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HomeMy WebLinkAbout10/02/2007, BUS 3 - PROPOSED UPDATE OF THE SAN LUIS OBISPO DOWNTOWN ASSOCIATION STRATEGIC BUSINESS PLAN council Mfi,Dw`/D�yl 7 j Acenda aEpoizt 4mn aK, 3 CITY O F SAN LUIS O B I S P O FROM: Shelly Stanwyck, Assistant CAO Prepared By: Deborah Cash, Downtown Association Administrator Claire Clark, Economic Development Manager Christine Dietrick, Assistant City Attorney SUBJECT: PROPOSED UPDATE OF THE SAN LUIS OBISPO DOWNTOWN ASSOCIATION STRATEGIC BUSINESS PLAN CAO RECOMMENDATION 1. As recommended by the Downtown Association Board of Directors, adopt the proposed 2007 San Luis Obispo Downtown Association Strategic Business Plan (the 2007 Strategic Plan). 2. Direct staff and the Downtown Association Administrator to research, and return to Council with recommended actions, including an ordinance amending the municipal code, to implement the 2007 Strategic Plan goal of dissolving the Downtown Association City Advisory Body and creating a non-profit organization by July 1, 2008. 3. Direct staff to include in the proposed ordinance an extension of the terms of the Downtown Association Board of Directors through July 1, 2008 to ensure organizational stability through the transition of the Downtown Association from City Advisory Body to a non-profit organization. 4. Direct staff to evaluate the business improvement assessment district fees and return to Council with recommended action. REPORT IN BRIEF Two years ago, the Council authorized an update of the Downtown Association's 2001 Strategic Business Plan. Over the course of the update research on the present structure of the Association occurred as well as an evaluation of what the future structure should be. To better serve its members, and to better implement the goals and objectives of the proposed 2007 Strategic Plan it is recommended that the Downtown Association be restructured into a non-profit member benefit organization. In adopting the proposed 2007 Strategic Plan, Council will endorse this restructuring process. Then over the course of several months staff from the City and the Downtown Association will determine how best to chart our future "public-private" partnership and will return to Council in the spring 2008 with recommended actions. 2007 Downtown Strategic Business Plan Page 2 DISCUSSION Background—An Overview of the Downtown Association The Downtown Association, in its present structure, was created in 1975 pursuant to the Parking and Business Improvement Area Law of 1965 (Cal. Str. & Hwy Code §36000-36081). That law provides the authority to the City to impose: and collect an assessment from businesses and property owners in a defined area; defines and limits the purposes for which revenues from the assessment can be used; and provides that "[t]he city council shall have sole discretion as to how the revenue derived from the tax is to be used within the scope of the [defined] purposes..." However, the law also permits the Council to appoint an advisory board to make recommendations to the Council as to the use of the assessment revenues. It was pursuant to that authority that Council created the current Downtown Association by adoption of Section 12.36.080 of the City's Municipal Code. The Association, now in its 32 year, has an annual budget of approximately $500,000—about a third of which is derived from the assessment of fees from business improvement district (BID) members. The City employs an administrator on a contract basis to provide the Association with full time operational support and also employs temporary staff to assist in the Association's day to day activities. The Association is part of the City's bi-annual budget process, through which the Association staff and Board develop a budget proposal, including recommendations for expenditure of assessment revenues for review and approval by the City Council. Thereafter, the Association reports regularly to the City on the expenditure of funds pursuant to its approved budget within the City's regular fiscal reporting process. The Association's 2001 Strategic Plan In 2001, the Council adopted its first Downtown Association Strategic Business Plan. The need for a strategic plan was identified as one of the recommendations included in the Economic and Fiscal Impact of Proposed San Luis Marketplace and Implications for Downtown Retail Activity, PCR Kotin, February 1999. as a means to maintain and increase the economic vitality of the Downtown. The City hired Eichenfield and Associates and the National Trust for Historic Preservation Main Street Program to prepare the 2001 Strategic Plan. Over a period of approximately nine months, the consultants engaged in extensive research and background analysis necessary to develop a baseline understanding of the Downtown: its opportunities and challenges, strengths and weaknesses. Townhall meetings were key in allowing stakeholder participation. The plan was presented to the Council as the San Luis Obispo Downtown Strategic Business Plan: A Sustainable Operating Plan for 2001 and Beyond.The 2001 version of the Plan presented long and short term strategies to maintain and strengthen the vitality of Downtown and the Downtown Association over a five-year period. In 2005, it became apparent that an update of the 2001 Strategic Plan was needed. In the intervening years, the physical and economic landscape of the Downtown had changed, reflecting more competition and an emphasis on increasing housing in the Downtown. Growing demands for a wide variety of services from assessment district members and the importance of the tourism industry to Downtown needed addressing. In order to maintain the effectiveness of a 2007 Downtown Strategic Business Plan Page 3 strategic plan, the Council and the Downtown Association Board of Directors acknowledged that it was time to update the 2001 Plan. Development of the Proposed 2007 Strategic Plan In October 2005, Council authorized funding a $25,000 consultant service agreement with Eichenfield and Associates to complete an update to the 2001 Strategic Plan. Eichenfield and Associates was selected as the contractor because its principal, Jeffrey Eichenfeld, had been instrumental in preparation of the 2001 Strategic Plan. Over the course of a two-year period, the Downtown Association worked with its consultant, association members, and the community to develop the proposed 2007 Strategic Plan. Starting in November, 2005, it was quickly determined that the scope of the new plan would address adequacy of funding and Association operating structure. Cal Poly interns were utilized during the early months of 2006 to develop a database and to conduct surveys to obtain information relevant to consideration of an alternative property-based business improvement district (PBID). It was theorized that a PBID would generate increased funding for the Association and allow the Association to provide a higher level of service in such areas as cleanliness and safety. Extensive survey data and face-to-face meetings with property owners revealed that Downtown property owners did not support the proposed change. Research culminated in a public forum in July 2006 where issues pertinent to Downtown stakeholders were identified and "cleanliness and safety" was emerged as a primary concern of Association members. Subsequent to the public forum, City Staff and Downtown Association staff worked closely to review language drafted by Downtown Association Administrator Deborah Cash in conjunction with consultant Jeffrey Eichenfield. In addition to drafting a strategic plan substantial time and effort was expended on research into the options available for a more independent structure for the organization, which of the options are used by similar organizations, and what structure would be best for the Downtown Association. As a result, many months passed between completion of the research (and rejection) of the PBID concept and the first draft of the proposed 2007 Strategic Plan. By May of this year, the Downtown Association had produced, in concert with City staff and the consultant, an updated plan. After further comment, consideration, and review by Administrator Deborah Cash and City staff, the draft plan went to the Downtown Association Economic Activities Committee for review and approval. In August, the Downtown Association Board discussed and approved the concept of restructuring (Attachment 1- Meeting Minutes). In September, the Board approved the proposed 2007 Strategic Plan for submission to Council for adoption (Attachment 2 — Draft Meeting Minutes, Attachment 3 - Proposed 2007 Strategic Plan) The plan is the result of extensive on the part of the Downtown Association Economic Activities Committee, the Downtown Association Board of Directors, the consultants, Administrator Deborah Cash, City staff, members of the community at large, the National Trust Main Street program, and California Downtown Association members. 3-3 2007 Downtown Strategic Business Plan Page 4 Proposed 2007 Plan's Strategic Goals for Downtown Like its predecessor, the proposed 2007 Strategic Plan recommends strategic goals for keeping Downtown socially, economically, and aesthetically viable. It also proposes a new structure for the Downtown Association. To develop and maintain its market niche and to stay competitive in an increasingly retail-savvy region, the proposed plan recommends seven strategic goals for the Downtown. They include: 1. Maintain downtown as the social center of the community; 2. Maintain a diverse mix of uses; 3. Maintain retail health; 4. Encourage housing and hotel developments downtown; 5. Retain and expand on the unique pedestrian character and small town ambiance; 6. Maintain an effective downtown association; and 7. Establish a disaster response and recovery plan for the Downtown Association and its members. Each of these goals is supported by very specific implementation strategies that can be found in the proposed plan. While each strategy presents a unique opportunity to maintain the strength and vitality of the Downtown, maintaining an effective Downtown organization remains key to the success of the plan. In light of this, high priority is given in the plan to the future organizational structure of the Downtown Association and its future relationship to the City. Highlights of What's New and What's Not The proposed 2007 Strategic Plan continues to serve as an economic blueprint that identifies short and long-term strategies to maintain the strength and vitality of the City's Downtown. The 2007 Strategic emphasizes the following "new" issues that were not part of the 2001 Plan. 1. A restructured organization, Strategic Goal 6, section 6.12 and Exhibit F; 2. Increased support for development of housing/hotels in Downtown , Strategic Goal 4; 3. A disaster recovery plan for the Downtown , Strategic Goal 7; and 4. Greater emphasis on cleanliness and safety programs in the Downtown managed by the restructured organization, Current Conditions and Key Issues Impacting Downtown. Fewer changes have been made to the Plan in the following sections: I. Strategic Goal 1, Maintain Downtown as the social center of the community 2. Strategic Goal 2, Maintain a diverse mix of uses 3. Strategic Goal 3, Maintain Retail Health 4. Strategic Goal 5, Retain and expand on the unique pedestrian character and small town ambiance 5. Strategic Goal 6, Maintain an Effective Downtown Association ��7 2007 Downtown Strategic Business Plan Page 5 Implementation of the Proposed 2007 Strategic Plan 1. Organizational Restructuring Currently, as a City Advisory Body, the Association participates in the biannual budget process to obtain Council approval of its recommendations and authority for expenditure of the funds collected through the assessment and for activities conducted by the Association, which are funded through the assessment. Likewise, the Association's Advisory body status makes it subject to laws governing governmental agencies, such as the Brown Act, the Political Reform Act and public contracting laws. However, because it expends funds, engages in relatively independent promotional activities, and has the benefit of full time staff contracted by the City, the Downtown Association is functionally quite different from any other City Advisory Body. The Association has concluded that its status as a City Advisory Body has created operational barriers to accomplishing the goals of its membership and ambiguities regarding the permissible scope of its activities. The applicability of various laws governing governmental agencies to an association that, practically speaking, is a public-private hybrid is also confusing. As a result, in preparation of the plan update, the need for an alternative structure for the Association that would better facilitate the Association's desired activities on behalf of its members, without running afoul of laws constraining the activity of governmental bodies, was identified. Alternatives were studied by the Downtown Administrator and the City Attorney's office to determine what form, if any, would fulfill the Association's goals and further the joint desire of the City and the Association for greater separation and autonomy. Other downtown associations were surveyed and the law was researched to glean necessary information about alternative organizational structures that would meet the needs of the Association. To meet the joint goals of the City and the Association, the.City Attorney recommended the 501(c) (6) non-profit organizational structure. This is a non-profit structure created for the benefit of members, which would enable the Association the autonomy to engage in political activities (as a non-primary activity), concurrent with activities benefiting the downtown such as Farmers' Market and Concerts in the Plaza. Additionally, this structure could allow the Downtown Association to play a separate role in administering City assessment revenues in furtherance of downtown goals, should the City contract with the Association to do so. Because of the increased operational flexibility it provides, the 501(c) (6) structure is a commonly used form for downtown organizations because it both recognizes and accommodates the reality of the hybrid nature of such organizations. The proposed 2007 Strategic Plan outlines a process to be undertaken between now and the end of the fiscal year between the City and the Association to transition the organization to an independent, non-profit organization. 2. Transition Process Contemplated in Proposed 2007 Strategic Plan Concurrent with the formation of the separate entity, which the Downtown Association has put into. motion, the City and the Association anticipate working together to implement the Association's transition from advisory body status to that of an independent non-profit organization. This process will necessitate examination of the services presently provided by the City to the Association that will, over the short term, be transferred to the Association. Municipal Code amendments are anticipated to be necessary to eliminate the currently existing 3 _Z:5_� 2007 Downtown Strategic Business Plan Page 6 advisory body, which will no longer be necessary in the context of the proposed re-organization. The proposed 2007 Strategic Plan contemplates that administration of the assessment revenues will be accomplished via a contract between the City and the newly formed non-profit, in accordance with City budgetary and accounting procedures, and as authorized by Municipal Code Section 12.36.090. 3. Analysis of BID Fees Needed The proposed 2007 Strategic Plan also suggests amending the current business-based BID revenue structure to determine an acceptable, reasonable, and sufficient increase. The existing fees will be analyzed in light of services and benefits provided to "members" or assesses. Since the fee has not been amended since the 1970s it is anticipated that an increase could be proposed to the membership and to City Council as a proposed ordinance amendment, in accordance with the procedures established under state law and after outreach and discussion with BID members. Next Steps The City and the Association seek a smooth transition that preserves the Association's effectiveness while separating it from the constraints of City governance. At the same time, because the Downtown Association will no longer be technically synonymous with "the City," the legal and procedural complications the City has experienced in recent years will be avoided in the future. The proposed 2007 Strategic Plan outlines that the new non-profit will, subsequent to formation, enter into a contract with the City for administration of the BID assessment revenues. The plan anticipates that the transition will be underway by the end of the 2007-08 fiscal year. To meet this timeframe, there will be a number of support and funding issues to resolve, including how support services presently provided by the City will be absorbed by the new entity, including accounting, legal support, and human resources. The next steps will include at a minimum Regular meetings - Regular meetings between City staff, Downtown Association staff and the Downtown Association Board or its representatives will occur at a minimum monthly to facilitate discussion of issues arising from organization restructuring. The Downtown Association also anticipates that its Economic Activities committee will form a subcommittee to further this process. These meetings will likely occur on a semi-monthly basis to ensure a timely transition by July 1, 2008. Contract. As envisioned by the proposed 2007 Strategic Plan, and similar to many relationships between Downtown Associations and cities, a contract for service needs to be drafted, by staff. The discussion of contract terms will occur concurrent with the meetings discussing the restructuring of the Downtown Association as many of the issues are the same or are related. A draft agreement will be presented to Council in spring 2008. Analysis of Fees. As identified in the proposed plan, assessment area fees have not been updated since the 1970's. The existing fees and potential adjustment to those fees will be presented to Council in spring 2008 upon a complete and thorough evaluation of the fees. � 1 2007 Downtown Strategic Business Plan Page 7 Ordinance Revision. Staff anticipates the need to revise the City's existing ordinances concerning the Downtown Association and assessment district to facilitate the changes discussed above and that is anticipated to come before Council in spring 2008. CONCURRENCES Various City Departments including: Administration, City Attorney, Finance & IT, and Public Works, and the Downtown Association's Board of Directors and its committees, have reviewed the proposed 2007 Strategic Plan and concur with its objectives and strategies. FISCAL IMPACT There is no direct fiscal impact to the General Fund by approving the Downtown Association Strategic Business Plan for 2007. It is the guiding document for the future of the Downtown Association and will help guide the goals for use of Business Improvement Area revenues. ALTERNATIVES 1. Modify Plan — Council could direct staff to modify the proposed 2007 Strategic Plan. Because the plan as proposed is the result of the efforts of a wide variety of stakeholders, significant substantive changes are not recommended. 2. Reject Plan — Council could determine to not adopt the proposed 2007 Strategic Plan. This option is not represented because it would not allow for the clarification of roles and responsibilities which are presently ambiguous and problematic for both the Downtown Association and the City. ATTACHMENTS 1. Minutes of the August 7, 2007 Downtown Association Board of Directors Meeting 2. Draft Minutes of September 11, 2007 Downtown Association Board of Directors Meeting 3. 2007 Strategic Plan J-7 I ATTACHMENT 1 SLO Downtown Association Board of Directors 7 August 2007 City Council Hearing Room Minutes Present Pam Seeley Alex Gough Tom Swem Patty Carpenter Bob Schinkel Tom Copeland Ellen Henry Carl Dudley Natalie Tartaglia Deborah Cash, staff Katie Hollingsworth, staff Brent Vanderhoof,staff Diana Cotta, staff Andrew Carter Christine Mulholland Claire Clark Lindsey Miller Call to order 7:36 AM. No public comment at this time. Motion to approve minutes by Gough,?"d by Henry,PAIF. Downtown Restructuring Model Technically City S but comes from members Need to be an advocacy group for members Dudley: dangerous, adv body has ability to say if they want to give you the S or not Lowell: DA is a adv body now, tension about serving an advocacy role,trying to redefine relationship Council utilizes adv bodies to deal with smaller issues Carter, Mulholland: already have separate contracts with no advisory body input Shaw: motion to take option 2 to Council for consideration,2°d by Gough,PAIR Downtown building heights ATTACHMENT 2 DRAFT SLO Downtown Association Board of Directors 11 September 2007 City Council Hearing Room Minutes Present Ellen Henry Natalie Tartaglia Alex Gough Ron Meier Tom Copeland Tom Swem Bob Schinkel Doug Shaw Patty Carpenter Carl Dudley, ex officio Brandon Downing, ex officio Roy Mueller, ex officio Deborah Cash, staff Katie Hollingsworth, staff Diana Cotta, staff Brent Vanderhoof, staff Christy Tiaga, intern Call to order 7:35 AM. No public comment at this time. oti to approve n i tes by Swe by Schink , p Motion by Shaw, 2°d by Gough to send Strategic Plan to Council,PAIF. Motion by Shaw to approve an additional $3,500 for JE, 2nd by Schinkel, PAIF. Motion by Schinkel to extend Board terms to September 1, 2008, 2°d by Mueller, PAIF. Prolec iguera Cash reviewed campaign to present. Sha 'nquired about why o treet northbound from Marsh is closed. (Cash will look into this, although she had been told it was due to wanting to keep low traffic flow in front of Mission due to a former lawsuit.) v3-9 ATTACHMENT 3 San Luis Obispo Downtown Assovin CLOSED INEAD WCRK AHEAD 4 A - Q San Luis Obispo Downtown Strategic Business Plan ®peu-alt*ng pian Fair 20077 and Beyond Updated 2007 Project Consultants: Jeffrey Eichenfield Darlene Drapkin Rios Jeffrey Eichenfield &Associates Deborah Cash, CMSM /6 DRAFT ATTACHMENT 3 San Luis Obispo Downtown Association Strategic Business Plan ~Update~ 2007 and Beyond San Luis Obispo Downtown Association October Z, 2007 Project Consultants: Jeffrey Eichenfield Darlene Drapkin Rios Jeffrey Eichenfield &Associates Deborah Cash,CMSM Funding: City of San Luis Obispo SLO Downtown Association 2007 Downtown SLO Strategic Business Plan—Draft ATTACHMENT 3 Acknowledgements The project consultants wish to thank the following for their support and guidance in the development of the San Luis Obispo Downtown Association Strategic Business Plan: San Luis Obispo City Council Mayor Dave Romero Vice Mayor Christine Mulholland Allen K.Settle Paul Brown Andrew Carter San Luis Obispo Downtown Association Board of Directors Economic Activities Committee Tom Copeland,Co-Chair Pam Seeley,President Alex Gough,Co-Chair Ellen Henry Brad Bilsten Patty Carpenter Steve Owens Tom Swem Doug Shaw Tom Copeland Natalie Tartaglia Alex Gough Roy Mueller Doug Shaw Bob Seeley Jay Hutchcraft Bob Schinkel Natalie Tartaglia ; Ron Meier > Brandon Downing,Ex-Officio 5 For more information Carl Dudley, Ex-officio 5 SLO Downtown Association Roy Mueller, Ex-Officio a Garden arden Street, Suite 210 c _ 5 San Luis Obispo, CA 93401 Staff Tel (805) 541-0286 Deborah Cash,Administrator,CMSM 4 Fax (805)781-2647 Katie Hollingsworth,Promotions Coordinator Diana Cotta,TNP Coordinator ` sloda@downtownslo.com Brent Vanderhoof,Administrative Assistant Bronwyn Ciccone, Intern www.downtownsio.com Greg White,Intern Design and Layout by Brent Vanderhoof 2007 Downtown SLO Strategic Business Plan—Draft —/.;2, i SLO DOWNTOWN STRATEGIC OPERATING PLAN--A SUSTAINABLE BUSINESS PLAN FOR 2007 AND BEYOND Table of Contents Introduction and Summary..... ..................... ....................1 Purpose of the Downtown Strategic Business Plan ....... ................4 Development of the Downtown Strategic Business Plan. ......... .... ....4 Current Conditions and Key Issues Impacting Downtown............ ....5 Downtown's Competitive Position and Target Markets...................9 Strategic Goal .........................................................10 Exhibits..................................... ..........................24 n got AAA04 - r. 2007 Downtown SLO Strategic Business Plan—Draft Table of Contents 1,3 ATTACHMENT 3 Introduction and Summary Downtown. A recommendation of advocacy/policy statements j, that report was that the Downtown, as needed (parking,new de- in order to retain its competitive velopment projects,etc). edge,develop a Strategic Business + The plan was used as a mar- Plan.The City hired Eichenfield and keting tool given to prospec- Associates and the National Trust tive businesses and develop- for Historic Preservation Main Street ers to show the Association Program to prepare the report. The had a serious program for 4 public process that was used to gen- maintaining Downtown erate community consensus,and the vitality. resulting report document in 2001 + The plan resulted in a high proved to be extremely useful to the level of member satisfaction Association and the City. with Association activities. + The plan was used by the 70%of business and prop- Association's committees to erty owners surveyed in 2006 develop their two-year work believed the Association's programs. past marketing and promo- + The plan was used by the tion efforts are adequate and hen the Downtown Asso- City and Association to craft successful. (See Exhibits A ciation's current Strategic and B) Business Plan reached its shelf life of five years in 2006,the Recently,a revised version of the organization realized it was impor- The plan resulted .in a retail project that triggered the tant to update the guiding docu- high level of member original strategic planning process ment to assist in navigating through ` satisfaction with Asso- was approved by County voters, the waters of change looming on theS5 necessitating renewed action on the horizon. The City Council concurred, ? ciation activities. 70% y part of the Association to position agreeing to fund a major portion of 5itself for competition and a change in the update. c of business and proper-; the retail marketplace. And changes ty owners surveyed in S in a number of other factors affect- It is helpful to revisit why the Strate- S 2006 believed the Asso4 ing Downtown have occurred since gic Business Plan was developed in ? the previous plan was developed, the first place. In the late 1990's,a ciation s past marketing; including an earthquake in 2003 that major retail project proposed for the 5 and promotion efforts .5 resulted in expedited seismic retrofit periphery of San Luis Obispo trig- t ? compliance deadlines for older and gered the City's General Plan require- are adequate and ? historic Downtown buildings;the ment to provide a report addressing C successful. September 11 Terrorist Attacks that the project's economic impact on 2 > produced a decline in travel 9 Introduction and Summary 2007 Downtown SLO Strategic Business Plan—Draft � 7y that include mixed-use elements, r:1 ,,;,, particularly housing. Small niche and boutique retailers continue to flour- ish in our college/tourist Mecca. The City continues to focus on infrastruc- ture improvements and has added a new parking structure with plans for •�; • .,�,..•;._,.:7 another. "'•''ir,• �, - While the Four-Point Main Street p" = Approach (promotions,design, organization and economic restruc- turing) estruc- turin )will still be the"bones"of our R . revitalization program,our mature ..tM=. program will need to look at more _ Y sophisticated versions of those techniques to meet the challenges revenues(essential to a tourism Americans are currently seeking. and capitalize on the many oppor- heavy area such as SLO)and for a Urban downtown residential popula- tunities presented to us. Economic time weakened the stock market tions increased 10 percent during the restructuring will mean encouraging and local sales tax revenues.Further, 1990s after 20 years of decline,and property owners to provide housing a decade of rising housing costs of the 2,500 original enclosed shop- has forced young and low income ping malls,only 1,130 are left and families to the outskirts of the county half of those will ultimately close as as older and wealthier new residents we112. -, move in. Moreover, Downtown con- tinues to on-tinuesto experience growth (both in Locally,the SLO region has posi- z• terms of higher density development tive attributes that bode well for and greater number of customers) the continued health and growth of that impacts cleanliness and safety the Downtown business district a t and increases demands for a wide well-educated workforce,a strategic gl variety of City services. location with easy access to major p; t metropolitan centers,two commu- --- But the good news is downtowns still nity colleges and a major university, " have many advantages over other a strong tourism market,the Mis- I r built shopping environments.There sion and creek walk and an excellent is an unprecedented trend across quality of life. The expedited seismic our country where people—tired retrofitting has pushed many prop- ! of commuting,suburbs and discon- erty owners to rehabilitate older, - nectedness—are returning to down- historic structures like the Warden town commercial districts not only and J.P.Andrews buildings;inves= to work,but also to live,continually tors have grabbed up properties as cultivating the"sense of place"many fast as they could for major projects I Brookings Institution, Who Lives Downtown,Eugenie L.Birch,2005. 2 Shifting Shopping,Anderson Real Estate.com,March 2004. n 2007 Downtown SLO Strategic Business Plan—Draft Introduction and Summary. —IC5— Al 1PeG;B M11:1111 4 that meeting Downtown's needs is + A new private security patrol becoming increasingly complex and has been hired. demanding and neither the Associa- + The City adopted a new anti- tion(as presently funded)or the City panhandling ordinance. (given General Fund limitations)can + We identified the process be counted on to meet those needs needed to modify the current in the long-term.(See Exhibit F) Business Improvement Area (BID)revenues, boundaries There is definitely much work that and management structure if Q < ` 7 needs to be done and this plan so desired. outlines strategies for continuing + We garnered support for to keep the central business district and adopted changes to the of San Luis Obispo vibrant,attrac- rules, regulations and fees tive and unique as we move forward forThursday Night Promo- toward 2012 and beyond. tions that are designed to improve operations,increase Some of the most exciting strategies amenities and better enable in the 2007 Strategic Business Plan revenues to cover costs.(See and work-live units and to keep rents include: Exhibit Q. affordable for retail,restaurant and + Advocating for additional + We developed a compre- office space. Design will now seek parking including construc- hensive Downtown property to attain a higher level of cleanliness, tion of the Palm/Nipomo database. safety and historical preservation. parking structure. Promotions will advance far beyond + Working with the City's This is indeed a good time for down- sidewalk sales and window contests Promotional Coordinating towns,particularly when their lead- and cultivate concepts like heritage Committee to implement the ers plan for the challenges presented tourism and branded marketing City's Tourism Marketing Plan by evolving and vibrant downtowns. campaigns. 2007. - r + Improving sidewalk and _ Our organizational management street lighting. f` will be evaluated to determine if the + Allocating additional resourc- current operating structure,that of es toward caring for Down- , town street trees. an unincorporated advisory body + Establishing a disaster re- a �_ to the City,is effective and,more importantly,if the organization is sponse and recovery plan. securely funded for the long term. + Increasing Downtown As- a Events over the past two years have sociation revenues. illuminated the need for the Associa- + Forming a more independent - tion to more clearly define how it Downtown Association. may operate independently and to relinquish some of its dependence Indeed,the planning update pro- on the City.The City has recognized cess has already produced positive results: . Introduction and Summary 2007 Downtown SLO Strategic Business Plan—Draft Purpose of the San Luis Obispo Downtown Association Strategic Business Plan (Strategic Business Plan) According to its mission state- study to determine what method of ment,the SLO Downtown = ' i - organizational structure and long Association is a"partnership of ''�' term funding mechanism would be members working for the economic, most likely to address typical issues social,cultural and environmental that arise for veteran programs and vitality of Downtown" As part of the also empower the Downtown As- effort to maintain a healthy Down- sociation to become more effective town,the Downtown Association (see Exhibits E and F). and the City of San Luis Obispo have developed the Downtown Asso- The SLO City Council is scheduled ciation Strategic Business Plan. The to accept the Downtown Strategic Strategic Business Plan is an econom- Developing the Business Plan in the fall of 2007. Its is development tool that documents implementation will be the responsi- Downtown's competitive position in Strategic Business Plan bility of the SLO Downtown Associa- the marketplace, identifies short and tion.The Downtown Association will long-term strategies to maintain andhis Strategic Business Plan up- use the Plan to develop its two-year strengthen the vitality of Downtown date is a result of collaboration workplans. and the Downtown Association,and between consultants Jeffrey sets benchmarks for monitoring the Eichenfield and Darlene Drapkin Rios City leaders are excited about the ongoing health of the Downtown. of Eichenfield and Associates;and ongoing level of commitment to the The plan is designed to do this while Deborah Cash,CMSM,Administrator, Downtown business district. This achieving the community's overall SLO Downtown Association.Major commitment has been solidified vision for Downtown and preserv- funding for this endeavor was pro- through the work with the commu- ing the unique quality of life that is vided by the City of San Luis Obispo. nity on this project—one that is so enjoyed by SLO residents. significant to us all. The consultants,over a two-year The Strategic Business Plan is meant period,with the assistance of interns to be a companion document to the Bronwyn Ciccone and Greg White,re- City's Conceptual Physical Plan for the viewed background information sup- City's Center and the City's Access and plied by the Downtown Association, Parking Management Plan. As such,it conducted focus group interviews,as concentrates most on business/eco- well as business and property owner nomic issues and not physical design surveys(see Exhibits A and B)and +s' or transportation strategies. held a publicTown Hall Meeting (see Exhibit D),and performed in-depth research both on topics relating to the existing plan and on a feasibility 4 2007 Downtown SLO Strategic Business Plan—Draft Purpose and Development �? /7 Current Conditions and Key Issues ATTAGehiviEi T Impacting Downtown Economic Growth in the (especially Big Box stores,apparel stores,restaurants and specialty City and County retail lifestyle stores)would have on 0 ne of the biggest issues fac- Downtown. ing Downtown is how it can continue to prosper in a re- Another growing source of competi- gion where population and tourism tion is the — of online retail- growth has been slow but retail com- ing. Internet retail sales in the U.S. petition is increasing. The answer be are expected to reach $116 billion in _ very smart and very proactive about 2007-5%of all retail sales and this = ~— positioning Downtown as the vibrant is expected to grow to 7%by the center of SLO County. end of the decade.Online sales of books,apparel,pet supplies,music SLO's 2007 population is approxi- and videos—traditional downtown mately 44,239,down 0.2%from niches—have grown tremendously 2006.The County's current growth in recent years4. rate is just 0.96%3.Yet new Big Box estimated at less than 1%.Down- and specialty retail projects continue Tourism growth has also been slow town sales tax revenues have grown to be proposed for the edges of the in recent years.The City's Transient an average of 4%per year since region,in SLO and in retail districts in Occupancy Tax(TOT) revenues had 2000.There has been approximately Paso Robles and Arroyo Grande.The been increasing 10%per year until 260,000 square feet of new construc- SLO Downtown Association remains 2000.Their growth dropped to less tion Downtown since 2000,including concerned about the competitive than 3%per year after the Septem- the Court Street mixed use project, impact that these retail development ber 11,2001 terrorist attacks.Fewer the new County Government Center, business travelers due to technologi- the new Children's Museum,Coast '� ' r' • ` cal advances(email,video conferenc- National Bank,the Manse on Marsh ing,cellular phones)and increased addition and a parking/office devel- ' opment at 919 Palm. The proposed competition from Santa Barbara and Chinatown mixed use project is now Monterey/Carmel for leisure travelers also contributed to slow TOT growths scoped at more than 200,000 square ti and for a time had a negative impact feet and will include retail,housing on the Downtown economy. and a hotel. The good news is that Downtown While overall population growth is SLO is growing despite these trends. slow,wealthier,older couples and There are approximately 650 busi- individuals are migrating to SLO oun Cfor the pleasant climate and nesses in the Downtown,up from �'6 550 in 2001.The vacancy rate is low, attractive surroundings,as well as 3 City of SLO Community Development Department,May 2007. 4 OnlineSales Lose Steam,New York Times,June 17,2007. B sCityofSLOMonthlyTOTReport,March 2007. 620075an Luis Obispo County Economic Outlook,UCSB,p.6. Current Conditions and Key Issues 2007 Downtown SLO Strategic Business Plan—Draft leo ATTAGitsMiEl-d �I I its strategic location between two R -- key metropolitan areas.Technology trends allow working professionals to be more selective in choosing where they live and work and SLO has the - — potential to develop into a vibrant a upscale community as a result. ♦4 _ TOT revenues increased 11%from 2005 to 2006,and 5.1%from March _ 2006 to March 2007,signs of im- pending recovery in a sector that is very important to the Downtown$. Online sales growth is expected to slow to 9%per year by the end of �' the decade from as much as 25% Bottom line: An influx of higher in- tion if they report problem behaviors per year in 2004. Retailers nation- come residents and renewed spend- and civil disobediences that occur in wide have livened up their stores ing by tourists is seen as the source front of their stores.This is harmful to be more alluring while provid- for much of the economic growth to Downtown's ambiance and small ing personal customer service that that is occurring in the County—a town character,and a high priority impersonal web sites cannot match9. trend that is having a positive impact action item for the Association.As Downtown retailers can indeed com- on Downtown SLO's specialty retail new developments like the Down- pete in an online world. and restaurant sector. But Down- town Centre and Court Street hire town needs to stay very competitive their own security and maintenance and aggressive for this spending and services,the rest of Downtown must ' watch out for the competition in the maintain a similar level of service �` county,elsewhere in the City and in order to remain competitive and 5fl9a61 �'°'""°,# ..Rwr_ -f '" online. ensure a consistent level of care . �r� throughout the Downtown. Cleanliness and Security The City provides a high level of Changing Use of maintenance and police services(see Downtown Exhibit G).As was the case in 2000, At the time the 2001 Strategic Busi- iI<:oc IosaY"NO"To mmAr lxuts however,dirty sidewalks, problem g BUT SAY"YES" behaviors and inadequate ness Plan was adopted,the com- TO GIVING TO SAN LUIS HOMELESS quate lighting munity saw Downtown as mostly a sERWEs were a primary concern of people specialty retail,dining and cultural 01 For nvorL%jr1forinl1flon interviewed for this Plan.More district. Today,more office,residen- than 50%of busineRDS 544-4355 ss and property tial and hotel uses are desired and owners surveyed believe some or gProposed—bringing opportunities great improvements are needed. for businesses to serve those markets Merchants expressed fears of retalia- as well. 7 Market Study for Proposed Garden Street Hotel,Holt Advisory Group,December 2005,p.4. 8 City ofSLO Monthly TOTReport,March 2007. 9Online Sales Lose Steam,New York Times,June 17,2007. Q Current Conditions 2007 Downtown SLO Strategic Business Plan—Draft and Key Issues j -/9 ATTACHMENT 3 leisure visitors and,to a lesser extent, Organizational Changes destination leisure travelers.Only a *t few hotels have meeting space to and Funding Demands capture group meetings12.Devel- he SLO Downtown Associa- tion,-- '( opers have said there is sufficient a National and California market demand for new hotel prop- Main Street program,promotes erties Downtown,especially those Downtown business.The Association that cater to younger visitors seeking was formed by the City as a Council a more contemporary and upscale advisory body in 1975 to advise and experience73.There are two hotel recommend to the Council the meth- projects presently under consider- ods and ways in which the revenues derived from the Business Im rove- �-`�.<:° ation-Chinatown and the Garden P Street Terraces. ment Area(BID)should be used. The - �= BID,established by City ordinance, - - In 2000 there was fear that the is an assessment in addition to each - increasing number of national chain merchant's business tax.In 2007 it ' a '?> stores Downtown would erode raised $155,000 per year.The Asso- " ° Downtown's unique small town ciation serves as an advisory body to character. This has not proved to be the City Council and works closely As stated in the General Plan Land the case and there is now a broad with many City departments.The Use Element,"Downtown residential acceptance of national chain stores' City provides the Association with uses contribute to the character of Presence.Their longer store hours, ongoing full-service support from sophisticated marketing practices Human Resources,Finance(payroll, the area,allow a 24-hour presence accounts payable,revenue manage- the e which enhances security,and help and attention to store maintenance P Y 9 - and design have been a model to ment,collections, investments,gen- the balance between jobs and hous- eral ledger and financial reporting), ing in the community 10n Over the independent store operators. 9 P g), past two decades,however,there has _ been a slow decline in the number of - Downtownhousingunits. TheCity's `y�. .ry,,. ., r._ Housing Element,updated in 2004, '^'` „_ includes a new policy that requires f all new Downtown development - 4 ;r � `” to include housing".The City has '' $ considered increasing downtown a!i,.l A '' ' •. building height and intensity limits in order to encourage the economic - viability of housing construction. �= SLO's 28 hotels,with a total of 1,870 rooms,fall largely into economy andI mid-market categories.These hotels [-'J cater mostly to overn ig ht"pass-th ru" 10 SLO General Plan Land Use Element,Policy 4.2.1. 11 Housing Element Policy 3.11.2 TIGarden Street Terraces,Holt Advisory Group,Spring 2007,p.1.1.arket Study for Proposed Garden Street Hotel,Holt Advisory Group,December 2005,p. 11. Current Conditions and Key Issues 2007 Downtown SLO Strategic Business Plan—Draft �\ J � �l6aC� irat B funding and more reliable funding sources.The Association's estimated _ annual budget in 2007 was$469,000. ° - Other downtown management pro- 4;t © _ grams that the Association considers — to be models operate with budgets "~ ` a`D a 1 .et tl� _ rD I - x of nearly$700,000. a i The Association enjoys many ben- o efits of its relationship to the City. It .