HomeMy WebLinkAbout2001-08-07; Housing & Redevelopment Commission; 339; Parking & Business Improvement District StudyHOUSING AND REDEVELOPMENT COMMISSION (f-
AGENDA BILL
AB# ~389 m:
MTG. 8-7d PARKING AND BUSINESS IMPROVEMENT
DISTRICT (BID) STUDY FOR VILLAGE
DEPT. H/RED REDEVELOPMENT AREA
RECOMMENDED ACTION:
CITY ATTY.
CITY MGR
That the Housing and Redevelopment Commission accept the report on the results of Phase I of
the Work Plan for the formation of a Business Improvement District (BID) in the Village
Redevelopment Area and direct staff to discontinue any further efforts to proceed with the
formation of a BID based on the demonstrated lack of support from local business and property
owners.
ITEM EXPLANATION:
In 1999 the Carlsbad Village Business Association (CVBA) requested the Housing and
Redevelopment Commission consider the feasibility of forming a Business Improvement District
(BID) to fund activities that would benefit Village businesses such as collaborative advertising,
promotions, business retention programs, street beautification programs, and special events. In
response to the CVBA’s request, the Commission directed staff to retain consultant services to
complete a Parking and Business Improvement District (BID) Study for the Village
Redevelopment Area. Keyser Marston Associates, Inc. (KMA) was retained to complete the
study, which was presented to the Commission on October 3, 2000. The study served to provide
the Commission and business community with a detailed informational report on the subject of
BIDS and acted as a resource guide for evaluating the feasibility of forming a BID within the
Village Redevelopment Area.
In addition to the study, KMA also prepared a three-phase work plan for the formation of a
potential BID that included; (1) public outreach, (2) technical analysis (establishment of district
boundaries and fee structure), and (3) preparation of an Engineer’s Report (formal document for
establishment of a BID). After receiving the study, the Housing and Redevelopment Commission
directed staff to initiate the first phase of the work plan - public outreach and consensus building.
The purpose of the public outreach program was two-fold: 1) to educate the business community
on the costs and benefits associated with forming a BID and 2) to ascertain the level of support
from the business community prior to making a commitment to continue with the process.
Keyser Marston Associates was once again retained to assist staff with the public outreach
efforts. In order to maximize public participation and allow for the progression of information, as
more people got involved in the process, a three-phase public outreach program was developed
consisting of two community workshops and one mail survey.
Notification of both property owners and business owners within the Village Redevelopment Area
was provided for all three public outreach efforts. A list of approximately 400 property owners
was prepared from the latest tax assessor’s roll. Similarly, a list of over 950 business owners
was prepared based on information provided on active business licenses. Both lists were
continually updated throughout the process to insure optimum notification of potentially affected
parties.
PAGE 2 OF AGENDA BILL NO. 337
Summary:
In response to the Commission’s direction last October and as one of the staff goals for p/2000-
2001, staff has completed the public outreach program to educate the business community on
the costs and benefits associated with the formation of a Business Improvement District and
ascertain the level of support from local business and property owners. With the assistance of
Keyser Marston Associates, a three-phase public outreach process was undertaken to educate,
inform and accept feedback from local business and property owners with the goal of creating
consensus among the business community. Based on the feedback received during the
informational workshop (Workshop I), from the survey questionnaire, and during interactive
workshop (Workshop II), staff has determined that there is inadequate support among business
and property owners to proceed with the formation of a BID within the Village Redevelopment
Area. Although there remain small clusters of business owners in different areas of the retail
core that support the formation of a BID, the results of the public outreach program reflect a lack
of majority support in a contiguous area large enough to financially support a viabie district.
Staff Recommendation:
Based on the findings set forth in the attached report, staff recommends the Housing and
Redevelopment Commission direct staff to discontinue any further efforts to adopt a BID within
the Village Redevelopment Area based on the lack of majority support from local business and
property owners. The Carlsbad Village Business Association has indicated that they may wish to
complete some additional outreach to businesses on this matter at a later date, perhaps in six (6)
months or so, and request reconsideration on this matter at a future date. Staff has indicated to
the Business Association that the action to discontinue efforts to form a BID at this time does not
preclude future consideration.
FISCAL IMPACT:
To date, the Commission has appropriated $25,000 for the Parking and Business Improvement
District Study. The total amount of the contract for consultant services to prepare the initial
Parking and Business Improvement District Study for the Village Redevelopment Area was
$16,500 not including staff time. An additional $7,500 was appropriated for consultant services
used to implement the public outreach program.
