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Home My WebLink AboutCity Council - 2021-42 RESOLUTION NO. 2021-42 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH DECLARING THE CITY'S INTENTION TO LEVY AN ANNUAL ASSESSMENT FOR FISCAL YEAR 2021-2022 WITHIN 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 on businesses in order to promote economic revitalization and tourism, create jobs, attract new businesses and prevent erosion of business districts; and The California Legislature found that cities are authorized to levy assessments on businesses which benefit from those improvements and activities; and A sizeable majority of the downtown businesses within the City of Huntington Beach requested that the City Council continence proceedings under the Parking and Business Improvement Area Law of 1989 to establish a downtown business benefit area within the City of Huntington Beach and to levy a special assessment to promote tourism and tourist related events; and The City Council formed a business improvement area, known as the Huntington Beach Downtown Business Improvement District (the "District"), by the passage of Ordinance No. 3661 on September 7, 2004. The City is proposing to levy an assessment for fiscal year 2021-2022 pursuant to the process detailed in Streets and Highways Code §36500, et seq.; and The District's Advisory Board has prepared and filed with the City Clerk an "Annual Report" and "Proposed Budget for Fiscal Year 2021-2022" (collectively, "Annual Report"); and NOW, THEREFORE, the City Council of the City of Huntington Beach does hereby resolve as follows: SECTION 1. The City Council hereby approves the Annual Report filed by the Advisory Board in the City Clerk's office attached hereto as Exhibit A and incorporated herein by this reference, which includes a proposed budget for Fiscal Year 2021-2022, describing the improvements and activities to be provided. SECTION 2. To levy and collect assessments within the District area for Fiscal Year 2021-2022 as per the assessment schedule listed in Exhibit B attached hereto and incorporated herein by this reference. SECTION 3. The type or types of improvements and activities proposed to be funded by the levy of assessments on businesses within the business improvement area 21-9994/261692 1 Resolution No. 202142 are specified in Exhibit C, attached hereto and incorporated herein by this reference. Further, the improvements, if any, to be acquired for the proposed business improvement area are specified in Exhibit C. SECTION 4. A public hearing shall be held before the City Council on October 5, 2021, at 6:00 p.m., or as soon thereafter as this matter may be heard, in the Council Chambers of the City Hall, 2000 Main Street, Huntington Beach, California, at which time the Council will hear all interested persons for or against levying of the assessment, and the furnishing of specified types of improvements or activities. Protests may be made orally or in writing; but, if written, shall be filed with the City Clerk at or before the time fixed for the hearing and contain sufficient documentation to verify business ownership and validate the particular protest. Any protest pertaining to the regularity or sufficiency of the proceedings shall be in writing and shall clearly set forth the irregularity or defect to which the objection is made. The City Council may waive any irregularity in the form or content of any written protest, and at the public hearing, may correct minor defects in the proceedings. A written protest may be withdrawn in writing at any time before the conclusion of the public hearing set forth above. If written protests are received by the owners of businesses within the District, which will pay 501/o or more of the total assessments to be levied, no further proceedings to levy the proposed assessment shall be taken for a period of one year from the date of the finding of a majority protest by the City Council. If the majority protest is only against the furnishing of a specified type or types of improvements or activity within the District, those types of improvements or activities shall be eliminated. SECTION 5. The City Clerk is hereby directed to provide notice of the public hearing by causing this resolution of intention to be published once in a newspaper of general circulation at least seven days before the public hearing. SECTION 6. Further information regarding the proposed business improvement district may be obtained at the Huntington Beach City Hall, 2000 Main Street, Huntington Beach, California 92648; telephone (714) 536-5582; or from the Huntington Beach Downtown Business Improvement District, 315 3rd Street, Suite E, Huntington Beach, CA 92648, (714) 536-8300. SECTION 7. The City Clerk shall mail a complete copy of this resolution of intention by first-class mail to each business owner in this area within seven days after the Council's adoption of this resolution. SECTION 8. This resolution shall take effect immediately upon adoption. 21-9994/261692 2 Resolution No. 202142 PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 7th day of S tuber 2021. Mayor I ED D T ED: APPROVED AS TO FORM: City Manager City Atto y 21-9994/261692 3 Resolution No. 2021-42 Exhibit "A" +�V'ovFN '�t own ► o at -{ 7; r HBDBID ANNUAL REPORT HUNTINGTON BEACH =.sahe�•y._�_ t:y4�;�G.>.:•�th,4„y�.r��T..-'��'T7�.IL/!Cw�r�i"..:.i DOWNTOWN BUSINESS : ee~ IMPROVEMENT DISTRICT 2020 - 2021 ALONE, CAN SO LITTLE; TOO GETHER,R, WE CAN DO SO MUCH HUNTINGTON BEACH HELEN KELLER EXECUTIVE BOARD: President: Dave Shenkman. The Kite Connection Vice President. Stuart Goldberg, INNOCEAN USA Secretary: Kelly Miller, Visit Huntington Beach Treasurer: Mike Williams. The Longboard • Restaurant & Pub DIRECTORS: Danny Othman. 602 Coffee Janice Tugaoen. Kimpton Shorebreak Resort Jim Hall, Surf City Ale House Mary Eikenbary, Sandy's Beach Shack Sandra Schulz-Taylor. Model Citizen STAFF: Executive Director: Sarah Kruer Marketing Manager: Jaime Strong Office Admin: Jaime Strong ABOUT: Founded in 2004. the HBDBID is a private non-profit 501c6 business-based organization, which is an all-inclusive __~ >-- - collaborative advocate for the entire growing downtown region. We provide clearly defined value and benefits to our -� --~� community and stakeholders. WHAT WE DO Create a thriving Downtown business -- district that delivers on the Surf City USA brand and attracts a quality — clientele year-round. In addition to consumer marketing, events. and = _ member communications, the BID ��—" provides capital services to benefit_ Downtown in conjunction with . the City: Security - Cleanliness _ y. Signage -'- Beautification = = I VISION: To be a sustainable catalyst for a thriving and livable downtown, nationally recognized for its diverse local businesses and authentic, unique culture. Known for being welcoming. accessible, clean, safe, fun, and environmentally conscious. MISSION: To be the advocate voice for our coastal downtown community creating economic vitality and the premier entertainment destination. VALUES: Communication: Education and Service Representative: The advocate voice for all in our community Integrity: Transparency. Honesty, and Respect Strategic Results: Sustainable, ROI Focused. and Efficient Passion: Positivity and Unified in Cause I i}liii ,�ii�,iiii„i i iiiii,�i oil Ok _ V 1 .