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City of San Diego Downtown Property & Business Improvement District

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City of San Diego Downtown Property & Business Improvement District F CITY OF SAN DIEGO DOWNTOWN PROPERTY & BUSINESS IMPROVEMENT DISTRICT ANNUAL REPORT FISCAL YEAR 2014 PURSUANT TO THE PROPERTY & BUSINESS IMPROVEMENT DISTRICT LAW OF 1994 City of San Diego Mayor Bob Filner City Council Members Sherri Lightner Mark Kersey District 1(Council President Pro Tem) District 5 Kevin Faulconer Lori Zapf District 2 District 6 Todd Gloria Scott Sherman District 3(Council President) District 7 Myrtle Cole David Alvarez District 4 District 8 Marti Emerald District 9 City Attorney Jan Goldsmith Interim Chief Operation Officer Scott Chadwick City Clerk Elizabeth Maland Independent Budget Analyst Andrea Tevlin City Engineer James Nagelvoort TABLE OF CONTENTS SECTION I. EXECUTIVE SUMMARY .............................................................................. 1 SECTION II. BACKGROUND ........................................................................................... 4 SECTION III. PLANS AND SPECIFICATION .................................................................. 7 A. GENERAL DESCRIPTION OF THE DISTRICT ................................................ 7 B. DESCRIPTION OF IMPROVEMENTS TO BE MAINTAINED AND SERVICES ............................................................................................................... 7 C. IMPROVEMENTS .................................................................................................. 8 SECTION IV. ESTIMATE OF COSTS ............................................................................. 13 A. ESTIMATE OF COSTS TABLE .......................................................................... 13 SECTION V. METHOD OF APPORTIONMENT .......................................................... 15 A. GENERAL ............................................................................................................. 15 B. SPECIAL BENEFIT ANALYSIS ......................................................................... 15 C. ASSESSMENT METHODOLOGY ...................................................................... 19 D. ASSESSMENT RANGE FORMULA ................................................................... 21 SECTION VI. DISTRICT DIAGRAM .............................................................................. 23 SECTION VII. ASSESSMENT ROLL ................................................................................ 24 SECTION I. EXECUTIVE SUMMARY Project: Downtown Property & Business Improvement District Oversight: The assessments are overseen by the City of San Diego and are managed by the Property and Business Improvement District Management Committee, a 15 member committee of the Downtown San Diego Partnership. (The Partnership is a private non- profit business organization with over 325 property owners in the downtown area as members.) Apportionment Method: Greater of Lot or Building Square Footage (“SF”) and Linear Front Foot (“LFF”);or, Building Square Footage (“BSF”) – (Commercial Marketing District Zone Overlay Only) Benefit Zones: The Downtown Property & Business Improvement District (“PBID” or “District”) has 6 Zones identified as follows: Core/Columbia Cortez East Village Gaslamp Quarter Marina Commercial Marketing District Zone Overlay (“CMD Zone”) City of San Diego Engineer’s Report Page 1 Downtown Property & Business Improvement District FY 2014 July 2013 Table 1 – FY 2014 Summary Information by Zone Total Number of Units Parcels SF/BSF LFF Core/Columbia 2,071 25,594,382 83,132 Cortez 1,513 5,711,697 36,739 East Village 3,383 14,993,848 101,316 Gaslamp Quarter 993 3,203,233 16,365 Marina 2,726 5,760,461 26,491 CMD Zone (Overlay) 50 10,694,027 NA Totals 10,736 65,957,648 264,043 Proposed FY Proposed Unit Assessment Assessment 2014 FY 2014 Rates Revenue $/SF/BSF $/LFF Core/Columbia $1,789,847.31 $0.0422 $8.5378 Cortez $551,386.89 $0.0538 $6.6441 East Village $1,760,428.58 $0.0746 $6.3355 Gaslamp Quarter $1,085,027.75 $0.2161 $24.0030 Marina $690,431.03 $0.0666 $11.5807 CMD Zone $0.00 $0.0000 $0.000 Totals $5,877,121.56 N/A N/A District History: The District was originally established in February 2000 by a weighted majority of property owners in the District who approved the assessments in a property owner ballot procedure. The original PBID had a maximum 5-year statutory life that expired on June 30, 2005. District Renewal: The District was renewed on June 14, 2005 after 71% majority of property owners, based on assessment amount, approved the proposed assessments through a property owner ballot procedure. The renewal of the PBID included a 10 year term and provisions for annual rate increases of up to 5% per year. Commercial Marketing District Zone Overlay (CMD Zone): On September 25, 2012, a new