The URL can be used to link to this page

Home My WebLink AboutR21-Economic Development Agency CITY OF SAN BERNARDINO ECONOMIC DEVELOPMENT AGENCY ,.,-- - FROM: Emil A. Marzullo Interim Executive Director SUBJECT: Formation of a Property and Business Improvement District for tbe San Bernardino Auto Center (Soutbeast Industrial Park and IVDA Redevelopment Project Areas) DATE: January 29, 2009 SvnoDsis of Previous Commission/Council/Committee Action(s): On January 22, 2009, Redevelopment Committee Members Johnson, Baxter and Brinker unanimously voted to recommend that the Mayor and Common Council andlor the Community Development Commission consider this action for approval. Recommended Motion(s): (Mavor and Common Council) Resolution of Intent of the Mayor and Common Council of the City of San Bernardino providing for the fonnation of a Property and Business hnprovement District within a certain area of the City of San Bernardino and taking other actions in connection therewith (Auto Center PBID) (Southeast Industrial Park and NDA Redevelopment Project Areas) - Contact Person(s): Colin Stran~e Phone: (909) 663-1044 Project Area(s): Southeast Industrial Park and IVDA Redevelopment Project Areas Ward(s): 3"' Supporting Data Attached: o Staff Report lirResolution(s) 0 Agreement(s)/Contract(s) 0 Map(s) 0 Letter(s) Budget Authority: N/A N/A FUNDING REQUIREMENTS: Amount: $ -0- Source: Signature: t!2 ~ Cf-) Emil A. Marzullo, Interim Executive Director Fiscal Review: Commission/Council Notes: - P:\Asenda.s\Comm De\' Commission\CDC 2009\02-02-09 AutoCllIlter PSn> Final Slt.doc COMMISSION MEETING AGENDA Meeting Date: 02/0212009 Agenda Item Number: j ~, ECONOMIC DEVELOPMENT AGENCY .- ~ STAFF REPORT FORMATION OF A PROPERTY AND BUSINESS IMPROVEMENT DISTRICT FOR THE SAN BERNARDINO AUTO CENTER (SOUTHEAST INDUSTRIAL PARK AND IVDA REDEVELOPMENT PROJECT AREAS) BACKGROUND: Thirty-five years ago, California enacted legislation allowing the formation of Business Improvement Districts ("BID's"), later amended in 1994 to allow the formation of Property and Business Improvement Districts ("PBID's"), and thus provide businesses and property owners, in an area specified by the property owners to be assessed for a specific period of time (usually five years) for a particular purpose, as defined by the BID or PBID, such as enhanced security, maintenance, marketing, etc, Before the assessment can take place, the businesses or property owners in the specified area must attain over 50% of the vote in favor of the formation, The district will also choose their preferred method of assessment, which could be based upon calculations such as square footage of the building or property or linear footage, etc., prior to the vote all as shall be contained in the Engineer's Report to be submitted and approved at a later date upon formation of the PBID by the Council. -........ If the ballot is successful, all businesses or property owners must participate in the district and the assessment is levied on a separate line item on their annual County property tax bill. The annual assessment must be returned to the PBID's executive by the City and cannot be used as a substitute for City services currently in place, The ultimate purpose of a PBID is to enhance the level of City services currently in place, not to replace them, PBID's have a five-year sunset clause but can be renewed or amended by ballot, and their borders can also be increased by ballot There are currently in excess of 80 PBID's in the State ofCalifomia with an approximate renewal rate of90%, - CURRENT ISSUE: The San Bernardino Auto Mall (the "Auto Mall") has, since its inception, been San Bernardino's premier sales tax generator generating over $3 million for the City in 2004 but shrinking to an estimated $1.8 million for 2008 (based upon the first three quarters performance), In 2004, there were ten dealerships at the Auto Mall offering more than 12 different car makes, tod:W three dealerships remain offering only five different makes. In an effort to save what remains of the Auto Mall, and with the hope of attracting new members to the vacant dealership buildings, the remaining Auto Mall owners have