HomeMy WebLinkAboutItem 3b - Resolution No. 6982 - Downtown Arcadia Community Benefit District• ow I I
''
DATE:
TO:
FROM:
STAFF REPORT
Development Services Department
June 18, 2013
Honorable Mayor and City Council
Jason Kruckeberg, Assistant City Manager /Development Services Director
By: Jerry Schwartz, Economic Development Manager
SUBJECT: ADOPT RESOLUTION NO. 6982, STATING ITS INTENTION TO
ESTABLISH THE DOWNTOWN ARCADIA COMMUNITY BENEFIT
DISTRICT AND TO LEVY AND COLLECT ASSESSMENTS WITHIN
SUCH DISTRICT PURSUANT TO ARCADIA MUNICIPAL CODE
SECTION 1961, ET SEQ; AND APPOINTING A TIME AND PLACE FOR
HEARING OBJECTIONS THERETO
Recommended Action: Adopt
SUMMARY
The Arcadia Downtown Business Association and the Downtown Business District
Steering Committee have been working with a consultant, New City America, for the
past 12 months on the establishment of a Community Benefit District ( "CBD ") in the
downtown area. After developing a Management District Plan and agreeing on a total
first year assessment amount, petitions were sent to all property owners in late - April.
By the May 31 deadline, supportive petitions representing more than 30% of the first
year assessments were returned. The 30% petition threshold is sufficient for the City
Council to authorize the distribution of ballots for a final vote on the establishment of the
CBD. Resolution No. 6982 directs that those ballots be sent to property owners for a
final determination on the downtown CBD.
BACKGROUND
The Arcadia Downtown Business Association ( "ADBA ") first formed in June 2010. After
several meetings and the establishment of a leadership group, the ADBA came to the
City Council in January 2011 and requested the assistance of an experienced
downtown consultant to work with them to explore possibilities for downtown Arcadia
and different ways they could organize. Redevelopment funds were used to hire Urban
Place Consulting. In November, 2011, the ADBA addressed the City Council in a Study
Session and indicated that, after working with Urban Place Consulting, they had
decided to form a Property Based Business Improvement District ( "PBID "). The City
Resolution 6982: Intent to Establish the
Arcadia Downtown Community Benefit District
June 18, 2013
Page 2 of 4
Council directed staff to issue a Request for Proposals ( "RFP ") to downtown consultants
for services to form a PBID.
The RFP yielded three proposals from experienced downtown consultants. On
March 6, 2012, after the dissolution of redevelopment in California, the City Council held
a Study Session on PBID funding. ADBA members appealed to the City Council to let
them continue the process to create a long term plan for the downtown. The City
Council agreed to use the General Fund to pay for the PBID consultant. After ADBA
leadership interviewed the three firms that responded to the RFP, there was unanimous
support for New City America and in May, 2012, the City Council approved a contract.
In January, 2013, the City Council approved Ordinance No. 2306 that established some
specific modifications to the process for establishing a Community Benefit District in
Arcadia. As a Charter City, the City Council was able to develop certain changes to the
Streets and Highways Code ( "Code "), which governs the establishment of Business
Improvement Districts. One change that was adopted was to allow a 30% threshold of
returned petitions, rather than the standard 50% in the Code.
DISCUSSION
New City America has held nine meetings over the course of 11 months, first with the
leadership of the ADBA, and then with progressively larger groups of downtown
business and property owners that came to be the Downtown Community Benefit
Steering Committee. New City America initially distributed a survey to property owners
to determine their priorities for downtown Arcadia and which services they would
consider funding. The responses were used as the CBD formation process moved
forward.
The Steering Committee has provided guidance on important decisions, including
confirming the CBD boundaries, setting the first year budget, establishing service and
spending priorities, and agreeing to a potential 5% increase in the annual assessment
depending on a yearly vote of the CBD Management Committee. Ultimately, the
Steering Committee approved the Management District Plan, which includes all of these
elements, and this Plan was made available to property owners as part of the petition
process. The Management District Plan is attached as Exhibit "A" to this staff report.
The boundaries for the Community Benefit District will be First Avenue, from St. Joseph
Street to California Street, and Huntington Drive, between Santa Anita Avenue and
Second Avenue. The Steering Committee agreed that the first year assessment total
would be $117,515. These funds would be used as follows:
Resolution 6982: Intent to Establish the
Arcadia Downtown Community Benefit District
June 18, 2013
Page 3 of 4
There are two important points about the first year budget. First, these services are
required to be an addition to, and not a replacement of, benefits currently provided by
the City of Arcadia. Second, the category of "Enhanced Residential Improvements" is
established as part of the Community Benefit District, even before there are any
residences in the downtown. This allows an amount to be added when residences are
introduced into the downtown as part of mixed -use developments. The CBD
Management Committee will implement the Management District Plan to guide
downtown activities and develop the budget priorities on a yearly basis.
The Management District Plan was submitted to the City of Arcadia and reviewed by the
City Attorney. After the approval of the Management District Plan, New City America
sent petitions in late -April to every property owner in the District. The petitions included
the amount of the first year assessment and asked each property owner if they
supported being assessed. By the May 31 deadline, property owners representing
31.59% of the total first year assessment returned petitions in support of the
assessment. This is above the minimum 30% level established by Ordinance No. 2306.
The City Council has the opportunity to approve the initiation of the last step in the CBD
formation process: the mailing of ballots approving or rejecting the District and the
assessments. Resolution No. 6982 declares the City Council's intent to establish the
Community Benefit District and distribute ballots for the final vote. If approved, on
August 6, the City Council will hold a Public Hearing to listen to any testimony for or
against the CBD, the City Clerk will count the ballots, and a final determination will be
made regarding the formation of the Community Benefit District in Downtown Arcadia.
In the Community Benefit District, all property owners are required to pay if they receive
benefits. This includes the City of Arcadia. If the CBD is approved, the City's FY 2013-
14 assessment will be $4,606. This amount was included in the City budget that was
approved at the June 4 City Council meeting.
Description Expenditure
.•
District Identity and Streetscape
48%
$56,000
Improvements
Sidewalk and Gutter Cleaning,
21%
$25,000
Beautification and Order
Enhanced Residential
0%
$0
Improvements
Program Management, Corporate
27%
$32,000
Operations
Contingency
4%
$4,515
Total 1St Year Budget
100%
$117,515
There are two important points about the first year budget. First, these services are
required to be an addition to, and not a replacement of, benefits currently provided by
the City of Arcadia. Second, the category of "Enhanced Residential Improvements" is
established as part of the Community Benefit District, even before there are any
residences in the downtown. This allows an amount to be added when residences are
introduced into the downtown as part of mixed -use developments. The CBD
Management Committee will implement the Management District Plan to guide
downtown activities and develop the budget priorities on a yearly basis.
The Management District Plan was submitted to the City of Arcadia and reviewed by the
City Attorney. After the approval of the Management District Plan, New City America
sent petitions in late -April to every property owner in the District. The petitions included
the amount of the first year assessment and asked each property owner if they
supported being assessed. By the May 31 deadline, property owners representing
31.59% of the total first year assessment returned petitions in support of the
assessment. This is above the minimum 30% level established by Ordinance No. 2306.
