PANORAMA CITY PROPERTY BUSINESS IMPROVEMENT DISTRICT PLAN

Transcription

1 PANORAMA CITY PROPERTY BUSINESS IMPROVEMENT DISTRICT MANAGEMENT PLAN DISTRICT This document prepared October 2007 and revised pursuant to the regulations imposed by the State of California, Property Business Improvement District Law of 1994 and for the purpose of establishing a Management District in the Panorama City retail/commercial business district, located in the City of Los Angeles Prepared by Formation Committee And Tierra Concepts, Inc., BID Formation Consultant

2 MANAGEMENT DISTRICT PLAN Table of Contents I. Introduction to the 1. II. Overview of the Panorama City Business 2. Improvement District III. Map of BID Geographic Boundaries 4. IV. Proposed Management District Service Plan 6. (Multi-Year Budget: ) V. Program & Activity Budget 10. VI. Proposed Assessment Formula 12. VII. Publicly Owned Parcels 18. VIII. Benefit Assessment Zone Map 19. IX. PBID Implementation Timetable 20. X. PBID District Governance 20. XI. Assessment Formula by Address & APN 21. Appendix 1: Appendix 2: PBID Property Information & 2008 Assessments Proposition 218 Engineer's Report

3 I. INTRODUCTION TO THE MANAGEMENT DISTRICT PLAN The Property-based Business Improvement District proposed for the Panorama City retail and commercial corridor has been prepared pursuant to the regulations imposed by The Property and Business Improvement District Law of 1994 contained within the State of California Streets & Highways Code, Section et seq. This legislation provides authorization for the City of Los Angeles to form and legally establish property and business improvement districts (PBID). The following is the (PBID) Management District Plan prepared in conformance with California Law with respect to the formation and adoption of a business improvement district. While legislatively imposed requirements were followed in the preparation of this, it should be noted that it is also the result of input and program components requested by the property owners that will be assessed during the term of this PBID. DEFINITION OF A BUSINESS IMPROVEMENT DISTRICT The purpose of establishing a Business Improvement District (PBID) is to provide services that improve the image of the defined geographic boundaries of the proposed district in order to create a district identity and to increase safety in the district for pedestrians which will attract and retain commercial business. The property owners will vote on a special assessment, and if approved, each property owner will be assessed according to the special benefit received for the services and improvements such as daily maintenance, security, graffiti removal, etc. In order to equitably distribute the assessment based on the level of benefit received, the Panorama City PBID has been divided into three (3) distinct Benefit Zones. The assessment is collected annually on the County of Los Angeles property tax roles on behalf of the City of Los Angeles. The City may bill directly the first year. Legally, the fees collected through the PBID special assessment cannot be spent on services or improvements outside of the PBID boundaries. The City will create a trust fund for each PBID with the funds periodically released to support operations as per the Administration Contract. PANORAMA CITY BID OBJECTIVE The objective of the Panorama BID is to recreate the Panorama City Retail and Commercial Corridor into a pedestrian friendly area for patrons of the retail-oriented businesses operating within the district. Services administered in the PBID will focus on pedestrian-oriented themes Page 1