developed a coalition in order to form a PBID designed to convey special benefits to the properties within the PBID, including marketing efforts to enhance and support the vitality of the auto dealers and help them compete in the regional marketplace, and clean and safe programs which will provide a cleaner and safer environment for the businesses, employees and customers, - By obtaining 100% participation, the five individual properties included in the PBID estimate that they will raise an additional $243,675 per annum for cooperative marketing and maintenance programs, and that through joint marketing and maintenance activities they will achieve economies of scale over the current individual undertakings, Certain notice requirements are mandated by Article XmD of the State Constitution and are further set forth and implemented pursuant to Government Code Section 53753 to impose a forty-five (45) day notice requirement prior to the public hearing on the imposition of an assessment such as that ~ P:lAJ:rndas\Comm Dev Commissiow.CDC 2009\02-02-09 AUlD O~lller POlO FLna] SR_doc COMMISSION MEETING AGENDA Meeting Date: 02102/2009 A2enda Item Number: Economic Development Agency Staff Report Auto Mall PBID Page 2 ,,~ _ required for the PBID. The final fOffi1ation of the PBID cannot occur sooner than March 18,2009, which is the 45th day after February 2, 2009. The necessary public hearing on the formation of the PBID will thus be set for Monday, April 6, 2009, at 4:30PM which is the next available regular meeting date of the Council after the conclusion of the 45-day notice period, In light of the extremely challenging current business climate, and to be able to benefit from the PBID activities immediately rather than wait over a year for the first property tax assessments to be reimbursed through the County, the Agency proposes to advance the amount of the five-year assessment to the Auto Mall PBID on an as needed basis upon receipt of invoices to be repaid to the Agency from the property tax assessments in the ensuing years, The assessments are secured by the properties themselves through the property tax rolls, minimizing the cost of the principal amount to the Agency" The PBID formation requires submission of petitions from property owners representing more than 50% of total assessments, In this instance, the petitions amount to 100%. After the formation of the PBID has been approved by the Mayor and Common Council at a later date, the PBID will be managed by the existing Auto Plaza Owners Association Non-Profit Corporation. As part of the PBID formation process, Proposition 2 I 8 requires a report to be prepared as to any new assessment. Such report in the form of the Engineer's Report will be prepared by a licensed engineer which in this case will be KLI Finance, Inc., the engineering consultants responsible for the formation of the Auto Center PBID, ,~, ENVIRONMENTAL IMP ACT: - The Agency has reviewed this project under the provisions of the California Environmental Quality Act ("CEQA"), The Agency has determined that the proposed creation of a Property and Business Improvement District (PBID) is exempt pursuant to Chapter 2,6, Section 21080 of the Public Resources Code, CEQA statutes, and Section I 5061 (b)(3), Review for Exemptions, of the CEQA Guidelines, FISCAL IMPACT: There is presently no adverse fiscal impact to the City, All costs associated with the formation of the PBID will be advanced by the Agency, Upon the formation of the PBID by the subsequent actions of the Mayor and Common Council, a separate action of the Community Development Commission will be proposed to authorize the advance in the amount of $1,218,372 of Agency Funds to be reimbursed over five years by the PBID and secured by the three dealerships involving five individual properties, RECOMMENDATION: That the Mayor and Common Council adopt the attached Resolution, il~ (f-) Emil A. Marzullo, Interim Executive Director ,__r,,,. - P:\Agendas'.Comm De" lomm;ss,onCDC 200902-02_09 AUla Cenlcr PBID Final SR,doc COMMISSION MEETING AGENDA Meeting Date: 02/02/2009 Agenda Item Number: 1 ,--- ''-" 2 3 4 5 6 7 8 11 12 13 -- 14 ....... 