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Council Agenda - City of BurbankTuesday, February 21, 2006Agenda Item - 2 |
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Council Agenda - City of BurbankTuesday, February 21, 2006Agenda Item - 2 |
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PURPOSE
The purpose of this agenda item is to provide an update on the proposed Magnolia Park Property-based, Business Improvement District.
BACKGROUND
In October 2003, staff conducted several focus group meetings to determine the present condition and future needs for Magnolia Park as perceived by key constituencies of the community. The desired outcome was to achieve a roadmap that would lead to further revitalization of the area. The focused groups included property owners, merchants, Magnolia Park residents, Burbank residents outside the Magnolia Park area, and office workers.
In January 2004, staff presented the findings of the focus groups meetings to the City Council (see Action Plan as �Exhibit A�). At that time, the Council directed staff to share those findings with the Community Advisory Committee and develop an Action Plan to carry out the various findings.
On that same evening, the City Council made new appointments to the Magnolia Park Community Advisory Committee. The City Council appointed 15 members to the Committee made up of area merchants, property owners and residents to provide a balanced voice to help ensure vitality for area businesses, while remaining sensitive to quality-of-life issues for the residential community.
After reviewing the findings of the various focus groups, the Committee requested that the neighboring community be surveyed to make sure that the focus group findings do in fact reflect the views of the neighborhood. The survey was sent out to about 3000 households, with a return of over 400 representing a 12% return rate, which is considered a very high response rate. As it turned out, the results of the survey echoed the findings of the focus groups.
In September 2004, staff presented the Magnolia Park Action Plan that included the results from the five focus groups, the residential survey, and input from the Magnolia Park Community Advisory Committee. The Action Plan findings proposed plans for landscaping and facility upgrades, retail leasing, parking, promotions and events, and maintenance. Some of these improvements will be undertaken by the City; other items could be funded by the proposed Property-based Business Improvement District. Two years ago the City undertook a process to form a Property-based Business Improvement District in Downtown, known as the Downtown Burbank Partnership Inc., this has been a successful partnership between the City and Downtown stakeholders to improve Downtown with various services and improvements. With that success, the Action Plan proposes a similar district for Magnolia Park.
The Magnolia Park Property-based, Business Improvement District is proposed to be formed in accordance to a State Law that took effect in January of 1995. The �Property and Business Improvement District Law of 1994� allowed a new generation of Property and Business Improvement Districts in California. This new program was a bridge to provide a greater range of services and independence separate from government but allowing joint efforts to occur. Top components of the law include:
From the findings in the Action Plan, staff proceeded to utilize John Lambeth from Downtown Resources to discuss a possible Business Improvement District for Magnolia Park. (Mr. Lambeth is the consultant who helped form the Downtown Burbank Partnership Property-based, Business Improvement District) With Mr. Lambeth�s assistance, staff initiated meetings with property owners in the Magnolia Park area to hear what improvements they would like to see and to see if they might be interested in forming a P-BID to help fund the recommended improvements. Numerous property owner meetings were also conducted to develop a draft management plan. Three large group meetings were conducted with property owners to share the draft plan with them and receive feedback. Additional one-on-one property owner meetings occurred and are continuing for those who could not make the three large public meetings.
As with the Downtown Burbank Business Improvement District strategy, a Networking Committee was formed made up of interested property owners to meet with other property owners to explain the proposed District. This Committee was particularly helpful by the fact there is over 270 properties within the proposed District. As a result of all of these outreaches efforts, the draft management plan has been revised and updated. Some of the major issues that the property owners had concerned parking and the ficus trees.
Parking Parking has been cited as the number one concern of property owners. It has also been an impediment to attracting restaurants to the area because of the parking ratio required for restaurants is significantly higher (10 spaces per 1,000 square feet of building area) than retail (3.3 spaces per square feet of building area). In fact, many retail uses also don�t have their required parking by current parking standards, but have been �grandfathered� to allow for a change from one retail use to another. The �grandfather� provision does not apply to restaurants unless the prior use was a restaurant.
The City is currently in the process of trying to address some of these parking problems. The City Council approved a �Shared Parking Agreement� with the Burbank Community Church to allow the public to use 40 of their 52 spaces Monday through Saturday, since the Church does not need their parking during these periods. In return, the City agreed to reconstruct the Church�s parking lot. In addition, the City has funded the construction of diagonal parking on four side streets for this fiscal year, which will add a total of 16 spaces.
