HomeMy WebLinkAbout02. Reso of Formation to establish a Downtown Downey Community Benefit DistIL 111 NU.
APPROVED BY
COUN�ITY MANAGER
TO: L
HONORABE MAYOR AND MEMBERS OF THE CITY JLl
FROM: OFFICE OF THE CITY MANAGER
BY: ALDO E. SCHINDLER, DIRECTOR OF COMMUNITY DEVELOPMEN
DATE: JULY 24, 2018
SUBJECT: RESOLUTION OF FORMATION TO ESTABLISH THE DOWNTOWN DOWNEY
COMMUNITY BENEFIT DISTRICT
It is recommended the City Council take the following actions related to the proposed
Powntown Downey Community Benefit District:
1 . Conduct a public hearing;
2. At the conclusion of the public hearing, direct the City Clerk to canvass the ballots',
3. Receive and file the Community Benefit District ballot results; and
majority protest does not exist, adopt a Resolution of Formation reflecting the
modified boundaries and forming the Downtown Downey Community Benefit
District.
As referenced in the Downtown Specific Plan— Implementation Recommendations, the City has
pursued a goal to create and formalize an Improvement District to facilitate improvement of the
appearance and overall health of Downtown. With the rapid growth of Downtown Downey, staff
has found an increase in the demand for certain services downtown, including street sweeping,
steam cleaning, security, public art, etc. While the City currently provides regular general
services to the downtown area, it is essential that alternative sources be studied to provide
continued funding for special services the downtown requires to maintain its vitality.
Since the adoption of the California Property Business Improvement District Legislation of 1994,
which enables localities to establish Community Benefit Districts (CBDs), CBDs have been
embraced as critical tools to expedite revitalization of downtown areas and have been
successfully adopted throughout the State of California.
On June 7, 2018, City Council received and filed the CBD petition results which indicated that a
total of 30.24% of the total assessments under the CBD were supportive of the CBD formation.
The amount exceeded the 30% threshold and permitted the City Council to adopt the Resolution
of Intention to form the CBD. At the same meeting, City Council approved the Downtown
Downey Community Benefit District 2018 Management District Plan (Management District Plan)
and Assessment Engineer's Report (Engineer's Report), and directed the City Clerk to mail
ballots to the proposed CBD property owners. There are 82 parcels identified in the proposed
CBD, and ballots were mailed on June 8, 2018, along with the Management District Plan and
RESOLUTION OF •. • TO ESTABLISH
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J U LY 24, 2018
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Engineer's Report, a cover letter, notice of public hearing, and ballot instructions
(Attachment B), official ballot, and return envelopes. Recipients were notified that in order to be
counted, ballots must be returned not later than the close of the public hearing on July 24, 2018;
The time frame provided more than the 45 days required by law.
Since then, staff has continued to assess the purpose and boundaries of the CBD. Recent
consideration was given to the newly created residential units (Village Walk) built in the
downtown at the westernmost boundary of the CBD. The timing of the completion of the
residential development, occupancy of the owners, and formation of the CBD are problematic,
as it did not provide staff the time to adequately communicate the role of the CBD, and did not
provide the new condo owners time to digest and understand the CBD. Therefore, staff is
recommending removing this new residential development from the CBD. This action then
creates a jagged and unruly new CBD western boundary. _After further study, staff believes the
properties to the north and south of the Village Walk should also be removed from the CBD, as
they are uses that will not benefit from the CBD. This modification of the boundaries would
remove 31 parcels from the proposed CBD. The modified CBD map is included in the updated
Management District Plan and Engineer's Report.
The concept of the CBD is to provide the downtown property owners with finances to better
control and fund special events, marketing, promotional activities, public space development,
security, beautification, property enhancements, and a property owner led governance body for
the administration of the services. All of the proposed services and improvements benefit the
property owners located in the downtown district. If approved, the CBD would raise $232,385
annually for the downtown.
Consequently, many cities have adopted districts allowing motivated propertyowners to pay
assessments to fund CBDs. These special benefit assessments are the most efficient and
effective funds to be paid, since they must stay in the CBD and are managed by a locally based
non-profit corporation made up of those being assessed. In order for downtown property owners
to form a CBD, the City Council must adopt an enabling ordinance, which occurred at the
October 13, 2015 City Council meeting; approve a Resolution of Intention which occurred on
June 7, 2018; allow a 45 -day period for mail -in ballots by the affected property owners of the
proposed CBD; then hold a public hearing before the City Council for public comments and the
collection and tally of the vote of the property owners within the proposed district.
The City's CBD consultant, New City America, and City staff have been conducting outreach
and working with the downtown property owners to determine the feasibility of forming a
property assessment district. Staff have mailed various correspondence soliciting feedback from
the downtown property owners, spoken with them and formed a Steering Committee of
interested property owners to discuss the feasibility of forming a property assessment district.
The Steering Committee has met numerous times since 2015, and discussed the proposed
district boundaries, costs, functions and budget categories. The City Council Downtown
Subcommittee has also received numerous updates on this topic.
The next step in proceeding with the establishment of a CBD is the tally of the ballots, and if a
majority protest does not exist, approval of the Resolution of Formation to establish the
downtown CBD and levying assessments. The proposed Resolution reflects the amended
RESOLUTION OF • • i• ESTABLISH
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JULY 24, 2018
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boundaries as described above and acknowledges the appropriate steps as dictated by the City
of Downey and the State of California were followed. In order to approve the Resolution of
Formation the following must occur:
Public Hearing and Ballot Tabulation'
The public hearing, which is required by the California Government Code, gives property
owners an opportunity to voice their opinionregarding the formation of the CBD and cast their
ballot for or against the formation of a CBD in a public forum.
