HomeMy WebLinkAbout11/26/1973MINUTES
ADJOURNED MEETING OF THE CITY COUNCIL
CITY OF SAN LUIS OBISPO, CALIFORNIA
Monday, November 26, 1973 - 7:30 P.M.
City Hall
Pledge
Roll Call:
PRESENT: Councilmen Brown, Graham, Gurnee, Norris,
and Mayor Schwartz
Citv Staff:
ABSENT: None
PRESENT: J. H. Fitzpatrick, City Clerk; R.D. Miller,
Administrative Officer; A. J. Shaw, Jr., City
Attorney; D. Williamson, Assistant Administrative
Officer; D. F. Romero, City Engineer; E. L.
Rodgers, Police Chief.
1. The City Clerk reported that the purpose of the meeting was
a public hearing on a resolution of intention to establish a parking
and business improvement area within the downtown section of the City
of San Luis Obispo and setting a hearing and date thereof. The resolu-
tion was requested by the Downtown Association to establish a parking
and business improvement district under the provisions of the California
Streets and Highways Code, Sections 3600 et seq.
The area
to
be included
in the boundaries of said district were generally
described
as
follows:
California Boulevard from Highway 101 to San Luis Drive southerly across
the Southern Pacific Railroad right -of -way to Pismo Street, Pismo Street
from the Southern Pacific Railroad right -of -way to Archer Street, Archer
Street to Marsh Street, Marsh Street to Highway 101, Highway 101 to
California Boulevard. The area would include also the businesses front-
ing on both sides of the boundary streets and all four corners of inter-
sections of said boundary streets.
The proposed uses for which the tax revenue from said area would be
spent for were:
1) Acquisition, construction, or maintenance of parking
facilities for the benefit of the area provided that said
facilities shall not impair the City's ability to produce
revenue for the payment of parking district no. 1 obligations.
2) Decoration of any public place in the area.
3) Promotion of public events which are to take place on
or in public places in.the City.
4) Furnishing of music in any public place in the area, and
5) The general promotion of retail trade activities in the
area.
The proposed tax revenue would be derived from a percentage increase in
the City's business license tax for all licensed businesses in said area.
Said percentage increase would vary among different classifications as
follows:
Retail sales - 100 percent increase in the license tax
General business - 100 percent increase in the license tax
Professions, vocations, and other businesses - 50 percent
increase in the license tax.
City Council Minutes
November 26, 1973
Page 2
A. J. Shaw, City Attorney, explained the legal steps necessary for the
formation of the district under the California Streets and Highways Code
provisions, this being the first step, a public hearing to ..get the
feeling of the property owners and business license holders in the
proposed district.
The City Clerk then reported that in accordance with the provisions
of the resolution under consideration, notices had been sent out to
496 businesses with a total business license revenue to the City of
$44,652.
The City Clerk then presented the following letters: One from
Harry E. Woolpert, Attorney at Law, 1305 Marsh Street, objected to
being forced into taking part in the establishment of a parking and
business improvement area in the downtown area. He felt that the im-
provements should come through voluntary downtown businessmen associa-
tions and not through another special district supported by the taxpayers.
Lachlan P. MacDonald, Chairman of the City's Promotional Coordinating
Committee, spoke in favor of the formation of the business improvement
district. The committee wished to go on record unanimously to approve
of the concept that a business improvement district could assist in the
goals of promoting San Luis Obispo.
Communication from Shipsev & Seitz, Attorneys at Law, 1119 Palm Street,
opposed the formation of the district first on the basis that City
requirements force them to place off - street parking on their private
property with no help from the adjoining businesses. Secondly, there were
no public places, exclusive of the courthouse, close to his business and
he could not envision any amounts of money being spent to decorate or
promote the area. And finally, he did not feel that business license
taxes should be used to promote retail trade in the proposed district as
it should be done by the businesses involved. Further, he felt that
if any tax money were to be spent on promotion, the City should also
consider the Foothill merchants, Madonna Road shopping area and other
places within the City from which revenue was derived.
