SUBJECT: PRELIMINARY APPROVAL OF 2002-2003 BUDGET REPORT, ADOPTION OF RESOLUTION OF INTENTION TO LEVY 2002-2003 ASSESSMENTS IN THE DOWNTOWN BUSINESS IMPROVEMENT DISTRICT, AND SETTING OF A DATE AND TIME FOR PUBLIC HEARING
Preliminary approval of the report as filed by the Downtown Business Improvement District Advisory Board or as modified by Council, and adoption of a resolution of intention to levy the annual assessment for 2002-03, and set June 11, 2002 at 1:30 p.m. as the date and time for the public hearing on the levy of the proposed assessments.
The Downtown Business Improvement District (“the BID”) was established by the Council in 1988 pursuant to the California Parking and Business Improvement Area Law (“BID Law”) to promote the economic revitalization and physical maintenance of the Downtown business district. In1989, the Council appointed the Downtown Association as the Advisory Board (“Advisory Board”) for the BID, to advise the Council on the levy of assessments in the BID and the expenditure of revenues derived from the assessments.
Pursuant to BID Law, the Advisory Board must come before the Council on an annual basis to present a report to the Council that proposes a budget for the upcoming fiscal year for the BID. The Council must then: 1) review the report and preliminarily approve it as proposed or as changed by the Council; 2) adopt a resolution of intention to levy the assessments for the upcoming fiscal year; and 3) set a date and time for the public hearing on the levy of assessments in the BID. Absent a majority protest at the public hearing, at the conclusion of the public hearing the Council may adopt a resolution approving the budget for Fiscal Year 2002-03 as filed or as modified by the Council. The adoption of the resolution constitutes the levying of the BID assessments for Fiscal Year 2002-03.
The Advisory Board has prepared a budget report (the “report”) attached as Exhibit 1, for the Council’s consideration as the budget for the Downtown BID for Fiscal Year 2002-03. As required by BID Law, the report has been filed with the City Clerk and contains, among other things, a list of the improvements, activities, and associated costs proposed in the BID in Fiscal Year 2002-03. The Advisory Board has recommended no change in the BID boundaries or the method and basis for levying assessments. A map of the Downtown BID is attached hereto as Exhibit 2. The proposed assessments in the BID for Fiscal Year 2002-03 are the same as the assessments in Fiscal Year 2001-02.
The budget for Fiscal Year 2002-2003 was reviewed and approved by the San José Downtown Association’s Finance Committee on April 24, 2002.
This memorandum has been coordinated with the Redevelopment Agency General Counsel’s Office, Finance-Treasury, San José Downtown Association and the City Clerk’s Office.
Adoption of the proposed BID budget does not impact City revenue. BID assessments are restricted for use exclusively by the BID. It is anticipated that a healthy Business Improvement District will encourage growth of the retail community and consequently result in additional sales tax revenue for the City.
Director of Economic Development