Title
Staff Report for the Resolution of Intent to Establish a Community Benefit District in Downtown San Leandro and a Motion Authorizing the City Manager to Sign the City-owned Property Ballots in Support of the Community Benefit District
Staffreport
SUMMARY AND RECOMMENDATIONS
City staff and New City America, Inc. have been working with the Downtown Association and a Downtown San Leandro Property Owner Steering Committee since July 2012 on the formation of a Community Benefit District (CBD). The required 30% petition threshold of property owners in support, by weight, has been met and staff recommends that the City Council adopt the Resolution of Intent which instructs the City Clerk to mail out ballots to every affected property owner. The property owners will have no less than 45 days in which to return the mail-in ballots. Additionally, staff recommends the City Council make a motion authorizing the City Manager to sign the City-owned property ballots in support of the CBD.
BACKGROUND
The City of San Leandro, through the former Redevelopment Agency, made significant capital investments in Downtown San Leandro and funded on-going services above and beyond basic City services. These enhanced services included marketing and event support, maintenance, security, and financial assistance to businesses for façade improvements. The elimination of redevelopment by the State impacted the City's ability to continue to fund enhanced services in the Downtown. In July 2012, the City retained New City America, Inc. to assist property and business owners in the establishment of a benefit district to fund enhanced services.
New City America distributed a survey to all downtown property owners to determine their conceptual support for a benefit district and worked with a Property Owner Steering Committee to determine if there was sufficient support to move forward with the process. At an October 18, 2012 Steering Committee meeting, the committee recommended the City proceed and develop a Management Plan for a new Downtown Community Benefit District (CBD). In November 2012 this recommendation, along with a CBD enabling ordinance which allows for the creation of a Downtown CBD, was brought to the City Council for approval.
Management Plan
New City America worked with the Steering Committee and Downtown Association on the creation of a Management Plan that outlines the levels of service to be provided, the cost of the various services and a methodology to assess the costs to the benefiting parcels. On April 1, 2013 the City Council was provided an update on the Management Plan. The City Council requested one minor modification - that the maximum annual Consumer Price Index (CPI) adjustment be reduced from 5 percent to 3 percent. That recommendation is incorporated into the final plan.
Highlights of the Management Plan services and breakdown of the FY 2013-14 budget of $384,680 follows.
Downtown San Leandro CBD Services & FY 2013-14 Budget
Sidewalk Operations, Beautification and Order $234,175
Benefit Zone 1
Sidewalk and gutter sweeping - 7 days per week
Security - 5 days per week
Quarterly steam cleaning of sidewalks
Benefit Zone 2
Sidewalk and gutter sweeping - 4 days per week
Security - 5 days per week
Thrice yearly steam cleaning of sidewalks
District Identity and Streetscape Improvements $50,000
Special event underwriting, public space development, website creation and management, social media, public and media relations, business attraction
Administration and Corporate Operations $60,750
Staffing, office related expenses, General liability and other insurance, accounting, and legal
Contingency $15,387
Delinquencies and County costs
Residential Condos Enhanced Benefits $24,368
Enhanced beautification in direct vicinity of condos, pet related sidewalk operation needs, public spaces near condo blocks
The Downtown San Leandro Community Benefit District 2013 Management District Plan Summary, which includes a map of the CBD boundaries and identifies the properties in benefit zones 1 and 2, is attached. The Management Plan also includes information regarding the methodology used to allocate the costs of the various services by linear frontage, lot size or building square footage and the reasoning behind this recommended methodology. Estimates of the cost to provide the desired services were used to determine the amount to be assessed. The assessment methodology was reviewed and approved by an Assessment Engineer to ensure that it reflects the benefit of the services to be received. Details regarding the annual assessments for benefit zones 1 and 2 and residential properties are also included in the attached Management Plan Summary.
Petition & Balloting
On April 1, 2013, the City Council authorized the City Manager to sign the petition for the City properties in support of the CBD.
On April 5, 2013, the petition drive was launched and packets were mailed to all property owners in the proposed district. The packet included a letter from New City America, a flyer about how to obtain Spanish, Cantonese and Mandarin translation assistance, the petition for the property and the Management Plan Summary. The cover letter, translations flyer, a sample petition and the Management Plan summary are attached for your information.