Ballots are accepted until the close of the public hearing. At the close of the public hearing, the
balloting agenda item will be recessed. At that time, ballots will be opened and tabulated in
public. The tabulation is weighted based on the value of the total assessment. The owners of
the largest properties, with bigger buildings and more street frontage, will be subject to paying
more into the District, and will therefore have their votes count in proportion to what they will
pay. After all ballots are processed, the agenda item will resume and the final ballot count will be
announced.
If the weighted ballots in favor of the formation of the District exceed those in opposition, the
City Council may adopt a Resolution of Formation (Attachment "A") that levies the assessments
on the benefitting parcels in the proposed CBD boundaries as modified. The City then informs
the Los Angeles County Assessor's Office to levy the assessments on the next cycle of
property tax bills consistent with the amounts listed in the amended Management District Plan
and Engineer's reports (Attachment A).
In light of staff's recommendation to modify the boundaries as described above, with the
direction of the City Council, the ballots will be tallied excluding the ballots that may have been
submitted by the property owners of the 31 parcels to be excluded from the boundaries of the
proposed CBD.
Budget
The Management District Plan includes a budget of $232,385 funded by assessments on all
properties in the Downtown Downey CBD. The funds will provide enhanced services, articulated
in the Management District Plan, over and above baseline services provided by the City General
Fund.
Net Stepp
The City Council's resolution shall authorize the City Manager to amend the database, based
upon verified factual submissions, to ensure the most up-to-date data and related proportional
assessments have been transferred to Assessor's Office prior to the assessment roll deadline in
August 2018.
If the CBD is approved, the assessments will then appear as a line item on the property tax bills
and will be separated and sent to the City for processing. The CBD will then need to establish a
management entity to administer the CBD. Once an account has been established and a
RESOLUTION OF FORMATION TO ESTABLISH
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JULY 24, 2018
PAGE 4
contract is in place with the designated management corporation, the CBD assessments will be
transferred to the nonprofit management corporation for allocation of the assessments in
accordance with the Management District Plan.
Staff will return, on a date to be determined, to the City Council for approval of the contract with
the nonprofit management corporation for administration of the CBD. It is anticipated that the
CBD Steering Committee will begin work immediately on nonprofit corporation and
establishment of an interim Board of Directors once the public hearing has been concluded and
the Resolution of Formation has been adopted.
An agreement with the interim Board of the new nonprofit management corporation will likely
take 90-120 days. In the meantime, City staff will work closely with the CBD Steering Committee
to ensure the work of establishing and executing this new program proceeds effectively and
efficiently.
A Downtown Downey Community Benefit District could raise nearly $232,385` annually that
would be reinvested into making Downtown Downey thrive. Similar districts have produced a
return on investment in the form of higher sales, higher rents, and higher property values.
Should the balloting result in weighted majority support, the Downtown Downey CBD could be
adopted and move to the implementation stage.
COUNCILDITY •
Economic Vibrancy
FISCAL IMPACT
The City's contribution to the Downtown Downey Community Benefit District will be $49,066.96
of property taxes from City and City of Downey Community Development Commission —
Housing Successor Agency owned property.
ATTACHMENTS
Attachment A Resolution of Formation to establish the Downey Community Benefit District as
modified (including modified Management District Plan and Assessment
Engineer's Report)
Attachment B — Cover Letter, Notice of Public Hearing, and Ballot Instructions
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DONEY,
FORMING THE DOWNTOWN DOWNEY COMMUNITY BENEFIT DISTRICT
AND LEVYING ASSESSMENTS THEREWITH
WHEREAS, on October 27, 2015, the City Council of the City of Downey (City)
adopted Ordinance No. 15-1346 (Ordinance), the City's Downey Community Benefit
District Procedural Ordinance, authorizing the City to establish Community Benefit
District (CBD) to enhance the security, safety, appearance, and economic viability within
such districts;
WHEREAS, the Ordinance authorizes the City to levy and collect assessments
on real property within such districts for the purpose of providing improvements and
promoting activities that specially benefit real property within such districts;
WHEREAS, the Ordinance authorizes the City to use the procedures set forth in
the Property and Business Improvement District Law of 1994 (Streets & Highways Code
sections 36600, et seq.) (PBID Law) as modified by the Ordinance for purposes of
forming an assessment district;
WHEREAS, Articles XIIIC and XIIID of the California Constitution and Section
53753 of the California Government Code (Proposition 218 Omnibus Implementation
Act) also impose certain procedural and substantive requirements relating to the notice,
protests and hearing requirements pertaining to new or increased assessments;
WHEREAS, Section 3007 of the Downey Municipal Code initiates the
proceedings to form a new Community Benefit District with the submittal of written
petitions that have been received from property owners within the area of the proposed
CBD in Downey requesting the City Council to initiate proceedings pursuant to Chapter
14 of the Downey Municipal Code and establish a Downtown Downey Community
Benefit District;
WHEREAS, inclusive of the properties owned by City of Downey Community
Development Commission - Housing Successor Agency, such petitions were signed by
property owners in the proposed CBD who will pay more than thirty percent (30%) of the
assessments proposed to be levied and such petitions were provided to the City
Council at their meeting on June 7, 2018;
WHEREAS, -a Management District Plan entitled the "Downtown Downey Community
Benefit District 2018 Management District Plan" ("Management Plan") for the proposed
Downtown Downey CBD has been prepared and contains all of the information required by the
Ordinance, including, but not limited to, a description of the boundaries of the proposed CBD,
the special benefit improvements and activities and an assessment amount for every parcel
within the CBD.
