HomeMy WebLinkAbout6988RESOLUTION NO. 6988
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ARCADIA, CALIFORNIA, APPROVING THE FORMATION OF
THE DOWNTOWN ARCADIA COMMINITY BENEFIT DISTRICT
WHEREAS, Ordinance No. 2306, as set forth in the Arcadia Municipal Code,
Chapter 14, authorizes the Arcadia City Council to establish a community benefit district
( "CBD ") in the City of Arcadia based on the Property and Business Improvement Law of
1994 (California Streets and Highway Code 36600 et seq.), which sets forth the
regulations for establishing a property -based benefit assessment district; and
WHEREAS, the Downtown Arcadia Community Benefit District Steering
Committee ( "Steering Committee ") requested that the City Council establish such a
community benefit district in Downtown Arcadia; and
WHEREAS, on June 18, 2013, the City Council adopted Resolution No. 6982, a
Resolution of Intention to establish the Downtown Arcadia CBD based on the Steering
Committee having received petitions representing over 30% of the weighted
assessments in the proposed District; and
WHEREAS, on June 18, 2013, the Council directed staff to proceed with the
balloting process to determine whether the requisite 50% of the weighted ballots (based
on the amount of assessments) of property owners with the proposed CBD support its
establishment; and
WHEREAS, the City Council conducted a duly noticed public hearing on August
6, 2013 on the formation of the Downtown Arcadia CBD, at which affected property
owners could give testimony for and against the CBD; and
1
WHEREAS, the City Council received ballots through the close of the public
hearing, and thereafter directed the City Clerk or his designee to unseal and tally the
ballots in the Council Chambers Conference Room, which was open to the public as
required by law; and
WHEREAS, the City Clerk completed tallying the ballots and reported to the City
Council that the ballot count in support of the CBD represented more than 50% of the
returned ballots weighted based upon the amount of assessments; and
WHEREAS, based on the weighted majority support for the establishment of the
Downtown CBD, the City Council desires to form the proposed Downtown Arcadia CBD
without imposing any changes to the district boundaries pursuant to Streets and
Highways Code Section 33624.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ARCADIA,
CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. Pursuant to Ordinance No. 2306, set forth in the Arcadia Municipal
Code, Article I, Chapter 14 pertaining to community benefit districts, and the California
Streets and Highways Code Section 33600 et seq., the City Council hereby approves
the formation of the Downtown Arcadia CBD.
SECTION 2. The boundaries of the Downtown Arcadia CBD are set forth in the
Downtown Arcadia Community Benefit District 2013 Management District Plan (the
Management Plan), which is attached hereto as Exhibit "A ".
SECTION 3. The improvements and activities proposed for the Downtown
Arcadia CBD shall be funded by the levy of assessments on the properties within the
Downtown Arcadia CBD boundaries.
2
SECTION 4. The description of the proposed improvements and activities of the
Downtown Arcadia CBD are set forth in the Management Plan, and include, but are not
limited to, these special benefits:
a. Promotion of Downtown Arcadia CBD identify through district identity services
and marketing,
b. Beautification of public rights of way and maintenance related to public
spaces and special events,
c. Management of programs and operations.
SECTION 5. The City Council authorizes and directs the levy of assessments
on properties located within the Downtown Arcadia CBD boundaries, in the amounts
shown in the District Assessment Engineer's Report, attached hereto as Exhibit "B ".
SECTION 6. Except where funds are otherwise available, an assessment to pay
for all specified improvements and activities with the Downtown Arcadia CBD will be
levied annually.
SECTION 7. After the Downtown Arcadia CBD is formed, new property owners
shall not be exempt from the CBD assessment, but shall be assessed the appropriate
amount in the prorated format based on the number of whole months remaining in the
assessment period.
SECTION 8. The properties in the Downtown Arcadia CBD shall be subject to
any and all amendments to the Streets and Highways Code pertaining to the
establishment of property and business improvement districts.
SECTION 9. The levy and assessment which will fund improvements and
activities within the Downtown Arcadia CBD will not be used to provide improvements or
3
activities outside of the Downtown Arcadia CBD or for any other purpose other than the
purposes specified in this Resolution and the attachments hereto, as modified by the
City Council at the public hearing concerning establishment of the Downtown Arcadia
:d
SECTION 10. The City Council hereby finds that the property within the
Downtown Arcadia CBD area will be specifically benefitted by the improvements and
activities funded by the assessments that are proposed to be levied.
SECTION 11. The adoption of this Resolution and recordation of the notice and
map pursuant to the Streets and Highways Code Section 33627 shall constitute the levy
of an assessment in each of the fiscal years referred to in the Management Plan.
SECTION 12. The City Clerk shall certify to the adoption of this Resolution.
Passed, approved and adopted this
ATTEST:
City erk
APPROVED AS TO FORM:
Stephen P. Deitsch
City Attorney
4
6th day August , 2013.