Communication from George Shreve, Cenco Employment Agency, submi.tted a
strong protest to the funding of this program on downtown improvements
which would double his business license. He felt the promotion of the
City of San Luis Obispo was and should be a function of the Chamber of
Commerce for which dues were paid by contributing merchants. Secondly,
he felt that firms such as insurance companies and banks paid no business
fees but whould share in the benefits of such a district. He also felt
that competition from shopping centers as well as other areas would
create a desire for the downtown merchants to compete and if the prdce
was right there would be no need for this type of promotion. And lastly,
he felt that all business people should support the retail merchants in-
dividually and not through a government.district.
Communication from Arthur F..Spring, San Luis Motor Company, opposed the
proposed business improvement district. It was his feeling that the
businessmen should support their own development and not expect the City
to develop sales for them. Finally, a letter from Hilda J. Roza, 704
Mission Street, opposing the formation of the business improvement district
as she felt the City had other more important things to do than to help
promote and develop the businessmen of San Luis Obispo.
R. D. Miller, Administrative Officer, submitted for the City Council's
information the per capita business license taxes levied on businesses
comparable in Cities., ten larger and ten smaller than the City of San
Luis Obispo.
Mayor Schwartz declared the public hearing open.
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City Council Minutes
November 26,1973
Page 3
Rudy Silva, Brazil's Jewelry, President Downtown Association, spoke in
favor.of the formation of the business improvement district and listed
the reasons why the Downtown Assocation urged the establishment.of such
a district and said the Downtown Associiation would manage the district
for the good of San Luis Obispo business. He then introduced Mr. Bill
Riley, Manager- Director of the Oxnard Business Improvement District and
Mr. Dan Wilson, Watsonville Radio, who spoke on the business improvement
districts in Watsonville and Santa Rosa.
Tom Shevlin, Bob's Car Wash,
improvement district, except
for more parking. He was op
advertising, music, etc. He
put to a vote of all license
just a few supporters.
spoke in support of the proposed business
he would only support it if it would pay
)osed to the other items such as promotion,
also suggested that this matter should be
holders in the proposed district and not
William McWhinney, Pacific Street, was opposed to his inclusion in the
proposed business improvement district as professional persons would
receive no benefit and their rates would be extremely high. He did not
feel that the professional businesses on the outskirts- of the central
business district would receive any of the advertising, promotion or music
as envisioned.
Elmore Reynolds, San Luis Cyclery,Monterey Street, stated that 32
businesses on Monterey Street, opposed being included in the business
improvement district as they would not receive any benefit from their
increased fees.
Per Mathiesen, Monterey Street, questioned the Downtown Association's
right to use tax funds for their own benefit, for their own staff members,
etc.
Neal, Performance Motors, was opposed to the formation of the business
improvement district as he would not receive any benefit from the in-
creased costs on his license. He felt that the proposed district was
too large and said also that San Luis Auto Parts were also opposed to
this district.
Bob Reich, 952 Higuera Street, was in favor of the formation of the district
as he felt it would benefit his business and all others in the downtown
area.
Mid -State Electronics, Monterey Street, opposed the formation of the
district as it would not benefit his operation as he was too far from
downtown and the ones who benefited should be the ones who paid the bill.
Harry Murphy, Attorney, who also spoke on behalf of Dick Willett, said
he felt that the proposed district boundaries were too encompassing and
too large an area, as he felt the only ones who would benefit were the
stores in the downtown core of the City, and it seemed to him that the
Downtown Association was trying to have their far -flung neighbors pay for
downtown promotion to help the core businesses do better. He was
opposed to the district formation as presently conceived and the purposes
listed.
Universal Auto Parts was opposed to the proposal as they felt it would
not benefit their business, and that if anyone wanted promotion it
should be paid for by the individual or by a group of businesses working
through the Chamber of Commerce.
Jerry Caylor, Premier Music, was opposed to the formation of the district
as proposed. He also opposed the City using tax money to advertise and
promote downtown business as it would only benefit a few retail downtown
stores.
Pat Smith, Westside Auto Parts, 1329 Monterey Street, was opposed to the
formation of the district as presently conceived.
City Council Minutes
November 26, 1973
Page 4
Ed Randall, Westside Auto Parts, 1232 Monterey Street, was opposed to
the district. He felt there was no benefit outside of the small core
area.
