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Home My WebLink About07-16-2019 Item 15 - PBID Withdrawal Department Name: Administration Cost Center: 1004 For Agenda of: July 16, 2019 Placement: Business Estimated Time: 60 minutes FROM: Greg Hermann, Deputy City Manager Prepared By: Charlene Rosales, Economic Development Manager SUBJECT: WITHDRAWAL OF PROPERTY BASED IMPROVEMENT DISTRICT PETITION BY DOWNTOWN SLO RECOMMENDATION Receive and file the withdrawal of the Property Based Improvement District petition by Downtown SLO. DISCUSSION Downtown Vitality is a Major City Goal in the 2019-2021 Financial Plan and was an Other Important Objective in the 2017-19 Financial Plan. As a part of the development of the 2017-19 Financial Plan, Downtown SLO (DSLO) requested and received funding to explore the feasibility of creating a Property Based Improvement District (PBID) to enhance services, cleanliness, and safety in the downtown. A PBID may be establishment pursuant to the state law, the “Property and Business Improvement District Law of 1994”, and is a flexible financing tool for creating private-sector, self-governed management districts that provide ambassador programs, maintenance services and beautification programs above and beyond the baseline services currently provided by cities. DLSO developed the PBID proposal through a coalition of property and business owners, as a proposed benefit assessment district designed to improve and convey special benefits to properties within the central business district of downtown San Luis Obispo. DSLO’s PBID Steering Committee developed a Boundary Map and Management District Plan to guide those efforts. Written petitions were distributed to property owners of record in May 2019, along with a Management District Plan summary describing the district boundary, assessment, and services of the PBID. On July 1, 2019, DSLO delivered a memo to the City indicating support from more than 50% of the property owners, which is the threshold required by law to initiate a PBID. Those results were independently verified by the City Clerk. In total, 38 petitions in support of the district formation were submitted representing 62 parcels, which represent 52.74% of the total proposed assessments. Those petitions are on file with the City Clerk. Packet Pg. 241 Item 15 On July 9, 2019, the City received notification (Attachment A) from DSLO withdrawing the petition for the PBID. As outlined in the notification, while Downtown SLO received support for the PBID there was a desire for greater understanding and support across their membership, and the community at large, about the PBID assessment and its potential formation. This withdrawal will cease all efforts to form a PBID. Previous Council Action On March 19, 2019, the City Council (3-0, Council Members Christianson and Gomez recused) received the report on the feasibility of forming a PBID for downtown and authorized the City Manager to participate in the petition and ballot process in support of the formation on the City’s behalf. Policy Context 1. Council adopted “Downtown Vitality” and “Fiscal Sustainability and Responsibility” as Major City Goals for 2019-21 (February 4, 2019) including a work program item to support the implementation of a PBID. 2. During the 2017-19 Financial Plan development process, the City Council received a request from DSLO for funding for a feasibility study for a PBID. The Council identified “Downtown Vitality” as an “Other Important Objective” and included in its work program a grant of up to $75,000 for DSLO to hire a consultant to complete this work. Public Engagement DSLO has conducted community awareness and engagement for this effort through direct outreach to property owners and business operators, stakeholder meetings, a field trip to two other PBIDs in like communities, a survey of members within the existing downtown business improvement district and three public forums. DSLO has continuously engaged its Steering Committee, its members on other DSLO committees and its board of directors on the potential PBID formation throughout the past two years. As a result of the launch of the petitioning process, DSLO staff has been conducting presentations with local community service groups and business organizations and corresponded and/or taken in-person meetings with individual residential and commercial property owners. Upon hearing input from residential property owners, several changes were made to the proposed boundary and assessment model for single family residential and nonprofit property owners. As referenced in Attachment A, continued engagement during the petition process with the public and businesses within the existing district led the DSLO Board of Directors to conclude that additional support beyond the required threshold was important for the overall success of the program and that the petition should be withdrawn. CONCURRENCES This recommendation has the concurrence of the Administration Department. ENVIRONEMENTAL REVIEW Packet Pg. 242 Item 15 Withdrawal of the PBID petition does not constitute a “Project” under the California Environmental Quality Act (CEQA) Guidelines Sec. 15278. FISCAL IMPACTS Budgeted: Yes Budget Year: 2019-20 Funding Identified: N/A Fiscal Analysis: Funding Sources Total Budget Available Current Funding Request Annual Ongoing Cost General Fund $62,233 $0 $0 Fees Other (Parking Enterprise Fund): $24,000 $0 $0 Total $86,233 $0 $0 Given the withdrawal of the PBID there is no current funding request or annual ongoing cost. The City will explore options to repurpose the money allocated toward this effort to continued downtown maintenance and support of other Downtown Vitality Major City Goal work program tasks. Attachments: a - PBID Memo to Council - July 9 Packet Pg. 243 Item 15 Downtown SLO 1135 Chorro Street | San Luis Obispo, CA 93401 | Phone: (805) 541-0286 | Fax: (805) 781-2647 Reachus@DowntownSLO.com | DowntownSLO.com MEMO – July 9, 2019 To: San Luis Obispo City Council Re: Proposed Property-Based Business Improvement District, July 16 City Council Meeting From: Bettina Swigger, CEO, Downtown SLO As of July 9, Downtown SLO has collected the requisite number of petitions necessary to legally move forward to request that the San Luis Obispo City Council move forward with an election to create a new Property Based Improvement District (PBID). However, the Board of Directors of Downtown SLO voted today to withdraw from the next steps towards formation of this new district. While PBIDs have been successfully implemented in more than 100 cities across the state, and more than 1,000 exist in North America, questions have surfaced in our community and this issue has become divisive. Our goal as an organization has always been and must remain to present a unified voice for the businesses in the downtown. Through our extensive outreach process, we gathered strong support for the formation of a PBID, but we want to ensure that our broader membership and the community at large have a greater understanding of the value of the PBID assessment and the positive impacts. As downtown continues to evolve, with a healthy mix of longtime and new businesses, and more opportunities for residents and visitors to enjoy local businesses, our primary directive must be to continue to foster an economically vibrant downtown. Through thoughtful conversation with our membership, we will be refocusing our energy to engage with our business community on a shared vision for our downtown. In the meantime, we will continue to provide marketing and advocacy on behalf of our members, events and programs to bring the community together such as Farmers’ Market, Concerts in the Plaza, Sip N’ Saunter and our Business Education Series, among others. We will be exploring other ways in which to expand our existing clean and safe program. We invite interested members of the community to join our committees to volunteer and to move forward. Thank you for your continued support and please contact me if you have any questions. Sincerely, Bettina Swigger CEO, Downtown SLO Packet Pg. 244 Item 15 SLO CITY CLERK PROOF OF PUBLICATION (2015.5 C.C.P.) //a4ii 41mi 1010 Marsh St., San 1 (805) 546-8208 • I STATE OF CALIFORNIA, County of San Luis Obispo, I am a citizen of the United States and a resident of the county aforesaid; I am over the age of eighteen years, and not a party interested in the above entitled matter. I am the principal clerk of the printer of the New Times, a newspaper of general circulation, printed and published weekly in the City of San Luis Obispo, County of San Luis Obispo, and which has been adjudged a newspaper of general circulation by the Superior Court of the County of San Luis Obispo, State of California, under the date of February 5, 1993, Case number CV72789: that notice of which the annexed is a printed copy (set in type not smaller than nonpareil), has been published in each regular and entire issue of said newspaper and not in any supplement thereof on the following dates, to -Wit: 7�sl& L in the year 2019. I certify (or declare) under the the penalty of perjury that the foregoing is true and correct. Dated at San Luis Obispo, Cal fornix, this day. L l af_�J , 2019. W_Q;9� Patricia Horton, New 'Times Legals Ad,,,m.0 Pct.-nnalbN'rMOAdinii✓N7MOOff— 117uS IN LSSA'oblic None,,; ,-fnrPun SAN LUIS OBISPO CITY COUNCIL NOTICE OF PUBLIC HEARING The Sart Luis Obispo City Council invites all intorasted persons to nitend a public hearing on Too 11111 July 16. 2019, at 6:00 pp.m. in the City [fed Council Ch. liar, 990 Palm Strout, Snn Luis dbiepo, California, relative to the following: downtown San Luis Obispa Property -Based Business Improvement District - Consider establishing the Property and Business lmprovamant District known as Ilia "Qowrttown San Luis Obispo Property -Based Businass Imprevamont District' pursuant to Iho provisions of the Propor[y and Business Improvarnant District Law of T994 and to levy assossmurtts. information as to the proposed assessmont is contained in llto following accompanying deCnlTnfnlS: flesalution of Intention, Pfopnsillon 218 Assessment Ballot, and Ass wrest Ballot Instructions. NOM The assessment sbail not be imposed if the ballots submitted in opposition to the assessment exceed the ballots submitted In favor of die assessment, with ballots weighted according to the proportional financialobiigation of the affected proporty. All Interested persons aro invited to be present and be -board. Written communications may be directed lo: City Council. 