2
Mayor oft City o Arcadia
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES) SS:
CITY OF ARCADIA )
I, GENE GLASCO, City Clerk of the City of Arcadia, hereby certifies that the
foregoing Resolution No. 6988 was passed and adopted by the City Council of the City of
Arcadia, signed by the Mayor and attested to by the City Clerk at a regular meeting of said
Council held on the 6th day of August, 2013 and that said Resolution was adopted by the
following vote, to wit:
AYES: Council Member Amundson, Kovacic, Harbicht, Wuo and Segal
NOES: None
ABSENT: None
.� �_ 'ty CfEA of th ity of Arcadia
5
A�t�etk Inc.
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
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.
Table of Contents
Section Number
1. Management District Plan Summary
2. Downtown Arcadia CBD Boundaries
3. District Improvement and Activity Plan
4. Assessment Methodology
5. District Rules, Regulations and Governance
6. Implementation Timetable
7. Assessment Roll of Properties Included
Attachment:
A. Engineer's Report
2
El
10
16
26
26
27
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.
5. 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
CotegM of Service
Annual Bud et
Special Benefit Services
District Identity and Streetscape
48
$ 56,000.00
Improvements
Sidewalk Operations,
21%
$ 25.000.00
Beautification and Order
Enhanced Residential
0%
$ 0
Improvements
Program Management,
27 %
$ 32,000.00
Corporate Operations
Contingency
4%
$ 4,515.00
Total First Year Budget
10096
$117,SIS.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
4
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 Financine.
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 9th, 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
5
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 S 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.
2
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
westwa rd;
■ Western Boundary: Starting at the parcels at the southeastern and
northeastern corners of the intersection of Huntington Drive and Santa Anita, running
eastward;
8
N 5773 006
56
w E 914
911 912
57
5773006
39
Wheeler St.
901 18
17730 12
1 2 3 4 7 8 9 1 11 22
34 291 281 271261 251 241 231 221 211 20 18
17
5773 013 16
15
5773 018
5773 019
.�iJNPJ'lLYJ. Ittt'.
St. Joseph St.
31
za 5773007
35
Santa Anita Ave.
48
49
40
5773 011 ry
42
24
23 901 21 20 19 18 900
22
5773 010
4
1 2 301
Huntington Dr. 911%
16
13
33
12
it
P39q
25
36
35
34
13
2 1
0
Alta St.
5773 017
Bonita St.
5773 020
California St.
a
Q
F
N
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
11
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.
5. 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
Improvements
48%
$ 56,000.00
Sidewalk Operations,
Beautification and Order
21%
$ 25.000.00
Enhanced Residential
Improvements
0%
$ 0
Program Management,
Corporate Operations
27
$ 32,000.00
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: $ 2$,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 -8
15
FY1
FY2
FY3
FY4
FYS
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
$35,17751
$36,936.39
$38,783.21
$40,722.37
Beautification
$25,000.00
$26,250.00
$27,562.50
$28,940.63
$30,387.66
$31,907.04
$33,502.39
and Order
Program Management,
$45,027.21
$47,278.57
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
Contingency
Contingency
$4,515.00
$4,740.75
$4,977.79
$5,226.68
$5,488.01
$5,762.41
$6,05053
Total
$117,515.00
$123,390.75
$129,560.29
$136,038.30
$142,840.22
$149,982.23
$157,481.34
15
FY8
FY9
FY10
FY11
FY12
FY13
FY14
FUS
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
$35,17751
$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
Improvements
Funded by building square footage of residential condos once
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 C8D
25
Site
Annual
APN Legal Owner
g
Site Street
Assessment
Percent
5773 010 90( Arcadia City
*no Site Address*
$957.87
0.8%
5773 010 903 Arcadia City
*no Site Address*
$681.40
0.6%
5773 012 903 Arcadia City
*no Site Address*
$2,384.89
2.0%
5773 012 90: Arcadia City
*no Site Address*
$295.31
0.3%
TOTAL
$4,319.46
3.7%
5773 006 913 Los Angeles- Pasadena Metro Blue
29
E Santa Clara St
$2,226.79
1.9%
5773 006 91: Los Angeles- Pasadena Metro Blue
29
E Santa Clara St
$944.02
0.8%
5773 006 91, Los Angeles- Pasadena Metro Blue
*no Site Address*
$3,000.83
2.6%
TOTAL
$6,171.65
5.3%
5773 014 913 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
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
W.
Downtown Arcadia
Community Benefit District
CITY OF ARCADIA
CALIFORNIA
DISTRICT
ASSESSMENT ENGINEER'S
REPORT
Prepared by
Edward V. Henning,
California Registered Professional Engineer # 26549
Edward Henning & Associates
April 5, 2013
DISTRICT ASSESSMENT ENGINEER'S REPORT
To Whom It May Concern:
I hereby certify to the best of my professional knowledge and experience that each of the identified benefiting
properties located within the proposed Downtown Arcadia Community Management District being established for
fifteen (15) years will receive a special benefit over and above the benefits conferred on the public at large and that
the amount of the proposed assessment is proportional to, and no greater than the benefits conferred on each
respective property.
