The purpose of this agenda item is for the City of Burbank to continue procedures and finalize proceedings on the proposed PBID, and authorize the opening of ballots. If over 50% of the ballots support the PBID based on the total assessment value, the City of Burbank is to consider forming the actual PBID. The purpose of the PBID is to provide special services and improvements to enhance and revitalize Downtown Burbank.

On June 3, 2003, the City Council considered initiation of the proposed PBID after receiving a petition representing over 50% of the property owners (weighted by the proposed assessment) supporting the proposed PBID. At that time, the City Council authorized the distribution of ballots to the property owners who would be subject to the assessment. This action was the result of several months of developing a Management District Plan in conjunction with various stakeholders in Downtown including property and business owners, the Stakeholder�s Association, and a PBID Steering Committee. The following summarizes the Management District Plan that was previously reviewed by the City Council on June 3, 2003.

The Management District Plan outlines major components of the PBID including: the proposed boundaries; service plan and budget; the proposed assessment formula (engineer�s report); and the proposed governance of the organization (Exhibit �A�).

As shown in Exhibit �B�, the proposed boundaries include all of Downtown as generally described as Burbank Boulevard to the north, Glenoaks Boulevard to the east, Verdugo Avenue to the west and the I-5 freeway to the west. In addition, it includes the area known at the Downtown Burbank Station (formerly the Regional Intermodal Transportation Center, or RITC).

The Plan proposes a number of capital improvements as well as service programs such as maintenance, promotions and administration. The Plan proposes a 5-year budget, which is the maximum length that a PBID may be established, before a PBID needs to be reestablished. While some of the capital improvements may be installed during the first year, the budget illustrates them over a five year period. It is also anticipated that the Redevelopment Agency will supplement the cost for two capital items, Smart Parking and Wayfinding/Signage. Therefore, while the PBID will pay $300,000 toward Smart Parking ($60,000 per year), the Agency is anticipated to pay an additional $350,000 toward Smart Signage for a total amount of $650,000. (The Agency/City is planning to obtain grant funding to defray most of this cost). In addition, the Agency is paying $100,000 toward preparing the sign poles for the new wayfinding signs. The following summarizes the budget on an annual basis:

The proposed assessment formula has been designed to be fair, balanced, and commensurate with benefits received. The assessment formula can be in many forms such as land square footage, building square footage, and linear front footage. For this PBID, it is proposed that the PBID be primarily based on land square footage. An additional linear front footage assessment is proposed for the properties along San Fernando Boulevard between Magnolia Boulevard and Verdugo Avenue recognizing they may have some additional benefit per the plan.

The proposed assessment is $.16 per square foot of land per year, and $2.00 per linear front footage along San Fernando Boulevard south of Magnolia Boulevard. For example, an owner with a 10,000 square foot parcel and 50 feet of front footage on San Fernando Boulevard would pay $1,600 (land), and $100 front footage, for a total of $1,700 per year.

It was also recognized that certain land uses should pay a lesser rate, and others should be exempted all together. The Plan therefore proposes that industrial uses only pay 50% of the above assessment, and that residential uses and non-profits such as the YMCA and Salvation Army be exempted.

Finally, it is important to note that governments are not exempted from paying the assessments (even if they are non-profit) per the PBID law. In addition, staff believes that it is important that the City and Agency demonstrate they are a partner in this PBID organization. Therefore, the City, Redevelopment Agency and other government jurisdictions will be assessed at the same $.16 formula. However, it is recommended that the Agency pick up the assessment costs for both the City of Burbank, and the Burbank Unified School District. The City�s annual assessment is estimated to be $81,100, and the School District�s assessment is approximately $6,700 per year. With the Agency�s assessment of $35,200, the total annual cost to the Agency would therefore be approximately $123,000. In other words, the Agency would pay a total of $615,000 over five years, while the private property owners would raise $2,985,000 over the same time. As part of the City and Redevelopment Agency�s actions, it is recommended that they consider approval of two Cooperation Agreements between the Agency and the City and the Agency and the School District to pay their portion of the assessment (The Chief Facilities and Development Superintendent will approve for the School District).

One of the issues that came up during the process of preparing the plan was how the various property owners would be represented as part of the PBID. Some Village District owners were concerned that the large property owners in the Mall District (Crown Realty and Development and IKEA) may dominate the administration of the District. Likewise, the large owners desired to have substantial representation, since they were paying a large share of the assessment. It was also recognized that the City and Agency should have representation, and that there should be some at-large representation. Initially, the Plan recommended that the ultimate Board of Directors of the organization should have the following nine-member board.

However, at the June 3, 2003, the City Council raised some concerns about the Board representation, and what controls could be put in place to make sure that the ultimate make-up of the Board could not be changed at a later date. The concerns included the Council�s desire to have all voting members be within the District, and that small business owners receive representation on the Board. (The Village District is defined as the area bounded between First Street and Third Street, south of Magnolia and north of Verdugo.) It is therefore recommended that the one at-large member representing the broader business community be modified to be a small business owner within the District. The small business owner is proposed to be defined as a business with 25 or fewer employees, and earning under $5 million in gross sales. The definition of the at-large, large property owner is proposed to be further refined as an owner with an annual assessment of at least $10,000. Conversely, a small property owner would be an owner who is assessed less than $10,000 per year. In addition, two non-voting members are proposed to represent a resident, and non-profit entities that are representative of the area, but who are not assessed as part of the District. In order to make sure that this Board cannot be modified from its core representation, it is also recommended that the by-laws include language requiring a 7/9^th super-majority vote to modify the Board representation. The following is the proposed representation of the Board:

If the City Council approves the proposed PBID, the Redevelopment Agency would be assessed $123,000 per year for five years, or a total of $615,000. The private property owners would be assessed $2,985,000 over five years. The total district-wide budget would therefore be $3,600,000 over the five-year period.

As mentioned before, a comprehensive strategy for the revitalization of Downtown Burbank will require a broad level of property and business owner support including a dedicated funding source to be successfully implemented. The proposed PBID offers a downtown-wide voice to owners and businesses, backed-up with funding to provide for improvements and services necessary for a vital downtown area. Should the property owners at the end of the five-year Plan no longer wanted to participate in the PBID, the district would automatically dissolve, unless a majority of the owners wished to continue the PBID. Thus, it is in their collective interest to see that the Plan is ultimately successful.

