REPORT TO COUNCIL
SUBJECT
Title
Approve the Downtown Sunnyvale Business Improvement District Annual Report for Fiscal Year 2014/2015 and Adopt the Resolution of Intention to Reauthorize the Downtown Sunnyvale Business Improvement District for Fiscal Year 2015/2016
Report
BACKGROUND
A Business Improvement District (BID) is a private sector funding tool that provides funding for specific activities that must be reauthorized yearly by the City Council at the request of the BID Board. Businesses pay into the BID based on the benefit they receive as members of the district. The funds collected can only be used for projects within the BID boundaries. The BID maintains full control of all BID funds collected, which is a strong sales tool when asking for support from business owners at the time of the BID annual renewal.
Per Sunnyvale Municipal Code 3.60.050, Establishment of the benefit assessment, the formula for calculating the BID assessment amount is determined by the BID Board and enacted by the City Council. Assessments are levied on businesses on the basis of relative benefit from the activities to be funded. The City collects the assessment fee and forwards the collected funds to the BID. The City charges the BID a fee for administrative costs associated with this service.
Downtown Sunnyvale BID
Approximately 160 businesses are located in the BID area, bounded by Sunnyvale, Iowa, Mathilda and Evelyn Avenues. The current BID Board Members are:
Joe Antuzzi, Il Postale Restaurant
Gary Gold, Dr. Gary Gold & Associates
Leigh Odum, Leigh's Favorite Books
Kathy Johnson, Broadcom
Donna Lang, Tangerine Gifts & Accessories
Johnny Sevey, Rok Bistro
Joel Wyrick, SDA/BID Executive Director (non-voting member)
EXISTING POLICY
Sunnyvale Municipal Code Sections - Downtown Sunnyvale Business Improvement District:
3.60.050. Establishment of benefit assessment.
3.60.060. Purpose and use of benefit assessments.
3.60.110. Annual Budget Process
3.60.120. Decisions regarding expenditure of funds.
General Plan, Land Use and Transportation Element
Policy LT-7.4 Create a strong, identifiable central business district that provides regional and citywide shopping opportunities.
ENVIRONMENTAL REVIEW
This matter is not a project within the meaning of CEQA because the creation of government funding mechanisms or other government fiscal activities do not involve commitment to any specific project which may result in a potentially significant physical impact on the environment. (Guideline 15378(b)(4))
DISCUSSION
As part of the annual Downtown Sunnyvale Business Improvement District (BID) reauthorization, the BID Board (Board) is presenting the BID Annual Report and Budget for fiscal year 2014/2015 for Council Approval (Attachment 1). Council is also being asked to adopt a Resolution of Intention (ROI) (Attachment 2) to begin the BID renewal process for fiscal year 2015/2016.
The Board is requesting that the BID be renewed for fiscal year 2015/2016. As of February 6, 2015, the BID collected a total of $31,042 in assessments for fiscal year 2014/2015. The proposed BID budget, as approved by the BID Board, for fiscal year 2015/2016 is $131,580. This proposed budget includes $32,000 from assessments and $99,580 from special events, such as the Summer Music Series and the Jazz & Beyond Series.
The Sunnyvale Downtown BID is mainly a marketing organization. In fiscal year 2014/2015, the BID continued to produce events to attract visitors to Downtown Sunnyvale. Some of the events included the Summer Music Series, the Jazz & Beyond Series, and the Holiday Tree Lighting. These events attracted members of the Sunnyvale community as well as visitors from surrounding cities and continue to provide close to 75% of the BID's annual revenue. Additional marketing continues on the DowntownSunnyvale.com site and an updated downtown business directory.
If Council adopts the ROI, a public hearing is required to receive input from businesses regarding their issues, concerns, and support of the BID. The BID cannot be reauthorized if businesses within the BID boundaries paying more than 50% or more of the assessment file a protest. If reauthorized, the BID will use the same boundaries, benefit zones, and assessment methodology as in past years (Attachment 3).
In order for the BID to be reauthorized for fiscal year 2015/2016, Council must approve the BID's Annual Report and must adopt the ROI. The ROI describes proposed boundaries as well as the time and place for the public hearing, scheduled for April 28, 2015. Notice of the public hearing on the BID will be published in a local newspaper such as the Sunnyvale Sun or the San Jose Mercury News. The adopted ROI will be mailed to all BID members and meeting notices will be emailed by BID staff. The City Council must hold the public hearing on April 28, 2015, to consider all oral and written protests received on or before that date regarding the BID reauthorization for fiscal year 2015/2016.
FISCAL IMPACT
Staff time from the Department of Finance is provided at an estimated cost of $2,500 annually for the administration of the assessment. Because these costs are reimbursed by the BID, there is no impact to the General Fund for providing this service.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City's official-notice bulletin board outside City Hall, at the Sunnyvale Senior Center, Community Center and Department of Public Safety; and by making the agenda and report available at the Sunnyvale Public Library, the Office of the City Clerk and on the City's website. Additional outreach was done by the BID Board through email communications to their members.
RECOMMENDATION
Recommendation
Approve the fiscal year 2014/2015 BID Annual Report and Adopt the Resolution of Intention, and schedule a public hearing for April 28, 2015, to reauthorize the Business Improvement District for fiscal year 2015/2016.
Staff
Prepared by: Maria Rodriguez, Administrative Analyst
Reviewed by: Connie Verceles, Economic Development Manager
Reviewed by: Robert A. Walker, Assistant City Manager
Approved by: Deanna J. Santana, City Manager
ATTACHMENTS
1. BID Annual Report and Budget
2. Resolution of Intention to Reauthorize the Downtown Sunnyvale Business Improvement District for Fiscal Year 2015/2016
3. BID Benefit Zones and Assessment Methodology