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HomeMy WebLinkAbout05 - Balboa Island Bayside Business Improvement District Renewal and Expansion, Annual Report for 1998REPORT TO THE MAYOR AND CITY COUNCIL SUBJECT: Balboa Island Bayside Business Improvement District Renewal and Expansion, Annual Report for 1998 SUMMARY: The Marine Avenue Business Improvement District was established January I, 1996. This report summarizes the District's accomplishments during 1998, its third year of operation, and the proposed activities and budget for the coming year. The Marine Avenue Business Improvement District Board of Directors, which serves as the District Advisory Board, requests City Council approval of the annual report, expanded areas of benefit and boundaries, name change to Balboa Island Bayside Business Improvement District, modification of assessments and scheduling of the public hearing for December 14, 1998. ACTION: 4 Overview Approve Marine Avenue Business Improvement District 1998 Annual Report; and Adopt the Resolution of Intention and set the public hearing for December 14, 1998. The Marine Avenue Business Improvement District is nearing the end of its third year of operation and requests renewal of the District for 1999. State law requires that an annual report be prepared and a public hearing be held each year prior to renewal of the District. This report will provide a summary of accomplishments during 1998 and a list of proposed activities for the new year, as well as an explanation of proposed changes to the assessment calculations. The Advisory Board has also requested the district boundaries be expanded and the name of the Business Improvement District be changed. Boundary Expansion and Name Change The Advisory Board of the Business Improvement District is proposing an expansion of its boundaries to include businesses located near the ferry landing and at the "hub" of the Bayside Drive bridge area, described fully in the attached Annual Report and shown on the attached map "Exhibit A." The new areas currently benefit from some of the existing activities described in the Annual Report such as the Balboa Island brochure distribution and coordination with The Orange County Connection visitor busses. They will increasingly benefit from proposed activities such as sidewalk steam cleaning, promotions, and seasonal decorations and lighting as the District expands. CITY OF NEWPORT BEACH EaPO R> a % o COMMUNITY AND ECONOMIC Hearing Date: November 23, 1998 'c, �� DEVELOPMENT •` PLANNING DEPARTMENT Agenda Item No.: 5 3300 NEWPORT BOULEVARD Staff Person: Christy Teague NEWPORT BEACH, CA 92658 (949) 644 -3207 (949) 644 -3200; FAX (949) 644 -3250 REPORT TO THE MAYOR AND CITY COUNCIL SUBJECT: Balboa Island Bayside Business Improvement District Renewal and Expansion, Annual Report for 1998 SUMMARY: The Marine Avenue Business Improvement District was established January I, 1996. This report summarizes the District's accomplishments during 1998, its third year of operation, and the proposed activities and budget for the coming year. The Marine Avenue Business Improvement District Board of Directors, which serves as the District Advisory Board, requests City Council approval of the annual report, expanded areas of benefit and boundaries, name change to Balboa Island Bayside Business Improvement District, modification of assessments and scheduling of the public hearing for December 14, 1998. ACTION: 4 Overview Approve Marine Avenue Business Improvement District 1998 Annual Report; and Adopt the Resolution of Intention and set the public hearing for December 14, 1998. The Marine Avenue Business Improvement District is nearing the end of its third year of operation and requests renewal of the District for 1999. State law requires that an annual report be prepared and a public hearing be held each year prior to renewal of the District. This report will provide a summary of accomplishments during 1998 and a list of proposed activities for the new year, as well as an explanation of proposed changes to the assessment calculations. The Advisory Board has also requested the district boundaries be expanded and the name of the Business Improvement District be changed. Boundary Expansion and Name Change The Advisory Board of the Business Improvement District is proposing an expansion of its boundaries to include businesses located near the ferry landing and at the "hub" of the Bayside Drive bridge area, described fully in the attached Annual Report and shown on the attached map "Exhibit A." The new areas currently benefit from some of the existing activities described in the Annual Report such as the Balboa Island brochure distribution and coordination with The Orange County Connection visitor busses. They will increasingly benefit from proposed activities such as sidewalk steam cleaning, promotions, and seasonal decorations and lighting as the District expands. The name has been changed to `Balboa Island Bayside Business Improvement District' to better describe the areas included in the expanded Business Improvement District. The Advisory Board has been undergoing an outreach campaign to the expanded areas. These areas have received two mailings, an invitation to a mixer, and personal visits from Board members. The Advisory Board feels there is overall support for the expansion. At the time this report was prepared, the City had received four letters of opposition from businesses in the expansion area near the ferry landing, which are attached. 