The City Council has the opportunity to approve the initiation of the last step in the CBD
formation process: the mailing of ballots approving or rejecting the District and the
assessments. Resolution No. 6982 declares the City Council's intent to establish the
Community Benefit District and distribute ballots for the final vote. If approved, on
August 6, the City Council will hold a Public Hearing to listen to any testimony for or
against the CBD, the City Clerk will count the ballots, and a final determination will be
made regarding the formation of the Community Benefit District in Downtown Arcadia.
In the Community Benefit District, all property owners are required to pay if they receive
benefits. This includes the City of Arcadia. If the CBD is approved, the City's FY 2013-
14 assessment will be $4,606. This amount was included in the City budget that was
approved at the June 4 City Council meeting.
Resolution 6982: Intent to Establish the
Arcadia Downtown Community Benefit District
June 18, 2013
Page 4 of 4
FISCAL IMPACT
Approval of the Community Benefit District will cost $4,606 in FY 2013 -14 for the
assessment on City property. This amount was included in the City budget that was
approved at the June 4 City Council meeting. The benefit to the City of the CBD will be
longer term and should increase as the District grows and evolves over time. Examples
of potential value to the community include: enhanced streetscapes, a stronger
business climate, and decreased crime, to name a few.
RECOMMENDATION
It is recommended that the City Council find that this action is exempt under the
California Environmental Quality Act; and adopt Resolution No. 6982, stating its
intention to establish the Downtown Arcadia Community Benefit District and to levy and
collect assessments within such District pursuant to Arcadia Municipal Code Section
1961, et seq; and appointing a time and place for hearing objections thereto.
Approved:
Dominic Lazzar
City Manager
Attachments: Exhibit "A" - Management District Plan
Resolution No. 6982
Exhibit "A"
Management District Plan
America, In
THE DOWNTOWN ARCADIA
COMMUNITY BENEFIT DISTRICT
2013
MANAGEMENT DISTRICT PLAN
Arcadia, California
Formed Under Ordinance # 2306 of Article 1 of the Arcadia Municipal Code,
Chapter 14 on Community Benefit Districts
Final Plan —April 1St, 2013
Prepared by:
New City America, Inc.
and the
Downtown Arcadia CBD Steering Committee
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11 1 1 ! 1 1 1 1 11 1 1 _
710 W. Ivy Street ■ San Diego, CA 92101 ■ 888 - 356 -2726 ■ 619- 233 -5009 ■ Fax 619- 239 -7105
mail @newcityamerica.com ■ www.newcityamerica.com ■ Facebook: New City America, Inc.
1
Table of Contents
Section Number
1. Management District Plan Summary 3
2. Downtown Arcadia CBD Boundaries 8
3. District Improvement and Activity Plan 10
4. Assessment Methodology 16
5. District Rules, Regulations and Governance 26
6. Implementation Timetable 26
7. Assessment Roll of Properties Included 27
Attachment:
A. Engineer's Report
2
Section 1
Management District Plan Summary
The name of this Community Benefit District is the Downtown Arcadia Community Benefit
District (the "CBD "). The District is being formed pursuant to Ordinance 2306, Article 1, Chapter
14 of the Arcadia Municipal Code as hereinafter referred to as the Ordinance.
Developed by the Arcadia Downtown Business Association and the Downtown Arcadia CBD
Steering Committee — this Management District Plan is proposed to improve and provide
special benefits to individual parcels located within the boundaries of the newly proposed 2013
Downtown Arcadia Community Benefit District. The proposed CBD will provide special benefit
district improvements and activities, including marketing and promotions, district identity,
beautification, possible transportation related activities and other special benefit programs to
parcels within the boundaries of the proposed district.
The proposed Downtown Arcadia CBD serves to improve the individual parcels, attract new
customers to their businesses, increase sales, increase occupancies and enhance the benefitting
individual parcels within the CBD. The proposed CBD seeks to fund the special benefits that will
be provided over the next fifteen years, based upon keeping the greater Downtown Arcadia
area clean, safe, orderly, attractive, well marketed with special events and programs, and
increase commerce within the boundaries.
Boundaries:
The boundaries shall include approximately 12 whole or partial blocks with 108 parcels. The
District is generally bounded by Santa Anita Avenue on the west, on 2nd Avenue on the east, by
St. Joseph on the north and by California Street on the south. See Section 2, pages 9 - 10.
Budget:
The total first year Downtown Arcadia CBD budget based upon assessable individual parcel
owners for FY 13/14, will be $ 117,515.00. Please see Section 3 for a breakdown of the
categories of special benefit services and their allocation of services by Benefit Zone.
Improvements Activities and Services of the Downtown Arcadia CBD Plan:
There are five basic categories of special benefit services that will be funded with this
Downtown Arcadia CBD. All of these services will confer a special benefit to the individual
parcels within the Downtown Arcadia CBD. The categories of special benefits are as follows:
1. District Identity: These services include the branding of the Downtown Arcadia area,
marketing and promotions, newsletter, public relations, media relations, social media,
publicity, special events, web site development and maintenance, public space
development and holiday decorations. These services equal $ 56,000 or 48% of the first
year annual budget of the new district.
3
2. Sidewalk Operations, Beautification and Order: This includes all sidewalk and gutter
cleaning services, sidewalk steam cleaning services, as well as enhanced services to
beautify the district. Sidewalk operations services total $ 25,000 or 21% of the first year
annual budget of the new CBD.
3. Enhanced Residential Improvements : These services include, but are not limited to:
enhanced beautification in blocks with high density of condos, public space
development, implementation of pet related services and administrative costs. These
services currently generate no assessments since there are no residential condominiums
within the boundaries of the proposed CBD. However, with the opening of the
Downtown Arcadia Gold Line Station in 2015, we anticipate rapid growth of this sector
in and around the Gold Line Station and throughout the proposed CBD. The largest
growth in Downtown is anticipated in the next 15 years to be in market rate multi-
family housing, whether it be in the form of apartments or residential condominiums.
4. Program Management and Corporate Operations. These services equal $ 32,000 or
27% of the first year annual budget of the new district.
S. Contingency /Reserve. This fund equals $ 4,515 or 4% of the first year annual budget of
the new district. This contingency anticipates a "historic" non - payment rate percentage
of around 2 to 4 %, and any City or County collection fees.
Table 1 — A
Name of Program or
Percent of First Year
Estimated First Year Costs of
Category of Service
Annual Budget
Special Benefit Services
District Identity and Streetscape
o
48/
$ 56,000.00
Improvements
Sidewalk Operations,
21%
$ 25.000.00
Beautification and Order
Enhanced Residential
o%
$ 0
Improvements
Program Management,
27 o
$ 32,000.00
Corporate Operations
Contingency
4%
$4,515.00
Total First Year Budget
100%
$117,515.00
Demands for prioritization of one special benefit need over another within the some category
above will occur year by year. This plan proposes percentages for groups of services with the
intent that they will provide district individual parcels with an understanding of the portion of
the budget allocated to fund those services, while simultaneously giving the property owners
and businesses an understanding of the proportional benefit they will receive. Actual costs by
M
category may vary from year to year; per service category, so budget line items may vary by up
to 10% during the life of this plan.
