Loading...
HomeMy WebLinkAboutOrdinance #3661 ORDINANCE NO. 3 6 61 AN ORDINANCE OF THE CITY OF HUNTINGTON BEACH ESTABLISHING THE HUNTINGTON BEACH DOWNTOWN BUSINESS IMPROVEMENT DISTRICT WHEREAS, the California Legislature, in adopting the Parking and Business Improvement Area Law of 1989 (Streets and Highways Code § 36500, et seq.), found that cities are authorized to levy assessments in order to promote economic revitalization and tourism, create jobs, attract new businesses, and prevent erosion of business districts on businesses which benefit from these improvements and activities;'and The purpose of the business improvement area, as proposed by this ordinance, is to fund activities to promote activities which benefit all businesses within the downtown business area of the City of Huntington Beach; and A sizeable majority of the businesses within the downtown area of the City of Huntington Beach have requested that the City Council commence proceedings under the Parking and Business Improvement Area Law of 1989 to establish a Downtown business benefit area and to levy special assessments to promote activities which benefit businesses located n the area; and On July 19, 2004, the City Council adopted Resolution No. 2004-56, declaring its intention to form the a business improvement area entitled the Huntington Beach Downtown Business improvement District with the boundaries of the proposed district and the boundaries of the benefit zones to be as depicted in Exhibit"A", attached hereto and incorporated herein by this reference. On August 16, 2004, at City Hall Council Chambers, 2000 Main Street, Huntington Beach, California, a duly noticed public hearing, in accordance with the notice requirements of Streets and Highways Code Section 36523, was held concerning the establishment of the business improvement area; and The City Council of the City of Huntington Beach has now determined to establish the Huntington Beach Downtown Business Improvement District to provide for the imposition of a benefit assessment and to adopt an ordinance to such effect, NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. Intent and Purpose. On July 19, 2004, the City of Huntington Beach (the "City") adopted Resolution No .2004-56 (the "Resolution"),'declaring its intention to establish a business improvement area known as the Huntington Beach Downtown Business Improvement District and to levy a benefit assessment on all businesses within said district, the proceeds of which shall be used for the public purposes therein described, pursuant to the 04ordldowntown business BID/8/2/04 1 Ordinance No. 3661 Parking and Business Improvement Area Law of 1989, Part 6 (commencing with Section 36500) of Division 18 of the California Streets and Highways Code (the "Act")). On August 16, 2004, the City Council held a duly noticed public hearing concerning the establishment of the District. The City Council has heard and considered all oral and written protests or other comments regarding such proposed action, and written protests from businesses in the proposed area paying a majority of the proposed assessment have not been received and the City Council finds,based on all evidence presented that the businesses within the improvement area will be benefited by the expenditure of the funds raised by the assessments proposed to be levied. SECTION 2. Establishment of Area. A parking and business improvement area to be known as the "Huntington Beach Downtown Business Improvement District" (the "District") is hereby established pursuant to the Act. The boundaries of the District and the benefit zones within the District are generally located within the downtown area of the City of Huntington Beach, and are forth with greater specificity in the map and lists attached hereto as Exhibit A. SECTION 3. Method and Basis of Levyi�ng Assessments/Business Classifications. The method and basis of levying of assessments in the District is set forth in Exhibits A and B. For purposes of the assessments to be imposed pursuant to this Ordinance, the City Council may make a reasonable classification of business, giving consideration to various factors, including general benefit to businesses and the degree of benefit received from programs of the District. SECTION 4. Collection of Benefit Assessment. The benefit assessment authorized by this Ordinance shall be collected on an annual basis at the same time, but with separate itemization, as the City of Huntington Beach Business License Tax that is collected pursuant to the Huntington Beach Municipal Code. The levy of assessments will commence on October 1, 2004. SECTION 5. Amendments to the Act. The District and all businesses within the area established by this ordinance are subject to any amendments to the Act. SECTION 6. Penalty for Delinquent Pam. For failure to pay a benefit assessment when due, the City shall add a penalty of ten percent (10%) of the assessment amount on the last calendar day of each month after the date due thereof, providing that the penalty amount to be added shall in no event exceed one hundred percent(100%) of the assessment amount due. No City business license shall be knowingly issued or renewed to any business which, at the time of making application for any license or -renewal thereto, is indebted to the City for any delinquent benefit assessment. SECTION 7. Boundary Modification. The City Council may modify the boundaries or assessment, established by this Ordinance. The modifications shall be made pursuant to the requirements of the Act and this ordinance, but no assessment shall be modified which would impair the ability of the District to meet the obligation of a contract to be paid from the revenues derived from the levy of assessments. SECTION 8. Changes in Assessments. Any businesses covered by this Ordinance shall also be subject to changes which may be made in the assessments or in the uses to which 04ord/downtown business BID/8/2/04 2 Ordinance No. 3661 the revenues shall be put, as specified in this Ordinance and as permitted by the Act. Such changes shall be made by later ordinance adopted after a hearing before the City Council, or by Resolution, if approved in conjunction with confirmation of the Annual