If the City Council approves the formation of the PBID, it is recommended that the City Council direct staff to advertise to solicit applications for the proposed PBID Board. Once sufficient applications are received, staff will return to the City Council for the selection of the Board. If the formation of the P-BID is approved by Council, Exhibit C outlines the final schedule of actions remaining in the P-BID process.

Subject to the ballot results, it is recommended that the City Council approve the proposed PBID and Cooperation Agreement with the Agency, and that the Agency approve the Cooperation Agreement with the Burbank Unified School District and the City.

I. Introduction and Overview

Developed by a growing coalition of property and business owners, the Downtown Burbank Property and Business Improvement District (PBID) is a benefit assessment district proposed to improve Downtown Burbank. The Property and Business Improvement District will establish various programs to increase the commercial activity in Downtown Burbank. This approach has been used successfully in other downtowns throughout the country to increase sales, attract new tenants, increase occupancies, and increase property values.

Location: The District runs on the north side along Glenoaks Boulevard to Verdugo Avenue on the east border, to Golden State Freeway in the south, and Burbank Boulevard on the west side. A description and maps begin on page 8 for specific boundaries of the District.

Services: A signage, parking and aesthetic improvement program to upgrade the attractiveness of the downtown area; maintenance services to increase the frequency of litter and debris removal; advocacy to promote business interests and allow the business community to speak with one voice.

Budget: Total maximum District budget for each year of its five (5) year operation is a base of approximately $730,000 per year with a maximum 3% increase per year.

Cost: The cost to the property owner is $0.16 per lot square foot per year, and $2.00 per linear frontage foot along San Fernando Boulevard, between Magnolia and Verdugo. Because of the commercial nature of the improvement programs, residential and tax-exempt properties are not assessed. Industrial properties will benefit from approximately half of the services offered, and therefore will be assessed at 50% of the assessment rate.

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.

Duration: The proposed District will 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.

II. Why a PROPERTY AND BUSINESS IMPROVEMENT District for Downtown Burbank?

There are several reasons why now is the time to form a Property and Business Improvement District in Downtown Burbank:

1. The Need to be Proactive in Determining the Future of Downtown Burbank.

In order to protect their investment, property owners must be partners in the process that determines how new development projects are implemented. Currently, property owners react to proposals individually without focus or coordination. Property owners in cities such as Pasadena, Los Angeles, Portland and Phoenix have been successful at leading and shaping future downtown developments through their strong business improvement Districts.

A District in Downtown Burbank will provide a professional administrator with the financial resources to ensure the challenges faced by Downtown Burbank businesses and property owners will be proactively addressed.

2. The Need to Attract New Business and Investment Throughout Downtown Burbank.

If Downtown Burbank is to compete as a successful commercial District it must develop its own well financed, proactive strategy to retain business and tenants as well as attract new business and investment. A District will provide the financial resources to develop and implement a focused strategy that will work to fill vacancies and attract new businesses to all areas of Downtown Burbank.

3. An Opportunity to Create a Private/Public Partnership with a Unified Voice for Downtown Burbank.

Because property owners would be investing new private money through the Property and Business Improvement District, they will be looked upon as a strong partner in negotiations with the City. This partnership will have the ability to leverage the property owner�s investment with additional public investment in Downtown Burbank. Both property and business owners could be united under the Property and Business Improvement District umbrella, which would then be able to approach the public sector with a viable and unified private sector voice.

4. An Opportunity to Establish Private Sector Management and Accountability.

A non-profit private sector business organization formed for the sole purpose of improving Downtown Burbank would manage these new services and the District. Annual Property and Business Improvement District work plans and budgets will be developed by a board composed of stakeholders that own businesses and property in the Downtown Burbank area. New marketing and promotion services will be subject to private sector performance standards, controls, and accountability.

III. What Is a Property and Business Improvement District?

The International Downtown Association estimates that more than 1,200 downtown Property and Business Improvement Districts currently operate throughout the United States and Canada.

A Property and Business Improvement District may provide services, identity formulation, market research, and economic development in addition to those provided by local government. Property and Business Improvement Districts may also provide physical improvements such as entry features, benches, or lighting. These services are concentrated within a distinct geographic area and are paid for by means of a special property owner assessment. A Board of Directors representing those who pay would govern the organization responsible for providing these services.

Property and Business Improvement Districts are proven to work by providing services that improve the overall viability of commercial Districts, resulting in higher property values and sales volumes.

The Downtown Burbank Property and Business Improvement District will be formed pursuant to a State Law that took effect in January of 1995. The �Property and Business Improvement District Law of 1994,� which was signed into law by Governor Pete Wilson, ushered in a new generation of Property and Business Improvement Districts in California by allowing a greater range of services and independence from government. Key provisions of the law include:

� Allows Property and Business Improvement Districts to undertake services ranging from security to maintenance, and from business advocacy to economic development.

� A Property and Business Improvement District designed and governed by those who will pay the assessment.

� Requires petition support from private property owners paying at least 50% of proposed private property assessments to form a Property and Business Improvement District.

� Allows for the formation of a property owner advisory board to provide oversight of District operations and submit a yearly service plan.

� Requires limits for assessments to ensure that they do not exceed pre-established levels.

� Provides a multi-year life for Property and Business Improvement Districts and requires a new petition process to renew a District. The Downtown Burbank Property and Business Improvement District will have a five (5) year term.

The �Property and Business Improvement Business District Law of 1994� is provided in Appendix 1 of this document.

IV. History of Downtown Burbank AND THE PBID

A. Area History Overview

There have been positive changes in the Downtown in the last few years. Approval of the AMC Downtown Burbank Entertainment Village in 2000 was a catalyst in the renewed effort by the Burbank Redevelopment Agency to revitalize the Downtown core. Simultaneously, developers took active notice of mixed-use opportunities including the Old Police Block on 3.2 acres, the 141-unit Senior Artists' Colony at 400-422 South San Fernando, as well as several of the major vacancies in the District. The City implemented a series of focus groups with businesses and residents in spring 2002 to determine Downtown's needs and priorities. This has led to the shaping of key directives, as well as research into effective management structures and marketing campaigns. There is a renewed focus on making Downtown cleaner, more attractive and more fun. In addition, there has been increased interest in attracting more customers to the Downtown area. This interest by the business and property owners led to the initiation of the effort to explore a Property and Business Improvement District (PBID).