Method of Financing:
The financing of the Downtown Arcadia CBD is based upon a the levy of special assessments
upon real property that receive special benefits from the improvements and activities. See
Section 4 for assessment methodology and compliance with Proposition 218. There will be four
factors used in the determination of proportional benefit to the parcels in the CBD. Those four
factors are:
• Linear frontage
• Lot size or the footprint of the parcel
• Building square footage (excluding parking structures built within the building that
predominantly serve the tenants of the building and are not open to the public); and
• Residential condos within the District
The following data represents the foundation of the assessments that will generate the revenue
to fund the Downtown Arcadia CBD: (verified as of March 9t ", 2013);
Building Square Footage: 583,905 sq. feet
Gross Lot Size: 1,189,825 sq. feet
Gross Linear Frontage: 12,671 linear feet
Residential Condos: Currently, there are no residential condo developments
within the Downtown Arcadia CBD boundaries. In the
future, when development occurs around the Gold Line
station, they will be assessed at the rate of $0.20 per
square foot for their verifiable building square footage per
parcel. Commercial condos will be treated as commercial
buildings being assessed for their proportion of linear
frontage, lot size and building square footage. For a more
detailed explanation of residential assessments and
services please see Section 3, pages 11 -16.
Benefit Zones:
State law and the State constitution, Article XIIID require that special assessments be levied
according to the special benefit each individual parcel receives from the improvements. There
will be one benefit zone in the Downtown Arcadia CBD.
Annual Costs:
Annual assessments are based upon an allocation of program costs by assessable linear
frontage, (assessable on all sides of the parcels that receive benefit); PLUS lot or parcel square
k,
footage; PLUS assessable building square footage, and in the case of residential condos, by
building square footage for that condo unit only. The residential condo owners are assessed
differently since they are, in essence, acquiring air rights with the condos and linear frontage
and lot size is not relevant to their parcels. This alternate assessment methodology is created
to respond to their special needs as homeowners within this growing Downtown district. All
four property variables will be used in the calculation of the annual assessment.
The FY 2013 -14 year annual assessments per property variable are as follows:
Linear frontage costs: $ 1.973 per linear foot per year
Building Square footage costs: $ 0.09679 per square foot per year
Lot Size costs: $ 0.030256 per square foot per year
Residential Condo costs: $ 0.20 per square foot of parcel unit square footage
Assessment District Revenue Generation from each property variable: (rounded off)
Linear Frontage: $ 25,000.00
Building Square Footage: $ 56,515.00
Lot Size: $ 36,000.00
Residential Condos $ 0
Total: $ 117,515.00
Cap.
The Downtown Arcadia CBD budget and assessments may be subject to changes in the
Consumer Price Index (CPI) for the Los Angeles /Long Beach Metro Area from February to
February, with annual increases not to exceed 5% per year. Increases will be determined by the
Owners' Association /District Management Corporation and will vary between 0% and 5%
annually. The Owners Association /Management Corporation will be the non - profit corporation
comprised of CBD business and property owners, which will oversee the operations of the CBD
on a day to day basis, under contract with the City. Changes in land use, development of empty
parcels, conversion of tax exempt to profitable land uses, demolition of existing buildings, and
creation of new parcels through new building or residential condo development may alter the
budget from year to year based upon the changes in the building square footage of an
individual parcels. Since linear frontage and lot size normally are not altered in the
redevelopment of a site, the only changes realized in the CBD will be through the building
square footage. In addition, changes in the budget may occur due to the conversion of single
parcels to multiple parcels due to the construction of residential or commercial condos.
D
Bonds
The District will not issue any bonds related to any program.
District Formation:
The District formation and modification requires a submission of petitions from property
owners representing more than 30% of the total assessments.
Once the City verifies the petitions totaling a minimum of 30% or $35,255.00 in assessment
contribution to the District, the City Council may adopt a Resolution of Intention to mail out
ballots to all affected property owners. The City will hold a public hearing and tabulate the mail
ballots. The Downtown Arcadia CBD will be formed if the weighted majority of all returned mail
ballots support the District formation and if the City Council adopts a resolution of formation to
levy the assessments on the benefiting parcels. We anticipate that this process will be
completed between July and December of 2013.
Duration:
The Downtown Arcadia CBD shall have a fifteen -year term which shall commence on January 1,
2014 and expire on December 31, 2028.
Governance:
Pursuant to the City of Arcadia Community Benefit District Ordinance and Section 36600 of the
California Streets and Highway Code, a District Management Corporation or Owners'
Association, will review District budgets and policies annually within the limitations of the
Management District Plan. The Management Corporation will file Annual Reports with the City
of Arcadia (City) and will oversee the day -to -day implementation of services as defined in the
Management District Plan.
Section 36614.5 states:
The "Owners' association" means a private nonprofit entity that is under
contract with a city to administer or implement activities and improvements
specified in the management district plan. An owners' association may be an
existing nonprofit entity or a newly formed nonprofit entity. An owners'
association is a private entity and may not be considered a public entity for
any purpose, nor may its board members or staff be considered to be public
officials for any purpose."
7
Section 2
Downtown Arcadia CBD Boundaries
Boundaries: The following text will define the boundaries of the Downtown Arcadia CBD.
General Description of the Proposed Boundaries: Parcels in the commercial corridors of the
Downtown Arcadia CBD will include as follows:
■ Northern Boundary: Starting at the parcels at the southwestern and
southeastern corners of the intersection of St. Joseph Street and 1St Avenue, running
south;
■ Southern Boundary: Starting at the parcels at the northwestern and
northeastern corners of the intersection of California Street and 1St Avenue, running
north;
■ Eastern Boundary: Starting at the parcels at the northwestern and
southwestern corners of the intersection of 2nd Avenue and Huntington Drive, running
westward;
■ Western Boundary: Starting at the parcels at the southeastern and
northeastern corners of the intersection of Huntington Drive and Santa Anita, running
eastward;
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Section 3
District Improvement and Activity Plan
Process to Establish the Improvement and Activity Plan /Outreach Efforts:
Since summer of 2012 business and property owners in Downtown Arcadia have met to discuss
the advantages of creating this Downtown community benefits district. Commencing in the
summer of 2012, a survey was sent to property owners in the proposed CBD area to ascertain
their level of support for the establishment of this assessment district. In addition to the
survey, a Downtown Arcadia Steering Committee was created and met on the following dates:
(Special thanks to Scott Hettrick of the Arcadia Chamber of Commerce for hosting all of the CBD
Steering Committee meetings);
• July 11th, 2012 CBD effort launched at the Chamber of Commerce office.
• August 7th, 2012
• September 12th, 2012
• October 10th, 2012
• October 24th, 2012
• November 20th — Presentation on results of the survey to the Arcadia City Council
• January 9th, 2013
• February 14th, 2013 — presented with 5 options for services and costs
• March 6th, 2013 — selection of the option that would adequately fund the special benefits
of the CBD, Management Plan approved.
Explanation of Special Benefit Services:
All of the improvements and activities detailed below are provided only to properties defined
as being within the boundaries of the Downtown Arcadia CBD, and which improvements and
activities will provide special benefit to the owners of those properties. No improvements or
activities will be provided to properties outside the Downtown CBD boundaries. All benefits
derived from the assessments outlined in this Management District Plan fund services directly
benefiting the property owners in this community benefit district, inasmuch as all services will
be provided to the properties defined as being within the District boundaries and no services
will be provided outside the District boundaries.
10
As part of this process, the City will articulate which general benefits are currently being
provided to the Downtown Arcadia property owners from the current general fund. The
frequency of these general benefits may change from year to year and time to time based upon
budget constraints. However, City general benefits will not be withdrawn from the Downtown
CBD unless they are withdrawn by an equal amount City wide. The CBD funded special benefits
will not replace City funded general benefits, but rather will provide special benefits to parcel
owners over and above the general benefits provided by the City of Arcadia.
