SR-213-002 (7)
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CIty CouncIl Ntg. 12-11-84
Santa MonIca, CalIfornIa
TO;
FROM:
Mayor and CIty CouncIl
CIty Staff
SUBJECT:
RecommendatIon to Approve ResolutIon of IntentIon
for ExpansIon of Maln Street Parking and Business
Improvement Area
IntroductIon
On Apr 11 10,
1984, the CIty Councll adopted an ordInance
establIshIng a MaIn Street ParkIng and BUSIness Improvement Area.
ThlS
report
recommends
the
CounCIl
approve
the
attached
ResolutIon of IntentIon to mOdIfy th1.s ordInance through the
lncluSIon of certaIn non-retall bUSIness lIcense holders In the
distrIct.
~ackground
On AprIl 10,
1984. the CIty CouncIl adopted an ordInance
establIshIng a MaIn Street ParkIng and BUSIness Improvement Area.
At thl s tlme, members of the bUSIness commun I t Y from the MaIn
Street distrIct came forward to VOIce theIr concern over the
proposed flat fee of $300 annually for non-retaIl bUSIness
lIcense holders Included in the ordInance.
Expressed was a
concern for the eqUIty of assessing non-retail businesses who may
receIve only IndIrect benefIt from a dlstrlct of this nature.
The CIty CounCIl voted to adopt the ordInance; however, It
elected to delete from the ordInance the assessment of non-retaIl
bUSInesses. CounCIl asked City staff to work With the Chamber of
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Commerce and the MaIn Street Merchants ASSocIatIon to InvestIgate
the pos Sl bIll ty of a compromI se sol ut Ion for the incl USI on of
certaIn non-retaIl bUSIness lIcense holders In the future.
Staff has met wIth representatIves of the busIness communIty, and
now proposes a substantIally reduced assessment for the
non-retaIl busIness lIcense holders than prevIously recommended
for the ordInance adopted by CounCIl. The modIfIed fee structure
would assess a flat fee of $25 annually to these busInesses.
Staff and the busIness representat I ves concurred that WhIl e the
IncluSIon of these busInesses IS equitable because of IndIrect
benefIts they receIve from general promotIonal actIVItIes I the
contrIbutIon of these bUSInesses should be substantIally less
than that of the retaIl bUSInesses In the area whose benefIt IS
far greater. By redUCIng the fee from $300 to $25 annually, both
staff and the merchant representatIves belIeve the non-retaIl
part1clpatlon 13 scaled back to a more appropr1ate level. In
addItIon, It was felt that thIS fee would not represent a
hardshIp for any business In the area.
No other mod1fIcatlons to the ordInance are recommended.
Budget/FInanCIal AnalYSIS
The addItIon of these non-reta11 bUSInesses to the distrIct would
resul t In approxImately $4,875 In new funds. FIve percent of
these funds would be retaIned by the CIty for admInIstratIve
costs. The CIty'S FY 1984-85 budget should be adJusted to
reflect thIS addl tlonal revenue and the subsequent dIsbursement
to the Santa Monica Chamber of Commerce.
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Recommendation
It IS respectfully recommended that the CIty Council:
1) Adopt the attached ResolutIon of IntentIon to establISh
an expanSIon of the MaIn Street ParkIng and BusIness
PromotIon DIstrIct to Include certaIn non-retaIl busIness
lIcense holders.
2) Increase the FY 1984-85 revenue estImate In account
#L1-90-000-000-136 by $4,875.
3) Increase
the
FY
1984-85
approprIatIon
In
account
#01-700--274-000-604 by $4,631.
PREPARED BY:
Peggy Gardels
AssIstant to the CIty Manager
Attachment
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