SR-04-08-2014-8BCity Council Meeting: April 8, 2014
Agenda Item:
To: Mayor and City Council
From: Andy Agle, Director of Housing and Economic Development
Subject: Possible Expansion of Downtown Assessment District
Recommended Action
Staff recommends that the City Council:
1) Authorize staff to collaborate with Downtown Santa Monica, Inc. to explore
modification of the existing Downtown Property Based Assessment District
(PBAD) or establishment of a new property -based improvement district to provide
expanded services in two new areas, the Colorado Esplanade corridor and the
Lincoln Boulevard corridor;
2) Authorize the City Manager to negotiate and execute an agreement with
Downtown Santa Monica, Inc. (DTSM) to enable the City to fund 50 percent of
the costs associated with the development of a work plan, assessment
methodology, and public outreach associated with the potential expansions for a
cost not to exceed $25,500;
3) Authorize the City Manager to negotiate and execute contracts associated with
the development of engineer's reports, which analyze the potential benefits and
assessment amounts associated with the potential expansions for a cost not to
exceed $30,000; and
4) Appropriate the budget increases as outlined in the Financial Impacts and Budget
Actions section of this report.
Executive Summary
Public and private investments that are currently underway in Santa Monica's
Downtown, including the Exposition Light Rail Terminus station (estimated opening
2016), the Colorado Esplanade (estimated opening 2017), and several new residential
developments along Lincoln Boulevard, have prompted property owners and Downtown
Santa Monica, Inc. (DTSM) to explore a modification of the existing PBAD to address
the delivery of additional enhanced maintenance and ambassador services to the
Colorado Avenue and Lincoln Boulevard corridors. Staff seeks Council authorization to
explore enhanced services, including providing funding and retaining consultants with
expertise to develop a conceptual work plan and assessment methodology for each
area, provide technical assistance, and prepare documents and reports needed to
initiate each districts' formation if there is sufficient property -owner interest in each area.
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Staff recommends that Council appropriate budget in the total amount of $55,500 to
cover the cost of DTSM and City consultant fees. The City's expenditures for each zone
would be repaid from assessment proceeds if the respective zones are formed.
Background
Resolution 10336 (CCS) approved by City Council on July 24 2008, established the
Downtown Santa Monica Property -Based Assessment District (PBAD) to fund
enhanced maintenance, an ambassador program, and marketing and special projects
above and beyond those basic services provided by the City. The PBAD boundary
generally encompasses properties bounded by Ocean Avenue to the west, 7th Court to
the east, Santa Monica Freeway to the south, parcels on the north side of Wilshire
Boulevard and selected parcels with commercial or visitor - serving orientation north of
Wilshire Boulevard along 2nd, 3rd, 4th, 5th, 6th and 7th Streets.
With the imminent arrival of the Expo Light Rail Station and the completion of the
Colorado Esplanade, a significant increase in pedestrian activity and visitors along
Colorado Avenue is expected. Lincoln Boulevard is now included in LUCE- defined
boundaries of Downtown and new mixed -use residential development on and near
Lincoln Boulevard has increased pedestrian activity in the area. The urban context of
both areas is expected to continue to become more hospitable to walking, biking, and
public transportation.
Downtown stakeholders have recognized that the increase in pedestrian activity will
also result in more service needs, including improvements in maintenance of sidewalks
and streetscape elements, such as trash receptacles, seating, and directories;
deployment of additional ambassadors to interface with visitors; and other
enhancements or new initiatives specific to each corridor. Establishment of a modified
assessment district or new benefit zone over the Esplanade corridor and a new
assessment district for the Lincoln Boulevard corridor could provide funding for needed
improvements and enhanced programs and services.
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Discussion
The parcels along Colorado Avenue between the Expo Light -Rail terminus station and
the Santa Monica Pier currently are part of the existing PBAD, falling within
Zones 2 and 3. DTSM is contemplating the creation of a new overlay district or benefit
zone to be known as Zone 4, Esplanade Overlay, which would generally apply to those
parcels along Colorado Avenue between Ocean Avenue and Fifth Court or
Lincoln Court.
There is currently no property -based assessment district along Lincoln Boulevard.
The consultants would assess the criteria for the creation of a new property -based
assessment district along Lincoln Boulevard, bounded on the north by Wilshire
Boulevard and on the south by the Santa Monica Freeway. In order to be in
conformance with applicable law, both districts would require:
the creation of a formal "Management Plan" that describes the enhanced
activities, services and improvements to be provided,
an assessment methodology,
• a formal "Engineer's Report" documenting the benefits to be provided, and
• a vote of the affected property owners.
Staff recommends that the City allocate $55,500 for DTSM and City consultant services
related to the proposed expansion of services to Colorado Avenue and Lincoln
Boulevard. The City would fund $25,500 to DTSM ($14,000 for Lincoln Blvd. and
$11,500 for Colorado Ave.), which represents 50 percent of professional service
consultant fees needed by DTSM to develop a Management Plan, prepare an
assessment methodology, provide technical assistance, and outreach to stakeholders.
In addition, staff recommends a budget appropriation of $30,000 ($15,000 for Lincoln
Blvd. and $15,000 for Colorado Ave.), for the preparation of the Engineer's Reports
under contract with the City. The Engineer's Report for each zone would be used by the
City to evaluate the amount of special benefit subject properties would receive and that
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proposed assessments are fairly distributed. The City's expenditures for each zone
would be repaid from assessment proceeds, if the respective zones are formed.'
Commission Action
DTSM Board of Directors approved the initiation of a feasibility study on the proposed
modification and expansion of the PBAD on July 25, 2013.
Next Steps
If Council generally supports exploration of modification and addition to the existing
PBAD, staff would initiate the work and then return to Council to seek approval of a
Management Plan specific to each area. If the Management Plans are accepted, a
petition process would be needed to initiate a ballot measure on the formation of each
new zone or district.
Financial Impacts & Budget Actions
Implementing this recommendation would result in one -time costs in the amount of
$55,500, including one half of consultant costs, and $30,000 for the preparation of
Engineer's Reports. These activities require a one -time appropriation of $55,500 to
account 012681.555060 in the FY 2014 -15 budget.
If one or both of the districts or new benefit zone are formed, the City would be
reimbursed from collected assessments and funds would be credited to revenue
account 01263.406980.
Prepared by: Elana Buegoff, Sr. Development Analyst
Approved:
Andy Agle, Director
Housing and Economic Development
Attachments:
A. Map
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Forwarded to Council:
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Rod Gould
City Manager
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Reference:
Contract No. 9891
(CCS)