All services funded by the assessments outlined in the Management District Plan are intended
to directly benefit the property, business owners and residents within this area to support
increased commerce, business attraction and retention, retained and increased commercial
property rentals, enhanced safety and cleanliness in the CBD, improved district identity, and
eventually specialized beautification and enhanced programs for the condo residential unit
parcels within the District.
The total improvement and activity plan budget for 2013 -14, which is funded entirely by
property assessments within the CBD boundaries, is projected to be $ 117,515.00. The costs of
providing each of the budget components was developed from actual experience obtained in
providing these same services in similar districts throughout the State of California.
The Downtown Arcadia CBD Steering Committee has prioritized the following categories of
special benefit services for the new District. The categories of special benefit services set forth
the intent of the budget category, but also gives the District Management Corporation flexibility
to allocate the services based upon the changing needs of the District from year -to -year within
each budgeted category.
Improvements Activities and Services of the Downtown Arcadia CBD Plan:
There are five basic categories of special benefit services that will be funded within the
Downtown Arcadia CBD. All of these services are designed to confer a special benefit to the
individual parcels within the Downtown Arcadia CBD over and above the General Benefits
already received. The categories of special benefits are as follows:
1. District Identity: These services include the branding of the Downtown Arcadia area,
marketing and promotions, newsletter, public relations, media relations, social media,
publicity, special events, web site development and maintenance, public space develop
and holiday decorations. These services equal $ 56,000 or 48% of the first year annual
budget of the new district.
2. Sidewalk Operations, Beautification and Order: this includes all sidewalk and gutter
cleaning services, sidewalk steam cleaning services, as well as enhanced services to
beautify the district. Sidewalk operations services total $ 25,000 or 21% of the first year
annual budget of the new CBD.
3. Enhanced Residential Improvements : These services include, but are not limited to:
enhanced beautification in blocks with high density of condos, public space
development, implementation of pet related services and administrative costs. These
II
services currently generate no assessments since there are no residential condominiums
within the boundaries of the proposed CBD. However, with the opening of the
Downtown Arcadia Gold Line Station in 2015, we anticipated rapid growth of this sector
in and around the Gold Line Station and throughout the proposed CBD. The largest
growth in Downtown is anticipated over the next 15 years will be in market rate multi-
family housing, whether it be in the form of apartments or residential condominiums.
4. Program Management and Corporate Operations. These services equal $ 32,000 or
27% of the first year annual budget of the new district.
S. Contingency /Reserve. This fund equals $ 4,515 or 4% of the first year annual budget of
the new district. This contingency anticipates a "historic" non - payment rate percentage
of around 2 to 4 %, and any City or County collection fees.
Table 3 — A
Name of Program or
Percent of First Year
Estimated First Year Costs of
Category of Service
Annual Budget
Special Benefit Services
District Identity and Streetscape
o
48/
$ 56,000.00
Improvements
Sidewalk Operations
21%
$ 25.000.00
Beautification and Order
Enhanced Residential
0%
$ 0
Improvements
Program Management,
27 o
$ 32,000.00
Corporate Operations
Contingency
4%
$4,515.00
Total First Year Budget
100%
$117,515.00
12
The following categories of special benefit services shall only be provided to parcels within the
District.
1. DISTRICT IDENTITY/VISITOR ATTRACTION: $ 56,000.00 48%
Examples of these special benefit services and costs include, but are not limited to:
• Business attraction and expansion
• Web site development and updating
• Brochures
• Tourist related activities
• Marketing
• Advertising
• Special Events
• Logo development
• Social media
• Signage linking the Gold Line station to the rest of the CBD properties-
• Public relations
• In the future, with the development of new buildings and residential condos, possible
transportation /shuttle service between various stops and the Arcadia Metro Station
13
2. SIDEWALK OPERATIONS, BEAUTIFICATION, AND ORDER: $ 25,000.00 21%
All of these services will not replace or reduce current city services but will rather enhance
services above their current general benefit level. Costs may include, but are not limited to:
• Regular sidewalk and gutter sweeping
• Special event management, security and clean up
• Tree and vegetation planting and maintenance
• Public space development and maintenance,
• Periodic sidewalk steam cleaning
3. ENHANCED RESIDENTIAL IMPROVEMENTS: $ 0 0%
Residential condos will be assessed separately due to their unique parcel status and special
benefit needs in the district. When they are constructed within the boundaries of the CBD,
residential condos blocks will have the following special benefit services conferred on the
frontage their parcels. These services include, but are not limited to:
• Installation, stocking and upkeep of pet waste distribution stations on the frontage
adjacent to the high concentrations of residential condo individually assessed parcels,
• Enhancement and beautification of sidewalks on the frontages adjacent to the high
concentrations of residential individually assessed parcels,
• Installation of hanging plants, and enhanced upkeep in the sidewalks surrounding these
frontages adjacent to these residential condos,
• Other services requested by the residents that confer special benefit to the areas directly
adjacent to the parcels with high concentrations of residential condos,
• Proportional share of the Administrative and Contingency costs to cover the oversight of
the Enhanced beautification special benefit services.
4. PROGRAM MANAGEMENT AND CORPORATE OPERATIONS: $ 32,000.00 27%
Examples of these special benefit services and costs include, but are not limited to:
• Staff and administrative costs
• Directors and Officers and general liability Insurance
• Office related expenses
• Rent
• Financial reporting and accounting
• Legal work
S. CONTINGENCy/RESERVE: $ 4,515.00 4%
Examples of these special benefit services and costs include, but are not limited to:
■ Delinquencies
• Reserves
• City and county administration costs
14
Fifteen -Year Operating Budget:
A projected fifteen -year operating budget for the Downtown Arcadia CBD is provided below.
The projections are based upon the following assumptions:
• Assessments may be subject to changes in the Los Angeles County Consumer Price Index
(CPI), with annual increases not to exceed 5% per year. Increases will be determined by
the District Management Corporation and in no case shall annual increases exceed 5%
per year.