� •1 �. c. , 1 ,, The Huntington Beach Downtown Business Improvement District exists to contribute to the continued economic growth of Downtown Huntington Beach. as well as the quality of the overall experience for both visitors and locals. These objectives are achieved through a combination of stakeholder communications. business and civic collaboration, positive marketing and promotions. event programming. safety. cleanliness and member engagement The challenges brought on by COVID-19 continued through the end of 2020. spiking with an increase in cases and a second stay-at-home order during the holidays. Dining. previously limited to outdoor. was restricted to takeout only. Retail occupancy shrunk to 20%. posing a steep challenge during December. Offices continued with remote work plans for their employees. Rallies continued periodically at Pier Plaza. causing further disruption to businesses. Despite all these factors. 2021 dawned with a sense of resilience and optimism as cases began to decline and restrictions were slowly lifted Gorgeous weather compelled locals and regional visitors to enjoy Surf City s 10 miles of coastline. biking and jogging paths Outdoor dining patios were full (as were the adjacent trash cans) as local residents patronized Downtown's vibrant retail and restaurant scene. Savvy operators had continued to pivot throughout the preceding months and many (though not all) found themselves well-positioned for recovery with an ample number of economic programs including EIDL and PPP loans providing essential support. While vacancies plagued other destinations. Downtown HB was fortunate to have very few businesses close during the pandemic Overall BID membership declined from 272 to 263 between 2020 and 2021 However. Downtown has seen a positive trend towards new businesses entering the district including restaurants like Jay Bird's and Mahkin and retail like SMKFLWP Surf City Nights returned with great fanfare on March 16. 2021 and has continued to safely attract hundreds of visitors Downtown every Tuesday night. Looking ahead. there are significant opportunities to transform the positive lessons from COVID into lasting aspects of the Downtown experience including an emphasis on cleanliness and safety, an increase in outdoor dining and pedestrian areas. attracting locals and families throughout the year with signature events. and consistently providing an authentic, quality Surf City USA experience to visitors in collaboration with the hotels SECURITY AMBASSADORS The Ambassadors Security program through 12'0"27 Protective Services. aka Big Tony. officially started in 2017 after a pilot program in 2016 and continues to be vital to the weekend safety of Downtown HB. VHB and the BID continue to fund the Ambassadors though adjustments were made to accommodate reduced budgets including a 3 man team instead of the recommended 4-man team through the fall of 2020 and spring of 2021. A 4-man team will return Downtown every Friday. Saturday. and Sunday in 8-hour shifts from July 1st through the first weekend of October. After that they are projected to be on duty two weekends per month based on budgetary constraints. The purpose of the Ambassadors is to establish a rapport and presence with business owners. patrons. and residents of Huntington Beach in the Downtown area. The Ambassadors are not police officers. Their role is to observe and report situations concerning the well-being and safety within the surrounding area. They support the HBPD as needed and within their legal abilities under the law. Their goal is to ensure that all visitors to Downtown HB enjoy themselves and are provided with the safest environment possible. HBPD COMMUNICATIONS The BID appreciates a positive. collaborative relationship with the HBPD. Challenges associated with COVID and weekend rallies only served to increase the value of open. direct communication between organizations to ensure the safety of Downtown HB. In June 2021, the BID. VHB. and HBPD created an informal Downtown Communications Workgroup to foster proactive collaboration and processes between the three organizations. MAINTENANCE & _ BEAUTIFICATION l \ _ COVID placed a spotlight on the importance of cleanliness. Power washing and daily porter service are essential to the maintenance of Downtown HB, which is a very active destination throughout the year. MALCO continued to do an excellentjob providing power washing and porter services during the pandemic. During the mandate for restaurant takeout-only during the winter of COVID made trash collection and frequency even more vital to Downtown HB. While January is typically an off-peak month. mild weather and a dramatic increase in takeout trash prompted the BID and the City of HB to re-evaluate trash collection services. quickly shifting back to an on-peak collection schedule months ahead of time. The BID and the City of HB collaborated on a new RFQ for power washing and porter services in May with the goal of awarding a new contract by August 2021. The objective of the RFQ is to expand the footprint of cleaning services across a larger space while also strategically increasing power washing in the most heavily trafficked areas. J--YfN- �!a+ rri tslPtaF .x,Y TOURISM s TOFF BEACH _4_ r - Y a l i ourism plays a Key role in riunnngcon beacn s currenc ana long-term economic prosperity and helps generate more business opportunities for Downtown. The decline in travel due to COVID-19 devastated the U.S. economy with a shocking impact of nearly $500 billion lost in travel spending - a decrease of 36% domestically and 79% internationally since the beginning of March 2020'. To encourage support for local HB businesses, the Downtown BID partnered with Visit Huntington Beach on local campaigns throughout 2020-2021 such as the OneHB Clean & Safe Pledgg, "Masks Up. Surf City," 12 Blocks of Cheer and Show Your HB Love. As the