Since April, property owners have submitted petitions to New City America and details of those in support and those opposed as of May 10, 2013 is attached in the Exhibit titled San Leandro Petition Response 5/10/2013. In summary, 35.54% of property owners, by weight, are supportive of the CBD initiative, which meets the required threshold to move to the final petition stage of the process. Petitions received by May 20 at 5pm will be included in the information presented to the City Council at the meeting that evening.
Because the petition threshold was reached, a Resolution of Intent (ROI) is before the City Council for adoption. Adoption of the resolution will bring the CBD initiative to the final balloting stage. According to the State constitution, property owners must then be allowed to submit a ballot on the formation of the district at a public hearing. By adopting the ROI, the City Council is instructing the City Clerk to mail out the ballots to every affected property owner. The property owners will have no less than 45 days in which to return the mail ballots. CBD ballots will be mailed by the City Clerk no later than May 31, 2013 and must be returned by the conclusion of the public hearing scheduled for the July 15, 2013 City Council meeting. Should 50% plus one of the ballots, by weight, be cast in favor of the CBD, the City Council can establish the CBD and authorize placement of the assessment on the Fiscal Year 2013-14 tax roll.
Timeline
May 31, 2013 CBD Ballots mailed to property owners
July 15, 2013 City Council Public Hearing, ballots counted
Early August 2013 Assessments forwarded to Alameda County Auditor/Controller
July - Dec 2013 Formation of the CBD Management Corporation
December 2013 Revenue (50%) distributed to City and forwarded to the new CBD Management Corporation
City Owned Properties
Based on the City's property ownership, the City would pay approximately $41,190 annually, or 10.7% of the total assessment. The increase in enhanced services that the CBD would provide downtown would be much greater than what the City is able to currently provide. The City currently pays $45,000 for limited maintenance and sidewalk steam cleaning and in support of events. The CBD would fund $385,000 worth of services including daily maintenance, sidewalk steam cleaning, and security to a larger area, funding for part-time staff as well as marketing and events.
The enhanced services and activation of downtown are in the best interests of businesses, property owners and the community. The businesses will benefit from increased commerce and improved identity, property owners will benefit from increased property values and lease revenues, and the community will benefit from a cleaner, more attractive and vibrant downtown. Staff recommends that the City Council authorize the City Manager to sign the ballots for City-owned properties in support of the Community Benefit District.
Conclusion
Based on the multitude of benefits to be realized by property and business owners as well as residents, staff recommends that the City Council take the following two actions:
- Adopt the Resolution of Intent to establish a Downtown San Leandro Community Benefit District
- Authorize the City Manager to sign the ballots for the City-owned properties to establish a Downtown San Leandro Community Benefit District
Previous Actions
- On April 1, 2013 the City Council authorized the City Manager to Sign a Petition to Establish the Downtown San Leandro Community Benefit District
- On November 19, 2012 the City Council adopted an Ordinance Allowing for the Establishment of Community Benefit Districts in the City of San Leandro
- On July 2, 2012 the City entered into a Consultant Services Agreement with New City America, Inc. for assistance in establishing a Downtown San Leandro Community Benefit District.
Summary of Public Outreach Efforts
- July 27, 2012 Downtown Association meeting.
- August 8, September 13, October 18, 2012 and January 10, 24, February 7, 28 and April 4, 2013 Downtown San Leandro Community Benefit District Steering Committee meetings.
- Numerous one-on-one meetings with individual property owners.
Legal Analysis
This report and the accompanying resolution have been reviewed and approved as to form by the City Attorney.
Fiscal Impacts
There is no fiscal impact by adopting a Resolution of Intent. If the CBD is approved, the annual fiscal obligation of the City in FY 2013-14 will be $41,190 which will replace $45,000 in funding for Downtown Association support, sidewalk steam cleaning and maintenance services. Thus, there will be no net financial impact to the General Fund.
ATTACHMENTS
- Petition Cover Letter
- Translations Flyer
- City of San Leandro Petition
- Management Plan Summary 4-6-13
- San Leandro Petition Response Report 5/10/2013
PREPARED BY: Cynthia Battenberg, Community Development Director