Fifteen -Year Projection of Maximum Assessment for the
Downtown Arcadia CBD*
Table 3 — B
Total $117,515.00 $123,390.75 $129,560.29 $136,038.30 $142,840.22 $149,982.23 $157,481.34
FY1
FY2
FY3
FY4
FY5
FY6
FY7
District Identity,
$56,000.00
$58,800.00
$61,740.00
$64,827.00
$68,068.35
$71,471.77
$75,045.36
Visitor Attraction
$105,847.77
Visitor Attraction
Sidewalk Operations,
Sidewalk Operations,
Beautification
$25,000.00
$26,250.00
$27,562.50
$28,940.63
$30,387.66
$31,907.04
$33,502.39
and Order
$42,758.48
$44,896.41
$47,141.23
$47,253.47
and Order
Program Management,
$32,000.00
$33,600.00
$35,280.00
$37,044.00
$38,896.20
$40,841.01
$42,883.06
Corp. Operations
$49,642.50
$52,124.63
$54,730.86
$57,467.40
$60,340.77
$60,484.44
Corp. Operations
Contingency
$4,515.00
$4,740.75
$4,977.79
$5,226.68
$5,488.01
$5,762.41
$6,050.53
Total $117,515.00 $123,390.75 $129,560.29 $136,038.30 $142,840.22 $149,982.23 $157,481.34
Total $165,355.41 $173,623.18 $182,304.34 $191,419.55 $200,990.53 $211,040.06 $221,592.06 $222,119.66
15
FY8
FY9
FY10
FY11
FY12
FY13
FY14
FY15
District Identity,
$78,797.62
$82,737.50
$86,874.38
$91,218.10
$95,779.00
$100,567.95
$105,596.35
$105,847.77
Visitor Attraction
Sidewalk Operations,
Beautification
$35,177.51
$36,936.39
$38,783.21
$40,722.37
$42,758.48
$44,896.41
$47,141.23
$47,253.47
and Order
Program Management,
$45,027.21
$47,278.57
$49,642.50
$52,124.63
$54,730.86
$57,467.40
$60,340.77
$60,484.44
Corp. Operations
Contingency
$6,353.06
$6,670.71
$7,004.25
$7,354.46
$7,722.18
$8,108.29
$8,513.71
$8,533.98
Total $165,355.41 $173,623.18 $182,304.34 $191,419.55 $200,990.53 $211,040.06 $221,592.06 $222,119.66
15
Section 4
Assessment Methodology
The Downtown Arcadia CBD is a property -based benefit assessment district being established
pursuant to Ordinance # 2306 of Article 1 of the Arcadia Municipal Code, Chapter 14 on
Community Benefit Districts, adopted unanimously by the Arcadia City Council on January 15,
2013(date of second reading and adoption) . Due to the special benefit assessment nature of
assessments levied within a CBD, program costs are to be distributed amongst all identified
specially benefiting properties based on the proportional amount of special program benefit
each property is expected to derive from the assessments collected. The Arcadia CBD
Ordinance refers to the concept of relative "benefit" received from CBD funded programs and
activities versus amount of assessment paid. Only those properties expected to derive special
benefits from CBD funded programs and activities may be assessed and only in an amount
proportional to the relative special benefits expected to be received.
The method used to determine special benefits derived by each identified property within a
CBD begins with the selection of a suitable and tangible basic benefit unit. For property related
services, such as those proposed in the Downtown Arcadia CBD, the benefit unit may be
measured in terms of in linear feet of primary street frontage or parcel size in square feet or
building size in square feet or number of building floors or proximity to major corridors in
average linear feet, or any combination of these factors.
Based on the factors described above such as geography and nature of programs and activities
proposed, an assessment formula is developed which is derived from a singular or composite
basic benefit unit factor or factors. Within the assessment formula, different factors may be
assigned different "weights" or percentage of values based on their relationship to
programs /services to be funded.
Next, all program and activity costs, including incidental costs, District administration and other
program costs, and benefit zones are estimated. There are two benefit zones in the proposed
Downtown Arcadia CBD. Proposition 218 requires that indirect or general benefits not be
incorporated into the assessment formula and levied on the District properties in property
based assessment Districts; only direct or "special" benefits and costs may be considered.
Indirect or general benefit costs, if any, must be identified and, if quantifiable, calculated and
factored out of the assessment cost basis to produce a "net" cost figure.
In addition, tax exempt, non - profit and other public or government owned properties are not
exempt from being assessed and if special benefit is determined to be conferred upon
government owned properties, then those properties must be assessed in proportion to the
special benefits conferred in a manner similar to privately owned property assessments.
16
Based on the foregoing, the value of a basic benefit unit or "basic net unit cost" can be
computed by dividing the total amount of estimated net program costs by the total number of
benefit units. Then the amount of assessment for each parcel can be computed by multiplying
the Net Unit Cost times the number of Basic Benefit Units per parcel. This is known as
"spreading the assessment" or the "assessment spread" in that all costs are allocated
proportionally or "spread" amongst all properties within the CBD.
The method and basis of spreading program costs varies from one CBD to another based on
local geographic conditions, types of programs and activities proposed, and size and
development complexity of the District. For example, CBDs may require other benefit zones to
be identified to allow for a tiered assessment formula for variable or "stepped- down" benefits
derived.
Here, program costs spreading variables include benefit zones, linear frontage, lot or parcel size
and building square footage, and residential condo parcels. During the first year of operation,
approximately:
Assessment District Revenue Generation from each property variable: (numbers rounded off)
Linear Frontage $ 25,000.00
Building Square Footage: $ 56,515.00
Lot Size: $ 36,000.00
Residential Condos $ 00
Total: $ 117,515.00
The FY 2013 -14 year annual assessments per property variable are as follows:
Linear frontage costs: $ 1.973 per linear foot per year
Building Square footage costs: $ 0.09679 per square foot per year
Lot Size costs: $0.030256 per square foot per year
Residential Condo costs: $0.20 per square foot of parcel unit square footage
(future construction)
17
Table 4 -A
Special Benefit Services, Funding Source, Costs and Percentage of Annual Budget
Assumption on generation of revenues per property variable:
Service
Funded by Property Variables
District Identity and
Streetscape
Funded by building square footage assessments
Improvements
Sidewalk Operations
Funded by linear frontage assessments
Enhanced Residential
Funded by building square footage of residential condos once
Improvements
constructed
Admin /Corp Operations
Funded by lot size assessments
Contingency
Funded by lot size assessments
Building Square Footage Defined:
Building square footage is defined as gross building square footage throughout the CBD.
Building square footage assessments will fund the District Identity /Marketing and Promotions
component of the CBD. Building square footage is the one property variable that will grow over
the course of the life of the CBD since the District as a whole has a less than % to 1 ratio of
improvements (building square footage) to lot size. The percentage of building square footage
that is dedicated to private or internal tenant parking needs has been deducted from the gross
building square footage. Only parking structures that are open to the public and charge fees to
the general public on a regular basis will have their building square footage assessed as any
other commercial building. Apartment buildings within the boundaries of the CBD will be
assessed as a commercial building. Building square footage data was obtained from the County
Assessor's property records and reviewed by staff at New City America.
The building square footage will fund the costs of all "District Identity and Streetscape
Improvement special benefits funded from the CBD.
Lot Square Footage Defined:
Lot square footage is defined as the total amount of area within the borders of the parcel. Lot
size square footage will fund: 1) program and corporate operations services costs and; 2)
contingency cost. The borders of a parcel are defined on the County Assessor's parcel maps and
were confirmed by New City America staff and City of Arcadia.
IN
Linear Frontage Defined:
Individual parcels will be assessed for all sides that receive benefit from the Sidewalk
Operations portion of the budget. Linear frontage is assessed based upon the anticipated
frequency of sidewalk operations services that will be required for each benefitting parcel.
Linear frontage assessments will fund the costs of Sidewalk Operations services in each
respective Benefit Zone.
Linear front footage data was obtained from the County Assessor's parcel maps and
reviewed by staff at New City America, and finally verified by the City of Arcadia.
Commercial Condominium Parcels Defined:
Ground floor commercial condominiums will be treated like independent "mini" commercial
buildings and assessed based on their divided building area, the footprint of land they cover,
and the amount of direct street frontage towards the exterior of the building.
Residential Condo Unit Parcels Defined:
Condo Residential Unit building square footage is defined as the livable building square footage
within the walls of the condo residential unit parcel. They are included in a special category to
designate their unique special benefits relative to the other commercial parcels within the
Downtown Arcadia CBD. Unlike the other commercial parcels in the district, including
commercially operated apartment buildings, residential condo parcels are assessed for building
square footage only, and are not assessed for linear frontage and lot square footage.
Ground floor commercial condos or office condos would be assessed just as other commercial
properties.
