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HomeMy WebLinkAbout07 - Marine Avenue BID RenewalCITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. 7 June 10, 2008 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Community & Economic Development, Planning Department Kathlyn Bowden, AICP, Economic Development Coordinator kbowden(o)city. newport- beach. ca. us SUBJECT: Marine Avenue Business Improvement District Renewal: Annual Report for Fiscal Year 2007 - 2008, and Adoption of Resolution of Intention to Levy for the Fiscal Year 2008 -2009. ISSUE: Should the City Council renew the Marine Avenue Business Improvement District for its 13th year of operation, for the BID's fiscal year of July 13t, 2008 to June 30th, 2009? RECOMMENDATION: 1. Approve the Marine Avenue Business Improvement District Year 2007 - 2008 Annual Report; and 2. Adopt the Resolution of Intention to Levy Assessments and set the public hearing for June 24, 2008. DISCUSSION: Background: The Marine Avenue Business Improvement District (BID) is nearing the end of its twelfth year of operation and requests renewal of the District for the fiscal year July 1, 2008 to June 30, 2009. The Marine Avenue BID was established January 1, 1996. This report summarizes the District's accomplishments during the fiscal year 2007 - 2008, its twelfth year of operation, and the proposed activities and budget for the coming year. The BID's Board of Directors, which serves as the District Advisory Board, requests City Council approval of the annual report and Marine Avenue BID Renewal Hearing June 10, 2008 Page 2 scheduling of the public hearing for June 24, 2008. The District includes the 200 and 300 blocks of Marine Avenue as set forth with greater specificity in the map attached as Exhibit A. California 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 2007 -2008 and proposed activities for the fiscal year 2008 - 2009 are provided below. The District's 2008 - 2009 activities are proposed to remain the same as in the fiscal year 2007 - 2008. Twelfth Year District Accomplishments: The Marine Avenue Business Improvement District has sponsored the following promotions and activities during the past year: • Placement of advertisements in several tourist related publications. • Implementation and improvement of a BID sponsored website, www.balboa-island.net. • Christmas decorations and lighting to enhance holiday shopping along Marine Avenue. • Participation with the Anaheim /Orange County Visitors and Conference Bureau to more widely encourage county -wide tourists to visit Balboa Island • Participation with the Newport Beach Conference and Visitors Bureau, particularly in the installation of a directory at the ferry landing directing people to Marine Avenue. • Preparation and display of Balboa Island flag campaign in conjunction with the Balboa Island Improvement District. • Moved to secure insurance coverage for the association. Fiscal Year District Revenues During 2007 — 2008, the District collected approximately $11,600 in member assessments with $4,000 in additional funds remaining to be collected. Its account balance at the beginning of the year was $512. The BID received $8,813.00 in funds from the City. The BID has spent approximately $10,308.00 for approved activities, and anticipates spending an additional $4,000.00 by fiscal year end. It is anticipated that a remaining balance of approximately $6,300.00 will be carried over into the 2008 - 2009 fiscal year budget. Proposed Activities and Budget: The activities proposed for the next year include marketing, advertising, public relations, and public improvements and maintenance to benefit Marine Avenue businesses. The estimated budget for these activities is approximately $27,050. Marine Avenue BID Renewal Hearing June 10, 2008 Page 3 FUNDING AVAILABILITY: Business Improvement District matching funds are included in City Budget Account No. 2720 -8250. Prepared by: r KATHLYN BOWDEN Economic Development Coordinator With Assistance from: CLINTON SCOTT PALMER B.I.D. Systems, Inc., BID Administration Submitted by: Attachments: Exhibit A— BID Boundary Map Exhibit B — FY 07 -08 Annual Report and FY 08 -09 Priorities & Budget Exhibit C — Resolution of Intention to Levy 2008 - 8 EXHIBIT B MARINE AVENUE BUSINESS IMPROVEMENT DISTRICT FISCAL YEAR 2007 - 2008 ANNUAL REPORT This is the annual report for the twelfth 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 fiscal year (July 1, 2007 to June 30, 2008) and the proposed activities and budget for the 2008 — 2009 fiscal year. 2007 — 2008 Accomplishments Among the Marine Avenue Business Improvement District (BID) accomplishments during 2007 — 2008 are the following: 1. Placement of advertisements in several tourist related publications. 