HomeMy WebLinkAbout07-05-2017 Item 10 - San Luis Obispo Downtown Association Property Based Business Improvement District Feasible Study Grant Meeting Date: 7/5/2017
FROM: Derek Johnson, Community Development Director
Prepared By: Lee Johnson, Economic Development Manager
SUBJECT: SAN LUIS OBISPO DOWNTOWN ASSOCIATION PROPERTY-BASED
BUSINESS IMPROVEMENT DISTRICT FEASIBILITY STUDY GRANT
RECOMMENDATION
1. Approve a grant of up to $75,000 from the City to San Luis Obispo Downtown
Association for a feasibility study regarding the formation of a Property-Based Business
Improvement District; and
2. Authorize the City Attorney to make modifications to the terms and conditions of the
Grant Agreement (Attachment A); and
3. Authorize the City Manager to execute the Grant Agreement.
DISCUSSION
Background
During the 2017-19 Financial Planning process, the City Council identified “Downtown Vitality”
as an “Other Important Objective” for the City. One of the items in the work program for the
other important objective is for the City to provide a grant of up to $70,000 to San Luis Obispo
Downtown Association (DA) to hire a consultant so do a feasibility study for a Property-Based
Business Improvement District (PBID).
Specific objectives of the feasibility study include:
1. Assess the dynamics of downtown San Luis Obispo’s economic, political and planning
environment. Identify significant market changes that have occurred over the past five
years and anticipate those that can be reasonably expected through the next five to ten
years.
2. Determine how Downtown San Luis Obispo and a new PBID should best be positioned
and organized to respond to current challenges and opportunities.
3. Determine program priorities for the PBID (i.e. enhanced maintenance, marketing,
economic development, etc.) and develop a holistic downtown management blueprint to
ensure that new initiatives strengthen and unify overall downtown development,
marketing and management efforts.
4. Engage a variety of downtown stakeholders (i.e. property owners, businesses, residents,
civic leaders, etc.) in a participatory process to evaluate the PBID.
Based on the outcome of the study a phase two may be initiated to create the district. Any unused
grant funding will be returned to the City.
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CONCURRENCE
The Finance Department concurs with the recommended actions.
ENVIRONMENTAL REVIEW
This requested action categorically exempt under Section 15306 of the California Environmental
Quality Act as it consists of information gathering which may lead to potential actions which the
City has not yet approved, adopted, or funded.
FISCAL IMPACT
The $75,000 was approved in the 2017-19 Financial Plan and there is no additional fiscal impact.
ALTERNATIVES
The Council can choose to not fund the grant. This option is not recommended as determining
the feasibility of a PBID is an important step in determining what is required for the long-term
vitality of the downtown area.
Attachments:
a - GRANT AGREEMENT
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1
GRANT AGREEMENT
This Grant Agreement (“Agreement”) is made this ________ 2017 (the Effective Date”), by and
between the City of San Luis Obispo, a municipal corporation and charter city (“City”) and San
Luis Obispo Downtown Association, a 501(c)(6) nonprofit corporation (“DA”).
WHEREAS, DA is a nonprofit organization whose mission is to foster an economically vibrant
downtown area for the City of San Luis Obispo. One of DA’s primary functions is the economic
viability of the downtown and taking an active part in important issues such as business retention
and attraction, clustering, retail space availability, economic forecasting, construction and
development projects. In this regard, the DA and its Economic Activities Committee and staff
closely work with the City and its Economic Development Manager on these important issues; and
WHEREAS, during the 2017-19 Financial Planning process, the City Council identified
“Downtown Vitality” as an “Other Important Objective” for the City and included in its work
program a grant of up to $75,000 to the DA to hire a consultant to prepare a feasibility study for a
Property Based Improvement District (the “Grant”); and
WHEREAS, by this Agreement, City and DA desire to establish the terms and conditions for the
Grant.
NOW THEREFORE, for good and valuable consideration, the parties hereby agree as follows:
1. Recitals. The above recitals are true and correct and are incorporated herein by this
reference.
2. Grant. Subject to the terms and conditions herein, City will provide DA with a sum not to
exceed seventy thousand dollars ($75,000) to be used exclusively for preparation of a
feasibility study as described in Section 3 below.
3. Feasibility Study. DA agrees to retain a qualified consultant to prepare a feasibility study
(the “Study”) for a Property Based Business Improvement District (“PBID”) for the City’s
downtown area. The Study shall do all of the following (the “Objectives”):
a. Assess the dynamics of downtown San Luis Obispo’s economic, political and
planning environment. Identify significant market changes that have occurred over
the past five years and anticipate those that can be reasonably expected through the
next five to ten years;
b. Determine how downtown San Luis Obispo and a new PBID should best be
positioned and organized to respond to current challenges and opportunities; and
c. Determine program priorities for the PBID (i.e. enhanced maintenance, marketing,
economic development, etc.) and develop a holistic downtown management
blueprint to ensure that new initiatives strengthen and unify overall downtown
development, marketing and management efforts.