Prepared by Edward v Henning, California Registered Professional Engineer # 26549
V HFNtii FC,
Uj I C �26�5�4�9 �� M
OFCAIIF���
PE #26549 Anril 5.2013
Edward V. Henning Date
(NOT VALID WITHOUT SIGNATURE AND CERTIFICATION SEAL HERE)
Introduction
This report shall serve as the "detailed engineer's report" required by Section 4(b) of Article XIIID of the California
Constitution (Proposition 218) to support the special assessments proposed to be levied for a 15 year period on
parcels of real property included within the proposed Downtown Arcadia Community Benefit District (Downtown
Arcadia CBD) in the City of Arcadia, California. The discussion and analysis contained within this report supports
the conclusions that both the required "nexus" and proportionality exist between the assessment amounts proposed to
be levied and the special benefits that will be derived by the identified properties included within the proposed
Downtown Arcadia CBD.
Backeround
The Downtown Arcadia Community Benefit District ( "CBD ") is a property-based special assessment district being
established in Arcadia pursuant to City of Arcadia Ordinance # 2306 of Article 1 of the Arcadia Municipal Code,
Chapter 14 on Community Benefit Districts ( "City Code ") modeled after Section 36600 et seq. of the California
Streets and Highways Code, known as the Property and Business Improvement District Law of 1994 (the "Act "). To
satisfy the constitutional requirements for assessments on property imposed by Proposition 218, the costs of the
services, activities and improvements in the district to be funded by assessments ( "district programs ") are to be
distributed amongst all the identified properties based on the proportional benefit each parcel is expected to derive
from the district programs. Within the Code, Act, Proposition 218 and Proposition 218 Omnibus Implementation Act,
frequent references are made to the relative "special benefit" received from the district programs versus the amount of
the assessment levied, which incorporate the concepts of "nexus" and "proportionality" that are required to levy
assessments on property within a special assessment district. "Nexus" requires that only those properties expected to
derive special benefits from the district programs may be assessed. "Proportionality" requires that, for each assessed
property, the assessment be only in an amount proportional to that parcel's share of the reasonable costs of providing
the relative special benefits expected to be conferred on that parcel.
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 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. Quantity takeoffs for each parcel are then measured or otherwise
ascertained. From these figures, the amount of benefit units to be assigned to each property can be calculated. Special
circumstances such as unique geography, land uses, development constraints etc. are carefully reviewed relative to
specific programs and improvements to be funded by the CBD in order to determine any levels of diminished benefit
which may apply on a parcel -by- parcel or categorical basis.
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 ancillary program costs,
are estimated. It is noted, as stipulated in Proposition 218, and now required of all property based assessment
Districts, indirect or general benefits may not be incorporated into the assessment formula and levied on the District
properties; only direct or "special" benefits and costs may be considered. Indirect or general benefit costs, if any,
2
must be identified and, if quantifiable, calculated and factored out of the assessment cost basis to produce a "net' cost
figure. In addition, Proposition 218 no longer automatically exempts government owned property from being assessed
and if special benefit is determined to be conferred upon such properties, they must be assessed in proportion to
special benefits conferred in a manner similar to privately owned property assessments.
From this, 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. The amount of assessment for each identified parcel
can be computed at this time by multiplying the Net Unit Cost times the number of Basic Benefit Units per identified
parcel. This is known as "spreading the assessment' or the "assessment spread" in that all costs are allocated
proportionally or "spread" amongst all identified properties within the CBD.
The method and basis of spreading program costs varies from one CBD to another based on local conditions, types of
programs and activities proposed, and size and development complexity of the CBD.
Summlemental Promosition 218 Procedures and Requirements
Proposition 218, approved by the voters of California in November of 1996, adds a supplemental array of procedures
and requirements to be carried out prior to levying a property -based assessment like the Downtown Arcadia CBD.
These requirements are in addition to requirements imposed by State and local assessment enabling laws. These
requirements were "chaptered" into law as Article XIIID of the California Constitution.
Since Prop 218 provisions will affect all subsequent calculations to be made in the final assessment formula for the
Downtown Arcadia CBD, Prop 218 requirements will be taken into account. The key provisions of Prop 218 along
with a description of how the Downtown Arcadia CBD complies with each of these provisions are delineated below.
(Note: All section references below pertain to Article XIII of the California Constitution):
Finding 1. From Section 4(a): "Identify all parcels which will have a special benefit conferred upon them and
upon which an assessment will be imposed"
There are 108 parcels within the proposed Downtown Arcadia CBD that are "identified" individual parcels that will
derive special benefit from the proposed District programs and activities. The benefits are special and unique only to
the identified properties within the proposed District because programs and services will only be provided directly for
the identified properties. All CBD parcels are identified by assessor parcel number and shown on the Boundary Map
in the Management District Plan and are listed in Attachment I to this Report.
The boundaries of the Downtown Arcadia CBD generally are described as follows:
■ Northern Boundary: Starting at the parcels at the southwestern and southeastern corners of the intersection
of St. Joseph Street and 1' Avenue, running south;
■ Southern Boundary: Starting at the parcels at the northwestern and northeastern corners of the intersection
of California Street and I' 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;
There is 1 Benefit Zone within the Downtown Arcadia CBD.
All parcels within the above - described boundaries shall be assessed to fund special benefit services, programs and
improvements as outlined in this report. CBD funded programs will only be provided to properties inside the District
boundaries — none outside.