4 to promote the area and provide customer retention; including but not limited to: security, sidewalk and street cleaning, maintenance of pedestrian-related street furniture and signage, etc. II. OVERVIEW OF THE PANORAMA CITY PBID Pumose: The is newly formed and there has not been any form of Business Improvement District prior to this formation. The PBIDis to be formed to improve the image of the District and improve the commercial corridor through attraction and retention of business and pedestrian traffic within the PBIDboundaries based on the following: Improve the physical and aesthetic conditions (Not including major capital improvements) Enhanced District Beautification Create a Destination Identity for Panorama City Increase District Safety to encourage business growth Increase Pedestrian Traffic Create a structured organization to handle business community needs in order to attract and retain business while improvingthe commercial corridor Name: Location: The BID here proposed is located in the heart of the Panorama City community, which is in the Northeast San Fernando Valley. The specific boundaries are Parthenia Street to the north, including the commercially zoned properties along Van Nuys Boulevard to the north; the south block face of Roscoe Boulevard from Cedros Avenue to Van Nuys Boulevard, both sides of Van Nuys Boulevard south to Titus Street and east on the South side of Roscoe Boulevard to LennoxAvenue as the southern boundary; only the commercial properties west of Lennox and Tilden Avenues as the eastern boundary; and, the commercial properties on the east side of the street on Cedros Avenue as the western boundary. BID Boundary: The boundary for the was determined based on the distinct retail/ commercial character of the currently operating businesses and the long-term recognition of this area as a consumer shopping area. The uses of properties that form the boundaries to the north, east, and west of the PBIDboundary are residential in character. The northern boundary of the PBID extends along Van Nuys Boulevard north of Parthenia Street to include the retail/commercial establishments. The eastern boundary extends as far as Lennox and Tilden Avenues, and the western boundary Page 2

5 extends to Cedros. The southern boundary at Titus Street was determined as appropriate because there is no quantifiable benefit to be gained from the services to be offered through the PBID. Additionally, the businesses to the south of Titus Street represent a different culture with auto-related uses and other businesses that do not promote the pedestrian friendly environment of the selected PBID boundary. A map of the Panorama City boundary may be found on page 5. The northern boundary is identical to the zoning of retail/ commercial property in the area, and ends mid-block on Parthenia Street where the zoning changes to become multi-family, residential units. The east and west boundaries of the Panorama City PBID are also consistent with the zoning of commercial property in the area. The eastern boundary is defined by the alleys that separate the commercially zoned properties from single-family residential homes. The western boundary is determined by the residentially zoned properties that border the commercial zone on the west side of Cedros Avenue. The only commercially zoned parcel outside the western boundary, at the southwest comer of Parthenia Street and Cedros Avenue, is not the same retail-oriented, pedestrian friendly commercial use that is found at the other parcels in the PBID and thus would not benefit from the services proposed by the PBID. The southern boundary of the PBID extends one parcel deep along the south side of Roscoe Boulevard and one parcel deep along Van Nuys Boulevard to the north side of Titus Street. Although zoned for commercial use, the businesses operating along Titus Street, that do not front Van Nuys Boulevard, are not retail-oriented, pedestrian friendly commercial uses, and would not benefit from the services proposed by the PBID. Most of the uses south of Titus Street are semi-industrial in character and the majority of the uses along Van Nuys Boulevard south of Titus are auto-related uses which are not consistent with the commercial/retail uses found within the Panorama City PBID. Services: The Panorama City PBID proposes to offer the following services: (1) Care and maintenance of the streetscape and landscape improvements; (2) General maintenance and sanitation of the area to ensure that the Panorama City retail district remains clean and attractive to current and prospective pedestrians and businesses; (3) Highly visible security services to minimize illegal activities, vagrants and loitering and to promote a safe environment for customers and shop owners; (4) A series of cultural, community and special events to promote the cultural diversity of the District and to introduce current and future patrons to the many shopping and dining experiences and the many services available within the Panorama City PBID; (5) A marketing campaign involving activities designed to enhance the image of the District and encourage new consumers to frequent businesses in the PBID and new businesses Page 3

6 to locate in the PBlD; and, (6) program oversight and monitoring as well as policy development and district management and administration. Budget: The budget for program services and activities is estimated at $442, with a 5% contingency of $23, for a total PBlD budget of $465, Duration: The Panorama City PBlD shall begin operations on January 1, 2009 and pursuant to current legislation contained in the Streets & Highways Code of the State of California, Section 36600, may continue operation for a five-year period. The effective period of the PBID would be January 1, 2009 through December 31, At the conclusion of this initial term the PBID may be renewed for an additional five-year period. III. MAP OF BID GEOGRAPHIC BOUNDARIES The geographic boundaries of the include the commercial properties north of Parthenia Street as the northern boundary; the north side of Titus Street as the southern boundary; only the commercial properties west of Lennox and Tilden Avenues as the eastern boundary; and, Cedros Avenue as the western boundary. A detailed description of the boundaries is provided in the Engineers Report. The PBlD boundary to the north includes the commercially zoned properties to the north of Parthenia Street. The east and west boundaries of the PBlD were determined based on the adjacent single-family residential uses. The southern boundary is Roscoe Blvd. Page 4

