HomeMy WebLinkAboutR21-Economic Development
CITY OF SAN BERNARDINO
ECONOMIC DEVELOPMENT AGENCY
ORIGINAL
FROM: Emil A. Marzullo
Interim Executi ve Director
SUBJECT:
Formation of a Property and Business
Improvement District for the San Bernardino
Anto Center (Sontheast Indnstrial Park and
IVDA Redevelopment Project Areas)
DATE:
January 29,2009
________________n_________________________________________----------------------------------------------------------------------------------------------------------------------------------------
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 and/or the Community Development Commission consider this action for approval.
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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
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)
________________________________________________________________________________________________________________________________u__________________________________________-----------------------------------
Contact Person(s):
Colin Strange
Phone:
(909) 663- I 044
Project Area(s):
Southeast Industrial Park and IVDA
Redevelopment Project Areas
Ward(s):
3"
Supporting Data Attached:
"" Staff Report ~esolution(s) 0 Agreement(s)/Contract(s) 0 Map(s) 0 Letter(s)
Budget Authority:
N/A
N/A
FUNDING REQUIREMENTS:
Amount: $
-0-
Source:
'.."= tfl;L CI-> ",,,,eo",. k(,.~,. -!.,;""!1:,,
Emil A. Marzullo, Interim Executive Director Barbara Lindseth, Administrative Services irector
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Commission/Council Notes: c:.sO 0200'7'- e>< - ---- m___ m_____ mmm
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P\Agendas\Comm Dev Commission\CDC 2009\02-02-09 Auto Center PBID Final SRdoc
COMMISSION MEETING AGENDA
Meeting Date: 02/02/2009
Agenda Item Number: --a.aL
ECONOMIC DEVELOPMENT AGENCY
ST AFF 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 fonnation 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.
ff thc 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 PEID'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 of California
with an approximate renewal rate 01'90%.
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 perfonnance). In 2004, there were ten dealerships at the Auto Mall
offering more than 12 different car makes, today three dealerships remain offering only five different makes.
In an eftolt 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 fonn a PEID
designed to convey special benefits to the propelties 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 thc 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 pcr 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 XIIID of the Statc 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: Agendas ('''TOm j)~\. ('0"'''11<;<;;(\11 ("DC :'009 O:'-02-0Y AlIto l'ell(cr PHID Final SR.doc
COMMISSION MEETING AGENDA
Meeting Date: 02/0212009
Agenda Item Number:
Economic Development Agency Staff Report
Auto Mall PBiD
Page 2
required for the PBID. The final fornlation of the PBID cannot occur sooner than March 18,2009, which is
the 45th day atter Fehruary 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 he 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 prope11ies themselves through the
prope11y 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-Prolit Corporation.
As part of the PBID fi.mnation process, Proposition 218 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 fonnation of the Auto
Center PBID.
ENVIRONMENTAL IMPACT:
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 15061 (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 fonnation of the PBID
will be advanced by the Agency. Upon the fonnation 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.