WHEREAS, on June 7, 2018, the City Council adopted Resolution No. 18-7808, a
resolution of the City Council of the City of Downey, California, declaring its intention to
establish the Downtown Downey Community Benefit District and to levy and collect
assessments within said district pursuant to Chapter 14 of the City of Downey Municipal Code
pertaining to the formation of a community benefit district,
RESOLUTION NO.
PAGE 2
and calling an assessment ballot proceeding, authorizing the City Manager to sign the petition
and the ballot, and establishing a time and place for a public hearing on July 24, 2018;
WHEREAS, as directed by Resolution No. 18-7808, on June 8, 2018, no less than 45
days prior to the public hearing, the City Clerk mailed to 70 record owners of affected parcels a
ballot packet including: a notice of July 24, 2018 public hearing on the formation of the
Downtown Downey Community Benefit District, a ballot with the proposed assessment amount,
ballot instructions, Management District Plan, Assessment Engineer's Report ("Engineer's
Report"), and other data describing the process, as required by Article XI II D, Section 4 of the
California Constitution and Section 53753 of the Government Code;
WHEREAS, on July 24, 2018 at 6:30 pm or as soon thereafter as was practicable, in
the City Council Chamber, the City Council held a public hearing, at which it heard and
considered oral and written testimony from all interested persons.
WHEREAS, the City Council directed that the proposed boundaries of the Downtown
Downey CBD, be amended to exclude 31 parcels that will not receive a special benefit from the
District's projects and activities under Streets and Highways Code section 36624, as are shown
in the amended Management Plan that is attached hereto as Attachment A;
WHEREAS, following the public input portion of the Public Hearing, all assessment
ballots submitted by property owners within the amended boundaries of the District that had
been returned to the City and received prior to the end of the public hearing, and not
withdrawn, were tabulated pursuant to the procedures set forth in Resolution No. 18-7808
and applicable law;
WHEREAS, based on the Assessment Ballot Proceeding Results tabulation attached
hereto as Attachment B, the City Council determined that a majority protest, as defined by
Article XIII D, Section 4(e) of the California Constitution and Section 53753 of the California
Government Code, does not exist with respect to the assessment proposed in connection
with the Downtown Downey Community Benefit District; and
WHEREAS, the property within the amended area of the CDB will be benefitted by the
improvements and activities funded by the assessments levied in connection with the CBD. The
assessment against each parcel does not exceed the reasonable cost of the proportional
special benefit conferred on that parcel
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF DONEY, DOES
HEREBY RESOLVE AS FOLLOWS:
SECTION 1. The above recitals are true and correct.
SECTION 2. Pursuant to Chapter 14 of the of the Downey Municipal Code
(Ordinance No. 15-1346) which incorporates provisions of Section 36621 of the PBID
Law, the Downtown Downey Community Benefit District (CBD) is hereby formed.
SECTION 3. The City Council hereby approves the Downtown Downey
Community Benefit District 2018 Management District Plan, as amended, and
Engineer's Report, as amended, for the proposed Downtown Downey CBD, which
amended Management Plan and amended Engineer's Report are attached hereto as
Attachment A.
RESOLUTION NO
PAGE.3
SECTION 4. The amended boundaries of the CBD described in the amended
Management Plan generally encompass the core commercial areas of Downtown
Downey from 3rd and 4th Streets on the north to Union Pacific Railroad Right -of -Way
on the south and from Brookshire Avenue on the east to LaReina Avenue on the
west.
SECTION` 5. The proposed activities of the CBD as set forth in the amended
Management Plan include special events, private security, beautification, marketing,
promotional activities, public space development, enhancement for property owners,
street sweeping, steam cleaning, public art and administration of the services and an
appropriate contingency/reserve. All proposed services and improvements will
provide a special benefit to businesses and real property located within the CBD and
shall not be provided outside the district or for any purpose other than the purposes
specified in the Resolution of Intention. Notwithstanding the foregoing, improvements
and activities that must be provided outside of the district boundaries to create a
special or specific benefit to the assessed parcels may be provided, but shall be
limited to marketing and signage pointing to the district.
SECTION 6. The assessments will be levied on the parcels located within the
amended district boundaries and no bonds will be issued.
SECTION 7. The activities, as set forth in Section 5 herein, of the Downtown
Downey CBD will be funded by a total assessment levied and collected within the
proposed Downtown Downey CBD for fiscal year 2018-19 of approximately $232,385. -
Section 7 of theamendedManagement Plan sets forth the proposed Downtown Downey
CBD annual assessment amount by Assessor's Parcel Number. The amount to be levied
and collected for subsequent years may be increased by an amount not to exceed five
percent (5%) per year as approved by the Board of Directors of the CBD.
SECTION 8. The duration of the new CBD shall be no greater than specified
in the Resolution of Intention for the CBD, and shall in no event be in excess of
twenty (20) years.
SECTION 9 For a complete description of the CBD, its boundaries and
activities, total amount of special benefits to be conferred on the real property and
businesses in the district, as well as complete description of the assessment
authorized in connection with the Downtown Downey CBD, reference is made to the
amended Downtown Downey Community Benefit District Management District Plan,
and the amended CBD Engineer's Report, each of which are attached hereto, and
will be available on file in the City Clerk's Office, available for public inspection, and
incorporated herein by reference. The amended Management Plan and amended
Engineer's Report are hereby approved. Properties in the Downtown Downey CBD
shall be subject to any amendments to the PBID Law.
SECTION 10. The adoption of this Resolution constitutes the levy of the
assessment, as amended, in each of the fiscal years; however, each year's levy shall be
conditioned on the approval, by resolution, of an annual report pursuant to Section 36650
of the PBID Law. The approval of such report is at the discretion of the City Council.