7 PANORAI ", CITY BUSINESS IMPROVEMEN I DISTRICT DISTRICT BOUNDARY MAP 810 anlmc:iary ~97 BOot.&p,a,ge, Nllml!en CO<Irun,F\It Ottln:l."»e c::j ZONE 1 hu:;;!w zone 2 IiIilIiII ZONE 3 I ~R()J>()~~D~.;.Nb~MAtfT'(BID. I,.". BUSINESS:::::JJENTDISTRICT Panorama City Business Improvement District Page 5

8 IV. PROPOSED MANAGEMENT DISTRICT PROGRAM ACTIVITIES (MULTI-YEAR BUDGET: ) The program activities include the following: (1) Maintenance of the landscape / streetscape improvements; (2) General maintenance and sanitation of the PBID; (3) Security; (4) Cultural, community and special events; (5) Marketing and image enhancement; and, (6) PBID management and administration. The program activities will be provided only within the PBID boundaries for the purpose of improving the retail/ commercial corridor and attracting and retaining business through increased pedestrian traffic. The PBID shall operate on a fiscal year that begins January 1st and ends on the 31 st day of December. A contingency, of 5% of the total budget, will be established to cover unexpected expenses. Unexpended funds from projects that may not be completed or fully implemented within the fiscal year are to be carried forward. Carryover funds shall only be re-budgeted within the same budget category, and City Council approval/modification of the MDP may be required. Such decisions are to be made at the discretion of the owners association composed of the property owners, subject to contractual stipulations. Accrued interest and/or delinquent payments that are received during the operating year shall be expended in the budgeted categories. Any major changes to the budget categories must be approved by the Los Angeles City Council prior to expenditure, as stipulated in the Administration Contract between the owner's association and the City of Los Angeles. The Business Improvement District (PBID)must comply with all applicable sections of the State of California Streets and Highways Code, Brown Act provisions, and report to the City Clerk as stipulated in the Administration Contract. No bonds will be issued for the PBID. A special benefit is a distinct benefit to real property resulting from the services, activities, or programs to be provided by the assessment. The services, activities, or programs of the PBID are designed to provide targeted benefits to specific retail/commercial properties. These planned program services are tailored to confer special benefits on particular parcels and not the general public, For instance, the landscape/ streetscape maintenance, general PBID maintenance and sanitation, security, cultural, community and special events, marketing/image Enhancements and PBID Managements and Administration program activities will focus on parcel specific services within the district boundaries and will in no way be expended for the benefit of the general public. These activities are designed to improve the economic activity and provide special enhancement to each of the parcels within the PBID. These services, paid for by assessment revenues, are parcel services that create special benefit June200B Page 6