Finding 2. From Section 4(a): "Separate general benefits from the special benefits conferred on parcel(s). Only
special benefits are assessable. "
The property uses within the boundaries of the Downtown Arcadia CBD are a mix of office, retail, entertainment and
parking. Future residential condominium developments are anticipated. Services, programs and improvements
provided by the District are primarily designed to provide special benefits to all parcels within the boundaries of the
district. Existing City of Arcadia services will be enhanced, not replaced or duplicated, by the new CBD services. In
the case of the Downtown Arcadia CBD, the very nature of the purpose of this District is to fund supplemental
programs, improvements and services within the CBD boundaries above and beyond what is being currently funded
either via normal tax supported methods or other funding sources. These services, programs and improvements, are
designed to enhance the commercial core uses, increase tenancy and marketing of the commercial entities in the CBD
and improve the aesthetic appearance of the CBD as a whole. If and when residential condominium development
occur, these uses will be assessed for enhanced residential type improvements and services. All benefits derived from
the assessments to be levied on current parcels within the CBD are for services, programs and improvements directly
benefiting the property and business owners within this area and support increased cleanliness, commerce, business
attraction and retention, increased property rental income and improved District identity. No services will be
provided beyond the CBD boundaries. The proposed services, programs and improvements which will provide
special benefit to the properties within the CBD boundaries are described below:
1. DISTRICT IDENTITYNISITOR ATTRACTION: $ 56,000 - 48%
4
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
2. SIDEWALK OPERATIONS, BEAUTIFICATION. AND ORDER: $ 25,000 - 21%
Programs and services 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: $ 0.00 - 0 % (TB D)
Residential condos will be assessed separately due to their unique parcel status and special benefit needs in the district.
When and if residential condominiums are built within the CBD, these blocks will have the following special benefit
services provided adjacent to their parcel frontages. 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;
5
• 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
Residential condo individually assessed parcels are assessed as a separate category. These residential condo individually
assessed 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.
4. PROGRAM MANAGEMENT AND CORPORATE OPERATIONS: $ 32,000 - 27 %
Examples of these special benefit services and costs include, but are not limited to:
• Staff and administrative costs
• Directors and Officers Insurance
• Office related expenses
• Rent
• Financial reporting, accounting and legal work
5. CONTINGENCY /RESERVE: $4,515-4%
Examples of these special benefit services and costs include, but are not limited to:
• Delinquencies
• Reserves
■ City and county administration costs
Each of these programs and activities work together to create a more pleasing environment within the district that is
conducive to strengthening the current and future economic vitality of this area through the attraction and retention of
new business and increased commerce. Programs and services for future residential uses will enhance the livability of
these unique uses. The programs, improvements and services are designed to specifically benefit identified properties
within the CBD boundaries. The proposed CBD assessments will only be levied on identified properties within the
CBD boundaries and assessment revenues will be spent to deliver services that provide a direct and special benefit to
assessed parcels and to improve the economic vitality of these properties.
General vs Special Benefit Analysis
As stipulated by Proposition 218, assessment District programs and activities confer a combination of general and
special benefits to properties, but the only program benefits that can be assessed are those that provide special benefit
to District properties. For the purposes of this analysis, a "general benefit' is hereby defined as: "A benefit to
properties in the area and in the surrounding community or benefit to the public in general resulting from the
6
improvement, activity, or service to be provided by the assessment levied ". "Special benefit' as defined by the
California State Constitution means a distinct benefit over and above general benefits conferred on real property
located in the District or to the public at large.
CBD programs and activities, in accordance with Article 13D Section 4 of the California State Constitution confer a
combination of general and special benefits. Only program benefits which are attributed to special benefits conferred
on the identified parcels can be funded through assessments. A portion of the program costs are considered
attributable to general benefits and must be assigned a value.
It is the opinion of this Engineer that because all of the proposed programs and services are supplemental in nature
and are limited to identified parcels only within the proposed district boundaries, that a general benefit value will be
set at a relatively nominal rate of 5% of the total adjusted costs. Total adjusted costs include actual proposed
assessment district program costs plus any additional supplemental or matching program costs as well as applied
credits from sources such as start up grants, cash and in -kind service contributions for district formation and owners
association Board /Committee member service credits. This leaves a value of 95% attributable to special benefit
related costs. Since the total program cost is estimated at $126,915 (see Year 1 Cost list in Step 5 later in this
Report), the maximum special benefit portion which can be funded through property assessments is $120,569.
Remaining costs which are attributed to general benefits will need to be funded from other sources. (e.g.
public /private matching grants, startup grants, in -kind service contributions for district formation, startup volunteer
credits or ongoing board member volunteer credits). In the opinion of this Engineer, there are other identified revenue
sources /credits that are part of the benefit analysis as delineated in Step 5 and 6 later in this Report.
Findine 3. From Section 4(a): "(Determine) the proportionate special benefit derived by each parcel in
relationship to the entirety of the.......... cost of public improvement(s) or the maintenance and operation
expenses ........... or the cost of the property related service being provided.
Each identified parcel within the district will be assessed based on property and development characteristics unique
only to that parcel. The calculated assessment rates are applied to the actual measured parameters of each parcel and
thereby are proportional to each and every other identified parcel within the district. Larger parcels and buildings are
expected to impact the demand for services and programs to a greater extent than smaller ones and thus are assigned a
higher proportionate degree of assessment program and service costs. The proportionality is further achieved by
setting targeted formula component weights for the respective parcel by parcel identified land and building attributes.