B. Initial Stakeholder Meetings and Formation of the Steering Committee

Downtown Burbank property and business owners have begun the process to develop an organizational structure and financing to address the above challenges. Part of this endeavor is a coordinated effort to distinguish Downtown Burbank as a desirable commercial area in the Los Angeles region. This Property and Business Improvement District Plan, and the creation of a unified organization with a secure funding mechanism, provides another critical step in achieving the vision developed by the property and business owners.

In 2002, the City of Burbank determined that the formation of a PBID would enhance the economic development of the Downtown Burbank commercial area. To this end, the City contracted with Mr. John Lambeth to hold property owner meetings to determine the property owners� concerns and interests. The meetings in 2003 explained a PBID to local businesses and landowners in Downtown Burbank.

Mr. Lambeth held several individual and Steering Committee meetings to organize and develop a private-sector organization. The goal of the meeting was to focus the PBID creation effort and develop a draft Property and Business Improvement District Plan for a PBID. The Steering Committee identified several needs for Downtown Burbank and established a strategy for forming a Property and Business Improvement District in Downtown Burbank. This Property and Business Improvement District Plan is the result of those Steering Committee meetings.

C. Meetings with Property Owners, Business Owners & Other Stakeholders

In 2003, the City of Burbank hosted workshops with property owners, business owners, and other stakeholders. The attendees represented both large and small properties and businesses in Downtown Burbank. The purpose of these meetings was to (1) present information on Property and Business Improvement Districts, and (2) to elicit property and business owners� interests in and/or concerns about Downtown Burbank. The collection of information included surveys and discussions of business issues. The participants discussed service plan options, organizational issues, boundaries, benefit zones, and various assessment methodologies.

We obtained interesting preliminary results. In all of these groups, signage and aesthetic improvements were identified as a high priority. When asked how limited resources should be allocated, many respondents also suggested that security business recruitment and retention, debris removal and sidewalk washing, maintenance, and landscaping were also important service considerations. Most respondents believed that Burbank is quite safe and that customer�s perception is that Burbank is quite safe.

A few stakeholders that are south of Magnolia Boulevard commented that they had concerns about their voice being represented in the new District. They wanted to ensure that the Village area interests were well represented. In response to these concerns, the proposed Board of Directors includes strong representation from this area.

Some stakeholders responded that they would dedicate resources to a maintenance program, promotional activities, and the development of an advocacy program for Downtown Burbank. Special events and improved parking were also areas that the respondents expressed interest in. The respondents agreed that the Property and Business Improvement District option should be explored.

Representatives from Downtown Resources continued discussions with property owners culminating in the development of this plan. A number of individual meetings were held to further refine the needs and desires of property owners and business owners in the area. This plan now sets the blueprint for further action in Downtown Burbank.

Members of the Downtown Burbank PBID Steering Committee and representatives from Downtown Resources continued to meet to discuss and refine the Management District Plan. In April, after lengthy discussions with key stakeholders in Downtown Burbank, the Steering Committee and Downtown Resources presented a draft Property and Business Improvement District plan to the property owners. Downtown Resources conducted a property owner workshop to receive feedback regarding the plan.

Members of the Steering Committee and representatives from Downtown Resources continued to refine the Property and Business Improvement District plan to meet the property owners� comments from the workshops. Members of the Burbank Redevelopment Agency lent their support for the District by visiting key stakeholders to discuss the proposed District. This Property and Business Improvement District plan is the end result of the discussions with the property owners from Downtown Burbank.

V. Property and Business Improvement District Boundaries

The Downtown Burbank Property and Business Improvement District will deliver services to Downtown Burbank. On the north side, the District is bordered by Glenoaks Boulevard and runs down Verdugo Avenue on the east. The southern border of the District is the Golden State Freeway, including two Metrolink parcels just south of the freeway. The western border up is Burbank Boulevard from the freeway, down Third Street to Harvard Drive, the up Harvard to meet Glenoaks again.

The service area includes approximately 289 properties and 133 property owners. The Property and Business Improvement District boundary is illustrated by the map on pages 7. Please see pages 11 through 12 for the specific assessment formula based on lot square footage in Downtown Burbank. A larger map is available on request by calling (916) 325-0604 or 1-800-999-7781.

A. Place Map here.

Service Plan and Budget

B. History of Establishing the Service Plan

Property and business owners in Downtown Burbank have been concerned about the need for coordinated supplemental services in the area for several years. City services and efforts in the area have been welcomed, but limited resources have not allowed for a more comprehensive approach to managing the commercial area.

In 1994, Governor Wilson signed AB 3754 (Caldera) establishing the Property and Business Improvement District Law of 1994. This statewide enabling law created a mechanism for property owners to join forces and improve their commercial Districts. The owners in Downtown Burbank have seized the opportunity to utilize this new tool to provide efficient supplemental services in a cost-effective manner. The following service plan details the nature and extent of the services proposed and provides an itemized budget.

C. Programs and Services to be Provided

The Downtown Burbank Service Plan provides for business advocacy services above and beyond those currently provided by the City of Burbank. Existing City services will remain intact pursuant to a �base levels of service� agreement between the City of Burbank and the property owners within the District as detailed in Section VIII on page 14.

Property and Business Improvement District service levels will be based on the amount paid into the District. Program descriptions and budgets of proposed Property and Business Improvement District image enhancement, business advocacy, and administrative services are provided in the following pages.

The first step in preparing the service plan was to identify the existing �baseline� level of services provided by the City of Burbank. In order to identify the aspects of the District that needed additional services, several property owner focus group meetings were conducted. In addition, numerous meetings were held with City of Burbank staff, property owners, and business owners. Based on the information and opinions collected during this process, service priorities were identified. The information from each step of this process was integrated and this service plan was developed.