9 to those parcels. Moreover, these services do not benefit the general public nor confer general benefits as defined. No PBID services will be provided outside of the PBlD boundaries. The proposed PBID programs and services provide a special benefit to only the real property within the PBID area and do not provide any quantifiable or tangible general benefit as defined as a benefit to properties in the area and in the surrounding community and public in general resulting from the programs and services to be provided by the assessment levied. All general benefits, if any, to the surrounding community and the public in general are intangible and are not quantifiable. All special benefits derived from assessments that are listed in the are for services directly benefiting the property owners in this PBID and support increased commerce and the goals and objectives of the Panorama City Property PBID. The City of Los Angeles will continue to provide a baseline level of services as required by the area. The following is a detalled description of the program activities and the percentage of the budget allocated: 1. LandscapelStreetscape Maintenance (27%); The landscape and streetscape improvements will require regular, consistent care and maintenance. The streetscape plan proposes fully landscaped medians along the length of Van Nuys Boulevard from the northern to the southern boundary of the district. Planters are proposed at the curbside with appropriate trees and/or shrubbery. Landscape improvements are also to be installed on the east west streets at Parthenia, Chase and Titus Streets. A landscape firm is to be employed to maintain the improvements under the administrative management that will oversee the implementation of the PBID program. In addition to the streetscape improvements other beautification shall include decorative banners, directional signage that is unique to the Panorama City PBID, new street furniture and trash receptacles. It is here noted that to the extent possible, the Panorama City PBID will coordinate activities with the City's baseline services schedule for the area, which includes street sweeping and tree trimming. The PBID will assume the duties of sidewalk steam cleaning and tree trimming during those periods, which do not coincide with the City's baseline services. The maintenance services will only be provided within the district boundaries. The PBID Owner's Association will be responsible for securing all necessary permits required by the City of Los Angeles. The PBID Owners Association Page 7

10 shall also work in concert with the Public Works Bureau in providing the determined services. 2. General PBID Maintenance and Sanitation (35%): The goal of the general maintenance and sanitation component of the PBID program is the appearance of the PBID, over the long term, as an attractive and inviting place to shop and obtain services. The PBID will maintain and promote a uniform standard of cleanliness that will be apparent throughout the geographic boundaries of the district. The focus will be regular and continuous removal of paper and litter debris, disposal of leftover packing material and boxes, removal of graffiti, disposal of trash from trash receptacles, etc. A regular and systematic review of the entire PBID area will be conducted to identify any areas that regularly reflect unsanitary or litter conditions. These services are to be provided only within the district boundaries. 3. Security (18%): In order to attract pedestrians and retain businesses, it is critical that visible and continuous security be present during the operating hours of the retail! commercial businesses. Crime is not greater here than in other retail districts throughout the Valley but customers need to feel that it is safe to shop, eat and socialize at the various venues in the district. It is proposed that the security patrol canvass the area regularly throughout the business day. The added security may use bikes and! or cars to conduct regular perimeter and interior patrols of the entire district. The 0bjective is to maintain a highly visible security presence that will deter crime and encourage the image of safe shopping that will maintain and expand the current customer base. Security services will only be provided within the district. 4. Cultural, Community and Special Events (2%): Currently the district has a diverse customer base which is to be recognized and promoted through cultural and community events sponsored by the PBID and by individual business owners. The PBID Management shall collaborate with business owners to plan, sponsor and conduct a calendar of events that supports and integrates the efforts of both entities. The objective of these cultural and community events is to create an identity and positive image that acknowledges the existing customer base while attracting new consumers, new franchise businesses and the media. These services shall only be provided within the district. 5. Marketing/Image Enhancement (3%): The marketing and image enhancement activities will focus on mechanisms by which to improve the visual image of this shopping June200S PageS

11 district. Banners, way finding signage and other tools will be used to create a "destination" image. These tools will direct customers to the various shopping experiences offered by the Panorama City retail district minimizing the possibility of getting lost or walking out of the way to find a specific retailer. Marketing and District enhancement services are only be provided within the District. 6. BID Management & Administration (10%): A 501(c)(6) non-profit corporation, with an elected Board of Directors shall be responsible for the District's program oversight and authorization for disbursement of funds. Support staff such as a manager, bookkeeper and others will be employed and/or contracted with to provide necessary services in program implementation and oversight and regular contact with the Board of Directors. 7. Contingency (5%); A contingency will provide a balance for unexpected expenses that the Owners Association may incur. Assessments not collected will be supplemented from the contingency. Page 9

