agenda Item No.: 3 o = PLANNING DEPARTMENT Staff Person: Daniel R. Trimble _ 3300 NEWPORT BOULEVARD (949) 644 -3230 NEWPORT BEACH, CA 92658 (714) 644 -3200; FAX (714) 644 -3229 REPORT TO THE MAYOR AND CITY COUNCIL PROPOSAL: Balboa Village Business Improvement District, Annual Report for 2001- 2002 Fiscal Year, District Renewal, and Adoption of Resolution of Intention to Levy for 2002 -2003 Fiscal Year. SUMMARY: The Balboa Village Business Improvement District was established April 1, 1995. This report summarizes the District's accomplishments during the 2001 - 2002 fiscal year, its seventh year of operation, and the proposed activities and budget for the coming year. The Balboa Village 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 March 26, 2002. CED ACTION: Approve the Balboa Village Business Improvement District 2001 -2002 Annual Report; and 2. Adopt Resolution of Intention to Levy and set public hearing for March 26, 2002. Background The Balboa Village Business Improvement District is nearing the end of its seventh year of operation and requests renewal of the District for the fiscal year April 1, 2002 to March 31, 2003. The boundaries of the benefits zone remain unchanged: generally located on the Balboa Peninsula between A Street and Coronado Street, 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 2001 - 2002 fiscal year and proposed activities for the new fiscal year are provided below. Sixth Year District Accomplishments The Balboa Village Business Improvement District has sponsored the following promotions and activities during the past year: • Planning and putting on the PT Cruiser Show, a two -day event with four bands, street entertainers, and a car show featuring over 150 PT Cruiser cars, as well as Dodge Vipers and Prowlers. The event was attended by several thousand people and promoted the BID area to residents and locals. Residents, BID merchants, attendees, and city staff generally agreed it to be one of the most successful programs staged in the BID area; so successful, in fact, that it will serve as a blueprint for future events of the same kind to be self - funding; • Professionally landscaping the planters at the intersection of Main and Balboa; • Providing seasonal decorations and lighting to promote business during the holiday season; • Printing and distributing two posters to explain and illustrate the redevelopment of Balboa Village; • Placing advertisements for boat parade viewing and whale watching activities in the local media; • Producing monthly newsletters from the Board of Directors to all members; • Maintaining membership with the Newport Harbor Chamber of Commerce and the Newport Beach Conference and Visitors Bureau, and participating in a cooperative advertising program with the Bureau; • Instituting a "Paint the Town" program where children from Newport Elementary School painted merchant windows for the Holiday Season; • Paid for insurance coverage for the association as well as preparation of the federal tax return; • Participating in phasing and construction of the Balboa Village Revitalization Project. Fiscal Year District Revenues During the 2001 -2002 fiscal year the district collected approximately $14,600 in assessments from members. Its account balance at the beginning of the year was $21,500. It received $10,633 in matching funds from the City and received $5,000 in additional revenues from the PT Cruiser Show for available operating revenue of $51,500. The BID has spent approximately $48,900 for approved activities. It is anticipated that a remaining balance of approximately $2,600 or less will be carried over into the 2002 - 2003 fiscal year. R1 Proposed Improvements, Activities and Budget The Balboa Village Business Improvement District Advisory Board has submitted the Priorities and Budget Outline for the 2002 -2003 fiscal year, including specific goals within each of the categories. The highest priorities for the upcoming fiscal year are: 1. Marketing and Advertising 81 % *Develop a Village Brochure and Merchant Directory *Distribute the brochure to area hotels and concierges *Reprint the Revitalization Poster *Use the Website to increase visibility and communication *Implement a public Relations Program * Maintain Memberships with Newport Chamber and Newport Conference & Visitors Bureau * Print advertising (newspapers, magazines, co -op pieces, etc.) *Direct mail pieces to local residents 2. Physical Improvements 9% * Continue decorative sidewalk / potted plant program 3. Outreach Program 2% * Monthly newsletter * Communicate with merchants, residential associations, and other BIDs and City Council 4. Administration 8% * Association Insurance * Accounting (tax returns) 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 $120 plus an additional amount for each employee. This rate is consistent with what has been paid since the beginning of the Balboa Village Business Improvement District in 1995; although the cost of living adjustment have increased the basic business license amount since 1995. 