~~ Cf-)
Emil A, Marzullo, Interim Executive Director
P: AgLnd,,, Comm Dey l"mmisSlOJl CDC "1)0<) O~-()2-()c) AUlO Center rmD Final SKdo<:
COMMISSION MEETING AGENDA
Meeting Date: 02/02/2009
Agenda Item N nmber:
1
2
3
4
5
6
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 PBlD) (SOUTHEAST INDUSTRIAL PARK
AND IVDA REDEVELOPMENT PROJECT AREAS)
7 WHEREAS, the laws of the State of California provide that cities and counties may form a
8 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
11
WHEREAS, the City has received a petition attached hereto as Exhibit "A" and incorporated
12
herein by reference as duly executed and delivered by the requisite number of property owners as
13
required by Section 36621(a) of the PBID Law seeking this Mayor and Common Council of the
14
City of San Bernardino ("Council") to initiate proceedings for the formation of a PBID for the area
15
generally bounded by Show Case Drive and Century Avenue on the north, El Camino Real on the
16
east, Show Case Drive on the south and Auto Plaza Drive on the west, which area is generally
17
known and referred to as the "San Bernardino Auto Center"; and
18
19
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
20
"City") intends to adopt this Resolution to declare its intent to form such requested PBID for the
21
purposes as set forth in the petition and in the PBID Law and to take such other actions relative
22
thereto; and
23
24 WHEREAS, as stated in the Management District Plan as submitted by the property owners
25 executing and delivering the above referenced petition, the purposes of the proposed PBID shall be
26 for the undertaking of additional security patrols, enhanced maintenance measures, increased
27 landscaping features, enhanced marketing activities, improved signage and street lighting, graffiti
28 removal, and other similar activities and matters and capital improvements as may be permitted
1
P\Agendas\Resolutions\Resolutions\2009\02-02-09 Property &. BLlsiness Improvement District (PBID) MeC ResQ,doc
1 under the PBID Law and all as set further forth III the San Bernardino Auto Center PBID
2 Management District Plan; and
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
WHEREAS, the City intends that assessments as shall be levied on the real property, and not
7
8
9
10
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
11
12
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
18 WHEREAS, the City will rely upon the currently established and existing Auto Center
19 Dealers' Association (the "Association") to provide the governance of the proposed PBID as
20 required pursuant to Section 36650, et seq., of the PBID Law, and such Association shall provide all
21 other reports, take actions and comply with the PBID Law and shall be responsible to implement the
22 Management District Plan to the satisfaction of the City; and
23
WHEREAS, it is the intent of the City that the proposed PBID shall have an initial term of
24
five (5) years as provided in Section 36622(h) of the PBID Law subject to any renewals of such
25
term as may be granted by the City at a later date in conformity with the PBID Law; and
26
27
28
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
?\Ag:endasIResolUlionslResolution.\2009\OZ-02-09 Propelt)'& Business Improvement District (PBID) MCC Resodoc
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
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 PBlD is attached hereto as Exhibit "A".
7
Section 2. (a) The Council hereby declare their intent to form the requested PBlD for the
8
9
10
11
12
13
14
15
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 PBlD Law and as further set forth in the
Management District Plan. The proposed boundaries of the PBlD are generally described as
follows: Show Case Drive and Century Avenue 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".
16
17
(b) The Council further state that it is the intent hereof to levy assessments on the real
18 property, and not on the businesses, within the proposed boundaries of the PBID for the San
19 Bernardino Auto Center which assessments shall be due and payable in the same manner as with
20 other real property general taxes, special property taxes and other assessments all in the manner as
21 provided in Section 36631, et seq., ofthe PBlD Law.
22 (c) This Council does not presently intend to provide for the issuance of bonds to fund the
23 activities of the proposed PBlD, but it is the intent hereof to have the Agency provide a loan of
24 funds pursuant to duly approved and executed written financial funding agreements to the PBID
25 which shall be repaid to the Agency, without interest, from the collection of the assessments to be
26 levied against the participating properties within the boundaries of the proposed PBID.
27
28
3
Pc\Agendas\Resolutions\Resolulions\2009\02-02.09 Property & Business Improvement District (PBID) MCC Reso.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 PBID for the San Bernardino Auto
3 Center to be conducted by this Council as follows:
4
5
6
7
8
Date:
Time:
Location:
Monday, April 6, 2009
4:30 p.m.