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13 The Panorama City PBID proposes to increase the assessment for each individual property owner by the annual CPI each year during the five-year effective operating period, but in no event shall the assessment increase exceed 3%. The accrued interest and delinquent payments will be expended within the budgeted categories. The Board of the Directors of the Owners Association of the Panorama City PBID shall determine the percentage increase to the annual assessment and the methodology employed to determine the amount of the increase. The PBID Manager shall communicate the annual increase to the office of the City Clerk each year in which the PBID operates at a time determined in the Administration Contract held between the Owners Association and the City of Los Angeles. Accrued interest and delinquent payments will be expended within the budget categories in the percentage amount indicated. No bonds are to be issued in conjunction with this PBID formation. The first year assessment is to be collected by the City of Los Angeles Office of the City Clerk. In subsequent years the assessment is to be collected by the Los Angeles County Assessor at the time the property taxes are collected. Page 11

14 VI. PROPOSED ASSESSMENT FORMULA The assessment formula is based on three benefit zones. The assessment rate is based on the anticipated benefit to be derived by each property owner within the boundary of the Panorama City Business Improvement District (PBID). It was determined that each property owner would not benefit to the same extent and for this reason three benefit zones were developed to create equity in terms of the assessment and which thus reflects the benefit to be derived by the property owner. Because the assessment against each parcel must reflect the speciai benefit that parcel derives from the District's programs and services, the first step in designing an assessment methodology is to assign "benefit units" to different attributes of parcels. The assignment of benefit units reflects the relative levels of special benefit. There are two types of benefit units. BUILDING BENEFIT UNITS A. Parcels fronting Van Nuvs Boulevard: Each parcel was allocated one (1) Building Benefit Unit $0.20) for each square foot of the first floor of each building on parcels fronting Van Nuys Boulevard. Each parcel was allocated one fourth (.25) a Building Benefit Unit (at $0.05) for each square foot of the second floor and higher of each building on parcels fronting Van Nuys Boulevard. B. Parcels not fronting Van Nuvs Boulevard: Each parcel was allocated three fourths (.75) a Building Benefit Unit (@ $0.15) for each square foot of the first floor of each building on the parcels not fronting Van Nuys Boulevard. Each parcel was allocated one sixth (.16) a Building Benefit Unit (@ $0.03) for each square foot of the second floor and higher of each building on parcels not fronting Van Nuys Boulevard. C. Lot Benefit Units: The parcels were allocated one Lot Benefit Unit for each square foot of the parcel's surface area at $0.05 per square foot. D. Public Owned Land: Public owned vacant land should be assessed at the same lot square footage cost, $0.05 per square foot. Page 12

15 BENEFIT ASSESSMENT ZONE 1: The primary advantage of the PBID is derived by those properties that have frontage along Van Nuys Boulevard. The main boulevard within the PBID, Van Nuys, experiences a significantly higher traffic pattern of both pedestrians and vehicles. As a result there is a higher level of daily clean-up and maintenance of the landscaping. The landscaping and aesthetic improvements along Van Nuys Boulevard will be to the maximum \ benefit of property owners at street level facing the Boulevard. These owners also benefit to the greatest extent from the other activities to be undertaken in improvingthe area. However,even within Benefit Assessment Zone 1, the special benefit is not uniformly equal. For this reason, several formula factors were created to comprise the total assessment, and the Zone 1 assessment consists of the combined formula factors of Benefit Assessment 1.1 (ground floor building square footage times $0.20) plus 1.2 (upper floor building square footage times $0.05) plus 1.3 (parcel lot square footage times $0.05). Further defined, these formula factors are as follows: BENEFIT ASSESSMENT ZONE 1 FORMULA FACTORS Benefit Assessment Formula Factor 1.1: The ground floor improvement (structure) of parcels that face Van Nuys Boulevard. This portion of the assessment formula factor is based on the total square feet of the first floor improvement on Van Nuys Boulevard. For those parcels that face Van Nuys Boulevard, the ground floor level is deemed to receive the greatest benefit and therefore a higher assessment formula factor for the ground floor/level from the improvements to the PBID due to the direct pedestrian access each parcel has to the full range of street-level PBID services. The highest assessment is for properties with an improvement (structure) and Van Nuys Boulevard frontage due to the special benefits to be received based on the total square feet of the first floor improvement. Assessment Rate: $.20 per square foot PLUS Benefit Assessment Formula Factor 1.2: The improvement (structure) for all other levels (not the ground floor) of parcels that face Van Nuys Boulevard. This portion of the assessment formula factor is based on the total square feet of the improvement/ structure (other than the ground floor)for those parcels that face Van Nuys Boulevard. This assessment formula factor was developed to recognize the greater special benefit received by the ground floor level of structures that face Van Nuys Boulevard and minimize the inequity of assessing the entire structure equally Page 13