The following are some key aspects of the service plan budget:

1. Capital Improvements

Capital Improvements includes Smart Parking, Wayfinding, Street Paseo Upgrades, and Holiday D�cor. Smart parking will direct shoppers to available lots and spaces, making shopping in downtown Burbank easier. Signage will keep shoppers oriented and direct the flow of both vehicular and foot traffic. The costs for these programs have been allocated over the five year life of the proposed District. Smart parking has been allocated $60,000 per year for five years. Likewise, wayfinding has been allocated $60,000 per year for five years.

The budget for the Capital Improvements program is $240,000 or 33% of the total District budget.

2. Maintenance/Security

The program will be developed to promote Downtown Burbank as a vibrant commercial center. Street cleaning, litter removal, and maintenance will keep the area clean. An ambassador program may be initiated by the Board of Directors. Landscaping and street banners will beautify and make the area look festive.

The budget for a Maintenance/Security program is $110,000 or 15% of the budget.

3. Promotion, Advertising, and Events

Special events in Downtown Burbank 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.

The budget for Promotion, Advertising, and Events is $250,000 or 34% of the budget.

4. Advocacy and Administration

A Downtown Burbank 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 budget for Advocacy and Administration is $95,000 or 13% of the budget.

5. Contingency Reserve

The 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.

The budget for the contingency reserve is $35,000 or 5% of the budget.

D. Operations Budget

2004 Operating Budget Summary

The summary of the year 2004 operating budget for the Downtown Burbank Property and Business Improvement District is provided on the following pages. The total improvement and activity plan budget for 2004 is projected at $730,000 and shall not exceed $751,900 in year two, $774,457 in year three, $797,691 in year four, and $821,622 in year five. Property owners will contribute the entire amount through annual lot square footage assessments and linear frontage assessments. The draft Budget for the Service Plan is as follows:

Downtown Burbank PBID

DRAFT Annual Budget, Year One

*Services Provided*	*Descriptions*		*Total*
Capital Improvements (5 Year Payment)			$240,000
	Smart Parking (PBID to pay $60k per yr. for 5 yrs., City to pay $300,000) Wayfinding (PBID to Pay $60k per year for 5 years, City to pay $100,000) Street Paseo Upgrades Holiday D�cor

Maintenance/Security		$110,000


Promotions, Advertising, Events, Banners		$250,000



Advocacy and Administration Contingency Reserve (For nonpayment�s, errors in data, and other contingencies)		$95,000 $35,000
Total		$730,000

VI. Engineer�s Report

A. Assessment Methodology

1. Base Formula

Property owners, merchants, and other Downtown Burbank stakeholders have emphasized that an assessment formula for the proposed Property and Business Improvement District be fair, balanced, and commensurate with benefits received.

Each property owner will pay based on benefits received. The variables used for the annual assessment formula are based on gross lot square footage. Lot square footage is relevant to the highest and best use of a property, and will reflect the long-term value implications of the Property and Business Improvement District.

Annual assessment on property throughout the proposed district is $0.16 per square foot of land per year, and $2.00 per linear frontage foot along San Fernando Boulevard, between Magnolia and Verdugo. The maximum increase of the assessment shall be 3% per year. Because the programs in the proposed District have been designed to provide benefits to commercial properties, and do not provide benefit to residential properties, residential properties shall not be assessed. It has been determined that industrial properties will benefit from only half the services offered, and therefore will be assessed at 50% of the assessment rate.

For example, a parcel with an area of 30,000 square feet and no front footage along San Fernando Blvd. would pay $4,800 per year. 30,000 sq. ft. x $0.16 = $4,800. If you would like more information about property assessments, please call Downtown Resources at (916) 325-0604.

2. Determination of Special Benefit

New physical improvements, marketing, additional security, and promotion services are anticipated throughout the Property and Business Improvement District. The special benefit to properties from the proposed District exceeds the total amount of the proposed assessment. The evidence in support of this proposition is that prior to creation, owners paying a majority of the proposed assessment signed petitions in support of the District. From a market perspective, owners of commercial property do not support an additional investment unless they view the return, or benefit, as one that exceeds the investment. This return to the owner, or special benefit, therefore is greater, at least on its face, than the proposed assessment. This analysis, based on the owners� perspective, is at least one indicator that the special benefit exceeds the assessment. Therefore, to the extent that there may be any general benefit from these activities, there need not be any other revenue source to pay for these benefits.

Assessment law provides that the expenses of the District shall be apportioned in proportion to the benefit received by each property. In addition, Proposition 218 requires that a parcel�s assessment may not exceed the reasonable cost of the proportional special benefit conferred on that parcel. The Proposition provides that only special benefits are assessable, and that the City must separate the general benefits from the special benefits conferred on a parcel. A special benefit is a particular and distinct benefit over and above general benefits conferred on the public at large, including real property within the District. The general enhancement of property value does not constitute a special benefit.

Each and every parcel within the District, except for exempt parcels (discussed below), receives a particular and distinct benefit from the proposed improvements and activities, over and above general benefits conferred by the improvements and activities of the District. The proposed physical improvement, maintenance, and marketing programs will improve economic development within the District, thereby benefiting all businesses within the District. These programs contribute to a specific enhancement of the property values of each of the parcels within the District.

The following chart provides the assessments within the District.

Downtown Burbank Property and Business Improvement District

Proposed Annual Assessments

Rate per Lot Square Foot per Year

Rate per Linear San Fernando Frontage Foot per Year

$0.16

$2.00

3. Government-Owned Property

Under �The Right to Vote on Taxes Act� (also known as Proposition 218) all public properties are required to pay assessments unless they can demonstrate by clear and convincing evidence that their property does not receive benefit. It has been proposed that the City of Burbank and other public properties pay their �fair share� of all assessments.

4. Residential and Industrial Properties

The primary purpose of the Property and Business Improvement District is to benefit commercial properties. Any incidental benefit to residential properties in Downtown Burbank does not warrant assessing those properties. Therefore, residential properties within the boundaries of the District shall not be assessed. It has been determined that industrial properties will benefit from approximately half the services offered, and therefore will be assessed at 50% of the assessment rate.

