SR-213-005
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C~ty Council Meet g: July 12, 1983
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Santa Monlca,
California ~_~
2/3-oo~-
JUL 1 2 1983
TO:
Mayor and Clty Councll
FROM:
City Staff
SUBJECT:
Creatlon of Business Promotional Dlstricts on
Lincoln Boulevard and Maln Street
Introduction
This report describes a proposal for the creation of business
promotional dlstrlcts on L1ncoln Boulevard and Main Street, and
recommends that the City Councll direct the C1.ty Attorney to
prepare ord1.nances to establish beneficial assessment d1strlcts
in these areas.
Background
81Dce early 1982, the Chamber of Commerce has been 1n discussion
w1th Clty staff regarding the establishment of certain bUSlness
promotional d1str1.cts. The purpose of such dlstrlcts 1S to levy
assessments on all businesses w1thln a certa1n area to create a
source of funds for common promot1onal activlties such as hollday
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decoratlons,
lncreased lighting, decorat1.ve bus benches, common
area street improvements and so forth.
The part1cular areas WhlCh would be formed lnto districts under
this proposal are:
--Both sides of Lincoln Boulevard bounded by Wllshlre
Boulevard on the north and by the southerly City limits on the
south; and
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--Both sldes of Main Street and its side streets bounded by
Neilson Way on the west, Thlrd Street on the east, Pico Boulevard
on the north and Marlne Street on the south.
These districts would be "beneficial assessment dlstricts" which
would apply to tenants residlng wlthln the areas so designated.
Such assessments are collected by the City through the Business
License Tax collection. As formulated, the Chamber of Commerce
would be responsible for the admln1stration of these funds, with
the declslons on expenditures made by District Committees.
Com~osition of Committees
Each Distrlct would have lts expenditures governed by a D1strict
Committee, which would be composed as follows:
--four members who are merchants paying into the fund, to be
selected by the Lincoln Boulevard and the Main Street Committees
respectively of the Chamber of Commerce: and
--one member to be selected by the Llncoln Boulevard and the
Maln Street Committees respectlvely of the Chamber of Commerce 1n
consultatlon wlth the City Manager's Office to represent citizens
from the neighborhoods lmmediately adJacent to the Dlstrlcts.
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In addition to these ~QVGa voting members, two ex officio members
of each Dlstrict Committee would be deslgnated as follows:
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--one representatlve from the City staff, to be selected by
the City Manageri and
--one representative from the Convention and Visitors
Bureau, to be selected by the Bureau Board of Dlrectors.
The purpose of the participatlon of the Convention and Vis1tors
Bureau is to malnta1n clear channels of cornmunicatlon 1n the
planning and implementatlon of promotional events throughout the
City. It is also staff's belief that the Conventlon and Visitors
Bureau can be of substantlal assistance to the Dlstrict Committee
1n planning thelr promotional activltles.
Amount of Assessments
An assessment of one-tenth of one percent of total taxable sales
would be lmposed upon businesses within the Districts, with an
annual maximum beneficial assessment of $1,000, For any business
not holding a reta11 sales tax permit, the assessment would be at
the rate of $300 per year. Both the $1,000 cell1ng and the flat
rate of $300 for businesses not holding a retall sales tax permit
would fluctuate yearly based upon the Los Angeles/Long Beach
Metropolltlan Area Consumer Prlce Index (CPI).
Slnce this assessment would be based upon taxable sales of a
business, it would neither affect nor be affected by the proposed
lncrease in the bUS1ness license tax.
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Administration of Funds
The Clty would retaln 5% of the funds raised as administrative
cost of collectlon. The Chamber of Commerce would be the party
responslble for the admin1stration of the funds, and would have
certain duties to the Clty and to the District Committees 1n thlS
capacity. After the deductlon of the Clty'S adminlstrative costs
of 5%, the Chamber of Commerce would receive between 10% and 20%
of the remaining funds for its adminlstrative services. The
approprlate
percent
will
be
determined
through further
discussions wlth the Chamber of Commerce, the City Manager and
the Director of Flnance, and will be brought back to Council for
approval as part of the ordinance presented for adoption.
Duties of the Chamber of Commerce under this arrangement would
1nclude prov1ding meet1ng space for the Committees, malntainlng
financlal records,
lmplementing the decisions of the Committee
regarding expenditures and reporting to the Clty on a regular
basis on the activlties and finances on behalf of the District.
Clty Overslght
In order to malntaln general POllCY oversight and to ensure
coordinatlon throughout the City of various promotlonal efforts,
the District Committees will be required to present an annual
operating and expenditure plan City for c(1""~
to the Manager ~f'[l~
This plan would outline the upcomlng fiscal year's promotlonal
events and thelr cost and method of implementation.
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Termination of the Assessment D~str~cts
The merchants who are lnterested ln these beneficial assessment
dlstr~cts are concerned that the program develop into a truly
useful tool for common promotlonal actlvlties.
Thus while
requestlng the creation of these districts, they also wlsh to
reserve the right to terminate the assessment program ~f desired
at a later date with SlX months wrltten notlce. The City would
share thlS option of appropriate notice to cancel the program.
Slnce these Distrlcts are belng created at the request of and for
the benefit of these businesses, staff does not obJect to these
merchants retaining the right of termination upon reasonable
notice.
Recommendation
It is respectfully requested that the Clty Council dlrect the
City Attorney:
1. Prepare
ordinances
to
establish beneficial assessment
districts for bUSlnesses on Lincoln Boulevard and Maln Streets;
and
2. Prepare related agreements to be executed with the Chamber of
Commerce and Dlstrict Commlttees for the administration of these
assessment funds.
Prepared by:
Peg Gardels
Assistant to the Clty Manager
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