HomeMy WebLinkAboutR32-Economic Development Agency
CITY OF SAN BERNARDINO
ECONOMIC DEVELOPMENT AGENCY
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FROM:
Emil A. Marzullo
Interim Executive Director
SUBJECT:
Public Hearing - Formation of an Auto Center
Property and Bosioess Improvement District
("PBID") (Sootbeast Industrial Park and
IVDA Redevelopment Project Areas)
DATE: March 31, 2009
Svnoosis of Previous Commission/Council/Committee Actioo(s):
On January 22, 2009, Redevelopment Committee Members Johnson, Baxter and Brinker unanimously voted to recommend that
the Mayor and Common Council and/or the Community Development Commission consider this action for approval.
On February 2, 2009, the Mayor and Common Council of the City of San Bernardino ("Council") voted to approve Resolution
No. 2009-24, thereby declaring their intent to fonn a PBm for the purposes set forth in said Resolution.
Recommended Motion(s):
Open/Close Public Hearing
(Mavor and Common Coooeil)
Resolution of the Mayor and Common Council of the City of San Bernardino approving the fonnation of an Auto
Center Property and Business lmprovement District ("Districf'), fixing the boundaries thereof and providing for the
levy of assessments and taking other actions in connection therewith (Southeast Industrial Park and IVDA
Redevelopment Project Areas)
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(Community Develonment Commission)
Resolutioo of the Community Development Commission of the City of San Bernardino approving and authorizing
fimding equal to $1,218,372 pursuant to the formation of the Auto Center Property and Business lmprovement District
("District") and fimding the operations and activities of the District (Southeast Industrial Park and IVDA
Redevelopment Project Areas)
Project Area(s):
Colin Strange
Southeast Industrial Park and IVDA
Redevelopment Project Areas
Phone:
(909) 663.1044
Contact Person(s):
Ward(s):
3'"
Supporting Data Attached:
o Staff Report 6!1 Resolution(s) 6!1 Agreement(s)/Contract(s) 0 Map(s) 0 Letter(s)
FUNDlNG REQUIREMENTS:
Amount:
$
1,218,372
Source:
Southeast Industrial Park Tax Increment
Request Budget Authority for 2008-2009 Budget
Year
Budget Authority:
Signature: ~
. Emil A. Marzullo, Interim Executive Director
ive Services Director
Commission/Couoell Notes:
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P:v.,eodu\Comm Dev Commission\COC 2OO9\D4-06-09 'BID Formatioa. SR (Final).doc
COMMISSION MEETING AGENDA
Meeting Date: 04106/2009
Agenda Item Number: I? -; a
ECONOMIC DEVELOPMENT AGENCY
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STAFF REPORT
PUBLIC HEARING - FORMATION OF AN AUTO CENTER
PROPERTY AND BUSINESS IMPROVEMENT DISTRICT ("PBID")
(SOUTHEAST INDUSTRIAL PARK AND IVDA REDEVELOPMENT PROJECT AREAS)
BACKGROUND:
Thirty-five years ago, the State of California ("California") enacted legislation allowing the formation of
districts known as a Business Improvement District ("BID"), later amended in 1994, to allow the
formation of a Property and Business Improvement District ("PBID"). The intent of this legislation was
to thus provide businesses and property owners with a means to pay for certain business enhancement
activities 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 dermed by. the BID or PBID, such as enhanced security,
maintenance, marketing, etc. Before the assessments can be finalized, the businesses or property owners
in the specified area must attain over 50% of the vote in favor of the formation. The BID or PBID 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 such details shall be
contained in the document referred to as the Engineer's Report which is hereby submitted to the Mayor
and Common Council ("Council") for approval upon the formation of this particular PBID by the .
Council.
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If the ballot is successful, all businesses or property owners must participate in the PBID who are located
within the established boundaries, and the assessment will be levied as a separate line item on their annual
County property tax bill. The annual assessment payments as received by the City from distributions
made from the County must be remitted by the City to the San Bernardino Auto Center, a non-profit
mutual benefit corporation (the "Auto Center Non-Profit"). Such assessment payments as received by the
City 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 and not to replace such services. PBIDs 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 PBIDs in California with an approximate renewal rate of
90%.