SECTION 11. The City Clerk is hereby authorized and directed to record the
notice of assessment required by Section 36627 of the PBID Law.
RESOLUTION NO.
SECTION 12. This resolution shall take immediate effect.
SECTION 13. The City Clerk shall certify to the passage and adoption hereof.
MARIA ALICIA DUARTE, CMC
City Clerk
HEREBY CERTIFY that the foregoing Resolution was adopted by the City Council of
the City of Downey at a RegularMeeting held on the 24th day of July, 2018, by the following
vote, to wit:
AYES:
Council Members:
NOES:
Council Member:
ABSENT:
Council Member:
ABSTAIN:;
Council Member:
MARIA ALICIA DUARTE, CMC
City Clerk
RESOLUTION NO:.
PAGE 5
Attachment A
Amended ManagementDistricti the
AssessmentReport
H[W,t(ITY
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Final Plan —July 12 1 2018
WON
New City America, Inc.
and
The Downtown Downey CBD Steering Committee
New England • 42 Pearl Street, i New Bedford, MA 6 02740
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Downtown Downey
Community Benefit Districl
Management District Plan
Table of Contents
Section Number
1. Management District Plan Summary
3. District Improvement and Activity Plan
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1111 1011 1 1
6. Implementation Timetable
Attachment:
A. Engineer's Report
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The name of this Community Benefit District is the Downtown Downey Community Benefit
District (the "CBD"). The District is formed under Article 2, Chapter 14 of the Downey Municipal
Code (entitled "Community Benefit Districts" and hereinafter referred to as the "Ordinance") and
section 400 of the Downey City Charter.
The proposed Downtown Downey CBD serves to improve the individual parcels, attract new
customers to their businesses, increase sales, increase occupancies and enhance the benefitting
individual parcels within the CBD. The proposed CBD seeks to fund the special benefits that will
be provided over the next fifteen years, based upon keeping the greater Downtown Downey area
clean, safe, orderly, attractive, well marketed with special events and programs, and increase
commerce within the boundaries.
Since last summer, a Downtown Downey group consisting of property owners has worked to
gauge support within the community fora new Special Benefit District for both the Downtown
Downey property owners and business community. The City of Downey has hired New City
America - specializing in Special Benefit District formation and management throughout the -
Country - to work with the property owners to investigate the viability of a CBD in Downtown.
Following meetings conducted last summer, the newly -formed Downtown Downey CBD Steering
Committee approved and mailed out a survey to Downtown property owners, informing them
that once New City America had received a reasonable number of responses, updates would be
sent out regarding the survey results. This newsletter outlines the continuation of a series of
communication pertaining to the proposed CBD.
Changes in Downtown Downe
In 2011, the State Legislature dismantled 408redevelopment agencies, redirecting the flow of
funds back to the counties, and school districts; rather than reinvesting back into cities. The
California League of Cities filed a lawsuit to stop this elimination, resulting in a 2012 California
Supreme Court ruling ceasing the operations of all redevelopment agencies by February 2013.
Consequently, the method of financing used previously by the City of Downey to fund Downtown
improvements no longer existed. In the past, the opportunity to fund pedestrian lighting, new
sidewalks, and public improvements in Downtown Downey has typically been through this
redevelopment tax -increment financing.
3
The investigation of a new Downtown Downey CBD centered on these four questions:
How do property owners make sure that...
1. Downtown's brand will become positive?
2. Greater demand will be placed on the buildings resulting in greater rental rates?
3. Commerce will increase for retailers?
4. Public rights of way will become more orderly and attractive?
Downtown Downey has many things going for it, in part to the City Council's investment in the
following projects, programs, and activities over the past few years:
Capital,, Imrovementss
• Invested $6.7million for Firestone Blvd. street and streetscape improvements.
• Invested $4.6 million to support the Downey View apartments; the first new residential
units in Downtown in years.
• Funded over $600,000 to improve Downtown Downey roadway lighting (upgrading the
decorative lights to LED, remove and replace 30 feet cobra head lights with decorative
lighting, repainting light poles as necessary, etc...) on Downey Ave. from Firestone Blvd., -
to 5th Street.
Additional operational annual costs:
• Allocated over $100,000 annually for private security services related to the public
parking structure and immediate surrounding area.
• Provided tens of thousands of dollars in annual maintenance costs (including but not
limited to: sidewalks and seat -wall cleaning, tree trimming, median landscape
maintenance, parking structure and other public parking maintenance, and roadway
lighting — not done elsewhere in the City).
• Funded sidewalk and hardscape/pavers and seat benches, pressure washing/steam
cleaning- $66,000.
• Funded parking structure maintenance and operations -$64,000.
• Funded $7,000 for Downtown tree trimming (on a two year cycle).
• Funded the cost for electricity and lighting in Downtown of roughly $10,000 per year,..
Additional activities and program costs include:
• Underwriting $36,000 for rooftop events in Downtown.
• Underwriting up to $55,000 for the Downtown International Food Festival.
• Underwriting $70,000 for holiday and seasonal decor (banners, lighting, signage)
annually.
Underwriting the Annual Rock and Ride Events for $25,000 per year.
The general services listed above are NOT provided City rather exclusively to Downtown
business and property owners. In that sense, they can be considered "enhanced general
benefit" that are dependent upon year-to-year budgeting by the City Manager and City
Council The proposed Downtown Downey CBD will provide"special benefits", thereby
0
enhancing rent and attracting new capital investment, in turn improving the visiting, retail, and
business experience.