1998 District Accomplishments The Marine Avenue Business Improvement District has sponsored the following promotions and activities during the past year: 1. The distribution of a full color Balboa Island brochure 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. Coordination with The Orange County Connection tour bus service. The Bayside stop at the foot of the bridge is the second -most popular destination in the County, following only South Coast Plaza and exceeding Fashion Island by 39 %. 5. Regular steam cleaning of area sidewalks. 6. Participation with the Newport Beach Conference and Visitors Bureau. 7. Partial sponsor of Celebrate Balboa Island Parade. 8. Quarterly "Navigator" Newsletter to Members. 1998 District Revenues During 1998 the district collected approximately $15,250 and has spent approximately $11,750 for approved activities. It is anticipated that a remaining balance of approximately $1,000 will be carried over into the 1999 budget. Posed Activities and Budget The activities proposed for the next year include marketing, advertising, public relations, and public improvements and maintenance to benefit Balboa Island and Bayside area businesses. The estimated budget for these activities is approximately $16,000. Page 2 Assessment Collection For 1999 the assessment is proposed to be reduced from 190 percent of the total business license tax to 150 percent of the total business license tax for most businesses. The exceptions are to remain the same: $25 for second floor businesses, independent contractors working for businesses such as hair salons or real estate brokers are exempt, and individuals with more than one business within the District are required to pay only one assessment. Assessments are collected in one installment at the beginning of the year, and are pro -rated for new businesses that open during the year. Public Notices A public notice was published in the Daily Pilot and sent by mail to businesses in the existing and proposed areas of the Business Improvement District forty -five days prior to the protest hearing of December 14, 1998 as required by State law. There will be a mailing of a complete copy of the resolution of intention by first -class mail to each business owner in the area within seven days of the City Council's adoption of the resolution of intention. There will also be publishing of the resolution of intention in the newspaper at least seven days before the public hearing according to State law. The list used for the public notice was developed through the City's business license file. The list has been shared with the Business Improvement District Advisory Board for review and revisions, and has already been corrected to reflect changes in businesses discovered since the first mailing. Conclusion 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: nual Report Draft Resolution of Intention Exhibit A - Boundary Map Prepared by: CHRISTY D. TEAGUE, AICP Senior Planner I F:\...\BIDS\MARINE\COUNCIL\99RENEW\CC-RPTI.DOC Page 3 MARINE AVENUE BUSINESS IMPROVEMENT DISTRICT (BALBOA ISLAND BAYSIDE BUSINESS IMPROVEMENT DISTRICT) 1998 ANNUAL REPORT This is the annual report for the third year of the Marine Avenue Business Improvement District, proposed to become the Balboa Island Bayside 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 year (January 1, 1998 to December 31, 1998) and the proposed activities and budget for 1999. The name of the Business Improvement District is being changed from the Marine Avenue Business Improvement District to the Balboa Island Bayside Improvement District. The boundaries of the Business Improvement District are being expanded to: generally the 200 and 300 blocks of Marine Avenue, the 100 block of Agate Avenue, 406 to 508 South Bay Front, 1101 to 1137 Bayside Drive (odd only), and 900 to 1090 Bayside Drive (even only), as set forth with greater specificity in the map attached as Exhibit A and incorporated herein. All of these areas will benefit from the improvements and activities provided by the Business Improvement District. The improvements and activities to be provided for the new fiscal year include: 1. Marketing, advertising and public relations. 2. Brochure development and distribution. 3. Promotion of public events which 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 $16,000. The benefit assessment shall be equal to one hundred fifty percent (150 %) of the City's annual business license fee as established pursuant to Chapter 5.08 of the Municipal Code for most businesses or $25 if a second floor business. Independent professionals such as real estate salespeople are exempt. 