5. Assessment Notice

An Assessment Notice will be sent to owners of each property in the Property and Business Improvement District. The Assessment Notice provides an estimated assessment based upon the lot square footage and lot front footage along San Fernando Blvd. of each individual property. The final individual assessment for any particular property may change, up or down, if the lot or building areas differ from those found on the Assessment Notice. A list of properties to be included in the Property and Business Improvement District is provided within Appendix 2.

6. Tax-Exempt Properties

As stated above, the primary purpose of the Property and Business Improvement District is to benefit commercial properties. Tax exempt properties, e.g. religious institutions, do not derive sufficient benefit from the proposed improvements to be assessed. The incidental benefit to these properties in Downtown Burbank does not warrant assessing them. Therefore, tax exempt properties within the boundaries of the District shall not be assessed.

B. Time and Manner for Collecting Assessments

As provided by State Law, the Downtown Burbank assessment will appear as a separate line item on annual property tax bills prepared by the County of Los Angeles. Property tax bills are generally distributed in the fall, and payment is expected by lump sum or installment. The County of Los Angeles shall distribute funds collected to the City of Burbank and then to the Property and Business Improvement District pursuant to the authorization of this Plan. Existing laws for enforcement and appeal of property taxes apply to the Property and Business Improvement District assessments.

Review of this Downtown Burbank Property and Business Improvement District Plan and preparation of the Engineers Report was completed by:

Orin N. Bennett

State of California

Registered Civil Engineer No. 25169

VII. Continuation of City Services

A. City Base Levels of Service Policy

Throughout the process of establishing the Downtown Burbank Property and Business Improvement District, stakeholders and business and property owners have voiced concerns that the City of Burbank maintain 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.

B. City Council Resolution

If the property and business owners in Downtown Burbank request the Burbank City Council to adopt a Resolution committing the City to establish and maintain base levels of service within the Property and Business Improvement District, the Council may consider such an adoption. The policy states that �basic service levels� provided to the area must be paid for by the general City revenues, and not subsidized by revenue which the Property and Business Improvement District generates for enhanced and supplemented levels of service.

The policy allows for adjustments in the �basic service levels� commensurate with changes in the City�s overall financial condition. City wide service reductions can trigger a proportionate reduction in base levels of service within a Property and Business Improvement District.

A draft City of Burbank Resolution establishing this policy and an estimate of current services is provided in Appendix 3.

VIII. Property and Business Improvement District Governance

A. Downtown Burbank Property and Business Improvement District

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.

This plan proposes that the Board of Directors of the non-profit corporation be comprised of a large majority of property owners paying the proposed assessment. In addition, the Board of Directors must represent a variety of interests within the District and respond to the needs of property and business owners from various �commercial neighborhoods� within the District. For example, some stakeholders within the Village expressed a desire to have the Village represented in the decision making authority. The proposed Board includes this representation.

In order to achieve this diverse representation, the initial Board of Directors shall be comprised of the following board seats:

2 � Representing Property owners from the Village area

2 � Representing the City and Redevelopment Agency

2 � Representing the Mall area, including a Mall representative and an IKEA representative

1 � Representing at Large, Large Property Owners

1 � Representing at Large, Small Property Owners

1 � At Large, Small Business owner

1 � Non-voting Resident

1 � Non-voting, non-profit Entity

The Board of Directors shall act in the best interests of all of the properties and businesses within the proposed District. The diverse representation described above ensures that the interests of all of the properties and business in the District shall be fairly represented. The Council or Board of Directors reserves the right to amend or modify the composition of the Board by a separate resolution without amending the Management District Plan.

Appendix 1 � The Property and Business Improvement District Law of 1994

STREETS AND HIGHWAYS CODE

SECTION 36600 et seq.

As of January 1, 2003

DECLARATIONS

36600. This part shall be known and may be cited as the "Property and Business Improvement District Law of 1994."

36601. The Legislature finds and declares all of the following:

(a) Businesses located and operating within the business districts of this state's communities are economically disadvantaged, are underutilized, and are unable to attract customers due to inadequate facilities, services, and activities in the business districts.

(b) It is in the public interest to promote the economic revitalization and physical maintenance of the business districts of its cities in order to create jobs, attract new businesses, and prevent the erosion of the business districts.

(c) It is of particular local benefit to allow cities to fund property related improvements, maintenance, and activities through the levy of assessments upon the real property that benefits from those improvements.

(d) Assessments levied for the purpose of providing improvements and promoting activities that benefit real property are not taxes for the general benefit of a city, but are assessments for the improvements and activities which confer special benefits upon the real property for which the improvement and activities are provided.

(d)

36602. The purpose of this part is to supplement previously enacted provisions of law that authorize cities to levy assessments within a business improvement area. This part does not affect or limit any other provisions of law authorizing or providing for the furnishing of improvements or activities or the raising of revenue for these purposes.

36603. Nothing in this part is intended to preempt the authority of a charter city to adopt ordinances providing for a different method of levying assessments for similar or additional purposes from those set forth in this part. A property and business improvement district created pursuant to this part is expressly exempt from the provisions of the Special Assessment Investigation, Limitation and Majority Protest Act of 1931 (Division 4 (commencing with Section 2800)).

36604. This part is intended to be construed liberally and, if any provision is held invalid, the remaining provisions shall remain in full force and effect. Assessments levied under this part are not special taxes.

DEFINITIONS

36605. "Advisory board" means the advisory board or commission appointed by the city council pursuant to Section 36631.

36606. "Assessment" means a levy for the purpose of acquiring, constructing, installing, or maintaining improvements and promoting activities which will benefit the properties located within a property and business improvement district.

36607. "Business" means all types of businesses and includes financial institutions and professions.

36608. "City" means a city, county, city and county, or an agency or entity created pursuant to Article 1 (commencing with Section 6500) of Chapter 5 of Division 7 of Title 1 of the Government Code, the public member agencies of which includes only cities, counties, or a city and county.

36609. "City council" means the city council of a city or the board of supervisors of a county, or the agency, commission, or board created pursuant to a joint powers agreement and which is a city within the meaning of this part.

