Title
RESOLUTION NO. 2018-021 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE 2018 ANNUAL REPORT FOR THE DOWNTOWN CHULA VISTA PROPERTY-BASED BUSINESS IMPROVEMENT DISTRICT
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RECOMMENDED ACTION
Recommended Action
Council adopt the resolution.
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SUMMARY
The Downtown Chula Vista Property Based Business Improvement District (PBID) was organized in 2001 to implement various enhancement services within the Third Avenue and Downtown area and is directly administered for the City by the owner’s association known as the Third Avenue Village Association (TAVA). In accordance with Streets and Highways Code 36650-36651, TAVA is required to prepare a report for each fiscal year, except the first year, for which assessments are to be levied and collected to pay the costs of the improvements, maintenance, and activities described in the report. The attached report does not propose any modifications to the boundary of the District, the basis and method of levying assessments or any changes to property classification and complies with the reporting requirements outlined in the Streets and Highways Code. The total annual assessment amount for the 2018/19-year is estimated at $455,000. Staff has reviewed the annual report and recommends the City Council approve the attached resolution.
ENVIRONMENTAL REVIEW
Environmental Notice
Environmental Notice
The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required.
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Environmental Determination
The Director of Development Services has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the approval of the 2018/19 annual report of the Third Avenue Business Improvement District is not a "Project" as defined under Section 15378 of the State CEQA Guidelines because it involves a governmental fiscal activity which will not result in a potentially significant physical impact on the environment. Therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the activity is not subject to CEQA. Thus, no environmental review is required.
BOARD/COMMISSION RECOMMENDATION
Not applicable.
DISCUSSION
The Downtown Chula Vista Property Based Business Improvement District (PBID) was organized in 2001 to implement various enhancement services within the Third Avenue and Downtown area and is directly administered for the City by the owner’s association known as the Third Avenue Village Association (TAVA). In accordance with Streets and Highways Code 36650-36651, TAVA is required to prepare a report for each fiscal year, except the first year, for which assessments are to be levied and collected to pay the costs of the improvements, maintenance, and activities described in the report.
The attached report does not propose any modifications to the boundary of the District, the basis and method of levying assessments or any changes to property classification and complies with the reporting requirements outlined in the Streets and Highways Code.
TAVA administers funds received from a PBID and receives approximately $455,000 annually. The PBID and TAVA have successfully offered a shared voice for downtown businesses while newer investments and projects have diversified the shopping, dining, and office experiences of the area.
Prepared in accordance with the State of California Property and Business Improvement District law of 1994, Streets and Highways Code section 36650, the 2018 Annual Planning Report represents the second year of program operations within the current ten-year term. Pursuant to Streets and Highway Code 36650-36651 TAVA is required to have the following information:
• Section 2: PBID Boundaries
There are no recommended changes to the boundaries of the PBID district or in any zones or classification of property or businesses within the district.
• Section 3: Assessment Budget
The estimate for improvements, maintenance, and activities includes $453,000 in total expenditures, including a 5% reserve of $23,000.
• Section 4: Method of Financing
Revenues will be collected through the levy of special annual assessments upon the real property for which the services and activities are provided. There are two benefit zones, those parcels that front Third Avenue and those that do not.
• Section 5: Surplus/ Deficit Revenue
The previous year’s surplus revenue will be carried over into the following fiscal year and TAVA anticipates that there will be approximately $11,600 of surplus from 2018 into 2019.
• Section 6: Other Funding
Additional funds are expected from public events that market the business district to San Diego County residents. Projected revenue from these events are estimated to be $32,750 increasing the PBID operating revenue to $482,402.
• Section 7: Activity, Improvements and Services
Environmental and Economic Enhancements in addition to Advocacy and Administration include various key functions including homeless assistance, graffiti removal and economic development and a reserve of 5%.
Staff has reviewed the annual report and recommends the City Council approve the attached resolution.
DECISION-MAKER CONFLICT
Staff has reviewed the property holdings of the City Council and has found that, Mayor, Mary Casillas-Salas has real property holdings within 500 feet of the boundaries of the property which is the subject of this action. Consequently, pursuant to California Code of Regulations Title 2, sections 18700 and 18702.2(a)(11), this item presents a disqualifying real property-related financial conflict of interest under the Political Reform Act (Cal. Gov't Code § 87100, et seq.) for the above-identified member.
Staff is not independently aware, and has not been informed by City Council member, of any other fact that may constitute a basis for a decision maker conflict of interest in this matter.
LINK TO STRATEGIC GOALS
The City’s Strategic Plan has five major goals: Operational Excellence, Economic Vitality, Healthy Community, Strong and Secure Neighborhoods and a Connected Community. The PBID support the Economic Vitality goal as it seeks to enhance business activity along the Third Avenue corridor.
CURRENT YEAR FISCAL IMPACT
There is no current year fiscal impact on the General Fund as a result of this action.
ONGOING FISCAL IMPACT
There is no on-going fiscal impact as a result of this action.
ATTACHMENTS
1. Third Avenue Village Association Annual Report
Staff Contact: Eric Crockett, Director of Economic Development