zone was established within the District to assess commercial office properties with 50,000 building square feet or more for the benefit they would receive from a proposed Business Attraction Program. The CMD Zone was established after a 73% majority of the subject property owners approved the proposed assessments through a property owner ballot procedure. The CMD Zone included a three (3) year term commencing in fiscal year 2013 and sunsets along with the rest of the District in 2015. City of San Diego Engineer’s Report Page 2 Downtown Property & Business Improvement District FY 2014 July 2013 Annual Cost Indexing: The assessments, including the CMD Zone assessments, are authorized to increase by 5% per year. Additionally, the assessment for any property may change, up or down, if the total building area for the parcel increases or decreases. Bonds: No bonds will be issued in connection with this District or the CMD Zone. City of San Diego Engineer’s Report Page 3 Downtown Property & Business Improvement District FY 2014 July 2013 SECTION II. BACKGROUND A. Introduction On February 22, 2000, the Downtown Property & Business Improvement District (“PBID” or “District”) was established to provide enhanced services to properties in the District, including public safety, enhanced maintenance and lighting programs, and other services above and beyond those currently provided by the City of San Diego (“City”). The PBID had an original term of 5 years and expired on June 30, 2005. On June 14, 2005, the PBID was renewed (through a property owner ballot procedure with 71% approval based on assessment amount) for a 10 year term which will expire on June 20, 2015. The PBID encompasses areas previously included in the Downtown Maintenance Assessment District that was formed in 1997. On September 12, 2012, a new benefit Zone, the Commercial Marketing District Zone Overlay (“CMD Zone”) was established within the existing PBID to assess commercial office properties with 50,000 building square footage or more to fund a proposed Business Attraction Program. The CMD Zone will have a term which sunsets along with the PBID in 2015. This report constitutes the annual update of the Engineer’s Report for the City of San Diego Downtown Property & Business Improvement District for Fiscal Year (“FY”) 2014 which provides updated information regarding the budget and factors that affect the assessment. This report relies on the assessment methodology and benefit analysis from the Engineer’s Report prepared at the time of formation and approved by the property owners. The City Council pursuant to the provisions of the Property & Business Improvement District Law of 1994, Being Division 18, Part 7 of the Streets and Highways Code of the State of California, beginning with Section 36600 (the “1994 PBID Act”), Article XIIID of the Constitution of the State of California (“Article XIIID”), the Proposition 218 Omnibus Implementation Act (Government Code Section 53750 and following) (the “Implementation Act”), and (the 1994 PBID Act, Article XIIID and the Implementation Act are referred to collectively as the “Assessment Law”) desires to levy and collect annual assessments against lots and parcels within the District in the fiscal year commencing July 1, 2013 and ending June 30, 2014 to pay for the operation, maintenance and servicing of landscaping, lighting, drainage, safety programs, economic development and all appurtenant facilities, and specifically for the CMD Zone properties, business attraction and retention, property marketing, street disorder and nuisance abatement, and parking programs. The assessment rates set for fiscal year 2014 as set forth in this Engineer’s Report do not exceed the maximum rates established at the time the District was renewed or the CMD Zone was approved, therefore, the City and the District are not required to go through a property owner ballot procedure in order to establish the 2013/2014 assessment rates. The improvements and activities funded by the PBID are generally described as follows: City of San Diego Engineer’s Report Page 4 Downtown Property & Business Improvement District FY 2014 July 2013 Maintenance Programs: to increase the scope and frequency of landscaping, sidewalk, litter and graffiti cleanup on property in the PBID. Public Safety Programs: to support crime prevention, reduce the incidence of nuisance crimes, productively address the challenges associated with downtown’s street populations, and generally make the PBID property safer and more hospitable. Enhanced Lighting: to provide electricity and maintenance for mid-block lighting throughout the PBID. Public Information, Program Management & Reserves: Public Information, Program Management & Reserves to ensure professional and accountable deployment of improvements and activities for the direct advantage of property in the PBID.
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