The San Bernardino Auto Center (the "Auto Center") has, since its inception, been San Bernardino's
premier sales tax producer generating over $3 million for the City in 2004, but declining to an estimated
$1.8 million for 2008 (based upon the first three quarters performance). In 2004, there were ten
dealerships at the Auto Center offering more than 12 different car makes: Today, three dealerships
remain offering only five different makes of cars.
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In an effort to save what remains of the Auto Center and with the hope of attracting new members to the
vacant dealership buildings, the remaining three dealership owners in the Auto Center developed a
coalition in order to form a PBID. This proposed PBID would encompass five separate parcels 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. Other aspects
P,,,,-,,,IC_ Oov Comm;....1CDC 2llO'1<l4-O6-O9 PBID Fo"",,;,,, SR (Fi"")."'" COMMISSION MEETING AGENDA
Meeting Date: 04I86I20lW-
Agenda Item Number:
Economic Development Agency Staff Report
P BID Formation - SB Auto Center
Page 2
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of the program with the PBID would include clean and safe programs through higher levels of security
measures which will provide a cleaner business environment for the businesses, employees and customers
and result in increased commercial activity.
By obtaining 100% participation, the five properties included in the PBID estimate that they will raise an
additional $243,674 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. At the Council meeting of February 2, 2009, a petition to form a PBID was filed
with the Council who subsequently declared their intent to form the requested PBID subject to the notice
requirements as mandated by Article xmD of the State Constitution. The Council further set forth and
implemented procedures pursuant to Government Code Section 53753, which requires a 45-day notice
requirement prior to the public hearing on the imposition of an assessment such as that required for the
PBID.
CURRENT ISSUE:
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By obtaining 100% participation, the five individual properties included in the PBID estimate that they
will raise an additional $243,674 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. The fmal formation of the PBID could not 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 has been set for Monday, April 6, 2009, at 4:30 p.m. which was the next available regular meeting
date of the Council after the conclusion of the 45-day notice period. Notice of the Public Hearing was
published in the San Bernardino Sun newspaper on March 22, 2009 and March 29, 2009.
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 remitted
through the County tax collection process, the Agency proposes to advance the amount of the five-year
assessment to the Auto Center PBID on an as needed basis upon receipt of invoices .to be repaid to the
Agency by the Auto Center Non-Profit from the property tax assessments in the ensuing years. The
assessments are secured by the properties themselves through the property tax rolls and thus mir1imi,..;ng
the risk of repayment of the principal amount to the Agency. The Auto Center Non-Profit Promissory
Note and the Indemnification Agreement with the dealers are attached to the Commission Resolution.
The PBID formation requires submission of petitions from property owners representing more than 50"10
of total assessments. In this instance, the petitions amount to 100%. After the formation of the PBID has
been approved by the Council, the PBID will be managed by the existing San Bernardino Auto Center, a
non-profit mutual benefit corporation.
As part of the PBID formation process, Proposition 218 requires a report to be prepared as to any new
assessment. Such report in the form of the Engineer's Report has been prepared by KLI Finance, Inc., a
licensed engineer, as the engineering consultants responsible for the formation of the Auto Center PBID.
The Engineer's Report is attached to the Resolution of Formation of the Council.
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P:\Agendas\Comm Oev Commission\COC 2009\04.06.09 PBIO Fonnation SR (FinIl).doc
COMMISSION MEETING AGENDA
Meeting Date: 04106/1009
Agenda Item Number:
Economic Development Agency Staff Report
PBID Formation - SB Auto Center
Page 3
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ENVIRONMENTAL IMPACT:
This action approving the formation of a certain PBID does not meet the definition of a "project" under
Section 15378 of the California Environmental Quality Act ("CEQA").