Boundaries:
The proposed Downtown Downey CBD consists of approximately 10 to 12 square blocks
consisting of 82 parcels and 57 property owners. Seethe Downtown Downey proposed CBD map
in Section 2, pages 10 and 11. The District is generally bounded by:
a On the south by the parcels along the north side of Burns Avenue
On the west, parcels on the west side of La Reina Avenue, including parcel 6254 001017.
0 On the east, the parcels on the west side of Brookshire. Avenue. and
# On the north, the parcels on the north side of 3 d Street, including the two full blocks
bounded by 3rd Street/New Street/4th Street and the parcels fronting the east side of
Downey Avenue between 3rd and 4th Street, excluding the undeveloped parcels east of
US Bank, but including City Hall.
Budget.
The total first year Downtown Downey CBD budget based upon assessable individual parcel
owners for FY 17/18, will be $ 232,385.00, and the budget will increase by 5% annually. Please
see Section 3 for a breakdown of the categories of special benefit services.
Improvements, Activities and Services of the Downtown Downey CBD Plan:
There are five basiccategories of special benefit services that will be funded by the Downtown
Downey CBD. All of these services will confer a special benefit to the individual parcels within
the Downtown Downey CBD. The categories of special benefits are as follows:
1. Sidewalk Operations, Beautification and Order: This includes all sidewalk and gutter
cleaning services, sidewalk steam cleaning services, graffiti removal, trash removal, as
well as enhanced services to beautify the district. Sidewalk operations services totals
$ 120,000 or 51% of the first year annual budget of the new CBD.
2. District Identity: These services include the branding of the Downtown Downey area,
marketing and promotions, newsletter, public relations, media relations, social media,
publicity, special events, website development and maintenance, public space develop
and holiday decorations. These services equal $ 55,000 or 24% of the first year annual
budget of the new district.
3.- Enhanced Residential Improvements: Though there are currently not any single
residential units in the form of residential condos within the boundaries of the district,
future condo developments that will be constructed within the CBD boundaries will be
assessed to fund their particular special benefits. These special benefit services will
include, but are not limited to: enhanced beautification in blocks with a high density of
condos, public space development, implementation of pet related services and
administrative costs. These assessments will be allocated based on the percentage that
the costs for the enhances residential improvements form of the overall budget."
5
4. Program Management and Corporate Operations: These services equal $48,000 or 21%
of the first year annual budget of the new district._
5. Contingency/Reserve: This contingency anticipates a "historic" non-payment rate
percentage of 2 to 4%, and any City or County collection fees. This fund equals $9,385 or
4% of the first-year annual budget of the new district.
Category of Services Annual Allocation - % of budget
Sidewalk Operations (curb to property line services) $120,000 — 51%
District Identity — District Promotion $ 55,000 — 24%
Program Management/Corporate operations $ 48,000 — 21%
Contingency $ 9,385.00 — 4%
Total Annual Revenue $ 232,385.00
Method of Financin
The financing of the Downtown Downey CBD is based upon the levy of special assessments
upon real property that receive special benefits from the improvements and activities. See
Section 4 for assessment methodology and compliance with Proposition 218. There will be
four factors used in the determination of proportional benefit to the parcels in the CBD.
Those four factors are:
• Linear frontage
• Lot size or the footprint of the parcel
• Building square footage (excluding parking structures built within the building that
predominantly serve the tenants of the building and are not open to the public) and
• Future residential condos that will be constructed within the District.
The following data constitutes the basis for the property assessments that will fund special
benefit services in the proposed CBD:
Building square footage: 988,676 sq. feet
Lot size: 1,977,093 square feet
Linear Frontage: 14,936 linear feet
0
Each property variable will fund a different"bucket of special benefit services" in the district.
Each variable, multiplied by the proposed annual cost yields the following:
Property Variable Annual Cost Total assessment by variable
Building square footage $0.050608 per square foot per $ 50,035.00
year
Lot square footage $0.030540 per square foot per $ 60,380.00
year
Linear frontage $8.166254 per linear foot $ 121,970.00
Residential condos $0.20 per square foot 0
Total Annual Revenue $ 232,385.00
Costs:
Annual assessments are based upon an allocation of program costs by assessable linear
frontage, assessable on all sides of the parcels that receive benefit; PLUS lot or parcel square
footage; PLUS assessable building square footage, and in the case of residential condos, by
building square footage.
Future residential condo owners will be assessed differently since they are, in essence, -
acquiring air rights with the purchase of their residential condos and linear frontage and lot
size will not be relevant to their parcels. This alternate assessment methodology is created to
respond to their special needs of homeowners within this growing Downtown district. All four
property variables will be used in the calculation of the annual assessment.
Residential Condos: There are currently not any documented residential condos within the
boundaries of the proposed Downtown Downey CBD. However, when
they are constructed, these future units will be assessed at the rate of
$0.20 per square foot for their verifiable building square footage per
parcel.
Benefit Zones:
State law and the State constitution, Article XIIID require that special assessments be levied
according to the special benefit each individual parcel receives. There are two proposed
benefit zones under this plan.
Benefit Zone 1: All commercial parcels, including City and non-profit owned parcels in the
proposed CBD;
Benefit Zone 2: Parcels owned by the First Baptist Church of Downey will be assessed for
linear frontage, since that is the special benefit service (Sidewalk operations) that _it.will
receive. Lot size and building square footage property assessment will not be paid by Benefit
7
Zone 2 parcels since those property assessments fund marketing and promotion, social media
and district identity, and administration and it has been determined that those parcels will not
derive benefit from these special benefit services.