vaccination rollout continues and infection rates are falling, Huntington Beach is well positioned to welcome visitors safely and has seen significant improvements in occupancy rates with weekends approaching pre- pandemic levels. The return of Huntington Beach's signature events and reopening of Southern California theme parks and attractions has brought strong visitation numbers to the destination. With travel momentum building and pent-up demand generating bookings. Visit Huntington Beach will continue to market and sell the Surf City USA brand experience to extend the length of overnight stays. rebuild workforce and increase visitor spending. ' Source U S Travel Association BID MEMBER OVERVIEW AND ZONE ANALYSIS o d "• .rw.w... � b G I wr..vrv1 ... .e . p Huntington Beach ' Downtown Business Improvement District Boundaries and Benefit Zones 1&2 THERE ARE CURRENTLY 261 ACTIVE BUSINESSES IN THE DOWNTOWN BID IN ZONE 1 AND 2 . R ! n fAQQF: SGM5: 1IlT rNeDT Assessment Chart Oct. 1, 2021 - Sept. 30, 2022 Category Benefit Zone 1 Benefit Zone 2 Retail 1,000 sq. ft. or less $351 $200 1,001 - 2,500 sq. ft. $702 $400 2,501 - 4,999 sq. ft. $1,053 $600 5,000+ sq. ft. $1,404 $800 Restaurants 1,000 sq. ft. or less $351 $200 1,001 - 2,500 sq. ft. $702 $400 2,501 - 4,999 sq. ft. $1,053 $600 5,000+ sq. ft. $1,404 $900 Hotels 20 rooms or less $468 $400 21 - 50 rooms $936 $800 S1 rooms or more $1,404 $1,200 Services/ Office 1st Floor $281 $160 Basement, 2nd Floor or Higher 1,000 sq. ft. or less $120 $90 1,001 - 2,500 sq. ft. $150 $120 2,501 - 4,999 sq. ft. $300 $150 5,000+ sq. ft. $700 $350 Cart/ Kiosk $100 $80 Banks/ ATM $600 $400 Seasonal, 9 mos or less $500 $300 ZONE 1 ANALYSIS Of the 162 businesses in Zone 1, 103 - or 64% - are either a restaurant or retail establishment and they are almost evenly represented. Together, restaurants and retailers generate 86% of BID assessment fees in Zone 1. At 44, Offices/ Services represent the third largest category of business in Zone 1, indicating a vibrant mix of social and professional operations within the area. Employees returning to their offices after COVID will have a positive impact on Downtown as this audience contributes to meaningful dining and shopping revenue during the week. zone 1 Zone 1 Carts 13 51o0 51,100 Carts 13 $1,300 gel Hote,s 1 $1,404 2O,r i.,, Restaurants $3 $43,173 2: 50 SO. 1 51.404 $1.404 Retail 5o $32.292 Bake 1 $600 $600 Service/Office 44 $9,331 Restaurants Bank 1 $600 53S100 12 $4.212 162 $88,100 S702 00 IB S12 636 $1,05300 17 517.901 51.40400 6 $9.424 ZONE 1 S3 $43,173 $43.173 ._ Mud xs nm 535100 21 $7,371 mm 570200 20 $14,040 mr $1.053.00 5 $5,265 °� $1.404.00 4 55.616 SO $31,292 Maa tar wr rw.. rr My 4r 5ernce/Office a" S28100 11 S3.091 $12000 27 $3,240 $150.00 0 $o 530000 3 $900 S70000 3 $2,100 44 $9,331 am $111f16= ZONE 2 ANALYSIS Of the 99 businesses in Zone 2, 54 - or 55% - are either a restaurant or retail establishment with the majority being retail at 45. Together, restaurants and retailers generate 68% of BID assessment fees in Zone 2. At 37, Offices/ Services represent the second largest category of businesses in Zone 2, indicating a shift to retail and professional operations within the area which is in easy walking distance from all areas of Downtown. Zone 2 Zone 2 Seasonal 6 $300 $1,800 Seasonal 6 $1,800 Motet Hotels 1 5400 20/less 1 5400 $400 Banks 1 $400 21-50 Restaurants 9 $3,700 SO. Retail 4S $12,400 Banks 1 $400 $400 Seance/Office 37 54,860 Restawants 99 $23,560 $200,00 3 5600.00 5400.00 4 $1.600,00 $600 00 1 $600 00 5900.00 1 S900.00 .�., 9 $3,700.00 $3,700 Retail 4O01 5200,00 33 56,600.00 .om m _� $400.00 9 $3,600.00 e � s.m 1 w � 1 $600.00 1 $600.00 ». w ~• w.. a.. SSW 00 2 51.600 00 4S $12,400 AO $12,400 Service/Office 5160.00 21 53,360.00 $9000 14 $1,26000 $120.00 2 S24000 $150.00 0 $0.00 $35000 0 5000 37 S4,UO.00 $4,860 $23,560 BID MEMBERSHIP Outside of Zones 1 and 2, two hotels. the Hyatt Regency Huntington Beach Resort & Spa and The Waterfront Beach Resort, a Hilton Hotel, both elected to voluntarily rejoin the BID in January 2021. • There are no changes from the 2018-2019 Assessment Formula. • Assessments are paid annually as a mandatory requirement to receive and/or renew a business license for organizations operating within the Business Improvement District. • Assessment excluded for apartments, real estate agents, non-profits, home-based businesses and temporary vendors. • Business and non-profit organizations outside the area may join with the approval of the BID Board by paying the equivalent fee annually. • Non-profit organizations within the BID Assessment Zone can voluntarily participate by paying $30 to the HB Downtown BID directly. NEW BID MEMBERS: Jay Bird's: Nashville Hot Chicken. Mahkin (Opening Date July 2021 ), Diane's Bikinis (New Owners), Aloha Grill (New Owners). Haus of Bunnies (Opening 2021 ), Hidden Beauty OC. SMKFLWR FINANCIALS ASSESSMENTS As of June 30th, the BID had collected 55% of projected annual assessments. The City completed a much-anticipated integration of the annual business license fee and BID assessment fees into one invoice in May 2021. The BID anticipates this will help with monthly assessment collections bringing the total closer to the annual projected amount. w�wara � _+ flw Mwt jw1�1NcYeIIMM � YNYII�NYM1 RYtf Y1—� �R NW raw T, � .rCR r• rYN�1� NYYN/Y'N�r►r✓• �N NRY rWrrN•• y err NYrYsrYr•N�� ti M�� YPW rrNrl� rw N,�� rYYYY w �7A��r1 Y RYNMY YAW Ate• ,��N• NNIN A•\NW ,lM� •ram��,rN��wNR�rrrY�NrrrY�r�r�NW� NYiw r r 1A1Y{�6 r r Ow�rrM EIDL LOAN In late October 2020. the BID applied for an EIDL loan, which was awarded in the amount of $150.000 on Dec. 31. 