-- - - must also,as a result,strictly comply `-' 4 ` - - �-- with the City's personnel,purchasing, _ J _ contracting and lobbying require- ments.This can be costly and time consuming. It may also frustrate As- established as independent non - sociation members who want the As- profit organizations working under sociation to take a public position on contracts with their local govern- s City policy matters—something that ments,have more flexibility around is difficult for a City Council Advisory these types of requirements.Going Attorney and Administration.The Body to do.The Downtown Associa- forward,the Downtown Association Association's Administrator currently tions subject to State prohibition and the City will analyze the costs works under contract with the City. and benefits of the Association's Thirty two years after its formation, against using public resources on however,the current BID structure is ballot measures and other political organizational structure to ensure it strained in its ability to serve Down- campaigns that apply to all City enti- is operating the most effectively for town in the future.Thirty percent of ties.Other downtown associations, all Downtown stakeholders. businesses pay the minimum fee of only$25 per year and 50 percent pay less than $100 per year.There is no automatic cost of living adjustment in the minimum fee. Auditing BID payments and collecting delinquent payments is time consuming and ->-� a ,,�rnrmengi�illi costly.BID revenues have not kept pace with the rising costs of provid- ing services and this puts increased pressure on the Association to hold time-consuming fundraisers and special events that must raise an ad- ditional$300,000 per year(in 2007). . The Association,in order to continue -- �� L- -'---__ � -" --- ---��`— - L o to provide the level of service and projects proposed must have more Current Conditions 2007 Downtown SLO Strategic Business Plan—Draft and Key Issues 1� �J�I Downtown's Competitive Market Posi ion A.TOP-4n�'6Eft, a and Target Markets - + A mix of creative indepen- historic buildings,views,pedestrian dent and national specialty experience, residential uses,parking, stores retail and bicycle transportation (see + Theaters,galleries,restau- Exhibit H). rants and other entertain- While Downtown is the gathering ment uses place for the entire community, + Preserved historic resources Downtown's primary target market + Protected natural resources, customers are: l f _ landscapes and view cor- + Sophisticated middle and ridors upper-middle income shop- 5.1 , , ,! y= + Public art and a pedestrian pers looking for a unique ' .• F '� friendly streetscape that cre- shopping,social and cultural ates a gathering place for the experience. These include: (� entire community X Local residents(65%) C ' + Local and regional cultural X Tourists and Visiting institutions Cal Poly parents(35%) While the Downtown is an + A central core of City and + College students seeking asset and amenity to all County government offices trendy fashion and entertain- members of the commu- + Residences that create a 24/7 ment options and socializing nity,the vast array of other retail op- presence opportunities. tions means that from an economic + Downtown office workers viewpoint it cannot be all things to This position is supported by policies and their customers seeking all people. contained in the City's General Plan moderately priced lunches pertaining to cultural and entertain- and general merchandise for The Downtown's competitive market ment facilities,government facilities, running errands. position statement remains virtually the same as it was when it was devel- oped for the 2001 Strategic Business .fir Plan: Downtown is the social,cultural, - civic,specialty retail and entertain- ment center of SLO County. It is a vibrant,pedestrian-oriented district lmnu that offers locals and visitors small town ambiance and a unique shop- ping experience not found in other commercial centers in the region. It features: fl Market Position and Target Markets 2007 Downtown SLO Strategic Business Plan—Draft 2-2-2, Strategic Goals 711'`i`�r ' �' Strategic Goal 1 successful community event '-zthat also draws large crowds Maintain Downtown as the so- -[ from around the world. In M Q tial center of the community. 2007 the Association imple- mented new rules,regula- x, soul of the community. Even tions and fees designed to ffn t Dif residents aren't doing improve operations,increase the bulk of their everyday shop- participation capacity, ping there,they continue to use improve entertainment,add Downtown as the place to meet electrical access, provide a friends, relax with family and gather new dining area and increase as a community.Organizing social profitability(see Exhibit Q. activities for the community at-large Monthly promotional themes T he Downtown Association familiarizes them with Downtown will continue. has set the following Strategic businesses and builds a strong + Continue Halloween Ac- Goals for 2007-2012: constituent group that can help the tivities.The trick or treating, 1. Maintain Downtown as the Association advocate for Downtown pumpkins on parade,and social center of the improvements.Major strategies for costume contest are ex- community 2007-2012 to maintain Downtown as tremely popular with local 2. Maintain a diverse mix of the social center of the community children. uses are detailed below. + Continue December Holi- 3. Maintain retail health day Events.The month-long 4. Encourage hotel,housing 1.1 Organize special events holiday events solidify Down- and live-work developments and festivals appealing to the town as a community gather- in Downtown entire community. p 5. Retain and expand on theacilic baa.�rrd + Continue Concerts in the Pla- tect c Compr unique pedestrian character za. The concerts in Mission and small town ambiance Plaza have been very suc- 6. Maintain an effective Down- cessful at increasing Fridays = ;_ town Association night business and attracting 7. Establish a disaster response thousands of people and and recovery plan for the are one of the Association's Downtown Association largest fundraisers.The event i Strategies to achieve these goals, was expanded to a total of 12weeks in 2007. and the people/committees that are + Continue Thursday Night responsible for implementing them, Promotions(TNP),also gen- are detailed in the remainder of this erally referred to as"Farm- Plan. ers'Market"TNP is hugely 2007 Downtown SLO Strategic Business Plan—Draft Strategic Goals strategic Goal 2 Maintain a diverse mix of uses. big part of why locals love Downtown is the mix of uses that gives them multiple rea- sons to be Downtown—to socialize, to enjoy cultural activities and enter- a tainment,to do community business and to shop.The Association will support activities and developments that protect and contribute to this - unique mix.Major strategies for 2007-2012 to maintain a diverse mix ing space and the place to 1.2 Support other orga- of uses are detailed below. do holiday shopping.Santa's nizations'use of Downtown House,Holiday Parade,Holi- for events. The Association does 2.1 Support the unique mix day Tree and Carousel in Mis- not have the resources to organize 9 of independent and national cion Plaza,Holiday Window Decorating Contest and Free every desired Downtown event. Our retailers. National retailers have Children's Movie/Canned economic development efforts can historically anchored downtown Food Drive will continue. be greatly assisted when other orga- districts. Their drawing power gives ter Eg nizations host events that showcase added exposure to the unique + Hunt'nuconjunct coannual njunction SLO Downtown in a positive light. These independent businesses that give include the following: Parks and Recreation. + Art After Dark + Develop clear goal state- ments Cal Poly Open House menu for each event. De- + Central Coast Book and mand for Downtown events Author Fair is high so it is important that + Central Coast Cycling Classic the Association have clear + Central Coast Wine Festival reasons for continuing or + Children's Day in the Plaza dropping existing events and for starting or not starting + City to Sea Mini Marathon . new ones. Each event should + Day with Creative Women + Earth Day ",+ ., •• � `' have a written purpose state- + I Madonnari ment,measurable goals and + International Film Festival ', ' l y objectives and defined target n Y= + Jack House Special Events y market(s)that meet the goals + Mozart Festival of the Strategic Business + Plein Air Festival Plan. + Pride in the Plaza 1. -• + Tour of California Strategic Goals 2007 Downtown SLO Strategic Business Plan—Draft ��y Arts Center and the Mission and opportunities. The Association creek walk is an important sub- will continue to support infill devel- district of Downtown.It is poised opments that contribute to a dense, to become an even stronger cohesive Downtown core. anchor and regional attraction + Encourage better use of vacant with the planned expansion of or underutilized properties(park- Till _ the Arts Center and location of ing lots,buildings,etc.). Existing = l� a new children's museum.The surface parking should be put to Association will continue to co- better and higher use, i.e.plazas, 1 ordinate its activities with these commercial development,etc. cultural groups and advocate for Lost surface parking lots should Downtown its character. Residents increased expansion and promo- be replaced with consolidated and merchants alike appreciate the tion of the district.It will also parking structures. 16 mix we have and the Association will encourage construction of the + Support General Plan policies continue to support developments Palm-Nipoma parking garage to and proposed zoning changes that encourage a balance. support growth of the district to increase allowable height and + Include art in Association pro- intensity limits to encourage motions.Continue Art After Dark residential construction. 2.2 Maintain government promotion.Develop unique sig- + Refer businesses to City Eco- office presence.Government of- nage/banners,kiosks and maps. nomic Development staff for fice workers(and the people who do 2.4 Encourage additional assistance in navigating through business with them)are a significant development and commercial City permit processes. part of weekday customer base for Downtown restaurants and stores. The Association will actively sup- port the City's General Plan policies for keeping City and County work- ers Downtown ° and support the continued presence of the U.S.Post - Office in the Downtown. 2.3 Support cultural and en- tertainment facilities.Museums, galleries,theaters and nightclubs add to a vibrant Downtown and ca Z "..q AFS draw customers to nearby stores r and restaurants.The Association will encourage projects that support the City's General Plan policies for locat- ing these uses Downtowns. + Support development of Cultural Arts District The area including I the Creamery,the museums,the � • ,- 14 SLO General Plan Land Use Element,Policies 4.17 and S. 15 SLO General Plan Land Use Element,Policy 4.3 16 SLO General Plan Land Use Element,Policy 2007 Downtown SLO Strategic Business Plan—Draft Strategic Goals Strategic Goal 3 merchants alike want additional and Maintain retail health improved parking that will make shopping more convenient.The owntowns unique setting s: Association will continue to make im- and small town ambiance are the"packaging"that attracts proved parking one of its major goals _ and work on the following activities: customers.It is the economic health � .:•�- ��. + Advocate for additional parking of the retailers,however,that keeps - - Downtown including construe- customers coming Downtown and .�. generates the revenues that main- tion of the Palm/Nipomo parking tain Downtown as an amenity for structure in the growing Arts _ the entire community.Ensuring that District area. Downtown businesses are economi- + Work with the City to place way cally healthy is an important role for finding signs and evaluate pay- 3.2 Promote Downtown the Downtown Association.Major on-foot machines. shopping and services to strategies for 2007-2012 to maintain + Work with the City to study primary target markets. The retail health are detailed below. and implement a Downtown P Y 9 Residential Parking District to Association will continue to organize. mitigate the impact of traffic on promotions to help retail and service 3.1 Work with the City to surrounding residential areas. businesses generate higher sales and take action on parking issues. + Provide information on alterna- profits.Clear purpose statements, Free and easy parking is a competi- tive forms of access to Down- goals,objectives and target markets tive advantage that shopping centers town, will be developed for each promo- have over Downtown.Residents and + Consider implementing Parking tion or event. Success will be evalu- Demand Reduction measures ated based on those factors. and employee parking incen- + Communicate a message of itives. distinction. In all its promotions, LL s � + Promote the City's Racks with Downtown businesses should v3 r–�.. ''' ' • ; Plaques bicycle rack donation continue to differentiate Down- town from other shopping areas. program. PP 9 1,, e + Promote bicycle parking services Downtown often cannot com- pete on price or selection. But it (valet parking)atThursday Night can communicate an attitude of Promotions through SLO County a Bicycle Coalition. unparalleled shopping,excellent + Continue trolley service to other customer service and a unique ^ areas of town as needed. shopping ambiance. + Distribute the City's Parking + Publish Around Downtown in i conjunction with SLO Journal Guide brochure. 1 + Collect and distribute"where to Plus Magazine. Around Down- park the easiest"tips. town, launched in December + Promote parking demand reduc- 2000,encourages residents to ' tion measures such as the SLO shop Downtown by showcasing Transit Gold Pass for Downtown businesses,events and other '" employees. Downtown offerings.It is an Strategic Goals 2007 Downtown SLO Strategic Business Plan—Draft '?_ZG - --- - .� insert in SLO County Journal Plus organizations like the Downtown <� A t. magazine.Meeting the needs Association.It defines the City's pri- Al, magazine. of advertisers and shoppers is mary target visitor as a sophisticated, critical to its success. The As- well-educated travel minded couple, sociation will regularly evaluate 50+years old,looking for a trip that its effectiveness and periodically will afford them the opportunity survey readers for their opinions to experience a variety of activities and ideas. and feel refreshed upon completion ;.. + Promote the City's"Shop SLO of their visit'. About half of these Keep it Local"campaign. visitors consider SLO their primary destination.The others are passing 3.3 Advocate on merchants' through along Highway 1 on their way to other destinations.Visits to behalf during construction, SLO are fairly consistent throughout improvement and seismic the year. variety of cafes and restaurants, retrofit projects. The Downtown + Work with the City's Promotional and more attractive facades) in Association will continue to work Coordinating Committee to order to draw more overnight with the City to design promotional implement the City's Tourism visitors'$. activities to minimize and mitigate Marketing Plan 2003. + disruption to businesses during + Promote Heritage Tourism. The 3.5 Strengthen the Internet these projects. popularity of Downtown as a presence of Downtown. The tourist destination is due,in part Downtown Association web site 3.4 Strengthen tourism to is historic character.Historic attraction. As a result of recent de- architecture,the Mission,the receives more than hits"per grow clines in tourism,the City developed Chinatown Historic District and month. Internet use grows every day and the Association will continue to the Tourism Marketing Plan 2003 to Downtown's designation as of to increase TOT revenues by improving the National Trust for Historic maintain useful web site geared the City's brand image,encourag- Preservation's Distinctive Des- merchants, ,shoppers and visitors and ing longer stays and developing tinations in America should be Provide Downtown merchants with strategic alliances with destination prominently featured in all pro- information and opportunities to facilitate their use of the Internet. motional materials. + Maps and signage.Given that 3.6 Provide information / 4. r ` most visitors arrive by car,ensure that Downtown amenities, about technical assistance. +, f •- events and attractions are clearly The business environment is chang- 1 promoted through high qual- ing rapidly and ongoing education is ity visitor maps and directional essential for the health of any busi- ". signage. ness. Merchants are often reluctant, + Encourage improvements to however,to leave their stores for Downtown amenities.Down- training programs,especially if they f town may need to enhance are not convinced those programs visitor amenities(landscaping, will meet their needs. streetscape, parking,wider + Work with Cuesta College Small 17 City of San Luis Obispo Tourism Marketing Plan 2003,p.1. 18 Market Study for Proposed Garden Street Hotel,Holt Advisory Grou p,December 2005,p.45. 2007 Downtown SLO Strategic Business Plan—Draft Strategic Goals �- z7 � ���� 3.9 Promote business-to- �" business sales. An often-over- s '6 P o looked wayto easilyincrease sales s� �\ '�� j9 ( o 0° o$o is to increase the number of sales Downtown businesses make to each elfIJ other. �N — - ¢ Continue to offer abusiness-to- � , te ',a "��%r business advertising flyers in the " Association newsletter. + Promote via stories in the Asso- ciation newsletter. f � , 3.10 Discourage specialty retail uses in developments ©�a a • �' " outside of Downtown. Specialty retail and"Main Street"ambiance is the unique niche that differentiates Downtown from other shopping Business Development Center, 3.8 Continue outreach to areas in the community. The As- the Institute for Professional jurors through the Juror In- sociation supports the General Plan Development and the Private centive Discount Dining Pro- Land Use Element policy that states Industry Council to identify train- " gram. The Association staff will Most specialty retail stores should ing resources for businesses. be downtown,in the Madonna Road ¢ Offer a small business resource continue to work with the County library. Court System to distribute the Juror area,or in the Los Osos Valley Road Discount dining brochure featuring area,and in other community shop- to businesses as needed and Downtown restaurants. ping areas identified by the Com- munity Commercial district where Com- identified. they will not detract from the role of the downtown as the City's primary 3.7 Promote the fact that concentration of specialty stores; Downtown is open later on ��:y some may also be in neighborhood weeknights and on Sundays. shopping centers so long as they are Downtown's national retailers are a minor part of the centers and serve open on Sunday and later on week- neighborhood rather than citywide nights,and more and more of their _ `_ or regional markets 19n The Associa- independent neighbors are doing so s 1 tion will also support the General as well.Sunday business is now as Plan policy that requires an econom- busy as Saturday and half of business ; is impact study before expansion of sales occur in the evenings.This is a `: Madonna Road retail uses are ap- huge shift from 2000 and should be proved 20. promoted to customers who may not - realize the change has occurred. 19 SLO General Plan Land Use Element,Policy 3.1.5. 20 SLO General Plan Land Use Element,Policy 3.1.3. Strategic Goals 2007 Downtown SLO Strategic Business Plan—Draft J'.2,?ra i " Construction. ��S 1 a a / 4.2 Balance housing with —¢ commercial uses.The Associa- tion will advocate that new housing :? does not displace existing commer- cial uses and that new housing be built only as part of new commercial —� -r4 ° developments. 4.3 Identify locations that ' j and on Downtown's are best for residents. The retain and ex P i Association will advocate that new unique character and ambiance are i housing be built in such a way that detailed below. ;1. noise and parking problems are mini- mized and access to daily services are 5.1 Maintain high level of Strategic Goal 4 maximized. cleanliness&maintenance.The Encourage housing and hotel City provides daily street and gutter developments,Downtown. 4.4 Support improvements sweeping,daily trash pickup,weekly ®owntown residential uses that will appeal to overnight cleaning of BBQ sites,monthly steam provide a 24-hour presence visitors and hotel developers. cleaning of Downtown sidewalks which enhances security, Enhance visitor amenities such as and trash containers,tree trimming, provides a built-in customer base, landscaping,streetscape, parking, graffiti cleanup,and general clean offers reduced commute time for cafes and restaurants and attractive up and maintenance as needed (see Downtown residents who also work facades. Exhibit G). Business and property Downtown and helps the balance owners are responsible for keeping between jobs and housing in the Strategic Goal 5 the area in front of their buildings rategcoa community.Developers have said litter free. there is sufficient market demand Retain and expand on the for new Downtown housing and unique pedestrian character hotel properties. Major strategies and small town ambiance. for 2007-2012 to encourage housing owntown's major strength " , „� ' I'3 '1 and hotel developments are detailed is its unique character and �. below. ambiance,major components of which are its pedestrian scale,his- 4.1 Support higher density toric buildings,Mission Plaza/creek projects as appropriate. The walk,trees and landscaping.The — Association will monitor and sup- Association will work in close concert - port General Plan policie521 and with the City of SLO and other orga- proposed zoning changes to increase nizations to protect and enhance this allowable height and intensity limits environment for locals and visitors. to encourage residential and hotel Major strategies for 2007-2012 to 21 SLO General Plan Land Use Element,Policy## 2007 Downtown SLO Strategic Business Plan—Draft Strategic Goals S-29 ��d 6e3v.veC� A + Improve sidewalk cleanliness and 'r„ maintenance.The Association and the Public Works Depart- ment will meet regularly to plan .a T, c ' "�" '� �' �• o sidewalk scrubbing and sidewalk ' ' * �- ' '� repair and replacement. + Give input into new standards for ( "� Mission style sidewalks. Repair and installation of Mission style ! t sidewalks is in the City's plans for use of Measure Y sales tax funds. r ' handling/bench sitting, public alco- 5.3 Advocate for continued 5.2 Ensure safety and secu- hol consumption and other problem implementation of General rity.Compared to many other urban behaviors.A few dozen calls to police plan and Physical Plan de- settings,Downtown is a very safe were made and a number of arrests area.The City provides a large variety resulted.One patrol assisted with a sign policies pt appropriate. p g heart attack situation. The City's Conceptual Physical Plan of police services including three police officers and one sergeant who + Continue private security patrol. for the City's Center is a long-range patrol on bicycle,a satellite office, Funding for the patrol will be design vision for the Downtown and nighttime patrols,enhanced support allocated from the Association's a guide for both public and private operating budget o in FY 2007. for special events,graffiti reporting P 9 investment.It is intended to work 9 and investigation,and homeless en- + Collaborate with City staff on in harmony with other plans and forcement and outreach.Neverthe- transient issues.Meet regularly documents,particularly the General less, residents and shoppers continue to discuss pending issues and Plan which contains policies related to express concerns about street possible actions. to historic buildings,views and the people,panhandlers,unruly youths + Monitor success of new ordi- pedestrian experience.The Down- and poor lighting.In August 2006 the nance regarding panhandling town Association will continue to Association hired a private security and public bench usage. use these plans to guide its physical detail,funded by local sponsors. + Support the Prado Day Center. Planning and urban design efforts. Between August 2006 and January Continue Downtown Association 2007 more than 100"contacts"were presence on the Center's board 5.4 Support placement made with persons involved in pan- of directors. of public art throughout the + Improve sidewalk and street Downtown. Demonstrating the lighting.In February 2006 the City's dedication to art in public City adopted the Downtown places,20 pieces of public art valued Lighting Plan.Improved lighting at$250,000 is in place around Down- is in the City's plans for use of town.The Association will continue Measure Y sales tax funds. its active participation in managing + Distribute"What to do if you Downtown public art programs. see..:"cards and emails as a + Consider developing anew com- handy reference for merchants. memorative art project.The com- memorative bench program is Strategic Goals 2007 Downtown SLO Strategic Business Plan—Draft 3 -�g0 Vi TA(U'h'4J�YL' now completed.The Association town Association recognizes that _ will evaluate whether a replace- historic resources add to the special ment commemorative project, character that makes Downtown so possibly for streetlamps,should attractive to shoppers,visitors and ° ! be undertaken. investors and will work to protect his- O' + Oversee banner programs. toric character. Continue to oversee the hanging + Support the Cultural Heritage - R of flag a banners as per City Commission's(CHC)efforts to u resolution. date City preservation codes and + Continue to encourage quality processes.The Association will C. ` public art in new developments. provide input as appropriate. 1 By City ordinance,private devel- + Support CHC's efforts to update _ I` opers must provide public art as historic inventories. Most of Y part of projects. the City's inventories of his- + Distribute the SLO County Arts toric structures were done in the - Council's guide to galleries and 1980s. Encourage the City,as ap- — -- — - public art in the Downtown. propriate,to update inventories able trees are aging and in some of Downtown property. cases are unhealthy or dangerous. 5.5 Protect Downtown's + The Association will support With trees needing to be removed historic resources. SLO has a rich General Plan policies that pro- and with some tree wells remain- cultural heritage and an informed tect, incorporate or mitigate the ing empty for long periods of time, impacts of new development on the City has determined it is time to citizenry who value and protect that historic resources move forward with tree replacement heritage.Special interest h focused + Promote seismic retrofitting.84 and care to maintain our beautiful ur- on the Downtown area.The Down- unreinforced masonry buildings ban forest and overhead canopy that Downtown were subject to the provides shade and beauty. More- To" I City's seismic safety mitigation over,a method of addressing injuries plan.35 of these buildings are to trees by large trucks needs to be on the Master List of Historic examined.Street tree care will be Resources.Property owners have performed through the Downtown been given individual dates by Street Tree Management Plan and is Llr - which to comply between July 1, in the City's plans for use of Measure I 2007 and July 1,2012. Y sales tax funds. l + Promote compliance with the + Create Downtown Foresters j . Hazard Mitigation Plan in a program.Downtown Foresters positive manner to owners and will be a program where Associa- tenants. tion Design committee members 5.6 Maintain Downtown will be trained to assist in caring urban forest.The City recently for Downtown trees.They will < received its first Downtown Urban use the Street Tree Management Forest inventory and recommenda- Plan as a guideline for selecting tions, important because our remark- trees to be planted and caring for trees. 22 SLO General Plan Land Use Element Policy 4.12 and Conservation and Open Space Element Policies 3.3.1,3.3.2,3.3.4,3.6.4. 2007 Downtown SLO Strategic Business Plan—Draft Strategic Goals 0'.3 -2/ nity Design Guidelines Chapter 4 "Downtown Design Guidelines:" Major strategies for 2007-2012 to I I,I WA maintain an effective Downtown As- ® � Strategic Goal 6 sociation are detailed below. Maintain an Effective Down- town Association. 6.1 Maintain strong board iu is"r�. heSand committee participation. LO Downtown Association rBoard and committee members are represents more than 650 busi- nesses through an 11-member volunteers and are the lifeblood of board of directors and staff of four the organization. employees.In partnership,board and + Continue to use a committee + Participate in street tree plan- structure based on the National nin .Downtown Foresters will staff manage the affairs of the As- g sociation and ensure its financial sta- Main Street Center Four-Point participate in City Tree Commit- Approach to Commercial teemeetings where appropriate, bility. They develop clear goals and Revital- ization(see sidebar)and develop and Downtown Tree Manage- objectives for the organization. They special subcommittees and task ment Plan and inventory up- recruit volunteers.They promote the forces as needed. dates. benefits and accomplishments of the + Each committee will meet regu- Association to its members,the busi- ness community,local government larly to implement projects that 5.7 Promote a comprehen- and the public. fulfill the Association's goals. sive Downtown directional + Thank volunteers. Appreciation signage program.work with the Cory and Chamber to assess the need Downtown Association Committees for a professional and useful signage � l system to entice community mem- bers and visitors to visit and enjoy Promotions: Marketing activities including special ' the ever increasing assortment of events, theme nights at the Farmers Market, retail pro- cultural and historic treasures Down- K town.Implementation is in the City's motion, image development. plans for use of Measure Ysalestax Design: Streetscape improvements, sidewalk cleaning, funds 5 holiday decorations, merchandising, public art, build- 5.8 Promote storefront ing enhancement. design improvements.Provide c Economic Activities: Business development, business > education and technical assistance assistance, economic issues. , about storefront improvements to r business owners.Continue the cur- t Thursday Night Promotions: Rules and regulations, rent Beautification Awards program <1 application review, safety and security, public health. to reward businesses that complete projects that contribute to the beau- Parking and Access: Parking assessment and needs, tification of Downtown. Promote oversight, access to Downtown. understanding and use of Commu- Strategic Goals 2007 Downtown SILO Strategic Business Plan—Draft 3— A1TACH 'Ern°,T 3 HM L L' - f + Conduct member surveys.Con- tinue to do annual membership surveys to determine how the businesses feel about current is- sues affecting Downtown. _ + Continue to hold Quarterly Breakfast meetings.The break- fast meetings have proven to be an excellent way for businesses to meet and talk with staff and board members,socialize among themselves,and learn first-hand about current Downtown issues. events will continue to be held be diverse and not over-rely on any + Continue role as advisory body after certain events,and award one source of income. While the to City Council on the Downtown plaques will be given out at the current BID assessments provide the assessment district The Associa- Quarterly Breakfasts. largest and most stable base of fund- tion is the formal advisory body + Increase interest in board ser- ing,the Association's goal is for BID on the assessment district under vice.The Association has some- assessment revenues to account for the current municipal code. The times found it difficult to attract no more than 50%of total revenues. Downtown Association would new board members. It needs The Association will continue to continue in this role until chang- to evaluate why this is so and conduct and explore other revenue es to the Association's structure investigate ways to make board generating activities. and attendant Municipal Code service more prestigious and at- + Thursday Night Promotions changes are in effect tractive. (TNP) + Continue new business orienta- + Concerts in the Plaza tion.Contact new businesses via 6.2 Develop two-year + Taste of San Luis a welcoming letter,provide them work plans and budgets. The + Sponsorships board will develop two-year work + Voluntary Memberships plans from the Strategic Business Plan. Work plans will be divided 6A Continue successful °. into committee tasks.Clear purpose role in business outreach Jf , �i dw statements,goals,objectives,and and advocacy. The Downtown target markets will be developed for business community places a high r each Downtown Association activity. priority on the Association's role as Success will be evaluated based on an advocacy group and survey data those factors. reveals this group is very satisfied with the ways in which the Associa- 6.3 Raise operating funds tion does this. The Association will to augment BID assessment continue its current activities in this area,which include those listed be- _ f district revenues. It is very im- low. L' portant that the Association's budget 1_= ry 2007 Downtown SLO Strategic Business Plan—Draft Strategic Goals i l3 44AC lJ1.s E, 60 7 with a BID information packet, 6.8 Maintain an attractive _ rr feature them in the Association - u and informative website.The newsletter and invited them to Association website is a useful tool meet with Association staff for an and will be continued. orientation. 6.9 Participate as a Certi- 6.5 Publish Annual Promo- fled National and California tions Calendar.The Annual Promo- tions Calendar is a useful tool for the Association and will be continued. California Main Street Alliance and California Downtown As- _ 6.6 Produce an Annual Re- sociation member.Board and port.The Annual Report is a useful staff should attend trainings and promotional tool for the Association networking meetings and use these ceptable,reasonable and suffi- and will be continued. organizations as resources for Down- cient increase.Present to mem- town planning. bership.Propose to City Council. 6.7 Publish regular pub- + Request the City's audit of mem- lications for members and 6.10 Ensure adequate staff- ber's BID payments every two area residents.The bimonthly ing levels.To accommodate the years instead of every five years newsletter, monthly email newslet- growth in its program of activities, as is currently done. ter and monthly Around Downtown the Association will staff the follow- magazine feature are very popular ing positions: 6.12 Form an incorporated vehicles for communicating Associa- + One full-time Administrator nonprofit organization to as- tion activities,Downtown issues and + One full-time Office Manager sume the duties of the Down- merchant news. They will continue + One full-time time TNP Coordina- town Association. Additional to be published. for background information about this + One full-time Promotions Coor- recommendation is provided in the a dinator Appendix(Exhibit F)summarized as k ; ? + One part time Promotions/TNP follows: Assistant(proposed) + Enter into an annual contract + One full time Administrative As- with the City Council to appoint ar sistant(proposed) ' � � :•i� � a newly formed 501(c)6 nonprofit } + Continued intern program.� i � • ;` p g Downtown Association to admin- ` t ister the Downtown BID assess- 6.11 Amend the Current ment revenues for programs and business-based BID fee so that purposes in accordance with BID _ revenues better keep up with law.Comply with all City report- increasing costs and rates of ing and monitoring require- ments.Begin in FY 2008-9. - 9 � _ � inflation. - Work with Ci to formulate a �a City•s + Analyze Downtown Association plan to transition from City provi- sion of services to independent. Strategic Goals 2007 Downtown SLO Strategic Business Plan—Draft 9-35' Elk � provision of such services.. by earthquakes and other disasters, + Analyze impact of the transition '?a+� �+ the Downtown Association needs � Is + . plan on the Association's budget. '' `' ' disaster response and recoveryplan + Incorporate the new nonprofit s• to help minimize disruption to trade and develop bylaws;elect a a "' and commerce,the historic fabric of new board of directors.Assume the Downtown,and to ensure the current Association's assets and Downtown is"open for business"as liabilities. quickly as possible.Such a plan could + Transfer all current operating also be used in cases of fire,flood or systems to the new nonprofit, other natural or man-made disasters. including existing staffing, leases, Strategic Goal 7 equipment,inventory,agree- Establish a disaster response Major strategies for 2007-2012 to ments,work plans,etc and recovery plan for the include in a business district disas- + Employ or contract with a Downtown Association. ter response and recovery plan are bookkeeper and accountant Ormhe City's seismic retrofit ordi- detailed below. to develop accounting for BID nance has resulted in build- and non-BID funds,payroll,and ing upgrades that will protect 7.1 Develop business assis- taxes and financial management life safety and prevent catastrophic tance activities. including accounts payable,ac- building damage if SLO should suffer + Maintain a current inventory of counts receivable, bank reconcili- a major earthquake like the 2003 business and property ations and profit and loss state- San Simeon quake. That earthquake P P rtY owner q q contact information,especially ments. showed, however,that much time for those owners who live out + Establish a bank account for non- can be spent confusion created and of town and may not be easily BID funds and consider the need business assets and historic build- located in an emergency. for legal counsel. ings lost when stricken communities + Identify locations(parking lots, try to work with outside agencies side streets,parks,vacant build- 6.13 Regularly review and and multiple property owners to ings etc.)where businesses can report on Strategic Plan sta- develop downtown recovery poli- be temporarily relocated in tents, tus.To ensure the Strategic Plan cies during a crisis. Since downtown trailers or new spaces and update remains effective and useful,the districts tend to be hit the hardest information frequently. Downtown Association will,in its I annual report,evaluate its activities building a Safer Downtown Thru Retrofitting with regard to their relevance to the plan. While Strategic Plan goals do not necessarily follow acontinuum - _ (that is,they are meant to be on-go- ing or employed as needed without beginning or ending),visiting the Strategic Plan annually and issuing a report on how goals are implement- ed is recommended. Seismic Strengthening& Remodel Project 2007 Downtown SLO Strategic Business Plan—Draft Strategic Goals 3s l .� 9 + Identify likely sources of funding + Encourage the City to develop, for business recovery and main- in advance,shoring and stabili- tain current contact information zation guidelines that will allow on these sources. od` owners to secure buildings and + Identify model marketing and - o give them adequate time to as- promotional activities(advertis- s` ti ="y sess damage and retrieve be- ing,events,signage,etc)that longings and inventory.Identify will speed the pace of business a = r `!,< in advance who will be respon- district recovery. sible for the costs of emergency + Distribute a business owner pre- shoring and stabilization— paredness checklist of things to ,^ owners,the City,or disaster do before and after a disaster. _ ' _ _ 'A relief agencies—as this is often a + Develop a crisis communications ' } . , source of confusion.Review Cali- plan for the Downtown Associa- ;, ` `� fornia Preservation Foundation's tion to use to communicate to ti model documents. affected business and property `` + Encourage the City to develop,in owners via flyers and newsletters permits that could result from a advance,guidelines for allowing if electricity is out,mass media disaster.These standards could owners back into their buildings is shut down and the Associa- also streamline the rebuilding of to retrieve vital financial records tion has limited access to its own historic buildings in-kind.Review and business inventory.Review offices. California Preservation Founda- California Preservation Founda- tion's model documents. tion's model documents. 7.2 Encourage the use of + Support building consensus + Encourage the City to develop,in City policies that will facilitate around the desired replacement advance,guidelines for allowing post-disaster rebuilding. density and land uses Downtown owners,City officials and disas- + Work with the City to ensure that so that replacement projects are ter relief agencies into affected damage assessment procedures not slowed down by debate. areas,many of which will need and forms make it easy to clearly + Be aware that utilities and other to be fenced off and have con- document damage to the archi- infrastructure may be vulnerable trolled access points.Review tectural features of Downtown's to damage and cause long-term California Preservation Founda- historic buildings and that ap- disruption to business opera- tion's model documents. propriate personnel are trained tions.Review the assessment of in their use.Review California critical infrastructure that was 7.4 Include Downtown Preservation Foundation's model prepared by the City for Home- business recovery issues in documents. land Security. citywide disaster planning + Work with the City to ensure that activities and practice drills. any special post-disaster building 7.3 Encourage the use of The Downtown Association should repair ordinances include repair access and entry guidelines have a representative at the City's standards and design guidelines that will enable business and Emergency Operations Center during and a streamlined process for property owners to easily drills and actual disasters to provide reviewing and approving the assess damage and retrieve the information contained in the As- increased number of building belongings and inventory. sociation's Disaster Plan. Strategic Goals 2007 Downtown SLO Strategic Business Plan—Draft 3 J6 Exhibits Exhibit A—SLO Business Owner Survey Results Exhibit B—SLO Property Owner Survey Results Exhibit C—SLO Downtown Association Thursday Night Promotions Recommended Changes to Rules, Regulations and Fees Exhibit D—Town Hall Meeting flyer Exhibit E—Report to San Luis Obispo Downtown Board Regarding the Feasibility of Formation of a Down- town Property Business Improvement District and/or Expansion of the Existing Business Improvement District. Exhibit F—Organizational Structures and Funding memo Exhibit G—City Support of Downtown San Luis Obispo memo Exhibit H—Downtown Strategic Plan&General Plan Policies memo Exhibit 1-501 C 6 Tax Status Discussion ro r I C l �f v' .._VT`ftik 1 f >� \� _ 2007 Downtown SLO Strategic Business Plan—Draft Exhibits- May 20, 2006 EXH..IT A PAGE.LOF L CL.� 11 f X16-SdH41j LY7 01 SLO BUSIeeB: Owner Survey The Business Owner survey results revealed the following information and interests... • 91/2 % of the 650 business owners have responded to the survey ■ 67% of the respondents have owned their business for 10 years or longer; S/1/WIY - ■ 40% of the respondents believe that in terms of security and public safety, downtown is safe and orderly; 60% believe some or great improvement is needed; ■ 25% of the respondents would support Business Owner funded security services,49% would not, 25% are not sure, ■ 25% of the respondents would support Business Owner funded services which would prioritize dealing with people demonstrating questionable behavior in the public rights of way, 45% are not sure; 31% are not sure, CLEANL/NESf ■ 41% of the respondents believe Downtown is clean and well-maintained, 59% think Downtown needs some or great improvement as far as maintenance ■ 25% of the respondents would support Business Owner funded sidewalk and gutter sweeping, 49% wouldn't and 27% aren't sure, ■ 23% of the respondents would support Business Owner funded enhanced landscaping to beautify the district, 52% wouldn't and 22% aren't sure MALRAIMINO ■ 67% of the respondents think that Downtown's Marketing and Promotion is adequate and successful; • 14% of the respondents would support Business Owner funded marketing and promotions above and beyond the marketing activities currently offered in Downtown, 57% would not and 29% are not sure; OOYEBNisNCE ■ 44% of the respondents are satisfied with the amount of indendence/automony the Downtown Association has from the City; 6%are not;49% are not sure ■ 11% of the respondents would support Business Owner funded special benefit services to operate the Downtown Association as an independent non-profit from the City, 56% would not and 32% are not sure ® Up to 35% of the respondents would support paying for sidewalk steam cleaning; 19% would support paying for graffiti removal,24% would be willing to pay for securityrncreased police presence,29% would like to see additional paid parking and marketing/unage enhancement,31% would be willing to pay for more staffing .007_3r May 20, 2006 Eni11BIT 0 PAGE OF L YA; utl'S�iu�t'J�L G�' SLO PROPERTY OWNER SURVEY The property owner survey results revealed the following information and interests... • 13% of the 237property owners have responded to the survey ■ 68% of the respondents have owned their property for 10 years or longer; SAF&W ■ 53% of the respondents believe that in terms of security and public safety some or great improvement is needed; 43% believe it is safe and orderly; C 13% of the respondents would support property owner funded security services, 45% of the respondents would not support property owner funded security services, 42% are not sure., Y 13% of the respondents would support property owner funded services which would prioritize dealing with people demonstrating questionable behavior in the public rights of way, 52% would not,35% are not sure, eL�vuMES.s ■ 59% of the respondents believe Downtown is clean and well-maintained,31% think Downtown needs some or great improvement as far as maintenance ■ 30% of the respondents would support property owner funded sidewalk and gutter sweeping, 53% wouldn't and I7% aren't sure; ■ 23%f the respondents would support property owner funded enhanced landscaping to beautify the district, 53% wouldn't and 23% aren't sure ■ 76% of the respondents think that Downtown's Marketing and Promotion is adequate and successful, ■ 19% of the respondents would support property owner funded marketing and promotions above and beyond the marketing activities currently offered in Downtown, 48% would not and 32% are not sure; 00VSRMAMCF ■ S4% of the respondents are satisfied with the amount of independence/automony the Downtown Association has from the City;6% are not; 39% are not sure • 10r10 of the respondents would support property owner funded special benefit services to operate the Downtown Association as an independent non profa from the City, 57% would not and 33% are not sure ■ Up to 29% of the respondents would support paying for sidewalk steam cleaning and graffiti removal,29% would like to see assistance for graffiti;13% for landscaping;16% increased security; 12%for improved parking;12%for marketing, 13%for better maintenance 3-39 I EXHIBIT.L PAGE OF 2 council agenda ncpoRt ate. CITY OF SAN LUIS OBISPO FROM: Deborah Cash,Administrator Prepared By: Kristin Dennis,Promotions Coordinator SUBJECT: THURSDAY NIGHT PROMOTIONS RULES, REGULATIONS AND FEE CHANGES CAO RECOMMENDATION Adopt a resolution approving the Downtown Association's changes to Rules, Regulations and Fees for Thursday Night Promotions. DISCUSSION Background In early 2006,the Downtown Association Thursday Night Promotions CTNP)committee conducted its biannual review of Rules and Regulations and Fee structure for its program. During that discussion,the following questions were raised: 1. Is the event fulfilling its potential? 