SUBJECT: ADOPTION OF A RESOLUTION TO APPROVE THE
2001-2002 BUDGET REPORT AND TO LEVY JAPANTOWN BUSINESS IMPROVEMENT DISTRICT
ASSESSMENTS FOR FISCAL YEAR 2001-02
Adoption of a resolution to approve the Japantown Business Improvement District budget report for fiscal year 2001-02, as filed or as modified by the Council, and to levy the Japantown BID assessments for 2001-02.
BACKGROUND
The Japantown Business Improvement District (“BID”) was established by the Council in 1990 pursuant to the California Parking and Business Improvement Area Law (“BID LAW”) to promote the economic revitalization and physical maintenance of the Japantown business district. The Council appointed the Japantown Business and Professional Association as the Advisory Board (“Advisory Board”) for the BID, to advise the Council on the levy of assessments in the BID and the expenditure of revenues derived from the assessments.
Pursuant to a 1989 BID Law, an annual public hearing is required in order to approve the annual budget report and levy the annual BID assessments. On May 22, 2001, the Council preliminarily approved the 2001-02 budget report as filed by the Advisory Board or as modified by the City Council and adopted a resolution of intention to levy the annual assessments for fiscal year 2001-02 for the BID, and set June 5, 2001 at 1:30 p.m. as the date and time for the required public hearing on the levy of the proposed 2001-02 assessments. The 2001-02 budget report submitted to the Council on May 22, 2001 is attached to this memo as Exhibit 1.
In accordance with the BID Law, the City Clerk has published the required legal notice with regard to the levy of assessments for fiscal year 2001-02.
When a hearing is held under BID Law with regard to the levy of assessments of a BID, the City Council shall hear and consider all protests against the continued authorization of the BID, the extent of the area, the assessments, or the furnishing of specified types of improvements or activities. Protests may be made orally or in writing. Written protests must be filed with the City Clerk at or before the time fixed for the public hearing. BID Law requires that the proceedings shall terminate if protests are made in writing against the continued authorization of the BID by businesses or property owners in the proposed district which will pay a majority of the charges to be assessed. If the majority protest is only against the furnishing of a specified type or types of improvement or activity within the area, those improvements or activities shall be eliminated.
The Advisory Board has prepared a budget report (the “report”) attached as Exhibit 1, for the Council’s consideration as the budget for the Japantown BID for Fiscal Year 2001-02. As required by BID Law, the report has been filed with the City Clerk and contains, among other things, a list of the improvements and activities proposed to be provided in the BID in Fiscal Year 2001-02 and an estimate of the cost of providing the improvements and activities. The Advisory Board has recommended no change in the BID boundaries or the method and basis for levying assessments. (A map of the Japantown BID is attached hereto as Exhibit 2.) Therefore, the proposed assessments in the BID for Fiscal Year 2001-02, described in the report, are the same as the assessments in Fiscal Year 2000-2001.
During the course or upon the conclusion of the public hearing the City Council may order changes in any of the matters provided in the Advisory Board’s report. At the conclusion of the public hearing the City Council may adopt a resolution confirming the report as originally filed or as modified by the Council. The adoption of the resolution constitutes the levy of the assessment for the fiscal year 2001-02.
The budget for Fiscal Year 2001-2002 was reviewed and approved by the Japantown Business and Professional Association at their board meeting on April 9, 2001.
COORDINATION
This memorandum has been coordinated with the Finance-Treasury, the Redevelopment Agency’s General Counsel’s Office, the Japantown Business Association, and the City Clerk.
Approval of the proposed BID budget does not impact City revenue. BID assessments are restricted for use exclusively by the BID. It is anticipated that a healthy Business Improvement District will encourage growth of the retail community and consequently result in additional business tax and sales tax revenue for the City.
CEQA
CEQA: Exempt
DARRELL DEARBORN
Sr. Deputy City Manager