PURPOSE:

The purpose of this agenda item is for the City Council and the Redevelopment Agency to consider approving an agreement with the Downtown Burbank Property-based Business Improvement District (P-BID) and appropriate funds for the Redevelopment Agency�s portion of the Assessment District.

BACKGROUND:

As part of the Agency�s efforts to improve the Downtown, the Agency initiated the formation of a Property�based, Business Improvement District, which is now formally called the Downtown Burbank Partnership, Inc., 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 P-BID including: the boundaries; the service plan and budget; the assessment formula; and the governance of the organization. Specific items that are proposed include capital improvements such as smart parking, wayfinding signage, street/paseo upgrades and holiday decorations. Also included in the Plan are increased maintenance and security, promotions, advertising, special events, and administration.

 On July 22, 2003, the City Council approved the P-BID and on October 28, 2003, the City Council appointed the first Board of the Downtown Burbank Partnership, Inc.

The P-BID has a five year plan, which is the maximum length that a P-BID may be established, before a P-BID needs to be renewed. Beginning each January, the P-BID will receive approximately $720,000 from the Los Angeles County Tax Assessors from property taxes from Downtown property owners excluding residential and nonprofit property owners. The City of Burbank and the Burbank School District are assessed as well; however, the Agency has agreed to fund the BUSD assessment costs. The total annual cost to the Agency will be approximately $123,000 per year.

The Downtown Burbank Partnership, Inc. has met three times since its formation, and has approved their 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 first phase of the holiday decorations (the large ornaments located at the AMC and IKEA), and has approved the proposed agreement that is presented here for City Council and Agency consideration.

ANALYSIS AND CONCLUSION:

The proposed Agreement outlines the responsibilities for the City, the Agency and the Downtown Burbank Partnership, Inc. The City is responsible for the collections from LA County and forwarding the assessments of the District to the Downtown Burbank Partnership, Inc. The Agency is proposed to pay its entire five-year assessment upfront (including the City�s and Burbank Unified School District�s assessments) to help seed important capital projects and the P-BID�s administrative expense. The $615,000 in funds will be held and expended by the Agency for certain work such as the the proposed wayfinding signage program (the Wayfinding program is scheduled for Agency�s consideration on January 20, 2004), holiday decorations (Phase I completed), and certain administrative and promotional expenses. The P-BID�s responsibility is to carry out the Management Plan, provide and maintain certain insurance requirements, and provide an annual report to the City. The District agrees to have insurance that will include liability coverage for $1,000,000.00 covering services for the District, crime coverage insurance and Directors and Officers insurance.

CONCLUSIONS:

The Downtown Burbank Partnership, Inc. has taken several important steps including filing and receiving the Articles of Incorporation, receiving their nonprofit tax status, approving their by-laws and appointing their Executive Board. By way of this Agreement, the Downtown Burbank Partnership, Inc. has also approved funding for certain capital projects and administrative expenses. The funding of capital projects including holiday decorations and the proposed wayfinding program (the Wayfinding program is scheduled for Council consideration January 20, 2004). Upcoming actions by the Downtown Burbank Partnership, Inc. include: consideration of an Ambassador/Security program; promotion, events and marketing; street maintenance upgrades; landscaping and paseo upgrades; and a smart parking program.

FISCAL IMPACT:

The Agreement requires the Agency to appropriate $615,000 as their estimated assessment over the first five years. The Agency�s payment includes the assessments on behalf of the City and the Burbank Unified School District. The District agrees to recognize the Agency prepayment as a credit to future assessment over the five year period.

RECOMMENDATION:

It is recommended that the City Council and Redevelopment Agency approve the Agreement with the Downtown Burbank Partnership, Inc. and appropriate funds for the Agency�s five year assessment. 

EXHIBITS:

 A. Agreement

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