KMA has estimated additional consultant costs associated with the formation of a BID to be
between $10,000 and $13,000, which include technical analysis and preparation of the
Engineer’s Report. Other undetermined costs include staff time and legal counsel for
interpretation and preparation of resolutions and ordinances. Finally, many local agencies have
made financial contributions to newly established BIDS to assist with start up costs. Any financial
contribution on the part of the City of Carlsbad or the Redevelopment Agency is uncertain at this
time. However, City or Redevelopment Agency contributions could be an ongoing cost which is
important to consider should the Commission decide to move forward with the establishment of a
BID for the Village.
EXHIBITS:
1. Executive Summary of Public Outreach Program on Proposed BID
2. Copy of Survey and Informational Brochure
3. Survey Responses
Exhibit 1
Executive Summary
of
Public Outreach Program
on Proposed BID
3
July 6, 2001
TO: CITY MANAGER
VIA: Housing and Redevelopment Direct0
FROM: Management Analyst, Housing and Redevelopment
BUSINESS IMPROVEMENT DISTRICT STUDY
The following report provides a summary of the public outreach program and related
input relative to the proposed BID for the Village Redevelopment Area.
Workshop I:
On January 25, 2001 staff held the first workshop to kick-off the public outreach efforts.
The 42 people in attendance were given background information on BIDS and an
extensive question and answer session ensued. The topics covered in Workshop I
include:
l Historical background on BIDS in general
l Differences between business based BIDS and property based BIDS
l Range of activities and fees currently associated with existing BIDS in San
Diego County
l Formation process
In addition to the topics covered by staff and the KMA consultants, Steve Russell, prior
Executive Director of the El Cajon Boulevard BID, attended the meeting as a guest
speaker to share with the business community “first-hand” knowledge on the workings
of a successful BID from an “insider’s” perspective. Mr. Russell discussed:
l Benefits of BIDS and typical BID activities
l Organizational structure (e.g. Board of Directors, subcommittees)
l Role of the Executive Director
l Key achievements within the district
Survey Questionnaire:
In February of this year, immediately following Workshop I, City staff distributed surveys
to business owners and property owners to provide everyone with an opportunity to
express their opinions on a possible BID. Of the 1,350 surveys distributed, staff
received a total of 168 survey responses. Of the 168 responses received, 71 were from
business owners, 60 were from property owners, 35 were both business and property
owners, and 2 were from respondents located outside the redevelopment area. The
survey instrument was one page (two-sided) and consisted of 10 questions that were
designed to ascertain the following:
BID Public Outreach Program
lf6fQI
l Location of respondent’s business and/or property within the redevelopment area
l Type of business they operate
l Overall level of support for the formation of a BID
l Most appropriate BID for the redevelopment area (business-based or property-
based)
l Area(s) of the redevelopment district to most benefit by a BID
l Types of programs or services that would most benefit the district
l Annual assessment fee the respondent would be willing to pay, if any
Coupled with the survey, staff utilized the opportunity of a second mass mailing to
provide a one page (two-sided) informational brochure on BIDS, which also provided an
explanation of the process and purpose of the survey. A copy of the informational
brochure and sample survey form, along with a compilation and cross-tabulation of
detailed responses is attached for the Commission’s review (Exhibits 2 & 3).
The responses to the written survey did not reflect a tremendous amount of support for
the formation of a BID. In total, 49 (29%) respondents indicated that they support the
formation of a BID and 103 (61%) of the respondents stated they did not support the
adoption of a BID. A total of 16 respondents did not answer the question or were
undecided as to the formation of the BID. Of the 49 people who expressed support for
the BID, 3 were outside the redevelopment area, 10 owned both property and a
business within the redevelopment area, 25 were business owners, 10 were property
owners supporting a business-based BID, and 1 was a business owner who only
supported the formation of a BID if he/she remained outside the established
boundaries.
A majority of the respondents who expressed support for a BID felt a business-based
BID was most appropriate and there was little support for a property-based BID,
especially from property owners. When asked to name the types of programs and
services that would most benefit the district (marketing, construction of additional
parking facilities, security, streetscape improvements, business attraction/retention,
landscape and maintenance, promotion of special events, administrative support, or
other), a majority of respondents placed collective marketing and promotion of the
Village as most important. Construction of additional parking facilities came in second
and additional security was third in the order of importance. It is important to note the
responses were given in percentages with some respondents spreading the percentage
across several categories while others put 100 percent importance in only one
category. Therefore, the overall percentages should be considered a rough estimate of
importance.
