San Leandro Municipal Code Ch. 2-14 San Leandro Downtown Business Improvement District

(Legislative History: Ordinance No. 99-030, 10/18/99 (Sections 2-14-100—2-14-170))

The purpose and intent of this Chapter is to establish a method whereby funds are collected to operate a Business Improvement District.

In order to distinguish between district businesses, and for the purpose of calculating and applying the amount of assessments owed, the following definitions shall apply:

Retail Businesses:

All businesses not covered by other definitions set out in this section, at least 50% of whose gross income is derived from "retail sales" as that term is defined under the California Sales and Use Tax Law. The fact that a substantial part of its business consists of sales other than retail sales does not exclude said business from this classification so long as such other business component does not account for more than 50% of said business' gross income.

Restaurants:

Cafés, eating establishments, sandwich shops, dinner houses, restaurants and fast food services, and other similar businesses.

Lodging:

Inns, hotels, motels, RV parks, and other similar businesses.

Service:

General office, news and advertising media, printers, photographers, personal care facilities and outlets, entertainment uses, service stations, repairing and servicing businesses, renting and leasing businesses, utilities, vending machine businesses, household finance companies, and other similar businesses not otherwise included in subsection (a), (b), (c), (e), or (f) of this section.

Professional:

Attorneys; architects; accountants; engineers; surveyors; physicians, dentists, optometrists, chiropractors, and others in a medical/health service field; consultants; real estate brokers; financial advisors; laboratories (including dental and optical); hearing aid services; artists; and designers.

Financial:

Banks, savings and loans, credit unions, etc.

Calendar Year:

January 1 to and including December 31 of the same year.

Billing Period:

January 1 to and including December 31 of the same year.

A Business Improvement District is hereby established pursuant to the Parking and Business Improvement Area Law of 1989, Streets and Highways Code Section 36500 et seq. The boundaries of the district shall be as set forth on Exhibit A, attached to the ordinance codified in this Chapter and incorporated in this section by reference. This district shall be known as the "San Leandro Downtown Business Improvement District" ("district").

There shall be a Board of Directors ("Board") of the district to administer the affairs of the district. Said Board shall be constituted of businesses within the district. Within the Board there shall be a President, Vice-President, Secretary, and Treasurer elected by the membership, and such other officers as deemed necessary by the Board. Such other officers shall be appointed by the Board at its discretion. All voting within the district regarding election of Board Members and any actions regarding the normal and routine conducting of district business shall be based on one vote per assessed dollar, and said business must be current in payment of their district assessment(s) to participate in such votes.

All businesses, trades, and professions located within the district boundaries shown on Exhibit A shall, commencing January 1, 2000, pay an annual benefit assessment to the district in the following amounts:

Note: Retail and restaurant businesses will be assessed a benefit fee according to number of full-time employees (based on 2,000 annual hours) or the equivalent number of accumulated hours worked by all full- and part-time employees.

The types of improvements and activities proposed to be funded by the levy of assessments on businesses in the district are as follows:

(a) 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 improvements:

(1) Benches;

(2) Trash receptacles;

(3) Decorations;

(4) Facade improvements;

(5) Permanent landscaping.

(b) Activities including, but not limited to, the following:

(1) Promotion of public events which benefit businesses in the area and which take place on or in public places within the area;

(2) Furnishing of music in any public place in the area;

(3) Activities which benefit businesses located and operating in the area, including, but not limited to, commercial shopping and promotional programs.

No person or business shall be required to pay an assessment based on: (a) a residential use of the property within the district, or (b) a nonprofit organization as defined by Section 501 (C)(3) or (C)(6) of the Internal Revenue Service Code located within the district.

Any new business established within the district shall not be required to pay an assessment for the billing period during which said business is initiated, The business will have been considered initiated on the date of issuance of the business license. This waiver shall not apply to an existing business that has changed ownership or location within the district. City agrees to supply the district with timely information regarding new businesses initiated within the district.

The benefit assessment authorized by this Chapter for San Leandro businesses shall be billed and collected each billing year on March 1. City will bill and collect the assessments and forward all funds collected to the district within 30 days of said collections. The City may delegate the administrative functions of billing and collection by resolution.

Notwithstanding any other provision in this Chapter, businesses not paying the annual fee will not incur a liability for the benefit assessment and will therefore not be included in the district nor any district-sponsored improvements and activities provided in Section 2-14-125 of this Chapter.

Pursuant to the Act, it shall be necessary for the district Board of Directors to present an annual budget for City Council review and approval prior to the beginning of each fiscal year. The purpose of this process is to comply with the Act provisions regarding public notice and hearing prior to establishing the benefit assessments for the following fiscal year. City shall not adopt, modify, or otherwise amend any fiscal year budget of the district that is inconsistent in any way with said fiscal year's budget as agreed to and presented by the district Board except in the case of a written majority protest (regarding elimination or modification of any specific budget item) from business owners which will pay 50% or more of the assessments proposed to be levied as to any specific budget item pursuant to Streets and Highways Code Section 36525(b). In such case the written protest regarding any specific budget item shall be grounds to eliminate or modify said expenditure from the district's proposed budget pursuant to the written protest.

Decisions of the district Board regarding expenditure of all finds generated under this program shall be final.

City specifically finds and declares that the funds derived from the district shall not be used to offset or diminish current maintenance. capital improvement programs, including but not limited to, public property and sidewalk cleaning, street cleaning and maintenance, tree maintenance, restroom cleaning, and maintenance. The City declares its intent to provide at least the same level and standard of maintenance and repair of public property within the district providing City funds are available from year to year.

Proceeding to disestablish the district shall be initiated by the City Council following the presentation of a petition to the City Council signed by business owners paying 50% or more of the assessments levied in the district. Proceedings to disestablish the district shall follow the procedures set forth in Streets and Highways Code Section 36550. The City Council shall disestablish the district if, following the public hearing prescribed in Section 36550(b), written protests are not withdrawn as to reduce the protests below the 50% level. In the event of disestablishment of the district, remaining revenues of the district shall be refunded to paying business owners in a pro-rata manner calculated in the same manner as was used to establish the most recent assessments applied in the district.

Notwithstanding the provisions of Section 2-14-165, the Board shall conduct a neutral ballot of all businesses within the district no later than March 31, 2001, to determine whether or not the district shall be disestablished. The results of the ballot shall be presented to the City Council.