HomeMy WebLinkAboutItem 2d: Using Funds from Redevelopment Agency to Provide Expertise to Arcadia Downtown Business Association Pr PI 1111
ill Ili ill STAFF REPORT
Arcadia Redevelopment Agency
DATE: February 15, 2011
TO: Chair and Members of the Agency Board
FROM: Jason Kruckeberg, Assistant City Manager /Development Services Director3Z/C
By: Jerry Schwartz, Economic Development Manager
SUBJECT: CONSIDERATION OF EXPENDING FUNDS FROM THE ARCADIA
REDEVELOPMENT AGENCY TO PROVIDE OUTSIDE EXPERTISE TO
THE ARCADIA DOWNTOWN BUSINESS ASSOCIATION
Recommendation: Provide Direction
BACKGROUND
The Arcadia Downtown Business Association held its first meeting in June 2010. They
have met monthly since then. While the first meeting was arranged by the Arcadia
Chamber of Commerce, the business community quickly took over coordinating the
meetings and the direction of the group. They established a "core group" that has held
monthly meetings since July 2010, and focuses on planning the monthly Association
meetings and developing direction for consideration by the Association. From this core
group, officers and a Board of Directors has been established.
The Agency Board held a Study Session regarding the Arcadia Downtown Business
Association at the January 18 meeting. The Agency heard from Matt McSweeney, the
Chair of the Association about its accomplishments to date and its request to utilize
some outside expertise to help move them forward. The Agency requested that staff
provide some options including costs, for providing that expertise.
DISCUSSION
Staff contacted three consultants that provide assistance to downtown business
organizations, usually, but not always, in the formation of a Business Improvement
District (BID). The Arcadia Downtown Business Association (Association) has not
decided if it wants to form a BID or remain as an association. However, they also
acknowledge that, despite hosting some speakers from other area BIDs, they still have
a great deal to learn about them. From speaking with the consultants, one suggestion
was that the Association should form itself as a legal entity regardless of the decision
about becoming a BID. At least one of the proposals from the consultants includes
assistance with that process. A summary of the recommended steps is shown below as
a progression of costs depending on choices made by the Association.
• Phase 1 — Consultant meets with City and downtown group to discuss financial
and organizational options, allowing the Association to understand various
means to provide resources to meet the needs and goals of the downtown
stakeholders. The Consultant would help the Association to form a legal entity.
Final product will be a feasibility analysis on forming a BID, including pros and
cons. This phase is recommended, whether or not the Association decides to
form a BID. The cost of this phase is estimated at $20,000.
• Phase 2(a) — If the Association decides, after working with the consultant and
talking to the business people that they want to form a BID, they will want to
choose which type to pursue. A Business -based BID (BBID) assesses and is run
by business owners rather than property owners. A Property -based BID (PBID)
assesses and is run by property owners. If they choose to pursue BBID, the
process is simpler, less time consuming, and less costly. The main difference is
that a BBID can be done under a State Law that predates Proposition 218, while
a PBID is subject to a Prop 218 vote. With a BBID, the consultant would work
with the businesses to develop a set of programs to be implemented by the
BBID, and develop a budget and assessment methodology to be used to fund
programs and activities. There would be outreach to the businesses to develop
consensus on the programming and assessment. A public hearing by the City
Council would be required and coordinated with the consultant. The cost of this
phase is estimated at $22,500.
• Phase 2(b) — If the Association decides to form a PBID, it is a process that takes
9 — 12 months to complete. The steps include an engineer's report, the
development of a data base, decision on assessment methodology, and outreach
to other stakeholders, developing consensus, and establish a governance
structure. There would be additional outreach before a vote by property owners,
and a public hearing process with the City Council. Since this process must
conform to the requirements of Proposition 218, the voting requirements are
more specific than for a BBID. The cost of this phase is estimated at $50,000.
It is important to note that if the downtown businesses decide to form a BID, they would
either pursue Phase 2(a) or Phase 2(b). They would not have to complete both phases.
An additional option would be to commission a retail recruitment study for the
downtown. A retail recruitment study analyzes the uses currently in the downtown, the
available sites, the zoning, and demographics, and prepares a report on retailers that
might fit in the downtown area. It also provides a strategy to pursue these retailers.
This study can be done as an individual step or it could be done in concert with the
choice of the Association to become a BID or remain as an association. In any event, it
is recommended that this step be considered after the "Phased" work has been
completed. The cost of the retail recruitment study is estimated at $100,000.
Arcadia Downtown Business Association
February 15, 2011
Page 2
SUMMARY
There are several formats in which assistance could be provided to the Arcadia
Downtown Business Association. To summarize:
• Phase 1 — Assist with legal formation, strategize, and decide on format. Cost -
$20,000.
• Phase 2(a) — Business based BID (BBID). Cost - $22,500; total cost of $42,500.
• Phase 2(b) — Property based BID (PBID). Cost - $50,000; total cost of $70,000.
• Additional option — Retail Recruitment Study. Cost - $100,000.
FISCAL IMPACT
The fiscal impact would depend on which selection(s) are made. At a minimum, to
provide an experienced consultant to assist the Association would cost approximately
$20,000. The cost would come from Redevelopment Agency reserves, which are
sufficient for any choices that may be made.
RECOMMENDATION
Provide Direction.
Approved: Pe-
Donald Penman
City Manager /Executive Director
Arcadia Downtown Business Association
February 15, 2011
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