Cap:
The CBD budget and assessments may be subject to annual increases not to exceed 5% (five per
cent) per year. Increases will be determined by the Owners' Association/District Management
Corporation and will vary between 0% and 5% annually. Changes in land use, development of
empty parcels, conversion of tax exempt to profitable land uses, demolition of existing buildings,
and creation of new parcels through new building or residential condo development may alter
the budget from year to year based upon the changes in the building square footage of an
individual parcels. Since linear frontage and lot size normally are not altered in the
redevelopment of a site, the only changes realized in the CBD will be through the building square
footage. In addition, changes in the budget may occur due to the conversion of single parcels to
multiple parcels due to the construction of residential or commercial condos.
Bonds:
The District will not issue any bonds related to any program:
District Formation:
Under the local enabling ordinance, District formation and modification requires a submission of
petitions from property owners representing more than 30% of the total assessments.
Once the City verifies the petitions totaling a minimum of 30% of $ 232,385.00 (or $ 69,716.00)
in assessment contribution to the District, the Downey City Council may adopt a Resolution of
Intention to mail out ballots to all affected property owners. The City will then hold a public
hearing and tabulate the mail ballots. The Downtown Downey CBD will be formed if the weighted
majority of all returned mail ballots support the District formation and if the City Council adopts
a resolution of formation to levy the assessments on the benefiting parcels. At this point, the
date for that public hearing has not been scheduled.
Disestablishment:.
Streets and Highways Code Section 36670 provides for the disestablishment of a District.
Provisions for annual disestablishment of the CBD are provided for in the local Downey CBD
ordinance. Property owners dissatisfied with the results, management or quality of the services
may petition the City Council to disestablish the CBD, in the same method in which they
petitioned the City Council to establish the District.
Section 36670 states:
(b) The city council shall adopt a resolution of intention to disestablish the district prior to the
public hearing required by this section. The resolution shall state the reason for the
disestablishment, shall state the time and place of the public hearing, and shall contain a
proposal to dispose of any assets acquired with the revenues of the assessments levied within
8
the property and business improvement district. The notice of the hearing on
disestablishment required by this section shall be given by mail to the property owner of each
parcel or to the owner of each business subject to assessment in the district, as appropriate.
The city shall conduct the public hearing not less than 30 days after mailing the notice to the
property or business owners. The public hearing shall be held not more than 60 days after the
adoption of the resolution of intention."
Unexpended surplus funds will be returned to property owners based upon each parcel's
percentage contribution to the previous fiscal year's assessments if the District isnot renewed.
Time and Manner for Collectin Assessments:
The Downtown Downey CBD assessments will appear as a separate line item on annual property
tax bills prepared by the County of Los Angeles. The assessments shall be collected at the same
time and in the same manner as for the ad valorem property tax paid to the County of Los
Angeles. These assessments shall provide for the same lien priority and penalties for delinquent
payment as is provided for the ad valorem property tax.
Any delinquent assessments owed for the first year will be added to the property tax roll for the
following year together with any applicable interest and penalties. The "property owner" means
any person shown as the owner/taxpayer on the last equalized assessment roll or otherwise
known to be the owner/taxpayer by the City.
Government Assessments:
The Downtown Downey CBD Management Plan assumes that the City of Downey and the
Downey Community Development Commission Housing Successor Agency will pay assessments
for the public property they own within the boundaries of the District. Article XIII D, Section 4 of
the California Constitution was added in November of 1996 to provide that public agencies such
as the City and Downey Community Development Commission Housing Successor Agency shall
not be exempt from the assessments.
Parcels owned by the City of Downey and identified below shall receive benefits, commensurate
with the assessments paid into the Downtown Downey CBD. These publicly owned parcels are
presumed to benefit equally to the privately -owned parcels for all of the special benefit services
outlined in this Management District Plan.
Duration:
The Downtown Downey CBD shall have a fifteen -year term which shall commence on December
1St, 2018 and expire on November 30th, 2033, with operations winding down by November 30tn,
2033, unless the district is renewed by the CBD property owners through a new assessment ballot
proceeding.
0
Governance:
Pursuant to the City of Downey Community Benefit District Ordinance and Section 36650 of the
California Streets and Highway Code, a District Management Corporation or Owners' Association,
will review District budgets and policies annually within the limitations of the Management
District Plan. The Management Corporation will file Annual Reports with the City of Downey
(City) and will oversee the day-to-day implementation of services as defined in the Management
District Plan. Section 36612 states:
The "Owners' association" means a private nonprofit entity that is under contract with a
city to administer or implement activities and improvements specified in the management
district plan. An owners' association may be an existing nonprofit entity or a newly formed
nonprofit entity. An owners' association is a private entity and may not be considered a
public entity for any purpose, nor may its board members or staff be considered to be
public officials for any purpose."
10
Boundaries. The following text will define the boundaries of the Downtown Downey CBD.;
• Norther► boundrrr : Beginning at parcel 6254 016 912 (City Hall), head westward on 311
Street running in a line down the middle of the street including all of the southern parcels
until parcel 6254 018 024 at the northeast corner of the intersection of Yd Street and
Downey Avenue. Proceed northeasterly up Downey Avenue to include the parcels on
both sides of the street up to the south side of 4th Street. Proceed westward to New
Street, run southward to include the parcels fronting 3rd Street including parcels 6254 007
013, 6254 007 004, and parcel 6254 004 028 at the northwest corner of the intersection
of La Reina Avenue and 3rd Street.
• .Southern boundary: Beginning at parcel 6255002 023 at northwestern corner of the
intersection of Union Pacific Railroad Right -of -Way and Brookshire Avenue, proceed
westward including all of the parcels fronting on the north side of Burns Avenue including
parcel 6255 003900, (the City parking lot) at the intersection of La Reina Avenue and
Burns Avenue.