2. Is the event performing in a fiscally sound manner? 3. How does the event compare to other similar events in other communities? 4. Is TNP all that it can be? Records show that for quite some time many booth spaces have gone empty week after week. It has become clear that more maintenance and staffing are needed. Amenities like electricity and seating areas would help with improving the look and convenience of the market and an"image" or brand could further boost the event's visibility. In addition, financial statements show that while costs have risen in all areas of running the market,fees have remained relatively low and have not kept pace with costs. Although minor increases in fees have been made in the past, these have not allowed for unanticipated expenses(e.g. the unbudgeted replacement of the TNP information booth)or for adding electricity or increased maintenance. Moreover,due to continued City budget constraints, the Downtown Association understands that it needs to become more self-sufficient in these areas. At its annual retreat,the Board formed a subcommittee and tasked it with performing a complete analysis of the event for efficiency, fiscal health and to make sure the event is "keeping up with the times."The subcommittee,consisting of TNP Chair Patty Carpenter,former chair and current Board President Doug Shaw,Bob Schinkel,Frank DuFault,Bob Walters,Linda Jankay and Tom Copeland, met throughout April and brought draft recommendations to the Board in May,the Board agreed the committee was on the right track and directed the group to formalize recommendations and return with a final report in June. C3 —ye EXHIBIT PAGE 62 0 Thursday Night Promotions Page 2 TNP participants,both current and those who've held permits in the past year(even if they have not come out to the market),received notification of the June 13, 2006 Board meeting to provide them an opportunity to hear the recommended modifications and to offer input. (Attachment 1). The meeting was also publicized in the DeliverE newsletter. The Board held a public hearing on June 13, 2006 and its minutes describing final recommendations (Attachments 2 and 3)will be forwarded by red file. Event History The Downtown Association,formerly known as the Business Improvement Association or BIA, started Thursday Night Promotions (formerly Thursday Night Activities)in 1983 to address an "empty street syndrome"caused when streets were closed to traffic on Thursdays due to"cruise night"keeping visitors away from Downtown. Closing the streets stopped the cruising problem but also deterred foot traffic.The then-BIA saw the opportunity to host an event to entice people to walk through the Downtown, starting at first with some events like volleyball games, then adding food,some vendors and eventually partnering with the SLO County Certified Farmers Market Association. The Dawntown Association celebrated,the-success of the event in 1998 after it produced-and marketed a video "How to Have a Farmers Market in Your Town." Hundreds of copies were sold around the United State§dnd at TNP's 15"'Anniversary celebration, a proclamation honored the event heralding its reput qo)i as both a much loved mmmprOty activity-as vr_ellaa astrong - tourist draw. Now reaching 25.years-as-the_-"World Famous"Farmers-Market{tlw�term: armers Markefis — often used generically to refer-to the event although it would be more accurately desdribed as a," - Street Fair with a Farmers Market), the Downtown Association seeks to remain a leader in the business of providing a quality event, serving the local community and visitors in promoting Downtown. TNP Challenges Resulting in a Need for Change The following were determined as key factors in necessitating changes for the event: 1. Low participation by Downtown businesses During the formation of the event,the intent of offering on-street booth spaces was to allow Downtown Association members the ability to"extend their business' square footage"by participating in the market. MANY attempts have been made over the years to increase participation by this group. Except for those running barbecue concessions, for which space there is a waiting list,the response from Downtown Association members is poor.When polled as to why they don't participate, most say that either they"don't need to," "don't want to" or "can't afford to hire a person to staff the booth." The idea that the market is an opportunity for Downtown businesses has not been met with much enthusiasm by Downtown Association members,yet weekly many requests from non-members are denied because of the existing rule. Regardless of the number of participants, the costs remain the same to the Downtown Association leaving the committee to believe the market could be more vibrant,exciting and viable if all the spaces were full. Therefore,it is recommended the rules permit non-members at -"// EXHIBIT L rAGE- Thursday Night Promotions Page 3 a higher cost only if spaces are not first reserved by members. This would help fill up gaps in the market and boost flat revenues. 2. Increased maintenance,insurance and other costs The impact of the market on the physical environment has been a topic of discussion between businesses,the City and the Downtown Association for many years. The Association hires a cleaning person but it is apparent that the level of service provided is inadequate. The event has reached a point that a cleaning crew is necessary both during the event and the morning after, particularly in the barbecue areas. However, current funding levels will not support this. In the past few years,insurance costs have tripled---obtaining special event insurance is becoming more difficult for nonprofits and we have been fortunate to find an insurer who covers us at the level required by the City. Many other costs are affiliated with the event: equipment and supplies,credit card fees,postage, printing and operational supplies, banner fees, barricade fees. The Downtown Association budget subsidizes about 30 % of TNP costs mainly in operational areas (telephone,rent, equipment)however the Board and the committee feel the event should cover its own costs to a greater extent. 3. Need for Increased Staffing Currently, one person serves as TNP Coordinator with in-office support from the Administrative Assistant(and to some degree, the Administrator). The Downtown Association heavily relies on the assistance of Cal Poly interns, typically two to three per quarter, to physically put on the weekly event. Therefore three or four persons are responsible for running the entire event,even when attendance in the summer can reach more than 10,000 visitors. This small group sets up— within one-half hour the information booth, signage and merchandise,gets the mascot dressed and in location. Then as the event is underway,staff and interns oversee vendor set up with a walk through to check permits and collect fees,oversee entertainment setup, sell merchandise, provide information,meet with health department,police and fire representatives,report cars in tow zones as well as any other disturbance, sell merchandise, break down and oversee maintenance. The staff is also responsible for posting all meters on Thursday. From April to October,staff also coordinates.regularly held special events at the market including Rib Cook Off,Mothers' Day Flower Give Away,Downtown Brown's Birthday,Public Works Night,Kids' Night,Halloween Costume Contest and Pumpkins on Parade,Snow Night and others. Because the TNP Coordinator also serves as the Promotions Coordinator,the requirements of the position have outgrown what one person is physically capable of doing. A part-time assistant is necessary not only to provide the much-needed additional support but also to facilitate additional activities like the seating area,Main Stage entertainment area,increased space bookings, electricity assignments and more. It is estimated that a part-time would work 20 hours per week. 4. Lack of operating amenities including electricity,seating,lighting Since its inception,TNP has relied on the kindness of businesses to allow vendors to"plug in"to their in-store electricity source. While this works in an ideal situation, over time,problems have arisen. – 7� Eur XHIBIT.�PAGE- 0F1 Thursday Night Promotions Page 4 Draping and running electrical cords from the street to buildings is probably not the best way to provide this service. It not only is unattractive but could be a liability as well. Unfortunately, it's often luck of the draw who will be able to access this amenity. The committee felt strongly that it's time to design a system for providing power that is equitable—any one who needs electricity should be able to obtain it from a safe and approved source. The Downtown Association has worked with Public Works to research the idea and a plan has been devised whereby power sources would,at the Downtown Association's expense, be installed in key locations and distributed through "spider boxes,"essentially large power strips where rolled extension cords could run from vendors' booths to the boxes along the gutter. Vendors would pay for this service. Another amenity the Board and committees felt would enhance TNP is table seating for diners. While the idea of sitting on the curb munching a rib is quaint,the reality is that many people would rather sit in a chair at a table and enjoy their meal. (This would also most likely reduce the number of gnawed rib bones tossed into the gutter.) A seating area would be established whereby a monitor would set up, keep clean and pack up the enterprise at the end of the evening. Increased lighting, especially in the winter,for entertainment and the information booth would also greatly enhance the attractiveness of the event. 5. Low fee structure As shown in Attachment 4, current TNP fees in SLO are low by comparison to those charged in a number of other communities of similar size and operation. Many event managers expressed amazement at the low fees in SLO and,even those who had modeled their event after ours,said they were surprised we are able to operate such a large scale event on our budget. As stated before, simply raising the fees slightly as has been done in the past would not be sufficient to accomplish the goats of upgrading,improving and efficiently running TNP. Procedure and Implementation Upon the Board's approval,the recommendations are now forwarded to City Council. Upon Council's approval of same,all TNP participants and the public will be notified of all changes. (Attachments 2 and 3). The recommended changes would take place incrementally with the new fee structure (Attachment 3)effective July 1,2006 (to coordinate the advance billing with the Association's budget cycle.) Of critical importance to "lick starting" all the other improvements is the hiring of a TNP assistant that would occur in August 2006. Once the assistant is hired,it is estimated the increased maintenance and seating area would be implemented by September 2006. The Downtown Association is working with Public Works and eventually PG&E to have power installed and hopes to offer this amenity within six months.A branding and marketing campaign would begin sometime in late summer/early fall after selecting a graphic designer and image. A complete operating budget is found in Attachment 5.. Proposed Rules and Regulations Revision Typically,from time to time,the TNP committee reviews its Rules and Regulations to ensure the rules are up-to-date and meeting the needs of the event. Revisions to the Rules and Regulations L� EXHIBITS ?AGE 0 . Thursday Night Promotions Page 5 are found in Attachment 3. While most revisions are minor, one new addition allows for those booth spaces that go unreserved prior to one month's booking date to be reserved by non- Association members, a departure from current policy. The committee believes that the empty spaces detract from the overall viability and excitement of the event and while many attempts have been made to encourage Downtown Association members to participate in the event,less than two dozen of 650 businesses take advantage of the opportunity. Two conditions would be placed on non-member applicants: they must wait until at least one month prior to reserving a spot to book that spot with priority going to Downtown Association members;the cost would be double that of members. CONCURRENCES The Thursday Night Promotions Committee approved these recommendations at its June 7,2006 meeting and forwarded the recommendations to the Board for its approval on June 13, 2006. FISCAL IMPACT Budget figures showing current fees and expenditures and proposed fee changes are shown in Attachments 3 and 5. Proposed fee changes would cover proposed service upgrade as well as regularly anticipated increases. Then;would be no impacts to the City of San.Luis general fund ALTERNATIVES 1. Deny the proposed recommendations and retain status qua This is not recommended due to increased costs and need for improved services at event. 2. Modify the proposed recommendations. This is not recommended as proposed recommendations constitute a"package deal,"whereby those combined services that would enhance and are necessary to maintaining success of T NP event would lack a funding source. ATTACHMENTS 1. Notice of Public Hearing Fee comparison of other communities 2. Proposed Fee changes 3. Proposed Rules and Regulation revisions 4. Fee comparison of other communities 5. Proposed Operating Budget 6. June 13,2006 Minutes Downtown.Association Board of Directors Meeting (Note: Minutes will be provided to Council via Red File) 7. Resolution to revise Thursday Night Promotions rules,regulations and fees v7 7 P- W-at,),, wre vut `I EXHIBIT %PAGE 1� 0� June 6, 2006 Dear Thursday Night Promotions Participant: FA The Downtown Association Board of Directors will hear San Luis Obispo recommendations from the Thursday Night Promotions Downtown Subcommittee regarding Rules, Regulations and Fee Structure of Association the weekly event at its Tuesday, June 13, 2006 meeting that begins at 7:30 AM and will be held at 990 Palm Street (City PO Box 1402 Hall) in the Council Hearing Room. Son Leis Obispo California 93406 Following standard Council procedure, the committee and staff will present the recommendations after which time the public will be www.downrownsto.com invited to offer comments. You are encouraged to attend and participate in this process. (There will be a public comment period for those items not on the agenda, so please note that comments on this issue will be taken when that topic is raised). Written comments may also be provided prior to or at the meeting. A copy of the agenda report for this item will be available from the Downtown Association office on Friday, June 9. You may stop by the office at 1108 Garden Street, Suite 210 to obtain a copy or email Kristin(cWowntownslo.com and request that a copy be provided electronically to you. The Thursday Night Promotions committee feels that the TNP event will benefit from the recommendations it is proposing and invites you to be a part of keeping the event successful. Sincerely, Kristin Dennis Promotions Coordinator EXHIBIT.L PAGE 109 Thursday Night Promotions Recommended Category and Fee Revisions July 1, 2006 Categories of Participation new fee (old fee) Downtown Association Member Vendor $40 ($16) This would be any business within our assessment district. Mon-Member Vendor $80 (not eligible) All businesses that are not members, must submit a copy of their business tax certificate in the City of SLO. These businesses must be open for regular business hours 5 days a week for 8 hours a day. (Same for DA members) Not for Profit/information/Political/Cal Poly $30 ($16) Must have a tax ID #. Can only fundraise once per quarter. BBQs $0.50/sq. ft. ($.26/sq. ft.) Entertainment (non sponsored) $40 ($20) Media $50 ($30) Rules & Regulations $5 ($2) For a paper copy. A copy can be downloaded off our website for free. New Categories Entertainment sponsor $300 N/A Electricity $10/night N/A This must be arranged with TNP Coordinator at time of booking. Advertising (to be a part of the Tribune ad) $30 N/A Late fee $15/wk late N/A This is for quarterly billers who do not pay bill on time. To Thursday Night Promotions Participants: EXHIBIT GAGE Y0� Welcome to Thursday Night Promotions(TNP) also commonly referred to as the"World Famous"Farmers' Market. The San Luis Obispo Downtown Association is proud of the growth and popularity of TNP,one of the most successful promotions in Downtown SLO and emulated by communities everywhere. TNP has earned a reputation as a well-rounded event featuring a Certified Farmers' Market, food vendors, merchant and community displays,as well as great entertainment bringing national visibility to both the Central Coast and Downtown San Luis Obispo. Thank you for your interest in participating in this event. This booklet contains the rules and regulations that apply to all participants. It is the responsibility of all participants to familiarize themselves with and adhere to these requirements during TNP.. The TNP Committee, which governs this weekly event,has developed these rules and regulations to assist you in planning your TNP activity.. Because of the many participants and thousands of visitors who attend, it is important that the Rules and Regulations as set forth below be strictly observed. A Promotions Coordinator serves on the Downtown Association staff to assist you with your TNP plans and logistics. Please contact the Promotions Coordinator (541-0286)if you have any questions. Thursday night in Downtown San Luis Obispo is a special experience for people of all ages - residents, tourists and participants alike. Your cooperation in helping maintain the family and community-oriented atmosphere so essential to TNP's continued success is greatly appreciated. Board of Directors Thursday Night Promotions Committee SLO Downtown Association The Downtown Association Office is located at 1108 Garden St., Ste. 210 (805)541-0286 www.downtownslo.com 1. PURPOSE, GOALS, and STRUCTURE A. The purpose of TNP is to promote business in the Downtown core.TNP is organized by, administered by and paid for by the Downtown Association.The Downtown Association is an advisory body to the San Luis Obispo City Council and is created and operated under state and local laws. The Downtown Association administers TNP in order to: * create a positive image of Downtown San Luis Obispo �1 1 4TTA f�F,j;r' pp p EXHIBIT�-�PAGE q 0� * expose community members to retail stores and services offered Downtown * generate foot traffic on Thursday nights * provide a forum for community activities * maintain the Downtown as the center of retail, social,and civic activities * enhance the community as a whole. All activities must be consistent with these goals. B. The Downtown Association Board of Directors urges members to participate in TNP, both to enhance the event and to benefit their own businesses. C. It is the goal of the Downtown Association to schedule activities on Thursday nights that promote a wholesome, family atmosphere. Events should appeal to all ages, and provide a consumer mix that reaches all aspects of the marketplace. Downtown Association members should politely report infractions of any rules to the Promotions Coordinator. D. All activities are under the auspices of the TNP Committee (Committee) which reviews applications, plans events and promotions,and enforces all rules and regulations. The TNP Committee meets every 2nd and 4th Wednesday of each month or as directed by the Committee Chair.These rules and regulations may be revised at the discretion of the Downtown Association Board of Directors and upon approval of the San Luis Obispo City Council. 2. DEFINITIONS The following definitions refer to commonly used terms throughout the Rules and Regulations and serve to clarify the meaning of key terms. TNP -an abbreviation for Thursday Night Promotions. Sometimes referred to as "Farmers' Market,"TNP includes the presence of the SLO County Farmers' Market Association, Inc., a separate entity. RETAIL BUSINESS -a retail business that occupies an approved retail space within the boundaries of the Downtown Association district. Retail businesses must operate during normal business hours on a year-round basis with that business, pfimmy plae, f -9,and State of Qgifemia Vending machines, newspaper/magazine racks, P.O. boxes, snack boxes, and other similar businesses that primarily involve machines or do not encompass personal contact are excluded from this definition and are not eligible to participate. .3 y8' 2 G L'e'44'14u GLiY C'-�t -EXHIBIT AGE -ahFE DOWNTOWN ASSOCIATION MEMBER -A Downtown Association member is a business within the Iegally recognized and formally delineated Downtown Association boundaries which pays a double business license tax;OR is a business within the boundaries which is exempted by state or federal mandate from paying a business license tax but which makes a voluntary contribution to the organization (voluntary member). A map of Downtown Association boundaries is included in this booklet. I 1P GOOD STANDING-A memos in "good standing" is defined as a.Downtown Association member who has all the necessary permits to operate a business within the City of San Luis Obispo and TNP, has paid the DewHtevirn Asseeiatien.tm and TNP fees,has no violations and is actively using the space assigned for TNP. BUSINESS HOURS- Consecutive hours of operation for consecutive days during a business week. Minimum hours of operation are five consecutive days for five consecutive hours per day. An example of this could be Monday -Friday 10:00 am. - 3:00 p.m. TNP OFFICIAL -Any member of the Downtown Association staff, Board of Directors, TNP Committee,City of San Luis Obispo Police or Fre Departments can be designated as a TNP official for enforcing the rules and regulations of TNP. FIRE LANE -a 20' wide unimpeded path for use by fire, police, and medical vehicles, the location of which is determined by the Fire Department and the Downtown Association. The fire lane in the 700 block of Higuera Street will be designated by the parking ticks/markers on the street for both sides of the block. The center lane striping will designate the fire lane in all other blocks of Higuera Street. All booths must conform to this requirement. The TNP Committee will review booth configuration at the time of application for compliance with the fire lane regulations. For entertainers, a 20 foot fire lane must be observed down the middle of the street or on one side or the other. NON-COMPETING BUSINESS-a business outside the Downtown Association district boundaries which is determined at the time of application to not be similar,related and/or a competing business with any business or organization that is a member of the Downtown Association. FUNDRAISING -the solicitation of funds in return for merchandise or services. PRESENCE ON THE MARKET-Participants are expected to leave display booth or usual type of setup in assigned space until 9:00 p.m. No early take downs are allowed 3 - 4/7 3 li�i li!'e;,eL�isL�'•� `' � EXHIBIT C4 ' AG� OFD& 3. MEMBER PARTICIPATION A-Mi;wt sales during TNP aFe Waited te sales by DewMemffl Asseeiatien membes >501 e6, dweao Tax 9)) er-ganizatiens. BW Members wishing to participate in TNP must file an application with the Downtown Association and,upon approval and payment of fee,obtain a permit from the Downtown Association office. Retail vendors must have a seller's permit and a retail store in the Downtown Association district with scheduled,posted, operating business hours. Merchandise sales at TNP are limited to those items sold from an established inventory within the normal scope of each participant's daily business. Sales or services at TNP must be provided by a Downtown Association member owner, manager, employee or family member and not an agent of the business. Service and professional applicants must conduct the majority of their business within the Downtown Association district. B. TNP permits may not be reassigned or sold. A Downtown Association member's business cannot act as a sales agent for a non-member business. The participant must be a Downtown Association member in good standing and have an active lease or ownership in the Downtown Association district. If it is determined a member business selling at TNP is selling inventory not part of that member's business, the permit may be revoked. C. Upon request,and space permitting,the Committee will attempt to place vendors in close proximity to their places of business. Member participants are not guaranteed space in the location of their choice. 5. FUND RAISING FOR/ BY NOT-FOR-PROFIT ORGANIZATIONS 4 EXHIBIT (PAGE/_t�'OF� A. At the discretion of the Committee, a Not-For-Profit organization may be permitted to participate if the Committee determines that the organization's participation will provide a public service or will serve to promote the purposes and goals of TNP. B. Not-For-Profit groups may conduct direct sales no more than four(4)times per year, once per quarter, and not more than two(2)consecutive weeks. Sponsorship from Downtown Association members may not be solicited to circumvent this rule. Note: Fundraising dates& materials must be pre-approved by the Committee. C. Participants shall limit sales to items specified on the approved application. Merchandise or related fundraising items can be at the participants' booth on approved fund-raising dates only and may not be displayed weekly. D. Organizations wishing to raise funds during TNP must have a Not-For-Profit status. Verification must be provided at the time of application. Reasonable documentation, such as meeting minutes, by-laws,articles of incorporation, communication from the Secretary of State,tax payer documentation or other indication of non-profit status will be accepted as verification. Note: Student clubs and organizations must provide written authorization from their advisor(s) - Cal Poly students are to initiate an &plan at the ASI Business Office. E. All monies generated by sales or solicitations, excluding direct material costs, must go to the Not-For-Profit group, not to individuals within the group. The Committee may request a full accounting. F. The organization must submit its application no less than three(3)weeks in advance of the desired attendance date. Upon review and approval by the Committee and payment of fees,a space will be assigned. Participants are not guaranteed space in the location of their choice. G. If food items are to be sold, the organization must have the necessary written approval from the San Luis Obispo County Health Department prior to receiving a permit. H. Participants shall keep their area clean during the activity and leave the space and surrounding area clean afterward. I. Participants will be required to reimburse the Downtown Association for any costs incurred relating directly to their activity. 6. POLITICAL,RELIGIOUS AND OTHER INFORMATIONAL GROUPS A. Approved applicants will be given space.on a first-come, first-served basis according to space availability. Participants are not guaranteed space in the location of their choice. Additional spaces maybe temporarily provided for special events or occasions, e.g. election season. 3 ,51 EXHIBIT B. All groups or individuals wishing to disseminate information, pass petitions, or promote political, religious, or personal beliefs are strongly encouraged to submit a signed application no less than three(3)weeks in advance of the date desired. Upon review and approval of the application by the Committee the applicant's name will be added to the list desiring space.The Committee will not discriminate on the basis of race, religion,creed,color, gender,political beliefs,national origin, age,physical disability or other basis prohibited by law. C. Applicants whose format is determined to be entertainment shall not be eligible for a space allocation under this section, but shall be regulated by Section 7. D. Participants may not harass,follow, or intimidate Downtown visitors or Downtown Association staff..Activity that impedes the flow of pedestrian traffic is not allowed. Applicants must stay within their assigned space. Activities that are conducted in such a manneras to interfere with the goals or purposes of TNP may result in immediate revocation of the permit. E. Handbills may only be posted with City or property owner approval. No stickers or adhesive materials are allowed at TNP. F. Participants shall keep their area clean during TNP and leave the space and surrounding area clean afterward. Failure to do so may result in additional fees. G. Except for approved entertainment use,no amplification is allowed. 7.ENTERTAINMENT A.The committee shall select the type of entertainment best suited to promote the goals of TNP. Auditions,demo tapes or CDs are required. Entertainers will perform the type and style of entertainment exhibited during audition. B. Entertainers must keep sound levels within the following guidelines: 8o decibels at Garden Street and 90 decibels at all other TNP venues. Entertainers may not use generators. Violation of decibel level guidelines will result in warning followed by electrical disconnect and/or removal from the market. C. Power connections are the responsibility of the entertainer. Entertainers must treat merchant property with great care. Any abuse will result in immediate revocation of permit and cancellation of additional performances. Electrical hook-ups are subject to Fre Department regulations. All extension cords must be taped down or properly covered to avoid a tripping hazard. D. Entertainers are subject to appropriate fees which must be paid when permit is issued. Entertainers may passively ask for donations but may not actively solicit money. R Entertainers are subject to space availability and assignment as determined by staff. .3 .TTA C i EXHIBIT PAGE± F.The Downtown Association requires that all music performed during TNP be original and/or music in the public domain. G. Entertainers must stop performing at 8:45pm to start cleaning up, ensuring that the road will be cleared by 9:30pm. 8. MEDIA (RADIO,TELEVISION, NEWSPAPER) Cooperation between TNP and the local media is encouraged to promote TNP. Media organizations may apply to participate during TNP and observe the guidelines listed below. -No amplified music unless authorized by the TNP Committee. -All giveaways(non-adhesive material only)must be pre-approved by the Committee.No adhesive materials of any kind will be allowed. -Promotion/Advertising shall be for the applicant only, not for special events or non- member businesses. 9. APPLICATIONS,PERMITS,SPACE ALLOCATION A. Those wishing to participate in TNP must submit an application must three(3) weeks prior to the desired attendance date. Cal Poly clubs must initiate an e-plan through the ASI Business Office. It is the applicant's responsibility to contact the Downtown Association office regarding the status of their application. Upon approval by the Committee, staff will assign a specific space or location and issue a permit reflecting the space allocation. The space will not be considered reserved until the appropriate fees are paid. B. The person in charge of any activity must be in possession of a valid permit at all times.The permit is to be conspicuously displayed during operation. C. All approved applicants will receive a space assignment only if the fee(s) are paid. The space corresponds to a street address. PARTICIPANTS MUST STAY WITHIN THEIR ASSIGNED SPACE AND OUT OF FIRE LANES AT ALL TIMES. It is the participant's responsibility to be aware of the fire lanes, as specified by the TNP Coordinator.. D. The TNP Coordinator has the authority to assign or to reassign spaces. Participants are not guaranteed space in the location of their choice. Vendors are limited to one awo —�� EXHIBIT YAAGd� 0FA:::9 assigned space per event unless authorized by the Committee. Tardy vendors(vendors showing up after 6:00pm)may have their space reassigned because of space avaflabiility. E. Spaces not to exceed the following dimensions: Direct Sales - Member 10' x 10' Member Food 10' x 12' Barbecue fees based on square footage used, booth not to exceed 15' in depth Direct Sales - Not-for-Profit 10' x 10' Informational 10' x 10' Non-competing/ Volunteer member 10' x 10' Media 10' x10' Non-Member businesses are only allowed to display merchandise, no sales permitted. F. Vendors must keep all items in their assigned booth space and cannot use City property (trees, parking meters, etc.)to hang signage or any other materials. 10. APPROVAL OR DENIAL OF TNP APPLICATIONS A. Under the Street Closure or other relevant permits issued by the City of San Luis Obispo,the Downtown Association and the TNP Committee have full discretion concerning use of the area designated for TNP.Applications submitted will be reviewed by the TNP committee for approval or denial based on Event criteria. It is the applicant's responsibility to contact the Downtown Association office for this determination. If an application is denied, the basis for denial shall be given upon request. B. If an application is denied,and the applicants disagrees with the basis for denial, an appeal may be made by applicant,first to the TNP Committee,then to the Downtown Association Board of Directors and,if necessary, to the San Luis Obispo City Council. 1L STREET CLOSURE The City of San Luis Obispo Public Works crew begins barricading the streets at approximately 5:30 p.m. Approved participants may begin setting up as soon as the barricade truck has left the area. Support vehicles must be unloaded and off the street by 6:00 P.M.Vehicles left inside the barricaded area after 6.00pm are subject to towing at the owner's expense. All activities end at 9:00 pm. and participants must clear their area entirely before 9:30 p.m.at which time barricades are removed and traffic flow resumes. A presence of the permittee must be maintained in the space assigned until 9:00 p.m. .3-sY EXHIBIT—C-�PA4�o OF� No early take-downs are allowed Under no circumstance are vehicles allowed to enter the barricaded area during.Market hours,6:00pm-9.00pm. Even in the circumstance of rain. The following guidelines,given to all participants for set up and take down,state (in per): TNP Officially begins at 6pm and ends at 9pm. Higuera St.is barricaded from all side entries and at both ends approAmWely at 5:30pm,at which time vendors may begin setting up. - Do NOT stop vehicles or begin set up in booth space until after 5:30pm. - Do NOT block the center lane of Higuera St.at any time; pull to the side lane and Toad your vehicle. - NO VEHICLES (EXCEPT THOSE USED FOR OCCASIONAL DISPLAY PURPOSES & NOT DRIVEN) ALLOWED ON HIGUERA ST. BETWEEN 6-9PM. If vendor is running late or must leave early,all equipment must be carried in/out. " - Drivers must exercise extreme caution and drive slowly during the 5:30- 6:00pm set up and 9:00-9:30pm take down. Drivers must heed all directions issued by TNP Coordinator regarding safety. 12 RAIN POLICY In the instance of rain,the TNP Committee will decide whether or not to cancel TNP by 3:00pm. It is the participant's responsibility to contact the Downtown Association to find out the status of TNP. If a participant chooses to not participate due to the weather,this will not be counted against the participant. If the TNP Committee chooses to cancel TNP,a rain credit will be given to participants signed up for that night. No rain credits will be given unless the Committee has given the official call. 13. HEALTH,FIRE,AND POLICE REGULATIONS While the Downtown Association is not an enforcement body for the Health, Fire and Police Departments, cooperation with these agencies is essential. Participants shall be aware of code requirements and comply. Only"people" events will be permitted in the fire lanes. No tables,risers,or any other equipment will be allowed. Specific questions regarding the codes should be directed to the appropriate agency. 14. EQUIPMENT AND SERVICES The Downtown Association is under no obligation to provide power, water,or any equipment to participants.An applicant needing spec services must make these needs known in the application. The Downtown Association's only obligation is to provide a space on the street. It is the applicant's responsibility to provide all necessary equipment EXHIBIT G PAGE./ oQ for operation of his/her booth. Power cords,when used, must be taped down and conform to City requirements. Generators may not be used. 15. FEES Participation in TNP is a privilege for both businesses and Not-For-Profit organizations. Since there are substantial costs (such as janitorial,trash removal, street closure and insurance) involved with sponsoring these weekly events,the Downtown Association has established permit fees in the following categories: * Member barbecue vendors •Direst-Sales--Member. * Not-For-Profit groups * Information/Politigroups x Entertainment * Media NenGeffipetiagBuaifiess A fee schedule, subject to annual review,is available in the Downtown Association office.There will be no refunds or credits unless TNP is officially canceled due to rain. FEES FOR PERMITS MUST BE PAID WHEN THE PERMIT IS ISSUED. THE PERMIT MUST BE DISPLAYED DURING THE EVENT. 16. FOOD VENDORS INCLUDING BARBECUERS Within the current boundaries of TNP(Higuera Street between Nipomo and Osos streets), there shall be no more than nine(9)barbecues,each with a reserved space assigned. In addition to the TNP rules,all barbecues are subject to Health and Fire Department regulations. In order to retain the reserved space, all food vendors must adhere to the following rules that apply: A. All food vendors must have a business and full service commercial kitchen within the Downtown Association boundaries. B. Food items should be the same type as are sold on the daily menu at place of business unless otherwise authorized by the committee. C. Barbecue operation must be kept within the space assigned. D. Food vendors may begin setup no earlier than 5:30pm Barbecues may pulled onto the street no earlier than 4.00 p.m. Barbecues are not to be started.in an assigned street space until after 4.00 p.m and are not to extend into the street past the parking place marker. All barbecues must be set up in their assigned space prior to lighting the 3-5& U J� EXHIBIT PAGE 0 barbecue. No"live"or tit barbecues can be transported into or out of the TNP area During lighting, the barbecue is to be surrounded by barriers set five(5)feet away to protect pedestrians from flames . (This may require temporary placement of barriers on sidewalk areas). Standard starter fluid or propane wands can be used to start barbecues. All vendors using open flame must operate in accordance with all fire code regulations. Each barbecue must have an approved fire extinguisher on site. E. Areas assigned to barbecues that consist of on-street,regular metered parking spaces (a total of no more than 18 spaces(nine barbecues)may be posted "No Parking After 3pm"by the Downtown Association, complying with City of SLO requirement that such posting occur 24 hours in advance of the restricted time. Barbecue unit may not be brought into space until 4PM. F. Barbecues must be surrounded by barriers set five (5)feet away and can be easily moved for emergency vehicle access. G. Support vehicles must be moved away from the barbecue area by 6:00 p.m. H. Food vendor areas must be kept neat and clean at all times. Each barbecue vendor must provide at least one 50-gallon container for refuse. I. Permits may be revoked by the TNP committee for the following reasons: (The same rules for revocation apply to all members.) 1. Closure of business. (Exceptions may be made-for renovations that do not exceed 60 days.) 2. Non-compliance with Downtown Association, City of San Luis Obispo Fre Department, or County of San Luis Obispo Health Department regulations. 3. Non-payment of prescribed fees within the designated time period. 4. Poor attendance. 5. Sale or transfer of business J. Permits are subject to modification and revocation by the City Council at any time and are valid for the indicated permit period only. IC A waiting fist of members who wish to barbecue or use an LPG device is kept in the Downtown Association office. Any space that becomes available will be reserved.for the member at the top of that list. To be placed on the waiting list, a member must file a TNP application and the member must show that they are qualified in all respects. L. Barbecues and LPG users are required to participate every Thursday unless TNP is officially canceled due to weather. The Downtown Association office will notify barbecue participants on the status of TNP due to weather by 2:00 p.m. the day of TNP. Failure to participate will cause the permit to be reviewed by and possibly revoked the committee. Barbecues and LPG users are allowed one absence per quarter. .� 457 ==: 9n U90LVIr-Le 9 9 EXHIBIT C PAGE/0 OF 17. SAN LUIS OBISPO COUNTY FARMERS'.MARIM ASSOCIATION,INC. (FARMERS'MARKET) The Farmers' Market Association participates in TNP at the invitation of and under contract with the Downtown Association. The Farmers' Market Association operates under State regulations and those set by its Board of Directors. Certain guidelines have been established by the Farmers' Market and the Downtown Association addressing specific needs of TNP. All people wishing to sell their agricultural products directly to the public must contact the Farmers' Market Association, as the Downtown Association does not issue permits or space assignments for Farmers' Market, and issues no variances to circumvent Farmers' Market Hiles. Call 544-9570 for information about the Fanners' Market Association. 18. GENERAL RULES FOR PARTICIPANTS: A. Any vendor, club, group, or persons participating in TNP must comply with all of the rules. Non-compliance,including offensive conduct, may result in immediate revocation of the permit. If a permit is revoked an appeal may be made,first to the TNP Committee, then to the Downtown Association Board of Directors, and finally to the San Luis Obispo City Council. During the appeal process a space will be held for the participant providing that all fees are paid. B. The Committee reserves the right to revoke the permit and/or order the removal of all equipment and material(belonging to a participant)from the street for any reason deemed necessary by the Committee to better meet the goals and purposes of TNP or for public health, safety and welfare. C.All participants must conspicuously display the name and location of their business or organization on a sign with the minimum size being approximately 400 sq. inches(14"x 30'). Merchants' show windows may not be obscured at any time by boards,banners or other large displays. D. Lighting on booths should be used for illumination of the booth and display purposes only. Strobing,flashing and/or rotating lights are not permitted. All lighting must be battery or electric only. The Downtown Association does not guarantee electricity. It is the particiant's onsibili to solicit electriE!Ly from the businesses they are in front ol~ �J EMBIT C'lPAGE )_D0F E No person shall deface or otherwise abuse the Downtown buildings or plants including stickers,paint or graffiti. F Amplification is NOT allowed without previous written approval from the TNP committee. G. All applications for TNP must contain name,address,phone number, and signature of applicant or applicant's authorized agent This person must be the contact person. The applicant shall acknowledge the participant's liability for damages (including costs for clean-up and damages to property belonging to merchants or tenants). Participants are responsible for contacting the Downtown Association if there is a contact person change or address change. H. Members must participate once space is allocated to maintain validity of permit. Non- use may result in that space being reassigned. Members must have a valid permit for each date of attendance; members not participating on a pre-paid continuous basis must secure a valid permit for each date of attendance by coming to the Downtown Association office and paying the required fee prior to date of attendance. Members not participating for 90 days or more must submit a new application. I. If food items are to be sold, members MUST apply to,and have the necessary written approval from the SLO County Health Department prior to receiving a TNP permit 3, Permits may be revoked for the following reasons: (The same rules of revocation apply to all participants). 