16 when the primary benefits diminish significantly after the first floor. Floors above the first floor will benefit from all PBIDservices, but the indirect pedestrian access to street-level services greatly reduces the special benefits received on these floors. PLUS Assessment Rate: $.05 per square foot Benefit Assessment Formula Factor 1.3: The total parcel lot square footage. It was recognized that the proposed activities such as maintenance, graffiti removal, security, marketing, etc. would benefit all property owners to the same degree. Thus, Benefit Assessment Formula Factor 1.3 was created as the base assessment formula that is applied equally to all property owners within the PBID. This assessment reflects a flat fee of $.05 per parcel square foot and is assessed to all property owners. It reflects the minimum benefit that is shared equally by all property owners. Assessment Rate: $.05 per square foot ZONE 1 Total Assessment Amount = (Ground Floor Building Sq Ft xi!io:26j + (UpperFloorBuilding Sq Ft X $0.05) + (Parcel Lot Sq Ft X $0.05) As an example, the assessment for a Zone 1 business on a 5000 sq. ft. lot that has a 1000 sq. ft. one-story building would be as follows: Parcel Lot Ground Floor Factor Factor (5000 X $0.05) + (1000 X $0.20) = = $250 $200 + Upper Floor Factor (0 X $0.05) $0 = Total Assessment Amount = $450 Each zone varies on the level of benefits received. Therefore the amount for the assessment factors vary accordinglyin each zone to match the levelof received benefit. BENEFIT ASSESSMENT ZONE 2: This zone was created in recognition that the proposed activities such as maintenance, graffiti removal, security, marketing, etc. do not benefit each property owner equally. The main boulevard of Van Nuys experiences a significantly higher traffic pattern of both pedestrians and vehicles. As a result there is a higher level of dally clean-up and maintenance of the landscaping. The extra time and required attention devoted Page 14

17 to Van Nuys Boulevard should not be paid for by those property owners on the cross streets of Parthenia and Chase as well as the north south streets of Tobias and Cedros. For this reason Benefit Assessment Zone 2 was created. However, within Benefit Assessment Zone 2, the special benefit is not uniformly equal. For this reason, several formula factors were created to comprise the total assessment, and the Zone 2 assessment consists of the combined formula factors of Benefit Assessment 2.1 (ground floor building square footage times $0.15) plus 2.2 (upper floor building square footage times $0.03) plus 2.3 (parcel lot square footage times $0.05). These formula factors are defined as follows: BENEFIT ASSESSMENT ZONE 2 FORMULA FACTORS Benefit Assessment Formula Factor 2.1: The ground floor improvement (structure) of parcels that do not face Van Nuys Boulevard. This portion of the assessment formula factor is based on the total square feet of the first floor improvement for streets other than Van Nuys Boulevard. For those parcels that do not face Van Nuys Boulevard, the ground floor level is deemed to receive the greatest benefit and therefore a higher assessment formula factor for the ground floor/level from the improvements to the PBIDdue to the direct pedestrian access each parcel has to the full range of street-level PBIDservices. The ground floor assessment for formula factor 2.1 is reduced compared to the ground floor assessment for formula factor 1.1 to account for the reduced amount of daily clean-up and maintenance of landscaping that Zone 2 will receive in comparison to Zone 1. PLUS Assessment Rate: $.15 per square foot Benefit Assessment Formula Factor 2.2: The improvement (structure) for ail other levels (not the ground floor) of parcels that do not face Van Nuys BOUlevard. This portion of the assessment formula factor is based on the total square feet of the improvement/ structure (other than the ground floor) for those parcels that do not face Van Nuys Boulevard. This assessment formula factor was developed to recognize the greater special benefit received by the ground floor level of structures that do not face Van Nuys Boulevard and minimize the inequity of assessing the entire structure equally when the primary benefits diminish significantly after the first floor. Floors above the first floor will benefit from all PBID services, but the Page 15