In the hopes of trying to save costs, the Public Works Department decided to bid both projects together. The initial bids for the projects were received on November 15, 2006. Unfortunately, the bids came in significantly higher than the engineer�s estimate. Since then, the projects were re-bid and the new bids are scheduled to be received on March 7, 2006. Construction is anticipated to start by early May 2006.
Staff has also initiated discussions with the Los Angeles Department of Water and Power to lease some of their property for additional parking. The City currently leases a portion of their property under power transmission lines on the south side of Magnolia Boulevard at Kenwood Street for parking. The new lease would be across the street on the north side of Magnolia Boulevard. Initially, staff was looking at leasing an area between Magnolia Boulevard and the alley to the north (Exhibit �B�). However, staff saw an opportunity to lease additional area north of the alley.
To explore this further, staff contacted the nearby property owners to determine what their concerns may be. Some of the concerns were that the parking be adequately landscaped and that motorists not be able to exit onto Maple Street from the northerly parking area. The neighbors also asked that the use of the northerly parking lot be restricted for use until 7:00 pm. An adjacent property owner also wanted to keep a grassy landscaped buffer between the parking area and their property. Staff is hoping that we can adequately address their concerns with the concept plan shown on Exhibit �B�.
The estimated cost for constructing this parking lot is $775,000. In addition, the Los Angeles Department of Water and Power will require compensation for the use of their land. They are currently in the process of determining the value of the property for a proposed lease with the City. Future maintenance of the parking lot is anticipated to be funded from parking revenue earned from parking permits for employee parking.
It should also be noted that a property owner on an adjacent block has expressed a strong interest in participating in the development of a parking lot and has indicated they would be willing to pay for the construction and leasing of a portion of the lot to satisfy their parking needs, since they have no onsite parking of their own.
Another option that staff is analyzing is whether reconfiguring existing parking spaces may create additional parking. Staff will also consider the acquisition of additional properties for parking.
Staff is also looking at other ways to better manage the existing parking supply in Magnolia Park. A parking demand study by Walker Parking Consultants determined that there is a significant supply of unused parking in the area; however, most of this parking is privately held. Staff is initiating further study on how to better utilize this parking as well as to allow new businesses that require additional parking (i.e. restaurants) to be able to rely on such offsite parking to satisfy their parking needs. Current parking codes make using such parking a difficult challenge.
If proposed businesses do not have the required parking they can try to obtain off-site parking agreement with nearby property owners. However, such agreements generally require that the off-site property owner have excess parking beyond the parking code before they can enter into such offsite parking agreements. Thus while many properties have excess parking based on the current business occupying their property, they may not have excess parking by code (the Do-It Center is an example). The only other alternative to new businesses is to obtain a parking variance, which is a lengthy process that requires certain findings that may be difficult to achieve.
Staff will be looking at various options for modifying the parking code requirements to better reflect actual parking demands and to allow increased flexibility for parking when appropriate. As noted above, off-site parking agreements are currently allowed only when there is excess parking as determined by code. A code change to allow off-site agreements based on the actual demand shown through a parking study would allow for additional use of off-site parking agreements in situations where the real demand is less than that predicted by the code. For example, the code currently requires every restaurant to have 10 spaces per 1,000 square feet of floor area regardless of the type of restaurant. In reality, different types of restaurant have different parking demands such as fast food restaurants versus sit-down restaurants, and parking demands may vary from daytime to evening hours. Code parking requirements could be updated to reflect these differences. As part of this process, staff will also review the entitlement process to determine whether a variance is the most appropriate way to allow for exceptions to parking requirements, or whether a conditional use permits or other type of discretionary approval may be better suited to allow more parking flexibility. Staff will also explore other options for code changes, such as allowing required parking to be provided through methods other than the traditional on-site parking lot.
All of the matters including the provisions of new parking and the modification of parking codes will be set forth in a proposed parking plan. Once this plan is prepared, it will be presented to the City Council for consideration.
In the proposed Management Plan for the Magnolia Park Property-based Business Improvement District, which is outlined later in this report, they call for dedicating $67,500 per year to help generate additional parking for the area. Such funds could be used for items such as entering into leases or shared parking agreements; however, it is not adequate enough for the major capital costs for constructing additional parking.