The proportionate special benefit cost for each parcel has been calculated based on optimum proportionate formula
components and are each listed on Attachment 1 to this Report. The individual percentages (i.e. proportionate
7
relationship to the total special benefit related program and activity costs) are computed by dividing the individual
parcel assessment by the total special benefit program costs.
Findine 4. From Section 4(a): "No assessment shall be imposed on any parcel which exceeds the reasonable
cost of the proportional special benefit conferred on that parcel."
Not only are the proposed program costs reasonable due to the benefit of group purchasing and contracting which
would be possible through the Downtown Arcadia CBD, they are also considerably less than other options
considered by the Downtown Arcadia CBD proponent group. The actual assessment rate for each parcel within the
CBD directly relate to the level of service to be provided based on the respective amount of building area, street
frontage and parcel size of each parcel. For residential condominiums, the assessment relates to the building pad area
of each unit.
Findine 5. From Section 4(a): "Parcels ........ that are owned or used by any (public) agency shall not be exempt
from assessment.........."
Any publicly owned parcels within the CBD would also receive benefits commensurate with the assessments paid
into the Downtown Arcadia CBD. There is no compelling evidence that publicly owned parcels do not benefit
equally to privately owned parcels and, thus, would be assessed in the same manner and rates as private parcels in the
CBD. The publically owned parcels are show in the chart below:
APN
Legal Owner
Site
#
Site Street
Annual
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 90
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 91
Los Angeles- Pasadena Metro Blue
29
E Santa Clara St
$944.02
0,8%
577300691.
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%
Finding 6. From Section 4(b): "All assessments must be supported by a detailed engineer's report prepared by
a registered professional engineer certified by the State of California ".
This report serves as the "detailed engineer's report" to support the benefit property assessments proposed to be
8
levied within the Downtown Arcadia CBD.
Findin¢ 7. From Section 4(c): "The amount of the proposed assessment for each parcel shall be calculated
(along with) the total amount thereof chargeable to the entire district, the duration of such payments, the
reason for such assessment and the basis upon which the amount of the proposed assessment was calculated."
The individual and total parcel assessments attributable to special property benefits are listed on Attachment 1 to this
Report. The District and resultant assessment payments will continue for fifteen (15) years and may be renewed again
at that time. The reasons for the proposed assessments are outlined in Finding 2 above as well as in the Management
District Plan. The calculation basis of the proposed assessment is attributed in part to gross building area, parcel size
and street frontage. For residential condominiums, assessment is attributed to the building pad area of each unit.
There is one Benefit Zone identified.
Assessment Formula Methodology
Step 1. Select "Basic Benefit Unit(s)"
CBD assessment formulas typically are based on street frontage, parcel size, building size and /or location, all of
which relate to the amount of special benefit conferred on a particular parcel and the proportionate assessment to be
paid. The formula may base assessments on a single factor or a combination of these factors.
Based on the specific needs and corresponding nature of the program activities to be funded by the Downtown
Arcadia CBD, it is the opinion of this Assessment Engineer that the assessment factors on which to base assessment
rates relate directly to the proportionate amount of building area, street frontage and land area. For residential
condominiums, assessment is attributed to the building pad area of each unit.
For commercial uses, the interactive application of building area, street frontage and land area quantities are a proven
method of fairly and equitably spreading special benefit costs to these primary beneficiaries of CBD funded services,
programs and improvements. Each of these factors directly relates to the degree of benefit each parcel will receive
from CBD funded activities.
Building area (gross) is a direct measure of the static utilization of each parcel and its corresponding impact or draw
on CBD funded activities such as district identity. In the opinion of this Assessment Engineer, the targeted weight of
this factor, building area, should generate approximately 50% of the total CBD revenues (48.09173% when adjusted).
The actual assessment revenue projection of this formula element is $56,515 of which $56,000 will be allocated to
district identity and the remainder of $515 to contingency /reserve.
V
The portion 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.
Street frontage is a direct measure of the static utilization of each parcel and its corresponding impact or draw on
CBD funded activities such as sidewalk operations and beautification. In the opinion of this Assessment Engineer, the
targeted weight of this factor, street frontage, should generate approximately 20% of the total CBD revenues.
(21.27387% when adjusted). The actual assessment revenue projection of this formula element is $25,000, all of
which will be allocated to district identity.
Land area is a direct measure of the current and future development capacity of each parcel and, again, its
corresponding impact or draw on CBD funded activities such as administration /operations and contingency reserve.
In the opinion of this Assessment Engineer, the targeted weight of this factor, land area, should generate
approximately 30% of the total CBD revenue (30.63438% when adjusted). The actual assessment revenue projection
of this formula element is $36,000 of which $32,000 will all be allocated to administration, organization and
corporate operations and $4,000 to contingency /reserve. In addition, $515 from building area assessments will be
allocated to contingency /reserve for a total allocation of $4,515.
For residential condominium uses, the application of building pad area for each unit is a proven method of fairly and
equitably spreading special benefit costs to these beneficiaries of CBD funded services, programs and improvements.