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. 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. Assessments shall be collected in one annual installment at the beginning of the year, and be pro -rated for new businesses that open during the year. The amount of surplus carried over from 1998 is approximately $3,500 at the end of the first ten months of the year. It is anticipated the balance will be approximately $1,000 at the year end, December 31, 1998. The advisory group of the Balboa Island Bayside 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 1999 budget. Among the Marine Avenue Business Improvement District accomplishments during 1998 are the following: 1. The distribution of a full color Balboa Island brochure 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. Coordination with The Orange County Connection tour bus service. The Bayside stop at the foot of the bridge is the second -most popular destination in the County, following only South Coast Plaza and exceeding Fashion Island by 39 %. 5. Regular steam cleaning of area sidewalks. 6. Participation with the Newport Beach Conference and Visitors Bureau. 7. Partial sponsor of Celebrate Balboa Island Parade. 8. Quarterly "Navigator" Newsletter to Members. The Balboa Island Bayside Business Improvement District appreciates the City Council's continued support. 2 RESOLUTION NO. 98- 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 YEAR OF JANUARY 1, 1999 TO DECEMBER 31, 1999, TO CHANGE THE NAME TO THE BALBOA ISLAND BAYSIDE BUSINESS IMPROVEMENT DISTRICT, TO EXPAND THE BOUNDARIES, TO MODIFY THE BASIS FOR LEVYING ASSESSMENTS 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 Calendar Year 1998 which is on file in the Office of the City Clerk; and WHEREAS, the Advisory Board has requested the boundaries be expanded to include more business areas on and around Balboa Island which have benefited from the activities of the District; and WHEREAS, the assessment will benefit the existing and expanded boundaries within the District; and WHEREAS, the expanded boundary areas will be benefited by improvements and activities of the District; and WHEREAS, the Advisory Board has requested the name of the District be changed to reflect all benefited business areas within the District; and 2 WHEREAS, the Act requires the City Council to declare its intention to levy and collect assessments within the Business Improvement District for the next year; and WHEREAS, the Business Improvement District Advisory Board has recommended the basis for levying assessment be modified. NOW, THEREFORE, the City Council of the City of Newport Beach resolves as follows: Section 1: The Annual Report by the Advisory Board is on file as required by State law. The Annual Report contains a description of improvements and activities to be provided for 1999, the area boundaries, and the annual assessments within the District. Section 2: The City Council hereby declares it intention to renew the Business Improvement District for the year January 1, 1999 to December 31, 1999 pursuant to the Act. Section 3: The boundaries of the District are proposed to be expanded to include: generally the 200 and 300 blocks of Marine Avenue, the 100 block of Agate Avenue, 406 to 508 South Bay Front, 1101 to 1137 Bayside Drive (odd only), and 900 to 1090 Bayside Drive (even only), as set forth with greater specificity in the map attached as Exhibit A and incorporated herein. Section 4: The District name is proposed to be changed from "Marine Avenue Business Improvement District' to "Balboa Island Bayside Business Improvement District' to reflect all benefited business areas within the District. Section 5: The City Council intends to levy a benefit assessment upon persons conducting business in the District. Such benefit assessment shall be as follows: Resolution No. 98 -_ Balboa Island Bayside Business Improvement District 91 A. 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: I. Hair stylists 2. Nail technicians 3. Real estate agents B. The assessment for second floor businesses shall be $25. C. 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 6: 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 year. Section 7: 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 8. 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. 98 -_ Balboa Island Bayside Business Improvement District 51 Section 9: 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 which are to take place on or in any public places in the r<Texti 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 December 14, 1998 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 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 Resolution No. 98 -_ Balboa Island Bayside Business Improvement District WR 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. 