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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 111 ��� 111 111 111 11 rT Im _1 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; N 5773 006 W Y911912 it S 5773 006 56 914 57 39 Wheeler St. 901 18 f 773 012 7 8 9 10 11 r 22 34 291 28 271 26 25 24 23 22 212 ° 18 17 5773 013 16 L 15 _.... 25 � ..........................`: -- 5773 019 .... ... _... NCW�C�TY i� 8 9 St. Joseph St. a a 9 1 40 l 5773 011 42 Y24 23 901 21 20 19 18 g00 22 `•. \_ 5773 01Q 4 3 7 8 9 � 3 � 30 Huntington Dr. 911 38 37 29 N 51 1 34 5773014 2 Alta St. ai a' r N Bonita St. 36 35 z 1 California St. CJ Q ro C 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