15 16 17 18 19 20 21 22 24 25 26 ,,- 27 - 28 RESOLUTION NO. RESOLUTION OF INTENT OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO PROVIDING FOR THE FORMATION OF A PROPERTY AND BUSINESS IMPROVEMENT DISTRICT WITHIN A CERTAIN AREA OF THE CITY OF SAN BERNARDINO AND TAKING OTHER ACTIONS IN CONNECTION THEREWITH (AUTO CENTER PBID) (SOUTHEAST INDUSTRIAL PARK AND IVDA REDEVELOPMENT PROJECT AREAS) WHEREAS, the laws of the State of California provide that cities and counties may form a Property and Business Improvement District ("PBID") pursuant to the Property and Business 9 Improvement District Law of 1994 (the "PBID Law") for the purposes of and pursuant to the 10 provisions of the PBID Law; and WHEREAS, the City has received a petition attached hereto as Exhibit "A" and incorporated herein by reference as duly executed and delivered by the requisite number of property owners as required by Section 36621(a) of the PBID Law seeking this Mayor and Common Council of the City of San Bernardino ("Council") to initiate proceedings for the formation of a PBID for the area generally bounded by Show Case Drive and Century A venue on the north, EI Camino Real on the east, Show Case Drive on the south and Auto Plaza Drive on the west, which area is generally known and referred to as the "San Bernardino Auto Center"; and WHEREAS, the petition as submitted by the property owners in the San Bernardino Auto Center complies with the requirements of the PBID Law and the City of San Bernardino (the "City") 'intends to adopt this Resolution to declare its intent to form such requested PBID for the purposes as set forth in the petition and in the PBID Law and to take such other actions relative thereto; and 23 WHEREAS, as stated in the Management District Plan as submitted by the property owners executing and delivering the above referenced petition, the purposes of the proposed PBID shall be for the undertaking of additional security patrols, enhanced maintenance measures, increased landscaping features, enhanced marketing activities, improved signage and street lighting, graffiti removal, and other similar activities and matters and capital improvements as may be permitted I P:\AgendaslJlesolutions\Resolutions\2009\OZ-02-09 Property &. Busine!S Improvement District (PBID) MCC Reso.doc ..'-- 1 under the PBID Law and all as set further forth in the San Bernardino Auto Center PBID _ 2 Management District Plan; and ,- - 18 19 20 21 22 23 24 25 26 ,.,."""" 27 - 28 3 WHEREAS, the City is required to conduct a noticed public hearing on the formation of the 4 PBID for the San Bernardino Auto Center and to subsequently consider and adopt a Resolution 0 5 Formation as required pursuant to Section 33625 of the PBID Law; and 6 7 8 9 10 11 12 WHEREAS, the City intends that assessments as shall be levied on the real property, and not on the businesses, within the proposed boundaries of the PBID for the San Bernardino Auto Center shall be due and payable in the same manner as with other real property general taxes, special property taxes and other assessments all in the manner as provided in Section 36631, et seq., of the PBID Law; and WHEREAS, the City does not presently intend to provide for the issuance of bonds to fund 13 the activities of the proposed PBID but intends that the Redevelopment Agency of the City of San 14 Bernardino (the "Agency") will provide a loan of funds pursuant to duly approved and executed 15 written financial funding agreements to the PBID which shall be repaid to the Agency, without 16 interest, from the collection of the assessments to be levied against the participating properties 17 within the boundaries of the proposed PBID; and WHEREAS, the City will rely upon the currently established and existing Auto Center Dealers' Association (the "Association") to provide the governance of the proposed PBlD as required pursuant to Section 36650, et seq., of the PBID Law, and such Association shall provide all other reports, take actions and comply with the PBID Law and shall be responsible to implement the Management District Plan to the satisfaction of the City; and WHEREAS, it is the intent of the City that the proposed PBID shall have an initial term of five (5) years as provided in Section 36622(h) of the PBID Law subject to any renewals of such term as may be granted by the City at a later date in conformity with the PBID Law; and WHEREAS, the City is required to set a public hearing to be conducted by this Council in accordance with Section 336621(c)(2) all as further provided in this Resolution. 