When asked what dollar amount participants would be willing to pay annually to fund a
BID, 49 respondents said $0, 35 said $O-$50, 13 said $50-$100, 10 said $lOO-$150, 4
said $150X$200, 4 said $200-$300, 1 said $300-$400, 5 said $400~$500, and 6
respondents were willing to pay over $500 annually. A total of 41 of the respondents
were undecided or did not provide a response.
5
BID Public Outreach Program
7/6/01
As stated above, the survey results did not reflect a strong level of support for the
formation of a BID. However, the results also indicated several respondents were still
undecided and in need of additional information prior to voicing an opinion on the
subject. Therefore, staff used the results of the survey to provide feedback to the
CVBA and initiate a discussion on the areas of interest to focus a subsequent
interactive workshop (Workshop II) with the business community.
Workshop II:
Workshop II was held on May 30, 2001. In preparation for the workshop, staff once
again notified 1,350 property owners and business owners inviting them to attend. The
primary objective of Workshop II was to determine if there was a cohesive group of
business owners within the Village Redevelopment Area who strongly support the
formation of a BID and would agree to assess themselves annual fees to finance
programs and services they believe would improve their district. To assist business
owners in making this determination, the workshop focused on:
l Possible boundaries for a BID
l Range of possible activities/programs to be funded by a BID
l Potential fees based on type of business, size of business, and location of
business within the BID boundary.
The workshop once again included an extensive question and answer session. In
addition to the notices distributed by staff, members of the Carlsbad Village Business
Association walked the area (within the proposed boundaries) and personally talked to
local business owners about the proposed BID and distributed additional flyers notifying
people of the workshop. This was found to be an important prelude to the second
workshop, because a significant number of responses to the survey indicated many
people erroneously believed the City was initiating the formation of a BID as a means of
collecting additional taxes. By personally speaking to a large number of business
owners in the Village, the CVBA was hoping to dispel this myth and clarify they were in
fact the primary proponents of the formation of a BID and responsible for initiating the
request to form a BID in the redevelopment area. Each CVBA member who walked the
area also used the opportunity to share a list of facts concerning BIDS with each person
they spoke to and invited them to the subject workshop.
A total of 55 people attended Workshop II. Of the 55 people who attended, 36 people
stayed for the interactive component of the workshop. The interactive session included
organized group discussions at each of the six tables in the room. A discussion leader
was chosen at each table and given a list of questions to prompt group interaction,
individual feedback, and consensus building. A map of the Village Redevelopment
Area, with tentative BID boundaries created by a group of CVBA members working in
conjunction with staff and the project consultant, was given to each group. Along with
the map, each group was given the task of coming to consensus on the following topics
of interest:
l Provide feedback on the tentative BID boundaries and modify accordingly;
l List programs and/or services to best serve the district;
BID Public Outreach Program
7/6/01
l Create benefit zones on the table map (i.e. which area(s) most benefit
from the programs/services selected by the group);
l Identify types. of businesses to benefit most from program/services
implemented by the BID; and
l Establish fair and appropriate annual fees for various types of businesses
(restaurants & bars, general retail, commercial services, office users) both
within and outside the benefit zone.
The group discussions went very well and staff received very positive feedback from
participants as they reported out to the audience the results of their discussions.
Although the workshop went well, staff does not believe it was well attended nor do we
believe that it identified a defined group of business owners within a specified area of
the Village willing to participate in a Business Improvement District. A map of the
attendees and their position on the BID did not demonstrate a core area of support
upon-the City could move forward to establish boundaries for a BID.
LORI H. ROSENSTEIN
Exhibit 2
BID Survey
Cit9 b 0; -‘o--Be - D-0. -
CARLSBAD VILLAGE REDEVELOPMENT AREA
POSSIBLE FORMATION OF A BUSINESS IMPROVEMENT DISTRICT (BID)
BID SURVEY FORM
What’s This Ail About and What’s a BID?
As you may be aware, as a result of a request from the Carlsbad Village Business Association,
the City of Carlsbad is studying the possibility of establishing a Business Improvement District
(BID) to cover all or a portion of the Carlsbad Village Redevelopment Area (see attached map).
A BID is an organization of business or property owners who agree to assess themselves
annual fees to finance programs and services intended to improve their business district. Such
programs and services may include marketing and promotion, security, additional parking,
maintenance activities and/or capital improvements. BIDS can be initiated by business owners,
property owners, or city councils, and the process for establishment is set forth in State law.
Typically, a BID is run by a board of directors comprised of BID members.
