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HomeMy WebLinkAbout10/24/2007 - STAFF REPORTS - 00,VpL LM SA ti �y V to 5� c0-,- CITY COUNCIL STAFF REPORT DATE: OCTOBER 24, 2007 CITY MANAGER REPORT SUBJECT: PALM SPRINGS BUSINESS IMPROVEMENT DISTRICT STATUS REPORT FROM: David,H. Ready, City Manager BY: Community & Economic Development FORMATION • The Palm Springs Business Improvement District (BID) was initiated by Main Street Palm Springs in late 2005 to develop a sustainable marketing and promotion program in the downtown and uptown areas. A business improvement district program is a common method through which a source of funding can be established to generate revenue to promote the uptown and downtown areas. In February 2006 a Main Street Subcommittee was formed to explore the Business Improvement District idea. It included Main Street board members, City Council and staff: o Joy Meredith, Main Street Board President o Tish Gobble, (former) Main Street Board Member o Chris Mills, City Council Member o David Ready, City Manager o Tom Wilson, Assistant City Manager o John Raymond, Community & Economic Development Director o Cathy Van Horn, Economic Development & Downtown Administrator The Subcommittee focused on establishing the district boundaries, fee structure, fee collection system and organizational structure. Staff researched existing BIDS in California and provided the Subcommittee information on how other BIDS were structured. The Main Street Board reviewed the proposed district boundaries, assessment fees and use of funds. The Subcommittee, Main Street Board and City staff concluded the BID evaluation recommending boundaries, the use of revenues and the fee collection mechanism. • The proposed BID was agendized on every Main Street Executive Board Agenda and each monthly general meeting throughout 2006, and was presented to the Ipl.g4/1 Od7 G'rrr.rrle�es ,��� XQ4 )177vA/.4 e. City Council Staff Report October 24, 2007 -- Page 2 PS Business Improvement District Update Hospitality Association, the Small Hotels of Palm Springs and the Palm Springs Restaurant Association. • On October 23, 2006 a letter and flyer was sent to all businesses listed on the Downtown Direclory Map inviting them to special meetings scheduled by staff and Main Street to give business owners an opportunity to learn more about the BID program. The Main Street president and staff met with interested parties on October 26 and November 1 (9:00 a.m. and 5:00 p.m.) and on November 7 at the Main Street General Meeting. • The sessions were held in uptown, downtown and at City Hall. The response from the majority of the business owners and managers in the affected area was very positive, and Main Street recommended that the City implement the BID. • On December 20, 2006 the City Council adopted Resolution 21793 declaring its intention to establish the BID, setting the date of a public hearing to adopt an Ordinance establishing the district and authorizing the levy of assessments. • On December 22, 2006 a Public Hearing Notice and packet of information was mailed to the 720 businesses located within the geographic boundaries of the BID identified by the City's business license database. The packet contained a cover letter, the Public Hearing Notice, a copy of Resolution No. 21793 and a Q & A fact sheet (copies attached). • The first reading of the Ordinance to establish the BID was scheduled for January 17, 2007. Due to a power outage the meeting was adjourned and the item continued to the next regular Council meeting. • Council approved the ordinance on February 7, 2007, and adopted (second reading) Ordinance No. 1709 on February 21, 2007. FEE IMPLEMENTATION • The BID fee collection started July 1, 2007 to correspond to the City's fiscal year. In June existing businesses within the district began receiving business license renewal notices with a cover letter and fact sheet explaining the BID program and applicable fees. New business license applicants within the district now receive the same information. • The BID Bylaws were drafted and presented to the Main Street board, which reviewed and approved them at the June 29 Executive Board meeting. The BID Bylaws were approved by council on July 18, 2007. The BID Bylaws establish the rules by which the Main Street Executive Board and Marketing Steering Committee operate. 9 The Main Street Board is designated in the BID Ordinance as the District City Council Staff Report October 24, 2007 -- Page 3 PS Business Improvement District Update Advisory Board to administer the program. The Marketing Steering Committee was established in the Bylaws to draft the marketing plan and advise the Main Street Board on the BID program. • To date the BID has collected $20,125. • The Finance Department recently reviewed the BID fee -payment compliance using July (the first month) as the sample month. There were 54 business license renewals sent out that had addresses in the BID. Out of that 54, 20 paid their License and their BID Fees, 17 have paid their business license, but not their BID Fees and 8 have not renewed their Business License. Nine (9) businesses have either moved or closed. • Ten of the 17 that paid their Business License but not their BID Fee are in the professional and/or contractor category. There are some exemptions in those categories. Finance will look at those to determine whether those not paying are exempt or delinquent. • The implementation of the BID collection will take a full business license renewal cycle to become seamless. "Self -calculation" of the BID fee was the first step for new applicants and those renewing their business licenses by estimating the BID fee due on the renewal notice. Staff is available to assist business owners with this process. Over the next six months staff will also work to verify the correct fees. Once the BID area has completed one business license renewal cycle, the BID fees for each address will be validated. e111Ili /_1:4NAII►CCI&II=1 =1:7h161016]Ili IJdIII i9=14 • In June, 2007 staff helped Main Street prepare a solicitation to the downtown community inviting interested persons to apply to service on the BID Marketing Steering Committee. A mailer was set to all businesses within the district, and a notice was posted on Channel 17 and the websites of both Main Street and the City. • Fourteen applications were received and reviewed by the Main Street Board. The BID Steering Committee appointments were approved at the June 29 Main Street Executive Board meeting. The Board also chose to increase the Committee to nine people; allowing for six at -large general members and three Main Street Board Members. • Serving on the BID Marketing Steering Committee are: o Craig Michaels Musical Affairs Entertainment o Jasmine Sharp Sperry Van Ness Realty o J.C. Constant* Pomme Frite o Jonathan Heath (Chairman) Viceroy Hotel City Council Staff Report October 24, 2007 -- Page 4 PS Business Improvement District Update o Joy Meredith* Crystal Fantasy o Lee Morcus Chop House o Mary Perry* PS Bureau of Tourism o Tom Bianco Bianco Jewelry o Open seat Main Street Board Member Note: One member resigned due to a conflict. The seat will be filled at the next Main Street Executive Board meeting October 30. • An introductory meeting of the Marketing Steering Committee was held July 3, 2007 for the purpose of having a general discussion about the role and focus of the BID program. • The Steering Committee has since held meetings on July 12, July 20, August 6, September 4, September 18, October 4 and October 22. • The Steering Committee has discussed the longer -range marketing efforts but have recommended the Main Street Board continue several existing Main Street programs, some of which have previously paid For by the City, including the following current Main Street projects: o Downtown Directory Map $24,500 o Holiday Banners $ 2,000 o Display unit for Show Me P.S. $ 800 ■ Initial marketing ideas discussed by the BID Committee include both short and long term, programs. In the short term, the Committee agreed that the cost of the above items could be paid from the BID fund. • Long term marketing ideas include: branding; website development; gift card/post card campaign; pocket concierge (fold out map) and kiosks. • Most recently the Steering Committee has discussed the need for a marketing consultant to pull together the programs. The Steering Committee feels strongly that a professional marketing consultant is needed now to develop the program and implementation schedule. • A special meeting was held on October 22 in which the BID Steering Committee met with a marketing firm to develop a scope of work for an RFP. • The process to select a marketing consultant will take approximately 90 days. During that time the Committee will continue to meet and develop ideas for future BID marketing programs.