The unit building pad area factor directly relates to the degree of benefit each residential condominium unit parcel
will receive from CBD funded activities. Since there are currently no such units within the CBD, the revenue
projection of this factor is $0 and no enhanced residential improvements, services and programs will be initiated or
funded by the CBD at this time.
It is the finding of this Engineer that there are no land uses or ownership types within the CBD, other than as
described above, that will either not benefit or receive diminished benefit from CBD funded programs and services
and thus all parcels will be assessed at the same rates and in the same manner. For residential condominiums, the
assessment rate relates to the building pad area of each unit.
The "Basic Benefit Units" will be expressed as a combined function of building area (Benefit Unit "A "), street
frontage (Benefit Unit "B "), parcel size (Benefit Unit "C ") and condominium building pad area (Benefit Unit "D ").
Based on the shape of the Downtown Arcadia CBD, as well as the nature of the District program elements, it is
10
determined that all properties will gain a direct and proportionate degree of special benefit based on the respective
amount of building area, street frontage and land area within one benefit zone. For residential condominiums (future),
the assessment rate will be based on the building pad area of each unit.
Step 2. Quantify Total Basic Benefit Units
Taking into account all identified benefiting properties and their respective assessable benefit units, there are 108
identified parcels within the CBD, 583,905 Benefit Units A, 12,671 Benefit Units B, 1,189,825 Benefit Units C and 0
Benefit Units D.
Step 3. Calculate Benefit Units for Each Property.
The number of Benefit Units for each identified benefiting parcel within the Downtown Arcadia CBD was computed
from data extracted from City and County Assessor records and maps. These data sources delineate current land uses,
property areas and dimensions of record for each tax parcel. While it is understood that this data does not represent
legal field survey measurements or detailed title search of recorded land subdivision maps or building records, it does
provide an acceptable basis for the purpose of calculating property based assessments. All respective property data
being used for assessment computations will be provided to each property owner in the CBD for their review. All
known or reported discrepancies, errors or misinformation will be corrected.
Step 4. Determine Assessment Formula
Based on the nature of the programs to be funded as well as other rationale outlined in Step 1 above, it has been
determined that the Downtown Arcadia CBD assessments will be based on the amount of building area, street
frontage and land area within one benefit zone. For residential condominiums (future), the assessment rate will be
based on the building pad area of each unit.
The assessment formula factors described above are set to uniquely fund each CBD program element as follows:
- District Identity is funded 100% by building area revenue
- Sidewalk Operations are funded 100% by street frontage revenues
- Enhanced Residential Improvements will be funded 100% from resid. condo building pad area revenues
- Administration is funded 100% by land area revenues
- Contingency /Reserve is funded 100% by land area revenues (a minor amount from building area revenue)
Assessment Formula Unit Cost Calculations:
Building Rate (Benefit Unit "A ") _ $56,515/583,905 SF = $0.09679/SF
Street Frontage Rate = (Benefit Unit `B ") _ $25,000/12,671 LF = $1.973/LF
Land Area Rate = (Benefit Unit "C ") _ $36,000/1,89,825 sq ft = $0.030256/SF
Residential Condominium Building Pad Area Rate = $0.20 /SF
Assessment Formula = Bldg Area x Bldg Area Rate, plus
Street Frontage x Street Frontage Rate, plus
Land Area x Land Area Rate
Assessment Formula For Residential Condominiums = Building Pad Area x Bldg pad Area Rate
Added notes for special circumstances:
1. Future Residential Condominium Unit Parcels will be assessed based on unit building pad area.
2. All ground floor commercial condos (retail or office) will be assessed based on actual land area covered, condo
building pad area and direct street frontage for each unit. Because such uses are typically developed as part of a
multi -floor mixed -use complex, special methodologies are needed to address the levy of assessments on such land
uses as delineated in 3A and 3B below.
3. Multi -floor mixed -use condominium uses will be assessed in accordance with the following assessment
methodology:
A. Multi —Floor Commercial Only Condominiums
- Building pad area at respective building area rate
- Land area at land area rate but pro -rated for each unit based on ratio of unit building area to total building area
- Street frontage at respective street frontage rate but pro -rated for each unit based on ratio of unit building area to
total building area
B. Mixed -Use Commercial Condos and Residential Condominiums
- Commercial building pad area at respective commercial building area rate and at residential condominium building
rate for residential condominium building pad area
- Land area at land area rate (assessed on ground floor commercial condo parcels for actual land area covered)
- Street frontage at respective street frontage rate (assessed on ground floor commercial condo parcels for actual street
frontage)
4. Parking Structures — the building areas for structured parking that primarily serves specified tenants will not be
assessed. The underlying land area and adjacent street frontages for parking structures will be assessed according to
the respective assessment rates.
12
5. Future Development As future new development occurs within the District, current property characteristics and
parcel configurations may also change. This may occur due new building construction, demolition and /or expansion
as well as various land related modifications such as new subdivisions, lot line adjustments, reversions to acreage and
parcel consolidations. In turn, individual parcel street frontage measurements, parcel sizes and building areas may
also change. Any such modifications will result in recalculation of assessments for new and /or modified buildings
and /or parcels based on the assessment rate in affect when such changes occur in accordance with future maximum
rates and the assessment methodology delineated in this Report.