FISCAL IMPACT:
There is presently no adverse fiscal impact to the City. All costs associated with the formation of the
PBID have been and will continue to be advanced by the Agency. Upon the formation of the PBID by the
actions of the Council to approve the Resolution of Formation, a separate action of the Community
Development Commission ('Commission") of the City of San Bernardino is proposed to authorize the
loan in an amount not to exceed $1,218,372 from Agency funds to be reimbursed over five years by the
PBID. The repayment of this loan will be obtained from the PBID assessments to be included on the
property tax bill of the three dealerships involving five individual properties.
RECOMMENDATION:
That the Mayor and Common Council and the Community Development Commission adopt the attached
Resolutions.
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~~
Emil A. Marzullo, Interim Executive Director
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P:\Ascndas\Comm Dev Commi$Sion\CDC 2009\04-06-09 PBID Formation SR (FDIIIl).dIx:
COMMISSION MEETING AGENDA
Meeting Date: 04106I2009
Agenda Item Number:
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PUBLIC NOTICE
CITY OF SAN BERNARDINO
FORMATION OF A PROPERTY AND BUSINESS IMPROVEMENT DISTRICT
SAN BERNARDINO AUTO CENTER
Notice is hereby given that the Mayor and Common Council of the City of San Bernardino
("Council") will consider a petition to form a Property and Business Improvement District
("PBlD") pursuant to the Property and Business Improvement District Law of 1994 by the San
Bernardino Auto Center Association (the "Applicant") for the purposes of undertaking 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 under the PBlD law. The Joint
Public Hearing will be held on April 6, 2009, at 4:30 p.m. or as soon thereafter as the matter may be
heard, in the City Council Chambers located at 300 North "D" Street in the City of San Bernardino
("City").
At the public hearing, the Council shall receive evidence and testimony to initiate proceedings for
the formation of the PBlD by the Applicant 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 is generally known and referred to as the "San Bernardino Auto
Center." Specifically, the properties, subject to assessment, are Assessor's Parcel Numbers 0141-
251-55; 59; 60; 61; 74 (the "Property"). The City is required to conduct a noticed public hearing on
the formation of the PBlD for the San Bernardino Auto Center, and subsequently consider and
adopt a Resolution of Formation as required pursuant to Section 33625 of the PBID law.
NOTICE IS FURTHER GIVEN that any and all persons are invited to appear before the Council
and present evidence or testimony concerning the for~going matters relating to the formation of the
San Bemardino Auto Center PBlD at the time, date and place set forth herein.
The City has reviewed the proposed formation under the California Environmental Quality Act
("CEQA") and has determined that the proposed creation of a PBlD 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.
Interested persons may contact Colin Strange, Project Manager, at (909) 663-1044 or bye-mail at
cstranlZe@sbrda.orlZ, for additional information relating to the joint public hearing and the proposed
formation of the PBlD.
NOTICE given this 19th dav of March 2009.
Notice to the Press: Please publish twice: Once on March 22, 2009 and again on March 29, 2009.
Send Proof of Publication to: Colin Strange, Project Manager
Economic Development Agency
20 I North "E" Street, Suite 30 I
San Bernardino, CA 92401
Wasana Chantha
aFrom:
ent:
To:
Subject:
glenda_sobrique@dailyjoumal.com
Thursday. March 19, 2009 9:22 AM
Wasana Chantha
Confirmation of Order 1551219 for FORMATION OF A PROPERTY AND BUSINESS
IMPROVEMENT DISTRICT SB AUTO CENTER
Dear Customer:
The order listed below has been received and processed. If you have any questions regarding this order,
please contact your ad coordinator or the phone number listed below.
Customer Account Number: 100563
Type of Notice : GPNSB - GOVERNMENT PUBLIC NOTICE-SB
Ad Description : FORMATION OF A PROPERTY AND BUSINESS IMPROVEMENT
DISTRICT SB AUTO CENTER
Our Order Number : 1551219
Newspaper : SAN BERNARDINO COUNTY SUN
Publication Date(s) : 03/22/2009,03/29/2009
Thank you for using the Daily Journal Corporation.
OGLENDA SOBRIQUE
DAILY JOURNAL CORPORATION
CALIFORNIA NEWSPAPER SERVICE BUREAU
915 E. FIRST ST., LOS ANGELES, CA 90012
Phone: (800) 788 7840 / (213)229-5300
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