As mentioned above, construction of the proposed Los Angeles Department of Water and Power Department parking lot is estimated to cost $775,000. Staff proposes that the Redevelopment Agency pay for the cost of these improvements once an agreement is reached with Los Angeles. This would be similar to the partnership relationship that was developed between the City and Redevelopment Agency with the Downtown business improvement district. In that district, the City and Agency committed $1.1 million in their own assessments and matching funds towards capital improvements. (The estimated annual assessment to the City in Magnolia Park is only $1,800 or, $9,000 over the five year length of the proposed plan.) Staff is seeking direction from the City Council and Redevelopment Agency as to whether the matching contribution of $775,000 would be an acceptable target for matching funds for Magnolia Park.
Tree Replacement Program A second major concern of the property and business owners is the ficus trees in the area. Generally, they are frustrated by the fruit droppings that come from the trees that require constant sweeping and the staining that occurs on the sidewalks from the fruit during approximately three months of the year. They are also concerned about the damage caused to the sidewalks from the roots.
The Public Works Department also shares some of those concerns. Since 2000, the Public Works Department has spent nearly $1 million in repairing sidewalks along Magnolia due to tree root damage with the worst caused by the ficus trees (the $1 million cost includes approximately $500,000 for the current work that is being undertaken.)
It is proposed that a Tree Replacement Program be adopted to incrementally replace these trees over time. These trees would be replaced with a new specimen that does not cause these types of problems. It is recommended that staff work with the Magnolia Park Citizens Advisory Committee to develop the Program including the creation of a policy that identifies which trees should be replaced first.
MANAGEMENT PLAN The proposed Magnolia Park Management District Plan describes the District boundary, services and improvements, budget, cost, formation, and duration.
Location: The District includes commercial properties along Magnolia Blvd. and Hollywood way, bound by Chandler Blvd. to the north, Clark Ave. to the south, the City limits to the west, and Buena Vista to the east.
Services: A parking improvement program; maintenance services to clean debris from street trees and increase the frequency of litter removal; a tree replacement program; promotions, marketing, events, and business recruitment; and advocacy to promote business interests and allow the business community to speak with one voice. The proposed services are outlined in more detail in this report. Budget: Total maximum District budget for each year of its five (5) year operation is a base of approximately $250,000 per year with a maximum 3% increase per year.
Cost: The cost to the property owners in Zone 1 is $0.12 per lot square foot per year plus $0.05 per building square foot per year. Because of fewer services and reduced benefit, the cost to owners in Zone 2 is $0.06 per lot square foot per year plus $0.025 per building square foot per year. Zone 2 begins at Pass Avenue on Magnolia Blvd. Lot square footage was taken under consideration so those with larger building floor plates (and correspondingly less on-site parking) will be assessed more than those with smaller floor plates. Because of the commercial nature of the improvement programs, residential and tax-exempt properties are not assessed.
Formation: District formation requires submittal of petitions from property owners representing at least 50% of the total assessment. The �Right to Vote on Taxes Act� (also known as Proposition 218) requires a ballot vote in which more than 50% of the ballots received, weighted by assessment, be in support of the District. More detail on the process is explained later in this report, but, in short, the steps to formation include collect data, meet with property owners, petition drive required to have more than 51% signed off by property owners by weight, a 45 day ballot process, public hearing, and final approval by the City Council. All 3 steps (petition, ballot, Council approval) must pass for a Business Improvement District to become valid.
Duration: The District is proposed to have a five-year life. After five (5) years, the petition process, ballot process, and City Council hearing process must be repeated for the District to be reestablished.
The following are some key proposed aspects of the Management Plan.
1. Parking Improvements Improvements include leveraging other monies to create more spaces and better manage the existing spaces. The District is also proposed to develop, in conjunction with the City, a parking lot for approximately 43 spaces on Los Angeles Department of Water and Power property. In addition, the District will seek out Shared Parking Agreements with property owners with excess parking, similar to an agreement that will provide 40 parking spaces at the Burbank Community Church parking lot. The overall goal of the parking program is to create or make available at least 150 new or newly managed spaces in Magnolia Park.
The proposed budget for the Parking Improvement program is $67,500 or 27% of the total District budget.
2. Maintenance The proposed maintenance program will be developed to promote Magnolia Park as a vibrant commercial center. Cleaning, litter removal, and maintenance will keep the area clean and free from tree debris. This program will also implement a proactive tree replacement program. The District will replace existing ficus trees on an incremental basis with trees that are cleaner and do not cause damage from expanding roots.
The proposed budget for a Maintenance program is $57,500 or 23% of the budget.