2020. $50.000 was placed in the BID's Main Account for use as operating capital. $100,000 was placed in the Reserve account to meet min. funding requirements. On June 19th, the BID began the process of requesting approx. $45,300 in additional EIDL funds. CITY OF HB COVID GRANT On May 24th, the BID applied for a COVID-19 Relief Grant through the City of Huntington Beach. The BID received confirmation that it would receive an award of $10.000 on June 14th. The funds will be placed in the BID's Main account to use for marketing and operating expenses for the 2021- 2022 fiscal year. Huntington Beach Downtown Business Improvement District Statement of Financial Position As of June 30, 2021 TOTAL ASSETS Current Assets Bank Accounts 1020 First Bank Main Acct 1.274.11 1030 First Bank -MM 160.733.80 1040 First Bank -Malco 25,692.16 Total Bank Accounts $187.700.07 Other Current Assets 1330 Prepaid Rent 500.00 Undeposited Funds 000 Total Other Cuf w Assets $500.00 Total Cumern Assets $188200.07 Fixed Assets 1640 Machinery 8 Equipment 11.651.68 1660 Office Equipment 538.74 1670 Computers 1,306.31 1700 Accumulated Depreciation -13.496.73 Total Fixed Assists $0.00 TOTAL ASSETS $188200.07 LIABILITIES AND FOUITY Liabilities Current Liabilities Other Current Liabilities 2080 Payroll Clearing -185.08 2100 Payroll Tax Payable -853.29 Total Other Current LIa6Yli $-1,038.37 Total Cuffed[Liabilities $-1.038.37 Long Term Liabilities 2400 Notes Payable- SBA FIX 150.000 00 Total Long-Term Llablltlies $150.000.00 Total I.Jabillbas $148,961.63 Equity 3100 Unrestncted Net Assets 122,544.38 Retained Earnings 0.00 Net Revenue -83.305 94 Total Equity $39,238.44 TOTAL LIABILITIES AND EQUITY $188,200.07 Cash Basis Monday.July 12.2021 04 52 PM GMT-07 00 � 1 Huntington Beach Downtown Business Improvement District Budget vs. Actuals: 2020-2021 Budget - FY21 P&L October 2020-June 2021 TOTAL ACTUAL BUDGET OVER BUDGET %OF BUDGET Revenue 4050 BID Assessments 53.757.00 98.000.00 -44.243.00 54.85% 4100 Chili at the Beach 25.000.00 -25,000.00 4300 Surl City Nights 92.177.40 87.500.00 4.677.40 105.35% 4400 Surf City Days -10.000.00 -10.000.00 4500 Miracle on Main 5.000.00 -5,000.00 4600 Main St. Outdoors 3,000.00 -3,000.00 4650 Families Forward 11,000.00 -11,000.00 4800 City of HB Maintenance 128.276.00 133.578.00 5.302,00 96,03% Unapplied Cash Payment Revenue 0.00 0.00 Total Revenue $264,210.40 $363,078.00 $-98,887.80 72.77% Cost of Goods Sold 5100 Rental&Setup 7,583.00 15.000,00 -7,417.00 50.55% 5150 Parking 561.00 4,500.00 -3,939.00 12.47% 5200 Street Cleaning 1.600-00 -1,600.00 5250 Street Closure 2,400.00 -2.400.00 5300 Event Expenses 1.853.30 20,150.00 -18.296.70 9,20% 5330 Entertainment 143,12 143.12 Total5300 Evert Expenses 1,9%.42 20,150-00 -18,153.50 9.91 % 5500 Miscellaneous 3,000.00 -3,000.00 5600 Holiday Beautification 15.105,00 35,000.00 -19,895,00 43.16% 5800 Malco Maintenance 107,169,00 124,578.00 -17.409 00 86,03% Total Cost of Goods Sold $132,414.42 $206,228.00 $-73,813.58 64.21 % GROSS PROFIT $131,795.98 $158,850.00 $-25,054.02 84.03% Expenditures 7010 Advertising & Marketing 2.321.75 12.000.00 -9,678.25 19,35% 7050 Bank Charges& Fees 462.81 6.900.DO -6.437.19 6.71 % 7070 Consultants 119.516.00 110.997.00 8,519,00 10T67% 7100 Dues&subscriptions 290.00 2.250,00 -1.960.00 12.89% 7150 Insurance 3,1 15.56 1.900.00 1,215.56 163.98% 7155 Workers Comp Insurance 201.00 1,100.00 -899 00 18,27% Total 71501nsuranos 3,316.56 3,000.00 316.56 110.55% 7170 Legal &Accounting Services 4,955.00 5.450,00 -495.00 90.92% 7190 Meeting&Training 477,61 1.200.00 722.39 39.80% 7191 Election 1,726,44 1.726.44 7200 Miscellaneous Expense 8.38 8.38 7210 Office Supplies 1.87443 2.250.DO -375 57 83.31 % 7240 Payroll Expenses 7242 Wages-Administrative Assistant 6.984.67 11.700.00 -4,715 33 59.70% 7250 Payroll Taxes 578,89 1_490.00 -91 1.it 38.85% 7255 Payroll Processing Fees 968,91 1.250.00 -281 09 77.51 % Total 7240 Payroll Expenses 8,532.47 14,440.00 -5.907.63 59.09% Cash Basis Monday.July 12,2021 D4:57 PM GMT-07.00 112 Huntington Beach Downtown Business Improvement District Budget vs. Actuals: 2020-2021 Budget - FY21 P&L October 2020-June 2021 TOTAL ACTUAL BUDGET OVER BUDGET % BUDGET 7280 Postage 93.50 93.50 7290 Rent& Lease 11,700.00 12,200.00 -500.00 95.90% 7300 Repairs& Maintenance 50.00 360.00 -310.00 13.89% 7310 Security 7315 Ambassador Program 55.323.47 24,000.00 31.323.47 230.51 % Tofa17310 Saeurlly 55,323.47 24,000.00 31.323.47 230.51 % 7320 Taxes&Licenses 869,00 1,400,00 -531_00 62,07% 7330 Telephone 1,707.32 1,645.00 62.32 103.79% Quick800ks Payments Fees 1,891_43 1.891.43 Tohl Expwldllune $215,116.17 $198,092.00 $17.024.17 100.59% NET OPERATING REVENUE $-83,320.19 $-/1,242.00 =12,079.19 202.03% Other Revenue 8000 Interest Earned 14.25 14.25 Total Ottw P~uo $14.25 $0.00 $14.25 0.00% NET OTHER REVENUE $14.25 S0.00 $14.25 0.00% NET REVENUE 3-8l,306.94 :i1,242.00 912,063.94 201.99% Cash Bans Monday.July 12.2021 04 57 PM GMT-07 00 2/2 888888888 8 8 8888888888888888888 a 8888888888888 8 R BAO RAA $ 9.88A, § § ? § :§ § 518p $ B § §, BA o 2 88 8 8 8 88888 8888888888888 888888 . � A g� aa � ggaASLSt 9 9 88 8 8 88888 8888888888888 888888 8� £ ekA? g9RAAAA § 88 8 8 88888 8888888888888 88888 A 8 8$St 8 A 8 A S 8 8 R A R A 5 8 8 8 Q x 88 88 8 88888 8888888888888 8888888 A -9- 5t �. G 88 "8 8 8888888888888888888 888888 ~ � A8A8 � AS« � BRA5-tSt Z 88 8 8 88888 8888888888888 8 88888 8St St 8S St 8 8 � 88 8 8 88888 8888888888888 888888 a95t? � BRAAA� � Y 9@ � � Wry 88 8 8 88888 8888888888888 888888 5taAA: 88RAA A� 85 88888, m B8 8 8 a 8888888888888888888 888888 5t " 8 88 8 88888 8888888888888 888888 e$ 8 8.A518 � 8R 8� 889R _ R� BL AAAAA ~ «a a « ~_ 8 88 8 8 88888 8888888888888 888888 888 8R BA 88SA _ AaIr AAAAA A$ § 8 88 8 a 88888 8888888888888 888888 8 � - 5L5185t 8A8 H88A 5t88 AAAAA A " s b-I St ► M SOCIAL MEDIA �► NSTAGRAM: • Started July 2020 • Followers:3.41313 • • Growth.333 new followers per month ' • Advertising spend:$120.00.5.04 cent � � 1 acquisition cost ' FACEBOOK • Relaunched:October 2020 -- • Followers:3,025 • Growth.336 new followers per month • 100%organic growth COMMUNICATIONS _ • Downtown Blogs _ • Press Release: Surf City Stroll. Surfer's Special and Surf Festival and Rockin Fig Bowl BID Member Emails like • - Downtown. Did You KnovJ? and Member Newsletter KFOUT ALCOHOL POLICY Consumer Messaging C ,. •, MEDIA COVERAGE •� :�-� d %�IR�= 11111111, c,gR Rockin Fig Surf Festival BREAK NCG • OC Register, Daily Pilot. Spectrum News and KTLA Channel 5 BREA Kl NC Surf City Nights VAE V4 • OC Register and Daily Pilot C SOCIAL HIGHLIGHTS DINE SHOP �,A PLAY 4 LIH COMMUNITY • I w'�'� .�' �} ' ,~ r. r I •I' �.�� ter. HBDBID EVENTS ■ SURF CITY FARMERS' MARKET The Surf City Farmers Market was opened in September of 2020 to provide essential needs for our community. Operating in a smaller f footprint, Main Street and Olive Ave. 10-12 vendors supported the r market through the re-opening of Surf City Nights in March 2021. i; + I SURF CITY MARKET PLACE 1 The Surf City Marketplace was a new open-air boutique retail destination of 4-6 vendors from October - December. The ,7 'Marketplace was located at the ease of the 3rd block of Main Street during its closure adjacent to the Post Office 5.' KEEP ON CRUISIN NOV Based on the success of the Rockin Fig 0 0 p /�.S_T event. the BID collaborated with _ HBBCeasynder to produce a safe. family- O -' friendly outdoor event that celebrated cruising culture and the joys of two wheels. While November 14. 