Report. SECTION 9. Restriction on Use. The assessments levied on businesses pursuant to this Ordinance shall, to the maximum extent feasible, be levied on the basis of the estimated benefit to the businesses within the District and the revenues from the levy of assessments shall not be used to provide improvements or activities outside of the District or for any other purpose not specified in said Resolution No. 2004-56, except as the same may be modified by City Council at the hearing concerning the establishment of the area or subsequently thereto. The types and improvements and activities that will be funded by the levy of assessments on business within the District include those specified in Exhibit C attached hereto and incorporated herein by this reference. SECTION 10. Fiscal Year. The fiscal year of the District shall be that period of October 1 of year through September 30 of the following year, and the first fiscal year of the District shall commence on October 1, 2004. SECTION 11. Exemptions. New businesses with the District, whose operations commence after the effective date of this ordinance will not be exempt from the levy of the assessments. SECTION 12. Advisory Board. (a) Appointment. The City Council shall appoint a seven-member Advisory Board following an election to be held prior to October 1, 2004, by the businesses subject to the proposed assessments. Each business will have equal voting weight, regardless of assessment represented. The Advisory Board shall make recommendations to the City Council on the expenditure of revenues derived from assessments pursuant to this part, on the classification of businesses, and on the method of levying the assessments. (b) Annual Report. The Advisory Board shall prepare a report for each fiscal year for which assessments are to be levied. The report shall be filed with the City Clerk and shall comply with all the requirements of Streets and Highways Code Section 36533 as the same may be amended from time to time. (c) Approval of Report. Pursuant to Act, the City Council may approve the annual report filed by the Advisory Board or may modify any particular item contained in the report and approve it as modified. The City Council shall not approve a change in the basis or method of levying assessments which would impair an executed contract to be paid from the revenues derived from the assessments. SECTION 13 Area Establishment and Disestablishment. All provisions of this Chapter applicable to the establishment or disestablishment of an area shall apply to the establishment, modification, or disestablishment of benefit zones pursuant to the Act, and subject to any 04ord/downtown business BID/8/2/04 3 Ordinance No. 3661 amendments thereof, and the establishment or the modification of any benefit zone shall follow the same procedures as provided for the establishment of a parking and business improvement area and the disestablishment of a benefit zone shall follow the same procedure as provided for disestablishment of an area. SECTION 14. This ordinance shall take effect 30 days after its adoption. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 7 th day of September 2004. ATTEST Ma APPROVED AS TO FORM: 4a Ci Clerk ty Attorn y (..� s I REVIEWED AND APPROVED: INITI TED AND APPROVED: City A inistrator Director of Economic Development 04ord/downtown business BID/8/2/04 4 Ordinance No. 3661 s.. ......."..«....w.:..r..w......^.w. .. �....w n ,.._.-.....:.�sw_..w.... .swaw.•.-s.... + RV O Huntington Beach Downtown CD Business Improvement District Boundaries and Benefit Zones I & 2 Ordinance No. 3661 Ordinance No. 3661 Exhibit B (Revised) Downtown Business Improvement District Assessment Formulas Benefit Zone 1 Retail Businesses $250 Less than 1,000 sq. ft. $500 1,000 sq. ft .to 5,000 sq. ft. $1,000 5,000 sq. ft. or more Restaurants $250 Less than 1,000 sq. ft. $500 15000 sq. ft. 5,000 sq. ft. $1,000 51000 sq. ft. or more Hotels $500 Services/Office* $200/$100 if on 2�d floor or higher Real Estate IndividualLicensee $50 Nail/Hair/Skin Stylist $50 Banks $500 Benefit Zone 2 Retail Businesses $250 Restaurants $250 Hotels $500 Service/Office* $100/$50 if on 2nd floor or higher Real Estate Individual Licensee $50 Nail/Hair/Skin Stylist $25 Banks $500 * Business Licensees for Apartments Excluded Ordinance No. 3661 Ordinance No. 3661 EXHIBIT C HUNTINGTON BEACH DOWNTOWN BUSINESS IMPROVEMENT DISTRICT Annual Budget Fiscal Year 2004-2005 BID assessments will be used to establish the Huntington Beach Downtown Business Improvement District budget. The Huntington Beach Downtown Business Improvement District will actively fund activities to promote Huntington Beach Downtown businesses. The BID fiscal year will be from October 1"to September 30`h EXPENDITURES MARKETING/ADVERTISING $20,000 • Downtown Maps • Publicity Efforts • Visitors Guide Advertising • SignagelBrochures SPECIAL EVENTS $40,000 July 4`'' • Halloween • Surf Promotions • Spring/Fall Promotions LANDSCAPING $15,000 ADMINISTRATION $10,000 LEGAL/ACCOUNTING $3,000 MISCELLANEOUS $2,000 ANTICIPATED EXPENDITURES $90,000 ANTICIPATED REVENUES $90,000 Ord. No. 3661 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) SS: CITY OF HUNTINGTON BEACH ) - 1, JOAN L. FLYNN, the duly appointed, qualified City Clerk of the City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is seven; that the foregoing ordinance was read to said City Council at a regular meeting thereof held on the 16th da of August, 2004 and was again read to said City Council at a regular meeting thereof held on the 7th day of Septembcr, 2004, and was passed and adopted by the affirmative vote of at least a majority of all the members of said City Council. AYES: Sullivan, Coerper, Hardy, Green, Boardman, Cook NOES: None ABSENT: Vacant Position Unfilled ABSTAIN: None I,Joan L.Flynn,CITY CLERK of the City of Huntington Beach and ex-officio Clerk of the City Council,do hereby certify that a synopsis of this ordinance has been published in the Huntington Beach Fountain Valley Independent on September 16,2004. In accordance with the City Charter of said City Joan L. Flynn, City ClerkVy Clerk and ex-offici lerk Deputy City Clerk of the City Council of the City of Huntington Beach, California