A BID can be either business-based (assessments on business owners) or property-based
(assessments on property owners). If a BID is established, all businesses or parcels of property
(depending upon which type of BID is formed) within the BID boundary will pay an annual
mandatory fee to fund BID services. In a business-based BID, fee amounts can vary based
upon the type of business, size of business, location of business with the BID boundary, and
proposed programs or projects to be funded by the BID. Fees in a property-based BID, can
vary based upon the property’s lot square-footage, building footprint, location, and proposed
programs or projects to be funded by the BID. BIDS are basically financing mechanisms
established to fund various programs and projects. They do not determine land use or the
desirability of any given land use.
Process Beinq Followed
The City is currently reaching out to potentially affected business/property owners in an effort to
inform them about all aspects of BIDS and to gauge the level of support for establishment of a
BID in the Village. The feedback of the Village community on this issue is a key determinant
guiding the process.
The City is being assisted in the process by the real estate advisory firm of Keyser Marston
Associates, Inc. (KMA). On January 25, 2001, a public workshop was held to provide those in
attendance with background information on BIDS. City staff discussed the status of the BID
process, KMA made a presentation on the various aspects of BIDS, and an executive director of
an existing BID covered the day-to-day issues of BID management. Another public workshop
will be held during March to discuss the potential range of services that a Village BID could offer
and possible boundaries and fee structures.
(continued on back)
2965 Roosevelt St., Ste. B l Carlsbad, CA 92008-2389 l (760) 434-2810/2811 l FAX (760) 720-2037 @
?
How Are You Affected?
You have received this questionnaire because City records indicate that you own a business or
a piece of property within the Village, defined as the boundaries of the Village Redevelopment
Plan Area (see map below). Therefore, if a BID is established, you may be subject to a
mandatory annual fee to help fund BID programs serving the Village business district. The City
is committed to providing those business owners and/or property owners who may be assessed
a BID fee the chance to be heard on the BID issue. The attached questionnaire is intended to
provide you with an opportunity to express your opinions about a possible BID. We ask that you
please take the time to complete the brief two-page survey and return it to the City of Carlsbad
Housing & Redevelopment Office located at 2965 Roosevelt Street, Suite B, Carlsbad, CA
92008 no later than February 28.2001.
We also invite you to attend the second BID workshop, tentatively scheduled in March.
(Notification on the final time, date, and location will be forthcoming.) In the meantime, for more
detailed information on BIDS, you can obtain a copy of the report on BIDS prepared by KMA by
contacting the City of Carlsbad Housing & Redevelopment Department at 760-434-2810.
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City of Carlsbad
Village Redevelopment ;( . Project Area
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CARLSBAD VILLAGE REDEVELOPMENT AREA
POSSIBLE FORMATION OF A BUSINESS IMPROVEMENT DISTRICT (BID)
Please answer all questions as completely as possible and return this portion of the survey form
to the City of Carlsbad Housing & Redevelopment Office, 2965 Roosevelt Street, Suite B,
Carlsbad, CA 92008 no later than February 28, 2001. To help reduce costs, we greatly
appreciate your support in mailing or hand-delivering your completed questionnaire.
Refer to the map of the Carlsbad Village Redevelopment Area on the proceedinq paae to locate
the district in which your business or property is located. If you own more than one business or
multiple properties, please list them in the space provided below.
Your Name:
Name of Business:
Business/Property Address:
Business/Property District (see attached map) -
1. Are you the owner of a business and/or a property located within the Carlsbad Village
Redevelopment Area (see attached map)?
Owner Business
Property Owner
Both
2. If you operate a business within the Village Redevelopment Area boundary, what type of
business do you operate?
Retail
RestaurantIBar
Professional or Medical Office
Institution Financial
Hotel or Motel
3. Do you support the adoption of a Business Improvement District (BID) for some portion of
the Village?
If Yes, why? Yes.
No. If No, why not?
4. Which type of BID do you believe is most appropriate to address the needs of the Carlsbad
Village area?
Business-based BID (BBID), where a business license holder pays an annual fee
Property-based BID (PBID), where a property owner pays an annual fee
(continued on back)
\\
5. In your opinion, what areas of the Village do you believe would most benefit from formation
of a BID and should be included in the boundaries of a possible BID? Describe.
6. If a BID were established, which programs or services would most benefit the district?
Check off your choices and indicate what percentage of BID budget should be applied to
that program or service.
Marketing & Promotion of the Village
Promotion of Special Events
Landscaping & Maintenance
Security
Construction of Additional Parking Facilities
Improvements Streetscape
Business Attraction & Retention
Administrative Support for Programs & Projects
Programs/Services Other
Total
%
%
%
%
%
%
%
%
%
100%
7. What amount of annual BID assessment would you be willing to pay to fund the activities of
the BID as you identified them above? Note: BID fees are not voluntary once they are
established. Depending upon the type of BID formed all businesses and/or property owners
within the BID boundary will pay a mandatory annual fee.