990 Palm Street, Son Luis Obispo, CA 73401. For furthor information on the "Downtown San Luis Obispo Proppeny-Basad Business lmprovemanl Disifict," contact Bettina Swigger, CEO Downtown SLO. at beltine0downtownsle,com or 18051 234.9617. Far further information an the public hearing, coniacI To rasa Purring[on, City Clork, attpurringlonc%slocity. org er at 18051 781-710Z 580 Tank Farm Road and 3985 Broad Street - Arnendment to the, Airport. Area Specific Plan amending thn land use designulion from Business Park (BP•5Pl to Community -Commercial with Special Focus Overlay 1C•C- SP-SF}; General Plan Amondrnont and Rerone amending a portion of the site Iroln Business Park to Communi - Commarc,sl with Spacial Focus Overlay (C-C-SP-Sfq; Veslinp Tentative Map (Tract 3115) to create seven (7} lots; Dasign Review fora ccmmerrial contar wirh49,001)square fool, and assisted living facility with 139 units; Croak Solhnck Exception, and roviow of a CEr1A Initial Study- Millgatad Negative Declaration of Eavironmontal impact L 1 I � For more information, you are Invited to contact Brian Levaiile of Ilia CiWs Community Development Department 6118051181-7166 or by email at bloveillaGriocity.org. loo City Council "I'll also discuss other hearings or business horns before or after the items Ilsled abdva. If yflu chal tonga tha proposed protects in court, you may ba limitod to raising only thcss issues you or someone also raised at IW public hoariag doscribad in this notice, or in written corraspandenco dafivorod tithe City Council at, or 0riarto, the public hearings. Reports for this mauling will ba available for review In the City Clerk's Office end online at www-$IoOty.org on Wodnestlay, July 10, 7019. Pleaso cell the City Clark's Office at (805) 781-7100 for more information. The City Council meeft wlll be televised live on Charter Cable Chan net 20 and live streaming on www.slocItyorg. Teresa Purrin0Ion, City Ctork City of San Luis Obispo July 4, 2019 7/16/2019 Item 15 ‐ Staff presentation 1 City Council July 16, 2019 1 Withdrawal of PBID Petition by Downtown SLO Recommendation Receive and file the withdrawal of the Property Based Improvement District petition by Downtown SLO. 27/16/2019 Item 15 - Staff Presentation 1 2 7/16/2019 Item 15 ‐ Staff presentation 2 Investments in Downtown Vitality 2019-21 Safety: Four Bike Officers assigned to downtown Community Action Officers, social worker support Downtown Security Project Security cameras in Mission Plaza 37/16/2019 Item 15 - Staff Presentation Investments in Downtown Vitality 2019-21 Maintenance: Sidewalk scrubbing services Downtown planter maintenance Sidewalk and tree grate repair and replacement Sidewalk tile replacement Enhanced downtown tree pruning 47/16/2019 Item 15 - Staff Presentation 3 4 7/16/2019 Item 15 ‐ Staff presentation 3 Investments in Downtown Vitality 2019-21 Infrastructure: Downtown Renewal Project Palm/Nipomo and MidTown parking structures Replacement of Marsh St. bridge over San Luis Creek Cheng Park rehabilitation 57/16/2019 Item 15 - Staff Presentation Investments in Downtown Vitality 2019-21 Amenities: Public art Tree lighting and street banner programs Support the opening of new hotels Activate public spaces through events and programming Continue to implement the Downtown Concept Plan and Mission Plaza Master Plan 67/16/2019 Item 15 - Staff Presentation 5 6 7/16/2019 Item 15 ‐ Staff presentation 4 Investments in Downtown Vitality 2019-21 Economic Development: Ongoing downtown business support Shop Local program Develop a business vitality program Update the Economic Development Strategic Plan 77/16/2019 Item 15 - Staff Presentation Recommendation Receive and file the withdrawal of the Property Based Improvement District petition by Downtown SLO. 87/16/2019 Item 15 - Staff Presentation 7 8 7/16/2019 Item 15 ‐ Staff presentation 5 97/16/2019 Item 15 ‐ Staff Presentation Ongoing Needs Destination Management (Community): Ensure that downtown is “”still welcoming to residents” Two new hotels opening in the downtown Parking Continued attention to other areas in the City outside of downtown 107/16/2019 Item 15 - Staff Presentation 9 10 7/16/2019 Item 15 ‐ Staff presentation 6 Ongoing Needs Destination Management (Visitors): 80% of visitors to SLO County visited San Luis Obispo Desire for locally owned stores Clean streets and sidewalks Additional pedestrian crossings More way finding signage 117/16/2019 Item 15 - Staff Presentation Ongoing Needs Calls for Service: In 2018, SLOPD responded to 32,421 calls for service 4,828 were specific to the downtown In 2018, SLOPD responded to 7,591 calls related to transient issues 1,557 were specific to the downtown 127/16/2019 Item 15 - Staff Presentation 11 12 7/16/2019 Item 15 ‐ Staff presentation 7 137/16/2019 Item 15 ‐ Staff Presentation Continued Baseline Services Police Department Downtown Services Bike, Community Action Team and patrol officers Downtown Sergeant Graffiti removal Parks and Recreation Downtown Services Special event staff support Facilities and storage Public art 147/16/2019 Item 15 - Staff Presentation 13 14 7/16/2019 Item 15 ‐ Staff presentation 8 Continued Baseline Services Utilities and Public Works Downtown Services Sewer maintenance Streets maintenance Urban forest services Parking programs and transit services 157/16/2019 Item 15 - Staff Presentation 167/16/2019 Item 15 ‐ Staff Presentation 15 16 7/16/2019 Item 15 ‐ Staff presentation 9 Investments in Downtown Vitality 2019-20: $10,362,895 2020-21: $31,501,045 Total: $41,863,940 177/16/2019 Item 15 - Staff Presentation 17