1. Closure of business (Exceptions may be made for businesses undergoing renovations that do not exceed 60 days.) 2 Non-compliance with Downtown Association, City of San Luis Obispo Fire Department or County Health Department regulations. 3. Non-payment of prescribed fees within the designated time period 4. Poor attendance. Vendors may miss no more than one night per quarter, due to emergency. 5. Sale or transfer of business Appeal of TNP Committee determination shall be made in accordance with"Appeal Process"in General Rules. K Businesses who have not applied for and received a permit for TNP will not be allowed to participate in TNP and are subject to removal. ATTA C' 1EXl�31T PAGE�30FIKe? L. TNP participants must have proof of liability insurance with minimum coverage of $1,000,000 and workers compensation insurance for all employees participating in TNP. Participants are required to have their insurance carrier notify the Downtown Association staff in writing of their insurance.status. Further, only business owners or immediate family member may operate vendor booths without providing proof of workers compensation coverage;if family members are working the booth, a letter must be on file with the Downtown Association indicating this intention. All other workers are assumed to be employees and must be covered by workers compensation and proof of such will be provided to the Downtown Association prior to approval of application. Nt The Downtown Association,the TNP Committee,its agents or staff are not responsible for theft or damages to property belonging to persons participating in TNP. The Downtown Association assumes no responsibility for items left unattended during or at the conclusion of TNP. N. No person participating in TNP shall state, imply or otherwise suggest that the Downtown Association, or any of its member businesses endorses, sponsors or supports the views of applicant's business or organization. O. Alcoholic beverages or affiliated promotional products may not be sold, consumed, promoted or advertised during TNP. P. Tobacco products and merchandise may not be sold, promoted or advertised during TNP. Q. Tattooing,permanent cosmetics and body piercing may not be performed or administered during TNP. Body piercing does not include piercing the leading edge or earlobe of the ear. R The Committee reserves the right to refuse participation to any applicant. S. The Committee will not discriminate on the basis of race, religion, creed, color, gender, political beliefs, national origin, age or physical disability or any basis prohibited by law. T. Participants in TNP shall be appropriately dressed (e.g. shirts and shoes), and conduct themselves with proper decorum U. The committee reserves the right to limit sales of items that are in direct competition with those items of Downtown merchants. V. Permits may be revoked for the following reasons: (The same rules for revocation apply to all members.) 1. Sale or transfer of business. 3- �b 9T�J'3CLoL �i._' I 1 EXHJBIT�L pAGE2p" 2- Closure of business. (Exceptions may be made for renovations that do not exceed 60 days.) 3. Non-compliance with Downtown Association, City of San Luis Obispo or County of San Luis Obispo Health Department regulations. 4. Non-payment of prescribed fees within the designated time period. 5. Poor attendance. W. Appeal Process for Permit Revocation Any participant or applicant denied a permit or whose permit is revoked may appeal the denial/revocation in the following manner. Hie formal complaint within 10(ten)days of the denial/revocation (obtaining complaint form from Downtown Association office)stating nature of complaint and requesting appeal to be agendized at the next earliest or desired meeting date of the Thursday Night Promotions Committee. If complainant disagrees with determination of Committee, complainant may then repeat the procedure appealing that decision to the Downtown Association Board of Directors. Should the complainant disagree with the determination of the Board of Directors,the complainant should contact the City of San Luis Obispo City Clerk about appealing the decision to the City Council. X All giveaways (non-adhesive material only)must be pre-approved by the Committee. No stickers or adhesive materials of any kind will be permitted to be sold,distributed, given away or offered. Y. No pets/animals are allowed at TNP without pre-approved authorization and only in limited and controlled circumstances. Animals utilized to assist disabled persons are excepted. PLEASE OBTAIN YOUR PERMIT FROM THE DOWNTOWN ASSOCIATION OFFICE PRIOR TO THE THURSDAY NIGHT YOU WISH TO PARTICIPATE The office is located at: 1108 Garden Street, Suite 210 San Luis Obispo, CA 93401 www.downtownslo.com Rules &Regulations updated 6-01-06 by Kristin Dennis, Promotions Coordinator Approved by TNP Committee 6-07-06 �— Zell" EXHIBe.2 AG OF. Farmers' Markets around California Chico: $45.00 Application fee for the season, non refundable Application fee waive for DA members DA Members$35/week Non Profit!Political $35/week Craft/ Commercial $45/ week Food Service(Prepared foods) $551 week One time use rate—add $10 to booth space in lieu of app fee $10 late fee applies to vendors who do not pay by 5:00 pm Tuesday, and the space may be reassigned El Centro: Entry Fee $60-non refundable $10 Electrical power *$100 fine if you leave trash behind Hanford: Restaurants pay 10% of nightly gross sales, min$15 DA vendors$25/night Non members $35/night Non-Profit$30/night **Join DA as a Volunteer Member for$125 and receive DA rates Parc Coast Farmers Market Association: *They handle 40 Farmers Markets from around the state. Application Fee$75 $45/night or 6%of sales(when sales are $750 or more);whichever is greater Davis: Application Fee$40,$25 renewal Members 6% sales, $20 Min Non-Members 8% sales, $26 min Restaurants$75 Clovis: Market Reservation fee$150 Food vendors, entr6e$150/market, members$125 Specialty food vendors(finger foods i.e. Popcorn) 15%of gross sales $35min Gourmet goods vendors(Non certifiable agricultural products and/or packaged foods)bread, cheese, coffeel0% gross sales $25min Attractions 15% gross sales EXHIBIT�%PAGE�oF? TNP 06-07 Proposed Budget _... Category Amount Amount Income Current Proposed Merchandise 5,500 5,500 Fees 71,000 130,000 Total 76,500 135,500 Expenses Events 5,500 8,500 Supplies/mdse 10,000 25,000(includes elec.box installation&supplies) Insurance 2,500 4,000 Trash 11,000 15,000 Janitorial 9,000 12,000 Barricades 6,000 6,000 TNP Coordinator 25,000 22,000 TNP Assistant 0 12,700 Office 10,000 14,000(includes increased workspace,storage) Ofc, Mgr 9,500 9,500 Downtown Brown 1,440 1,800 Graphics/Signage 0 5,000 Total 89,940 135,500 DA Budget subsidy 13,440 0 ==+vaaY+Y r4k J �1 IBITfr-1 OF Z ' RESOLUTION NO. (2006 Series) A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO ADOPTING THE DOWNTOWN ASSOCIATION'S REVISED THURSDAY NIGHT PROMOTIONS RULES,REGULATIONS AND FEES WHEREAS,The San Luis Obispo Downtown Association conducts a weekly promotional event,Thursday Night Promotions W),also commonly referred to as Farmers' Market; and WHEREAS,The TNP event is a financially self-sustaining, safe and fun family-oriented activity; and WHEREAS, the SLO Downtown Association Thursday Night Promotion Committee conducted a biannual review of its program;and WHEREAS, the TNP Committee determined the program had unfiilfilled potential and needed service upgrades; and WHEREAS, the TNP Committee submitted to the Board of Directors revisions to the Rules, Regulations and Fees to accomplish the goals of the program and maintain the event's viability; and WHEREAS, the Board of Directors approved the recommendations submitted by the TNP committee, NOW, THEREFORE, BE IT RESOLVED that the Council of the City of San Luis Obispo hereby approves the revised Rules, Regulations and revised Fee Schedule, copies of which are on file in the office of the City Clerk Upon motion of seconded by and on the following vote: AYES: NOES: ABSENT: The foregoing resolution was adopted this day of 2006. Mayor David F. Romero ATTEST: "Z7�1 R 7 T 0 Resolution No. (200x Series) EXHIBIT PA G E Z—t'e 0 F� Page 2 Audrey Hooper City Clerk APPROVED AS TO FORM: Jonathan P.Lowell City Attorney (���y/y���au'p� R 1µr - �2.'G C4 C�vll�llY4JL �L..�� 6/ PAGE OF San Luis Obispo INTERESTED IN THE FUTURE OF Downtown DOWNTOWN? Association WANT TO MAKE A DIFFERENCE IN YOUR COMMUNITY? You're invited to attend a TOWN HALL MEETING To assist in the update of Downtown's Strategic Plan This Thursday, July 27 6 - 8PM SCO Art Center, corner Broad and Monterey Your input is welcome on issues like • Cleanliness • Safeiy • Downtown Growth and Density • Funding for Downtown Services • Downtown Promotions and Marketing to develop new, revised or refreshed goals and strategies for the Downtown Association to use as a guideline for the next five years. Open to the public Snacks and leverages Provided Questions or Information 541-0286 Please RSVP! 0j LL- LAHIBITPAGE .f . 0 REPORT TO SAN LUIS OBISPO DOWNTOWN BOARD REGARDING THE FEASIBILITY OF FORMATION OF A DOWNTOWN PROPERTY BUSINESS IMPROVEMENT DISTRICT AND/OR EXPANSION OF THE EXISTING BUSINESS IMPROVEMENT DISTRICT Presented by Darlene Rios Drapkin,Eichenfield&Associates June 12, 2006 Introduction and Overview: The purpose of this study was to explore alternate forms of funding for SLO Downtown Business Association by determining the level of support for. 1) Expansion and/or amendment of the current BID formed under Section 6101 in July 1978 and/or 2) Establishment of a"special benefits" district, in Downtown San Luis Obispo to take the form of a"property assessment district'whose function would be to fund special benefit services, or those activities and services that are currently not being provided by the City of San Luis Obispo. District Boundaries: The Study Area included not only the original boundaries from the BID formed under Section 6101 in July 1978, but the additional area as described in Attachment A as agreed upon surveying the area for natural connections. Numbers. Within this proposed area, there are 381 parcels owned by 273 property owners. Overall Database: The overall database, based upon our preliminary study and the above listed boundaries, included the following variables: Property Variable Total Database City Ownership, % of total Building Square 3,183,836 square feet 462,900square feet* (14.54% of Footage total Lot Size 4,014,065 square feet 569,616 square feet(14.19% of total Linear Frontage 28,354 linear feet 2,273 linear feet 8% of total Survey responses: Surveys were mailed to the 381 property owners within the existing BID boundaries as well as the 100 property owners within the new study area. Surveys were also sent to the 600+business within the study area. The responses to the survey, based upon property variables were as follows: 347 _ ATTr ja{�{ •}�� I ll UJSC H,:LJ LLtJ y) 1 EXHIBIT 2�/PAGE2 OF("o Supportive,Not Sure Non-Supportive of the Concept PROPERTY OWNER LOT SIZE % BUILDING % FRONTAGE 1. Copeland 3.80% 6.86% 6.8% 0 2. VINTAGE 1.36% 1.62% 1.9/0 0.23% 0.2% 3. HIGUERA 0.36% 0.1 4. MCNAMARA DAVID 0.19% 0.07% TOTALS 5.71% 8.78% 9.00% 5. COAST BANK 1.19% 0.97% 0.5% 6. L J Morganti 0.83% 0.58% 0.9% 7. NELSON * 0.40% 0.21% 0.5% 8. VERNACCHIA 0.31% 0.65% 0.7% 9. MITCHELL-LEITCHER 0.30% 0.31% 0.4% 10. BUTLER 0.28% 0.13% 0.0% 11. MAI NO. 0.19% 0.38% 0.7% 12_ V& F JONES 0.19% 0.59% 0.7% 13. SANT EYE 0.19% 0.21% 0.0% 14. COVEY 0.19% 0.15% 0.5% 15. JENKINS DIANE 0.15% 0.07% 0.1% TOTALS 4.22% 4.18% 0.05 16. MARTIN &HOBBS 0.34% 0.33% 0.8% 17. MARTIN JEAN A 0.26% 0.09% 0.1% 18. MARTIN JERRY 0.25% 0.33% 0.7% 19. CARPENTER 0.22% 0.27% 0.3% 20. MADSON 0.20% 0.19% 0.2% 21. HINDLER 0.18% 0.06% 0.1% 22_ GOUGH 0.17% 0.06% 0.2% 23. PORCHE 0.17% 0.27% 0.2% 24. KIM MATTHEW 0.16% 0.06% 0.3% 25. PUGH 0.16% 0.06% 0.1% 26. TRENEV 0.14% 0.06% 0.1% 27. ERNST TRUST 0.12% 0.05% 0.1 28. PETRA 0.12% 0.23% 0.1% 29. HALES MEYGAN 0.11%. 0.07% 0.1% 30. PALM STREET LLC 0.08% 0.17% 0.4% 31. GRAZIANO 0.02% 0.02% 0.1% 3 '� Exiilbrr.L/ PAGE OF (o TOTALS 2.70% 1 1 2.30% 3.30%1 ITOTALS 1 12.631 1 15.261 1 12.35% 1 rEX'HIBITL PAGE 4F .b Analysis of Data: During our meetings on May 22 and 23 with City Staff and Economic Development Committee,there was consensus that the survey results indicated there is not clear support for the concept of establishing a "special benefit"PBID district. The expansion and/or amendment of the current BID is still being explored although the findings from survey the businesses garnered similar responses. Therefore it was determined to not proceed to the PBID formation stage for now. 3 ,7D :^ : :_� EXIHJBIT l%PAGE .-OF SLO Downtown Association Boundaries Street Name Addresses Addresses Per City Ordinance No. 649(1975 Series) GIS Data Broad 900-1308 963-1.31 Chorro 900-1304 941-131 Garden 1100-1308 1110-1: Higuera 552-1103 560-10 Marsh 497-1114 497-11 Monterey 600-1108 978-11 Morro 900-1301 950-11 Nipomo 1000-1306 1010-1: Osos 890-1302 1220-1: Pacific 600-1106 6669-1 Palm 682-1104 682-111 Santa Rosa 900-1304 940-131 New Boundaries to Explore Monterey 1129-1255 Johnson 979 Marsh 1107-1177 and 299-545 Marsh 300-545 Morro 1322-1346 Osos 1320-1350 Santa Rosa 1315 Pismo 1068 Pacific 1162 and 544-570 Chorro 1318-1370 Palm 601-673 Higuera 385-563 Carmel 435 Beach 1210 Garden 1319-1334 Broad 1312-1314 Nipomo 1320-1344 371 C} ,'� Lri.G IhSI'dueGi;l l�i:i � 4L EXHIBIT" PAGE 1YOF le Supportive,Not Sure,Non-Swportive of the Concept PROPERTY OWNER LOT SIZE % BUILDING % FRONTAGE 1. Copeland 3.80% 6.86% 6.8% 2. VINTAGE 1.36% 1.62% 1.9% 0.23% 0.2% 3. HIGUERA 0.36% 0.1% 4. MCNAMARA DAVID 0.19% 0.07% TOTALS 5.71% 8.78% 9.00% 5. COAST BANK 1.19% 0.97% 0.5% 6. L J Mor anti 0.83% 0.58% 0.9% 7. NELSON ' 0.40% 0.21% 0.5% 8. VERNACCHIA 0.31% 0.65% 0.7% 9. MITCHELL-LErrCHER 0.30% 0.31% 0.4% 10. BUTLER 0.28% 0.13% 0.0% 11. MAINO. 0.19% 0.38% 0.7% 12. V & F JONES 0.19% 0.59% 0.7% 13. SANT EYE '0.19% 0.21% 0.0% 14. COVEY 0.19% 0.15% 0.5% 15.JENKINS DIANE 0.15% 0.07% 0.1% TOTALS 4.22% 4.18% 0.05 16. MARTIN &HOBBS 0.34% 0.33% 0.8% 17. MARTIN JEAN A 0.26% 0.09% 0.1% 18. MARTIN JERRY 0.25% 0.33% 0.7% . 19. CARPENTER 0.22% 0.27% 0.3% 20. MADSON 0.20% 0.19% 0.2% 21. HINDLER 0.18% 0.06% 0.1% 22. GOUGH 0.17% 0.06% 0.2% 23. PORCHE 0.17% 0.270/6 0.2% 24. KIM MATTHEW 0.16% 0.06% 0.3% 25. PUGH 0.16% 0.06% 0.1% 26. TRENEV 0.14% 0.06% 0.1% 27. ERNST TRUST 0.12% 0.05% 0.1% 28. PETRA. 0.12% 0.23% 0.1% 29. HALES MEYGAN 0.11% 0.07% 0.1% 30. PALM STREET LLC 0.080/0 0.17% 0.4% 31. GRAZIANO 0.02% 0.02% 0.1% TOTALS 2.70% r 1 2.30% 3.30% TOTALS 12.631 1 15.26 12.35% j 7o� EkiiBITL PAGE r OF Organizational and Funding Recommendations for Inclusion in the 2007 Strategic Business Plan Background This memo includes background analysis and recommendations for reorganizing the Downtown Association as a 501(c)(6) nonprofit organization. It is proposed that this new organization contract annually with the City to manage BID assessment revenues in accordance with Council directives. An increase in BID assessment revenues to better keep up with members' demands for BID services would also be a goal of the new organization. When the Association's first Strategic Business Plan was compiled in 2001, the recommendations included growing the organization to meet members'increasing needs along with becoming more visibly involved in policies and decisions that affect Downtown. This has had the effect of increasing the Downtown Association's visibility and sophistication. It has also resulted in frustration by the Association with the constraints of being part of the City governmental structure due to its status as an advisory body to the City Council. As such, the Downtown Association is subject to the State of California's prohibition against taking positions and using public resources on political activities. The Association has found instances where it is conflicted because it cannot represent its members'focused concerns due to its status as a City Council advisory body. This inability to engage in such activities necessitates inclusion of recommendations that resolve the quandary in which the Downtown Association finds itself. Both the City and the Downtown Association agree it's time to restructure their relationship in a way that maintains the goals and objectives of supporting the Downtown but allows the Downtown Association to operate as a more autonomous agency on behalf of its members. While the Downtown Association enjoys many benefits of being an arm of the City,the Downtown Association must comply with personnel,purchasing, contracting,and lobbying requirements of any governmental body.This is something that many other downtown associations, established as independent nonprofit organizations, are not required to do. Thirty-two years after its formation,the current BID funding structure has outgrown its ability to service Downtown into the future.Thirty percent of businesses pay the minimum fee of only $25 per year and 50 percent pay less than $100 per year.There is no automatic cost of living adjustment in the minimum fee. Auditing BID payments and collecting delinquent payments is time consuming and costly.BID revenues have not kept pace with the rising costs of providing services.This puts increased pressure on the Downtown Association to hold time-consuming fundraisers and special events that must raise an additional$314,300 per year.The Association,in order to continue to provide the level of service and projects desired by our members, must have more funding and more reliable funding sources. One of the larger tasks performed as part of the Strategic Plan update was a feasibility study whereby the consultants looked closely at whether a property based improvement district 3 -73 J�'x 3' EXHIBIT'' PAGE - OF, (PBID) would (a) be more beneficial for the Downtown Association that its current BID structure and (b) if property owners were willing to participate in the concept. A property based business improvement district (PBID) has the potential to generate greater revenue than the current BID because property owners are often more willing than merchants to invest in maintenance and long-term improvements that will positively impact their properties. Since with a PBID, the County collects fees as a part of property tax payments based on building size as opposed to declared annual sales, there are no issues of delinquencies or underpayment.A PBID may also result in more member involvement. A new, PBID funded Downtown Association would have local property owners as its members. Another consideration by the consultants was whether or not the size of the district should and could be enlarged to include those businesses in the areas near Downtown that either did not exist when the district was formed or who may now benefit from inclusion in the district. Survey data revealed mixed responses and no clear desire to change the district's boundaries. Ultimately, the realization that property owners were not unhappy enough with the current BID system to support the PBID concept proved the PBID less than satisfactory and the idea was put aside for the time being. Meanwhile, during research of the existing BID law (1965 version) it was learned that within the law were provisions for expanding boundaries and increasing fees by a vote of the Council without the need for a vote of the membership, subject to a protest from businesses paying a majority of the fees. Looking at all the models and the need for increased funding and autonomy,reforming as a 501(c) 6 seems to be the most logical, seamless,.and productive choice. This model will enable the Downtown Association to engage in political activities provided it does not constitute the Downtown Association's primary activity. Many downtown associations and Main Street communities have adopted this model across the nation. It may be helpful to review the forming legislation, Parking and Business Improvement Law of 1965, sec 36003: Discretion of council as to use of revenue; advisory boards or commissions The city council shall have sole discretion as to how the revenue derived from the tax is to be used within the scope of the purposes (stated below);however the City Council may appoint existing.advisory boards or commissions to make recommendations as to its use or the council may create a new advisory board or commission for the purpose. Sec 36000 Purpose of part The purpose of this part is to authorize cities to impose a tax on businesses within a parking and improvement area which is in addition to the general business license tax,if any,in the city, and to use such proceeds for the following purposes: (a) The acquisition, construction or maintenance of parking facilities for the benefit of the area (b) Decoration of any public place in the area 3 -7y r �17�..� EXHIBIT PAGE �OF (c) Promotion of public events that are to take place on or in public places in the area (d) Furnishing of music in any public place in the area (e) The general promotion of retail trade activities in the area. Recommendation 1: Establish Non-Profit Status The Downtown Association should enter into an annual contract with the City to appoint the newly formed 501 (c) 6 non profit Downtown Association to administer the Downtown BID assessment revenues for programs and purposes in accordance with BID law. Supporting documentation regarding the benefit of this particular model over others is shown in attachment "I" and is recommended by the City Attorney.The program would be similar to what is currently in place except on a contractual basis. The current practice of developing a two-year work plan and budget would continue, the main difference being the BID funds would stand apart from the overall budget and be applied strictly to those uses approved and reviewed annually by Council for adequacy of performance. Regular reporting would ensure the proper application of the funds,regular monitoring would be necessary to detemune if the projected BID revenues reflect budgetary assumptions. Moreover, this change in structure would necessitate that some services currently provided by the City to the Downtown Association would be reassessed addressing continuation of services, suspension of services,negotiation of services. Determination of future City support will be made after a thorough analysis of services currently provided to the Downtown Association and the Association's short-term need for City support.An agreement for provision of services will be negotiated prior to the change in structure. Finally, the Downtown Association should begin the process immediately of procuring its 501 (c) 6 status and work with the City to identify the end-of-fiscal-year 2007-08 timeline as the official"changeover" period with the contract stipulating 2008-09 BID revenues be applied to the existing two-year work program to enable existing programs to continue. Modification to the existing ordinance would reflect these changes. Note. Regarding internal restructuring for the Downtown Association,it is recommended that all systems currently operating including staffing, existing leases,equipment and inventory, agreements,work plans, etc.would remain in place. The Downtown Association will employ or contract with a bookkeeper and accountant to develop accounting for BID and non-BID funds,payroll, taxes and financial management including accounts payable, accounts receivable,bank reconciliations and profit and loss statements. A bank account for non-bid funds will be established and legal counsel may also be retained. Recommendation 2: Evaluate BID Fee Increase Another component of moving forward with restructuring is the necessity of increasing membership fees that have not changed since the organization was founded in 1975 in order to meet the costs of doing the Association's business. In the appendix is.a breakdown of current BID fees and how they are applied within the context of a"blended budget." 3-2_' EXHISIT.L-'PAGE OF (Exhibit F) The organization must bring fees into line with cost of delivering services after 33 years of no fee rate increases. Attendees of a 2006 Town Hall meeting indicated support among the majority that the current minimum fee of$25 (new members) and$25 for renewals under$100,000 gross receipts is proving to soon be inadequate to continue to provide the level of services currently enjoyed. Because current fee structures are assessed as a percentage based on gross receipts,it is recommended only to increase the base level fees: first year fee and under-$100,000/annual receipts fees. As the organization proceeds with restructuring and enters into a contract with the City to manage the BID revenues,this presents an opportunity to address the issue simultaneously. The Downtown Association should perform an analysis of its programs to determine an acceptable,reasonable and sufficient increase. This recommendation will be presented to the membership and proposed to Council. As noted above, according to existing BID law, the Council has the authority to adjust BID fees and boundaries,though no boundary changes are being recommended at this time. 3 '7e a.c tst4fliL�.l�l.. G rZ ^JBIT—LL PAGE L OFL� _ E N a) 0 E c N 0 c c c E ai d E (ton u . ui m > to c c ch 0 Q Z 0 0 I� N 1 Q N C 3 0 ea m L m E \ o N V C H 0 m %D yp ' c N'd6 'LI1J L itO c„ EXHI'81 ° PAGE . OF s C 0 UN C I L MEMORANDUM tian;,r urs ;k® t .o;t t,,. �n a z`c�nt7 n;a e;:y;. t r DATE: AUgust2�86�7 Off' �'l 10-I TO: Council FROM: Ken Hampian SUBJECT: City Support of Downtown San Luis Obispo As indicated in the attached listing, several years ago the City and the Downtown Association(DA) agreed to review the services we provide to the DA on an annual basis, coinciding with the budget process. While we have not always done so annually, we are following the practice at this time to assure the DA that, even with our budget difficulties, the City intends to continue its high level of service to the DA and the downtown in general. Doing so is also especially important in light of recent questions that have been asked, and concerns that have been expressed, by some members of the DA regarding the adequacy of City support for the DA and the downtown. In addition to direct services to the DA and downtown found in Attachment 1, the City has many policies and practices that support and protect the downtown. These are provided as Attachment 2. We have discussed this update with the DA Executive Director, and will be sharing this information with the DA Board tomorrow, so that its members will have an accurate understanding of the City's high level of support and its commitment of services and policies to enhance and protect the downtown. In short, for many years City government has viewed the downtown as the "heart and soul' of the community, and accordingly, the level of services and policy protection provided the downtown is far greater than that of any other area in the City. Attachments 1. Services for DA and Downtown Area 2. Downtown Policies Cc: Department Heads Deborah Cash Shelly Stanwyck Betsy Kiser 3' 78' �� 8,sT. i"i!-•'iii i.%E r'II Li� 7 ii G'1 C6��tcJ ei � k EXHIBIT PAGE , -` 00(.. Attachment 1 Services the City of San Luis Obispo Provides to the Downtown Association and Downtown Area (June 2004) The City of San Luis Obispo(City)presently provides to the San Luis Obispo Downtown Association (DA) and the downtown area a wide range of services. This document is intended to provide an overview of those services and the discussion has been divided into four categories: 1. Ongoing Services a. To the Downtown Association (DA) b. To the Downtown Area 2. Fee Policies for the DA 3. Special Project Assistance for the DA 4. Special Event Assistance for the DA All of the services listed in the document are provided free-of-charge by the City to the DA or the downtown area, unless otherwise noted. Services not included in this document are assumed to be the responsibility of the DA(i.e. telephone charges,hanging holiday garlands, etc.) This document is intended to reflect the mutual understanding of existing service levels and respective responsibilities between the City and the DA. The goal is to avoid confusion or misunderstanding from arising during the year while carrying out numerous activities in the downtown area. The listing of services is provided for informational purposes only and should not be viewed as a binding commitment. Several of the service levels listed are required to be set or modified by the City Council(e.g. street sweeping), and thus may be subject to change, if financial or other circumstances warrant. The DA will be notified well in advance of any proposed changes to the services provided in order to obtain DA input prior to receiving final approval. To keep this document up-to-date and accurate, the City and the DA will review the listing of provided services annually (in the spring of each year to coincide with the budget process) and make appropriate changes at that time. 1. ONGOING SERVICES A. To the Downtown Association • Special Liaisons -The City Council designates liaisons to the DA,who attend board meetings and other meetings, as appropriate. City Administration designates a staff liaison(presently the Principle Administrative Analyst), who provides day-to-day ombudsman support to the DA Executive Director relative to City departments and service issues. The Economic Development Manager provides support to the DA Executive Director relative to the Strategic Plan and Economic Activities Subcommittee. • Quarterly Meetings - The CAO,Economic Development Manager and Principal Administrative Analyst hold quarterly breakfasts or lunches with the 3-79 1 Ek'. 41 4 PAGE . OF._�. Attachment 1 DA Board President, Executive Director, and possibly other DA staff,to discuss issues of mutual concern. • Day-to-Day Operations Support-The City provides the DA with ongoing full- service support from Human Resources, Finance, (payroll, accounts payable, revenue management, collections, investments, general ledger and financial reporting), Attorney, and Administration. B. To the Downtown Area • Street Sweeping-The City provides street sweeping services in the downtown seven days per week, compared to once a month on arterials and residential areas. • Trash and Recycling- The City's solid waste franchisee provides refuse and recycling pickup in the downtown on a daily basis, as opposed to other retail areas, which are responsible for contracting on their own schedule. • Sidewalk and Trash Can Cleaning-The City provides steam cleaning to the sidewalks and trashcans in the downtown on a quarterly basis. • Tree Trimming Services - City provides a high level of tree trimming services to the Downtown. • Bicycle Racks - The City maintains and installs bicycle racks throughout the downtown. • Graffiti-The City provides ongoing graffiti clean up. • Fire Inspections - City provides fire inspections of businesses once a month • Support During Construction -In addition to direct promotional support to the DA during City construction projects, the City also provides enhanced staff liaison to downtown businesses and forbids construction during the holiday season. • Police-The City provides a large variety of police services directed toward the downtown. ➢ Four sworn personnel committed to the downtown area full time. ➢ A satellite office provided on Marsh Street. ➢ Special event planning. ➢ Attendance at Downtown Association meetings. ➢ A majority of time spent Wednesday through Saturday providing police services in response to nighttime activity in the downtown. (20% of the total number of police calls handled in 2001 were for service in the downtown core.) ➢ Directed enforcement and outreach pertaining to homeless 3'10 O'Ctl YO'O WBYYYCY IL Yl' V OJ EE _SIT. - PAGE .4' OF _ Attachment 1 individuals in downtown and Mission Plaza. ➢ Education programs for downtown bar/restaurant employees. ➢ Attendance at Bar Owners Association meetings. 2. FEE POLICIES FOR THE DA • Reduced Fees for Special Events-All City services and fees charged to the DA for special events are assessed and paid at 50% of the billable rate. • Reduced Vendor Fees -Vendor Fees for DA special events are assessed at 50% of the billable rate (5%of each vendor's gross sales at event or$10.00 per vendor booth at event). The DA pays vendor fees for all DA sponsored special events except Concerts in the Plaza, Taste of San Luis, and Holiday Parade. • Payments-The City provides the DA with a detailed invoice of assessed charges after the completion of an activity (i.e. banners, concerts) or a special event. • Reduced Banner Fees -The City services for hanging and removing downtown banners is charged to the DA at the 50%rate. Fees are assessed only when City staff provides this service. No fees are assessed for banners hung by the DA or private entity. • Free Facility Use- The City provides free usage of City facilities for DA sponsored events. 3. SPECIAL ARRANGEMENTS OR PROJECT ASSISTANCE FOR THE DA • Free Downtown Bench Installation and Maintenance-The City provides installation and maintenance of all decorative benches in the downtown. • Construction Promotional Support- The City provides direct financial assistance to the DA to be used for promotional support when City construction projects cause disruption to the downtown. • Shared Access to Metal Chairs- The City and DA mutually own 150 metal chairs stored in the City's Murray Adobe, available for use at City and/or DA sponsored event only. The City and DA jointly approve all other chair uses. • Installation of Flags-The City allows the DA to hang flags from City-owned street light poles. • Free Storage- The City provides free space for a storage container in the lot adjacent to the Corporation Yard. 4. SPECIAL EVENT ASSISTANCE FOR THE DA 3--f/ A 1n1 �'F`.'f�.-�II11 -- Qa^*', N44'�IL Attachment 1 Thursday Night Activities • Enhanced Parking Structure Security- The City provides a security guard at each parking structure until 11:00pm during Thursday Night Activities. • Enhanced Police Support-The City deploys 2-8 patrol officers on bicycles and on foot (an average of 4) downtown each Thursday night to monitor event activities. Shortly,they will be joined by Cal Poly bicycle officers. (The number of officers deployed is dependent on time of year and crowd size.) • Enhanced Parks and Recreation Department Support-The City's Parks and Recreation Department coordinates and provides staff support for 3 special events each year during Thursday Night Activities(Snow Night,Easter Egg Hunt, and Halloween Hoopla). • Barricade Setup and Removal-The City provides barricade setup and removal each Thursday night. The DA is assessed a fee established by the City for this service including barricade replacement costs. • Vehicle Towing- City police traffic officers arrange for vehicles within the Farmers Market area to be towed prior to the event. • Free Portable Restrooms Usage -The City provides the transport and setup of 2 trailer units with 8 portable restrooms for use downtown on Thursday night. • Enhanced Fire Support-The City provides periodic safety walk-through on Thursday nights at 6:30pm to ensure fire codes are maintained. An engine and crew, as well as paramedic unit, are in attendance at every Farmer's Market. • Free Annual Barbecue Area Cleanup-The City provides cleaning of downtown barbeque sites on an annual basis. If a site needs additional cleaning during the year, the vendor will be charged for the cost. Holiday Season Activities • Trolley Usage- The City provides the Trolley for transporting City officials only in the Holiday Parade. The DA provides decorations and staff to decorate the Trolley for the holiday season. • Free Mission Plaza Christmas Tree Installation - The City provides installation of the Christmas tree (with lights) in the Mission Plaza, with assistance provided by DA volunteers. • Holiday Parade Coordination -The City provides special event parade coordination, facility use of Mission Plaza, barricade setup and removal, and transport and setup of 2 trailer units with 8 portable restrooms. A5 ur531oJLI;�j -'J Attachment 1 • Po6ce Support- City provides police support for parade and monitor training. • Fire Inspections-City provides fire inspections of holiday parade floats. • Free Santa's House Storage-The City provides storage for the Santa House adjacent to the Corporation Yard. The DA is responsible for transporting the Santa House to the Mission Plaza and back to the storage area. The DA is responsible for all repairs required. • Meter Bagging- City provides meter bagging for Christmas sales days. Taste of San Luis • Extended Marsh Street Parking Structure Elevator Hours-The City provides the elevator service until 10;30pm on the day of the event. • Free Mission Plaza Preparation-The City provides a routine hosing down of the Mission Plaza prior to the event. The DA will be charged for any additional scrubbing,.if requested. • Support of Event- Council members and staff purchase tickets (usual two tables' worth) and attend the Taste of San Luis in support of the event. Concerts in the Plaza • Free Use of Mission Plaza -The City provides facility use of the Mission Plaza and the Murray Adobe for storage of chairs, fencing, and other event related items. • Support Staff-The DA provides support staff at each concert event. City support staff provided (if requested by the DA)for each concert event will be charged to the DA at the current billable rate. 3 -0 '3 Attachment 2 Policies and Practices Beneficial to the Downtown General Plan Policies • Center of the City- LU 4.1 discusses downtown's role as the cultural, social and political center of the City, as well as home for those who live in its historic neighborhoods. Further, the General Plan encourages entertainment and cultural facilities in the Downtown(LU 4.3) • Parking- LU 4.10 requires a diversity of parking opportunities in the Downtown with major increases in supply being in the form of structures outside the commercial core. • Creek-.LU 4.11 describes the protection and restoration of San Luis Obispo Creek in the Downtown. • Historical Preservation -.LU 4.12 focuses on the preservation and restoration of architecturally and historically significant buildings in the Downtown and requires new buildings to be compatible. • Pedestrian Orientation-.Several General Plan policies encourage Downtown to be pedestrian oriented, compact and the City's most intensely developed area(LU Sections 4.5, 4.15, 4.16.1). • Design Principles - There are many General Plan policies relating to the design of Downtown which encourage active uses on the street level, encourage residential uses above the street level, encourage continuous store frontage, taller buildings in the mid-block, and appealing details at the street level to be enjoyed by pedestrians on the sidewalks (LU 4.16.1 - 4.16.6). • Government Offices-Both City and County government offices are encouraged to continue to be in the Downtown(LU 4.17, 5.14 and 5.3). • Cultural Facilities-The City is required to help provide facilities for a library and for arts and sciences which meet broad community needs (LU 5.2). Development Standards Applicable To Downtown Only • Parking District-The Downtown has a parking district that allows business and/or property owners to pay fees in lieu of providing on-site parking. • Parking Requirements- Parking ratios in the Downtown (e.g. the number of required spaces per square foot of floor area and use)are one half of that required in other commercial areas. • Parking Structures-The in-lieu parking fees charged do not cover the costs of building structured parking and the City subsidizes the remainder of the cost. 10W Attachment 2 • Residential Density-The Downtown is allowed the greatest residential density in the City. • Development of Property-There are no property line setbacks required in the Downtown (except for creeks) and 100%lot coverage is allowed. • Building Height-The height of buildings in the Downtown is allowed to the maximum in the City of 50 feet. • Sidewalk Dining -Sidewalk dining is allowed in the Downtown with private use of the City-right-of-way for a nominal fee. • San Luis Creek-City improvement of San Luis Creek with Mission Plaza and Creekwalk as project amenities and dual access to retail establishments and restaurant spaces. Other Policies Beneficial to the Downtown • Public Works Proiects in Downtown - For the City's most recent Public Works construction projects in the downtown extra levels of staff support and financial support have been provided to provide the highest levels of communication and service to the businesses,property owners, customers and community members who utilize downtown. The most recent example of this is the efforts by Public Works, Utilities and Administration during the Century Project in conjunction with the allocation of funds for a marketing campaign during the project by the Downtown Association. • Construction -Construction is prohibited in the downtown during the holiday shopping season, from Thanksgiving through New Year's. • Public Art- The majority of the City's public art has been placed in the downtown. • Cultural Activities -To help downtown serve as the City's cultural center, the City provides rent at$1 per year to the Little Theatre, Children's Museum and Carnegie Library, and at a very reduced rate to the Arts Center. EXH)b PAGE It MCMOIZAnbum DATE: July 17, 2007 TO: Deborah Cash,Downtown Association Administrator FROM: Kim Murry,Deputy Director of Community Development 781-7274 SUBJECT: Downtown Association Strategic Plan Deborah— Thanks for the opportunity to review the draft plan. I have included copies of the pages with notations as to General PIan policies which support the various programs. Attached to this memo is also a list of those policies with the actual verbiage from the General Plan. I'm enclosing a copy of the Community Design Guidelines — as I recall from our conversation, you indicated interest in obtaining a copy to update your very old copy. Finally,rve asked Doug Davidson and Tim Girvin for information regarding development in the downtown over the last 5 years — both approved and constructed — as well as information regarding the Irish Hills development. I will forward that information on to you as soon as I have received answers. Please Iet me know if you have any questions after reviewing the information. Again, thank you for the opportunity to review the draft plan. DA Assoc Strategk PZ=&vft Revkw7-)7-V EXHIBIT )`PAGE=OF 2 Legal Issues Nonprofit Tax Status The IRS continues to closely scrutinize applications for Main Street organizations for tax-exempt status under section 501(c)(3). As a result, many Main Street organizations have chosen to forego the rigors of the 501(c)(3) application experience and to apply for a 501(c)(4) (civic leagues and neighborhood associations) or 501(c)(6) (business leagues and chambers of commerce) designation instead. Superficially, 501(c)(6) status may appear to be more compatible with the economic goals of a local Main Street program than 501(c)(3) designation. However, (c)(6) allows only businesses— not individuals or foundations—to deduct contributions (as a business expense)to the nonprofit. This restriction, however, is inappropriate for broad-based downtown revitalization and management programs that seek to involve a broad spectrum of community interests and to improve the quality of life for the entire community. For this reason, (c)(6) status creates and implies an inappropriate limitation which fundamentally excludes a basic part of the intent of the Main Street program and other broad-based, comprehensive downtown management programs. Tax status A nonprofit downtown management organization's federal tax status has several implications, from the ability of donors to make tax-deductible contributions to the types of activities the organization can and cannot undertake. Nonprofit corporations are not automatically exempt from paying federal and state income taxes, state sales tax, utility taxes, and Social Security tax. Instead,nonprofits must apply for federal, state, and local tax exemptions from the applicable authorities. The organization's federal tax status typically affects its ability to be exempted from state and other taxes. 