TO:
Honorable Mayor and Members of the City Council
THROUGH:
Talyn Mirzakhanian, City Manager
FROM:
Patricia Matson, Senior Management Analyst
SUBJECT:Title
Conduct a Public Hearing to Consider Adoption of a Resolution No. 25-0015 Approving the Annual Collection of Assessments for Fiscal Year 2025-2026 for the North Manhattan Beach Business Improvement District, Renewal of the District, and Approval of the Proposed 2025 Activity Plan and Budget (No Budget Impact) (City Manager Mirzakhanian).
(Estimated Time: 15 Mins.)
A) CONDUCT PUBLIC HEARING
B) ADOPT RESOLUTION NO. 25-0015
C) RENEW THE DISTRICT
D) APPROVE THE PROPOSED 2025 ACTIVITY PLAN AND BUDGET
Body
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RECOMMENDATION:
Staff recommends that the City Council:
a) Conduct the Public Hearing;
b) Adopt Resolution No. 25-0015, authorizing the collection of assessments to provide services to the North Manhattan Beach Business Improvement District (North MB BID);
c) Renew the District; and
d) Approve the Proposed 2025 Activity Plan and Budget.
FISCAL IMPLICATIONS:
The North Manhattan Beach Business Improvement District (NMB BID) is funded through an 80% surcharge to the business license tax paid by those businesses located within the district, not to exceed $500 annually. At the current rate, the assessment levied collects approximately $25,000 per year. In the prior year, assessments collected totaled approximately $25,250.
BACKGROUND:
In January 2004, the City Council dissolved the North End Business Improvement District, which was formed in 1969 under the State’s Parking and Business Improvement District Act of 1965. The BID was limited in scope and was mainly responsible for addressing parking acquisition and construction. Given that the opportunity for acquiring additional parking in the North End is limited, business district members wanted to use the funds for other types of activities, such as physical improvements, beautification, signage, marketing, and promotion. To accommodate this request, City Council dissolved the 1969 Business Improvement District and created the current Business Improvement District using the broader 1989 BID Act.
DISCUSSION:
Assessments
The NMB BID and its associated assessments must be renewed annually. In conformance with applicable law, the City Council adopted Resolution No. 25-0001 on January 21, 2025, declaring its intention to authorize the collection of assessments to provide services. Tonight’s public hearing, to allow testimony both in support of and against the proposed assessments, was established at the January 21, 2025, meeting and has been properly noticed in accordance with State law.
The Resolution of Intention was circulated to all current North Manhattan Beach business members and was published in The Beach Reporter. If adopted, Resolution No. 25-0015 will be effective immediately and will set the assessment at 80% surcharge on the business license tax not to exceed $500 annually for NMB BID member businesses. This assessment remains unchanged from last fiscal year and will be in effect for the next assessment cycle, which coincides with the FY 2025-2026 business license tax period (March 1, 2025 - Feb 28, 2026).
Advisory Board
The 1989 Business Improvement District Act requires that the City Council select a BID Advisory Board. Advisory Board duties include recommendations to the City Council on expenditure of revenues derived from the assessments, as well as the method and basis of levying the assessments.
BID members held a meeting on December 11, 2024, to elect up to five Advisory Board Members for a two-year term from January 1, 2025, through December 31, 2026. Following the election, the following Advisory Board was elected by the North MB BID membership. Titles and business representations are as follows:
Chair Steven Delk - OB’s Grill & Bar
Vice-chair Peter Kim - Sloopy’s Beach Cafe
Recording Secretary Mike Simms - Nick and Sons
James (i.e. Jim) Murphy - The Sea View Inn at the Beach
Lawrence Getzoff - Beach Pizza
Councilmember Charelian currently serves as the BID’s City Council representative with Councilmember Tarnay as the alternate.
Annual Budget and Activity Plan 2025
The Business Improvement District Advisory Board reviews and approves the operating plan for the District. The attached 2025 Annual Budget and Activity Plan contains information relative to projected revenues and expenses and outlines the services and programs to be funded by the Business Improvement District. This year, the operating plan identifies the following programs:
• Continue using the websites for North MB BID visitor outreach and marketing. Maintain and enhance the digital presence of the North Manhattan Beach district through public engagement (e.g. surveys, individual business outreach), website, social media, and e-notifications.