3. Promotion, Advertising, Events, and Business Recruitment Special events in Magnolia Park as well as marketing and advertising of the area will keep shoppers coming for entertainment and special events as well as regular shopping. Banners will help create an identity as a destination for shoppers as well as make the area aesthetically appealing to attract new businesses to locate in Magnolia Park.
The proposed budget for Promotion, Advertising, Events, and Business Recruitment is $55,000 or 22% of the budget.
4. Advocacy and Administration A Magnolia Park Property and Business Improvement District will create a strong and organized voice to represent the property and business owners in the commercial District. Administration, with guidance from the Board of Directors, will provide for the day-to-day operations of the District programs. The proposed budget for Advocacy and Administration is $65,000 or 26% of the budget. 5. Contingency Reserve The proposed budget includes a prudent fiscal reserve. Changes in data and other issues may change the revenue and expenses. In order to buffer the organization for unexpected changes in revenue, and/or allow the District to fund other overhead or renewal costs, the reserve is included as a budget item. This budget item may also be used to pay for any costs related to renewing the District. The proposed budget for the contingency reserve is $5,000 or 2% of the budget.
Operating Budget Summary The total annual improvement and activity plan budget is projected at $250,000 and shall not exceed $257,500 in year two, $265,225 in year three, $273,182 in year four, and $281,377 in year five. Property owners will contribute the entire amount through annual lot square footage and building square footage assessments. The annual draft budget for the Service Plan for year one is as follows:
Parking Improvements $ 67,500 Maintenance $ 57,500 Promotions, Advertising, Events, and Business Recruitment $ 55,000 Advocacy and Administration $ 65,000 Contingency Reserve $ 5,000 TOTAL $250,000
City Base Levels of Service Policy Throughout the process of establishing the Magnolia Park Property and Business Improvement District, stakeholders and business and property owners have voiced concerns that the City of Burbank maintains existing services at verifiable �baseline� service levels. A formal base level of service policy ensures that existing City services are enhanced, not replaced, by new Property and Business Improvement District services.
Magnolia Park P-BID Governance The proposed District shall be governed by a private non-profit corporation with oversight from the Burbank City Council. The Board of Directors of the non-profit organization and its staff are charged with the day-to-day operations of the Property and Business Improvement District. In addition, the state law requires that the nonprofit corporation provide an annual report to City Council to report on revenue received, expenditures made, and budgets for the upcoming year.
The Board of Directors should represent a variety of interests within the District and respond to the needs of property and business owners. It is recommended that the proposed Board includes this representation.
6 Property Owners (Could also be business owners) 2 Residential Representatives 2 City and Redevelopment Agency Representatives 1 Business Owner
Steps to Formation of a P-BID
CONCLUSION
Significant public outreach efforts were used to help draft the proposed Management Plan. Five focus groups were conducted, a 3,000 resident survey was mailed and results were recorded, and feedback and input from the Magnolia Park Community Advisory Committee were complied to produce the Magnolia Park Action Plan. Over 30 one-on-one property owner meetings were conducted to hear what improvements they would like to see in Magnolia Park. A Networking Committee of property owners and business owners was formed to receive additional feedback on desired improvements and speak with other property owners about the P-BID for Magnolia Park.
In order to strengthen a partnership relationship between the City and the proposed business improvement district, it is recommended that the City make a commitment to pay for certain capital costs in the area. Specifically, it is recommended that the Redevelopment Agency pay for the estimated $775,000 in construction costs for a proposed parking lot on the north side of Magnolia Boulevard between Maple and Kenwood Street. Staff is seeking direction on whether the City Council and Redevelopment Agency are interested in making such a commitment.
The petition process is proposed to begin at the end of February for approximately 45 days. Staff will present the results to City Council if over 50% of property owners by land use is achieved. The next step would be for City Council to approve, followed by a ballot process. If the P-BID passes, all assessments would be recorded and sent to the LA County Tax Assessors by August 1, 2006.
FISCAL IMPACT
No fiscal impact at this time but staff will seek matching funds for the proposed parking improvements.
RECOMMENDATION
It is recommended that the Council direct staff to proceed with the Property-based Improvement District formation process and to proceed with the Los Angeles Department of Water and Power parking lease as a proposed matching fund investment for the Magnolia Park area.
EXHIBITS
A - Magnolia Park Action Plan B - Conceptual Parking Layout for Los Angeles Department of Water and Power Department
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