Dr. M. 0. Noszlopi, 1363 Marsh Street, felt no benefit to professional
men. She felt the benefit would only be to retail businesses in the
core area. She felt the district boundaries were too large, too encom-
passing.
Dr. William J. Schanberger, 1500 A Marsh Street, was opposed to the form-
ation of the district if he was included. He felt there would be no
benefit to professionals and did not feel that the business people were
being fair in wishing people outside the district to pay for their
promotion.
Shirlev Thomas, apartment owner, Pismo Street, opposed to the formation
of the business improvement district. She felt it would only benefit
retail stores.
Mrs. Forsvthe, 1323 Morro Street, said she was not notified and felt if
she was not told about the meeting, how many others were not notified?
She was opposed to the district as she did not feel it would benefit
anyone except those in retail business.
Mr. Garcia, Wholesale Auto Parts, 565 Higuera Street, was opposed to
being included in this district. It would not be of any benefit to his
business and would only help the retail stores in the central part of
downtown.
Peter Nelson, Dentist, Fremont Plaza, Peach Stre
included in the business improvement district as
were too large. It should only include the core
would be derived by the majority of the people.
Dr. M. McRae, Fremont Plaza, was opposed to the
as it would not be of benefit to him.
Dt, was opposed to being
he felt the boundaries
area where the benefit
formation of the district
Don Mueller, Uptown Market, was opposed to being included in the business
improvement district. He felt the area was too large, his business
would not benefit as it was too far from downtown, and further felt that
if he wished to promote his business with his neighbors he felt he should
get together and do it on that basis.
Clifford Hansen, Safeway Store ,Manager, Marsh Street, was opposed to the
formation of the district and having his company store included. There
was no need for such a district, there would be no benefit to his bus-
iness and it would be the equivalent of an increase 5' times their taxes.
Thelma Copeland, Copeland Shoes, Sports Store, etc., Higuera Street and
Monterey Street, was opposed to the formation of the business improvement
district. She felt that each business should pay for their own adver-
tising and promotion. She felt the district was too large and did not
want the City to pay for promotion and felt that most of the money collected
would go to staff and for expenses of someone running around doing the
errands for the association.
Andrew Renetzkv, Attorney, 911 Palm Street, stated he was in support of
the formation of the business improvement district, as He felt the Down-
town Association had done a good job and they needed the support that
this money would bring to the business district.
Dr. Von Stein, Dentist, Fremont Plaza, was opposed to being included in
this district.
Chet Becker, Draperies, Marsh Street, was opposed to the entire idea of
a business improvement district. He felt that only those who benefited
City Council Minutes
November 26, 1973
Page 5
should pay and not expect others to pay for the central core's adver-
tising and promotion.
Jim Moyer, Jim's Campus Camera, 756 Higuera Street, in support of the
business improvement district felt that combined promotion and advertis-
ing would benefit the entire community.
Nate Levin, Arnett & Broadbent, thought that the Downtown Association should
do their own promotion and not expect those who did not benefit to pay
for their advertising. He was opposed to the formation of this district.
San Luis Travel Agency was in favor of the Downtown Association's pro-
posal but did not feel that they should be included as they were too far
out of-the district and would receive no benefit from such a district.
Warnes, Warnes Paint Store, Monterey Street, was opposed to the formation
of the district and did not like the idea of the City collecting'license
fees for the Downtown promotion, staff, etc.
Dr. Farmer, California Blvd., Tolosa Medical Center, opposed being in-
cluded in the district and did not feel the scheme would benefit either
downtown or the City as a whole. He would support a program that would
help the City but he felt the boundaries as presently envisioned were too
large and too unwieldy.
Tom Brown, Brown's, Shoes, Higuera Street, in favor of the business improve-
ment district felt it would benefit his business and all core businesses.
He did not know where the district boundaries should be, but if reduced,
who would carry the load of the promotion?
Dr. Ben McAdams, California Blvd., was opposed to being included in the
district. He felt that this was taxation without benefit to those who
were required to pay. He did not feel that professionals in the outlying
area would receive any benefit.