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In preparing the study, the consultant shall engage a variety of downtown stakeholders (i.e.
property owners, businesses, residents, civic leaders, etc.) in a participatory process to
evaluate the PBID.
4. Procurement of Consultant. DA agrees to solicit proposals from qualified consultants to
prepare the Study. DA shall carefully review any proposals received and shall rank such
proposals based on a combination of factors such as, but not limited to: organizational
narrative documenting the proposer’s understanding of the Objectives and the proposer’s
capacity of the proposer’s ability to perform the required work, the proposer’s
understanding of the City’s downtown and economic issues, firm experience, references,
examples of work, and budget/pricing. Prior to awarding any contract, DA shall provide
the City’s Economic Development Manager with its top proposal and the DA’s evaluation
sheets for any proposals received. Within ten days of receipt, City’s Economic
Development Manager shall either consent or reject DA’s top proposer. If the City’s
Economic Development Manager rejects the proposal, the parties shall meet and review
proposals received and shall either agree to: solicit more proposals, select one of the
proposals received or terminate this Agreement.
5. Participation by City. At all times during the term of this Agreement, DA shall keep City
actively engaged and informed of the procurement of a consultant, the development of the
Study, including the ability to participate in any meetings and stakeholder outreach events.
6. Payments. DA shall submit regular invoices to City which shall include a detailing of the
number of hours the Consultant spent on each task. City shall make reimburse DA up to
the amount set forth in Section 1 above, in accordance with City’s normal payment
procedures.
7. Ownership of Documents. All documents, plans, renderings, charts, designs, drafts,
surveys and other documents which is originally developed by the consultant ultimately
retained by the DA shall become the joint property of City and DA.
8. Term and Termination. This Agreement shall become effective on the Effective Date and
shall remain in effect until completion of the Plan or unless earlier terminated as provided
herein. City and DA shall have the right to terminate this Agreement without cause upon
thirty days written notice. City and DA shall also have the right to immediately terminate
this Agreement upon breach provided the non-breaching party provides the breaching party
with notice of the breach and a reasonable opportunity to cure. In the event of termination,
DA shall deliver copies of all programs, drawings, surveys, drafts, plans, work in progress
and other documents related to the Plan to the City within five (5) days of the notice of
termination. In the event of such termination, DA shall be reimbursed for any outstanding
invoices it received up to the point of termination.
9. Indemnity. DA shall, to the extent permitted by law, investigate, defend, indemnify and
hold harmless the City, its officers, employees and agents from and against any and all loss,
damage, liability, claims, demands, detriments, costs, charges and expenses (including
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reasonable attorney fees) and causes of action of whatsoever character which the City may
incur, sustain or be subjected to on account of loss or damage to property or loss of use
thereof, or for bodily injury to or death of any persons (including but not limited to
property, employees, subcontractors, agents and invitees of each party hereto) arising out
of or in any way connected with DA’s performance of the work to be performed under this
Agreement.
10. Independent Contractor. It is mutually understood and agreed that DA, including any and
all of DA's officers, agents, and employees, will at all times be acting and performing as
an independent contractor and shall act in an independent capacity and not as an officer,
agent, servant, employee, joint venture, partner, or associate of City. Furthermore, except
for requirements specifically stated in this Agreement, City shall not have the right to
control, supervise or direct the manner or method by which DA shall perform its work
under to this Agreement.
11. Non-assignment. No party shall assign, transfer, or subcontract this Agreement, nor their
rights or duties under this Agreement, without the prior express, written consent of the
other parties.
12. Notice. The persons and their addresses having authority to give and receive notices under
this Agreement are as follows:
If to City:
City of San Luis Obispo
Attn: Economic Development Manager
990 Palm Street
San Luis Obispo, CA 93401
If to DA:
San Luis Obispo Downtown Association
Attn: Dominc Tartaglia, Executive Director
1108 Garden Street, Ste. 210
San Luis Obispo, CA 93401
Any and all notices between City and DA provided for or permitted under this Agreement
or by law shall be in writing and shall be deemed duly served when personally delivered
to the parties, or in lieu of such personal service, when deposited in the United States mail,
postage prepaid, addressed to such parties.
13. Entire Agreement. This Agreement constitutes the entire Agreement between City and DA
with respect to the subject matter hereof and supersedes all previous negotiations,
proposals, commitments, writings, advertisements, publications, and understandings of any
nature whatsoever unless expressly included in this Agreement.
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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of
the day and year first hereinabove written.
City of San Luis Obispo
______________________________
Katie Lichtig, City Manager
San Luis Obispo Downtown Association
________________________________
Dominic Tartaglia, Executive Director
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