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HomeMy WebLinkAbout12/20/2006 - STAFF REPORTS - 3.A. r A Palmi prin � Business Improvement Distri7� 19 Committee Members Christopher S. Mills, City Council Member Joy Meredith, Main Street President David H. Ready, City Manager Tish Cobble, Former Main Street Board Member Tom Wilson, Assistant City Manager John Raymond, Community & Economic Development Director Cathy Van Horn, E.D., Downtown & Uptown Administrator "" "' O" RAM ' OVERVIE�At Bi®s are special benefit assessment districts defined by geographic areas Business Improvement CisLricts (BCs) are used irecreasingiy thr®ugh®utaiif©rnuia to finance services that improve the quality cfi�e and eccnom c vitas;ty of downtowns and other cornrnerciai c=idors Main, Street and City began discussions on early 2006 to c;eueryiine merits of form ng a busirsess improvement district Main Street determined that forming a Big ;n the downtmAin and u pto=trrn, areas ,vwouid (a) creme a mechano srn for businesses to ccilecL;ve9 pc—xv for activities they COUld not afford on an individual basis; and generate revenue for a Fong-term sustainable rnarkeVnig pi--gram BID PROGRAM OVERVIEW '(�OO TINUE . a . ,ill businesses located within the BID boundaries and that have a city; business license will pay tGhe Fee, wNch would be collected through the business license process, upon renewal cr k�ihen new applicat c, ys are submitted ® The Main Street Soard will manage 'Lhe District including (-Jeveiopin,.g a work p;an and budget which ?gill be submn tied tc Council anrucaHy ounda � es `l ' . VERFDADEB - r r CA'& ELS R "I ULJ VR Wy TA�6ER1. O L VIA L0L�k r _ VIA EYTEL 'REGAL DR L i L_ I -Fir J - I r Jr, r TA'JMARISK RD r Can 6 TF-<- _LL F_ -Mu 0- c 7 CHINCIOR lairn Canyon Drive, norih of Ramon -RD Road and soulth of T2chevah ®rive r aiorg the east and west sides of the Iff Cal street; Indian Canyon Drive, north of < o al Ramon Road and SOUth of Aiejo Road AMADO RD T W < 0 015 afong the east and west sides the A 0 I �, street; BeiaE-dc Road, north of Ramon < ­� - Road and south of ,'Mejo R Load on the 6CAH MTZDFZJ ETAHQUITZCA� kwy_ W to east and viest sides of the street; . Ld - _7 < B'_ ARFNASRD- __: Purluseum Drive on the east and west 0 0 J T AREN S7 0 5 — (:�-1 w, . sl��des of the street; TahquAz Canyon 0 Way west of lnd9an Canyon Drive or ATURNIN X,LURNIN 0 RD _0 RD S"— the north and south s,�ldes of the sireei; W! Andreas Faza; and Amado Road, 21 M r 'BAWN RD _j Arenas Roac[, and BaFisto Road fro 0 -Legend 0-- 4 IF TH Indian Canyon (Drive west to BeDardo 0 11cu BID ?� I � l�� Parcels.0 Road. CALL��OC Rate iru u,, re ERR- Category A —Retail 500 sq.ft. or less $250 501 sq.ft. to 1,000 sq.ft. $300 ® 1,001 sq.ft. to 1,500 sq.ft. $350 • 1,501 sq,ft. to 2,000 sq.ft. $400 21000 sq.ft. and over $500 Category B-1 — Office • 500 sq.ft. or less $250 ® 501 sq.ft. to 1,000 sq.ft. $300 11,001 sq.ft. to 1,500 sq.ft. $350 • 11501 sq.ft. to 2,000 sq.ft. $400 21000 sq.ft. and over $500 i Rate structure conNnuedo.00 Category B-2 — Office 2nd or higher floor level ■ 500 sq.ft. or less $150 501 sq.ft. to 1,000 sq.ft. $200 ® 1,001 sq.ft. to 1,500 sq.ft. $250 1,501 sq.ft. to 2,000 sq.ft. $300 2,000 sq.ft. and over $400 Category C — Restaurants, Bars and Clubs ® 1 - 25 seats $300 © 26 - 50 seats $350 ® 51 - 75 seats $400 ® 76 - 100 seats $450 101 - seats and over $500 Rate strut we contenueed.003 Categgy D - Theaters © 1 -100 seats $250 Over 100 seats $500 Category E - Hotels 1 -- 25 rooms $350 ® 26 — 50 rooms $400 Over 50 rooms $500 BID PROGRAM 01,1ERVIEW CONTINUED . . . ■ B9l) concept presented at severa8 mcntNy Mann Street smee-ungs- HospitaRy Assccsa-Uon; SmaH Hote9s cf Bairr Spr- rigs; Fain Springs Restaulranl Associations; Genera@ meetings he''c at the Hyatt, Uptovvn and City Ha�0; and through outreach by B9ock +Captains Main Sheet Pdembers ar-e encouraged to participate thrcugh -'heir e6ected B m Bock- Cap-"Ia6ns and by joining c©m ttees © Main Street Board reconamended proceeding vvatL eImPlernentaticn decausr of p©sative feedback from M1iernbers d�pALMSwRi Z c U N k k * �CvmolitC`n� r 0441F°R ,P CITY COUNCIL STAFF REPORT DATE: December 20, 2006 LEGISLATIVE SUBJECT: PALM SPRINGS BUSINESS IMPROVEMENT DISTRICT RESOLUTION OFINTENT FROM: David H. Ready, City Manager BY: Community & Economic Development SUMMARY The City Council will consider the approval of a resolution of intent to establish the Palm Springs Business Improvement District (BID) in the downtown and uptown areas of Palm Springs. This special benefit assessment district only affects businesses located in a specific geographic area. The assessment will range from $150 to $500 depending the type and size of the business and will) be administered through the city's business license program. RECOMMENDATION: Adopt Resolution No. A Resolution of the City Council of the City of Palm