36610. "Improvement" means the acquisition, construction, installation, or maintenance of any tangible property with an estimated useful life of five years or more including, but not limited to, the following:

(a) Parking facilities.

(b) Benches, booths, kiosks, display cases, pedestrian shelters and signs.

(d) Lighting and heating facilities.

(e) Decorations.

(f) Parks.

(g) Fountains.

(h) Planting areas.

(i) Closing, opening, widening, or narrowing of existing streets.

(j) Facilities or equipment, or both, to enhance security of persons and property within the area.

(k) Ramps, sidewalks, plazas, and pedestrian malls.

(l) Rehabilitation or removal of existing structures.

(l)

36611. "Property and business improvement district," or "district," means a property and business improvement district established pursuant to this part.

36612. "Property" means real property situated within a district.

36613. "Activities" means, but is not limited to, all of the following:

(a) Promotion of public events which benefit businesses or real property in the district.

(b) Furnishing of music in any public place within the district.

(d) Marketing and economic development, including retail retention and recruitment.

(e) Providing security, sanitation, graffiti removal, street and sidewalk cleaning, and other municipal services supplemental to those normally provided by the municipality.

(f) Activities which benefit businesses and real property located in the district.

36614. "Property and Business Improvement District plan" or "plan" means a proposal as defined in Section 36622.

36614.5 �Owners� association� means a private nonprofit entity that is under contract with a city to administer or implement activities and improvements specified in the Property and Business Improvement District plan. An owners� association may be an existing nonprofit entity or a newly formed nonprofit entity. An owners� association is a private entity and may not be consider a public entity for any purpose, nor may its board members or staff be considered to be public officials for any purpose. Notwithstanding this section, an owners� association shall comply with the Ralph M. Brown Act (Chapter 9 (commencing with Section 54950) of Part 1 of Division 2 of Title 5 of the Government Code), at all times when matters within the subject matter of the district are heard, discussed, or deliberated, and with the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1 of the Government Code), for all documents relating to activities of the district.

36615. "Property owner" or "owner" means any person shown as the owner of land on the last equalized assessment roll or otherwise known to be the owner of land by the city council. The city council has no obligation to obtain other information as to the ownership of land, and its determination of ownership shall be final and conclusive for the purposes of this part. Wherever this subdivision requires the signature of the property owner, the signature of the authorized agent of the property owner shall be sufficient.

36616. "Tenant" means an occupant pursuant to a lease of commercial space or a dwelling unit, other than an owner.

PRIOR LAW

36617. This part provides an alternative method of financing certain improvements and activities. The provisions of this part shall not affect or limit any other provisions of law authorizing or providing for the furnishing of improvements or activities or the raising of revenue for these purposes. Every improvement area established pursuant to the Parking and Business Improvement Area Law of 1989 (Part 6 (commencing with Section 36500) of this division) is valid and effective and is unaffected by this part.

ESTABLISHMENT

36620. A property and business improvement district may be established as provided in this chapter.

36620.5. A county may not form a district within the territorial jurisdiction of a city without the consent of the city council of that city. A city may not form a district within the unincorporated territory of a county without the consent of the board of supervisors of that county. A city may not form a district within the territorial jurisdiction of another city without the consent of the city council of the other city.

36621. (a) Upon the submission of a written petition, signed by the property owners in the proposed district who will pay more than 50 percent of the assessments proposed to be levied, the city council may initiate proceedings to form a district by the adoption of a resolution expressing its intention to form a district. The amount of assessment attributable to property owned by the same property owner that is in excess of 40 percent of the amount of all assessments proposed to be levied, shall not be included in determining whether the petition is signed by property owners who will pay more than 50 percent of the total amount of assessments proposed to be levied.

(b) The petition of property owners required under subdivision (a) shall include a summary of the Property and Business Improvement District plan. That summary shall include all of the following:

(1) A map showing the boundaries of the district.

(2) Information specifying where the complete Property and Business Improvement District plan can be obtained.

(3) Information specifying that the complete Property and Business Improvement District plan shall be furnished upon request.

(1) A brief description of the proposed activities and improvements, the amount of the proposed assessment, and a description of the exterior boundaries of the proposed district. The descriptions do not need to be detailed and shall be sufficient if they enable an owner to generally identify the nature and extent of the improvements and activities and the location and extent of the proposed district.

(2) A time and place for a public hearing on the establishment of the property and business improvement district and the levy of assessments, which shall not be held more than 90 days after the adoption of the resolution of intention.

(2)

36622. The Property and Business Improvement District plan shall contain all of the following:

(a) A map of the district in sufficient detail to locate each parcel of property within the district.

(b) The name of the proposed district.

(c) A description of the boundaries of the district, including the boundaries of any benefit zones, proposed for establishment or extension in a manner sufficient to identify the lands included. Under no circumstances shall the boundaries of a proposed district overlap with the boundaries of another existing district created pursuant to this part. Nothing in this part prohibits the boundaries of a district created pursuant to this part to overlap with other assessment districts established pursuant to other provisions of law including, but not limited to, the Parking and Business Improvement Area Law of 1989.

(d) The improvements and activities proposed for each year of operation of the district and the maximum cost thereof.

(e) The total annual amount proposed to be expended for improvements, maintenance and operations in each year of operation of the district.

(f) The proposed source or sources of financing including the proposed method and basis of levying the assessment in sufficient detail to allow each property owner to calculate the amount of the assessment to be levied against his of her property.

(g) The time and manner of collecting the assessments.

(h) The specific number of years in which assessments will be levied. In a new district, the maximum number of years shall be five. Upon renewal, a district shall have a term not to exceed 10 years. The Property and Business Improvement District plan may set forth specific increases in assessments for each year of operation of the district.

(i) The proposed time for implementation and completion of the Property and Business Improvement District plan.

(j) Any proposed rules and regulations to be applicable to the district.

(k) A list of the properties to be assessed, including the assessor's parcel numbers, and a statement of the method or methods by which the expenses of a district will be imposed upon benefited real property, in proportion to the benefit received by the property, to defray the cost thereof, including operation and maintenance. The plan may provide that all or any class or category of real property which is exempt by law from real property taxation may nevertheless be included within the boundaries of the district but shall not be subject to the assessment.

