PURPOSE:

The purpose of this agenda item is for the City Council to consider approving the Agreement for Services between the City of Burbank and the Magnolia Park Partnership Inc.

BACKGROUND:

As part of the City�s efforts to improve the Magnolia Park area, the City initiated the formation of the Property-based, Business Improvement District (P-BID), (which is now formally called the Magnolia Park Partnership Inc.) to fund a variety of improvements in partnership with Magnolia Park property owners. A Management Plan was developed outlining the major components of the P-BID, such as the boundaries; the service plan; the budget; the assessment formula; and the governance of the organization. The specific services that are outlined in the plan include: parking improvements, additional maintenance, promotions, advertising, special events, business recruitment, and administration.

Property owners representing more than 50% of the owners by assessment signed a petition to form the P-BID. Subsequently, a majority of the property owners voted to approve the business improvement district on August 8, 2006. With the approval of the P-BID, the City Council appointed the first Board of the Magnolia Park Partnership Inc. on October 10, 2006. Each year the P-BID will receive approximately $250,000 in tax assessments from Magnolia Park commercial property owners excluding residential and non-profit property owners. The assessments will be received from the Los Angeles County Tax Assessors Office.

Since the formation of the P-BID, the Board has met three times and has approved the by-laws; filed and received their Articles of Incorporation; filed and received the non-profit status under 501c6 with the Internal Revenue Service; and appointed an Executive Board. In addition, the Board has approved the Agreement that is presented for the City Council�s consideration.

ANALYSIS & CONCLUSIONS:

The proposed agreement outlines the responsibilities of the City and the Magnolia Park Partnership Inc. The City is responsible for receiving the assessments from the Los Angeles County Assessors Office estimated at $250,000 per year and forwarding them to the Magnolia Park Partnership Inc. The P-BID�s responsibility is to carry out the Management Plan, provide and maintain certain insurance requirements including liability, crime, and director�s and officers insurance, and provide an annual report to the City Council.  

FISCAL IMPACT:

No fiscal impact to the City�s General Fund will be generated from this agenda item.

RECOMMENDATION:  

It is recommended that the City Council approve the Agreement for Services between the City of Burbank and the Magnolia Park Partnership Inc.

EXHIBITS:

A - Agreement for Services between the City of Burbank and the Magnolia Park Partnership, Inc.

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