501(c)(3) Tax-exempt Charitable and Educational Organizations 501(c)(3) classifications are often sought by downtown programs when they are spun off from city departments. There are eight subcategories in the (c)(3)classification: 1. Religious 2. Charitable Legal Issues 3 � HAJdo'aIIV 'B. �1 EXHIBIT�PAGE 3 3. Scientific 4. Testing for public safety 5. Literary 6. Educational 7. Groups that foster national or international amateur sports competition 8. Groups that prevent cruelty to children or animals Groups that qualify for(c)(3)status must meet a series of tests to maintain tax-exempt status: ■ They must be organized and operated exclusively for charitable and educational purposes. ■ They must not engage in business activities which would illegally benefit from federal income tax exemption. ■ No private benefits can inure to private individuals or insiders, including contributors or board members since the organization was established for "public" benefit. ■ They may not lobby for, or support, a specific candidate. ■ No substantial part of their activities may consist of efforts to influence legislation. ■ To qualify as a public charity and not a private foundation,they must meet the "public support test" in their financial support (no more than 33 and 1/3 percent of any year's contributions can be from donors who exceed the equivalent of 2 percent of the past four years' gross revenues). In addition, Section 501(c)(3) organizations must file an annual Form 990 with the Internal Revenue Service reporting total contributions of money,real property, negotiable securities, and other revenues. Organizations may lose their exempt status if they deviate from their"exempt purpose," engage in excessive lobbying activities, support a particular candidate for public office, or operate to provide a private benefit. 541(c)(4) Community Welfare Organizations Section 501(c)(4)classifications include civic leagues and social welfare agencies. Section 501(c)(4)organizations are exempt from federal income tax, but is not eligible to receive tax deductible charitable contributions. In pursuing the social welfare category, downtown managers should take care that the program does not evolve into a development organization. It must not ostensibly operate to promote Legal Issues EXHIBIT/ PAGE 4 benefit to its members,rather than the community as a whole, or be primarily engaged in unrelated business with the general public or commercial activity. 501(c)(6) Business Leagues, Chambers of Commerce,Real Estate Boards Section 501(c)(6) organizations are devoted to improvement of business conditions of one or more lines of business, or in a particular geographic area, and may not be engaged in the performance of particular services for individual members. Programs operating under(c)(6)cannot remain exempt if financial aid (such as low-interest loans or grants) is made available to members, since the Internal Revenue Service would view this situation as committing part of the organization's exempt net earnings to inure benefit to private individuals. Section 501(c)(6) organizations may be subject to unrelated business income tax if they engage on a regular basis in revenue-generating business with the public that is unrelated to the organization's exempt purpose. While 501(c)(3) exempt status is useful in seeking charitable contributions (which is deductible) and in establishing a clearly community-oriented purpose, exemption has limitations as well. Maintaining the public support test(particularly when larger contributions of money or property become possible) and detailed annual reporting requirements may make Section 501(c)(4) or 501(c)(6) status a more attractive option. When choosing its federal tax classification, a new nonprofit downtown management organization's board should consider all the requirements and restrictions for that status. If the downtown management program's goals are primarily geared towards benefiting downtown businesses, a 501(c)(6)is probably the best choice. 501(c)(6) status enables businesses to take a business expense deduction for their membership dues to the organization, while still allowing the organization to conduct an unlimited amount of lobbying on behalf of its members. Many of the same attributes result from classification under 501(c)(4). Moreover, the Internal Revenue Service scrutinizes these groups—both their initial application for a tax classification and their ongoing activities—less closely,making the 501(c)(4) status relatively easy to obtain. The most closely monitored of all the classifications, 501(c)(3) status,tends to be more difficult to obtain in some instances, and may genuinely not be appropriate for all downtown revitalization organization. Nonetheless, 501(c)(3) status remains the preferred choice for most Main Street programs, for several reasons: Legal Issues EXHIBITfz"'pAGE of � s 1. Most foundations make grants available only to public or publicly supported 501(c)(3) organizations. 2. Private individuals can deduct contributions made to 501(c)(3) organizations as charitable contributions from their federal income tax. 3. 501(c)(3) status appropriately reflects the charitable and educational goals of Main Street organizations. A 501(c)(2) organization is basically a holding corporation organized exclusively to hold title to real property, collect income from the property,and turn over the entire income(less expenses) to a 501(c)(3). Some mature downtown management organizations that have acquired property (primarily to prevent demolition or to control development) establish affiliate 501(c)(2) corporations to manage property-related revenues and expenses. State Sales Tax Exemption Most states levy sales tax on retail sales. Most states allow nonprofit corporations to apply for exemption from paying sales taxes. In order for a nonprofit corporation to take advantage of this exemption, it must provide the seller with a tax exemption number. This number is issued by the state. The state department of revenue can also provide information on what types of retail purchases may be made exempt from taxes for nonprofits; it varies from state to state. Some sellers also ask for the organizations federal tax identification number in order to verify the organization's federal tax designation. Many new nonprofit downtown management organizations overlook sales tax exemption. Although the tax savings may not be initially significant, it can be when the organization purchases office equipment or other high-ticket items. Utility Tax Exemption Corporations that qualify for federal and state tax exemption may not have to pay taxes on telephone or other utility bills. Again, contact the state department of revenue for information. Social Security Exemption FICA taxes are paid jointly by employers and employees. Nonprofit organizations are no longer exempts from paying these taxes. Legal Issues EXHIBIT PAGE-, OF - 6 If the downtown management organization hires staff on a contractual, rather than a salaried, basis, the corporation no longer has employees and thus need not contribute to FICA. Independent "contractors" are considered self-employed by the Internal Revenue Service and are personally responsible for meeting federal and state tax requirements. However, the IRS imposes stiff penalties on employers who erroneously classify employees and independent contractors and fail to withhold and pay income and FICA taxes. The nonprofit organization, though, must provide contractors with a Form 1099-MISC if the organization paid them more than$400 during the tax year. Lobbying Many nonprofit corporations are involved in issues that are shaped or affected by local, state, and federal policies. As downtown management programs mature, their interest and ability to be involved in the development of these policies often increases. A common misconception is that 501(c)(3) corporations cannot participate in lobbying activities at all. While it is true that lobbying cannot be a substantial part of the organization's activities or expenses, 501(c)(3) corporations may spend up to 20 percent of their annual expenditures on activities to influence legislation. This does not include supporting a particular candidate for political office. Most downtown management programs will not need to do nearly this much lobbying and should feel comfortable making phone calls and writing letters in support of issues that affect their missions. If, for any reason, it becomes necessary to become intensively involved in lobbying activities, the organization should seek legal advice. Liability The cost and availability of liability insurance has become a major concern for many nonprofit organizations. It is the organization's responsibility to protect itself, its staff, and volunteers from financial distress due to a liability suit. The problem has become so significant that some states, such as Iowa, have enacted legislation that limits the liability of the officers, directors, and staff of nonprofit organizations against liability suits except in cases involving gross negligence. Some of the areas in which downtown management organizations may need to consider protecting themselves from liability suits are personal injury,property damage,hiring and firing employees, defamation of character,using copyrighted music, and theft. Legal Issues 3 -11 A ACFt d EXHIBIT '�PAGE.L2OF� 7 Bibliography Brian, Todd. "Hiring Your Second Manager."Main Street News, September 1989,Number 49 Cook, Johnathon B. "Evaluating the Executive Director." The Nonprofit Times, June 1988, Volume 2 Number 3. Flanagan, Joan. The Successful Volunteer Organization. Chicago: Contemporary Books, Inc., 1981 Hull, Sandra. Partnerships on Main Street,"Main Street News,No. 100, May/June 1994. Hummel, Joan.Starting and Running a Nonprofit Organization. Minneapolis: University of Minnesota Press, 1980 Management Assistance Group, Steering Nonprofits:Advice for Board and Staff, National Trust for Historic Preservation, Information Series No. 54, 1991. Nichols, R. McDuffie. "Choosing A Tax Exempt Status For Your Main Street Program."Main Street News, July 1989, Number 47 Noyes, Pat. "Local Govemments' Role in Downtown Revitalization: Clearing Up Misconceptions,"Main Street News, No. 45, April 1989. Peil, Karen. Personnel Issues for Preservation Nonprofit Organizations,National Trust for Historic Preservation, Information Series No. 79, 1994. Smith, Kennedy. Main Street Board Members Handbook Washington, DC:National Main Street Center,National Trust for Historic Preservation, 1988. Smith, Kennedy. "Director's Column: 501(c)(3)Issues," Main Street News, No. 87, March 1993. Tremper, Charles and Pam Rypkema. Risk Management and Liability Insurance for Nonprofit Preservation Organizations,National Trust for Historic Preservation, Preservation Information Series No. 1995. (Revised 1/15/00 by Andrea Ferster, Attorney at Law) Legal Issues 1 1 i San Luis Obis o Downtown Association _ ^PA 1 1 fi 1 1 r .,1 1 -�1 1 1 � ` 1 � Q 1 � � 14 a h 1 1 1 � San Luis Obispo Downtown 1 Strategic Business Plan A Sustainable Operating Plan 1 For 2007 and Beyond 1 Updated 2007 1 1 Project Consultants: 1 Jeffrey Eichenfield 1 Darlene Drapkin Rios 1 Jeffrey Eichenfield &Associates 1 Deborah Cash, CMSM 1 1 1 1 1 1 DRAFT 1 San Luis Obispo Downtown Association 1 Strategic Business Plan 1 1 1 ~Update 1 1 1 2007 and Beyond 1 1 1 1 1 1 San Luis Obispo Downtown Association 1 October 2, 2007 1 1 1 Project Consultants: 1 1 Jeffrey Eichenfield 1 Darlene Drapkin Rios 1 Jeffrey Eichenfield &Associates 1 Deborah Cash,CMSM 1 Funding: 1 ' City of San Luis Obispo 1 SLO Downtown Association 1 2007 Downtown SLO Strategic Business Plan—Draft C 1 Acknowledgements The project consultants wish to thank the following for their support and guidance in the development of the San Luis Obispo Downtown Association Strategic Business Plan: 1 San Luis Obispo City Council 1 Mayor Dave Romero Vice Mayor Christine_Mulholland Allen K.Settle Paul Brown Andrew Carter 1 San Luis Obispo Downtown Association 1 Economic Activities Committee Board of Directors PTom Copeland,Co-Chair Pam Seeley, President 1 Alex Gough,Co-Chair Ellen Henry Brad Bilsten Patty Carpenter Steve Owens 1 Tom Swem Tom Copeland Doug Shaw Natalie Tartaglia Alex Gough Roy Mueller Doug Shaw Jay Hutchcraft Bob Seeley Bob Schinkel Natalie Tartaglia Ron Meier Brandon Downing,Ex-Officio For more information Carl Dudley, Ex-Officio SLO Downtown Association 7 Roy Mueller, Ex-Officio 1108 Garden Street, Suite 210 San Luis Obispo, CA 93401 Staff Tel (805) 541-0286 Deborah Cash,Administrator,CMSM Katie Hollingsworth,Promotions Coordinator Fax (805)781-2647 ? Diana Cotta,TNP Coordinator sloda@downtownslo.com Brent Vanderhoof,Administrative Assistant Bronwyn Ciccone, Intern www.downtownsio.com 5 Greg White, Intern C Design and Layout by Brent Vonderhoof 2007 Downtown SLO strategic Business Plan—Draft C SLO DOWNTOWN STRATEGIC OPERATING PLAN-A 1 SUSTAINABLE BUSINESS PLAN FOR 2007 AND BEYOND 1 1 Table of Contents 1 1 Introduction and Summary.................. . . ....... . . ..... . ..... . .....1 1 Purpose of the Downtown Strategic Business Plan ..... ..... ...... . . .....4 1 1 Development of the Downtown Strategic Business Plan. ............ . . ...4 1 1 Current Conditions and Key Issues Impacting Downtown .... ............5 Downtown's Competitive Position and Target Markets.... ............. ..9 Strategic Goal . . .................. . . ....... .............. . .............10 Exhibits................... . . .......... ....... . ........ ............ . . . .24 1 ) Qsk _ .�t M � � 1-; 1 1 II II If ' 2007 Downtown SLO Strategic Business Plan—Draft Table of Contents L Introduction and Summary _ Downtown. A recommendation of advocacy/policy statements that report was that the Downtown, as needed (parking,new de- ' in order to retain its competitive velopment projects,etc). edge,develop a Strategic Business + The plan was used as a mar- Plan.The City hired Eichenfield and keting tool given to prospec- Associates and the National Trust tive businesses and develop- for Historic Preservation Main Street ers to show the Association Program to prepare the report. The had a serious program for public process that was used to gen- maintaining Downtown erate community consensus,and the vitality. resulting report document in 2001 + The plan resulted in a high proved to be extremely useful to the level of member satisfaction = - Association and the City. with Association activities. + The plan was used by the 70%of business and prop- Association's committees to erty owners surveyed in 2006 develop their two-year work believed the Association's programs. past marketing and promo- + The plan was used by the tion efforts are adequate and hen the Downtown Asso- City and Association to craft successful. (See Exhibits A ciation's current Strategic and B) Business Plan reached its shelf life of five years in 2006,the Recently,a revised version of the C Fsatisfaction an resulted in a organization realized it was impor- retail project that triggered the tant to update the guiding docu- evel of member original strategic planning process ment to assist in navigating through with A55O- S was approved by County voters, the waters of change looming on the necessitating renewed action on the horizon. The City Council concurred, activities. 70% part of the Association to position agreeing to fund a major portion of Of business and proper- itself for competition and a change in the update. the retail marketplace. And changes ty owners surveyed in in a number of other factors affect- It is helpful to revisit why the Strate- 2006 believed the Asso- ing Downtown have occurred since gic Business Plan was developed in the previous plan was developed, the first place. In the late 1990's,a ciation s past marketing including an earthquake in 2003 that major retail project proposed for the and promotion efforts resulted in expedited seismic retrofit periphery of San Luis Obispo trig- compliance deadlines for older and gered the City's General Plan require- are adequate and historic Downtown buildings;the ment to provide a report addressing successful. September 11 Terrorist Attacks that the project's economic impact on produced a decline in travel r r r Introduction and Summary 2007 Downtown SLO Strategic Business Plan—Draft 1 1 d that include mixed-use elements, particularly housing. Small niche and 1 boutique retailers continue to flour- L7 . _ f ish in our college/tourist Mecca. The 1 - City continues to focus on infrastruc- ture improvements and has added a l ' V t'. • t • •J new parking structure with plans for 1 �rfrr f `"`•�'ae Kf another. 1 While the Four-Point Main Street / -2 Approach (promotions,design, organization and economic restruc- turing)will still be the"bones"of our 1 revitalization program,our mature program will need to look at more 1 sophisticated versions of those 1 techniques to meet the challenges 1 revenues(essential to a tourism Americans are currently seeking. and capitalize on the many oppor- 1 heavy area such as SLO)and for a Urban downtown residential popula- tunities presented to us. Economic 1 time weakened the stock market tions increased 10 percent during the restructuring will mean encouraging and local sales tax revenues.Further, 1990s after 20 years of decline,and property owners to provide housing 1 a decade of rising housing costs of the 2,500 original enclosed shop- has forced young and low income ping malls,only 1,130 are left and families to the outskirts of the county half of those will ultimately close as 1 as older and wealthier new residents we112. 1 move in. Moreover,Downtown con- _ tinues to experience growth (both in Locally,the SLO region has posi- 1 terms of higher density development tive attributes that bode well for 1 and greater number of customers) the continued health and growth of 1 that impacts cleanliness and safety the Downtown business district:a 1 and increases demands for a wide well-educated work force,a strategic variety of City services. location with easy access to major ; 1 metropolitan centers,two commu- 1 But the good news is downtowns still nity colleges and a major university, 1 have many advantages over other a strong tourism market,the Mis- built shopping environments.There sion and creek walk and an excellent 1 is an unprecedented trend across quality of life. The expedited seismic ' our country where people—tired retrofitting has pushed many prop- of commuting,suburbs and discon- erty owners to rehabilitate older, - nectedness—are returning to down- historic structures like the Warden town commercial districts not only and J.P.Andrews buildings;inves- t to work,but also to live,continually tors have grabbed up properties as ' cultivating the"sense of place"many fast as they could for major projects ' 2 Brookings Institution, Who Lives Downtown,Eugenie L Birch,2005. 2 Shifting Shopping,Anderson Real Estate.com,March 2004. ' 2007 Downtown SLO Strategic Business Plan—Draft Introduction and Summary C C that meeting Downtown's needs is + A new private security patrol ' becoming increasingly complex and has been hired. demanding and neither the Associa- + The City adopted a new anti- C tion (as presently funded)or the City panhandling ordinance. (given General Fund limitations)can + We identified the process be counted on to meet those needs needed to modify the current in the long-term.(See Exhibit F) Business Improvement Area (BID) revenues,boundaries �s== There is definitely much work that and management structure if needs to be done and this plan so desired. + _ a outlines strategies for continuing + We garnered support for to keep the central business district and adopted changes to the of San Luis Obispo vibrant,attrac- rules,regulations and fees tive and unique as we move forward forThursday Night Promo- toward 2012 and beyond. tions that are designed to improve operations,increase Ad Some of the most exciting strategies amenities and better enable in the 2007 Strategic Business Plan revenues to cover costs.(See include: Exhibit Q. and work-live units and to keep rents + Advocating for additional + We developed a compre- affordable for retail,restaurant and C parking including construc- hensive Downtown property office space. Design will now seek C to attain a higher level of cleanliness, tion of the Palm/Nipomo database. safety and historical preservation. parking structure. + Working with the City's This is indeed a good time for down- Promotions will advance far beyond lead- sidewalk sales and window contests Promotional Coordinating towns,particularly when their lead- si sidcultivate concepts like heritage Committee to implement the ers plan for the challenges presented C tourism and branded marketing City's Tourism Marketing Plan by evolving and vibrant downtowns. 2007. campaigns. + Improving sidewalk and ` Our organizational management street lighting. + Allocating additional resourc- , will be evaluated to determine if the current operating structure,that of es toward caring for Down- � an unincorporated advisory body town street trees. to the City,is effective and, more + Establishing a disaster re- importantly,if the organization is sponse and recovery plan. + Increasing Downtown As- securely funded for the long term. Events over the past two years have sociation revenues. independent a more indep illuminated the need for the Associa- + Forming tion to more clearly define how it Downtown Association. ;: ! r� may operate independently and to relinquish some of its dependence Indeed,the planning update pro- 1 cess has already produced positive - on the City.The City has recognized t results: r Introduction and Summary 2007 Downtown SLO Strategic Business Plan—Draft 1 Purpose of the San Luis Obispo Downtown Association Strategic Business Plan (Strategic Business Plan) ' According to its mission state- study to determine what method of ment,the SLO Downtown ;°_ > ' organizational structure and long Association is a"partnership of _� term funding mechanism would be members working for the economic, ", - most likely to address typical issues ' social,cultural and environmental f that arise for veteran programs and vitality of Downtown" As part of the also empower the Downtown As- effort to maintain a healthy Down- ,-. sociation to become more effective town,the Downtown Association (see Exhibits E and F). i ' and the City of San Luis Obispo have developed the Downtown Asso- The SLO City Council is scheduled ciation Strategic Business Plan. The to accept the Downtown Strategic Strategic Business Plan is an econom- Developing the Business Plan in the fall of 2007. Its ' is development tool that documents implementation will be the responsi- Downtown's competitive position in Strategic Business Plan bility of the SLO Downtown Associa- the marketplace,identifies short and tion.The Downtown Association will ' long-term strategies to maintain andhis Strategic Business Plan up- use the Plan to develop its two-year ' strengthen the vitality of Downtown date is a result of collaboration workplans. and the Downtown Association,and between consultants Jeffrey sets benchmarks for monitoring the Eichenfield and Darlene Drapkin Rios City leaders are excited about the ' ongoing health of the Downtown. of Eichenfield and Associates;and ongoing level of commitment to the ' The plan is designed to do this while Deborah Cash,CMSM,Administrator, Downtown business district. This achieving the community's overall SLO Downtown Association.Major commitment has been solidified vision for Downtown and preserv- funding for this endeavor was pro- through the work with the commu- 1 ing the unique quality of life that is vided by the City of San Luis Obispo. nity on this project—one that is so ' enjoyed by SLO residents. significant to us all. The consultants,over atwo-year The Strategic Business Plan is meant period,with the assistance of interns - ' to be a companion document to the. Bronwyn Ciccone and Greg White, re- City's Conceptual Physical Plan for the viewed background information sup- s City's Center and the City's Access and plied by the Downtown Association, ' Parking Management Plan. As such, it conducted focus group interviews,as ' concentrates most on business/eco- well as business and property owner nomic issues and not physical design surveys(see Exhibits A and B)and or transportation strategies. held a public Town Hall Meeting(see i Exhibit D),and performed in-depth research both on topics relating to the existing plan and on a feasibility Q 2007 Downtown SLO Strategic Business Plan—Draft Purpose and Development C 1 Current Conditions and Key Issues 1 Impacting Downtown Economic Growth in the (especially Big Box stores,apparel stores, restaurants and specialty City and County retail lifestyle stores)would have on , ne of the biggest issues fac- Downtown. ing Downtown is how it can Ocontinue to prosper in a re- Another growing source of competi- . gion where population and tourism tion is the presence of online retail- growth has been slow but retail com- ing. Internet retail sales in the U.S. ' ' C petition is increasing. The answer:be are expected to reach $116 billion in ; very smart and very proactive about 2007-5%of all retail sales and this — positioning Downtown as the vibrant is expected to grow to 7%by the center of SLO County. end of the decade.Online sales of books,apparel,pet supplies,music - — SLO's 2007 population is approxi- and videos—traditional downtown mately 44,239,down 0.2%from niches—have grown tremendously 2006.The County's current growth in recent yea r54. rate is just 0.96%3.Yet new Big Box estimated at less than I%.Down- and specialty retail projects continue Tourism growth has also been slow town sales tax revenues have grown to be proposed for the edges of the in recent years.The City's Transient an average of 4%per year since region,in SLO and in retail districts in Occupancy Tax(TOT) revenues had 2000.There has been approximately Paso Robles and Arroyo Grande.The been increasing 10%per year until 260,000 square feet of new construc- SLO Downtown Association remains 2000.Their growth dropped to less tion Downtown since 2000,including concerned about the competitive than 3%per year after the Septem- the Court Street mixed use project, impact that these retail development ber 11,2001 terrorist attacks.Fewer the new County Government Center, business travelers due to technolo i the new Children's Museum,Coast ,i g National Bank,the Manse on Marsh cal advances(email,video conferenc- ing,cellular phones)and increased addition and a parking/office devel- .� opment at 919 Palm. The proposed . `i competition from Santa Barbara and Monterey/Carmel for leisure travelers Chinatown mixed use project is now also contributed to slow TOT growths scoped at more than 200,000 square and for a time had a negative impact feet and will include retail,housing on the Downtown economy. and a hotel. The good news is that Downtown While overall population growth is SLO is growing despite these trends. slow,wealthier,older couples and There are approximately 650 busi- individuals are migrating to SLO nesses in the Downtown,up from Countybfor the pleasant climate and , `` 550 in 2001.The vacancy rate is low, attractive surroundings,as well as i r 3 City of SLO Community Development Department,May 2007. 4 Online Sales Lose Steam, New York Times,June 17,2007. Fj s City of SLO Monthly TOT Report,March 2007. 62007 San Luis Obispo County Economic Outlook,UCSB,p.6. l Current Conditions and Key Issues 2007 Downtown SLO Strategic Business Plan—Draft r its strategic location between two key metropolitan areas.Technology trends allow working professionals to _ be more selective in choosing where they live and work and SLO has the _ potential to develop into a vibrant upscale community as a result'. TOT revenues increased 11%from 1 2005 to 2006,and 5.1%from March 1 2006 to March 2007,signs of im- pending recovery in a sector that is very important to the Downtowns. 1 1 Online sales growth is expected to slow to 9%per year by the end of ` 1 the decade from as much as 25% Bottom line: An influx of higher in- tion if they report problem behaviors 1 per year in 2004. Retailers nation- come residents and renewed spend- and civil disobediences that occur in 1 wide have livened up their stores ing by tourists is seen as the source front of their stores.This is harmful 1 to be more alluring while provid- for much of the economic growth to Downtown's ambiance and small ing personal customer service that that is occurring in the County—a town character,and a high priority 1 impersonal web sites cannot match9. trend that is having a positive impact action item for the Association.As 1 Downtown retailers can indeed com- on Downtown SLO's specialty retail new developments like the Down- pete in an online world. and restaurant sector. But Down- town Centre and Court Street hire 1 town needs to stay very competitive their own security and maintenance 10 and aggressive for this spending and services,the rest of Downtown must watch out for the competition in the maintain a similar level of service county,elsewhere in the City and in order to remain competitive and 1 Grv��E°Sf%ARF, ' online. ensure a consistent level of care a TKe;. s�enr a rra. throughout the Downtown. Cleanliness and Security ro: . 1 The City provides a high level of Changing Use of 1 maintenance and police services(see Downtown Exhibit G).As was the case in 2000, At the time the 2001 Strategic Busi- 1 IT'S OK TO SAY"NO"TO PANHANDLERS. however,dirty sidewalks,problem g Bur SAY"YES" ness Plan was adopted,the com- 1 TO GIVING TO SAN LUIS HOMELESS behaviors and inadequate lighting munity saw Downtown as mostly a 1 SERVICES. were a primary concern of people specialty retail,dining and cultural Put your change where you can make one. interviewed for this Plan.More district. Today,more office,residen- t than 50%of business and property805 5"-4355 tial and hotel uses are desired and 1 owners surveyed believe some or" '' proposed—bringing opportunities great improvements are needed. Merchants expressed fears of retalia- for businesses to serve those markets 1 as well. 1 1 1 1 1 8 Market Study for Proposed Garden Street Hotel,Holt Advisory Group,December 2005,PA. 9CityofSLOMonthlyTOTReport,March 2007. 1 9 Online Sales Lose Steam,New York Times,June 17,2007. d 1 ' 2007 Downtown SLO Strategic Business Plan—Draft Current Conditions � g and Key Issues 1 C leisure visitors and,to a lesser extent, Organizational Changes destination leisure travelers.Only a few hotels have meeting space to and Funding Demands ILrr ? 12 he-SLO Downtown Associa- - capture group meetings .Devel- - opers have said there is sufficient 11 tion,a National and California market demand for new hotel prop- U Main Street program,promotes _ �0 -� ' Downtown business.The Association ,� erties Downtown,especially those ' _ - was formed by y in 1975 to advise and the Cit as a Council that cater to younger visitors seeking advisor body a more contemporary and upscale experience'3.There are two hotel recommend to the Council the meth- projects presently under consider- ods and ways in which the revenues ation--Chinatown and the.Garden derived from the Business Improve- ment Area (BID)should be used. The Street Terraces. BID,established by City ordinance, a In 2000 there was fear that the is an assessment in addition to each increasing number of national chain merchant's business tax.In 2007 it stores Downtown would erode raised $155,000 per year.The Asso- ` ciation serves as an advisor body to Downtown's unique small town y y character. This has not proved to be the City Council and works closely As stated in the General Plan Land the case and there is now a broad with many City departments.The Use Element,"Downtown residential acceptance of national chain stores' City provides the Association with uses contribute to the character ti presence.Their longer store hours, ongoing full-service support from sophisticated marketing practices Human Resources,Finance(payroll, the area,allow a 24-hour presence accounts payable, revenue manage- which enhances security,and help and attention to store maintenance p y g and design have been a model to ment,collections,investments,gen- the balance between jobs and hous- eral ledger and financial reporting), :' Over the independent store operators. g p 9)1 ing in the community 10 past two decades,however,there has - been a slow decline in the number of / \ — Downtown housing units. The City's Housing Element,updated in 2004, - y includes a new policy that requires all new Downtown development ) a a to include housing''.The City has considered increasing downtown building height and intensity limits - - in order to encourage the economic - = viability of housing construction. SLO's 28 hotels,with a total of 1,870 - - _-- rooms,fall largely into economy and = _ mid-market categories.These hotels cater mostly to overnight"pass-thru" IOSLO General Plan Land Use Element,Policy 4.2.1. 11 Housing Element Policy 3.11.2 9 1 Garden Street Terraces,Holt Advisory Group,Spring 2007,p.1. 73 Market Study for Proposed Garden Street Hotel,Holt Advisory Group,December 2005,p. 11. ( Current Conditions and Key Issues 2007 Downtown SLO Strategic Business Plan—Draft funding and more reliable funding sources.The Association's.estimated annual budget in 2007 was$469,000. ° Other downtown management pro- grams that the Association considers to be models operate with budgets �_' , 0. m — J - - of nearly$700,000. • o The Association enjoys many ben- 0 efits of its relationship to the City. It „ - must also,as a result,strictly comply 1 - with the City's personnel,purchasing, a " contracting and lobbying require- _ ments.This can be costly and time -- consuming. It may also frustrate As- established as independent non - sociation members who want the As- profit organizations working under sociation to take a public position on contracts with their local govern- City policy matters—something that ments,have more flexibility around is difficult for a City Council Advisory these types of requirements.Going Attorney and Administration.The Body to do.The Downtown Associa- forward,the Downtown Association Association's Administrator currently tion is subject to State prohibition and the City will analyze the costs works under contract with the City. and benefits of the Association's Thirty two years after its formation, against using public resources on ballot measures and other political organizational structure to ensure it however,the current BID structure is campaigns that apply to all City enti- is operating the most effectively for strained in its ability to serve Down- ties.Other downtown associations, all Downtown stakeholders. town in the future.Thirty percent of businesses pay the minimum fee of r - only$25 per year and 50 percent pay less than $100 per year.There is no 'l automatic cost of living adjustment in the minimum fee. Auditing BID payments and collecting delinquent payments is time consuming and costly.BID revenues have not kept m,, •' a, a6 pace with the rising costs of provid- ing services and this puts increased 0 _ pressure on the Association to hold ® ' EJ y + i time-consuming fundraisers and - ° special events that must raise an ad- ditional $300,000 per year(in 2007). o �_ The Association,in order to continue _ _ - -------- to to provide the level of service and _ projects proposed must have more d Current Conditions 2007 Downtown SLO Strategic Business Plan—Draft and Key Issues Downtown's Competitive Market Position and `target Markets + A mix of creative indepen- historic buildings,views, pedestrian < dent and national specialty experience,residential uses, parking, stores retail and bicycle transportation (see ip + Theaters,galleries,restau- Exhibit H). rants and other entertain- While Downtown is the gathering - ment uses place for the entire community, + Preserved historic resources Downtown's primary target market + Protected natural resources, customers are: 4 A i landscapes and view cor- + Sophisticated middle and ridors upper-middle income shop- + Public art and a pedestrian pers looking for a unique friendly streetscape that cre- shopping,social and cultural ates a gathering place for the experience. These include: entire community N Local residents(65%) + Local and regional cultural 38 Tourists and Visiting institutions Cal Poly parents(35%) While the Downtown is an + A central core of City and + College students seeking asset and amenity to all County government offices trendy fashion and entertain- members of the commu- + Residences that create a 24/7 ment options and socializing nity,the vast array of other retail op- presence opportunities. tions means that from an economic + Downtown office workers viewpoint it cannot be all things to This position is supported by policies and their customers seeking all people. contained in the City's General Plan moderately priced lunches pertaining to cultural and entertain- and general merchandise for The Downtown's competitive market ment facilities,government facilities, running errands. position statement remains virtually the same as it was when it was devel- oped for the 2001 Strategic Business Plan: Downtown is the social,cultural, - civic,specialty retail and entertain- ment center of SLO County. It is a vibrant,pedestrian-oriented district that offers locals and visitors smalls i town ambiance and a unique shop- ping experience not found in other p commercial centers in the region. It w> r features: 0 Market Position and Target Markets 2007 Downtown SLO Strategic Business Plan—Draft Strategic Goals ' Strategic Goal 1 successful community event Maintain Downtown as the so- that also draws large crowds ~ from around the world. In cial center of the.community. 2007 the Association,ll I imple- owntown heart an is the hd _mented new rules, regula soul of the community. Even tions and fees designed to Dif residents aren't doing improve operations,increase s the bulk of their everyday shop- participation capacity, ping there,they continue to use improve entertainment,add Downtown as the place to meet electrical access,provide a friends,relax with family and gather new dining area and increase as a community.Organizing social profitability(see Exhibit Q. activities for the community at-large Monthly promotional themes 111he Downtown Association familiarizes them with Downtown will continue. has set the following Strategic businesses and builds a strong + Continue Halloween Ac- Goals for 2007-2012: constituent group that can help the tivities.The trick or treating, 1. Maintain Downtown as the Association advocate for Downtown pumpkins on parade,and social center of the improvements.Major strategies for costume contest are ex- community 2007-2012 to maintain Downtown as tremely popular with local 2. Maintain a diverse mix of the social center of the community children. uses are detailed below. + Continue December Holi- 3. Maintain retail health day Events.The month-long 4. Encourage hotel,housing 1.1 Organize special events holiday events solidify Down- and live-work developments and festivals appealing to the town as a community gather- in Downtown entire community. 5. Retain and expand on the acirc Gas and ' unique.pedestrian character + Continue Concerts in the Pla- ectric Comp ' za. The concerts in Mission and small town ambiance Plaza have been very suc- ibto(a^yon PZ--e 6. Maintain an effective Down- U.. cessful at increasing Friday ' town Association night business and attracting ' 7. Establish a disaster response thousands of people and and recovery plan for the are one of the Association's Downtown Association largest fundraisers.The event �. Strategies to achieve these goals, was expanded to a total of 12weeks in 2007. and the people/committees that are + Continue Thursday Night + responsible for implementing them, Promotions(TNP),also gen- i "f ' are detailed in the remainder of this erally referred to as"Farm- ' Plan. ers'Market"TNP is a hugely f ' 2007 Downtown SLO Strategic Business Plan—Draft Strategic Goals Strategic Goal 2 Maintain a diverse mix `� - NI, _ of uses. C � •��.�'' �' '� , big part of why locals love _ Downtown is the mix of uses r .. that gives them multiple rea- sons to be Downtown—to socialize, to enjoy cultural activities and enter- , - _ tainment,to do community business and to shop.The Association will support activities and developments that protect and contribute to this unique mix.Major strategies for 2007-2012 to maintain a diverse mix ing space and the place to 1.2 Support other orga- of uses are detailed below. do holiday shopping.Santa's nizations'use of Downtown House, Holiday Parade, Holi- for events. The Association does 2.1 Support the unique mix dayTree and Carousel in Mis- not have the resources to organize Sion Plaza, Holiday Window 9 of independent and national � Decorating Contest and Free every desired Downtown event. Our retailers. National retailers have Children's Movie/Canned economic development efforts can historically anchored downtown Food Drive will continue. be greatly assisted when other orga- districts. Their drawing power gives + Continue annual Easter Egg nizations host events that showcase added exposure to the unique Hunt in conjunction with SLO Downtown in a positive light. These independent businesses that give L Parks and Recreation. include the following: + Art After Dark + Develop clear goal state- ments for each event. De- + Central Coast Book and mand for Downtown events Author Fair is high so it is important that + Central Coast Cycling Classic I C the Association have clear r reasons for continuing or + Central Coast Wine Festival d + Children's Day in the Plaza dropping existing events and + City to Sea Mini Marathon < for starting or not starting + Day with Creative Women ` new ones. Each event should + Earth Day have a written purpose state- + I Madonnari ment, measurable goals and �+ o + International Film Festival objectives and defined target market(s)that meet the goals + Jack House-Special Events 4 t + Mozart Festival of the Strategic Business o + Plein Air Festival Plan. + Pride in the Plaza + Tour of California Strategic Goals 2007 Downtown SLO Strategic Business Plan—Draft 1 Arts Center and the Mission and opportunities. The Association creek walk is an important sub- will continue to support infill devel- district of Downtown.It is poised opments that contribute to a dense, ' to become an even stronger cohesive Downtown core. anchor and regional attraction + Encourage better use of vacant ` with the planned expansion of or underutilized properties(park- ' the Arts Center and location of ing lots,buildings,etc.). Existing CZ . a new children's museum.The surface parking should be put to Association will continue to co- better and higher use,i.e.plazas, ordinate its activities with these commercial development,etc. ' cultural groups and advocate for Lost surface parking lots should Downtown its character. Residents increased expansion and promo- be replaced with consolidated tion of the district.It will also parking structures. and merchants alike appreciate the a construction of the + Su 16 encourage mix we have and the Association will g Support General Plan policies continue to support developments Palm-Nipoma parking garage to and proposed zoning changes that encourage a balance. support growth of the district. to increase allowable height and + Include art in Association pro- intensity limits to encourage motions.Continue Art After Dark residential construction. ' 2.2 Maintain government promotion.Develop unique sig- + Refer businesses to City Eco- office presence.Government of- nage/banners,kiosks and maps. nomic Development staff for fice workers(and the people who do 2.4 Encourage additional assistance in navigating through ' business with them)are a significant development and commercial City permit processes. ' part of weekday customer base for Downtown restaurants and stores. The Association will actively sup- port the City's General Plan policies for keeping City and County work- t ers Downtown 14 and support the continued presence of the U.S.Post KK^ - ' Office in the Downtown. 2.3 Support cultural and en- = ' tertainment facilities.Museums, galleries,theaters and nightclubs add to a vibrant Downtown and .,?, a; draw customers to nearby stores -a ' and restaurants.The Association will ' encourage projects that support the City's General Plan policies for locat- ing these uses Downtown15. + Support development of Cultural ' Arts District.The area including ' the Creamery,the museums,the ' 14 SLO General Plan Land Use Element,Policies 4.17 and 5. 15 SLO General Plan Land Use Element,Policy 4.3 ' 16 SLO General Plan Land Use Element,Policy f 1 2007 Downtown SLO Strategic Business Plan—Draft Strategic Goals Strategic Goal 3 merchants alike want additional and Maintain retail health improved parking that will make ` shopping more convenient.The i= owntowns unique setting Association will continue to make.im- and small town ambiance are the°packaging"that attracts proved parking one of its major goals _ customers.It is the economic health and work on the following activities: ,_ + Advocate for additional parking of the retailers,however,that keeps Downtown including construc- customers coming Downtown and tion of the Palm/Nipomo parking generates the revenues that main- tain Downtown as an amenity for structure in the growing Arts the entire community.Ensuring that District area. Downtown businesses are economi- + Work with the City to place way cally healthy is an important role for finding signs and evaluate pay- 3.2 Promote Downtown the Downtown Association.Major on-foot machines.