TO:
Honorable Mayor and Members of the City Council
THROUGH:
Talyn Mirzakhanian, City Manager
FROM:
Libby Bretthauer, Acting Finance Director
Emy-Rose Hanna, Budget and Financial Analyst
SUBJECT:Title
Consideration of a Resolution Declaring Intention to Provide for Annual Levy and Collection of Assessments for the Downtown Business Improvement District and Setting a Public Hearing for July 15, 2025 (No Budget Impact) (Acting Finance Director Bretthauer).
A) ADOPT RESOLUTION NO. 25-0080
B) SCHEDULE PUBLIC HEARING DATE TO CONSIDER ASSESSMENTS ON JULY 15, 2025
Body
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RECOMMENDATION:
The Downtown Business Improvement District Advisory Board and City Staff recommend that the City Council adopt Resolution No. 25-0080 announcing the City’s intention to set assessments for the Downtown Business Improvement District (BID) for fiscal year (FY) 2025-2026 and setting the public hearing for July 15, 2025.
FISCAL IMPLICATIONS:
There are no budgetary or other financial implications associated with the adoption of the Resolution of Intention.
BACKGROUND:
In 1998, the City Council, at the request of the downtown business owners, dissolved an existing parking district and created a new Business Improvement District (BID) for the downtown area. The new district was created under the Parking and Business Improvement Area Law of 1989, which provides flexibility with respect to the use of funds. The previously existing parking district restricted the use of the funds to the acquisition and construction of parking facilities.
The Parking and Business Improvement Area Law of 1989 is contained within sections 36500 - 36551 of the Streets and Highways Code (SHC), which requires that the district and associated assessments be renewed annually. Therefore, the City Council will hold a public hearing at its meeting on July 15, 2025 to consider the request from the Downtown Business Improvement District Advisory Board to renew the district for FY 2025-2026 and levy the associated assessment (80% surcharge on business license tax to a maximum of $600).
DISCUSSION:
As part of the annual process required for BIDs, the Downtown Manhattan Beach Business Improvement District Advisory Board met on May 12, 2025, to review the FY 2024-2025 year-end progress report and approved the FY 2025-2026 BID Activity Plan and Budget. Subsequently, the Chairperson of the BID Advisory Board (Mike Zislis) submitted the attached Letter requesting the City Council adopt the Resolution of Intention and provided the attached Fiscal Year 2025-2026 DMBBID Business Improvement and Activity Plan.
To renew the district and levy the annual assessments, the Parking and Business Improvement Area Law of 1989 requires a two-step process as follows:
1. The first (current) step is to announce the City’s intention to renew the BID assessment, outline the activities and services to be funded by the assessment (not-to-exceed $600 for any individual business in the BID), and to set the date for a formal public hearing on July 15, 2025. This first step will be accomplished through adoption of the attached Resolution No. 25-0080.
2. The second (next) step will be to conduct the public hearing on July 15, 2025, which will include the renewal of the BID, authorization to enter into an agreement with the Downtown Manhattan Beach Business and Professional Association, ratification of the District Advisory Board roster, and authorization to disburse assessments collected through June 30, 2025.
PUBLIC OUTREACH:
If adopted by the City Council, the Resolution of Intention will be circulated to all business owners within the BID as notification of the public hearing on July 15, 2025. In addition, a notice advertising the public hearing will be placed in The Beach Reporter. At the public hearing, all proponents and opponents of the annual assessment will have an opportunity to present information to the City Council.
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. 25-0080
2. BID Advisory Board Chairperson Letter from BID Advisory Board to City Council
3. Fiscal Year 2025-2026 DMBBID Business Improvement and Activity Plan