Springs, California, declaring its intention to establish the Palm Springs Business Improvement District to provide business promotional activities in the downtown and uptown areas of Palm Springs and setting a public hearing date for the adoption of an Ordinance establishing the district and authorizing the levy of assessments. STAFF ANALYSIS: In early 2006, the Main Street Business Association and City of Palm Springs formed a subcommittee to evaluate the merits of creating a Business Improvement District to generate revenue for Main Street to develop a specific marketing program for downtown and uptown_ Currently, neither Main Street nor the Uptown Business Associations generate any income from membership or assessment fees. In order to implement a long-term strategic marketing plan a steady funding source needs to be developed. Business Improvement Districts (BID) are widely used throughout the country and increasingly throughout California to finance services that improve the quality of life and economic vitality of downtowns and other commercial corridors. Under the California Item 3 . A . City Council Staff Report December 20, 2006 -- Page 2 Palm Springs Business Improvement District Streets and Highways Code Section 36500-36504, the Parking and Business Improvement Act of 1989, Legislature provided cities with the express authority to make improvements and engage in business promotional activities that benefit local business through the levy of assessments upon the businesses which benefit from those improvements and activities. The Legislature found that promotion of a city's or county's scenic, recreational, cultural, and other attractions as a tourist destination is an important public purpose. BIDS are organized to supplement, not replace, municipal services. Many BIDS start with a narrow focus — usually to develop or enhance security, maintenance, or marketing programs. The Palm Springs BID will initially focus on developing a long-term sustainable marketing program for the downtown and uptown areas. The assessments will be collected with business license applications and renewals within the BID area, paid at the time the business license application is submitted or renewed through the City. All businesses located within the specified BID boundaries and that are subject to the city's business license will participate in the BID program, including retail, restaurant, theater, hotel and professional, service, and miscellaneous office businesses. The assessment will vary based on the type of business and the square footage and/or number of seats or rooms. Revenues collected will be maintained in a separate fund and dedicated to the defined area. It is proposed that the Main Street Board of Directors, who are elected by the local businesses block by block, will develop and oversee the marketing program, and will also develop other programs that would benefit the BID District. City staff will assist the Main Street Board with the administration of the program, including project development and budget oversight to carry out the goals and objectives of the BID. Assessment collections and disbursements will be handled through the City's Finance Department. Businesses located within the defined geographic area will pay the BID fees based on the following schedule: Category A—Retail 500 sq.ft. or less $250 501 sq.ft. - 1,000 sq.ft. $300 1,001 sq.ft. - 1,500 sq.ft. $350 1,501 sq.ft. - 2,000 sq.ft. $400 2,000 sq.ft. and over $500 Category B-1 — Office Category B-2 Office 2nd Ground Level or higher floor level 500 sq.ft. or less $200 $150 501 sq.ft. - 1,000 sq.ft. $250 $200 1,001 sq.ft. - 1,500 sq.ft. $300 $250 City Council Staff Report December 20, 2006 — Page 3 Palm Springs Business Improvement District 1,501 sq.ft. - 2,000 sq.ft. $400 $300 2,000 sq.ft. and over $500 $400 Category C — Restaurants, Bars and Clubs 1 - 25 seats $300 26 - 50 seats $350 51 - 75 seats $400 76 - 100 seats $450 101 seats and over $500 Category D - Theaters 1 -100 seats $250 Over 100 seats $500 Category E— Hotels 1 —25 rooms $350 26 — 50 rooms $400 Over 50 rooms $500 Note: Non-profits which do not need business licenses would be exempt from the BID fee; however, they would still be included in downtown promotional materials such as maps or directories. The BID District will encompass all businesses on Palm Canyon Drive, north of Ramon Road and south of Tachevah Drive along the east and west sides of the street; Indian Canyon Drive, north of Ramon Road and south of Alejo Road along the east and west sides the street; Belardo Road, north of Ramon Road and south of Alejo Road on the east and west side of the street; Museum Drive on the east and west sides of the street; Tahquitz Canyon Way west of Indian Canyon Drive on the north and south sides of the street; Andreas Plaza; and Amado Road, Arenas Road, and Baristo Road from Indian Canyon Drive west