+ Work with the City to study shopping and services to ' strategies for 2007-2012 to maintain and implement a Downtown primary target markets. The retail health are detailed below. Residential Parking District to Association will continue to organize mitigate the impact of traffic on promotions to help retail and service 3.1 Work with the City to surrounding residential areas. businesses generate higher sales and take action on parking issues. + Provide information on alterna- profits.Clear purpose statements, Free and easy parking is a competi- tive forms of access to Down- goals,objectives and target markets tive advantage that shopping centers town. will be developed for each promo- have over Downtown.Residents and + Consider implementing Parking tion or event. Success will be evalu- Demand Reduction measures ated based on those factors. - and employee parking incen- + Communicate a message of ^ l tives. distinction. In all its promotions, + Promote the City's Racks with Downtown businesses should Plaques bicycle rack donation continue to differentiate Down- program. town from other shopping areas. �. + Promote bicycle parking services Downtown often cannot com- ��® (valet parking)at Thursday Night pete on price or selection. But it t �- can communicate an attitude of Promotions through SLO County � Bicycle Coalition. unparalleled shopping,excellent + Continue trolley service to other customer service and a unique areas of town as needed. shopping ambiance. ' f r + Distribute the City's Parking + Publish Around Downtown in . A Guide brochure. conjunction with SLO Journal + Collect and distribute"where to Plus Magazine. Around Down -� park the easiest"tips. town,launched in December + Promote parking demand reduc- 2000,encourages residents to tion measures such as the SLO shop Downtown by showcasing Transit Gold Pass for Downtown businesses,events and other ' J employees. Downtown offerings.It is an Strategic Goals 2007 Downtown SLO Strategic Business Plan—Draft ' insert in SLO County Journal Plus organizations like the Downtown pi , magazine.Meeting the needs Association.It defines the City's pri- of advertisers and shoppers is mary target visitor as a sophisticated, ' critical to its success. The As- well-educated travel minded couple, sociation will regularly evaluate 50+years old,looking for a trip that its effectiveness and periodically will afford them the opportunity survey readers for their opinions to experience a variety of activities ' and ideas. and feel refreshed upon completion ° + Promote the City's"Shop SLO of their visit'. About half of these r '` Keep it Local"campaign. visitors consider SLO their primary destination.The others are passing 3.3 Advocate on merchants' through along Highway 1 on their j behalf during construction, way to other destinations.Visits to ., SLO are fairly consistent throughout ' improvement and seismic the year. variety of cafes and restaurants, retrofit projects. The Downtown + Work with the City's Promotional and more attractive facades)in Association will continue to work Coordinating Committee to order to draw more overnight ' with the City to design promotional implement the City's Tourism visitors18. ' activities to minimize and mitigate Marketing Plan 2003. + disruption to businesses during + Promote Heritage Tourism. The 3.5 Strengthen the Internet these projects. popularity of Downtown as a presence of Downtown. The tourist destination is due,in part Downtown Association web site 3A Strengthen tourism to is historic character.Historic receives more than 2,500"hits"per ' attraction. As a result of recent de- architecture,the Mission,the month. Internet use grows every day clines in tourism,the City developed Chinatown Historic District and and the Association will continue to the Tourism Marketing Plan 2003 to Downtown's designation as of maintain a useful web site geared to ' increase TOT revenues by improving the National Trust for Historic merchants,shoppers and visitors and ` the City's brand image,encourag- Preservation's Distinctive Des- provide Downtown merchants with ing longer stays and developing tinations in America should be information and opportunities to strategic alliances with destination prominently featured in all pro- facilitate their use of the Internet. ' motional materials. + Maps and signage.Given that 3.6 Provide information ! `? most visitors arrive by car,ensure that Downtown amenities, about technical assistance. ' — r events and attractions are clearly The business environment is Chang- promoted through high qual- ing rapidly and ongoing education is ity visitor maps and directional essential for the health of any busi- ' '� y signage. ness. Merchants are often reluctant, }< cY + Encourage improvements to however,to leave their stores for Downtown amenities.Down- training programs,especially if they y are not convinced those programs o" town may need to enhance P 9 ' visitor amenities(landscaping, will meet their needs. streetscape,parking,wider + Work with Cuesta College Small ' 17 City of San Luis Obispo Tourism Marketing Plan 2003,p.1. ' 18 Market Study for Proposed Garden Street Hotel,Holt Advisory Group,December 2005,p.45. ' 2007 Downtown SLO Strategic Business Plan—Draft Strategic Goals 3.9 Promote business-to- i r business sales. An often-over- C looked way to easily increase sales < is to increase the number of sales Downtown businesses make to each other. + Continue to offer a business-to- business advertising flyers in the Association newsletter. + Promote via stories in the Asso- ciation newsletter. '• 3.10 Discourage specialty retail uses in developments outside of Downtown. Specialty retail and"Main Street"ambiance is the unique niche that differentiates Business Development Center, Downtown from other shopping P 3.8 Continue Outreach to areas in the community. The As- the Institute for Professional jurors through the Juror In- sociation supports the General Plan Development and the Private Land Use Element policy Industry Council to identify train- centive Discount Dining Pro- p cy that states Ind resources for businesses. gram. The Association staff will Most specialty retail stores should continue to work with the County be downtown, in the Madonna Road + Offer a small business resource area,or in the Los Osos Valley Road library. Court System to distribute the Juror + Provide information one-on-one Discount dining brochure featuring area,and in other community shop- ping areas identified by the Com- ' to businesses as needed and Downtown restaurants. munity Commercial district where identified. they will not detract from the role of w t• = W the downtown as the City's primary 3.7 Promote the fact that concentration of specialty stores; Downtown is open later on some may also be in neighborhood ` �'_ { shopping centers so Ion as the are weeknights and on Sundays. ��,;:i5 . �^��a x PP' 9 9 y Downtown's national retailers are ;J a minor part of the centers and serve open on Sunday and later on week- " �._: neighborhood rather than citywide nights,and more and more of their 9 �''' ?= ional markets t9"The Associa- ;. �T— or re independent neighbors are doing so - – tion will also support the General as well.Sunday business is now as - Plan policy that requires an econom- busy as Saturday and half of business is impact study before expansion of sales occur in the evenings.This is a =' Madonna Road retail uses are ap- huge shift from 2000 and should be 'y: proved 20. promoted to customers who may not realize the change has occurred. 19 SLO General Plan Land Use Element,Policy 3.1.5. 9 20 SLO General Plan Land Use Element,Policy 3.1.3. C Strategic Goals 2007 Downtown SLO Strategic Business Plan—Draft 1 construction. r�t h?aA 4.2 Balance housing with commercial uses.The Associa- tion will advocate that new housing ` does not displace existing commer- cial uses and that new housing be built only as part of new commercial }•• �� j developments. 4.3 Identify locations that are best for residents. The retain and expand on Downtown's ' Association will advocate that new unique character and ambiance are ' housing be built in such a way that detailed below. noise and parking problems are mini- mized and access to daily services are 5.1 Maintain high level of Strategic Goal 4 maximized. cleanliness&maintenance.The ' Encourage housing and hotel City provides daily street and gutter ' developments Downtown. 4.4 Support improvements sweeping,daily trash pick up,weekly ®ohich wntown residential uses that will appeal to Overnight cleaning of BBQ sites,monthly steam rovide a 24-hour presence visitors and hotel developers. cleaning of Downtown sidewalks enhances security, Enhance visitor amenities such as and trash containers,tree trimming, ' provides a built-in customer base, landscaping,streetscape, parking, graffiti cleanup,and general clean offers reduced commute time for cafes and restaurants and attractive up and maintenance as needed (see Downtown residents who also work facades. Exhibit G). Business and property ' Downtown and helps the balance owners are responsible for keeping between jobs and housing in the Strategic Goal 5 the area in front of their buildings rate community.Developers have said g litter free. ' there is sufficient market demand Retain and expand on the ' for new Downtown housing and unique pedestrian character hotel properties. Major strategies and small town ambiance. for 2007-2012 to encourage housing owntown's major strength `' and hotel developments are detailedis its unique character and below. Dambiance,major components f which are its pedestrian scale,his- 4.1 Support higher density toric buildings,Mission Plaza/creek ' projects as appropriate. The walk,trees and landscaping.The ' Association will monitor and sup- Association will work inclose concert - - - port General Plan policies21 and with the City of SLO and other orga- proposed zoning changes to increase nizations to protect and enhance this allowable height and intensity limits environment for locals and visitors. 1 to encourage residential and hotel Major strategies for 2007-2012 to ' 21 SLO General Plan Land Use Element,Policy## 2007 Downtown SLO Strategic Business Plan—Draft Strategic Goals + Improve sidewalk cleanliness and maintenance.The Association and the Public Works Depart- ment will meet regularly to plan sidewalk scrubbing and sidewalk repair and replacement. : ;{ ����e. ►+ `�1 + Give input into new standards for Mission style sidewalks. Repair - k G l D.4• and installation of Mission style sidewalks is in the City's plans for use of Measure Y sales tax funds. handling/bench sitting, public alco- 5.3 Advocate for continued 5.2 Ensure safety and secu- hol consumption and other problem implementation of General rity.Compared to many other urban behaviors.A few dozen calls to police plan and Physical Plan de- settings, Downtown is a very safe were made and a number of arrests area.The City provides a large variety resulted.One patrol assisted with a sign policies appropriate. of police services including three heart attack situation. The City's Conceptual Physical Plan police officers and one sergeant who + Continue private security patrol. for the City's Center is a long-range Funding for the patrol will be design vision for the Downtown and patrol on bicycle,a satellite office, a guide for both public and private nighttime patrols,enhanced support allocated from the Association's for special events,graffiti reporting operating budget in FY 2007. investment.It is intended to work and investigation,and homeless en- + Collaborate with City staff on in harmony with other plans and forcement and outreach.Neverthe- transient issues.Meet regularly documents,particularly the General less,residents and shoppers continue to discuss pending issues and Plan which contains policies related to express concerns about street possible actions. to historic buildings,views and the people,panhandlers,unruly youths + Monitor success of new ordi- pedestrian experience.The Down- and poor lighting.In August 2006 the nance regarding panhandling town Association will continue to Association hired a private security and public bench usage. use these plans to guide its physical detail,funded by local sponsors. + Support the Prado Day Center. planning and urban design efforts. Between August 2006 and January Continue Downtown Association 2007 more than 100"contacts"were presence on the Center's board 5.4 Support placement ' made with persons involved in pan- of directors. of public art throughout the + Improve sidewalk and street Downtown. Demonstrating the _ lighting.In February 2006 the City's dedication to art in public City adopted the Downtown places,20 pieces of public art valued Lighting Plan. Improved lighting at $250,000 is in place around Down- - 4 is in the City's plans for use of town.The Association will continue Measure sales tax funds. its active participation in managing + Distribute"What to do if you Downtown public art programs. see..:"cards and emails as a + Consider developing a new com- handy reference for merchants. memorative art project.The com- 7771 memorative bench program is Strategic Goals 2007 Downtown SLO Strategic Business Plan—Draft ( now completed.The Association town Association recognizes that will evaluate whether a replace- historic resources add to the special ment commemorative project, character that makes Downtown so possibly for streetlamps,should attractive to shoppers,visitors and be undertaken. investors and will work to protect.his- ;o �iin�'c ° a # + Oversee banner programs. toric character. a," ` H�� _ ------- Continue .___ _Continue to oversee the hanging + Support the Cultural Heritage of flag type banners as per City Commission's(CHC)efforts to up- r R� resolution. date City preservation codes and + Continue to encourage quality processes.The Association will ' Ii public art in new developments. provide input as appropriate. _F = By City ordinance,private devel- + Support CHC's efforts to update _ _ _ w r opers must provide public art as historic inventories. Most of part of projects. the City's inventories of his- ) + Distribute the SLO County Arts toric structures were done in the _ Council's guide to galleries and 1980s. Encourage the City,as ap- public art in the Downtown. propriate,to update inventories able trees are aging and in some. of Downtown property. cases are unhealthy or dangerous. 5.5 Protect Downtown's + The Association will support With trees needing to be removed historic resources. SLO has a rich General Plan policies that pro- and with some tree wells remain- cultural incorporate or mitigate the ing empty for long periods of time, cultural heritage and an informed impacts of new development on the City has determined it is time to citizenry who value and protect that historic resources move forward with tree replacement heritage.Special interest focused + Promote seismic retrofitting.84 and care to maintain our beautiful ur- on the Downtown area.The Down- unreinforced masonry buildings ban forest and overhead canopy that Downtown were subject to the provides shade and beauty. More- -IN City's seismic safety mitigation over,a method of addressing injuries ,. plan.35 of these buildings are to trees by large trucks needs to be o on the Master List of Historic examined.Street tree care will be Resources.Property owners have performed through the Downtown been given individual dates by Street Tree Management Plan and is which to comply between July 1, in the City's plans for use of Measure 1 2007 and July 1,2012. Y sales tax funds. + Promote compliance with the + Create Downtown Foresters ' t " Hazard Mitigation Plan in a program.Downtown Foresters q positive manner to owners and will be a program where Associa- �� tenants. tion Design committee members 5.6 Maintain Downtown will be trained to assist in caring _ urban forest.The City recently for Downtown trees.They will received its first Downtown Urban use the Street Tree Management d , Forest inventory and recommends- Plan as a guideline for selecting tions,important because our remark- trees to be planted and caring for trees. 2z SLO General Plan Land Use Element Policy 4.12 and Conservation and Open Space Element Policies 3.3.1,3.3.2,33A,3.6.4. 2007 Downtown SLO Strategic Business Plan—Draft Strategic Goals nity Design Guidelines Chapter 4 "Downtown Design Guidelines" Major strategies for 2007-2012 to maintain an effective Downtown As- Strategic Goal 6 sociation are detailed below. 1 Maintain an Effective Down- 1 6.1 Maintain strong board town Association. and committee participation. represents more than 650 busi- � TheBoard and committee members are i q nSLO Downtown Association esses through an 11-member volunteers and are the lifeblood of board of directors and staff of four the organization. + Participate in street tree Ian- employees.In partnership, board and + Continue to use a committee p P structure based on the National ning.Downtown Foresters will staff manage the affairs of the As- Main Street Center Four-Point participate in City Tree Commit- sociation and ensure its financial sta- Approach to Commercial Revital- tee meetings where appropriate, bility. They develop clear goals and Approach (see sidebar)and develop and Downtown Tree Manage- objectives for the organization. They special subcommittees and task ment Plan and inventory up- recruit volunteers.They promote the forces as needed. dates. benefits and accomplishments of the + Each committee will meet regu- Association to its members,the busi- larly to implement projects that ness community,local government 5.7 Promote a comprehen- and the public. fulfill the Association's goals. sive.Downtown directional + Thank volunteers. Appreciation signage program.Work with the City and Chamber to assess the need s Downtown Association Committees for a professional and useful signage c system to entice community mem- bers and visitors to visit and enjoy em-bersandvisitorstovisitandenjoy Promotions: Marketing activities including special the ever increasing assortment of events, theme nights at the Farmers Market, retail pro- cultural and historic treasures Down- town.Implementation is in the City's motion, image development. plans for use of MeasureY salestax Design: Streetscape improvements, sidewalk cleaning, funds holiday decorations, merchandising, public art, build- 5.8 Promote storefront ing enhancement. 5 design improvements.Provide Economic.Activities: Business development, business S education and technical assistance assistance economic issues. > about.storefront improvements to .1) business owners.Continue the cur- Thursday Night Promotions: Rules and regulations, rent Beautification Awards program application review, safety and security, public health. to reward businesses that complete projects that contribute to the beau- Parking and Accss: Parking assessment and needs, tification of Downtown. Promote Loversig�t,"accZs�to� Downtown. understanding and use of Commu- r 1 Strategic Goals 2007 Downtown SLO Strategic Business Plan—Draft ` r — "•�=� :.` d + Conduct member surveys.Con- tinue to do annual membership - surveys to determine how the businesses feel about current is- i' 3' \ sues affecting Downtown. + Continue to hold Quarterly `s- _ h Breakfast meetings.The break- ' / fast meetings have proven to be an excellent way for businesses = to meet and talk with staff and board members,socialize among ' themselves,and learn first-hand about current Downtown issues. events will continue to be held be diverse and not over-rely on any + Continue role as advisory body ' after certain events,and award one source of income. While the to City Council on the Downtown ' plaques will be given out at the current BID assessments provide the assessment district. The Associa- Quarterly Breakfasts. largest and most stable base of fund- tion is the formal advisory body + Increase interest in board ser- ing,the Association's goal is for BID on the assessment district under ' vice.The Association has some- assessment revenues to account for the current municipal code. The ' times found it difficult to attract no more than 50%of total revenues. Downtown Association would new board members. It needs The Association will continue to continue in this role until chang- to evaluate why this is so and conduct and explore other revenue es to the Association's structure 1 investigate ways to make board generating activities. and attendant Municipal Code ' service more prestigious and at- + Thursday Night Promotions changes are in effect. tractive. (TNP) + Continue new business orienta- + Concerts in the Plaza tion.Contact new businesses via 6.2 Develop two-year + Taste of San Luis a welcoming letter,provide them � work plans and budgets. The + Sponsorships+ Voluntary Memberships ' board will develop two-year work plans from the Strategic Business Plan. Work plans will be divided 6A Continue successful ' into committee tasks.Clear purpose role in business outreach - ' statements,goals,objectives,and and advocacy. The Downtown target markets will be developed for business community places a high `s each Downtown Association activity. priority on the Association's role as ' Success will be evaluated based on an advocacy group and survey data those factors. reveals this group is very satisfied with the ways in which the Associa- ` " r 6.3 Raise operating funds -R tion does this. The Association will .-.••� ._t.. to augment BID assessment continue its current activities in this area,which include those listed be- ^ i ' district revenues. It is very im- low. ` ' portant that the Association's budget 1 � ' 2007 Downtown SLO Strategic Business Plan—Draft Strategic Goals with a BID information packet, 6.8 Maintain an attractive feature them in the Association and informative website.The newsletter and invited them to Association website is a useful tool meet with Association staff for an and will be continued. - orientation. 6.9 Participate as a Certi- fied National and California 1 tions Calendar.The Annual Promo- Main Street Community and a - tions Calendar is a useful tool for the Association and will be continued. California Main Street Alliance # and California Downtown As- 6.6 Produce an Annual Re- sociation member. Board and port.The Annual Report is a useful staff should attend trainings and - promotional tool for the Association networking meetings and use these ceptable,reasonable and suffi- and will be continued. organizations as resources for Down- cient increase.Present to mem- town planning. bership.Propose to City Council. 6.7 Publish regular pub- + Request the City's audit of mem- lications for members and 6.10 Ensure adequate staff- ber's BID payments every two in levels.To accommodate the years instead of every five years area residents.The bimonthly g as is currently done. newsletter,monthly email newslet- growth in its program of activities, ter and monthly Around Downtown the Association will staff the follow- magazine feature are very popular 9 P 6.12 Form an incorporated in positions: P vehicles for communicating Associa- + One full-time Administrator nonprofit Organization to as- tion activities,Downtown issues and + One full-time Office Manager sume the duties of the Down- merchant One full-time time TNP Coordina- merchant news. They will continue town Association. Additional to be published. for background information about this Y + One full-time Promotions Coor- recommendation is provided in the *}, dinator Appendix(Exhibit F)summarized as + One part time Promotions/TNP follows: Assistant(proposed) + Enter into an annual contract r w + One full time Administrative As- with the City Council to appoint r As- sistant(proposed) a newly formed 501(c)6 nonprofit + Continued intern program Downtown Association to admin- ister the Downtown BID assess- 6.11 Amend the current ment revenues for programs and business-based BID fee so that purposes in accordance with BID revenues better keep up with law.Comply with all City report- increasing costs and rates of ing and monitoring require- inflation. ments.Begin in FY 2008-9. o - �.4 + Analyze Downtown Association + Work with City to formulate a plan to transition from City provi- __ programs to determine an ac- sion of services to independent ( Strategic Goals 2007 Downtown SLO Strategic Business Plan—Draft 1 provision of such services.. by earthquakes and other disasters, + Analyze impact of the transition -j4 the Downtown Association needs a i plan on the Association's budget. s disaster response and recovery plan ' + Incorporate the new nonprofit - to help minimize disruption to trade and develop bylaws;elect a t and commerce,the historic fabric of new board of directors.Assume the Downtown,and to ensure the ' current Association's assets and s Downtown is"open for business"as ' liabilities. quickly as possible.Such a plan could + Transfer all current operating also be used in cases of fire,flood or systems to the new nonprofit, Strategic Goal 7 other natural or man-made disasters. including existing staffing, leases, ' equipment,inventory,agree- Establish a disaster response Major strategies for 2007-2012 to ments,work plans,etc. and recovery plan for the include in a business district disas- + Employ or contract with a Downtown Association. ter response and recovery plan are ' bookkeeper and accountant he City's seismic retrofit ordi- detailed below. ' to develop accounting for BIDnance has resulted in build- and non-BID funds,payroll,and Ting upgrades that will protect 7.1 Develop business assis- taxes and financial management life safety and prevent catastrophic tante activities. ' including accounts payable,ac- building damage if SLO should suffer + Maintain a current inventory of counts receivable,bank reconcili- a major earthquake like the 2003 business and property owner ations and profit and loss state- San Simeon quake. That earthquake contact information,especially ments. showed,however,that much time for those owners who live out ' + Establish a bank account for non- can be spent,confusion created and of town and may not be easily BID funds and consider the need business assets and historic build- located in an emergency. for legal counsel. ings lost when stricken communities + Identify locations(parking lots, try to work with outside agencies side streets,parks,vacant build- 6.13 Regularly review and and multiple property owners to ings etc.)where businesses can ' report on Strategic Plan sta- develop downtown recovery poli- be temporarily relocated in tents, tus.To ensure the Strategic Plan cies during a crisis. Since downtown trailers or new spaces and update b remains effective and useful,the districts tend to be hit the hardest information frequently. Downtown Association will,in its annual report,evaluate its activities building a Safer Downtown Thru Retrofitting with regard to their relevance to the plan. While Strategic Plan goals do not necessarily follow a continuum I i ' (that is,they are meant to be on-go- ing or employed as needed without -•r> - r '�` beginning or ending),visiting the ' Strategic Plan annually and issuing a t report on how goals are implement- ❑ I ed is recommended. Seismic Strengthening& Remodel Project 2007 Downtown SLO Strategic Business Plan—Draft Strategic Goals + Identify likely sources of funding + Encourage the City to develop, i for business recovery and main- in advance,shoring and stabili- tain current contact information zation guidelines that will allow on these sources. - (00 owners to secure buildings and + Identify model marketing and give them adequate time to as promotional activities(advertis- sess damage and retrieve be- ing,events,signage,etc.)that ., ' r longings and inventory.Identify will speed the pace of business '' app' 9 N,14 in advance who will be respon- district recovery. �' sible for the costs of emergency + Distribute a business owner pre- , r ti shoring and stabilization— paredness checklist of things to l ', p .,_ oI owners,the City,or disaster do before and after a disaster. ` relief agencies—as this is often a + Develop a crisis communications ;\ " = M1'•� ti` source of confusion.Review Cali- plan for the Downtown Associa- > •' fornia Preservation Foundation's . : r. tion to use to communicate to ": ;� model documents. affected business and propertyl`""-` Y 1 + Encourage the City to develop,in owners via flyers and newsletters permits that could result from a advance,guidelines for allowing if electricity is out,mass media disaster.These standards could owners back into their buildings is shut down and the Associa- also streamline the rebuilding of to retrieve vital financial records tion has limited access to its own historic buildings in-kind.Review and business inventory.Review offices. California Preservation Founda- California Preservation Founda- tion's model documents. tion's model documents. 7.2 Encourage the use of + Support building consensus + Encourage the City to develop, in City policies that will facilitate around the desired replacement advance,guidelines for allowing post-disaster rebuilding. density and land uses Downtown owners,City officials and disas- + Work with the City to ensure that so that replacement projects are ter relief agencies into affected damage assessment procedures not slowed down by debate. areas,many of which will need and forms make it easy to clearly + Be aware that utilities and other to be fenced off and have con- ' document damage to the archi- infrastructure may be vulnerable trolled access points.Review r tectural features of Downtown's to damage and cause long-term California Preservation Founda- historic buildings and that ap- disruption to business opera- tion's model documents. propriate personnel are trained tions.Review the assessment of in their use.Review California critical infrastructure that was 7.4 Include Downtown , prepared by the City for Home- business recover issues in Preservation Foundation's model land Security. y documents. citywide disaster planning + Work with the City to ensure that activities and practice drills. any special post-disaster building 7.3 Encourage the use of The Downtown Association should repair ordinances include repair access and entry guidelines have a representative at the City's standards and design guidelines that will enable business and Emergency Operations Center during and a streamlined process for property owners to easily drills and actual disasters to provide reviewing and approving the assess damage and retrieve the information contained in the As- increased number of building belongings and inventory. sociation's Disaster Plan. r 1 Strategic Goals 2007 Downtown SLO Strategic Business Plan—Draft EK[U N s Exhibit A—SLO Business Owner Survey Results Exhibit B—SLO Property Owner Survey Results Exhibit C—SLO Downtown Association Thursday Night Promotions Recommended Changes to Rules, Regulations and Fees Exhibit D Town Hall Meeting flyer Exhibit E—Report to San Luis Obispo Downtown Board Regarding the Feasibility of Formation of a Down- town Property Business Improvement District and/or Expansion of the Existing Business Improvement District. Exhibit F—Organizational Structures and Funding memo Exhibit G—City Support of Downtown San Luis Obispo memo Exhibit H—Downtown Strategic Plan&General Plan Policies memo Exhibit 1-501 C 6 Tax Status Discussion J f 7 r � \l \�f /\1 2007 Downtown SLO Strategic Business Plan—Draft Exhibits 1 ' May 20, 2006 EXHIBIT-ft- PAGE 1.OF l S6® Business ®Miner Survey The Business Owner survey results revealed the following information and interests... • 91/2 % of the 650 business owners have responded to the survey ' 67% of the respondents have owned their business for 10 years or longer; ■ 40% of the respondents believe that in terms of security and public safety, downtown is safe and orderly; 60% believe some or great improvement is needed, ' ■ 25% of the respondents would support Business Owner funded security ' services,49% would not; 25% are not sure; ■ 25% of the respondents would support Business Owner funded services which would prioritize dealing with people demonstrating questionable behavior in the ' public rights of way, 45% are not sure, 31% are not sure, CLEANUAWS ■ 41% of the respondents believe Downtown is clean and well-maintained, 59% think Downtown needs some or great improvement as far as maintenance ' ■ 25% of the respondents would support Business Owner funded sidewalk and gutter sweeping, 49% wouldn't and 27% aren't sure; ■ 23% of the respondents would support Business Owner funded enhanced landscaping to beautify the district, 52% wouldn't and 22% aren't sure ■ 67% of the respondents think that Downtown's Marketing and Promotion is adequate and successful; ■ 14% of the respondents would support Business Owner funded marketing and t promotions above and beyond the marketing activities currently offered in Downtown, 57% would not and 29% are not sure, 00VEAWMCE ■ 44%of the respondents are satisfied with the amount of indendence/automony ' the Downtown Association has from the City; 6%are not,49% are not sure ■ 11% of the respondents would support Business Owner funded special benefit services to operate the Downtown Association as an independent non-profit from the City, 56% would not and 32% are not sure ■ Up to 35% of the respondents would support paying for sidewalk steam cleaning; 19% would support paying for graffiti removal,24% would be willing to pay for securityrincreased police presence,29% would like to see additional paid parking and marketinglunage enhancement,31% would be willing to pay ' for more staffing EXHIBIT PAGE L OF L May 20, 2006 SLO PROPERTY OWNER SURVEY C The property owner survey results revealed the following information and interests... • 13% of the 237propeny owners have responded to the survey ■ 68% of the respondents have owned their property for 10 years or longer; C SaFE�f ■ 53% of the respondents believe that in terms of security and public safety some or great improvement is needed; 43% believe it is safe and orderly; ■ 13% of the respondents would support property owner funded security services; 45% of the respondents would not support property sp pp p p rty owner funded security ; services, 42% are not sure; ■ 13% of the respondents would support property owner funded services which would prioritize dealing with people demonstrating questionable behavior in the public rights of way, 52% would not,35% are not sure; CLF"LINESS ■ 59% of the respondents believe Downtown is clean and well-maintained, 31% think Downtown needs some or great improvement as jar as maintenance ■ 30% of the respondents would support property owner funded sidewalk and gutter sweeping, 53% wouldn't and 17% aren't sure; ' ■ 23%f the respondents would support property owner funded enhanced landscaping to beautify the district, 53% wouldn't and 23% aren't sure ANNAF ZTINO ' ■ 76% of the respondents think that Downtown's Marketing and Promotion is adequate and successful; ■ 19% of the respondents would support property owner funded marketing and promotions above and beyond the marketing activities currently offered in Downtown, 48% would not and 32% are not sure; 00VE l!II"CS C ■ 54% of the respondents are satisfied with the amount of independence/automony the Downtown Association has from the City,6% are not;39% are not sure ■ 1016 of the respondents would support property owner funded special benefit services to operate the Downtown Association as an independent non-profit from the City, 57% would not and 33% are not sure ■ Up to 29% of the respondents would support paying for sidewalk steam cleaning and graffiti removal;29% would like to see assistance forgraffid;13% for landscaping,16% increased security;12%for improved parking;12%for marketing;13%for better maintenance 1 1 EXHIBIT L PAGE__L_OF 1 1 COUnCIL __._ _ ___ �.�: a0/6(a 1 agenba uEpom ccs 1 1 CITY OF SAN LUIS O B I S P O 1 1 FROM: Deborah Cash,Administrator 1 Prepared By: Kristin Dennis,Promotions Coordinator 1 SUBJECT: THURSDAY NIGHT PROMOTIONS RULES, REGULATIONS AND FEE 1 CHANGES 1 1 CAO RECOMMENDATION 1 Adopt a resolution approving the Downtown Association's changes to Rules, Regulations and 1 Fees for Thursday Night Promotions. 1 1 DISCUSSION 1 Background 1 In early 2006,the Downtown Association Thursday Night Promotions (TNP)committee 1 conducted its biannual review of Rules and Regulations and Fee structure for its program- During rogramDuring that discussion, the following questions were raised: 1 1. Is the event fulfilling its potential? 1 2. Is the event performing in a fiscally sound manner? 1 3. How does the event compare to other similar events in other communities? 4. Is TNP all that it can be? 1 1 Records show that for quite some time many booth spaces have gone empty week after week It 1 has become clear that more maintenance and staffing are needed. Amenities like electricity and 1 seating areas would help with improving the look and convenience of the market and an"image" or brand could further boost the event's visibility. In addition, financial statements show that 1 while costs have risen in all areas of running the market,fees have remained relatively low and 1 have not kept pace with costs. Although minor increases in fees have been made in the past, 1 these have not allowed for unanticipated expenses (e.g. the unbudgeted replacement of the TNP 1 information booth)or for adding electricity or increased maintenance. 1 Moreover,due to continued City budget constraints, the Downtown Association understands that it needs to become more self-sufficient in these areas. At its annual retreat, the Board formed a subcommittee and tasked it with performing a complete analysis of the event for efficiency,fiscal health and to make sure the event is "keeping up with the times."The subcommittee,consisting of TNP Chair Patty Carpenter, former chair and current Board President.Doug Shaw,Bob Schinkel,Frank DuFault,Bob Walters,Linda Jankay and Tom ' Copeland, met throughout April and brought draft recommendations to the Board in May;the Board agreed the committee was on the right track and directed the group to formalize recommendations and return with a final report in June. C C EXHIBIT PAGE 2? 01�,/ �� Thursday Night Promotions Page 2 TNP participants, both current and those who've held permits in the past year(even if they have ` not come out to the market),received notification of the June 13, 2006 Board meeting to provide C them an opportunity to hear the recommended modifications and to offer input. (Attachment 1). The meeting was also publicized in the DeliverE newsletter. The Board held a public hearing on June 13, 2006 and its minutes describing final recommendations (Attachments 2 and 3)will be forwarded by red file. C Event History The Downtown Association,formerly known as the Business Improvement Association or BIA, ` started Thursday Night Promotions (formerly Thursday Night Activities)in 1983 to address an "empty street syndrome"caused when streets were closed to traffic on Thursdays due to "cruise night" keeping visitors away from Downtown. Closing the streeti stopped the cruising problem but also deterred foot traffic.The then-BIA saw the opportunity to host an event to entice people to walk through the Downtown, starting at first with some events like volleyball games, then adding food, some vendors and eventually partnering with the SLO County Certified Farmers C Market Association. The Downtown Assoeiationcelebrated.thesuccess of the event in 1998 after it produced`and marketed a video "How to Have a Farmers Market in Your Town." Hundreds of copies were sold around the United States dnd at TNP's 15"'Anniversary celebration, a proclamation honored C the event heralding its reputation as both a mudr loved_ gQmmunity activity-as well as.astrpng tourist draw. 1 Now reaching 25.yearsas-the__'W_orld Famous"Fan= Market{the-teund+armeis MarkeE-is often used generically to refer-to the event although it would be more accurately desdribed as-a - Street Fair with a Farmers Market), the Downtown Association seeks to remain a leader in the business of providing a quality event,serving the local community and visitors in promoting Downtown. TNP Challenges Resulting in a Need for Change The following were determined as key factors in necessitating changes for the event: 1. Low participation by Downtown businesses During the formation of the event,the intent of offering on-street booth spaces was to allow Downtown Association members the ability to "extend their business' square footage"by participating in the market. MANY attempts have been made over the years to increase participation by this group. Except for those running barbecue concessions, for which space there is a waiting list,the response from Downtown Association members is poor. When polled as to why they don't participate, most say that either they"don't need to," "don't want to" or C "can't afford to hire a person to staff the booth." The idea that the market is an opportunity for Downtown businesses has not been met with much enthusiasm by Downtown Association members,yet weekly many requests from non-members are denied because of the existing rule. Regardless of the number of participants, the costs remain the same to the Downtown ?Association leaving the committee to believe the market could be more vibrant, exciting and C viable if all the spaces were full. Therefore,it is recommended the rules permit non-members at 3—Z 1 1 EXHIBIT.L PAGE� 0P 1 Thursday Night Promotions Page 3 1 1 a higher cost only if spaces are not first reserved by members. This would help fill up gaps in the 1 market and boost flat revenues. 1 2. Increased maintenance,insurance and other costs 1 The impact of the market on the physical environment has been a topic of discussion between 1 businesses,the City and the Downtown Association for many years. The Association hires a 1 cleaning person but it is apparent that the level of service provided is inadequate. The event has 1 reached a point that a cleaning crew is necessary both during the event and the morning after, particularly in the barbecue areas. However, current funding levels will not support this. 1 1 In the past few years,insurance costs have tripled—obtaining special event insurance is 1 becoming more difficult for nonprofits and we have been fortunate to find an insurer who covers 1 us at the level required by the City. 1 Many other costs are affiliated with the event: equipment and supplies,credit card fees,postage, 1 printing and operational supplies,banner fees, barricade fees. The Downtown Association 1 budget subsidizes about 30 % of TNP costs mainly in operational areas (telephone,rent, equipment)however the Board and the committee feel the event should cover its own costs to a 1 greater extent. 1 1 3. Need for Increased Staffing 1 Currently, one person serves as TNP Coordinator with in-office support from the Administrative Assistant(and to some degree, the Administrator). The Downtown Association heavily relies on 1 the assistance of Cal Poly interns, typically two to three per quarter, to physically put on the 1 weekly event. Therefore three or four persons are responsible for running the entire event,even 1 when attendance in the summer can reach more than 10,000 visitors. This small group sets up— within one-half hour the information booth, signage and merchandise, gets the mascot dressed and in location. Then as the event is underway, staff and interns oversee vendor set up with a 1 walk through to check permits and collect fees,oversee entertainment set up, sell merchandise, 1 provide information,meet with health department,police and fire representatives,report cars in 1 tow zones as well as any other disturbance, sell merchandise,break down and oversee maintenance. The staff is also responsible for posting all meters on Thursday. From April to 1 October,staff also coordinates.regularly held special events at the market including Rib Cook 1 Off,Mothers' Day Flower Give Away,Downtown Brown's Birthday,Public Works Night,Kids' 1 Night,Halloween Costume Contest and Pumpkins on Parade,Snow Night and others. 1 Because the TNP Coordinator also serves as the Promotions Coordinator,the requirements of the 1 position have outgrown what one person is physically capable of doing. A part-time assistant is 1 necessary not only to provide the much-needed additional support but also to facilitate additional 1 activities like the seating area,Main Stage entertainment area,increased space bookings, 1 electricity assignments and more. It is estimated that a part-time would work 20 hours per week. 1 4. Lack of operating amenities including electricity,seating,lighting 1 Since its inception,TNP has relied on the kindness of businesses to allow vendors to"plug in"to their in-store electricity source. While this works in an'ideal situation;overtime,problems have arisen. 1 C -- C EXHIBIT AGE OWL Thursday Night Promotions Page 4 Draping and running electrical cords from the street to buildings is probably not the best way to provide this service. It not only is unattractive but could be a liability as well. Unfortunately, it's often luck of the draw who will be able to access this amenity. ' The committee felt strongly that it's time to design a system for providing power that is equitable-any one who needs electricity should be able to obtain it from a safe and approved source. The Downtown Association has worked with Public Works to research the idea and a plan has been devised whereby power sources would, at the Downtown Association's expense, be installed in key locations and distributed through "spider boxes,"essentially large power strips where rolled extension cords could run from vendors' booths to the boxes along the gutter. C Vendors would pay for this service. Another amenity the Board and committees felt would enhance TNP is table seating for diners. While the idea of sitting on the curb munching a rib is quaint,the reality is that many people would rather sit in a chair at a table and enjoy their meal. ('This would also most likely reduce the number of gnawed rib bones tossed into the gutter.) A seating area would be established whereby a monitor would set up, keep clean and pack up the enterprise at the end of the evening. Increased lighting, especially in the winter, for entertainment and the information booth would also greatly enhance the attractiveness of the event. 