Residential condo individually assessed parcels are assessed as a separate category. These
residential condo individual parcels will be assessed for their building square footage only at the
rate of $0.20 per square foot per year, commencing the first year of the new District. The
rationale for assessing residential condos only for the building square footage rate is provided
below.
Residential condo individually assessed parcels are assessed differently than multi -unit, for -rent
apartment buildings, due to the frequency of special benefit services required by each parcel as
described below. The multi -unit apartment buildings are commercial properties in which the
tenant and landlord have an economic relationship as opposed to residential condo buildings
where individual property owners own separate air space parcels on a single lot. Residential
apartment buildings can be bought or sold just as like commercial buildings whereas residential
condo individual units are separately owned and must be individually bought and sold.
Distinctions between residential apartment buildings with tenants and residential condominium
building with individual unit owners are as follows:
19
1. The Davis Sterling Act establishes rules and regulations for residential condo owners
based upon "separate interests" (i.e. ownership rights), as opposed to renters who
only have a possessory interest.
2. Generally, residential condo unit owners demonstrate greater care for their property
and concerns about quality of life issues due to their investment in real estate.
3. Residential owners have the right to vote in a Proposition 218 hearing, tenants do
not have that right.
4. Residential condo owners are required to contribute to a legally established
Homeowners Associations to oversee building maintenance; tenants are not
The assessment methodology has been written to confer special benefits to residential condo
individual assessed parcels since residential condo owners have unique investment backed
expectations about the care and maintenance of the building and its surroundings compared to
the interest of residential tenants who have a possessory not an ownership interest. The
residential condos' special assessment methodology ensures that a fund will be established to
maintain high levels of special benefit services that apply directly and proportional to the blocks
that demand virtually seven days per week, 365 days per year special benefits.
As redevelopment of various parcels occurs within the boundaries of the CBD in the next 15
years, building square footage may be removed, and then added onto that parcel through the
process of redevelopment. The Management Corporation operating the CBD will ensure that
the removal or addition of building square footage is reported to the city and county annually
through their annual report on any changes to the assessment district. The parcel costs will be
lowered, or rise accordingly, based upon the activity within that parcel — from year to year.
In future years, the assessments for the special benefits bestowed upon the included CBD
parcels may change in accordance with the assessment methodology formula listed in this
Management District Plan and Engineer's Report provided the assessment rate does not
change. If the assessment formula changes, then a Proposition 218 ballot will be required for
approval of the formula changes.
Exemptions
No benefitting parcels, regardless of taxable or tax - exempt property tax status, will be exempt
from the assessments funding the special benefit services of the Downtown Arcadia CBD.
Special benefit services will not be provided to any parcels outside of the boundaries of the
district. Publicly owned property will be assessed the same as privately owned parcels.
Calculation of Assessments
The proportionate special benefit derived by each identified parcel shall be determined in a
relationship to the entirety of the improvement or the maintenance and operation expenses of
an improvement or for the cost of property service being provided. Per California Constitutional
Amendment Article XIII D, Section 2(i), "Special Benefit ", means a particular and distinct benefit
over and above general benefits conferred on a real property located in the district or to the
public at large.
20
No assessment will be imposed on any parcel that exceeds the reasonable cost of the
proportional special benefits conferred upon that parcel. Only special benefits are assessable
and these benefits must be separated from any general benefits. A general benefit is defined as
a benefit to properties in the surrounding community or a benefit to the public in general
resulting from improvement, activity or service to be provided by the assessment levied. For
example, CBD property owners will derive benefit from District Identity and marketing and
promotional activities, sidewalk cleaning and oversight of these services, however the general
public will also benefit from the delivery of these special benefit services.
The special benefits funded by this new Downtown Arcadia CBD will be over and above existing
City of Arcadia baseline service levels in the commercially zoned parcels and will serve to
increase tenancies, increase commerce, increase economic viability and fund a system of
cleanliness and beautification over and above current service levels.
Properties are assessed as defined on the County Assessor's most current parcel maps and the
latest property tax rolls.
The preceding methodology is applied to the database of parcels within the District. The
process for compiling the property database includes the following steps:
• A report was submitted to the City Manager's office using the data obtained from
the Los Angeles County Tax Assessors office.
• A list of properties to be included within the Downtown Arcadia CBD is provided in
Section 7.
A detailed explanation of the special benefit assessment rationale is made in the attached
Engineer's Report.
The Calculation of Assessment for each parcel in the Downtown Arcadia CBD is as follows:
CBD Parcel assessment
The annual assessment method for all parcels and ground floor commercial condominiums is:
Total Street Frontage X $1.973 per linear foot
plus
Total Lot Square Footage X $0.030256per square foot
plus
Total Building Square footage X $0.096790 per square foot
Equals
TOTAL PARCEL ASSESSMENT
21
Residential Condo Assessment:
The annual assessment method for a residential condo is:
Total Residential Unit Building Square footage X $0.20 per Square Foot
Equals
TOTAL RESIDENTIAL CONDO UNIT ASSESSMENT
Table 4 - B
Database for Downtown Arcadia CBD:
Assessable property variables as of March 1, 2013
Linear Frontage
Lot Square
Building Square
Condo Residents Unit
Total
Footage Total
Footage Total
Parcels, Building Square
FY4
FY5
Footage to be assessed
12,671 linear feet
1,189,825 sq. ft.
583,905 sq. ft.
0 sq. feet
Maximum Assessment
Assessments will be subject to changes in the Los Angeles County Consumer Price Index (CPI),
for all urban consumers, annual increases not to exceed 5% per year. Increases will be
determined by the CBD District Management Corporation and may vary between 0% and 5% in
any given year. The maximum the assessments can be increased is 5% over the previous fiscal
year's base assessments. Not implementing the increase for one year does not give the District
Management Corporation the authority to accumulate increases above 5% within any given
fiscal year. The following projections illustrate a potential 5% annual increase.
Table 4 - C
Maximum Assessments by Property Variable
Projected Assessment
FY1
FY2
FY3
FY4
FY5
Linear Frontage
$
1.9730
$
2.0717
$
2.1752
$
2.2840
$
2.3982
Building Sq. Ft.
$
0.09679
$
0.10163
$
0.10671
$
0.11205
$
0.11765
Lot Square Footage
$
0.030256
$
0.031769
$
0.033357
$
0.035025
$
0.036776
Condo Bldg. Sq. Ft.
$
0.20000
$
0.21000
$
0.22050
$
0.23153
$
0.24310
Projected Assessment
FY6
FY7
FY8
FY9
FY10
Linear Frontage
$
2.5181
$
2.6440
$
2.7762
$
2.9150
$
3.0608
Building Sq. Ft.
$
0.12353
$
0.12971
$
0.13619
$
0.14300
$
0.15015
Lot Square Footage
$
0.038615
$
0.040546
$
0.042573
$
0.044702
$
0.046937
Condo Bldg. Sq. Ft.
$
0.25526
$
0.26802
$
0.28142
$
0.29549
$
0.31027
22
Projected Assessment
FY11
FY12
FY13
FY14
FY15
Linear Frontage
$
3.2138
$
3.3745
$
3.5432
$
3.7204
$
3.9064
Building Sq. Ft.
$
0.15766
$
0.16554
$
0.17382
$
0.18251
$
0.19164
Lot Square Footage
$
0.049284
$
0.051748
$
0.054335
$
0.057052
$
0.059905
Condo Bldg. Sq. Ft.