2020 was admittedly a challenging date to navigate because of , increasing COVID restrictions, the open air activation complied with all health and safety guidelines and was considered a success ROCKIN ' FIG °gyro,&, VINTAC?r SURF FESTIVAL O N O ti i 1 A ceieorauon or one or aurr t_rty s great personauues. KOCKrn rig, ano me 'local's block' of Main Street. the Rockin Fig Vintage Surf Festival was a block-wide activation that safely brought several hundred people to the 3rd block to enjoy entertainment, exhibits. shopping. and dining on Oct. 17. 2020. The event garnered lots of positive press coverage including the LA Times. OC Register and Spectrum News. All business on the 3rd block participated in the event by offering special and unique activities that demonstrated the creative collaboration businesses embraced during COVID. In 2021, the 2nd Annual Rockin Fig Vintage Surf Festival will be incorporated into Surf City Days. SURF CITY NIGHTS Surf City Nights successfully returned to Downtown HB on Tuesday. March 16th with a new footprint and reimagined I vendor mix.At approximately 50 vendors. the street fair is half the original size in terms of vendors, but occupies the same footprint creating a wonderful Flow up Main Street from PCH to Orange The outdoor dining patios on the 2nd block entice visitors to linger over dinner and the expanded vendor spacing has improved sightlines between vendors and businesses Surf City Nights has three distinct zones: Surf City Farmers' Market. 'Restaurant Row' on the 2nd Block of Main Street. and the Surf City Collective which features unique retail and lifestyle merchants that complement the 3rd block businesses tl�► k A commission structure was added to M�ixc" selected vendor categories which helped increase profitability of the event even at a reduced footprint. Local businesses embraced the return I '' of Surf City Nights. The most notable being Avila El Ranchito's introduction of the Mercado Margarita. a weekly Flavor inspired by shopping the market each week. Available only on Tuesday nights, the Mercado Margarita often sells out. Another great example of creative collaboration to showcase i Downtown HB in a fresh way. UPCOMING EVENTS SURF CITY MOVIE NIGHTS In partnership with the International Surfing Museum. Surf f City Movie Nights is scheduled for Fall of 2021. Through the help of sponsorships. we will be able to bring classic surf cinema to Downtown Huntington Beach. SURF CITY DAYS Surf City Days were on hiatus in Fall 2020. In October 2021. the event ® will return to Main Street and Pier �'- Plaza. Local's favorite. HSS Demo Days, will return to the first block of Main Street. The 2nd Annual Rockin Fig Vintage Surf Festival will be added to the event this year for more exposure to all of Downtown. HOLIDAYS 2021 Halloween and Miracle on Main Street, were on hiatus in Fall 2020. We are excited bring the spirit of the season back to Downtown in 2021. Locals and guests will enjoy the annual Trick or Treating with our businesses and the return of Miracle on Main Street. \�Q�101 f.MFyl oownrown J. a HBDBID ANNUAL REPORT HUNTINGTON BEACH DOWNTOWN •` ' 1 v BUSINESS - IMPROVEMENT DISTRICT 2021 - 2022 HUNTINGTON BEACH ABOUT: Founded in 2004. the HBDBID is a private non-profit 501c6 business-based = = organization, which is an all-inclusive collaborative advocate for the entire growing downtown region. We provide ewe clearly defined value and benefits to our community and stakeholders. a— WHAT WE DO - " create a inriving uowniown ousiness - district that delivers on the Surf City ��— USA brand and attracts a quality clientele year-round. In addition to consumer marketing. events. and member communications. the BIDS"= _ provides capital services to benefit Downtown in conjunction with the City: - Security = _ Cleanliness -._--- Signage Beautification . . _ _ -_ VISION: To be a sustainable catalyst for a thriving and livable downtown. nationally recognized for its diverse local businesses and authentic, unique culture. Known for being welcoming, accessible. clean, safe. fun, and environmentally conscious. MISSION: i o oe the aavocate voice Tor our coastal downtown community creating economic vitality and the premier entertainment destination. VALUES: communication: taucation ana )ervice Representative: The advocate voice for all in our community Integrity: Transparency. Honesty, and Respect Strategic Results: Sustainable. ROI Focused. and Efficient Passion: Positivity and Unified in Cause SECURITY AMBASSADORS The Ambassadors Security program through 12'0-27 Protective Services. aka Big Tony. officially started in 2017 after a pilot program in 2016 and continues to be vital to the weekend safety of Downtown HB. The purpose of the Ambassadors is to establish a rapport and presence with business owners. patrons. and residents of Huntington Beach in the Downtown area. The Ambassadors are not police officers. Their role is to observe and report situations concerning the well-being and safety within the surrounding area. They support the HBPD as needed and within their legal abilities under the law. Their goal is to ensure that all visitors to Downtown HB enjoy themselves and are provided with the safest environment possible. VHB and the BID co-fund the Ambassadors. For 2021-2022 VHB will contribute $30.000 and the BID will contribute $40.200 based on current budget allocations. A 4-man team working an 8-hour shift is scheduled Downtown every Friday. Saturday. and Sunday through the weekend of Oct. 3rd to coincide with the Air Show. After that. the Ambassadors will be scheduled as a 3-man team on specific holiday and event weekends through the fall and spring of 2022. HBPD COMMUNICATIONS The BID communicates frequently and works in partnership with HBPD In June 2021. the BID. VHB. and HBPD created an informal Downtown Communications Workgroup to foster proactive collaboration and processes between the three organizations. The BID attends HBPD security briefings related to events planned for Downtown. MAINTENANCE & BEAUTIFICATION gg t_ yti� uowntown rats is a very active aesiination ano requires rrequent. inorougn cleaning. MC5 was awarded the cleaning and maintenance contract after the City distributed a new RFQ in June 2021. The new contract provides increased frequency of power washing along heavily-trafficked areas of Downtown while also expanding the coverage area to reach more businesses. Daily porter service is the second component of the contract. The BID often increases porter staffing over holdiay and event weekend. MAINTENANCE ft BEAUTIFICATION I \ ' — y 1 Zone 1 Power Washing: On Peak = 2 x week, Off Peak = 1 x week s 1 4 F�7 EXHIBIT B Downtown Maintenance • - ' - -.tea u-: MAINTENANCE & _ BEAUTIFICATION -71 j7r ;�T' '�w Zone 2 Power Washing: On Peak = 2 x month, Off Peak = 1 x month AL .0 �®1 EXHIBIT C Downtown Maintenance = MAINTENANCE & BEAUTIFICATION Zone 3 Power Washing: Monthly Alley and Gutters ♦ it-� � } q� �p. �(I_'� , `lC W 4� a EXHIBIT Downtown Maintenance "'`"•"""" rs,�w�r BID MEMBER OVERVIEW AND ZONE ANALYSIS SSS} e 2 � lC I+Ys b 2 Huntington Reach Downtown Business Improvement District Boundaries and Benefit Zones 1&2 THERE ARE CURRENTLY 261 ACTIVE BUSINESSES IN THE DOWNTOWN BID IN ZONE 1 AND 2 . Pin ACC1= CC1U11Pk1T r14ADT Assessment Chart Oct. 1, 2021 - Sept. 30, 2022 Category Benefit Zone 1 Benefit Zone 2 Retail 1,000 sq. ft. or less $351 $200 1,001 - 2,500 sq. ft. $702 $400 2,501 - 4,999 sq. ft. $1,053 $600 5,000+ sq. ft. $1,404 $800 Restaurants 1,000 sq. ft. or less $351 $200 1,001 - 2,500 sq. ft. $702 $400 2,501 - 4,999 sq. ft. $1,053 $600 5,000+ sq. ft. $1,404 $900 Hotels 20 rooms or less $468 $400 21 - 50 rooms $936 $800 S1 rooms or more $1,404 $1,200 Services/ Office 1st Floor $281 $160 Basement, 2nd Floor or Higher 1,000 sq. ft. or less $120 $90 1,001 - 2,500 sq. ft. $150 $120 2,501 - 4,999 sq. ft. $300 $150 5,000+ sq. ft. $700 $350 Cart/ Kiosk $100 $80 Banks/ ATM $600 $400 Seasonal, 9 mos or less $500 $300 ZONE 1 ANALYSIS Of the 162 businesses in Zone 1. 103 - or 64% - are either a restaurant or retail establishment and they are almost evenly represented. Together, restaurants and retailers generate 86% of BID assessment fees in Zone 1. At 44, Offices/ Services represent the third largest category of business in Zone 1, indicating a vibrant mix of social and professional operations within the area. Employees returning to their offices after COVID will have a positive impact on Downtown as this audience contributes to meaningful dining and shopping revenue during the week. Z+on91 Zone 1 Carts 13 5100 51,300 Carts 13 $1,300 Hon4 Hotels 1 $1,404 20l Restaurants 53 543,173 2150 so. 1 51.404 51,404 Retail SO $32,292 flanks 1 560o S600 Service/Office 44 59,331 Rests rams Bank 1 $600 535100 12 S4.112 162 588,300 570200 is S12.636 $1.05300 17 517,901 $1.404.00 6 S8.424 ZONE 1 S3 $43,173 $0,171 314tail 535100 21 $7.371 temp 5702 00 20 $14.040 Am aetw $1.053.00 5 S5.265 nOe $1,40400 4 55,616 e�i� IUt9k 1310e Y N _ _I Ikll -- 50 $32,292 Sill 4 cw wr ar.w. r� t.wK 4w Sil Office a� $28100 it 53.091 $12000 27 53.240 $350.00 0 So $300 00 3 S900 S700 01 3 $2.I00 M S9,331 $9,331 SU.100 ZONE 2 ANALYSIS Of the 99 businesses in Zone 2. 54 - or 55% - are either a restaurant or retail establishment with the majority being retail at 45. Together, restaurants and retailers generate 68% of BID assessment fees in Zone 2. At 37, Offices/ Services represent the second largest category of businesses in Zone 2, indicating a shift to retail and professional operations within the area which is in easy walking distance from all areas of Downtown. Zone 2 2one 2 Seasonal 6 $300 $1,800 Seasonal 6 $1.800 Hotel Hotels 1 5400 20/less 1 5400 5400 Banks 1 5400 21-50 Restaurants 9 $3,700 50. Retail 45 $12,400 Banks 1 $400 $400 Servce/Office 37 $4,860 Restaurants 99 523.560 5200.00 3 $600.00 5400-00 4 51,600.00 5600 00 1 5600.00 5900.00 1 5900.00 9 $3,700.00 $3,700 Retail $200.00 33 $6,600.00 ra $400.00 9 $3.600.00 tr.� Tes Ma ,Ww, M� Lwr $800.00 2 $1,600.00 45 $12,400.00 $12,400 Service/Office $160.00 21 $3,360.00 $9000 14 $1,260.00 $120.00 2 $240.00 $150.00 0 50.00 $35000 0 50.00 37 $4,961 $4,860 $23,560 BID MEMBERSHIP Outside of Zones 1 and 2. two hotels, the Hyatt Regency Huntington Beach Resort & Spa and The Waterfront Beach Resort, a Hilton Hotel, both elected to voluntarily rejoin the BID in January 2021. • There are no changes from the 2018-2019 Assessment Formula. • Assessments are paid annually as a mandatory requirement to receive and/or renew a business license for organizations operating within the Business Improvement District. • Assessment excluded for apartments, real estate agents, non-profits, home-based businesses and temporary vendors. • Business and non-profit organizations outside the area may join with the approval of the BID Board by paying the equivalent fee annually. • Non-profit organizations within the BID Assessment Zone can voluntarily participate by paying $30 to the HB Downtown BID directly. NEW BID MEMBERS: Jay Bird's: Nashville Hot Chicken, Mahkin (Opening Date July 2021 ). Diane's Bikinis (New Owners), Aloha Grill (New Owners), Haus of Bunnies (Opening 2021 ). Hidden Beauty OC. SMKFLWR FINANCIALS ASSESSMENTS As of June 30th, the BID had collected 55% of projected annual assessments. The City completed a much-anticipated integration of the annual business license fee and BID assessment fees into one invoice in May 2021. The BID anticipates this will help with monthly assessment collections bringing the total closer to the annual projected amount. r tract r.�Y fir;Mrl N.lrll ilk ir1�N.KA•Y 1�1MO 1 rrw ws �rn wrnr+ .Yti..nY YeP rnw• ... r..a r�.�W Yr1Y rrrrr� PW YPY .r.esurrwr• • •Y YPUProrrrsa r �r M.r�.r PY\.� wPP P1O Y.PPYrrrYT r rIA�.r�r 1Yr.MwArn r.r./�. �nr.Y1Y1 ryw Prr\MMPrrr��PY�I�IrYr} r•. M ti r ti rr�r .�rw YPY'• r.PY an..a PRE r rr EIDL LOAN In late October 2020, the BID applied for an EIDL loan, which was awarded in the amount of $150.000 on Dec. 31, 2020. On Jan. 5. 2021 $50,000 was placed in the BID's Main Account for use as operating capital to cover expenses such as rent and staff costs. $100,000 was placed in the Reserve account to meet min. funding requirements. On June 19, 2021, the BID began the process of requesting approx. $45,300 in additional EIDL funds. CITY OF HB COVID GRANT On May 24, 2021. the BID applied for a COVID-19 Relief Grant through the City of Huntington Beach. The BID received confirmation that it would receive an award of $10,000 on June 14th. The funds will be placed in the BID's Main account to use for marketing and operating expenses for the 2021-2022 fiscal year. Huntington Beach Downtown Business Improvement District Statement of Financial Position As of June 30, 2021 TOTAL ASSETS Current Assets Bank Accounts 1020 First Bank-Main Acct 1,274.11 1030 First Bank-MM 160.733.80 1040 First Bank -Malco 25.692.16 Total Bank Acoourris $187,700.07 Other Current Assets 1330 Prepaid Rent 50000 Undeposited Funds 0.00 Total Other Current Ase4M M.00 Total Current Assets $1882W.07 Fixed Assets 1640 Machinery S Equipment 11.651.68 1660 Office Equipment 538.74 1670 Computers 1.30631 1700 Accumulated Depreciation 13,496,73 Total Fixed Assft $0.00 TOTAL ASSETS $1882W.07 LIABILITIES AND EQUITY Liabilities Current Liabilities Other Current Liabilities 2080 Payroll Clearing 18508 