Mortar & Pestle Pharmacy, 1239 Osos Street, was opposed to the district.
He felt there would be no benefit to his business or to any professional.
He felt there were other ways to revitalize the downtown without doubling
the business license fees. He also felt that those who benefited should
pay.
Dr. Jorqensen, California Blvd., was opposed to the business improvement
district. He felt the boundaries were ,too all encompassing. He felt
that his clinic would not benefit from the license fee increase. He
felt the City Council should take an informative vote now before forming
the district. He felt the boundaries should be reduced so that only
those who benefited would pay and not those who received no benefit.
Ron Idler, Idler's, Broad Street, was in support of the formation of the
business improvement district as he felt his business and all other down-
town retail businesses would benefit.
Bill Riley, Executive Director, Oxnard Business Improvement District,
spoke on behalf of the Downtown Assocgation's attempt to form a business
improvement and parking district in San Luis Obispo. He felt that with-
out the power of the City to collect the taxes, the merchants would not
ban together and do the advertising and promotion that they needed. He
did not know about the limits of the district, but he supported the
concept of the business improvement district as allowed by State law.
Dan Wilson, KSBW -TV, Salinas, spoke on his experiences in Watsonville and
Santa Cruz in promoting businesses in these cities through the provisions
of Chapter 241, AB 103. He felt that the Watsonville experience was a
good example of the benefits that a parking and business improvement
district brought to the merchants, which he claimed increased business in
one year by 31 percent. He also felt that the concept of the B.I.D. was
good but could not speak as to the boundaries submitted by the Downtown
Association at this time.
City Council Minutes
November 26, 1973
Page 6
Mayor Schwartz declared the public hearing closed and declared a ten -
minute recess. 9:30 P.M.
9:45 P.M. The meeting reconvened, all Councilmen present.
Rudy Silva, President of the Downtown Association, stated that during the
break he discussed with the directors the comments at this meeting and
submitted the following compromise on boundary of district, using a
zone concept. He suggested Zone 1 would have a full assessment and
Zone 2 would be 50 percent of the assessment. Zone 1 would be the small
area of Palm, Santa Rosa, Pacific and Nipomo Streets. The balance, Zone
2 would be the balance of the proposed district. He stated he was still
in support of the district concept as he felt it was the only way that
the Downtown Association would get sufficient funds to do the promotion
that was'necessary. He felt that it was impossible for the merchants
to get together, and he gave his example of his own experience in his
organization.and in the Chamber of Commerce.
Upon question, Mr. Shaw, City Attorney, stated that if the City Council
were to make any changes in the boundary, it would require a new mailing,
new advertising; and a new public hearing as it would be a complete new
proposal. All the Council could take action on this evening is what had
been advertised and what had been mailed out'to the individual business
licensees.
Councilman Gurnee, stated that he felt that a fair method to resolve this
matter would be for the City to hold an election amongst the business and
professional men of the City to see if they agreed with the concept and
amount of fee-proposed. He felt a mailing ballot could be used. He
felt the proposed district was too large. He felt that the majority of
the ones in the proposed district would receive the least benefit. He
also felt that the formation of the district based on dollar amount of
license and not on number of licenses, was unfair. He also disagreed
with additional promotion advertising with tax dollars. He did not
oppose advertising if paid for by private enterprise represented by
the private business people.
Councilman Norris stated that he felt a great amount of opposition was
submitted this evening and felt that the Council should amend the
proposal ;to (1) include a reduced size of the district, (2) elim;i:nate
professionals from being included, and look into a zone -of- benefit system
of fees. He stated while he was still in favor of the concept of the
business improvement district, he felt that the proposal of the Downtown
Association was in error.
Councilman Brown, stated that he did not feel that the present proposal
could be approved. He felt that it must be revised and that a proposal
submitted for public hearing and also that a ballot should be sent out
so that each business and professional could support or reject the entire
project.
Councilman Graham stated he was in support of an improvement district to
develop, promote and advertise the central core of business district. He
felt that no one really knew what benefits the district would bring to
can Luis Obispo!:s downtown. He felt that the business improvement .
district organization would be a rallying organization for the business
community. He said he felt that what downtown San Luis Obispo needed
was customer and employee parking which was lacking at this time. He
would support the concept of a business -improvement district and felt the
size of the district might be too large, but that if some type of zone -
of- benefit could be worked out, he would go along with the proposal.