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 1998. lu: •� ATTEST: CITY CLERK ATTACHMENT: Exhibit A - Boundary Map Resolution No. 98 -_ Balboa Island Bayside Business Improvement District �1"7 William C. Hardesty Realtor 503 Park Avenue, Balboa Island, Ca. 92662 (949) 675 -2866 FAX(949)673-7118 Email - BatboaHomeeaol.eom 31 Years on Balboa Island. 41 years in Ncwpoa Beach November 4, 1998 Christy Teague, Senior Planner City of Newport Beach Planning Dept. 3300 Newport Boulevard Newport Beach, Ca. 92658 -8915 Please forward a copy to each City Council Member. Re. Balboa Island Bayside Business Improvement District And Newport Beach Restaurant Association Dear Christy and Honorable City Council Members, alsw hind saw I 967 RECEIVED BY PLANNING DEPARTMEN7 CITY OF N WPPPT ,E4.C� -- AM NN '10 1998 PM 71819110111112111213141516 I have a real estate business at 503 Park Ave. on Balboa Island, and Park Ave. Cafe at 501 Park Ave. on Balboa Island, and I am opposed to both of the above bids. I have successfully operated my real estate office on Balboa Island since 1967, and Park Ave. Cafe since 1984 without these "Bids ". As a past Board Member of the Balboa Island Improvement Association, I know that gaining and maintaining membership and funds to operate is hard work, but can be accomplished without demanding funds from unwilling participants. We were often disappointed when someone wouldn't join the Association , so I can imagine how jubilant the leadership of the Newport Restaurant Association and the Balboa Island Business Association were when they found a way to force all merchants to pay. It may be easier for the leaders, but in my opinion it's an abuse of legislation intended for blighted areas. The leadership of both associations should join the Chamber of Commerce and head up a committee to fulfill their desires. That's the American Way! These bids amount to "tax and spend" wherein businesses are taxing businesses and competing with the Chamber of Commerce. I would much rather increase my contribution to "Defend the Bay" than give "spin" money to these associations. Restaurant guides are a dime a dozen. Heavy traffic and parking shortages prove that everyone who comes to Newport wants to see Balboa Island and a clean bay. I'll do my own advertising, thank you! Yours to Y, (� William C SHardesty i� �i �i- aj �� ,/ API -114 4 l� r � �� ro-, 406 South Bay Front Balboa Island, Ca. 92662 (949) 723 -0883 November 7, 1998 RECEIVED BY PLANNING DEPARTMENT CITY OF NEWPORT nEAC, Christy Teague, Senior Planner p lyyg City of Newport Beach, Planning Dept. Ah1 PM 3300 Newport Boulevard 4i6i9110111ilui1iGi3i41516 Newport Beach, California 92658 -8915 1 Re: Balboa Island, Bayside Business Improvement District. Please notify the City Clerk and the City Council that I am opposed to this business improvement discrict and do not wish to participate. / Yours truly, Jo Owner 1bucky 1tuv91 �LOft7£ZS 114 AGATE AVE. • BALBOA ISLAND, CA 92662 • (714) 675 -9484 RECEIVED BY PLANNING DEPARTMENT CITY OF NEWPORT BEACH November 10, 1998 AM NOV 16 1996 PM 71819110111112111213141518 Christy Teague, Senior Planner City of Newport Beach, Planning Dept. 3300 Newport Blvd. Newport Beach, Calif. 92658 -8915 Re: Balboa Island, Bayside Business Improvement District Please notify the City clerk and the City Council that I am opposed to this business irfpro�ement district and do not wish to participate. Yo truly 9ckv / & erth, Owner uvs Flower s Aw HIS BALWA ISLAND November 11, 1998 City Clerk City Of Newport Beach 3300 Newport Boulevard Newport Beach, California 92658 -8915 Dear City Clerk, RECEIVED '98 HOV 17 A 8 55 OFFICE OF T1;= CIT f CLERK CITY OF F, ;-_wP�URT BEACH Re: Proposed Expansion of Marine Avenue Business Improvement District ( "BID ") Protest of Proposed Expansion As a small business owner on Balboa Island, I am submitting thiss written protest to the proposed expansion of "BID" per the instructions in your notice dated October 30, 1998. My Business: JP's Address: 504 So. Bayfront, Balboa Island, Ca. 92662 Owner: John P. Carroll I am against the proposed expansion and assessment because my business is located between Agate and Opal near the Ferry Landing, well removed from businesses on and around Marine Avenue -- businesses that historically are the only beneficiaries of activities and improvements that promote business. In effect, the proposed expansion causes my business to be taxed for improvements and activities that do not result in enhancing my business. Frankly, your notice caught me quite by surprise, as the existing "BID" never approached me to advise of this proposed expansion, nor was I given any information as to the nature of any proposed activities and improvements and how those things might enhance my business. If such improvements and activities are to be made and take place on and around Marine Avenue, then the proposed expansion of "BID" and the resultant assessment is very unfair to my business. Please advise the City Council of my protest, and thank you for notifying me. Sin7eel Y�rs, �%� JMhn P. Carroll