18 indirect pedestrian access to street-level services greatly reduces the special benefits received on these floors. The non-ground floor assessment for formula factor 2.2 is reduced compared to the non-ground floor assessment for formula factor 1.2 to account for the reduced amount of PBID services that Zone 2 will receive in comparison to Zone 1. PLUS Assessment Rate: $.03 per square foot Benefit Assessment Formula Factor 2.3: The total parcel lot square footage. It was recognized that the proposed activities such as maintenance, graffiti removal, security, marketing, etc. would benefit all property owners to the same degree. Thus, Benefit Assessment Formula Factor 2.3 was created as the base assessment formula that is applied equally to all property owners within the PBID. This assessment reflects a flat fee of $.05 per parcel square foot and is assessed to all property owners. It reflects the minimum benefit that is shared equally by all property owners. Assessment Rate: $.05 per square foot ZONE 2 Total Assessment Amount = (Ground Floor Building Sq Ft X $0.15) + (Upper Floor Building Sq Ft X $0.03) + (Parcel Lot Sq Ft X $0.05) An example for a Zone 2 business on a 5000 sq. ft. lot that has a 3000 sq. building (each story having equal square footage), would be as follows: Parcel Lot Ground Floor Upper Floor Factor Factor Factor (5000 X $0.05) + (1000 X $0.15). + (2000 X $0.05) ft. three-story Total Assessment Amount = = $250 $150 $100 $500 Each zone varies on the level of benefits received. Therefore the amount for the assessment factors vary accordingly in each zone to match the level of received benefit. Page 16

19 BENEFIT ASSESSMENT ZONE 3: This zone was created in recognition that public parcels are not retail commercial in nature. These public parcels will receive minimum benefits from the proposed PBID services and programs and will be assessed accordingly. Thus, Zone 3 is applied as the equal assessment rate for parcel square footage as to all property owners for the minimum benefit derived from inclusion within an operating business improvement district. Assessment Rate: $.05 per square foot For zone 3, the formula is as follows: ZONE3 ; Total Assessment Amount = (Parcel Lot Sq Ft X $0.05) An example for a Zone 3 business on a 5000 sq. ft. lot, would be as follows: Parcel Lot Total Factor Assessment (5000 X $0.05) = Amount = = $250 $250 The Property Owner's Database is included herein as Appendix I. The Proposed Assessment Formula contains specific detail on the per property assessment. The assessment is to be included on the property owner's tax statement issued and collected by the Los Angeles County Assessor's Office. The City of Los Angeles also has the capability to collect the assessment fees for the first year of the PBm operation. The City of Los Angeles may impose a 1% charge for this service. The assessment billing would be placed on the County tax rolls for the 2010 tax year. If a building within the PBm boundaries subdivides into multiple ownership (more than one APN) on a shared parcel lot (e.g. condos, mixed use, etc.], the assessment calculated for the parcel lot square footage will be equally divided between all owners on all floors of the multiple owned building. Multiple ownership of a building may consist of multiple residential owners, multiple commercial owners, or any mixture of residential and commercial within the same building, and all legal owners will share the parcel lot assessment equally. In addition to Parcel Lot Assessment, multiple owners in a building will also pay the regular assessment rate for building square footage per floor of building per Benefit Assessment Zone as described previously in this section. And each individual owner will pay their building assessment based on the legal ownership and building square footage of their individually owned property. For example, if a building with 4 individual owners in Zone 1 sits on a lot with a parcel lot area of Panorama City Business Improvement Distn"ct Page 17