2. Implementation and Improvement of a BID sponsored website, www.balboa- island.net 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 county -wide tourists to visit Balboa Island 5. Participation with the Newport Beach Conference and Visitors Bureau, particularly in the installation of a directory at the ferry landing directing people to Marine Avenue. 6. Preparation and display of Balboa Island flag campaign in conjunction with the Balboa Island Improvement District. 7. Moved to secure insurance coverage for the association. Fiscal Year District Revenues During 2007 — 2008, the BID collected approximately $11,600 in member assessments with $4,000 in additional funds remaining to be collected. Its account balance at the beginning of the year was $512. The BID received $8,813 in funds from the City. The BID has spent approximately $10,308 for approved activities, and anticipates spending an additional $4,000 by fiscal year end. It is anticipated that a remaining balance of approximately $6,300 will be carried over into the 2008 - 2009 fiscal year budget. Renewal of District S The boundaries of the benefit zone will remain the same as fiscal year 2007 - 2008 as set forth with greater specificity in the map attached as Exhibit A and incorporated herein. The benefit assessments will be collected by the City in one installment. The benefit assessment shall be equal to one hundred percent (1001/6) 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 fee will be assessed. The penalty for delinquent payments shall be equal to that established for delinquent business license fees pursuant to Chapter 5.08 of the Municipal Code, 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 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 in one annual installment at the beginning of the fiscal year, and be pro -rated for new businesses that open during the fiscal year. Proposed Improvements. Activities and Budget The BID Advisory Board as part of the attached Annual Report submits the 2008 -2009 Priorities and Budget Outline, including specific goals for each category. The highest priorities for the upcoming fiscal year are: 1. Marketing, advertising and public relations. 2. Promotion of public events that are to take place on or in any public places in area. 3. Decoration of any public place in the area. 4. Public area improvements and maintenance activities. 5. The general promotion of retail trade activities. The estimated cost of providing the proposed improvements and the activities described in this report are approximately $27,050. The implementation of these actions is more fully described in the attached Priorities and Budget Outline for the 2008 — 2009 fiscal year. The merchants of Marine Avenue appreciate the efforts of the City Council and your continued support of Balboa Island. 2 / Marine Avenue Business Improvement District Priorities and Budget Outline . July 1, 2008 — June 30, 2009 Funds Available FISCAL FY End 2007 $ 6,300 Funds to be Collected July 2008 .$13,100 Anticipated Matching Funds from City $ 8,000 Total Available Funds $ 27,400 Priorities Percent of Budget Amount 1. Marketing 72% $19,800 • Continue to develop and market website • Place advertising in tourist related publications 2. Memberships 5% $1,300 • Newport Beach Visitor and Convention Bureau 3. Administration 8% $2,116 • Mailing and Postage Costs 4. Flag Program 11% $3,000 5. Seasonal Decor 4% $1,200 3 EXHIBIT C RESOLUTION NO. 08- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH DECLARING ITS INTENTION TO LEVY ASSESSMENTS FOR THE MARINE AVENUE BUSINESS IMPROVEMENT DISTRICT FOR THE FISCAL YEAR OF JULY 1, 2008 TO JUNE 30, 2009, AND FIXING 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 the Fiscal Year 2007 - 2008 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 filed by the Advisory Board is hereby approved. The Annual Report contains a description of improvements and activities to be provided for 2008 - 2009, the area boundaries, and the annual assessment within the District. Section 2: The City Council hereby declares it intention to renew the Business Improvement District for the fiscal year July 1, 2008 to June 30, 2009 pursuant to the Act. NO 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 intends 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 benefit assessment 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. Section 5: The benefit assessments shall be collected by the City in one 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. 08 -_ 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 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. BE IT FURTHER RESOLVED, that the City Council of the City of Newport Beach shall conduct a public hearing on June 24, 2008 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 (949) 644 -3225. Resolution No. 08- Marine Avenue Business Improvement District /v 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 MAYOR ATTEST: CITY CLERK ATTACHMENT: Exhibit A - Boundary Map pm� Resolution No. 08-- Marine Avenue Business Improvement District