to Belardo Road. Main Street and City staff presented the BID proposal at several Main Street monthly meetings, as well as the following association meetings: the Hospitality Association, Small Hotels of Palm Springs, and the Palm Springs Restaurant Association. Other presentations included a general meeting of Uptown businesses on October 26, and a general meeting for all interested business owners and managers at the Hyatt Suites and another one at City Hall on November 1st, Additionally, Main Street Block Captains have talked to businesses owners located in their assigned blocks about the BID program. The response from the majority of the business owners and managers has been very positive resulting in a decision by Main Street to move forward with the recommendation to implement a Business Improvement District. The Resolution of Intent and the setting Gity Council Staff Report December 20, 2006 — Page 4 Palm Springs Business Improvement District of a public hearing allows businesses to express whether they are supportive of the BID program. FISCAL IMPACT Finance Director Review- Establishing the BID District will not negatively impact the general fund. BID assessments will create a funding mechanism for funding marketing programs for downtown and uptown Palm Springs, which do not currently exist. It is estimated that the BID will generate $150,000 to $200,000 annually. The Finance Department will be minimally impacted upon implementation of the Ordinance to calculate and collect the fees of the affected businesses. Other staff support to Main Street is already provided. r i0fin Ra ood'ipirector Cathy Van orn, Administrator mmu onomic Development Economic Development & Downtown David H. Ready, City an Tom Wilson, Wistant City Manager Attachments: Resolution of Intent BID Boundary Map RESOLUTION OF INTENT NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, DECLARING ITS INTENTION TO ESTABLISH THE PALM SPRINGS BUSINESS IMPROVEMENT DISTRICT TO PROVIDE BUSINESS PROMOTIONAL ACTIVITIES IN THE DOWNTOWN AND UPTOWN AREAS OF PALM SPRINGS AND SETTING A PUBLIC HEARING DATE FOR THE ADOPTION OF AN ORDINANCE ESTABLISHING THE DISTRICT AND AUTHORIZING THE LEVY OF ASSESSMENTS. The City Council of the City of Palm Springs finds: A. The Main Street Business Association and the City of Palm Springs evaluated the merits of creating a Business Improvement District in the downtown and uptown areas of Palm Springs. B_ The Main Street Business Association and the City determined that a Business Improvement District would benefit the area to generate revenue for Main Street to develop a specific marketing program. C. The provisions of the Parking and Bossiness Improvement Area Law of 1989 (California Streets and Highways Code (Part 6 of Division 18 of the California Streets and Highways Code, commencing with Section 35600) (the "Law") authorizes the City to impose assessments for the purpose of providing improvements and promoting activities which benefit from such improvements and activities. D. The establishment of a business improvement district and the concomitant levy of assessments will promote the economic revitalization of the downtown and uptown areas of the City, create jobs, attract new businesses, and prevent the erosion of these areas. In addition, the establishment of the business improvement district will enhance and further the promotion of the City's scenic, recreational, cultural, commercial, and other attractions as tourist destinations. The City Council of the City of Palm Springs resolves: SECTION 1. The City Council declares its intent to form the Palm Springs Business Improvement District for the downtown and uptown areas of Palm Springs pursuant to the Law and levy assessments for the purpose of promoting activities which will benefit the businesses located and operating within the area of the Business Improvement District. SECTION 2_ The boundaries of the District shall be the areas described on the map of the District on file in the Office of the City Clerk and shall include: All businesses on Palm Canyon Drive, north of Ramon Road and south of Tachevah Drive along the east and west sides of the street, Indian Resolution No. Page 2 Canyon Drive, north of Ramon Road and south of Alejo Road along the east and west sides the street; Belardo Road, north of Ramon Road and south of Alejo Road on the east and west sides of the street; Museum Drive on the east and west sides of the street; Tahquitz Canyon Way west of Indian Canyon Drive on the north and south sides of the street; Andreas Plaza; and Amado Road, Arenas Road, and Baristo Road from Indian Canyon Drive west to Belardo Road. SECTION 3. The City Council proposes to adopt a schedule of assessments to be levied on the businesses within the District for the purpose of funding, providing, or promoting activities which benefit businesses located and operating