Mayor Schwartz felt that the business community was not in full support of
the proposed business improvement district, and he felt that any action
that the Council would take would have detrimental effect on the business
community. He also felt it would put the City Council in a position of
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City Council Minutes
November 26, 1973
Page 7
being a collector of funds for private promotion, development, and
improvement, which he felt would also cause problems in the business
community. He also felt that the proposed boundaries were too large and
all encompassing. He too would favor an advisory of.straw vote as to
each business person's feeling as to the formation of the improvement
district. He suggested that the district should really contain the area
within the Palm, Santa Rosa, Pacific and Nipomo area and that the profes-
sional people should be left out of the district as they would receive no
benefit from any of this promotion.
Councilman Gurnee warned the City Council not to clutter up the straw
ballot by sending one out with too many alternates.
Councilman Norris stated that he wasinsupport of the advisory vote, which
would define the new boundary and which would eliminate licensing of pro-
fessionals.
Rudy Silva, President of the Downtown Association, upon question stated
that he feared the straw vote or popular vote would reject the proposal
and he felt the City Council should follow State law without an advisory
vote of all the licensees. He stated that the State law, as he understood
it, was written so that the only way the improvement district could be
stopped would be if 51 percent of the merchants were opposed to the formation.
He continued that if the Council insisted on an advisory vote, it would
be thrown out by the people. He stated this is why the State law was
written to allow the protestors to object to the formation. He felt that
this was put in the law so that the opposition would have difficulty in
stopping the formation of the district.
Councilman Gurnee felt that the State law was incorrect if this was the
intent when it was passed.
On motion of Councilman Gurnee, seconded by Councilman Brown that the
City Council direct the City staff to draw a question for a straw ballot
to be submitted to all businesses in the business improvement district
for the Council's consideration, the ballot to contain the following:
(1) Do you support the business improvement district as
proposed?
(2) Would you support a I.evy on your business license
tax to support any sort of a downtown improvement
district?
Potion lost on the following roll call vote:
AYES: Councilmen Gurnee and Brown
NOES: Councilmen Graham, Norris and Mayor Schwartz
ABSENT: None
On motion of Councilman Norris that the City Council work with the Down-
town Association to formulate several specific proposals to submit to
license holders within the City of San Luis Obispo for future hearing by
the City Council. Motion died for lack of a second.
On motion of Councilman Graham that the City Council continue the present
hearing on Resolution No. 2510, refer to the Downtown Association for
revisions and return to the Council for future hearing. Motion lost for
lack of a second.
Rudy Silva again appeared before the City Council, told the Council to
follow the State law and not to try for a popular vote for advice to
the City Council.
City Council Minutes
November 26, 1973
Page US
Jack Ready, again asked the City Attorney to read section 36,023 on the
formation of a business.;improvement district.
On motion of Mayor Schwartz, seconded by Councilman Brown that the City
Council authorize a straw vote ballot to be sent to all business
licensees in the original district proposed under Resolution No.' 2510 as
amended into Zones 1 and 2, and another ballot to licensses in the area
bounded by Santa Rosa, Pacific, Nipomo, and Palm Streets. Questions
to include the following:
(1) Would you support the intent of the business
improvement district as proposed in Areas 1
and 2?
(2) As far as the boundaries of Area 2 are concerned,
would you favor the elimination of a tax on
professionals?
(3) As far as boundaries of Area 1 are concerned,
would you favor elimination of tax on profes-
sionals?
(4) As far as boundaries of Area 2 are concerned,
would you approve the zone concept with Zone 1
paying 100 percent of the license fee and Zone
2 paying 50 percent of the license fee?
Motion carried on the following roll call vote:
AYES: Councilmen Brown, Graham, and Norris
and Mayor Schwartz
NOES: Councilman Gurnee
ABSENT: None
The City Council adjourned to Wednesday, November 2E, 1973 at 4:00 P.M.
APPROVED: February 19, 1974
H. F TRICK, CITY CLERK;
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