$
0.32578
$
0.34207
$
0.35917
$
0.37713
$
0.39599
Budget Adjustments
Annual budget surpluses, if any, will be rolled into the following year's budget. Assessments
will be set annually, within the constraints of the CPI or land use changes. Revenues from the
delinquent accounts may be expended in the year they are received. If the District is not
renewed, any remaining funds will be returned to property owners in the proportion by what
each property owner paid.
If after the initial term the District decides to renew and if there is money left over from the
previous term, the balance of remaining funds will be rolled over into the renewed District.
These "rolled over" funds may only be used within the boundaries of the renewed district and
cannot be expended for activities, services, or improvements in an area expanded beyond the
original District. However, the rolled over funds may be used to finish District Management
Corporation activities in the original district.
Time and Manner for Collecting Assessments
The Downtown Arcadia CBD assessments will appear as a separate line item on annual property
tax bills prepared by the County of Los Angeles. The assessments shall be collected at the same
time and in the same manner as for the ad valorem property tax paid to the County of Los
Angeles. These assessments shall provide for the same lien priority and penalties for
delinquent payment as is provided for the ad valorem property tax.
Any delinquent assessments owed for the first year will be added to the property tax roll for the
following year together with any applicable interest and penalties. The "property owner"
means any person shown as the owner /taxpayer on the last equalized assessment roll or
otherwise known to be the owner /taxpayer by the City.
Disestablishment
California State Law, Section 36670 provides for the disestablishment of a District. Provisions
for annual disestablishment of the CBD are provided for in the local CBD ordinance through
referral to Section 36600 of the California Streets and Highway Code. Property owners
dissatisfied with the results, management or quality of the services may petition the City
Council to disestablish the CBD, in the same method in which they petitioned the City Council to
establish the District. Section 36670 states:
"2) During the operation of the district, there shall be a 30- dayperiod each
year in which assessees may request disestablishment of the district. The
first such period shall begin one year after the date of establishment of the
district and shall continue for 30 days. The next such 30 -day period shall
23
begin two years after the date of the establishment of the district. Each
successive year of operation of the district shall have such a 30 -day period.
Upon the written petition of the owners of real property or of businesses in
the area who pay 50 percent or more of the assessments levied, the city
council shall pass a resolution of intention to disestablish the district.
The city council shall notice a hearing on disestablishment.
(b) The city council shall adopt a resolution of intention to disestablish
the district prior to the public hearing required by this section. The
resolution shall state the reason for the disestablishment, shall state the
time and place of the public hearing, and shall contain a proposal to dispose
of any assets acquired with the revenues of the assessments levied within the
property and business improvement district. The notice of the hearing on
disestablishment required by this section shall be given by mail to the
property owner of each parcel or to the owner of each business subject to
assessment in the district, as appropriate. The city shall conduct the
public hearing not less than 30 days after mailing the notice to the property
or business owners. The public hearing shall be held not more than 60 days
after the adoption of the resolution of intention."
Upon the termination of the previous District, any remaining revenues shall be transferred to
the renewed District, if one is established, pursuant to Streets and Highways Code Section
36660(b). Unexpended surplus funds will be returned to property owners based upon each
parcels percentage contribution to the previous fiscal year's assessments if the District is not
renewed.
Government Assessments
The Downtown Arcadia CBD Management Plan assumes that the City of Arcadia, the Successor
Agency and other government entities will pay assessments for the public property within the
boundaries of the District. Article XIII D, Section 4 of the California Constitution was added in
November of 1996 to provide for these payments.
Parcels owned by the City of Arcadia, controlled by the Successor agency, the State of
California, the Arcadia City Unified School District, and the County of Los Angeles shall receive
benefits, commensurate with the assessments paid into the Downtown Arcadia CBD. The
publicly owned parcels are presumed to benefit equally to the privately owned parcels for the
special benefits provided.
Future Development
As a result of continued development, the District may experience the addition or subtraction
of assessable commercial or residential building footage for parcels included and assessed
within the District boundaries. The modification of parcel improvement assessed within the
District may then change upwards or downwards the amount of total building square footage
assessment for these parcels.
In the future years, the assessments for the special benefits bestowed upon the included CBD
parcels may change in accordance with the assessment methodology formula listed in the
Management District Plan and Engineer's Report provided the assessment rate does not
24
change. If the assessment formula changes, then a Proposition 218 ballot will be required to
approve the formula changes.
Table 4 - D
Government Owned Parcels in the
Downtown Arcadia CBD
25
Site
Annual
APN Legal Owner
#
Site Street
Assessment
Percent
5773 010 90( Arcadia City
*no Site Address*
$957.87
0.8%
5773 010 90] Arcadia City
*no Site Address*
$681.40
0.6%
5773 012 90] Arcadia City
*no Site Address*
$2,384.89
2.0%
5773 012 90d- Arcadia City
*no Site Address*
$295.31
0.3%
TOTAL
$4,319.46
3.7%
5773 006 91] Los Angeles- Pasadena Metro Blue
29
E Santa Clara St
$2,226.79
1.9%
5773 006 91d- Los Angeles- Pasadena Metro Blue
29
E Santa Clara St
$944.02
0.8%
5773 006 91z Los Angeles- Pasadena Metro Blue
*no Site Address*
$3,000.83
2.6%
TOTAL
$6,171.65
5.3%
5773 014 91] Redevelopment Agency Of Arcadia
*no Site Address*
$329.07
0.3%
25
Section 5
District Rules and Regulations and Governance
There are no specific rules and regulations prescribed for the proposed Downtown Arcadia
Community Benefit District Management Corporation except that it will adhere to the open
meeting provisions of the Ralph M. Brown Act and will seek to be as open and transparent to
the CBD assessees and the public at large as is reasonably possible.
Pursuant to the City of Arcadia Community Benefit District Ordinance and Section 36600 of the
California Streets and Highway Code, a District Management Corporation or Owners'
Association, will review District budgets and policies annually within the limitations of the
Management District Plan. The Management Corporation will file Annual Reports with the City
of Arcadia (City) and will oversee the day -to -day implementation of services as defined in the
Management District Plan. Section 36614.5 states:
"The "Owners' association" means a private nonprofit entity that is under
contract with a city to administer or implement activities and improvements
specified in the management district plan. An owners' association may be an
existing nonprofit entity or a newly formed nonprofit entity. An owners'
association is a private entity and may not be considered a public entity for
any purpose, nor may its board members or staff be considered to be public
officials for any purpose."
Bonds:
The District will not issue any bonds related to any program.
Section 6
Implementation Timetable
The Downtown Arcadia CBD is expected to be established and begin implementation of the
Management District Plan on January 1, 2014. Consistent with the local enabling ordinance the
Downtown Arcadia CBD will have a fifteen -year term through December 31, 2028.