the District, to the maximum extent permitted under the Law. SECTION 4. That the proposed assessments shall be levied on each business required to pay business license taxes and located within the area of the District. The assessments are proposed to be paid, collected, and administered in the manner business license taxes are paid, collected, and administered in accordance with Division II of Title 3 of the Palm Springs Municipal Code. The amount of the assessments shall be in accordance with the following table; Category A—Retail 500 sq.ft. or less $250 501 sq.ft. - 1,000 sq.ft. $300 1,001 sq.ft. - 1,500 sq.ft. $350 1,501 sq.ft. - 2,000 sq.ft. $400 2,000 sq.ft. and over $500 Category B-1---Office Ground Level Category B-2 Office 2"d or higher floor level 500 sq.ft. or less $200 $150 501 sq.ft. - 1,000 sq.ft. $250 $200 1,001 sq.ft. _ 1,500 sq.ft. $300 $250 1,501 sq.ft. - 2,000 sq.ft. $400 $300 2,000 sq.ft. and over $500 $400 Category C — Restaurants, Bars and Clubs 1 - 25 seats $300 26 - 50 seats $350 51 - 75 seats $400 76 - 100 seats $450 101 seats and over $500 Category D - Theaters 1 -100 seats $250 Over 100 seats $500 Resolution No. Page 3 Category E -- Motels 1 —25 rooms $350 26 —50 rooms $A 00 Over 50 rooms $500 New businesses shall not be exempt from the payment of any applicable assessment. SECTION 5. That the City Council does hereby give notice that on January 17, 2007 at 6:00 p.m. or as soon thereafter as practicable, at a regular meeting of the City Council of the City of Palm Springs, a public hearing will be held on the question of formation of said Business improvement District, the establishment of its boundaries, and the levy of the proposed assessments. The City Clerk of Palm Springs is herby directed to give notice of said hearing in accordance with Sections 36523 and 36523.5 of the Law. SECTION 6. (a) At the public hearing, the City Council shall hear and consider all protests against the establishment of the District, the extent of the area of the District, or the furnishing of specified types of improvements or activities within the District. A protest may be made orally or in writing by any interested person. Any protest pertaining to the regularity or sufficiency of the proceedings shall be in writing and shall clearly set forth the irregularity or defect to which the objection is made- (b) Every written protest shall be filed with the City Clerk at or before the time fixed for the public hearing. The City Council may waive any irregularity in the form or content of any written protest and at the public hearing may correct minor defects in the proceedings. A written protest may be withdrawn in writing at any time before the conclusion of the public hearing. (c) Each written protest shall contain a description of the business in which the person subscribing the protest is interested sufficient to identify the business and, if a person subscribing is not shown on the official records of the city as the owner of the business, the protest shall contain or be accompanied by written evidence that the person subscribing is the owner of the business. A written protest which does not comply with this section shall not be counted in determining a majority protest. (d) If written protests are received from the owners of businesses in the proposed District which will pay 50 percent or more of the assessments proposed to be levied and protests are not withdrawn so as to reduce the protests to less than that 50 percent, no further proceedings to create the specified parking and business improvement district or to levy the proposed assessment, as contained in this resolution of intention, shall be taken for a period of one year from the date of the finding of a majority protest by the City Council. Resolution No. Page 4 ADOPTED THIS_day of December, 2006 David H_ Ready, City Manager ATTEST: James Thompson, City Clerk CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF PALM SPRINGS ) I, JAMES THOMPSON, City Clerk of the City of Palm Springs, hereby certify that Resolution No. _ is a full, true and correct copy, and was duly adopted at a regular meeting of the City Council of the City of Palm Springs on by the following vote: AYES: NOES: ABSENT: ABSTAIN: James Thompson, City Clerk City of Palm Springs, California VER A DEL SJ-R ] - -- - L6VE YI- `m CAMINO-�EL SLIf - �'-- 4-' r�r] ��r_ .. � IL,- TA EH V,AH-qR L I �E7 OLA; rn - 0 7 - -IAP� III IYEIL ��� ' ter; r , I I L-- REG I —i - L L f I._.�,. I I `aJ�T MARISIK RE) IIMEIRII,I P�) l a r1-I:r-2, TE GRA, NUIIk�UA IQN QI h --I] 1_1._I L I � IT T I-1 NO-D ALE o Am �J a -- I w 1_2 'y 71 _ _ AMAgO RD m i U ..� f - ' I I ¢� - ial � I LU -�����-` AH I-UITZDR1 -- _ L- -z . FE-IAld. UJTZCANY.ON'WY' 1141gSI Tir l J _JAF2EA6 Rb - -- �----------- -Q ,J _ -OI Q Ilr ] y{ g T N� SAT RNI O IRS- r 7 �I. w d RD . 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