San Bernardino Council Chambers
300 North "D" Street
San Bernardino, CA 92401
(b) The City Clerk is hereby authorized and directed to cause such notice of public hearing
9
to be published in the Sun Newspaper by two (2) separate publications with one (I) publication in
10
11
12
13
14
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
4
P:\Agendas\Resolutions\Resolutions\2009\02-02-09 Property & Business Improvement District (PBID) Mec Resodoc
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 PBID) (SOUTHEAST INDUSTRIAL PARK
AND IVDA REDEVELOPMENT PROJECT AREAS)
6 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and
meeting
7 Common Council of the City of San Bernardino at a
8 thereof, held on the
9 Council Members:
10 ESTRADA
11 BAXTER
12
BRINKER
13
VACANT
14
KELLEY
15
JOHNSON
16 MC CAMMACK
17
18
19
20 The foregoing Resolution is hereby approved this
21
22
23
,2009, by the following vote to wit:
day of
Aves
Navs
Abstain
Absent
Rachel G. Clark, City Clerk
day of
,2009.
Patrick J. Morris, Mayor
City of San Bernardino
24
Approved as to Form:
1'~
25
26
27
28
By:
es F. Penman, City Attorney
5
P\Agendas\Rcsolutions\Rc~olutions\1009\O:::-02-09 Property &; Busine~s Improvement District (PBID) MCC Reso.doc
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:\AgendasIResolulions\Resolutions\2009\02.02-09 Propeny & Business Improvement District (PBID) MCC Resodoc
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: DTM land Company lie
Owner % oITotal Assessment: 42.94%
APN:
Parcel Address (if known)
Parcel Assessment
0141-251-74
735 Show Cose Dr S
$523.222
Total $523,222
-/ YES. I approve of the proposed assessment of $523.222 on the parcells)
~d on this preliminary petition.
D.T t11. Ul1d Comptny, LLC-
7f7+ 1/ 1..D M M. II / N, MIW tlfjEI2c:h.v fel@ rne.flbn ~r') . CDm
(Print) Name and Title of Owner of Record Email address.Sb9h~r0
or an Authori Repres tative . O!7c:;l)
. .
.A1.
I
Authorized Representative
Date
Please return signed and dated Preliminary Petition to:
City of 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: Cummings, Clifford R
Owner % of Total Assessment: 35.56%
APN:
Parcel Address (if 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! I-r F/Wl-fJ ;( - (!V'!1"'" ,....-, .r14~~ {lc v""''''' '^"'~~~ Ji;W'A-58- i#A.
(Print) Name and Title of Owner of Record Ema address
or an Authorized Representative
q.n-
..0f- "C;y (
Phone No.
/'I"
uthorized Representative
Date
se return signed and dated Preliminary Petilion to:
City of San Bernardino
Economic Development Agency
201 N. "En Streel, 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 $261.898
Ix YES, I approve of the proposed assessment of $261,898 on the parcells)
identified on this preliminary petition.
(Y\\0\AcL.. ~ GIl:AGe.e-.
(Print) Name and TItle of Owner of Recor
or an Authorized Representative
'f' I?-JSS I C6Ol" N\r
Email address
s-blYl;ts; "'-, ""'
Phone No.
'\0'\ - 'i2~ <L- 'IO~
~A~
J - &.:L -0,\
Date
Signature of Owner of Record or Authorized Representative
Please return signed and dated Pre6minary Petition to:
City 01 San Bernardino
Economic Development Agency
201 N. "E" Street, Suite 301
San Bernardino, CA 92401
Auto Center
Business Improvement District
Monagement District Plan
January 13, 2009
Page 10f9
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 maintenance, and marketing
activities above and beyond what the City currently provides;
Location: The PBID boundary area is known as the Auto Center off of Highway 215.
There are 5 parcels that are included in the PBID boundary. A map 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 in the regional marketplace.
. Clean and Safe Programs: Programs that. provide a safer and cleaner
environment for businesses. employees and customers.
Budoef: Total PBID budget for its first year of operation is $243.675. The total 5-year
budget is $1.218.372:
Method of Financino: Levy of assessments upon real property that specially benefit
from the proposed services and activities.
Assessments: Annual assessments are calculated based upon each property's special
benefit received 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. ...
Cap: 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 Association~i11 determine 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
January 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. It is anticipated that
the City will contract with the San Bernardino Auto 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 annually 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 wark closely with the City Council Offices and the City of San
Bernardino.