2 P:\Agendu\Resolmions\R60lmions\2009\0Z.QZ-09 Property" Business Improvement DistriCl (PBID) MCC Resodot ,....... 1 NOW, THEREFORE, IT IS HEREBY RESOLVED, DETERMINED AND ORDERED BY ___ 2 THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO, AS 3 FOLLOWS: 4 ,-. 14 ~ 17 18 19 20 21 22 23 24 25 26 27 ~ 28 Section 1. The Council hereby find and determine that the recitals set forth above are true 5 and correct in all respects and the petition as filed by the property owners seeking this Council to 6 cause the formation of the proposed PBID is attached hereto as Exhibit "A". 7 8 9 10 11 12 13 Section 2. (a) The Council hereby declare their intent to form the requested PBID for the purposes as set forth in the recitals hereto which shall include, but not be limited to, the undertaking of additional security patrols, enhanced security measures, increased landscaping features, improved signage and street lighting, graffiti removal, and other similar activities and matters and capital improvements all as may be permitted under the PBID Law and as further set forth in the Management District Plan. The proposed boundaries of the PBID are generally described as follows: Show Case Drive and Century Avenue on the north, El Camino Real on the east, Show Case Drive on the south and Auto Plaza Drive on the west, which area is generally known and 15 16 referred to as the "San Bernardino Auto Center". (b) The Council further state that it is the intent hereof to levy assessments on the real property, and not on the businesses, within the proposed boundaries of the PBID for the San Bernardino Auto Center which assessments shall be due and payable in the same manner as with other real property general taxes, special property taxes and other assessments all in the manner as provided in Section 36631, et seq., of the PBID Law. (c) This Council does not presently intend to provide for the issuance of bonds to fund the activities of the proposed PBID, but it is the intent hereof to have the Agency provide a loan of funds pursuant to duly approved and executed written financial funding agreements to the PBID which shall be repaid to the Agency, without interest, from the collection of the assessments to be levied against the participating properties within the boundaries of the proposed PBID. 3 P:\Agendas\ResoJutioos\Resolutions\2009\02.02.09 Property k Businc" Improvement District (PBID) MCC Rcso_doc ~- 1 Section 3. (a) The Council hereby order and direct that notice be published in the manner ___ 2 required by law for a public hearing on the formation of the PBill for the San Bernardino Auto 3 Center to be conducted by this Council as follows: ,- 14 ~ --- 4 5 Date: Monday, April 6, 2009 4:30 p.m, San Bernardino Council Chambers Time: Location: 6 7 8 9 10 11 12 13 300 North "D" Street San Bernardino, CA 92401 (b) The City Clerk is hereby authorized and directed to cause such notice of public hearing to be published in the Sun Newspaper by two (2) separate publications with one (1) publication in each of the preceding weeks prior to the scheduled date of the public hearing and to mail said notice via US Postal Service, registered mail, to the property owners listed on Exhibit "A" who have , executed and delivered their petition to this Council. Section 4. This Resolution shall take effect in the manner required by the City Charter after 15 the approval and execution hereof. 16 III 17 III 18 III 19 III 20 21 III 22 III 23 III 24 III 25 26 III 27 III 28 4 P:\Agendas\Resolutions\Resolutionsl2009\02-02-09 Property &: Business Improvement District (PBID) MeC Rcso_doc ....