2100 Payroll Tax Payable 85329 TOW Oiler Current Lk"des $-1,038.37 TOW Current Lkd)wes $-1,038.37 Long-Term Liabilities 2400 Notes Payable- SBA EIDL 150.000.00 Total Lora-Term Llabilld" $180,000.00 Total Liabilities $148,961.03 Equity 3100 Unrestricted Net Assets 122.544 38 Retained Earnings 0.00 Net Revenue -83 305 94 TOW Equity $39,238,44 TOTAL LIABILITIES AND EQUITY $188,200.07 Cash Basis Monday.July 12.2021 04 52 PM GMT-07 00 8888888888 8 88888888888888888 888888 a a 8888888 8 s s 888 8 8 888888888888888g88 888888fl 8 5 ass 8 8 88888888888 s a s s 88 8888888 8 e 89A5t RFC s »I a q§ § s a 888 8 8 88888888888888888 8888888 8 : � d assS� st RF s» § a # 888 8 8 8 888888888888888g88 88888888 5t? � $ E � 888R a9— 5l » S "s & s $ „ a a � C 888 8 8888888888888888 a 8888888 „ 888 $ 8 88888888888888888 8888888 H o st R � R » 8 5t � » o Ra a � 0 8fl8 8 88888888888888888 8888888 8. � a EaaRR85t st st 5t 1: $ 5t # f sa W 888 8 88888888888888888 8888888 8 sBaRR99RR8 , st » IM -- § §§a § A- # - � 888 8 88888888888888888 8888888 e asa a aasaaassaflaaaasas sa88888 888 8 88888888888888888 8888888 8 888 8888 8 88 8 88888888888888888 8888888 8 8 3 § 8 � � � gsaRR � Ra � s � A # @ s Y W � 3cr b E �533P3 5 S # ay $ YiS ixs kxx 3a 3 MARKETING SOCIAL MEDIAINSTACPAM . • Started July 2020 • Growth Followers.3.413 Growt• h.333 new followers per month • Target.6.000 followers by June 2022 wqD FACEBOOK • Relaunched.October 2020 . • Followers:3,025 • Growth:336 new followers per month • 100%organic growth • Target 6.000 followers by June 2022 DO%% NTONN' COMMUNICATIONS ..�_..—. _ Rebrand the HBDBID to create %i clearer identity and increase ~ brand equity _ BID Blogs and Member Emails y ' like Downtown, Did You Know.) t and Member Newsletter Enhanced Website with Sections for Businesses and Visitors and Event Calendar ',FOUT ALCOHOL POLICY 411 I Event Promotions MEDIA OUTREACH YCi BREAK M NG • Press Releases 0 • Media Alerts � BREAK9NGc • FAM Tours ~A�%M S� • Media Event Invitations BREAK\NC Ve w Iuwlve twe�uw�ve taaa� SURF CITY NIGHTS Surf City Nights successfully returned to Downtown HB on Tuesday. March 16th. 2021 with a new footprint and reimagined vendor mix. At approximately 50 vendors. the street fair is half the original size in terms of vendors. but occupies the same SURF CITY footprint creating a wonderful flow up N!IGHTS Main Street from PCH to Orange. Theoutdoor dining patios on the 2nd block entice visitors to linger over dinner and .RRCNn the expanded vendor spacing has �rR+ Ti REACH improved sightlines between vendors and businesses Surf City Nights has three distinct zones: Surf City Farmers Market. 'Restaurant Row'on the 2nd Block of Main Street, and the Surf City Collective which features unique retail and lifestyle merchants that complement the 3rd block businesses. f .k A commission structure was added to selected vendor categories which .: helped increase profitability of the ' event even at a reduced footprint. Local businesses embraced the return f ,' of Surf City Nights. The most notable being Avila El Ranchito's introduction �s of the Mercado Margarita. a weekly flavor inspired by shopping the market . each week. Available only on Tuesday nights. the Mercado Margarita often sells out: it's a great example of creative collaboration to showcase Downtown HB in a fresh way -- UPCOMING EVENTS SURF CITY MOVIE NIGHTS ! In partnership with the ,. International Surfing Museum. Surf r City Movie Nights is scheduled for VW Fall of 2021. Through the help of sponsorships.we will be able to bring classic surf cinema to Downtown Huntington Beach. SURF CITY DAYS o In October 2021. Surf City Days will return to Main Street and Pier ` Plaza. Local's favorite. HSS Demo Days. will return to the first block of Main Street. The 2nd Annual Rockin Fig Ventage Surf Festival will be added to the event this year for more exposure to all of Downtown. HOLIDAYS 2021 The spirit of the season returns Downtown in 2021. Activities are , being planned for both nights of Halloween weekend with the traditional trick-or-treating Downtown on the 31st. Enhanced decorations and the return of Miracle on Main Street is planned for Holiday 2021. LOOKING AHEAD CHALLENGES REVENUE Projected Annual BID Assessment Revenue is just 18% of the budget. Recurring event revenue with Surf City Nights has proven to be very robust, but the total footprint is still about 50% of what it was pre-COVID. Surf City Nights revenue is projected to be 31% of the annual budget. Individual Signature Events like Surf City Days and Chili at the Beach are expected to be profitable, but frequent one-off events are not supportable with current BID staffing. IMPROVEMENTS • Rebrand BID with a user-friendly name, i.e. Explore Downtown HB, DTHB, or Experience Downtown HB • New Seasonal Events: examples include a Summer Kick-off event and possible monthly lifestyle events • Annualized Calendar of Events to Increase Shoulder Season Programming • Double Social Media Followers and Engagement • Redesign and Expand Website Content to Feature Different Sections for Businesses and Visitors • Increase Clarity and Value of BID Membership through Marketing, Member Communications, Services. and Programming Resolution No. 2021-42 Exhibit "B" BOUNDARY MAP � f a a i( !. �'•.• O, • i� rrr.vr.n �•M.Y•Vt, �j i 1 :I lr •p V I _ Y.�1..; •_ 2 a•.... ., n' Yp.r f ti . Iwap � 2 L• 1.DN M. a T �q w •l. W��6 I•�•.r. i 'Cu f en I•Y•r�•P •O •l��b D• 1` •,Y•�4�O�� 2l Huntington Reach Downtown Business Improvement District Boundaries and Benefit Zones 1&2 Businesses to be Assessed—FY 2021-2022 Business Name: ZIMBABWE HB GIFTS & ACCESSORIES (CT) SHOREBREAK HOTEL THE IRISHMAN BOLTTOURS PEDEGO H B SALT HAIR LOUNGE ESTHETICS AND LASH EXTENSIONS BY HANNAH ARIA HOOKAH LOUNGE SALT LIFE LLC JACK'S SURFBOARDS CVSIPHARMACY #819 MODERN PARKING INC SMILES CAFE GENTLE DENTAL HUNTINGTON BEACH MAIN STREET CLEANERS BOGGELN & COMPANY CPA E J I DESIGNS STYLING BY STEPH /THE BLONDE ROAST COLOR ME ALLIE DASH OF SASS NAILED IT NAIL BAR MINDFUL LIVING EXPERT ANDE'S PERUVIAN ARTS AND CRAFTS (CT) ANDE'S PERUVIAN ARTS AND CRAFTS (CT) HOT TRENDS SUNGLASSES (CT) THE FUNNEL HOUSE NORTH SHORE POKE CO NO KA OI SANCHO'S TACOS KILLARNEY'S TOP H B NAILS DARE ME BIKINI SMOKERZ LAND 3 SMOKE SHOP ZEPHYR BARBERSHOP CASSANDRA CAPRI HAIR COLDSTONE CREAMERY MIN'S DYNASTY PERMANENT MAKEUPIMD MEDICAL SPA DECO HAIR LOUNGE 7-ELEVEN STORE #2172-34653A BEACHISLAND JAX BICYCLE CENTER SAIL PROPERTIES INC INVESTMENT BUILDERS LLC WAVELENGTHS RECOVERY LLC PERFECTED WEALTH MANAGEMENT KOKOMOS SURF SIDE INDARRA MODERN INDIAN CUISINE MAIN ST BARBERS KENNETH BROWN SALONS HOT TRENDS SUNGLASSES (CT) HOT TRENDS SUNGLASSES (CT) GRATER GRILLED CHEESE CHARLIE'S GYROS ZACKS PIER PLAZA ZACKS TOO DWIGHT'S BEACH CONCESSION SURF CITY STORE BEACH WAVES SKIN REHAB SURF CITY SEGWAY HUNTINGTON SURF AND SPORT MAIN STREET DAY SPA BEAUTY BUNGALOWS BY PORCELAIN PRISTINE MOTORSPORTS VEGWARE PACKAGING INC PARKING CONCEPTS INC THE U P S STORE #4482 ROBINSON LEE TURN-KEY HOMES SPEEDY CREDIT REPAIR INC F H A REVIEW LUNA UNITED PACIFIC SOTHEBY'S INTERNATIONAL REALTY R M A INTERNATIONAL LANDSCAPE ARCHITECTURE & PLAN BREWSTER'S ICE HAUS OF BUNNIES MAHKIN THAI & SUSHI ZERO ZERO PIZZERIA WAHOO'S FISH TACO LONGBOARD RESTAURANT & PUB MANGIAMO GELATO NAUGLES ROCKIN FIGS SURF HEADQUARTERS MAKIN WAVES SALON BARE BUNNY AESTHETICS SOCK HARBOR AMERICAN VINTAGE BASKIN ROBBINS #362100 MODEL CITIZEN SURF CITY CHIROPRACTIC MAILBOX STATION INNOCEAN WORLDWIDE AMERICAS LLC ROBERT KOURY PROPERTIES STUDENT SUPPORT LIVE LP CELLORION (CT) HUNTINGTON SURF INN T K BURGERS RITTER'S STEAM KETTLE COOKING CRABBY'S BOAT HOUSE 2ND FLOOR FAD CRUISERS PIZZA BAR GRILL ALOHA GRILL MAIN STREET OPTICAL & BOUTIQUE THE BLOW DOWN LLC M E HELME HOUSE FURNISHING CO DING DR LLC BOW AND ARROW HAIR LOUNGE LOVE LOCKS HAVAIANAS SANDALS EL DON LIQUOR RAY'S RENTALS GALITZEN PROPERTIES A & S ACCOUNTING SOLUTIONS INC H M R ARCHITECTS INNOCEAN WORLDWIDE AMERICAS AMBIT CONSULTING LLC ZIGGYS ON MAIN SESSIONS WEST COAST DELI DAIRY QUEEN HURRICANES BAR & GRILL FRED'S MEXICAN CAFE CUCINA ALESSA HB JACK'S BEACH CONCESSION ROCKY MOUNTAIN CHOCOLATE FACTORY SAKALSURFBOARDS SALON RETRO NEIRA DESIGNS & FIX-IT ETC MONTGOMERY JEWELERS EV RIDEABLES LLC PACIFIC COAST BODY SCULPTING LLC JACKS SURF & SPORT HUNTINGTON BEACH EASY RIDER. DANK CLOTHING F45 TRAINING HUNTINGTON BEACH DOWNTOWN PIERSIDE COMMISSARY LAZ PARKING CALIFORNIA LLC FLYWHEEL WEAVER & ASSOCIATES GRUPO GALLEGOS SOLENA LANDSCAPE EIDO CELLORION (CT) MAIN ST LIQUOR MARKET Just Right Apparel HOT SPOT ZIMBABWE HB GIFTS & ACCESSORIES (CT) TZONE SUSHI ON FIRE THAI WAVE RESTAURANT HUNTINGTON BEACH BEER COMPANY SURF CITY ALE HOUSE LET'S GO FISHING & SURF CITY SNACK BAR LLC SURFBOARD AND BIKE RENTALS MOOD SWINGS HOSTETLER KERI SKINSATIONAL MAIN STREET WINE COMPANY PARLOUR ELEVEN HUNTINGTON SURF & SPORT COASTLINE REAL ESTATE INVESTMENTS LLC CONTINENTAL 1 HOUR CLEANERS INC CDA MARKETING GROUP INC P R TALENT HEADLINER SURF CITY SKATES JAY BIRD'S BEAUTY & THE BEACH STUDIO KUO JESSICA AUTOMATED CASH MANAGEMENT SYSTEMS (ACMS) POSITIVE THOUGHT BRAND (CT4) ZIMBABWE HB GIFTS & ACCESSORIES (CT) PETE'S MEXICAN FOOD ICECREAMTON - SOFTY ICECREAM & HANDCRAFTED CHURROS B J'S RESTAURANT & BREWHOUSE DUKE'S WATERFRONT BEACH CABANA BEE BEE NAILS DANIEL JAFFE DDS LUCY'S TAILORING & ALTERATIONS M C A TRADING LLC HAMLIN GOODING THE ICE CREAM WAY DING TEA JAN'S HEALTH BAR IHOP MAIN STREET HAIR COMPANY SUGAR CABANA CALI SHORE STORE HAVEN OF WELLNESS INC EUROPA NAIL STUDIO THE TRAINING SPOT HUNTINGTON BEACH REALTY HORN HOLISTIC ACUPUNCTURE DIRTY DOG WASH RIO MEDIA INC 221 N MAIN STREET BEACH PROPERTIES LLC GALLAGHERS IRISH PUB RACHEL IVERSEN LAC DIANE'S BIKINIS Healing Cryotherapy BOBASAUR SUGAR SHACK CAFE SHARKEEZ HQ GASTROPUB KITE CONNECTION CIO DAVE SHENKMAN ELEVATE SPA SERVICES SUITE INSPIRATION SURF CITY MARKET PORCELAIN HAIR STUDIO I PORCELAIN HAIR EXTENSIONS 7 ELEVEN STORE #35767B SUNWEST REALTY BRENT O NICHOLS DDS IPA 1031 GROUP LLC TEAM DESIGN & CONSTRUCTION RIPCORD DIGITAL INC W & R STUDIOS BANZAI BOWLS WET DOG TAVERN PERQS NIGHTCLUB & SPORTSBAR COACH'S MEDITERRANEAN GRILL SHABU ON FIRE BODHI TREE VEGAN CAFE ORANGE COUNTY BARBERS PARLOR JOLYN CLOTHING COMPANY RIP CURL SURF CENTER SIGNATURE PRINTING CORREA & ASSOCIATES J & J COASTAL LENDING HOWARD FISCHER DVM A PRO CORP 25DEGREES HIDDEN BEAUTY OC BY SHAUNA NASRI JPG Inc. dba Oak Leaf Productions MILK AND HONEY HB ARMIJO ANTHONY (CT) 602 COFFEE HOUSE STARBUCKS COFFEE COMPANY #575 AVILA'S EL RANCHITO H B DOS TOROS MEXICAN GRILL SANDY'S BEACH SHACK 1 LOOK VINTAGE LEATHER AND LACE O C MERRILEE'S INC CALIFORNIA CLOTHING STUDIO 37 SALON CAPITAL INVESTMENT NETWORK INC PHOTO HOUSE INC T R RANCH SERVICES LLC THE NEXT LEVEL W & R STUDIOS MAILPIX INC SURFLINE C B INVESTMENTS INC WESTLAND BUSINESS SERVICES INC PACIFIC RIM TAX & ACCOUNTING ATM GLOBAL INCORPORATED JUVE CREATIVE INC GUARANTEED RATE INC BOMBURGER BLUE CHAIR ACCOUNTING 13ID ACCFCCI►PUT rI4AOT Assessment Chart Oct. 1, 2021 - Sept. 30, 2022 Category Benefit Zone 1 Benefit Zone 2 Retail 1,000 sq. ft. or less $351 $200 1,001 - 2,SOO sq. ft. $702 $400 2,501 - 4,999 sq. ft. $1,OS3 $600 5,000+ sq. ft. $1,404 $800 Restaurants 1,000 sq. ft. or less $3S1 $200 1,001 - 2,500 sq. ft. $702 $400 2,501 - 4,999 sq. ft. $1,OS3 $600 5,000+ sq. ft. $1,404 $900 Hotels 20 rooms or less $468 $400 21 - SO rooms $936 $800 S1 rooms or more $1,404 $1,200 Services/ Office 1st Floor $281 $160 Basement, 2nd Floor or Higher 1,000 sq. ft. or less $120 $90 1,001 - 2,500 sq. ft. $150 $120 2,501 - 4,999 sq. ft. $300 $150 5,000+ sq. ft. $700 $350 Cart/ Kiosk $100 $80 Banks/ ATM $600 $400 Seasonal, 9 mos or less $500 $300 LOOKING AHEAD CHALLENGES REVENUE Projected Annual BID Assessment Revenue is just 18% of the budget. Recurring event revenue with Surf City Nights has proven to be very robust. but the total footprint is still about 50% of what it was pre-COVID. Surf City Nights revenue is projected to be 31% of the annual budget. Individual Signature Events like Surf City Days and Chili at the Beach are expected to be profitable, but frequent one-off events are not supportable with current BID staffing. IMPROVEMENTS • Rebrand BID with a user-friendly name. i.e. Explore Downtown HB, DTHB, or Experience Downtown HB • New Seasonal Events: examples include a Summer Kick-off event and possible monthly lifestyle events • Annualized Calendar of Events to Increase Shoulder Season Programming • Double Social Media Followers and Engagement • Redesign and Expand Website Content to Feature Different Sections for Businesses and Visitors • Increase Clarity and Value of BID Membership through Marketing. Member Communications, Services, and Programming Res. No. 2021-42 STATE OF CALIFORNIA COUNTY OF ORANGE ss: CITY OF HUNTINGTON BEACH I. ROBIN ESTANISLAU. the duly elected. 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 resolution was passed and adopted by the affirmative vote of at least a majority of all the members of said City Council at a Regular meeting thereof held on September 7, 2021 by the following vote AYES: Peterson. Bolton. Delgleize, Carr, Posey, Moser. Kalmick NOES: None ABSENT: None RECUSE: None , 2�7� City Clerk and ex-officio Clerk of the City Council of the City of Huntington Beach, California