(l) Any other item or matter required to be incorporated therein by the city council.

(l)

36623. If a city council proposes to levy a new or increased benefit assessment, the notice and protest and hearing procedure shall comply with Section 53753 of the Government Code.

36624. At the conclusion of the public hearing to establish the district, the city council may adopt, revise, change, reduce, or modify the proposed assessment or the type or types of improvements and activities to be funded with the revenues from the assessments. Proposed assessments may only be revised by reducing any or all of them. At the public hearing, the city council may only make changes in, to, or from the boundaries of the proposed property and business improvement district that will exclude territory that will not benefit from the proposed improvements or activities. Any modifications, revisions, reductions, or changes to the proposed assessment district shall be reflected in the notice and map recorded pursuant to Section 36627.

36625. (a) If the city council, following the public hearing, decides to establish the proposed property and business improvement district, and the city council has made changes pursuant to Section 36624, and the changes substantially change the proposed assessment, the city council shall adopt a resolution of preliminary adoption that shall contain all of the following:

(2) The number, date of adoption, and title of the resolution of intention.

(3) The time and place where the public hearing was held concerning the establishment of the district.

(4) A determination regarding any protests received.

(5) A statement that the properties in the district established by the resolution shall be subject to any amendments to this part.

(6) A statement that the improvements and activities to be provided in the district will be funded by the levy of the assessments. The revenue from the levy of assessments within a district shall not be used to provide improvements or activities outside the district or for any purpose other than the purposes specified in the resolution of intention, as modified by the city council at the hearing concerning establishment of the district.

(7) A finding that the property within the business and improvement area will be benefited by the improvements and activities funded by the assessments proposed to be levied.

(b) Not earlier than 30 days after the resolution of preliminary adoption, if the city council decides to establish the proposed property and business improvement district, the council shall consider all written protests. If written protests are received from property owners in the proposed district who pay 50 percent or more of the assessments proposed to be levied and protests are not withdrawn so as to reduce the protests to less than that 50 percent, the proceedings to create the proposed district shall be terminated.

(c) If not required to terminate the proceedings in compliance with subdivision (b), the city council shall adopt a resolution consistent with the resolution of preliminary adoption. The adoption of the resolution and recordation of the notice and map pursuant to Section 36627 shall constitute the levy of an assessment in each of the fiscal years referred to in the Property and Business Improvement District plan. The resolution shall contain all of the following:

(2) The number, date of adoption, and title of the resolution of intention and resolution of preliminary adoption.

(3) The time and place where the public hearing was held concerning the establishment of the district.

(4) A determination regarding any protests received.

(5) A statement that a property and business improvement district has been established.

(6) A statement that the properties in the district established by the resolution shall be subject to any amendments to this part.

(7) A statement that the improvements and activities to be provided in the district will be funded by the levy of the assessments. The revenue from the levy of assessments within a district shall not be used to provide improvements or activities outside the district or for any purpose other than the purposes specified in the resolution of intention, as modified by the city council at the hearing concerning establishment of the district.

(8) A finding that the property within the property and business improvement district will be benefited by the improvements and activities funded by the assessments proposed to be levied.

(8)

36626. If the city council, following the public hearing, desires to establish the proposed property and business improvement district, and the city council has not made changes pursuant to Section 36624, or has made changes that do not substantially change the proposed assessment, the city council shall adopt a resolution establishing the district. The resolution shall contain all of the information specified in paragraphs (1) to (8), inclusive, of subdivision (b) of Section 36625, but need not contain information about the preliminary resolution if none has been adopted.

36627. Following adoption of the resolution establishing the district pursuant to Section 36625 or 36626, the clerk of the city shall record a notice and an assessment diagram pursuant to Section 3114. No other provision of Division 4.5 (commencing with Section 3100) applies to an assessment district created pursuant to this part.

36628. The city council may establish one or more separate benefit zones within the district based upon the degree of benefit derived from the improvements or activities to be provided within the benefit zone and may impose a different assessment within each benefit zone.

36629. All provisions of this part applicable to the establishment, modification, or disestablishment of a property and business improvement district apply to the establishment, modification, or disestablishment of benefit zones. The city council shall, to establish, modify, or disestablish a benefit zone, follow the procedure to establish, modify, or disestablish a parking and business improvement area.

36630. If a property and business improvement district expires due to the time limit set pursuant to subdivision (h) of Section 36622, a new Property and Business Improvement District plan may be created and a new district established pursuant to this part.

ASSESSMENTS

36631. The collection of assessments levies pursuant to this part shall be made at the time and in the manner set forth by the city council in the resolution establishing the Property and Business Improvement District plan described in Section 36622. The assessments may be colleted at the same time and in the same manner as for the ad valorem property tax, and may provide for the same lien priority and penalties for delinquent payment. All delinquent payments for assessments levied pursuant to this part shall be charged interest and penalties.

36632. (a) The assessments levied on real property pursuant to this part shall be levied on the basis of the estimated benefit to the real property within the property and business improvement district. The city council may classify properties for purposes of determining the benefit to property of the improvements and activities provided pursuant to this part.

(b) Properties zoned exclusively for residential use, or that are zoned for agricultural use, are conclusively presumed not to benefit from the improvements and service funded through these assessments, and shall not be subject to any assessment pursuant to this part.

36633. The validity of an assessment levied under this part shall not be contested in any action or proceeding unless the action or proceeding is commenced within 30 days after the resolution levying the assessment is adopted pursuant to Section 36626. Any appeal from a final judgment in an action or proceeding shall be perfected within 30 days after the entry of judgment.

36634. The city council may execute baseline service contracts that would establish levels of city services that would continue after a property and business improvement district has been formed.

36635. The owners� association may, at any time, request that the city council may modify the Property and Business Improvement District plan. Any modification of the Property and Business Improvement District plan shall be made pursuant to this chapter.