- '-' - - '-' 1 2 3 4 5 RESOLUTION OF INTENT OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO PROVIDING FOR THE FORMATION OF A PROPERTY AND BUSINESS IMPROVEMENT DISTRICT WITHIN A CERTAIN AREA OF THE CITY OF SAN BERNARDINO AND TAKING OTHER ACTIONS IN CONNECTION THEREWITH (AUTO CENTER PBm) (SOUTHEAST INDUSTRIAL PARK AND IVDA REDEVELOPMENT PROJECT AREAS) 6 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and 7 Common Council 'of the City of San Bernardino at a meeting 8 thereof, held on the day of ,2009, by the following vote to wit: 9 Council Members: Aves Navs Abstain Absent 10 ESTRADA 11 BAXTER 12 BRINKER 13 VACANT 14 KELLEY 15 JOHNSON 16 MC CAMMACK 17 18 19 Rachel G. Clark, City Clerk 20 The foregoing Resolution is hereby approved this 21 22 23 24 25 26 ,2009. day of Patrick J. Morris, Mayor City of San Bernardino 27 28 By: 5 P:\Agendas\Re$olutions\Re50lutions\2009\02-02-09 Property &: Business Improvement DiStrict (PBID) MeC R.eso_dot 1 EXHIBIT "A" ,~......... - 2 3 Property Owners' Petition Seeking the Formation a PBID 4 (Auto Center) 5 6 7 8 9 10 11 12 13 14 - 15 16 17 18 19 20 21 22 23 24 25 26 ,- 27 '-" 28 6 P:\Agendas\ResolutionslResolutions\2009\02-02.09 Property & Business Improvement District (PBID) MCC Reso,doc .- PRELIMINARY PETITION TO FORM THE AUTO CENTER PROPERTY -BASED BUSINESS IMPROVEMENT DISTRICT {Pursuant to See. 36600 et seq. of the Calif. Streets and Highway Code} ~ This is a petition to initiate special assessment proceedings to form the Property Based Assessment District in accordance with the Property and Business Improvement District Law at 1994, California streets and Highways Code Sections 36600 et seq., for the purpose of undertaking and implementing the Management District Plan, a summary of which is attached. Legal Owner: DTM Land Company Lie Owner % ofTotal Assessment: 42.94% APN: Parcel Address (if known) Parcel Assessment 0141-251-74 735 Show Case Dr S $523,222 Total $523,222 - ~ ./' YES, I approve of the proposed assessment of $523,222 on the parcel(sl ~d on this preliminary petition. D.T tY1. Ut1d CbI11p.tny', LLC- 1Jll1/1J) MIfI7(! lillY, MA1I~ch.vldP2fhe:tlbfl~t), CDIn (Print) Nome and Title of Owner of Record Email address ~ tJ~~;;U or an Authori Repres talive of?t::O . . I Authorized Representative Date Please return signed and dated Preliminary Petition to: City ot San Bemardino Economic Development Agency 201 N. "E" Street. Suite 301 San Bernardino, CA 92401 ------- - c,.~ PRELIMINARY PETITION TO FORM THE AUTO CENTER PROPERTY -BASED BUSINESS IMPROVEMENT DISTRICT (Pursuant to Sec. 36600 et seq. of the Calif. Streets and Highway Code) '- This is a petition to initiate special assessment proceedings to form the Properly Based Assessment District in accordance with the Property and Business Improvement District Law of 1994. California streets and Highways Code Sections 36600 et seq.. for the purpose of undertaking and implementing the Management District Plan. a summary of which is attached. legal Owner: Cummings. Clifford R Owner % of Total Assessment: 35.56% APN: Parcel Address (d known) Parcel Assessment 0141-251-55 0141-251-59 0141-251-61 S Show Case Dr 735 Show Case Dr N 650 Auto Center Dr $86.650 $173.301 $173.301 ..-. Total $433.252 ~ YES. I approve of the proposed assessment of $433.252 on the parcel(s) identified on this preliminary petition. /' t! '-t F~ a - <2'vvr_ ,-,~ J'fll~5 {lell......"", .v,~~ !iin'T'"'.Ar';iPJ. i.." (Print) Name and Title of Owner of Record Ema address ' or on Authorized Representative ern - Jjf- t t;y ( Phone No. /11 uthorized Representative Dote ...- se return signed and dated Preliminary Pelllion to: City af San Bernardino Economic Development Agency 201 N. "E" Street. Suite 301 San Bernardino. CA 92401 ~ ._. PRELIMINARY PETITION TO FORM THE AUTO CENTER PROPERTY -BASED BUSINESS IMPROVEMENT DISTRICT {Pursuant to Sec. 36600 et seq. of the Calif. Streets and Highway Code} '-' This is a petition to initiate special assessment proceedings to form the Property Based Assessment District in accordance with the Property and Business Improvement District Law of 1994, California streets and Highways Code Sections 36600 et seq., for the purpose of undertaking and implementing the Management District Plan, a summary of which is attached. Legal Owner: TTL Lie Owner % of Total Assessment: 21.50% APN: Parcel Address (if known) Parcel Assessment 0141-251-60 645 Auto Center Dr $261,898 Total $26 l,l198 .""" --- ~ YES, I approve of the proposed assessment of $261,898 on the parcel(s) identified on this preliminary petition. (Y\1~A6L Q.. G Ge,EA... (Print) Name and TItle of Owner of Reco~ or an Authorized Representative 'f~ ICI&fT' rn.1' Email address bm ;h; "'-, Q" Phone No. 1\0'\ - -e~ <l.