It is noted that any change in assessment formula methodology or rates other than as stipulated in this Report would
require a new Proposition 218 ballot procedure in order to approve any such changes.
Stea 5. Estimate Total District Costs
The total projected District revenues /expenditures for Year 1 of the CBD are as follow:
$ 117,515 = CBD assessment funded programs
$ 2,000 = pro -rated initial formation cost credits
$ 1,000 = pro -rated initial volunteer cost credits (50% of formation costs)
6,400 = annual Board /Committee volunteer cost credits (20% of admin budget)
$ 126,915 = Total Year 1 CBD costs /credits
The Year 1 projected assessment revenue budget allocation is as follows:
Programs & Activities
Year 1
District Identity
$56,000.00
Street Operations and Beautification
$25,000.00
Admin, Contingency, Reserves
$36,515.00
TOTAL
$117,515.00
Step 6. Separate General Benefits from Special Benefits and Related Costs (Prop 218)
All benefits derived from the assessments outlined in the Management District Plan are for supplemental services,
programs and improvements directly benefiting the properties within this area. All CBD funded activities are
provided solely to properties within the Downtown Arcadia CBD. All services will be delivered only within the
boundaries and designed only for the direct special benefit of the assessed properties in the CBD. No services will be
provided to non - assessed parcels outside the CBD boundaries.
Total program and activity costs are estimated at $126,915. General benefits are factored at 5% of total (see Finding 2
in this report) with special benefits set at 95 %. Proposition 218 limits the levy of property assessments to costs
13
attributed to special benefits only. The 5% general benefit cost is computed to be $6,346 with a resultant 95% special
benefit limit computed at $120,569. This is the maximum amount of revenue that can be derived from property
assessments, from the subject district in the first year. This maximum may increase on an annual basis in subsequent
years (years 2 through 15) to adjust for inflation by 5% as described in the Management District Plan. The total
amount of revenue proposed to be derived from district assessments is $117,515 for Year 1, which does not exceed
the special benefit limit of $120,569. Therefore, no Proposition 218 adjustments need to be made to the proposed
assessment formula. Remaining costs which are attributed to general benefits will need to be funded from other
sources. (e.g. public /private matching grants, startup grants, in -kind service contributions for district formation,
startup volunteer credits or ongoing board member volunteer credits).
Step 7• Calculate "Basic Unit Cost"
With a Year 1 assessment revenue of $117,515 (special benefit only), the Basic Unit Costs are shown above in Step 4.
Since the CBD is being established for a fifteen year term, maximum assessments for future years (Years 2 through
15) must be set at the inception of the CBD. An annual flat inflationary rate increase of up to 5% may be imposed for
Years 2 -15. Therefore the maximum annual rates may not increase more than 5% of the previous year's rates. The
maximum annual assessment revenue for Years 1 -15 is shown below:
Fiscal Year
Max Annual Assessment
FY 1
$117,515.00
FY 2
$123,390.75
FY 3
$129,560.29
FY 4
$136,038.30
FY 5
$142,840.22
FY 6
$149,982.23
FY 7
$157,481.34
FY 8
$165,355.41
FY 9
$173,623.18
FY 10
$182,304.34
FY 11
$191,419.55
FY 12
$200,990.53
FY 13
$211,040.06
FY 14
$221,592.06
FY 15
$232,671.66
14
The projected program cost allocations for Years 1 -15 areas follows:
Total 1 $117,515.00 1 $123,390.75 1 $129,560.29 1 $136,038.30 1 $142,840.22 1 $149,982.23 1 $157,481.34
FYI
FY2
FY3
I FY4
FY5
FV6
FY7
District Identity,
Visitor Attraction
$56,00000
$58,800.00
$61,740.00
$64,827.00
$68,068.35
$71,471.77
$75,045.36
Sidewalk Operations,
$105,847.77
Sidewalk Operations,
FY 3
$2.17523250
$0.10671098
$0.03335724
$0.220500
Beautification
$25,000.00
$26,250.00
$27,562.50
$28,940.63
$30.387.66
$31,907.04
$33,502.39
and Order
$44,896.41
$47,141.23
$47,253.47
and Order
$0.03861517
$0.255256
FY 7
Program Management,
Corp. Operations
$32,000.00
$33,600.00
$35,28000
$37,044.00
$38,896.20
$40,841.01
$42,883.06
Contingency
$4,51500
$4,740.75
$4,977.79