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 9 shall be exempt from this assessment: 1. Hair stylists 2. Nail technicians 3. Real estate agents 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 Balboa Village Business Improvement District expects to raise funds in addition to the assessments levied for the upcoming year. Matching funds are anticipated to be approved by the City Council for fiscal year 2002 -2003, 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.LWOOD Assistant City Manager r? OT Prepared by: DANIEL R. TRIMBLE Associate Planner Attachments: Exhibit A (Boundary Map) Resolution of Intention 02- Annual Report and Budget by BID Advisory Board 4 Balboa Village Business Improvement District 22/� ♦\� y. A UeC /C � Cy � r Pacific Ocean Newport Bay �A (6js S C q C Sk /NG \c av Balboa Pier , /Q cy ♦ ♦ y "us 4/C ♦ \, �Cti N 0 100 200 300 Feet Balboa Business Improvement w E 4 / % District Boundary S Exhibit A r' RESOLUTION NO. 2002- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH STATING ITS INTENTION TO LEVY ASSESSMENTS FOR THE BALBOA VILLAGE BUSINESS IMPROVEMENT DISTRICT FOR THE FISCAL YEAR OF APRIL 1, 2002 TO MARCH 31, 2003. WHEREAS, the Balboa Village Business Improvement District was established in 1995 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 the 2001 -2002 fiscal year which is on file in the Office of the City Clerk; and WHEREAS, on March 12, 2002 the Balboa Village Business Improvement District 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 City Council hereby approves the Annual Report of the Balboa Village Business Improvement District for the 2002 -2003 fiscal year pursuant to the Act. Section 2: The City Council hereby declares the intention to levy assessments for the Business Improvement District for the fiscal year April 1, 2002 to March 31, 2003 pursuant to the Act. Such benefit assessment shall be as follows: Resolution No. 02- Balboa Village Business Improvement District A 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 of the annual business license tax as established pursuant to Chapter 5.08 of the Municipal Code. Section 3: 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 4: 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 5: The improvements and activities to be funded by the benefit assessments shall include only the following: 1. Marketing and advertising 2. Physical improvements 3. Communications and Outreach Program 4. Administration Resolution No. 02- Balboa Village Business Improvement District Section 6: The location of the District will remain the same: generally located on the Balboa Peninsula between A Street and Coronado Street, as set forth with greater specificity in the map attached as Exhibit A. BE IT FURTHER RESOLVED, that the City Council of the City of Newport Beach shall conduct a public hearing on March 26, 2002 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 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 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 or benefit within the District, those types of improvements or activities or benefit zones shall be eliminated. Further information regarding the proposed Business Improvement District renewal and expansion 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. 02- Balboa Village Business Improvement District A 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 2002. MAYOR ATTEST: CITY CLERK ATTACHMENT: Exhibit A (Boundary Map) Resolution No. 02- Balboa Village Business Improvement District _I REPORT TO THE MAYOR AND CITY COUNCIL BALBOA VILLAGE BUSINESS IMPROVEMENT DISTRICT ANNUAL REPORT FOR 2001 -2002 FISCAL YEAR Overview This is the annual report for the Balboa Village Business Improvement District, as required by Section 36533 of the California Streets and Highways Code, for fiscal year April 1, 2001 to March 31, 2002. Boundaries The boundaries of the benefit zone are on the Balboa Peninsula between A Street and Coronado Street, 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. Marketing, advertising, and promotion of Balboa Village 2. Physical Improvements within