- '/0;0 ~A~ Signature of Owner of Record or Authorized Representative I - a~ ~o '\ Date -_. Please return signed and dated Preftminal)' Petition to: CIIy of San Bernardino Economic Development Agency 201 N. "E" Street, Suite 301 San Bernardino, CA 92401 - - Auto Center Business Improvement District Management District Plan January J 3, 2009 Page J 019 '-' SECTION 1: Management District Plan Summary Developed by a coalition of the auto center property owners, the Auto Center Business Improvement District (PBID) is a proposed benefit assessment district designed to improve and convey special benefits to properties within the Auto Center, The PBID is being established pursuant to the state law: the "Property and Business Improvement District Law of 1994", as amended. The Auto Center PBID will provide new services and activities, including: public security and safety, enhanced rT]aintenance, and marketing activities above and beyond what the City currently provid~s;' location: The PBID boundary area is known as the Auto Centeroff of Highway 215. There are 5 parcels that are included in the PBID boundary. A mc]p of the proposed PBID boundary is attached. Services and Activities Provided: ,....,,-. . Marketing Activities: Activities to enhance and support the vitality of the auto dealers and to help them compete iQ. the regional marketplace. . Clean and Safe Programs:! pr6grCJrT1s thafp(9vide a safer and cleaner environment for businesses, slTlpioyeesoQ.d,c:;ust6/"flers, ";':"'h-' -,:,. ,.i,,~",-, - Budaei: Total PBID budgelfor its first yebr, ot' operation is $243,675. The total 5-year budget is $1,218,3720' "" Method of Financifici: Levy of assessments upon real property that specially benefit from the proposed services qndactivities, Assessmer,ts:Annual ass~ssrnents are calculated based upon each property's special benefitreceivelil from the identified services and activities and their relative cost. The assessment is based on the estimated expenses each dealership will pay for these services', " CaD: The PBID budget and assessments may increase by as much as 3% per year to keep pace with the consumer price index and other program costs. Every year the Owner's Associationvv!lIdetermine an annual budget increase, if any. Collection: Assessments will appear as a separate line item on the annual County of San Bernardino Property Tax bills. City Services: The City of San Bernardino has established a policy to maintain the level of services that they should be providing within the PBID after the PBID is established. '- "."~," Auto Center Business Improvement District Management District Plan Jan uary 13, 2009 Page 2 of 9 - District Formation: PBID formation requires submission of petitions from property owners representing more than 50% of total assessments. Following a public hearing, if ballots, weighted by assessments, submitted in opposition to the assessment do not exceed the ballots submitted in favor of the assessments, the City Council may authorize the levy of assessments, Duration: Per state law, the PBID will have a five year life commencing January 1, 2010 and terminating December 31, 2014 unless the property ownerS within the PBID elect to renew the District. Governance: It is recommended, but not required, that the City contract with a non- profit organization to run the day-to-day operations of the PBID. a is anticipated that the City will contract with the San Bernardino Avto Center AssoCiation to act as the non-profit organization. The PBID will have a governing board, the Owners Association, pursuant to Section 36651 of the Streets and Highways Code that will anl1ually review the PBID budgets and policies within the limitations of the Management District Plan and file annual reports with the City Council. The non-profit agency will work closely with the City Council Offices and the City of San Bernardino. ~_... - -