• Eastern boundqry. Beginning at parcel 6255 002 023 at the northwestern corner of the
intersection of Union Pacific Railroad Right -of -Way and Brookshire Avenue, proceed
northward including all of the parcels on the west side of Brookshire up to City Hall, parcel
number 6254 -16912.
Western boundary.: Beginning at the parcel 6255 003 900, (the City parking lot) at the
intersection of La Reina Avenue and Burns Avenue, proceed northward including the
parcels on both sides of the street fronting on La Reina Avenue up to the parcel 6254 004
028 at the northwestern corner of the intersection of La Reina Avenue and 3rd Street. The
western boundary will also include parcel 6254 002 023 which is found to the west of
parcel 6254 002 024.
11
m
IN
Process to Establish the Improvement and Activi!y Ilan Outreach Efforts:
Since the Fall of 2014, business and property owners in Downtown Downey have met first in
small settings, and then in a larger Steering Committee format, to discuss the advantages of
creating this Downtown Downey special benefits district. An initial survey was sent to every
property owner in the proposed CBD area in the Fall of 2014 to ascertain their level of conceptual
support for the establishment of this assessment district and obtain information regarding the
type of enhanced services they were interested in receiving. The survey information was
instrumental in determining the services to be delivered by the CBD. A follow up survey was sent
out in early 2015 to ensure that every property owner had an opportunity to respond.
Survey results
Special benefit services are those that are over and above the services currently being provided
by the City general fund. The results of that survey prompted the Steering Committee to assemble
a presentation for the property owners.
Since all properties would be included in the proposed Downtown Downey CBD, the basis for
support was reviewed by parcel linear frontage, lot square footage, and building square
footage. These figures are used because they are what each property has in common. In
California, one cannot use assessed valuation to determine support since assessed valuation of a
property is: 1) based upon when someone bought the property, not upon its actual market value,
and 2) not relevant to public parcels, which don't have an assessed valuation per se, but which
will also be assessed due to the services they would be receiving.
When combined with the City level of support (the City properties will also be required to pay
into the new CBD), the following property variables demonstrated conceptual support for the
continued investigation of the new CBD.
These responses demonstrated to the CBD Steering Committee that the majority of the
responding property owners thought there was merit in the CBD concept. This proposed
Downtown Downey Community Benefit District can only be formed by a mail -in vote of the
majority of weighted property owners within the proposed district boundaries.
A summary of the survey results and the resulting CBD plan, beginning with the services it
would fund, are as follows:
Priority Special, Benefit Services — According to the Survey
The survey asked a variety of specific questions regarding property owner -funding of services
over and above what the City and County were currently providing. The priority services
outlined by the responding property owners prioritized the following:
14
• By a two to one margin, property owner respondents stated that they support services
to deal with homelessness and panhandling issues.
• By a two to one margin, property owners stated they supported property owner funded
regular sidewalk and gutter sweeping in Downtown.
• By a two to one margin, property owner respondents stated that they support services
related to planting, trimming and maintenance of trees, plants, flowers and other
landscaping in Downtown Downey.
• By almost a two to one margin, property owner respondents stated that they support
services for public relations and social media to support the branding of Downtown.
The CBD Steering Committee began reviewing the results of the survey, and possible benefit
zones within a boundaried area.
Under the state constitution, Proposition 218 defines the purpose of property assessments, and
unlike special and general taxes, there must be a relationship between how much a property
owner pays into a property assessment district and what type of benefit they receive. Property
owners must receive more benefits due to the size of their linear frontage, lot square footage, or
buildings square footage. All parcels within the boundaries of the Downtown Downey CBD will
be required to pay into the assessment district (no properties will be exempt). Costs are
determined by the type and frequency of services.
In the Fall of 2014, Aldo Schindler, the Director of Community Development of the City of Downey
and Marco Li Mandri of New City America held a series of one on one meetings with property
owners throughout the proposed district to explain the upcoming survey of property owners.
Once that rounds of 8 to 10 meetings were held, the survey was distributed._
In early 2015, we were still collecting surveys and after another mailing of the survey to maximize
the response, we set the first meeting of the CBD Steering Committee. Numerous public
meetings have been held with the Downtown Downey CBD Steering Committee. Public meeting
dates were held on the following dates:
_April 28th, 2015
June 2nd
• July 21St
• August 4th
• January 13th, 2016
Marco Li Mandri of New City America continued to meet with Aldo Schindler the Director of
Community Development, the City Council and City Council sub -committees, the City Attorney,
City staff, and many property owners individually throughout this process.
15
Explanation of Special Benefit Services:
All of the improvements and activities detailed below are provided only to properties defined as
being within the boundaries of the Downtown Downey CBD, as the improvements and activities
will provide special benefit to the owners of those properties. No improvements or activities will
be provided to properties outside the Downtown Downey CBD boundaries.
The City will continue to provide general benefit services from the general fund to the Downtown
which will include public safety, street tree trimming, street sweeping, trash collection of public
refuse containers,_ etc. The frequency of these general benefits may change from year to year
and time to time based upon budget constraints. However, City general benefits will not be
withdrawn from the Downtown Downey CBD unless they are withdrawn by an equal amount City
wide. The CBD funded special benefits will not replace City funded general benefits, but rather
will provide special benefits to parcel owners over and above the general benefits provided by
the City of Downey.
All services funded by the assessments outlined in the Management District Plan are intended to
directly benefit the properties within this area to support increased commerce, business
attraction and retention, retain and increase commercial property rentals, attract new residential
developments, enhance safety and cleanliness in the CBD, improve district identity, and
eventually fund specialized beautification and enhanced services for the condo residential unit
parcels within the District.