36636. (a) Upon the written request of the owners� association, the city council may modify the Property and Business Improvement District plan after conducting one public hearing on the proposed modification. The city council may modify the improvements and activities to be funded with the revenue derived from the levy of assessments by adopting by adopting a resolution determining to make the modifications after holding a public hearing on the proposed modifications. Notice of the public hearing and the proposed modifications shall be published as provided in Section 36623. If the modification includes the levy of a new or increased assessment, the city council shall comply with Section 53753 of the Government Code.

(b) The city council shall adopt a resolution of intention which states the proposed modifications prior to the public hearing required by this section. The public hearing shall be held not more than 90 days after the adoption of the resolution of intention.

36637. Any subsequent modifications of the resolution shall be reflected in subsequent notices and maps recorded pursuant to Division 4.5 (commencing with Section 3100).

governance

36650 (a) The owners� association shall cause to be prepared a report for each fiscal year, except for the first year, for which assessments are to be levied and collected to pay for the costs of the improvements and activities described in the report. The owners� association�s first report shall be due after the first year of operation of the district. The report may propose changes, including, but not limited to, the boundaries of the property and business improvement district, or any benefit zones within the district, the basis and method of levying the assessments, and any changes in the classification of property, if a classification is used.

(b) The report shall be filed with the clerk and shall refer to the property and business improvement district by name, specify the fiscal year to which the report applies, and, with respect to that fiscal year, shall contain all of the following information.

(1) Any proposed changes in the boundaries of the property and business improvement district or in any benefit zones within the district.

(2) The improvements and activities to be provided for that fiscal year.

(3) An estimate of the cost of providing the improvements and the activities for that fiscal year.

(4) The method and basis for levying the assessment in sufficient detail to allow each real property owner to estimate the amount of the assessment to be levied against his or her property for that fiscal year.

(5) The amount of any surplus or deficit revenues to be carried over from a previous fiscal year.

(6) The amount of any contributions to be made from sources other than assessments levied pursuant to this part,

(c) The city council may approve the report as filed by the owners� association or may modify any particular contained in the report and approve it as modified. Any modification shall be made pursuant to Sections 36635 and 36636.

The city Council shall not approve a change in the basis and method of levying assessments that would impair an authorized or executed contract to be paid from the revenues derived from the levy of assessments.

36651. The Property and Business Improvement District plan may, but is not required to, state that an owners� association will prove the improvements or activities described in the Property and Business Improvement District plan. If the Property and Business Improvement District plan designates an owners� association, the city shall contract with the designated nonprofit corporation to provide services.

RENEWAL

36660 (a) Any district previously established whose term has expired, may be renewed by following the procedures for establishment as provided in this chapter.

(b) Upon renewal, any remaining revenues derived from the levy of assessments, or any revenues derived from the sale of assets acquired with the revenues, shall be transferred to the renewed district. If the renewed district includes additional parcels not included in the prior district, the remaining revenues shall be spent to benefit only the parcels in the prior district. If the renewed district does not include parcels included in the prior district, the remaining revenues attributable to these parcels shall be refunded to the owners of these parcels.

(c) Upon renewal, a district shall have a term not to exceed 10 years. There is no requirement that the boundaries, assessments, improvements, or activities of a renewed district be the same as the original or prior district.

DISESTABLISHMENT

36670 (a) Any district previously established or extended pursuant to the provisions of this part, where there is no independent indebtedness, outstanding and unpaid, incurred to accomplish any of the purposes of the district, may be disestablished by resolution by the city council in either of the following circumstances:

(1) If the city council finds there has been misappropriation of funds, malfeasance, or a violation of law in connection with the management of the district, it shall notice a hearing on disestablishment.

(2) During the operation of the district, there shall be a 30-day period each year in which assessees may request disestablishment of the district. The first such period shall begin one year after the date of establishment of the district and shall continue for 30 days. The next such 30-day period shall begin two years after the date of the establishment of the district. Each successive year of operation of the district shall have such a 30-day period. Upon the written petition of the owners of real property in the area who pay 50 percent or more of the assessments levied, the city council shall pass a resolution of intention to disestablish the district. The city council shall notice a hearing on disestablishment.

(b) The city council shall adopt a resolution of intention to disestablish the district prior to the public hearing required by this section. The resolution shall state the reason for the disestablishment, shall state the time and place of the public hearing, and shall contain a proposal to dispose of any assets acquired with the revenues of the assessments levied within the property and business improvement district. The notice of the hearing on disestablishment required by this section shall be given by mail to the property owner of each parcel in the district. The city shall conduct the public hearing not less than 30 days after mailing the notice to the property owners. The public hearing shall be held not more than 60 days after the adoption of the resolution of intention.

36671 (a) Upon the disestablishment of a district, any remaining revenues, after all outstanding debts are paid, derived from the levy of assessments, or derived from the sale of assets acquired with the revenues, shall be refunded to the owners of the property then located and operating within the district in which assessments were levied by applying the same method and basis that was used to calculate the assessments levied in the fiscal year in which the district is disestablished. All outstanding assessment revenue collected after disestablishment shall be spent on improvements and activities specified in the Property and Business Improvement District plan.

(b) If the disestablishment occurs before an assessment is levied for the fiscal year, the method and basis that was used to calculate the assessments levied in the immediate prior fiscal year shall be used to calculate the amount of any refund.

Appendix 2 � Properties within the proposed Downtown Burbank Property and Business Improvement District

Appendix 3 � Draft Base Level of Services Resolution for the City of Burbank

The following is a draft resolution which has not been adopted and is subject to further negotiation. This resolution is provided as a possible sample only.

Whereas, business area often face a need for collective efforts to promote their businesses and to improve the overall business climate and health of their Districts, and

Whereas, businesses often seek enhanced city services and infrastructure improvements.

1. Revenue garnered from a Business Improvement District (BID) or other similar assessment District should be used to improve the overall business climate of the area through various promotional programs and service enhancements. To that end, base service level measures should be established and agreed to at the inception of the financing of the District.

2. In the event of a significant downturn in citywide revenues, the Council may be forced to reduce base levels of municipal services citywide unless a substitute source of citywide revenues is available.

Tuesday, July 22, 2003

DOWNTOWN BURBANK

PROPERTY AND BUSINESS IMPROVEMENT DISTRICT

Submitted to the

City of Burbank