PURPOSE:

The purpose of this agenda item is for the City Council to approve the annual assessment of the property owners within the Downtown Burbank Business Improvement District.

BACKGROUND:

As part of the City�s and Redevelopment Agency�s efforts to improve Downtown, a property�based Business Improvement District was formed to fund a variety of improvements in partnership with Downtown Burbank property owners. A Management District Plan was developed, which outlines the major components of the Business Improvement District including: the boundaries; the service plan and budget; the assessment formula; and the governance of the organization. The service plan specifically outlines the proposed improvements and services including capital improvements, maintenance and security, promotions, advertising, special events and administration.

On July 22, 2003, the City Council approved the Business Improvement District and on October 28, 2003, the City Council appointed the first Board of Directors for the organization now known as the Downtown Burbank Partnership, Inc.

The Business Improvement District has a five year plan, which is the maximum length that a property-based business improvement district may be established before it needs to be renewed. Beginning each January, the District receives approximately $720,000 from the Los Angeles County Tax Assessor from property taxes paid by Downtown property owners, excluding residential and nonprofit property owners.

Downtown Burbank Partnership, Inc. has been established as a California non-profit mutual benefit corporation whose sole purpose is to improve Downtown Burbank with initiatives that are designed and supervised by those who pay the assessment. Staff is asking the City Council to consider approving the 2005-06 annual assessment, which remains unchanged from the prior year.¹

ANALYSIS AND CONCLUSION:

As noted in the 2004 Annual Report presented January 2005, a number of improvements and new programs were implemented during the past two years through the Downtown Burbank Partnership. This includes new holiday d�cor, improved maintenance and security, a Goodwill Ambassador Program and a free wireless Internet access program. Marketing and promotions have been an important focus of the Downtown Burbank Partnership providing the development of a new website (www.downtown-burbank.org), a Downtown directory brochure and a monthly newsletter. A leasing packet, window decal announcements, and staff-broker relations have also helped to cultivate interest from new retailers to locate in Downtown. In addition, numerous events are planned for the year including free-to-the-public summer concerts, the Downtown Burbank Fine Arts Festival, and the award-winning 12 Days of Holiday Cheer.

FISCAL IMPACT:

There is no fiscal impact associated with the recommended City Council action. The total annual assessment to the City and Redevelopment Agency is approximately $123,000 per year; however, the Agency agreed to pay the City�s and Agency�s five year share up front to help pay for capital items that could be installed sooner rather than later such as holiday decorations, wayfinding and smart signage. The remaining $597,000 annual assessment is paid by approximately 130 property owners throughout Downtown excluding residential and non-profit property owners.

RECOMMENDATION:

It is recommended that the City Council adopt the resolution authorizing the 05-06  assessment for the Downtown Business Improvement District.

¹Each property is assessed $0.16 per lot square foot per year, and $2.00 per linear frontage foot along San Fernando Boulevard between Magnolia Boulevard and Verdugo Avenue.

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