Balboa Village 3. Balboa Village BID Member and Community Outreach 4. Balboa Village BID Tax Preparation and Insurance Proposed Budget The estimated cost of providing the proposed improvements and activities in this report is approximately $27,450. The implementation of these actions is more fully described in the attached Priorities and Budget Outline for the 2002 -2003 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 10 REPORT TO THE MAYOR AND CITY COUNCIL Balboa Village BID Renewal March 5,2002 Account Status establishment owned by another person shall be exempt from this assessment: 1. Hair stylists 2. Nail technicians 3. Real estate agents During the 2001 -2002 fiscal year the district collected approximately $14,600 in assessments from members. Its account balance of the beginning of the year was $21,500. It received $10,633 in matching funds from the City and received $5,000 in additional revenues from the PT Cruiser Show for available operating revenue of $51,500. The BID has spent approximately $48,900 for approved activities. The District's current account balance is approximately $2,688 at the end of the first eleven months of the fiscal year. It is anticipated the balance will be approximately $2,600 or less at the fiscal year end, March 31, 2001. Matching funds, anticipated to be approved by the City Council for fiscal year 2002 -2003, would be added to the amount designated for marketing efforts. The advisory board of the Balboa Village Business Improvement District may raise additional funds through various events and fund- raisers in addition to the assessments levied. At this time they do anticipate additional funds in the amount of $1,00 for the 2002 -2003 fiscal year budget. These funds will be raised through private donations or proceeds from the annual community activity. Prior Year Accomplishments The merchants of Balboa Village have found their sixth year as a Business Improvement District to be very successful and have achieved several accomplishments including: * Planning and putting on the PT Cruiser Show, a two -day event with four bands, street entertainers, and a car show featuring over 150 PT Cruiser cars, as well as Dodge Vipers and Prowlers. The event was attended by several thousand people and promoted the BID area to residents and locals. Residents, BID merchants, attendees, and city staff generally agreed it to be one of the most successful programs staged by the BID area; so successful, in fact, that it will serve as a blueprint for future events of the same kind to be self funding; REPORT TO THE MAYOR AND CITY COUNCIL Balboa Village BID Renewal March 5,2002 * Professionally landscaping the planters at the intersection of Main and Balboa; * Providing seasonal decorations and lighting to promote business during the holiday season; * Printing and distributing two posters to explain and illustrate the redevelopment of Balboa Village; * Placing advertisements for boat parade viewing and whale watching activities in the local media; * Producing monthly newsletters from the Board of Directors to all members; * Maintaining membership with the Newport Harbor Chamber of Commerce and the Newport Beach Conference and Visitors Bureau, and participating in a cooperative advertising program with the Bureau; *Instituting a "Paint the Town" program where children from Newport Elementary School painted merchant windows for the Holiday Season; * Paid for insurance coverage for the association as well as preparation of the federal tax return; * Participating in phasing and construction of the Balboa Village Revitalization Project. The merchants of Balboa have worked hard to promote their village and wish to express their appreciation for the City Council's continued support of the Balboa Village Business Improvement District. I2 Balboa Village Business Improvement District Priorities and Budget Outline April 1, 2002 - March 31, 2003 Funds Available FY End 2002 2,688 Funds to be Collected April 2002 14,000 Additional Funds to be raised 1,000 Matching Funds from City 10,000 Total Available Funds 27,688 Priorities Budget Amount Total Marketing & Advertising 81% $22,200 1. Hire Marketing Consultant 2.Maintain memberships with NB CofC/NB CVB 3. Print advertising 4. Web Site 5. Direct -mail Physical Improvements 9% 1. Landscape Maintenance $2,500 Outreach Programs 2% $ 600 1. Monthly newsletter 2. Meeting notices 3. Maintain the open communication with the residents, the BIDs and City Council 4. Construction mitigation campaign Administration 8% $ 2,150 1. Insurance 2. Accounting 3. Other J3