HomeMy WebLinkAboutAgenda: Study Session: Property Based Business Improvement District (PBID) for Downtown Arcadia ti �FARC9
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Development Services Department
DATE: March 6, 2012
TO: Mayor and City Council
FROM: Jason Kruckeberg, Assistant City Manager/Development Services Director -
By: Jerry Schwartz, Economic Development Manager cps
SUBJECT: STUDY SESSION: DISCUSSION AND DIRECTION REGARDING
DOWNTOWN CONSULTING SERVICES TO ASSIST WITH THE
ESTABLISHMENT OF A PROPERTY BASED BUSINESS
IMPROVEMENT DISTRICT (PBID) FOR DOWNTOWN ARCADIA
Recommendation: Provide Direction
SUMMARY
The Arcadia Downtown Business Association (ADBA) determined that the form of
organization it wanted to pursue for downtown Arcadia is a Property Based Business
Improvement District (PBID). As directed, staff distributed a Request for Proposals
(RFP) for consulting services to work with the ADBA on the establishment of a PBID.
Due to the demise of redevelopment, the funding source for the consulting cost is no
longer available. If the PBID process is going to move ahead, a funding source for the
consultant will need to be determined.
BACKGROUND
Members of the downtown business community began meeting monthly in June 2010.
In July 2010, a core group volunteered to hold an additional meeting each month to
provide leadership and plan the larger meetings. The core group developed the name
Arcadia Downtown Business Association (ADBA), a mission statement and goals.
During the initial monthly meetings, the ADBA had guest speakers from area business
districts that provided insights into different forms of downtown organizations.
On January 18, 2011, the Council, acting as the Redevelopment Agency, held a Study
Session to discuss the ADBA, its progress to date, and efforts for the future. The ADBA
leadership requested the assistance of an experienced downtown consultant to help
them plan their future. After being given direction at that meeting, staff sought
proposals to help the ADBA. On March 15th, the Agency Board hired Urban Place
Consulting at a cost of about $19,000 to provide professional expertise to the ADBA
about options for downtown Arcadia, from goals for the area to choices for long term
formation and funding.
Urban Place helped the ADBA with establishing its non-profit status, developing an
identity through a website and letterhead, conducted a survey about perceptions of the
downtown, and provided ideas about what downtown Arcadia could become. At the
completion of its work with the ADBA, Urban Place prepared a report that was
presented to the Agency Board at a Study Session that was held on November 15,
2011. At that meeting the ADBA leadership requested assistance with a consultant to
guide them through the process to establish a PBID. The ADBA decided to pursue a
PBID because of the initial five year approval period provides stability in comparison
with a Business Based BID which must be renewed annually, the funding for downtown
programs and events that could be generated from property owners, and the desire to
involve more property owners in the planning for the future of downtown Arcadia.
DISCUSSION
Staff received three proposals from experienced downtown consultants to work with the
ADBA on establishing a PBID. The consulting costs will be a maximum of $70,000 and
is expected to take about nine months to complete. A consultant will work with the
businesses to develop an assessment formula, refine PBID goals and prepare a budget,
work with the current ADBA Board on outreach to other businesses, and insure that the
process meets the requirements of Proposition 218. Since the assessment is on the
individual properties, it is collected as part of the property tax payments and then
remitted back to the PBID by the Los Angeles County Assessor. The assessments
would start to be received in the year after the PBID is approved.
FISCAL IMPACT
The cost for Urban Place Consulting was paid from redevelopment funds. Since
redevelopment has been eliminated, a different funding source would be necessary in
order to fund the cost to establish a PBID. Costs of establishment would be a maximum
of $70,000 and the only realistic funding source at this time is the General Fund. If the
Council wishes to pursue assisting the ADBA in establishing a PBID, the project could
be added to the FY 2012-2013 budget.
RECOMMENDATION
Provide direction.
Approved by: )eti•4.-e-Q_P
Donald Penman, City Manager
PBID
March 6, 2012
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