5. Low fee structure As shown in Attachment 4, current TNP fees in SLO are low by comparison to those charged in a number of other communities of similar size and operation. Many event managers expressed \ amazement at the low fees in SLO and,even those who had modeled their event after ours, said they were surprised we are able to operate such a large scale event on our budget. As stated before, simply raising the fees slightly as has been done in the past would not be sufficient to accomplish the goals of upgrading,improving and efficiently running TNP. Procedure and Implementation Upon the Board's approval,the recommendations are now forwarded to City Council. Upon Council's approval of same,all TNP participants and the public will be notified of all changes. (Attachments 2 and 3). The recommended changes would take place incrementally with the new fee structure (Attachment 3)effective July 1, 2006 (to coordinate the advance billing with the Association's budget cycle.) Of critical importance to "kick starting"all the other improvements is the hiring of a TNP assistant that would occur in August 2006. Once the assistant is hired,it is estimated the increased maintenance and seating area would be implemented by September 2006. The Downtown Association is working with Public Works and eventually PG&E to have power installed and hopes to offer this amenity within six months. A branding and marketing campaign would begin sometime in late summer/early fall after selecting a graphic designer and image. A complete operating budget is found in Attachment 5. , Proposed Rules and Regulations Revision Typically,from time to time,.the TNP�committee reviews its Rules and Regulations to ensure the rules are up-to-date and meeting the needs of the event. Revisions to the Rules and Regulations P 1 EXHIBIT AGE L 0F.(If 1 1 Thursday Night Promotions Page 5 1 1 are found in Attachment 3. While most revisions are minor, one new addition allows for those 1 booth spaces that go unreserved prior to one month's booking date to be reserved by non- Association members, a departure from current policy. The committee believes that the empty 1 spaces detract from the overall viability and excitement of the event and while many attempts have been made to encourage Downtown Association members to participate in the event,less 1 than two dozen of 650 businesses take advantage of the opportunity. Two conditions would be 1 placed on non-member applicants: they must wait until at least one month prior to reserving a 1 spot to book that spot with priority going to Downtown Association members;the cost would be 1 double that of members. 1 CONCURRENCES 1 The Thursday Night Promotions Committee approved these recommendations at its June 7, 2006 1 meeting and forwarded the recommendations to the Board for its approval on June 13, 2006. 1 1 FISCAL IMPACT 1 Budget figures showing current fees and expenditures and proposed fee changes are shown in 1 Attachments 3 and 5. Proposed fee changes would cover proposed service upgrade as well as 1 regularly anticipated increases. There would be no impacts to the City of San Luis general fund. 1 ALTERNATIVES 1 1 1. Deny the proposed recommendations and retain status quo. This is not recommended due to increased costs and need for improved services at event. 1 2. Modify the proposal recommendations. This is not recommended as proposed recommendations constitute a"package deal,"whereby those combined services that would enhance and are necessary to maintaining success of TNP event would lack a funding source. 1 ATTACERIENTS ' 1. Notice of Public Hearing Fee comparison of other communities 1 2. Proposed Fee changes 0 3. Proposed Rules and Regulation revisions 0 4. Fee comparison of other communities 0 5. Proposed Operating Budget 6. June 13,2006 Minutes Downtown Association Board of Directors Meeting (Note: Minutes ' will be provided to Council via Red File) ' 7. Resolution to revise Thursday Night Promotions rules,regulations and fees EXHIBIT AGE 0 June 6, 2006 Dear Thursday Night Promotions Participant: The Downtown Association Board of Directors will hear San Luis Obispo recommendations from the Thursday Night Promotions Downtown Subcommittee regarding Rules, Regulations and Fee Structure of C Association the weekly event at its Tuesday, June 13, 2006 meeting that begins at 7:30 AM and will be held at 990 Palm Street(City PO Box 1402 Hall) in the Council Hearing Room. San Luis Obispo Cagornia93406 Following standard Council procedure, the committee and staff will present the recommendations after which time the public will be www.downtowmlo.com invited to offer comments. You are encouraged to attend and participate in this process. (There will be a public comment period for those items not on the agenda, so please note that comments on this issue will be taken when that topic is raised). Written comments may also be provided prior to or at the meeting. A copy of the agenda report for this item will be available from the Downtown Association office on Friday, June 9. You may stop by the office at 1108 Garden Street, Suite 210 to obtain a copy or email Kristin4downtownslo.com and request that a copy be ' provided electronically to you. The Thursday Night Promotions committee feels that the TNP event will benefit from the recommendations it is proposing and invites you to be a part of keeping the event successful. Sincerely, ' Kristin Dennis Promotions Coordinator r r � (t/�Lt�vwwv�t EXHIBIT C.PAGE I G*� Thursday Night Promotions " Recommended Category and Fee Revisions 3uly 1, 2006 Categories of Participation new fee (old fee) ' Downtown Association Member Vendor $40 ($16) This would be any business within ' our assessment district. Non-Member Vendor $80 (not eligible) All businesses that are not members, must submit a copy of their business tax certificate in the City of SLO. These businesses must be open for regular ' business hours 5 days a week for 8 hours a day. (Same for DA members) 1 Not for Profit/Information/Political/Cal Poly $30 ($16) Must have a tax ID #. Can only fundraise once per quarter. ' BBQs $0.50/sq. ft. ($.26/sq. ft.) ' Entertainment (non sponsored) $40 ($20) Media $50 ($30) Rules & Regulations $5 ($2) For a paper copy. A copy can be ' downloaded off our website for free. New Categgrlea Entertainment sponsor $300 N/A Electricity $10/night N/A This must be arranged with TNP ' Coordinator at time of booking. Advertising (to be a part of the Tribune ad) $30 N/A ' Late fee $15/wk late N/A This Is for quarterly biilers who do ' not pay bill on time. � 3 -7 To Thursday Night Promotions Participants: EXHIBIT AGE ZO;°~ Welcome to Thursday Night Promotions (TNP) also commonly referred to as the"World Famous"Farmers' Market. The San Luis Obispo Downtown Association is proud of the growth and popularity of TNP,one of the most successful promotions in Downtown SLO and emulated by communities everywhere. ` TNP has earned a reputation as a well-rounded event featuring a Certified Farmers' Market, food vendors, merchant and community displays,as well as great entertainment bringing national visibility to both the Central Coast and Downtown San Luis Obispo. Thank you for your interest in participating in this event. This booklet contains the rules and regulations that apply to all participants. It is the responsibility of all participants to familiarize themselves with and , adhere to these requirements during TNP. The TNP Committee, which governs this weekly event, has developed these rules and regulations to assist you in planning your TNP activity. Because of the many participants and thousands of visitors who attend,it important that the Rules and Regulations as set forth below be strictly observed. A Promotions Coordinator serves on the Downtown Association staff to assist you with your TNP plans and logistics. Please contact the Promotions Coordinator (541-0286)if you have any questions. Thursday night in Downtown San Luis Obispo is a special experience for people of all ages - residents,tourists and participants alike. Your cooperation in helping maintain the family and community-oriented atmosphere so essential to TNP's continued success is greatly appreciated. Board of Directors Thursday Night Promotions Committee SLO Downtown Association The Downtown Association Office is located at 1108 Garden St.,Ste. 210 (805)541-0286 www.downtownsio.com 1. PURPOSE, GOALS,and STRUCTURE A. The purpose of TNP is to promote business in the Downtown core.TNP is organized by, administered by and paid for by the Downtown Association. The Downtown Association is an advisory body to the San Luis Obispo City Council and is created and operated under state and local laws. The Downtown Association administers TNP in order to: * create a positive image of Downtown San Luis Obispo 1 � 1 1 EXHIBIT P 1 AGE q 0P 1 * expose community members to retail stores and services 1 offered Downtown 1 * generate foot traffic on Thursday nights 1 * provide a forum for community activities * maintain the Downtown as the center of retail,social, and .. 1 civic activities 1 * enhance the community as a whole. 1 All activities must be consistent with these goals. 1 1 B. The Downtown Association Board of Directors urges members to participate in TNP, 1 both to enhance the event and to benefit their own businesses. 1 C. It is the goal of the Downtown Association to schedule activities on Thursday nights 1 that promote a wholesome, family atmosphere. Events should appeal to all ages,and 1 provide a consumer mix that reaches all aspects of the marketplace. Downtown 1 Association members should politely report infractions of any rules to the Promotions Coordinator. 1 1 D. All activities are under the auspices of the TNP Committee (Committee) which 1 reviews applications, plans events and promotions,and enforces all rules and regulations. The TNP Committee meets every 2nd and 4th Wednesday of each month or as directed 1 by the Committee Chair.These rules and regulations may be revised at the discretion of 1 the Downtown Association Board of Directors and upon approval of the San Luis Obispo 1 City Council. 1 1 1 2. DEFINITIONS The following definitions refer to commonly used terms throughout the Rules and 1 Regulations and serve to clarify the meaning of key terms. 1 ' TNP -an abbreviation for Thursday Night Promotions. Sometimes referred to as 1 "Farmers' Market,"TNP includes the presence of the SLO County Farmers' Market Association, Inc., a separate entity. RETAIL BUSINESS -a retail business that occupies an approved retail space within the ' boundaries of the Downtown Association district. Retail businesses must operate during normal business hours on a year-round basis with dwt business' Vending machines, newspaper/magazine racks, P.O. boxes, snack boxes, and other similar businesses that primarily involve machines or do not encompass personal contact are excluded from this definition and are not eligible to participate. ' 2 C EXHIBIT-C,-PAGE -AEL- _ C DOWNTOWN ASSOCIATION MEMBER -A Downtown Association member is a business within the legally recognized and formally delineated Downtown Association boundaries which pays a double business license tax; OR is a business within the boundaries which is exempted by state or federal mandate from paying a business license ' tax but which makes a voluntary contribution to the organization (voluntary member). A ' map of Downtown Association boundaries is included in this booklet GOOD STANDING-A membeFJjM in "good standing" is defined as a Downtown Association member who has all the necessary permits to operate a business within the City of San Luis Obispo and TNP, has paid the and TNP fees, has no violations and is actively using the space assigned for TNP. BUSINESS HOURS- Consecutive hours of operation for consecutive days during a business week. Minimum hours of operation are five consecutive days for five consecutive hours per day. An example of this could be Monday -Friday 10:00 am. - 3:00 p.m. TNP OFFICIAL-Any member of the Downtown Association staff, Board of Directors, TNP Committee,City of San Luis Obispo Police or Fire Departments can be designated as a TNP official for enforcing the rules and regulations of TNP. r FIRE LANE -a 20' wide unimpeded path for use by fire, police, and medical vehicles, the location of which is determined by the Fre Department and the Downtown Association. The fire lane in the 700 block of Higuera Street will be designated by the parking ticks/markers on the street for both sides of the block The center lane striping will designate the fire lane in all other blocks of Higuera Street. All booths must conform to this requirement. The TNP Committee will review booth configuration at the time of application for compliance with the fire lane regulations. For entertainers,a 20 foot fire lane must be observed down the middle of the street or on one side or the other. NON-COMPETING BUSINESS -a business outside the Downtown Association district / boundaries which is determined at the time of application to not be similar,related and/or a competing business with any business or organization that is a member of the C Downtown Association. FUNDRAISING -the solicitation of funds in return for merchandise or services. PRESENCE ON THE MARKET -Participants are expected to leave display booth or usual type of setup in assigned space until 9:00 p.m. No early take downs are allowed. .3 3 1 EXHIBIT CPAGC�/ OF r - / 3. MEMBER PARTICIPATION 1 1 A 1 , 1 - 1 . / RM Members wishing to participate in TNP must file an application with the 1 Downtown Association and, upon approval and payment of fee, obtain a permit from the 1 Downtown Association office. Retail SM vendors must have a seller's permit and a 1 retail store in the Downtown Association district with scheduled,posted, operating 1 business hours. Merchandise sales at TNP are limited to those items sold from an established inventory within the normal scope of each participant's daily business. Sales 1 or services at TNP must be provided by a Downtown Association member owner, 1 manager, employee or family member and not an agent of the business. Service and 1 professional applicants must conduct the majority of their business within the Downtown 1 Association district. 1 B. TNP permits may not be reassigned or sold. A Downtown Association member's 1 business cannot act as a sales agent for a non-member business. The participant must be 1 a Downtown Association member in good standing and have an active lease or ownership in the Downtown Association district. If it is determined a member business selling at 1 TNP is selling inventory not part of that member's business, the permit may be revoked. 1 C. Upon request,and space permitting, the Committee will attempt to place vendors in 1 close proximity to their places of business. Member participants are not guaranteed space 1 in the location of their choice. 1 milli 1 1 1 1 5. FUND RAISING FOR/ BY NOT-FOR-PROFIT ' ORGANIZATIONS ' 4 EXHIBIT _( AGE L)'OFO� A. At the discretion of the Committee, a Not-For-Profit organization may be permitted to participate if the Committee determines that the organization's participation will provide a public service or will serve to promote the purposes and goals of TNP. B. Not-For-Profit groups may conduct direct sales no more than four(4)times per year, once per quarter, and not more than two(2)consecutive weeks. Sponsorship from Downtown Association members may not be solicited to circumvent this rule. Note: Fundraising dates&materials must be pre-approved by the Committee. C. Participants shall limit sales to items specified on the approved application. r' Merchandise or related fundraising items can be at the participants' booth on approved fund-raising dates only and may not be displayed weekly. D. Organizations wishing to raise funds during TNP must have a Not-For-Profit status. Verification must be provided at the time of application. Reasonable documentation, such as meeting minutes, by-laws, articles of incorporation, communication from the ` Secretary of State,tax payer documentation or other indication of non-profit status will be accepted as verification. Note: Student clubs and organizations must provide written authorization from their advisor(s) - Cal Poly students are to initiate an E-plan at the ASI Business Office. & All monies generated by sales or solicitations, excluding direct material costs, must go to the Not-For-Profit group, not to individuals within the group. The Committee may ' request a full accounting. ' F. The organization must submit its application no less than three (3) weeks in advance of the desired attendance date. Upon review and approval by the Committee and payment of fees,a space will be assigned. Participants are not guaranteed space in the location of their choice. G. If food items are to be sold, the organization must have the necessary written approval from the San Luis Obispo County Health Department prior to receiving a permit. ' H. Participants shall keep their area clean during the activity and leave the space and surrounding area clean afterward. I. Participants will be required to reimburse the Downtown Association for any costs incurred relating directly to their activity. 6. POLITICAL,RELIGIOUS AND OTHER INFORMATIONAL GROUPS A. Approved applicants will be given space on a first-come, first-served basis according to space availability. Participants are not guaranteed space in the location of their choice. Additional spaces maybe temporarily provided for special events or occasions, e.g. election season. 5 1 1 1 1 / �/ EXHIBIT�-�PAGE/-�0 ° 1 B. All groups or individuals wishing to disseminate information,pass petitions, or 1 promote political, religious, or personal beliefs are strongly encouraged to submit a 1 signed application no less than three(3)weeks in advance of the date desired. Upon 1 review and approval of the application by the Committee the applicant's name will be _added to the list.desiring space. The Committee will not discriminate on the basis of race, 1 4 religion,creed,color, gender,political beliefs, national origin, age, physical disability or 1 other basis prohibited by law. 1 G Applicants whose format is determined to be entertainment shall not be eligible for a 1 space allocation under this section, but shall be regulated by Section 7. 1 1 D. Participants may not harass,follow, or intimidate Downtown visitors or Downtown 1 Association staff.Activity that impedes the flow of pedestrian traffic is not allowed. 1 Applicants must stay within their assigned space. Activities that are conducted in such a manner as to interfere with the goals or purposes of TNP may result in immediate 1 revocation of the permit. 1 E. Handbills may only be posted with City or property owner approval. No stickers or 1 adhesive materials are allowed at TNP. 1 1 F. Participants shall keep their area clean during TNP and leave the space and 1 surrounding area clean afterward. Failure to do so may result in additional fees. 1 G. Except for approved entertainment use,no amplification is allowed. 1 7.ENTERTAINMENT 1 1 A. The committee shall select the type of entertainment best suited to promote the goals 1 of TNP. Auditions,demo tapes or CDs are required. Entertainers will perform the type 1 and style of entertainment exhibited during audition. 1 B. Entertainers must keep sound levels within the following guidelines: 8o decibels 1 at Garden Street and 90 decibels at all other TNP venues. Entertainers may not use 1 generators. Violation of decibel level guidelines will result in warning followed by 1 electrical disconnect and/or removal from the market. 1 C. Power connections are the responsibility of the entertainer. Entertainers must treat 1 merchant property with great care. Any abuse will result in immediate revocation of 1 permit and cancellation of additional performances. Electrical hook-ups are subject to Fire Department regulations. All extension cords must be taped down or properly 1 covered to avoid a tripping hazard. 1 1 D. Entertainers are subject to appropriate fees which must be paid when permit is issued. 1 Entertainers may passively ask for donations but may not actively solicit money. 1 S Entertainers are subject to space availability and assignment as determined by staff. 1 1 6 1 C r EXHIBIT�L AGE± F F.The Downtown Association requires that all music performed during TNP be original C and/or music in the public domain C G. Entertainers most stop performing at 8:45pm to start cleaning up;ensuring that =` the road will be cleared by 9:30pm. ; S. MEDIA (RADIO,TELEVISION, NEWSPAPER) � Cooperation between TNP and the local media is encouraged to promote TNP. Media ' organizations may apply to participate during TNP and observe the guidelines listed below. 1 -No amplified music unless authorized by the TNP Committee. -All giveaways(non-adhesive material only)must be pre-approved by the Committee.No adhesive materials of any kind will be allowed. -Promotion/Advertising shall be for the applicant only,not for special events or non- r member businesses. C 9. APPLICATIONS,PERNIITS,SPACE ALLOCATION A. Those wishing to participate in TNP must submit an application must three(3) weeks prior to the desired attendance date. Cal Poly clubs must initiate an e-plan through the ASI Business Office. It is the applicant's responsibility to contact the Downtown Association office regarding the status of their application. Upon approval by the Committee, staff will assign a specific space or location and issue a permit reflecting the space allocation. The space will not be considered reserved until the appropriate fees are paid. B. The person in charge of any activity must be in possession of a valid permit at all times. The permit is to be conspicuously displayed during operation. C. All approved applicants will receive a space assignment only if the fee(s) are paid. The space con-esponds to a street address. PARTICIPANTS MUST STAY WITHIN THEIR ASSIGNED SPACE AND OUT OF FIRE LANES AT ALL TIMES. It is the participant's responsibility to be aware of the fire lanes, as specified by the TNP Coordinator. D. The TNP Coordinator has the authority to assign or to reassign spaces. Participants ' are not guaranteed space in the location of their choice. Vendors are limited to one 7 r r 1 - 1 EXHIBIT_LRAGEJ E Q 1 assigned space per event unless authorized by the Committee. Tardy vendors(vendors 1 showing up after 6:00pm) may have their space reassigned because of space 1 availability. 1 E. Spaces not%exceed the following dimensions: 1 Direct Sales - Member 10' x 10' ~� 1 Member Food 10' x 12' 1 Barbecue fees based on square footage 1 used, booth not to exceed 15' in depth Direct Sales - 1 Not-for-Profit 10' x 10' 1 Informational 10' x 10' 1 Non-competing/ Volunteer member 10' x 10' 1 Media 10' x10' 1 Non-Member businesses are only allowed to display merchandise, no sales permitted. 1 F. Vendors must keep all items in their assigned booth space and cannot use City 1 property (trees, parking meters, etc.)to hang signage or any other materials. 1 1 10. APPROVAL OR DENIAL OF TNP APPLICATIONS 1 1 A. Under the Street Closure or other relevant permits issued by the City of San Luis 1 Obispo, the Downtown Association and the TNP Committee have full discretion 1 concerning use of the area designated for TNP.Applications submitted will be reviewed by the TNP committee for approval or denial based on Event criteria. It is the applicant's 1 responsibility to contact the Downtown Association office for this determination. If an 1 application is denied, the basis for denial shall be given upon request. 1 B. If an application is denied,and the applicants disagrees with the basis for denial, an 1 appeal may be made by applicant,first to the TNP Committee,then to the Downtown 1 Association Board of Directors and,if necessary, to the San Luis Obispo City Council. 1 11. STREET CLOSURE 1 1 The City of San Luis Obispo Public Works crew begins barricading the streets at 1 approximately 5:30 p.m. Approved participants may begin setting up as soon as the 1 barricade truck has left the area. Support vehicles must be unloaded and off the street by 6:00 P.M.Vehicles left inside the barricaded area after 6.00pm are subject to towing at 1 the owner's expense. All activities end at 9:00 pm. and participants must clear their area 1 entirely before 9:30 p.m. at which time barricades are removed and traffic flow resumes. 1 A presence of the permittee must be maintained in the space assigned until 9:00 p.m 1 1 1 8 1 EXHIBIT C'PA4 b OF2 No early take-downs are allowed Under no circumstance are vehicles allowed to ! enter the barricaded area during Market hours,6:00pm-9.00pm. Even in the circumstance of rain. The following guidelines,given to all participants for set up and takedown,state(in per): - TNP Officially begins at 6pm and ends at 9pm. Higuera St is barricaded from all side entries and at both ends approximately at 5:30pm,at which time vendors may begin setting up. - Do NOT stop vehicles or begin set up in booth space until after 5:30pm. - Do NOT block the center lane of Hignera St. at any time; pull to the side lane and unload your vehicle. - NO VEHICLES (EXCEPT THOSE USED FOR OCCASIONAL DISPLAY PURPOSES & NOT DRIVEN) ALLOWED ON HIGUERA ST. BETWEEN 6-9PM. If vendor is running late or must leave early,all equipment must be carried in/out. - - Drivers must exercise extreme caution and drive slowly during the 5:30- 6:00pm set up and 9:00-9:30pm take down. Drivers must heed all directions issued by TNP Coordinator regarding safety. , 12. RAIN POLICY In the instance of rain, the TNP Committee will decide whether or not to cancel TNP by 3:00pm. It is the participant's responsibility to contact the Downtown Association to find out the status of TNP. If a participant chooses to not participate due to the weather, this ` will not be counted against the participant If the TNP Committee chooses to cancel TNP, a rain credit will be given to participants signed up for that night. No rain credits will be given unless the Committee has given the official call. 13. HEALTH, FIRE,AND POLICE REGULATIONS While the Downtown Association is not an enforcement body for the Health, Fire and Police Departments, cooperation with these agencies is essential. Participants shall be ' aware of code requirements and comply. Only people,events will be permitted in the fire lanes. No tables,risers,or any other equipment will be allowed. Specific questions regarding the codes should be directed to the appropriate agency. 14. EQUIPMENT AND SERVICES ( The Downtown Association is under no obligation to provide power,water, or any C equipment to participants. An applicant needing specific services must make these needs known in the application. The Downtown Association's only obligation is to provide a space on the street. It is the applicant's responsibility to provide all necessary equipment 9 C 1 1 1 EXHjBIT, G PAGE,LZ OF-2 1 - 1 for operation of his/her booth. Power cords, when used, must be taped down and 1 conform to City requirements. Generators may not be used. 1 1 15. FEES Participation in TNP is a privilege for both businesses and Not-For-Profit organizations. 1 Since there are substantial costs (such as janitorial,trash removal, street closure and 1 insurance) involved with sponsoring these weekly events,the Downtown Association has 1 established permit fees in the following categories: 1 * Member barbecue vendors 1 * Direet Sales—Member- 1 * Not-For-Profit groups 1 * Information/Political groups * Entertainment 1 * Media 1 1 1 1 A fee schedule, subject to annual review,is available in the Downtown Association 1 office.There will be no refunds or credits unless TNP is officially canceled due to rain. 1 1 FEES FOR PERMITS MUST BE PAID 1 WHEN THE PERMIT IS ISSUED. 1 THE PERMIT MUST BE DISPLAYED DURING THE EVENT. 1 16. FOOD VENDORS INCLUDING BARBECUERS 1 Within the current boundaries of TNP(Higuera Street between Nipomo and Osos 1 streets), there shall be no more than nine(9)barbecues,each with a reserved space assigned. In addition to the TNP rules,all barbecues are subject to Health and Fre 1 Department regulations. In order to retain the reserved space, all food vendors must 1 adhere to the following rules that apply: 1 A. All food vendors must have a business and full service commercial kitchen within the 1 Downtown Association boundaries. 1 1 B. Food items should be the same type as are sold on the daily menu at place of business 1 unless otherwise authorized by the committee. 1 C. Barbecue operation must be kept within the space assigned. 1 D. Food vendors may begin setup no earlier than 5:30pm. Barbecues may be pulled onto 1 the street no earlier than 4:00 p.m. Barbecues are not to be started in an assigned street 1 space until after 4:00 p.m. and are not to extend into the street past the parking place 1 marker. All barbecues must be set up in their assigned space prior to lighting the 1 10 1 1 EXHIBIT PAGEA0 F barbecue. No'live"or lit barbecues can be transported into or out of the TNP area. During lighting, the barbecue is to be surrounded by barriers set five (5)feet away to protect pedestrians from flames . (This may require temporary placement of barriers on sidewalk areas). Standard starter fluid or propane wands can be used to start barbecues. All vendors using open flame_must operate in accordance with all fire code regulations. Each barbecue must have an approved fire extinguisher on site. E. Areas assigned to barbecues that consist of on-street, regular metered parking spaces (a total of no more than 18 spaces(nine barbecues)may be posted"No Padang After 3pm"by the Downtown Association, complying with City of SLO requirement that such posting occur 24 hours in advance of the restricted time. Barbecue unit may not be brought into space until 4PM. F. Barbecues must be surrounded by barriers set five (5)feet away and can be easily moved for emergency vehicle access. G. Support vehicles must be moved away from the barbecue area by 6:00 p.m. H. Food vendor areas must be kept neat and clean at all times. Each barbecue vendor must provide at least one 50-gallon container for refuse. I. Permits may be revoked by the TNP committee for the following reasons: (The same rules for revocation apply to all members_) 1. Closure of business. (Exceptions may be made-for renovations that do not exceed 60 days.) ' 2. Non-compliance with Downtown Association, City of San Luis Obispo Fire Department, or County of San Luis Obispo Health Departmenrregulations. 3. Non-payment of prescribed fees within the designated time period. 4. Poor attendance. 5. Sale or transfer of business ( J. Permits are subject to modification and revocation by the City Council at any time and are valid for the indicated permit period only. K A waiting fist of members who wish to barbecue or use an LPG device is kept in the Downtown Association office. Any space that becomes available will be reserved for the member at the top of that list. To be placed on the waiting list, a member must file a TNP application and the member must show that they are qualified in all respects. L. Barbecues and LPG users are required to participate every Thursday unless TNP is officially canceled due to weather. The Downtown Association office will notify barbecue participants on the status of TNP due to weather by 2:00 p.m. the day of TNP. Failure to participate will cause the permit to be reviewed by and possibly revoked the committee. Barbecues and LPG users are allowed one absence per quarter. 3�� C II C 1 EXHIBIT Cl PAGE1O 00? 1 1 1 17. SAN LUIS OBISPO COUNTY FARMERS' MARKET ASSOCIATION, INC. (FARMERS' MARKET) 1 1 The Farmers' Market Association participates in TNP at the invitation of and under 1 contract with the Downtown Association. The Farmers' Market Association operates under State regulations and those set by its Board of Directors. Certain guidelines have 1 been established by the Farmers' Market and the Downtown Association addressing 1 specific needs of TNP. 1 All people wishing to sell their agricultural products directly to the public must contact the Farmers' Market Association, as the Downtown Association does not issue permits or 1 space assignments for Farmers' Market, and issues no variances to circumvent Farmers' Market rules. 1 Call 5449570 for information about the Farmers' Market Association. 1 1 18. GENERAL RULES FOR PARTICIPANTS: 1 A. Any vendor, club, group, or persons participating in TNP must comply with all of the 1 rules. Non-compliance,including offensive conduct, may result in immediate revocation 1 of the permit. If a permit is revoked an appeal may be made,first to the TNP Committee, 1 then to the Downtown Association Board of Directors, and finally to the San Luis Obispo 1 City Council. During the appeal process a space will be held for the participant providing that all fees are paid. 1 1 B. The Committee reserves the right to revoke the permit and/or order the removal of all 1 equipment and material(belonging to a participant)from the street for any reason deemed necessary by the Committee to better meet the goals and purposes of TNP or for 1 public health, safety and welfare. 1 C. All participants must conspicuously display the name and location of their business or 1 organization on a sign with the minimum size being approximately 400 sq. inches (14"x 30'D. Merchants' show windows may not be obscured at any time by boards,banners or 1 other large displays. 1 1 D. Lighting on booths should be used for illumination of the booth and display purposes 1 only. Strobing,flashing and/or rotating lights are not permitted. All lighting must be 1 battery or electric only. The Downtown Association does not guarantee electricity. It ' is the participant's responsibili_ to solicit electricity from the businesses they are in front of 12 IEXHIBIT PAGE OF r E. No person shall deface or otherwise abuse the Downtown buildings or plants including stickers, paint or graffiti. ( F Amplification is NOT allowed without previous written approval from the TNP Committee. ( G. All applications for TNP must contain name, address, phone number, and signature of applicant or applicant's authorized agent. This person must be the contact person. The applicant shall acknowledge the participant's liability for damages(including costs for clean-up and damages to property belonging to merchants or tenants). Participants are responsible for contacting the Downtown Association if there is a contact person change or address change, H. Members must participate once space is allocated to maintain validity of permit. Non- use may result in that space being reassigned. Members must have a valid permit for each date of attendance; members not participating on a pre-paid continuous basis must secure a valid permit for each date of attendance by coming to the Downtown Association office and paying the required fee prior to date of attendance. Members not participating for 90 days or more must submit a new application. I. If food items are to be sold, members MUST apply to, and have the necessary written approval from the SLO County Health Department prior to receiving a TNP permit. J, Permits may be revoked for the following reasons: (The same rules of revocation apply to all participants). 1. Closure of business (Exceptions may be made for businesses undergoing renovations that do not exceed 60 days.) 2 Non-compliance with Downtown Association, City of San ' Luis Obispo Fire Department or County Health Department ' regulations. 3. Non-payment of prescribed fees within the designated time period 4. Poor attendance. Vendors may miss no more than one night per quarter, due to emergency. r 5. Sale or transfer of business Appeal of TNP Committee determination shall be made in accordance with "Appeal Process" in General Rules. . K Businesses who have not applied for and received a permit for TNP will not be allowed to participate in TNP and are subject to removal. 13 C 1 EXHIBITPAGEOF 1 1 L. TNP participants must have proof of liability insurance with minimum coverage of 1 $1,000,000 and workers compensation insurance for all employees participating in TNP. Participants are required to have their insurance carrier notify the Downtown Association 1 staff in writing of their insurance status. Further, only business owners or immediate 1 family member may operate vendor booths without providing proof of workers 1 compensation coverage; if family members are working the booth, a letter must be on file with the Downtown Association indicating this intention. All other workers are assumed 1 to be employees and must be covered by workers compensation and proof of such will be 1 provided to the Downtown Association prior to approval of application. 1 M. The Downtown Association, the TNP Committee,its agents or staff are not 1' responsible for theft or damages to property belonging to persons participating in TNP. 1 The Downtown Association assumes no responsibility for items left unattended during or 1 at the conclusion of TNP.. 1 N. No person participating in TNP shall state, imply or otherwise suggest that the / Downtown Association, or any of its member businesses endorses, sponsors or supports 1 the views of applicant's business or organization. 1 O. Alcoholic beverages or affiliated promotional products may not be sold, consumed, 1 promoted or advertised during TNP. 1 1 P. Tobacco products and merchandise may not be sold, promoted or advertised during 1 TNP. 1 Q. Tattooing, permanent cosmetics and body piercing may not be performed or 1 administered during TNP. Body piercing does not include piercing the leading edge or 1 earlobe of the ear. 1 R The Committee reserves the right to refuse participation to any applicant. 1 S. The Committee will not discriminate on the basis of race, religion,creed, color, 1 gender, political beliefs,national origin,age or physical disability or any basis prohibited 1 by law. ► ' T. Participants in TNP shall be appropriately dressed(e.g. shirts and shoes), and conduct themselves with proper decorum 1 U. The committee reserves the right to limit sales of items that are in direct competition with those items of Downtown merchants. 1 V. Permits may be revoked for the following reasons: (The same rules for revocation apply to all members.) 1. Sale or transfer of business. I 14 ► ► EXI-IISITAL PAG ELL' 2. Closure of business. (Exceptions may be made for renovations that do not exceed 60 days.) L 3. Non-compliance with Downtown Association, City of San Luis Obispo or County of San Luis Obispo Health Department regulations. 4. Non-payment of prescribed fees within the designated time period. 5. Poor attendance. W. Appeal Process for Permit Revocation Any participant or applicant denied a permit or whose permit is revoked may appeal the denial/revocation in the following manner: r File formal complaint within 10(ten)days of the denial/revocation(obtaining complaint form from Downtown Association office)stating nature of complaint and requesting appeal to be agendized at the next earliest or desired meeting date of the Thursday Night Promotions Committee. If complainant disagrees with determination of Committee, complainant may then repeat the procedure appealing that decision to the Downtown Association Board of Directors. Should the complainant disagree with the determination of the Board of Directors, the complainant should contact the City of San Luis Obispo City Clerk about appealing the decision to the City Council. X. All giveaways (non-adhesive material only)must be pre-approved by the Committee. No stickers or adhesive materials of any kind will be permitted to be sold, distributed, i given away or offered. r Y. No pets/animals are allowed at TNP without pre-approved authorization and only in limited and controlled circumstances. Animals utilized to assist disabled persons are excepted. PLEASE OBTAIN YOUR PERMIT FROM I THE DOWNTOWN ASSOCIATION OFFICE PRIOR TO THE THURSDAY NIGHT YOU WISH TO PARTICIPATE The office is located at: 1108 Garden Street, Suite 210 r San Luis Obispo, CA 93401 www.downtc)wnslo.com Rules &Regulations updated 6-01-06 by Kristin Dennis, Promotions Coordinator C Approved by TNP Committee 6-07-06 15 ' 1 1 EXHIB1?� - �AGEar)t OF 1 Farmers' Markets around California 1 1 Chico: 1 $45.00 Application fee for the season, non refundable 1 Application fee waive for DA members 1 DA Members$35/week Non Profid Political $35/week 1 Craft/ Commercial $45/ week 1 Food Service(Prepared foods) $551 week 1 One time use rate—add$10 to booth space in Iieu of app fee 1 $10 late fee applies to vendors who do not pay by 5:00 pm Tuesday, and the space may be reassigned 1 1 El Centro: Entry Fee$60-non refundable 1 $10 Electrical power 1 *$100 fine if you leave trash behind 1 Hanford: Restaurants pay 10%of nightly gross sales, min$15 1 DA vendors $25/night 1 Non members $35/night 1 Non-Profit$30/night **Join DA as a Volunteer Member for$125 and receive DA rates 1 1 Pacifie Coast Farmers Market Association: 1 *They handle 40 Farmers Markets from around the state. 1 Application Fee$75 $45/night or 6%of sales(when sales are$750 or more); whichever is greater 1 Davis:. Application Fee$40,$25 renewal Members 6% sales, $20 Min 1 Non-Members 8% sales, $26 min Restaurants$75 Clovis: Market Reservation fee$150 Food vendors, entr6e$150/market, members$125 ' Specialty food vendors(finger foods i.e. Popcorn) 15% of gross sales $35min Gourmet goods vendors(Non certifiable agricultural products and/or packaged foods)bread, cheese, coffeel0% gross sales $25min Attractions 15%gross sales t' LTAG EXHIBIT C ' oF TNP 06-07 Proposed Budget -- _. _) Category Amount Amount Income Current Proposed Merchandise 5,500 5,500 C Fees 71,000 130,000 r C Total 76,500 135,500 ( Expenses Events 5,500 8,500 C Supplies/mdse 10,000 25,000(includes elec. box installation&supplies) Insurance 2,500 4,000 Trash 11,000 15,000 Janitorial 9,000 12,000 ! Barricades 6,000 6,000 TNP Coordinator 25,000 22,000 ; TNP Assistant 0 12,700 ! Office 10,000 14,000(includes increased workspace,storage) M, Mgr 9,500 9,500 Downtown Brown 1,440 1,800 Graphics/Signage 0 5,000 Total 899940 135,500 DA Budget subsidy 13,440 0 i r C 1 EXHIBII'f,_ ` i PACS a OF?� ' RESOLUTION NO. (2006 Series) A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO ADOPTING THE DOWNTOWN ASSOCIATION'S REVISED THURSDAY NIGHT PROMOTIONS RULES, REGULATIONS AND FEES WHEREAS,The,San Luis Obispo Downtown Association conducts a weekly _. 1 promotional event,Thursday Night Promotions('INP), also commonly referred to as Farmers' ' Market; and WHEILEAS,The TNP event is a financially self-sustaining, safe and fun family-oriented activity; and ' WHEREAS, the SLO Downtown Association Thursday Night Promotion Committee conducted a biannual review of its program;and WHEREAS, the TNP Committee determined the program had unfulfilled potential and ' needed service upgrades;and WHEREAS, the TNP Committee submitted to the Board of Directors revisions to the Rules, Regulations and Fees to accomplish the goals of the program and maintain the event's r viability; and WHEREAS, the Board of Directors approved the recommendations submitted by the TNP committee, ' NOW, THEREFORE, BE IT RESOLVED that the Council of the City of San Luis Obispo hereby approves the revised Rules, Regulations and revised Fee Schedule, copies of which are on file in the office of the City Clerk ' Upon motion of seconded by and on the following vote: AYES: ' NOES: 1 ABSENT: The foregoing resolution was adopted this day of 2006. 1 1 Mayor David F. Romero 1 1 1 ATTEST: 1 1 R 1 1 Resolution No. (200x Series) EXHIBIT PA G E X`0 F4(- Page 2 Audrey Hooper City Clerk APPROVED AS TO FORM: Jonathan P. Lowell City Attorney i1 / EXHIBIT PAG E. l . OF E EWA 1San Luis Obispo INTERESTED IN THE FUTURE OF / AVJ Downtown DOWNTOWN? / Association WANT TO MAKE A DIFFERENCE IN YOUR COMMUNITY, 1 You're invited to attend a / TOWN HALL MEETING 1 / To assist in the update of Downtown's Strategic Plan 1 this Thursday, July 27 1 / 6 - SPM 1 1 SLO Art Center, corner Broad and Monterey 1 1 Your input is welcome on issues like 1 • Cleanliness 1 • Safeiy 1 • Downtown Growth and Density / • Funding for Downtown Services 1 Downtown Promotions and Marketing 1 1 to develop new, revised or refreshed goals and strategies for the 1 Downtown Association to use as a guideline for the next five years. 1 1 Open to the public i 1 Snacks and Beverages Provided 1 1 Questions or lnformation 541-028 6 1 1 Please RSVP! 1 1 / 1 EXHIBIT®.Z PAGE OF� REPORT TO SAN LUIS OBISPO DOWNTOWN BOARD REGARDING THE FEASIBILITY OF FORMATION OF A DOWNTOWN _ PROPERTY BUSINESS IMPROVEMENT DISTRICT AND/OR EXPANSION OF THE EXISTING BUSINESS IMPROVEMENT DISTRICT Presented by Darlene Rios Drapkin,Eichen,field&Associates C June 12, 2006 1 r Introduction and Overview. The purpose of this study was to explore alternate forms of funding for SLO Downtown Business Association by determining the level of support for: 1) Expansion and/or amendment of the current BID formed under Section 6101 in July 1978 and/or 2) Establishment of a "special benefits" district, in Downtown San Luis Obispo to take the form of a "property assessment district"whose function would be to fund special benefit services, or those activities and services that are (' currently not being provided by the City of San Luis Obispo. ; District Boundaries: The Study Area included not only the original boundaries from the BID formed under Section 6101 in July 1978, but the additional area as described in Attachment / A as agreed upon surveying the area for natural connections. C Numbers. Within this proposed area,there are 381 parcels owned by 273 property owners. Overall Database: The overall database, based upon our preliminary study and the above listed boundaries, included the following variables: Property Variable Total Database City Ownership, % of total ' Building Square 3,183,836 square feet 462,900square feet*(14.54% of Footage total) C Lot Size 4,014,065 square feet 569,616 square feet(14.19% of total Linear Frontage 28,354 linear feet 2,273 linear feet 8% of tot Survey responses: Surveys were mailed to the 381 property owners within the existing BID boundaries as well as the 100 property owners within the new study area. Surveys were also sent to the 600+business within the study area. < The responses to the survey, based upon property variables were as follows: i 1 1 1 EXHIBIT V PAGE2 OF/ 1 Supportive,Not SureNon-Supporfive of the Concept 1 PROPERTY OWNER LOT SIZE % BUILDING % FRONTAGE 1 1. Copeland 3.80% 6.86% 6.8% 1 2. VINTAGE 1.36% 1.62% 1.9% 1 . 