$5,226.68
$5,488.01
$5,762.41
$6,050.53
Total 1 $117,515.00 1 $123,390.75 1 $129,560.29 1 $136,038.30 1 $142,840.22 1 $149,982.23 1 $157,481.34
The maximum annual assessment rates for Years 1 -15 are shown below:
FY8
FV9
FY10
FY11
FY12
FY13
FY14
FY15
District Identity,
Visitor Attraction
$78,797.62
$82,737.50
$86,874.38
$91,218.10
$95,779.00
$100,567.95
$105,596.35
$105,847.77
Sidewalk Operations,
FY 3
$2.17523250
$0.10671098
$0.03335724
$0.220500
FY 4
$2.28399413
$0.11204652
Beautification
$35,177.51
$36,936.39
$38,78321
$40,722.37
$42,758.48
$44,896.41
$47,141.23
$47,253.47
and Order
$0.03861517
$0.255256
FY 7
$2.64400870
$0.12970786
$0.04054593
$0.268019
FY 8
Program Management,
Corp. Operations
$45,027.21
$47,278.57
$49,64250
$52,124.63
$54,730.86
$57,467.40
$60,34077
$60,484.44
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
$2119040.06
$221,592.06
$222,119.66
The maximum annual assessment rates for Years 1 -15 are shown below:
15
MAX ASSESSMENT RATES
Fiscal Year
Max Street
Frontage Rate
$ /LF
Max Bldg Area
Rate ($/SF Bld
Max Land Area
Rate ($/SF land
Max Resid
Condo Rate
($/SF Bldg)
FY 1
$1.97300000
$0.09679000
$0.03025600
$0.200000
FY 2
$2.07165000
$0.10162950
$0.03176880
$0.210000
FY 3
$2.17523250
$0.10671098
$0.03335724
$0.220500
FY 4
$2.28399413
$0.11204652
$0.03502510
$0.231525
FY 5
$2.39819383
$0.11764885
$0.03677636
$0.243101
FY 6
$2.51810352
$0.12353129
$0.03861517
$0.255256
FY 7
$2.64400870
$0.12970786
$0.04054593
$0.268019
FY 8
$2.77620913
$0.13619325
$0.04257323
$0.281420
15
FY 9
$2.91501959
$0.14300291
$0.04470189
$0.295491
FY 10
$3.06077057
$0.15015306
$0.04693699
$0.310266
FY 11
$3.21380910
$0.15766071
$0.04928384
$0.325779
FY 12
$3.37449955
$0.16554375
$0.05174803
$0.342068
FY 13
$3.54322453
$0.17382093
$0.05433543
$0.359171
FY 14
$3.72038576
$0.18251198
$0.05705220
$0.377130
FY 15
$3.90640505
$0.19163758
$0.05990481
$0.395986
Sten 8. Spread the Assessments
The resultant assessment spread calculation results for each parcel within the CBD are shown in Attachment 1
attached hereto and were determined by applying the District assessment formula to each identified benefiting
property.
16
ATTACHMENT 1
Downtown Arcadia CBD Year 1 Assessments
APN
Annual
Assessment
5773 006 039
$2,811.36
5773 006 056
$3,830.91
5773 006 057
$5,775.70
5773 006 911
$2,226.79
5773 006 912
$944.02
5773 006 914
$3,000.83
5773 007 028
$784.16
5773 007 031
$754.29
5773 007 035
$2,026.03
5773 010 001
$790.64
5773 010 002
$437.34
5773 010 003
$639.68
5773 010 004
$857.07
5773 010 005
$351.71
5773 010 006
$354.73
5773 010 007
$1,699.69
5773 010 008
$648.37
5773 010 009
$699.24
5773 010 010
$593.52
5773 010 011
$954.69
5773 010 012
$620.57
5773 010 013
$161.24
5773 010 014
$743.88
5773 010 015
$629.09
5773 010 018
$505.36
5773 010 019
$1,078.62
5773 010 020
$921.44
5773 010 021
$1,115.02
5773 010 022
$703.87
5773 010 023
$652.57
5773 010 024
$820.89
5773 010 030
$1,807.51
5773 010 031
$345.24
5773 010 900
$957.87
5773 010 901
$681.40
5773 011 040
$339.24
5773 011 042
$1,846.32
5773 011 048
$314.88
5773 011 049
$666.24
5773 012 001
$1,285.06
5773 012 002
$665.51
17
5773 012
003
$697.60
5773 012
004
$692.76
5773 012
005
$658.53
5773 012
006
$348.80
5773 012
007
$697.60
5773 012
008
$744.93
5773 012
009
$721.80
5773 012
010
$924.38
5773 012
011
$1,129.92
5773 012
012
$378.99
5773 012
013
$674.95
5773 012
018
$6,380.01
5773 012
022
$4,276.78
5773 012
901
$2,384.89
5773 012
902
$295.31
5773 013
015
$1,007.80
5773 013
016
$840.57
5773 013
017
$810.52
5773 013
018
$4,236.08
5773 013
019
$331.96
5773 013
020
$817.31
5773 013
021
$653.44
5773 013
022
$517.94
5773 013
023
$770.56
5773 013
024
$706.68
5773 013
025
$658.28
5773 013
026
$808.31
5773 013
027
$498.48
5773 013
028
$803.47
5773 013
029
$756.72
5773 013
034
$2,127.57
5773 014
001
$1,278.61
5773 014
002
$2,866.57
5773 014
026
$805.97
5773 014
027
$365.03
5773 014
028
$159.00
5773 014
029
$1,264.37
5773 014
034
$95.40
5773 014
037
$2,095.66
5773 014
038
$1,736.88
5773 014 051
$2,515.43
5773 014 052
$888.53
5773 014 911
$329.07
5773
017
001
$291.50
5773
017
002
$449.15
5773
017
003
$355.95
5773
017
004
$296.62
5773
017
033
$333.17
5773
017
034
$1,573.44
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
18
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
2117 515.39