26
Section 7
Assessment Roll of Properties Included
27
APN
Annual
5773
012
006
$348.80
Assessment
5773
012
007
$697.60
5773
006 039
$2,811.36
5773
012
008
$744.93
5773
006 056
$3,830.91
5773
012
009
$721.80
5773
006 057
$5,775.70
5773
012
010
$924.38
5773
006 911
$2,226.79
5773
012
011
$1,129.92
5773
006 912
$944.02
5773
012
012
$378.99
5773
006 914
$3,000.83
5773
012
013
$674.95
5773
007 028
$784.16
5773
012
018
$6,380.01
5773
007 031
$754.29
5773
012
022
$4,276.78
5773
007 035
$2,026.03
5773
012
901
$2,384.89
5773
010 001
$790.64
5773
012
902
$295.31
5773
010 002
$437.34
5773
013
015
$1,007.80
5773
010 003
$639.68
5773
013
016
$840.57
5773
010 004
$857.07
5773
013
017
$810.52
5773
010 005
$351.71
5773
013
018
$4,236.08
5773
010 006
$354.73
5773
013
019
$331.96
5773
010 007
$1,699.69
5773
013
020
$817.31
5773
010 008
$648.37
5773
013
021
$653.44
5773
010 009
$699.24
5773
013
022
$517.94
5773
010 010
$593.52
5773
013
023
$770.56
5773
010 011
$954.69
5773
013
024
$706.68
5773
010 012
$620.57
5773
013
025
$658.28
5773
010 013
$161.24
5773
013
026
$808.31
5773
010 014
$743.88
5773
013
027
$498.48
5773
010 015
$629.09
5773
013
028
$803.47
5773
010 018
$505.36
5773
013
029
$756.72
5773
010 019
$1,078.62
5773
013
034
$2,127.57
5773
010 020
$921.44
5773
014
001
$1,278.61
5773
010 021
$1,115.02
5773
014
002
$2,866.57
5773
010 022
$703.87
5773
014
026
$805.97
5773
010 023
$652.57
5773
014
027
$365.03
5773
010 024
$820.89
5773
014
028
$159.00
5773
010 030
$1,807.51
5773
014
029
$1,264.37
5773
010 031
$345.24
5773
014
034
$95.40
5773
010 900
$957.87
5773
014
037
$2,095.66
5773
010 901
$681.40
5773
014
038
$1,736.88
5773
011040
$339.24
5773
014
051
$2,515.43
5773
011042
$1,846.32
5773
014
052
$888.53
5773
011048
$314.88
5773
014
911
$329.07
5773
011049
$666.24
5773
017
001
$291.50
5773
012 001
$1,285.06
5773
017
002
$449.15
5773
012 002
$665.51
5773
017
003
$355.95
5773
012 003
$697.60
5773
017
004
$296.62
5773
012 004
$692.76
5773
017
033
$333.17
5773
012 005
$658.53
5773
017
034
$1,573.44
27
5773
017 039
$1,053.18
5773
018 011
$1,782.04
5773
018 012
$801.02
5773
018 013
$742.11
5773
018 014
$307.58
5773
018 015
$362.00
5773
018 016
$1,440.06
5773
019 008
$200.17
5773
019 009
$621.21
5773
019 010
$643.67
5773
019 011
$522.78
5773
019 025
$2,272.69
5773
020 001
$1,112.52
5773
020 002
$551.43
5773
020 003
$887.19
5773
020 034
$522.87
5773
020 035
$621.03
5773
020 036
$975.93
TOTAL
$117,515.39
RESOLUTION NO. 6982
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ARCADIA, CALIFORNIA, STATING ITS INTENTION TO ESTABLISH
THE DOWNTOWN ARCADIA COMMUNITY BENEFIT DISTRICT AND
TO LEVY AND COLLECT ASSESSMENTS WITHIN SUCH DISTRICT
PURSUANT TO ARCADIA MUNICIPAL CODE SECTION 1961, ET
SEQ; AND APPOINTING A TIME AND PLACE FOR HEARING
OBJECTIONS THERETO
WHEREAS, Arcadia Municipal Code Section 1961, et seq. (the "Law "),
authorizes the City Council of the City of Arcadia establish, for a fifteen year period,
Community Benefit Districts ( "CBD ") to promote the economic revitalization and physical
maintenance of business districts in Arcadia; and
WHEREAS, the Law authorizes the City to levy and collect assessments on real
property within such districts for the purpose of providing improvements and promoting
activities that specially benefit real property within such districts; and
WHEREAS, Articles XIIIC and XIIID of the California Constitution and Section
53753 of the California Government Code impose certain procedural and substantive
requirements relating to the levy of new or increased assessments; and
WHEREAS, written petitions have been submitted by property owners within a
certain area in downtown Arcadia (the "District ") requesting the City Council to initiate
proceedings pursuant to the Law to establish the proposed Downtown CBD for a fifteen
year period; and
WHEREAS, such petitions were signed by property owners in the proposed
Downtown CBD who will pay more than thirty percent (30%) of the assessments
proposed to be levied; and
WHEREAS, no real properties deriving special benefit within the proposed
Downtown CBD will be exempted from payment into the District; and
WHEREAS, a Management District Plan entitled the "Downtown Arcadia CBD
Management District Plan" (the "Management District Plan ") has been prepared and
submitted to the City Clerk, containing all of the information required by the Law,
including a description of the boundaries of the District, the improvements and activities
proposed for the District, and the cost of such improvements and activities.
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF ARCADIA,
CALIFORNIA, DOES HEREBY FIND, DETERMINE AND RESOLVE AS FOLLOWS:
SECTION 1. Pursuant to the Law and Section 36621(a) of the California Streets
and Highway Code, the City Council declares its intention to establish, for fifteen years,
the Downtown Arcadia Community Benefit District and to levy and collect assessments
against lots and parcels of real property within the District commencing with Fiscal Year
2013 -14.
SECTION 2. The City Council hereby approves the Management District Plan,
on file in the office of the City Clerk.
SECTION 3. The City Clerk shall make available to the public for review during
normal business hours the Management District Plan and other documents related to
the District.
SECTION 4, NOTICE IS HEREBY GIVEN that the City Council shall conduct a
public hearing on the establishment of the District and the levy and collection of
assessments for Fiscal Year 2013 -14 on August 6, 2013 at 7 :00 p.m. or as soon
thereafter as the matter may be heard, in the City Council Chambers located at 240
2
West Huntington Drive, Arcadia, CA. At the public hearing, the City Council will
consider all objections or protests, if any, to the proposed establishment of the District
and the proposed assessment. Any interested person may present written or oral
testimony at the public hearing. At the conclusion of the public testimony portion of the
public hearing, the City Clerk shall open and tabulate all ballots received and not
withdrawn as of at that time. Results of the ballot procedure will be announced and,
provided a weighted majority in opposition to the establishment of the District does not
occur, the City Council may then establish the District by adopting a resolution to that
effect.
SECTION 5. The boundaries of the proposed District generally include all
properties listed within the boundaries of the map on file in the Management District
Plan filed in the Clerk's office.
SECTION 6. The proposed activities for the District include marketing and
promotional activities, sidewalk cleaning, private security, beautification, administration
of the services, public space development in the District and maintenance of a
contingency /reserve fund. All proposed services and improvements benefit real property
owners located in the District.
SECTION 7. The assessment proposed to be levied and collected for Fiscal
Year 2013 -14 is $117,515. The amount to be levied and collected for subsequent years
may be increased by an amount not to exceed five (5 %) percent per year in accordance
with increases in the Consumer Price Index for the Los Angeles — Long Beach
metropolitan area.
3
SECTION 8. The City Clerk is hereby authorized and directed to give notice of
the public hearing as provided in Section 53753 of the Government Code and Article
XIIID, Section 4 of the California Constitution.
SECTION 9. The City Clerk shall certify to the adoption of this Resolution.
Passed, approved and adopted this day of , 2013.
ATTEST:
City Clerk
APPROVED AS TO FORM:
() Naae
Stephen P. Deitsch
City Attorney
4
Mayor of the City of Arcadia