Title
Public Hearing to Consider Adoption a Resolution Confirming the Webster Street Business Improvement Area (BIA) Report for Fiscal Year 2015-16 and Levying an Annual Assessment on the Webster Street BIA. (Community Development 227)
Body
To: Honorable Mayor and Members of the City Council
From: Elizabeth D. Warmerdam, Interim City Manager
Re: Hold a public hearing and adopt a resolution confirming the Webster Street Business Improvement Area (BIA) Report for FY2015-16 and levying an annual assessment on the Webster Street BIA
BACKGROUND
In 1989, following the Parking and Business Improvement Area Law in the California Streets and Highways Code, the City Council established regulations for Business Improvement Areas (BIAs) in the Park Street and Webster Street commercial areas. The City's regulations are codified in the Alameda Municipal Code (AMC), Section 6-7. This report is for the Webster Street BIA, which is managed by the West Alameda Business Association (WABA). Revenues from the BIA directly benefit business owners in specified geographic zones through the general promotion of business activities and public events, beautification and ambiance, construction and maintenance of parking facilities, and special projects benefitting that business area.
The BIA is funded from fees collected by the City from all businesses within the geographic zone. Last year, based on an agreement between Catellus Alameda Development, LLC (Catellus), the developer of Alameda Landing, and WABA, the City expanded Webster Street BIA to include Alameda Landing and nearby businesses and created a new $4,000 surcharge for stand-alone retail goods businesses over 30,000 square feet. The surcharge only applies to the Target (136,302 square feet) and Safeway (59,375 square feet) stores at Alameda Landing. Both of these businesses are substantially larger than any other retail establishment at Alameda Landing and the Webster Street or Park Street commercial areas.
Per the original Ordinance 2435, each year the BIA assessment gets an automatic Consumer Price Index (CPI) increase based on the San Francisco Area CPI. This year's CPI increase of 2.7% raises the minimum retail business annual fee to $294.
On April 7, 2015, the City Council received the BIA Assessment Fee Schedule, BIA Boundary Map, and the BIA Address list (Exhibits 1, 2, and 3) and approved WABA's annual assessment report for the upcoming Fiscal Year (FY 2015-16), with its projected activities and budget (Exhibit 4). The City Council also adopted a Resolution of Intention to Levy an Annual Assessment on the Webster Street BIA.
DISCUSSION
In developing and adopting its proposed activities and budget, WABA held meetings with Webster Street business owners. The meetings were announced through business association invitations, newsletters, and/or personal contact. These efforts led to the approval of the Webster Street BIA budget by members in attendance at these meetings.
The annual BIA assessment requires a two-step process. First, the City Council must approve the annual report and pass a Resolution of Intent to Levy an Assessment and, second, hold a public hearing to levy the assessment. Notice of the public hearing will be advertised in the Alameda Journal on April 24, 2014. All BIA members were mailed notification of the public hearing, in addition to instructions on how to protest the BIA renewal, should they wish to do so.
The public hearing allows affected parties a final opportunity to comment on the proposed assessment. The FY 2015-16 assessments cannot be levied if protests are received by the owners of businesses in the area which will pay fifty percent (50%) or more of the assessment. While the City Council approved the assessment report at its April 7 meeting, it may choose to modify the assessment report-including changes to the proposed activities-based on the public comments it receives at the May 5 public hearing. The City Council can also confirm the report as filed. After the hearing, the City Council may adopt a Resolution confirming the report as originally filed or as changed. Adoption of the Resolution will constitute the levy of the assessment for FY 2015-16.
FINANCIAL IMPACT
Business Improvement Area billing is done concurrently with Business License billing. Revenues from the BIA directly benefit business owners in specified geographic and benefit zones through the promotion of business and similar eligible activities. The primary financial impact to the General Fund will be in the form of Finance Department staff costs to process BIA billing and expenditures, estimated to be approximately $5,000 annually and included in the Business License Program Budget (Fund 001, Program 2450). This staffing cost has been absorbed within existing staff workloads to provide indirect financial support to the business districts.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
The renewal of the BIA supports the goals of the Economic Development Strategic Plan through continued operation of the business association consistent with A.M.C. Sec. 6-7 et seq.
ENVIRONMENTAL REVIEW
This action involves government fiscal activities which do not involve commitment to any project which may result in a potentially significant physical impact on the environment and is exempt from the California Environmental Quality Act (CEQA), pursuant to CEQA Guidelines section 15378(b)(4).
RECOMMENDATION
Hold a public hearing and adopt a resolution confirming the Webster Street BIA Report for FY 2015-16 and levying an annual assessment on the Webster Street BIA.
Respectfully submitted,
Debbie Potter, Community Development Director
By:
Eric Fonstein, Development Manager
Financial Impact section reviewed,
Elena Adair, Finance Director
Exhibits:
1. BIA Assessment Fee Schedule FY 2015-16
2. BIA Boundaries Map
3. BIA Address List
4. Assessment Report for the Webster Street Business Improvement Area