20 5000 sq ft, giving a total parcel lot assessment of $250, that total parcel lot assessment will be divided equally between all 4 owners at $62.50 per owner. The building square footage will be assessed by each owners legal portion of ownership per floor of building at $0.20 per square foot for the ground floor and $0.05 per square foot for each upper floor. As a result of continued development, the District may experience the addition or subtraction of assessable commercial footage for parcels included and assessed within the PBID boundaries. The modification of parcel improvements assessed within the District may then change upwards or downwards the amount of total footage assessment for these parcels. In future years, the assessments for the special benefits bestowed upon the included PBID parcels may change in accordance with the assessment methodology formula listed in the and Engineer's Report provided the assessment formula does not change. If the assessment formula changes, then a Proposition 218 ballot will be required for approval of the formula changes. VII. PUBLICLY OWNED PARCELS At this time only three (3) parcels were found which were identified as owned by a public entity. The three parcels referenced are located in the block bounded by Chase Street to the north; Roscoe Boulevard to the south; Lennox Avenue to the east; and, Van Nuys Boulevard to the west. The parcel numbers are as follows: ; ; and, All three parcels are owned by the City of Los Angeles. No street addresses have been assigned to the parcels owned by the City of Los Angeles. The publicly owned parcels represent a total of 30,064 square of land consisting of three separate parcels. The 30,064 square feet of land owned by the City represents 0.01% of the total land included within the geographic boundaries of the PBID. Assessment Rate: The City of Los Angeles, as a public agency, is to be assessed on the basis that the public parcels would benefit to the same degree from proposed activities such as maintenance, graffiti removal, security, etc. as regular lot units, and reflects the minimum benefit that is shared equally by all property owners. At $.05 per square foot, a total of $1, shall be assessed to the City of Los Angeles. The $1, charged to the City represents less than 0.4% of the total funds to be generated through the PBID assessment. Page 18

21 PANORAI'nA CITY BUSINESS IMPROVEMEN. DISTRICT BENEFIT ASSESSMENT ZONES - BlDllouo:l~1Y :t.fu.497a""'k&p~ii"nljfiln~~ -'~- OZONE I ~ZOHE2 IliIilON 3 1 PROPOSED PANORAMA':ITY BID I,..it- 9US1NESS tw'rc\l MENT DISTfUCT I,Ill Benefit Assessment Zone 1 II Benefit Assessment Zone 2 Benefit Assessment Zone 3 Panorama City Business Improvement District Page 19

22 PBID IMPLEMENTATION TENTATIVE TIMETABLE The anticipates approval by the Los Angeles City Council and operational status by January 1, The following tentative procedural timetable is to be followed in order to meet the projected operational date: Begin the property owner petition drive required for PBID formation July 2008 Completed petitions are to be submitted to the City Clerk's office for review, approval and a determination that all meet the ballot requirements. Following this step, the assessment ballot process, as required by Article XIII D of the California Constitution (Proposition 218) shall be initiated followed by a review of the City Council Committee. July 2008 The Los Angeles City Council shall adopt a resolution, which expresses the intent to form the Panorama City PBID. A notice of the public hearing is issued with the Assessment Ballots and mailed to all property owners within the geographic boundaries of the PBID. September 2008 The City Council conducts a public hearing on PBID formation and the assessment. The notice must be provided at three separate Council meetings prior to final approval of the PBID establishment. January 1, 2009 The is officially able to begin operations. VIII. PBID DISTRICT GOVERNANCE A 501(c)(6) non-profit organization is to be formed as the management entity for the Panorama City Business Improvement District. It is currently proposed that the program activities be coordinated and managed by the non-profit corporation. At this time it is anticipated that support staff; i.e., Manager, bookkeeper, marketing consultant, etc. shall be employed and supervised by the Owners Association elected to the non-profit Panorama City PBID Corporation. The monitoring and oversight shall be the responsibility of the Board of Directors and the coordination and implementation of the program activities shall be the responsibility of the employees andj or consultant contracted for this purpose. Panorama City Business/mprovemenf District Page 20

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