$0 - $50 $50-$100 $1 oo-$150 $150-$200
!§200-$300 $300-$400 $400-$500 $500+
8. If you do not think that a BID is the right choice at this point in time to fund programs and
projects for the Village, do you think it should be reconsidered in the future? If so, why?
Yes. If Yes, why?
If No, why not? No.
9. Did you or a representative from your business/property attend the informational workshop
on BIDS held on January 25,2001?
Yes
-No
10. Should the City move forward on behalf of the Village business owners and/or property
owners with formal procedures to establish a BID?
Yes
-No
I need more information.
Exhibit 3
BID Survey Results
CARLSBAD VILLAGE REDEVELOPMENT AREA
POSSIBLE FORMATION OF A BUSINESS IMPROVEMENT DISTRICT (BID)
BID SURVEY FORM
Please answer all questions as completely as possible and return this portion of the survey form
to the City of Carlsbad Housing & Redevelopment Office, 2965 Roosevelt Street, Suite B,
Carlsbad, CA 92008 no later than Februaw 28, 2001. To help reduce costs, we greatly
appreciate your support in mailing or hand-delivering your completed questionnaire.
Refer to the map of the Carlsbad Village Redevelopment Area on the proceedina page to locate
the district in which your business or property is located. If you own more than one business or
multiple properties, please list them in the space provided below.
Your Name: SUMARY OF RESPONSES
Name of Business:
Business/Property Address:
Business/Property District (see attached map) -
1. Are you the owner of a business and/or a property located within the Carlsbad Village
Redevelopment Area (see attached map)?
71 Business Owner Outside RDA 2
&I Property Owner
35 Both Total 168
2. If you operate a business within the Village Redevelopment Area boundary, what type of
business do you operate?
Retail 41
9 Restaurant/Bar
Professional or Medical Office 41
Financial Institution 6
Hotel or Motel 3
10 Other
No Answer 63 Total 173
3. Do you support the adoption of a Business Improvement District (BID) for some portion of
the Village?
49 Yes. If Yes, why? See Comments
jOJ No. If No, why not? See Comments
8 Undecided 3 No Answer J-Yes&No Total 168
4. Which type of BID do you believe is most appropriate to address the needs of the Carlsbad
Village area?
Business-based BID (BBID), where a business license holder pays an annual fee 62
Property-based BID (PBID), where a property owner pays an annual fee 21
None 36 No answer 1 Depends on Fee 8 Both 1 Either 8 Undecided 31
168 Total
_- A
5. In your opinion, what areas of the Village do you believe would most benefit from formation
of a BID and should be included in the boundaries of a possible BID? Describe.
See written comments.
6. If a BID were established, which programs or services would most benefit the district?
Check off your choices and indicate what percentage of BID budget should be applied to
that program or service.
Average Percentage
59 Marketing & Promotion of the Village - 32.2%
29 Promotion of Special Events - 6.1 YO
43 Landscaping & Maintenance 8.9%
33 Security 10.8%
49 Construction of Additional Parking Facilities 19.8%
49 Streetscape Improvements 9.6%
20 Administrative Support for Programs & Projects 2.6%
37 Business Attraction & Retention - 9.2%
6 Other Programs/Services 0.8%
Total 100%
7. What amount of annual BID assessment would you be willing to pay to fund the activities of
the BID as you identified them above? Note: BID fees are not voluntary once they are
established. Depending upon the type of BID formed all businesses and/or property owners
within the BID boundary will pay a mandatory annual fee.
61 No Response
49 $0-$50 35 $50-$100 13 $100-$150 10
$150-$200 4 $200-$300 4 $300-$400 1 $400-$500 5
$0 -
$500+ 6 Undecided / No response 41 Total response 168
8. If you do not think that a BID is the right choice at this point in time to fund programs and
projects for the Village, do you think it should be reconsidered in the future? If so, why?
20 Yes. If Yes, why? See written comments.
96 No. If No, why not? See written comments.
52 Undecided / No response
9. Did you or a representative from your business/property attend the informational workshop
on BIDS held on January 25,2001?
129 No 168 Total responses
30 Yes 9 No response
10. Should the City move forward on behalf of the Village business owners and/or property
owners with formal procedures to establish a BID?
33 Yes 5 Noresponse
98 No 1 Yes, if business-based only
31 I need more information. 168 Total responses
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