0.23% 0.2% - 1 3. HIGUERA 0.36% 0.1% 1 4. MCNAMARA DAVID 0.19% 0.07% 1 TOTALS 5.71% 8.78% 9.00% 1 5. COAST BANK 1.19% 0.97% 0.5% 1 6. L J Morganti 0.83% 0.58% 0.9% 1 7. NELSON ` 0.40% 0.21% 0.5% 1 8. VERNACCHIA 0.31% 0.65% 0.7% 1 9. MITCHELL-LEITCHER 0.30% 0.31% 0.4% 1 10. BUTLER 0.28% 0.13% 0.0% 1 11. MAI NO. 0.19% 0.38% 0.7% 1 12. V& F JONES 0.19% 0.59% 0.7% 1 13. SANT EYE 0.19% 0.21% 0.0% 1 14_ COVEY 0.19% 0.15% 0.5% 1 15. JENKINS DIANE 0.15% 0.07% 0.1% TOTALS 4.22% 4.18% 0.05 ' 16. MARTIN & HOBBS 0.34% 0.33% 0.8% 1 17. MARTIN JEAN A 0.26% 0.09% 0.1 ' 18. MARTIN JERRY 0.25% 0.33% 0.7% ' 19. CARPENTER 0.22% 0.27% 0.3% 20. MADSON 0.20% 0.19% 0.2% i 21. HINDLER 0.18% 0.06% 0.1% 22. GOUGH 0.17% 0.06% 0.2% 1 23. PORCHE 0.17% 0.27% 0.2% ' 24. KIM MATTHEW 0.16% 0.06% 0.3% i25. PUGH 0.16% 0.06% 0.1% ' 26. TRENEV 0.14% 0.06% 0.1 1 27. ERNST TRUST 0.12% 0.05% 0.1% 1 28. PETRA 0.12% 0.23% 0.1% 1 29. HALES MEYGAN 0.11% 0.07% 0.1% 1 30. PALM STREET LLC 0.08% 0.17% 0.4% 1 31. GRAZIANO i 0.02% . 0.02% 0.1% 1 1 1 EXHIBIT PAGE TOTALS 1 2.70% 1 1 2.30% 1 3.30% ITOTALS 1 1 12.631 1 15.261 1 12.35% HIBIT r� PAGE q. OF �. Analysis of Data: ' During our meetings on May 22 and 23 with City Staff and Economic Development Committee,there was consensus that the survey results indicated there is not clear support for the concept of establishing a:"special benefit"PBID district. The expansion and/or amendment of the current BID is still being explored although the ' findings from survey the businesses garnered similar responses. Therefore it was determined to not proceed to the PBID formation stage for now. 1 f f I 1 1 I 1 1 I EXHIBIT VPAGE _ OF �D SLO Downtown Association Boundaries Street Name Addresses Addresses Per City Ordinance No. 649 (19 75 Series) GIS Datax Broad 900-1308 963-13 Chorro 900-1304 941-13" Garden 1100-1308 1110-1, Higuera 552-1103 560-10'0 Marsh 497-1114 497-11,A Monterey 600-1108 978-11 Morro 900-1301 950-11`,1 Nipomo 1000-1306 1010-1'j Osos 890-1302 1220-1 in Pacific 600-1106 6669-1� Palm 682-1104 682-11} Santa Rosa 900-1304 940-13� New Boundaries to Explore C Monterey 1129-1255 Johnson 979 Marsh 1107-1177 and 299-545 Marsh 300-545 Morro 1322-1346 Osos 1320-1350 Santa Rosa 1315 Pismo 1068 Pacific 1162 and 544-570 Chorro 1318-1370 Palm 601-673 Higuera 385-563 C Carmel 435 1 Beach 1210 C Garden 1319-1334 Broad 1312-1314 Nipomo 1320-1344 1 1 1 EXHIBIT PAG E --(YOF , �, r Supportive,Not Sure,Non-Su)portive of the Concept 1 PROPERTY OWNER LOT SIZE % BUILDING % FRONTAGE % 1 1. Copeland 3.80% 6.86% 6.8% 2. VINTAGE 1.36% 1.62% 1.9% 1 - 1 3. HIGUERA 0.36% 0.23% 0.2% 0.1% 1 4. MCNAMARA DAVID 0.19% 0.07% ' TOTALS 5.71% 8.78% 9.00% 1 5. COAST BANK 1.19% 0.97% 0.5% 6. L J Morganti 0.83% 0.58% 0.9% 7. NELSON ' 0.40% 0.21% 0.5% (t 8. VERNACCHIA 0.31% 0.65% 0.7% 9. MITCHELL-LEITCHER 0.30% 0.31% 0.4% 1 10. BUTLER 0.28% 0.13% 0.0% 11. MAINO. 0.19% 0.38% 0.7% 1 12. V& F JONES 0.19% 0.59% 0.7% ' 13. SAM EYE 0.19% 0.21% 0.0% 1 14. COVEY 0.19% 0.15% 0.5% 15.JENKINS DIANE 0.15% 0.07% 0.1% 1 TOTALS 4.22% 4.18% 0.05 1 16. MARTIN &HOBBS 0.34% 0.33% 0.8% 1 17. MARTIN JEAN A 0.26% 0.09% 0.1% ' 18. MARTIN JERRY 0.25% 0.33% 0.7% - 1 19. CARPENTER 0.22% 0.27% 0.30/0 ' 20. MADSON 0.20% 0.19% 0.2% 21. HINDLER 0.18% 0.06% 0.1% 1 22. GOUGH 0.17% 0.06% 0.2% 1 23. PORCHE 0.17% 0.27% 0.2% 1 24. KIM MATTHEW 0.16% 0.06% 0.3% 1 25. PUGH 0.16% 0.06% 0.1% i 1 26. TRENEV 0.14% 0.06% 0.1% 1 27. ERNST TRUST 0.12% 0.05% 0.1% 1 28. PETRA. 0.12% 0.23% 0.1% 1 29. HALES MEYGAN 0.11% 0.07% 0.1% 1 30. PALM STREET LLC 0.08% 0.17% 0.4% 1 .31 :GRAZIANO 0.02% 0.02% h0:1°l 1 TOTALS 2.70% 1 2.30% 3.30% TOTALS 1 12.631 1 15.26 1 12.35% 1 1 EXHIBIT L PAGE`OF Organizational and Funding Recommendations for Inclusion in the 2007 Strategic Business Plan Background r This memo includes background analysis and recommendations for reorganizing the Downtown Association as a 501(c)(6) nonprofit organization. It is proposed that this new organization contract annually with the City to manage BID assessment revenues in accordance with Council directives. An increase in BID assessment revenues to better keep t up with members' demands for BID services would also be a goal of the new organization. When the Association's first Strategic Business Plan was compiled in 2001, the recommendations included growing the organization to meet members' increasing needs along with becoming more visibly involved in policies and decisions that affect Downtown. This has had the effect of increasing the Downtown Association's visibility and sophistication. It has also resulted in frustration by the Association with the constraints of being part of the City governmental structure due to its status as an advisory body to the City Council As such, the Downtown Association is subject to the State of California's prohibition against ' taking positions and using public resources on political activities. The Association has found instances where it is conflicted because it cannot represent its members' focused concerns due to its status as a City Council advisory body. This inability to engage in such activities necessitates inclusion of recommendations that resolve the quandary in which the Downtown Association finds itself. Both the City and the Downtown Association agree it's time to restructure their relationship in a way that maintains the goals and objectives of supporting the Downtown but allows the Downtown Association to operate as a more ' autonomous agency on behalf of its members. ' While the Downtown Association enjoys many benefits of being an arm of the City,the Downtown Association must comply with personnel,purchasing, contracting,and lobbying requirements of any governmental body.This is something that many other downtown associations, established as independent nonprofit organizations, are not required to do. Thirty-two years after its formation, the current BID funding structure has outgrown its ability to service Downtown into the future.Thirty percent of businesses pay the minimum fee of only$25 per year and 50 percent pay less than$100 per year.There is no automatic cost of living adjustment in the minimum fee. Auditing BID payments and collecting delinquent r payments is time consuming and costly. BID revenues have not kept pace with the rising costs of providing services.This puts increased pressure on the Downtown Association to i hold time-consuming fundraisers and special events that must raise an additional$314,300 per r year.The Association,in order to continue to provide the level of service and projects desired by our members, must have more funding and more reliable funding sources. One of the larger tasks performed as part of the Strategic Plan update was a feasibility study ! whereby the consultants looked closely at whether a property based improvement district 1 1 EXHIBIT 1" PAGE �-pF 1 1 1 (PBID) would (a) be more beneficial for the Downtown Association that its current BID 1 structure and (b) if property owners were willing to participate in the concept. 1 A property based business improvement district (PBID) has the potential to generate greater 1 revenue than the current BID because property owners are often more willing than 1 merchants to invest in maintenance and long-term improvements that will positively impact their properties. Since with a PBID,the County collects fees as a part of property tax 1 payments based on building size as opposed to declared annual sales, there are no issues of 1 delinquencies or underpayment. A PBID may also result in more member involvement. A 1 new,PBID funded Downtown Association would have local property owners as its members. 1 1 Another consideration by the consultants was whether or not the size of the district should 1 and could be enlarged to include those businesses in the areas near Downtown that either did not exist when the district was formed or who may now benefit from inclusion in the 1 district. Survey data revealed mixed responses and no clear desire to change the district's 1 boundaries. 1 Ultimately, the realization that property owners were not unhappy enough with the current 1 BID system to support the PBID concept proved the PBID less than satisfactory and the 1 idea was put aside for the time being. Meanwhile, during research of the existing BID law 1 (1965 version) it was learned that within the law were provisions for expanding boundaries 1 and increasing fees by a vote of the Council without the need for a vote of the membership, subject to a protest from businesses paying a majority of the fees. 1 1 Looking at all the models and the need for increased funding and autonomy,reforming as a 1 501(c) 6 seems to be the most logical, seamless, and productive choice. This model will enable the Downtown Association to engage in political activities provided it does not 1 constitute the Downtown Association's primary activity. Many downtown associations and 1 Main Street communities have adopted this model across the nation. 1 It may be helpful to review the forming legislation, Parking and Business Improvement Law 1 of 1965, sec 36003: 1 Discretion of council as to use of revenue; advisory boards or commissions 1 The city council shall have sole discretion as to how the revenue derived from the tax is to be used within the scope of the purposes (stated below);however the City 1 Council may appoint existing advisory boards or commissions to make f recommendations as to its use or the council may create a new advisory board or commission for the purpose. Sec 36000 Purpose of part The purpose of this part is to authorize cities to impose a tax on businesses within a ' parking and improvement area which is in addition to the general business license tax,if any,in the city,and to use such proceeds for the following purposes: (a) The acquisition, construction or maintenance of parking facilities for the benefit of the area ' (b) Decoration of any public place in the area EXHIBITL PAGE Z?OF (c) Promotion of public events that are to take place on or in public places in the area r (d) Furnishing of music in any public place in the area (e) The general promotion of retail trade activities in the area. Recommendation 1: Establish Non-Profit Status The Downtown Association should enter into an annual contract with the City to appoint the newly formed 501 (c) 6 non profit Downtown Association to administer the Downtown BID assessment revenues for programs and purposes in accordance with BID law. Supporting documentation regarding the benefit of this particular model over others is " shown in attachment"I" and is recommended by the City Attorney.The program would be similar to what is currently in place except on a contractual basis. The current practice of developing a two-year work plan and budget would continue, the main difference being the BID funds would stand apart from the overall budget and be applied strictly to those uses approved and reviewed annually by Council for adequacy of performance. Regular reporting would ensure the proper application of the funds, regular monitoring would be necessary to determine if the projected BID revenues reflect budgetary assumptions. Moreover,this change in structure would necessitate that some services currently provided ' by the City to the Downtown Association would be reassessed addressing continuation of services, suspension of services, negotiation of services. Determination of future City r support will be made after a thorough analysis of services currently provided to the Downtown Association and the Association's short-term need for City support. An , agreement for provision of services will be negotiated prior to the change in structure. 1 Finally, the Downtown Association should begin the process immediately of procuring its , 501 (c) 6 status and work with the City to identify the end-of-fiscal-pear 2007-08 timeline as the official"changeover" period with the contract stipulating 2008-09 BID revenues be applied to the existing two-year work program to enable existing programs to continue. Modification to the existing ordinance would reflect these changes. Note_ Regarding internal restructuring for the Downtown Association,it is recommended that all systems currently operating including staffing, existing leases, equipment and - inventory, agreements,work plans, etc.would remain in place. The Downtown Association will employ or contract with a bookkeeper and accountant to develop accounting for BID and non-BID funds,payroll,taxes and financial management including accounts payable, accounts receivable,bank reconciliations and profit and loss statements. A bank account for non-bid funds will be established and legal counsel may also be retained. Recommendation 2: Evaluate BID Fee Increase Another component of moving forward with restructuring is the necessity of increasing ' membership fees that have not changed since the organization was founded in 1975 in order to meet the costs of doing the Association's business. In the appendix is a breakdown of current BID fees and how they are applied within the context of a"blended budget." ' t 1 �, 1 EXH161T_,L'PAGE OF 1 1 (Exhibit F) The organization must bring fees into line with cost of delivering services after 1 33 years of no fee rate increases. Attendees of a 2006 Town Hall meeting indicated support among the majority that the current minimum fee of$25 (new members) and$25 for 1 renewals under $100,000 gross receipts is proving to soon be inadequate to continue to 1 provide the level of services currently enjoyed. 1 Because current fee structures are assessed as a percentage based on gross receipts,it is 1 recommended only to increase the base level fees: first year fee and under-$100,000/annual 1 receipts fees. 1 As the organization proceeds with restructuring and enters into a contract with the City to 1 manage the BID revenues, this presents an opportunity to address the issue simultaneously. 1 The Downtown Association should perform an analysis of its programs to determine an 1 acceptable,reasonable and sufficient increase. This recommendation will be presented to 1 the membership and proposed to Council. As noted above, according to existing BID law, the Council has the authority to adjust BID fees and boundaries, though no boundary 1 changes are being recommended at this time. 1 1 1 1 1 1 1 1 I 1 1 1 1 1 I 1 1 1 EXHIBIT,,.L- PAGE OFL _ E N U "w E c y O nc C C C E N N E E y N > N C C N O ., Q Z C co o i O� N 0 1 Q / N G 'C O d L E / O N a� v C i O 0 ON tD I i EBIXHI "PAGE _.� OF g � . TQ COUNCIL MEMORANDUM I � s uuty.. � nay• F r 1 DATE: August 29—, 26ffl�— Q(U I In I 0 1 1 1 TO: Council FROM: Ken Hampian 1 I SUBJECT: City Support of Downtown San Luis Obispo 1 1 As indicated in the attached listing, several years ago the City and the Downtown.Association (DA) 1 agreed to review the services we provide to the DA on an annual basis, coinciding with the budget. 1 process. While we have not always done so annually, we are following the practice at this time to assure the DA that, even with our budget difficulties, the City intends to continue its high level of service to the DA and the downtown in general. Doing so is also especially important in light of 1 recent questions that have been asked, and concerns that have been expressed, by some members of 1 the DA regarding the adequacy of City support for the DA and the downtown. 1 In addition to direct services to the DA and downtown found in Attachment 1, the City has many 1 policies and practices that support and protect the downtown. These are provided as Attachment 2. 1 1 We have discussed this update with the DA Executive Director, and will be sharing this information with the DA Board tomorrow, so that its members will have an accurate understanding of the City's 1 high level of support and its commitment of services and policies to enhance and protect the 1 downtown. 1 In short, for many years City government has viewed the downtown as the "heart and soul" of the 1 community, and accordingly, the level of services and policy protection provided the downtown is far greater than that of any other area in the City. 1 Attachments 1. Services for DA and Downtown Area 2. Downtown Policies 1 1 Cc: Department Heads Deborah Cash 1 Shelly Stanwyck 1 Betsy Kiser 1 1 I 1 EXH)BIT G_ PAGE ,.--- OF . Attachment l Services the City of San Luis Obispo Provides to the Downtown Association and Downtown Area (June 2004) The City of San Luis Obispo(City) presently provides to the San Luis Obispo Downtown Association (DA) and the downtown area a wide range of services. This document is intended to provide an overview of those services and the discussion has been divided into four categories: 1. Ongoing Services a. To the Downtown Association (DA) b. To the Downtown Area ' 2. Fee Policies for the DA 3. Special Project Assistance for the DA 4. Special Event Assistance for the DA All of the services listed in the document are provided free-of-charge by the City to the DA or the downtown area, unless otherwise noted. Services not included in this document are assumed to be the responsibility of the DA(i.e. telephone charges, hanging holiday garlands, etc.) This document is intended to reflect the mutual understanding of existing service levels and respective responsibilities between the City and the DA. The goal is to avoid confusion or misunderstanding from arising during the year while carrying out numerous activities in the downtown area. The listing of services is provided for informational purposes only and should not be viewed as a binding commitment. Several of the service levels listed are required to be set or modified by the City Council (e.g. street sweeping), and thus may be subject to change, if financial or other circumstances warrant. The DA will be notified well in advance of any proposed changes to the services provided in order to obtain DA input prior to receiving final approval. 1 To keep this document up-to-date and accurate, the City and the DA will review the listing of provided services annually (in the spring of each year to coincide with the budget process) and make appropriate changes at that time. 1. ONGOING SERVICES , A. To the Downtown Association • Special Liaisons -The City Council designates liaisons to the DA, who attend 1 board meetings and other meetings, as appropriate. City Administration designates a staff liaison(presently the Principle Administrative Analyst), who provides day-to-day ombudsman support to the DA Executive Director relative to City departments and service issues. The Economic Development Manager r provides support to the DA Executive Director relative to the Strategic Plan and I :. . Economia Activities Subcommittee. • Ouarterly Meetings -The CAO, Economic Development Manager and Principal Administrative Analyst hold quarterly breakfasts or lunches with the i 1 ' 1 F HUT±'PAGE .7-;3-. OF , Attachment 1 DA Board President, Executive Director, and possibly other DA staff, to discuss issues of mutual concern. Day-to-Day Operations Support- The City provides the DA with ongoing full- service support from Human Resources, Finance, (payroll, accounts payable, revenue management, collections, investments, general ledger and financial ' reporting), Attorney, and Administration. B. To the Downtown Area 1 Street Sweeping-The City provides street sweeping services in the downtown ' seven days per week, compared to once a month on arterials and residential areas. • Trash and Recycling- The City's solid waste franchisee provides refuse and ' recycling pickup in the downtown on a daily basis, as opposed to other retail areas, which are responsible for contracting on their own schedule. • Sidewalk and Trash Can Cleaning-The City provides steam cleaning to the ' sidewalks and trashcans in the downtown on a quarterly basis. • Tree Trimming Services - City provides a high level of tree trimming services to the Downtown. ' • Bicycle Racks - The City maintains and installs bicycle racks throughout the downtown. • Graffiti-The City provides ongoing graffiti clean up. • Fire Inspections- City provides fire inspections of businesses once a month. • Support During Construction -In addition to direct promotional support to the DA during City construction projects, the City also provides enhanced staff ' liaison to downtown businesses and forbids construction during the holiday season. • Police - The City provides a large variety of police services directed toward the downtown. ➢ Four sworn personnel committed to the downtown area full time. ➢ A satellite office provided on Marsh Street. ➢ Special event planning. ➢ Attendance at Downtown Association meetings. ➢ A majority of time spent Wednesday through Saturday providing police services in response to nighttime activity in the downtown. (20% of the total number of police calls handled in 2001 were for service in the downtown core.) ➢ Directed enforcement and outreach pertaining to homeless 1 I I Et XHIBITt� PA.GE .*` OF � Attachment 1 ; individuals in downtown and Mission Plaza. ➢ Education programs for downtown bar/restaurant employees. ➢ Attendance at Bar Owners Association meetings. 2. FEE POLICIES FOR THE DA • Reduced Fees for Suecial Events -All City services and fees charged to the DA for special events are assessed and paid at 50% of the billable rate. • Reduced Vendor Fees -Vendor Fees for DA special events are assessed at 50% of the billable rate (5%of each vendor's gross sales at event or $10.00 per vendor booth at event). The DA pays vendor fees for all DA sponsored special events except Concerts in the Plaza, Taste of San Luis, and Holiday Parade. • Payments- The City provides the DA with a detailed invoice of assessed charges after the completion of an activity (i.e. banners, concerts) or a special event. • Reduced Banner Fees - The City services for hanging and removing downtown banners is charged to the DA at the 50%rate. Fees are assessed only when City staff provides this service. No fees are assessed for banners hung by the DA or private entity. • Free Facility Use-The City provides free usage of City facilities for DA sponsored events. l 3. SPECIAL ARRANGEMENTS OR PROJECT ASSISTANCE FOR THE DA • Free Downtown Bench Installation and Maintenance- The City provides installation and maintenance of all decorative benches in the downtown. • Construction Promotional Sunuort-The City provides direct financial assistance to the DA to be used for promotional support when City construction projects cause disruption to the downtown. • Shared Access to Metal Chairs- The City and DA.mutually own 150 metal chairs stored in.the City's Murray Adobe, available for use at City and/or DA sponsored event only. The City and DA jointly approve all other chair uses. i • Installation of Flags - The City allows the DA to hang flags from City-owned ! street light poles. • Free Storage-The City provides free space for a storage container in the lot 1 adjacent to the Corporation Yard. ! 4. SPECIAL EVENT ASSISTANCE FOR THE DA 1 1 1 I FXHiBJT 5� Attachment 1 1 Thursday Night Activities • Enhanced Parking Structure Security- The City provides a security guard at each parking structure until 11:00pm during Thursday Night Activities. 1 • Enhanced Police Support - The City deploys 2-8 patrol officers on bicycles and on foot(an average of 4) downtown each Thursday night to monitor event activities. Shortly, they will be joined by Cal Poly bicycle officers. (The number of officers deployed is dependent on time of year and crowd size.) • Enhanced Parks and Recreation Department Support-The City's Parks and Recreation Department coordinates and provides staff support for 3 special events each year during Thursday Night Activities(Snow Night,Easter Egg Hunt, and Halloween Hoopla). • Barricade Setup and Removal- The City provides barricade setup and removal each Thursday night. The DA is assessed a fee established by the City for this service including barricade replacement costs. Vehicle Towing - City police traffic officers arrange for vehicles within the Farmers Market area to be towed prior to the event. I • Free Portable Restrooms Usage -The City provides the transport and setup of 2 trailer units with 8 portable restrooms for use downtown on Thursday night. • Enhanced Fire Support-The City provides periodic safety walk-through on Thursday nights at 6:30pm to ensure fire codes are maintained. An engine and ' crew, as well as paramedic unit, are in attendance at every Farmer's Market. • Free Annual Barbepue Area Cleanup-The City provides cleaning of downtown barbeque sites on an annual basis. If a site needs additional cleaning during the year, the vendor will be charged for the cost. Holiday Season Activities 1 • Trolley Usage - The City provides the Trolley for transporting City officials only in the Holiday Parade. The DA provides decorations and staff to decorate the Trolley for the holiday season. 1 1 • Free Mission Plaza Christmas Tree Installation - The City provides 1 installation of the Christmas tree (with lights) in the Mission Plaza, with assistance provided by DA volunteers. 1 1 • Holiday Parade Coordination - The City provides special event parade coordination, facility use of Mission Plaza, barricade setup and removal, and transport and setup of 2 trailer units with 8 portable restrooms, I 1 I Attachment 1 • Police Support- City provides police support for parade and monitor training. • Fire Inspections -City provides fire inspections of holiday parade floats. • Free Santa's House Storage-The City,provides storage for the Santa House adjacent to the Corporation Yard. The DA is responsible for transporting the Santa House to the Mission Plaza and back to the storage area. The DA is responsible for all repairs required. i • Meter Bagging- City provides meter bagging for Christmas sales days. Taste of San Luis • Extended Marsh Street Parking Structure Elevator Hours - The City provides the elevator service until 10:30pm on the day of the event. • Free Mission Plaza Preparation-The City provides a routine hosing down of the Mission Plaza prior to the event. The DA will be charged for any additional scrubbing, if requested. • Support of Event-Council members and staff purchase tickets (usual two ! tables' worth) and attend the Taste of San Luis in support of the event. Concerts in the Plaza • Free Use of Mission Plaza-The City provides facility use of the Mission Plaza and the Murray Adobe for storage of chairs, fencing, and other event related items. • Support Staff- The DA provides support staff at each concert event. City support staff provided (if requested by the DA) for each concert event will be charged to the DA at the current billable rate. L 1 I 1 1 EXHOT C RAGE_ OF 1 Attachment 2 / Policies and Practices Beneficial to the Downtown 1 1 General Plan Policies 1 1 • Center of the City-LU 4.1 discusses downtown's role as the cultural, social and political 1 center of the City, as well as home for those who live in its historic neighborhoods. Further, the General Plan encourages entertainment and cultural facilities in the Downtown(LU 4.3) 1 1 • Parking- LU 4.10 requires a diversity of parking opportunities in the Downtown with major 1 increases in supply being in the form of structures outside the commercial core. 1 • Creek --LU 4.11 describes the protection and restoration of San Luis Obispo Creek in the 1 Downtown. 1 • Historical Preservation --LU 4.12 focuses on the preservation and restoration of 1 architecturally and historically significant buildings in the Downtown and requires new 1 buildings to be compatible. 1 1 • Pedestrian Orientation -.Several General Plan policies encourage Downtown to be pedestrian oriented, compact and the City's most intensely developed area(LU Sections 4.5, 1 4.15, 4.16.1). 1 1 • Design Principles- There are many General Plan policies relating to the design of Downtown which encourage active uses on the street level, encourage residential uses above 1 the street level, encourage continuous store frontage, taller buildings in the mid-block, and 1 appealing details at the street level to be enjoyed by pedestrians on the sidewalks (LU 4.16.1 ' - 4.16.6). • Government Offices -Both City and County government offices are encouraged to 1 continue to be in the Downtown(LU 4.17, 5.14 and 5.3). 1 • Cultural Facilities-The City is required to help provide facilities for a library and for arts and sciences which meet broad community needs(LU 5.2). Development Standards Applicable To Downtown Only ' • Parking District- The Downtown has a parking district that allows business and/or property owners to pay fees in lieu of providing on-site parking. • Parking Requirements - Parking ratios in the Downtown (e.g. the number of required ' spaces per square foot of floor area and use) are one half of that required in other commercial areas. Parkine Structures -The in-lieu parking fees charged do not cover the costs of building structured parking and the City subsidizes the remainder of the cost. )EXHIBIT A PACE� �= Attachment 2 ' • Residential Density -The Downtown is allowed the greatest residential density in the City. ' • Development of Property- There are no property line setbacks required in the Downtown (except for creeks) and 100% lot coverage is allowed. • Building Height- The height of buildings in the Downtown is allowed to the maximum in the City of 50 feet. • Sidewalk Dining - Sidewalk dining is allowed in the Downtown with private use of the City-right-of-way for a nominal fee. • San Luis Creek-City improvement of San Luis Creek with Mission Plaza and Creekwalk as project amenities and dual access to retail establishments and restaurant spaces. r, Other Policies Beneficial to the Downtown Public Works Proiects in Downtown - For the City's most recent Public Works construction projects in the downtown extra levels of staff support and financial support have been provided to provide the highest levels of communication and service to the businesses, property owners, customers and community members who utilize downtown. The most recent example of this is the efforts by Public Works, Utilities and Administration during the Century Project in conjunction with the allocation of funds for a marketing campaign during the project by the Downtown Association. ' • Construction -Construction is prohibited in the downtown during the holiday shopping season, from Thanksgiving through New Year's. • Public Art-The majority of the City's public art has been placed in the downtown. • Cultural Activities-To help downtown serve as the City's cultural center, the City provides rent at$1 per year to the Little Theatre, Children's Museum and Carnegie Library, and at a very reduced rate to the Arts Center. EXHIBIT. PAGE OF I As ME11 ORAn6um i P DATE: July 17, 2007 .TO: Deborah Cash, Downtown Association Administrator FROM: Kim Murry, Deputy Director of Community Development 781-7274 SUBJECT: Downtown Association Strategic Plan Deborah— ' Thanks for the opportunity to review the draft plan. I have included copies of the pages with ' notations as to General PIan policies which support the various programs. Attached to this memo is also a list of those policies with the actual verbiage from the General Plan. I'm enclosing a copy of the Community Design Guidelines — as I recall from our conversation, ' you indicated interest in obtaining a copy to update your very old copy. Finally, I've asked Doug Davidson and Tim Girvin for information regarding development in the downtown over the last 5 years — both approved and constructed — as well as information regarding the Irish ITills development. I will forward that information on to you as soon as I ' have received answers. Please Iet me know if you have any questions after reviewing the information. Again, thank you for the opportunity to review the draft plan. 1 1 I 1 1 1 1 I 1 1 1 I 1 M Assoc Stnueglc PZ=drgJt Rev(ew7-17-7 I I EXHIBIT PAGE`OF - 2 Legal Issues r Nonprofit Tax Status The IRS continues to closely scrutinize applications for Main Street organizations for tax-exempt status under section 501(c)(3). As a result, many Main Street organizations have chosen to forego the rigors of the 501(c)(3) application experience and to apply for a 501(c)(4) (civic leagues and neighborhood associations) or 501(c)(6) (business leagues and chambers of commerce) designation instead. Superficially, 501(c)(6) status may appear to be more compatible with the economic goals of a local Main Street program than 501(c)(3) designation. However, (c)(6)allows only businesses— r not individuals or foundations—to deduct contributions (as a business expense)to the nonprofit. This restriction, however, is inappropriate for broad-based downtown revitalization and management programs that seek to involve a broad spectrum of community interests and to improve the quality of life for the entire community. For this reason, (c)(6) status creates and implies an inappropriate limitation which fundamentally excludes a basic part of the intent of the Main Street program and other broad-based, comprehensive downtown management programs. Tax status A nonprofit downtown management organization's federal tax status has several implications, ' from the ability of donors to make tax-deductible contributions to the types of activities the organization can and cannot undertake. Nonprofit corporations are not automatically exempt from paying federal and state income taxes, state sales tax, utility taxes, and Social Security tax. Instead,nonprofits must apply for federal, state, and local tax exemptions from the applicable authorities. The organization's federal tax status typically affects its ability to be exempted from state and other taxes. , 501(c)(3) Tax-exempt Charitable and Educational Organizations 501(c)(3) classifications are often sought by downtown programs when they are spun off from city departments. There are eight subcategories in the (c)(3) classification: 1. Religious 2. Charitable Legal Issues 1 1 1 EXHIBIT L PAGE � C; D 1 3 1 3. Scientific 1 4. Testing for public safety 1 5. Literary 1 6. Educational 7. Groups that foster national or international amateur sports competition 1 8. Groups that prevent cruelty to children or animals 1 1 Groups that qualify for(c)(3) status must meet a series of tests to maintain tax-exempt status: 1 ■ They must be organized and operated exclusively for charitable and educational purposes. 1 1 ■ They must not engage in business activities which would illegally benefit from federal 1 income tax exemption. 1 ■ No private benefits can inure to private individuals or insiders, including contributors or 1 board members since the organization was established for "public" benefit. 1 1 ■ They may not lobby for, or support, a specific candidate. 1 1 ■ No substantial part of their activities may consist of efforts to influence legislation. 1 ® To qualify as a public charity and not a private foundation, they must meet the "public 1 support test" in their financial support (no more than 33 and 1/3 percent of any year's contributions can be from donors who exceed the equivalent of 2 percent of the past four 1 years' gross revenues). In addition, Section 501(c)(3) organizations must file an annual Form 990 with the Internal () Revenue Service reporting total contributions of money,real property,negotiable securities, and other revenues. Organizations may lose their exempt status if they deviate from their "exempt purpose," engage in excessive lobbying activities, support a particular candidate for public office, 1 or operate to provide a private benefit. 1 501(c)(4) Community Welfare Organizations 1 ( Section 501(c)(4) classifications include civic leagues and social welfare agencies. Section 501(c)(4) organizations are exempt from federal income tax, but is not eligible to receive tax deductible charitable contributions. I In pursuing the social welfare category, downtown managers should take care that the program does not evolve into a development organization. It must not ostensibly operate to promote Legal Issues I I 1 I 1 EXHIBIT PAGE? 4 benefit to its members, rather than the community as a whole, or be primarily engaged in unrelated business with the general public or commercial activity. 501(c)(6) Business Leagues, Chambers of Commerce,Real Estate Boards Section 501(c)(6) organizations are devoted to improvement of business conditions of one or more lines of business, or in a particular geographic area, and may not be engaged in the performance of particular services for individual members. r Programs operating under(c)(6) cannot remain exempt if financial aid(such as low-interest loans or grants) is made available to members, since the Internal Revenue Service would view this situation as committing part of the organization's exempt net earnings to inure benefit to private individuals. , Section 501(c)(6) organizations may be subject to unrelated business income tax if they engage 1 on a regular basis in revenue-generating business with the public that is unrelated to the organization's exempt purpose. 1 While 501(c)(3) exempt status is useful in seeking charitable contributions (which is deductible) and in establishing a clearly community-oriented purpose, exemption has limitations as well. Maintaining the public support test (particularly when larger contributions of money or property become possible) and detailed annual reporting requirements may make Section 501(c)(4) or 501(c)(6) status a more attractive option. 1 When choosing its federal tax classification, a new nonprofit downtown management organi7A on's board should consider all the requirements and restrictions for that status. If the downtown management program's goals are primarily geared towards benefiting downtown 1 businesses, a 501(c)(6) is probably the best choice. 501(c)(6) status enables businesses to take a business expense deduction for their membership dues to the organization, while still allowing the organization to conduct an unlimited amount of lobbying on behalf of its members. 1 Many of the same attributes result from classification under 501(c)(4). Moreover, the Internal Revenue Service scrutinizes these groups—both their initial application for a tax classification and their ongoing activities—less closely, making the 501(c)(4) status relatively easy to obtain. The most closely monitored of all the classifications, 501(c)(3) status,tends to be more difficult to obtain in some instances, and may genuinely not be appropriate for all downtown revitalization organization. Nonetheless, 501(c)(3) status remains the preferred choice for most Main Street programs, for several reasons: l Legal Issues I 1 1 EXHIBITLPAGE tk of 1 - 1 5 1 1. Most foundations make grants available only to public or publicly supported 501(c)(3) 1 organizations. 1 2. Private individuals can deduct contributions made to 501(c)(3) organizations as charitable 1 contributions from their federal income tax. 1 1 3. 501(c)(3) status appropriately reflects the charitable and educational goals of Main Street 1 organizations. 1 A 501(c)(2) organization is basically a holding corporation organized exclusively to hold title to 1 real property, collect income from the property, and turn over the entire income(less expenses) 1 to a 501(c)(3). Some mature downtown management organizations that have acquired property 1 (primarily to prevent demolition or to control development) establish affiliate 501(c)(2) corporations to manage property-related revenues and expenses. 1 1 1 State Sales Tax Exemption 1 Most states levy sales tax on retail sales. Most states allow nonprofit corporations to apply for 1 exemption from paying sales taxes. In order for a nonprofit corporation to take advantage of this 1 exemption, it must provide the seller with a tax exemption number. This number is issued by the 1 state. The state department of revenue can also provide information on what types of retail 1 purchases may be made exempt from taxes for nonprofits; it varies from state to state. Some sellers also ask for the organizations federal tax identification number in order to verify the 1 organization's federal tax designation. I 1 Many new nonprofit downtown management organizations overlook sales tax exemption. 1 Although the tax savings may not be initially significant, it can be when the organization purchases office equipment or other high-ticket items. I 1 1 Utility Tax Exemption 1 Corporations that qualify for federal and state tax exemption may not have to pay taxes on 1 telephone or other utility bills. Again, contact the state department of revenue for information. 1 1 Social Security Exemption 1 FICA taxes are paid jointly by employers and employees. Nonprofit organizations are no longer ( exempts from paying these taxes. 1 1 Legal Issues 1 1 I I I I EXHIBIT PAGE OFF 6 If the downtown management organization hires staff on a contractual,rather than a salaried, basis, the corporation no longer has employees and thus need not contribute to FICA. Independent "contractors" are considered self-employed by the Internal Revenue Service and are personally responsible for meeting federal and state tax requirements. However, the IRS imposes stiff penalties on employers who erroneously classify employees and independent contractors and fail to withhold and pay income and FICA taxes. The nonprofit organization, though, must provide contractors with a Form 1099-MISC if the organization paid them more than $400 during the tax year. ; Lobbying ' Many nonprofit corporations are involved in issues that are shaped or affected by local, state, and federal policies. As downtown management programs mature,their interest and ability to be involved in the development of these policies often increases. A common misconception is that 501(c)(3) corporations cannot participate in lobbying activities at all. While it is true that lobbying cannot be a substantial part of the organization's activities or expenses, 501(c)(3) corporations may spend up to 20 percent of their annual expenditures on activities to influence legislation. This does not include supporting a particular candidate for political office. Most downtown management programs will not need to do nearly this much lobbying and should feel comfortable making phone calls and writing letters in support of issues that affect their missions. If, for any reason, it becomes necessary to become intensively involved in lobbying I activities, the organization should seek legal advice. Liability The cost and availability of liability insurance has become a major concern for many nonprofit organizations. It is the organization's responsibility to protect itself,its staff, and volunteers from financial distress due to a liability suit. The problem has become so significant that some states, such as Iowa, have enacted legislation that limits the liability of the officers, directors, and staff of nonprofit organizations against liability suits except in cases involving gross negligence. Some of the areas in which downtown management organizations may need to consider protecting themselves from liability suits are personal injury,property damage,hiring and firing employees, defamation of character, using copyrighted music,and theft. Legal Issues I 1 1 EXHIBIT � PAGEOFL I Bibliography 1 Brian, Todd. "Hiring Your Second Manager."Main Street News, September 1989, Number 49 1 1 Cook, Johnathon B. "Evaluating the Executive Director." The NonProfit Times, June 1988, Volume 2 Number 3. Flanagan, Joan. The Successful Volunteer Organization. Chicago: Contemporary Books, Inc., 1981 I 1 Hull, Sandra. Partnerships on Main Street," Main Street News, No. 100, May/June 1994. 1 Hummel, Joan. Starting and Running a Nonprofit Organization. Minneapolis: University of 1 Minnesota Press, 1980 I 1 Management Assistance Group, Steering Nonprofits:Advice for Board and Staff, National Trust 1 for Historic Preservation, Information Series No. 54, 1991. 1 Nichols, R. McDuffie. "Choosing A Tax Exempt Status For Your Main Street Program."Main 1 Street News, July 1989,Number 47 1 Noyes, Pat. "Local Governments' Role in Downtown Revitalization: Clearing Up 1 Misconceptions,"Main Street News, No. 45, April 1989. 1 Peil, Karen. Personnel Issues for Preservation Nonprofit Organizations,National Trust for Historic Preservation, Information Series No. 79, 1994. Smith, Kennedy.Main Street Board Members Handbook Washington, DC: National Main Street Center, National Trust for Historic Preservation, 1988. 1 1 Smith, Kennedy. "Director's Column: 501(c)(3)Issues,"Main Street News, No. 87, March 1993. 1 Tremper, Charles and Pam Rypkema. Risk Management and Liability Insurance for Nonprofit 1 Preservation Organizations,National Trust for Historic Preservation, Preservation Information Series No. 1995. I 1 1 (Revised 1/15/00 by Andrea Ferster, Attorney at Law) 1 1 Legal Issues I I 1 1