• Promote North Manhattan Beach businesses via enhanced marketing efforts.
• Trademark and begin to utilize approved North Manhattan Beach Logo.
• Establish a professional non-profit association similar to the Downtown Manhattan Beach Business Professional Association (DBPA) and recommend approval of a contract between the City, Advisory Board, and Association.
• Continue to develop North Manhattan Beach branding using the new approved logo throughout the district (Pole flags with approval and permits from the City, refurbish the North Manhattan Beach welcome monument on Rosecrans utilizing the new color scheme and logo).
• Solicit Bids for Public Art and work with the Cultural Arts Commission for installation and placement.
• Continue to develop event and partnership opportunities to draw more foot traffic and awareness to North Manhattan Beach.
• Continue to establish participation and support for the North MB BID amongst businesses.
• Continue to grow the annual North MB BID Holiday Stroll and establish additional collaborative events.
• Promote transportation alternatives that mitigate traffic and greater parking opportunities while increasing foot traffic to the NMB BID Businesses.
• Update the community on the status of the crosswalks and other street markings and street repairs north of Rosecrans after the construction is done in this area. Continue to work on the functionality of the lighting of the crosswalks south of Rosecrans.
• Continue the Highland Avenue improvement discussions with Community Development, Traffic Engineering and Public Works to find solutions to improve the safety of Highland Ave., especially north of Rosecrans where crosswalks, visual indicators or other measures may need to be taken to address excessive speed in the area.
• Continue discussions to find additional parking solutions, including contacting Chevron to discuss the parking lot adjacent to the Verandas Project.
• Continue collaborating with the Downtown Business District and the Manhattan Beach Chamber of Commerce to best serve NMB BID Businesses.
• Continue to explore opportunities for revenue generating activities within North Manhattan Beach.
• Ensure continuation of Executive Director Services.
• Continue efforts to enhance pedestrian-oriented improvements and beautification of North Manhattan Beach.
Please note, the attached resolution (25-0015) reflects that the Activity Plan will cover the period from January 1, 2025, to June 30, 2026. This was done to have the Activity Plan cover the fiscal year as required by State law. Prior Activity Plans provided for the calendar year instead of the fiscal year.
Nonprofit Association Formation
At the April 2, 2024, meeting, City Council approved a conceptual plan for transitioning ongoing management of the North Manhattan Beach Business Improvement District to a nonprofit association, and approved execution of a future agreement with the nonprofit association to provide services to the BID.
As of January 7, 2025, the North Manhattan Beach Business & Professional Association filed their Articles of Incorporation with the State, thereby establishing their nonprofit corporation. Staff is drafting the agreement that would transition the management of the NMB BID to the newly formed association and will return to City Council at a future date for approval.
CONCLUSION:
If there is not a majority protest from the assessment payers, staff recommends that the City Council:
a) Conduct the Public Hearing;
b) Adopt Resolution No. 25-0015, authorizing the collection of assessments to provide services to the North Manhattan Beach Business Improvement District;
c) Renew the District; and
d) Approve the Proposed 2025 Activity Plan and Budget.
PUBLIC OUTREACH:
In compliance with State law, copies of the Resolution of Intention adopted on January 21, 2025, were mailed to all current NMB BID members on January 24, 2025. A Public Notice was published in the January 30, 2025, Beach Reporter.
ENVIRONMENTAL REVIEW:
The City has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a “Project” as defined under Section 15378 of the State CEQA Guidelines; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines the activity is not subject to CEQA. Thus, no environmental review is necessary.
LEGAL REVIEW:
The City Attorney has reviewed this report and determined that no additional legal analysis is necessary.
ATTACHMENTS:
1. Resolution No. 25-0015
2. Proposed 2025 Annual Report, Budget, and Activity Plan
3. Resolution No. 25-0001 (Adopted January 21, 2025)