The total improvement and activity plan budget for FY 2018-19 is projected to be $ 232,385.00.
The costs of providing each of the budget components was developed from actual experience
obtained in reviewing these same services in similar districts throughout the State of California.
Based upon the survey of property owners, as well as the discussions held in the CBD Steering
Committees held since April 2015, the Committee has prioritized the following categories of
special benefit services for the new CBD. The categories of special benefit services set forth the
intent of the budget category, but also gives the new District Management Corporation the
flexibility to allocate the services based upon the changing needs of the District from year-to-
year within each budgeted category.
The specific category of services are considered to be "buckets" of special benefit services and
the points listed under each bucket of services may be funded on a case by case basis or annual
basis based upon the decision of the Owners Association or District Management Corporation.
Improvements Activities and Services of the Downtown Downev CBD Plan;
There will initially be four basic categories of special benefit services that will be funded within
the Downtown Downey CBD. All of these services are designed to confer a special benefit to the
individual parcels within the Downtown Downey CBD over and above the general benefits they
are currently receiving. The categories of special benefits are as follows:
16
Table
First Year Downtown Downey CBD Special Benefit Service Budget
Category of Services Annual Allocation - % of budget
Sidewalk Operations (curb to property line services) $120,000 — 51%
District Identity - District Promotion $ 55,000 — 24%
Program Management/Corporate operations $ 48,000 — 21%
Contingency $ 9,385.00 — 4%
Total Annual Revenue $ 232,385.00
The following buckets or categories of special benefit services shall only be provided to parcels
within the District.
SIDEWA QkRAt66j& BEAUTIFICATION, ORDER.- $120,000 51%
Examples of these special benefit services and costs may include, but are not limited to
❑
Regular sidewalk and gutter sweeping
❑
Regular sidewalk steam cleaning
❑
Beautification of the district
❑
Enhanced trash emptying (over and above city services)
❑
Timely graffiti removal, within 24 hours as necessary
❑
Tree and vegetation maintenance (over and above city services)
❑
Special events maintenance and set up
❑
Maintenance of existing and new public spaces
❑
Hanging plants, planting flowers throughout the district
❑
Possible private security and/or camera system
❑
Administration of the sidewalk operations services or staff
DISTRICT IDENTITY AND STR TS APE IMPROVEMENTS $55,000 24%
Examples of these special benefit services and costs may include, but are not limited to.,
❑
Web site development and updating
❑
App development
❑
Management and coordination of special events
❑
Social media
❑
Public relations firm
❑
Holiday and seasonal decorations
❑
Branding of Downtown Downey so a positive image is built
❑
Banner programs
❑
Public art displays
❑
Downtown landmark sign and maintenance
❑
Logo development
17
❑ Public space design and improvements
❑ Administration of District Identity Services
PROGRAM MANAGEMENT AND CORPORATE OPERATIONS: , $48,000 24%
Examples of these special benefit services and costs may include, but are not limited to:
❑ Staff and administrative costs
❑ Director's and Officers Insurance
❑ Office related expenses
❑ Rent
❑ Financial reporting and accounting
❑ Legal work
CONTINGENCY/CITY AND COUNTY FEEsIRESERVE:$ 9,385 4%
Examples of these special benefit services and costs include, but are not limited to:
❑ Delinquencies
❑ City Fees
❑ County fees
❑ Reserves
ENHANCED RESIDENTIAL CONDO UNIT IMPROVEMENTS:' (currently don't exist) $ 0
Examples of these special benefit services and costs may include, but are not limited to.,
Future residential condos built within the boundaries of the Downtown Downey CBD will be
assessed separately due to their unique parcel status and special benefit needs in the district.
Residential condos buildings or Town Homes will have the following special benefit services
conferred on the frontage their parcels. These services in the future will include, but will not be
limited to:
❑ Installation,- stocking and upkeep of pet waste distribution stations on the
frontages adjacent to the high concentrations of residential condo individually
assessed parcels;
❑ Enhancement and beautification of sidewalks on the frontages adjacent to the
high concentrations of residential individually assessed parcels;
Installation of hanging plants, and enhanced upkeep in the sidewalks surrounding
these frontages adjacent to these residential condos;
Li Other services requested by the residents that confer special benefit to the areas
directly adjacent to the parcels with high concentrations of residential condos;
❑ Proportional_ share of the Administrative and Contingency costs to cover the
oversight of the Enhanced beautification special benefit services.
Fifteen -Year O +eratln Bud et
A projected fifteen -year operating budget for the Downtown Downey CBD is provided below.
The projections are based upon the following assumptions:
18
• Assessments will be subject to annual increases not to exceed 5% per year.
• Increases will be determined by the District Management Corporation and in no case shall
annual increases exceed 5% per year.
• Changes in land use, demolition of existing buildings, and new development may modify
both the amount of the maximum assessment and the CBD's budget projections.
The budget for specific programs may be reallocated within the categories by up to 10% of each
budget category. The Management Corporation Board may alter the budget based upon service
needs and such changes shall be included in the Annual report and submitted to the Downey City
Council for review and approval.
Table 3 - B
Downtown Downey CBD
Sidewalk Operations,
Beautification and $120,000.00 $126,000.00 $1132,30000 $138,915.00 $145,860.75 $153,153.79 $160,811.48
Order
District Identity $55,000.00 $57,750.00 $60,637.50 $63,669.38 $66,852.84 $70,195,49 $73,705.26
Prop, MgmVCorp. $48.000.00 $50,400.00 $52,920,00 $55,566.00 $58,344.30 $61,261.52 $64,324.59
Operations
Total $232,385.00 $244,004.25 $256,204.46 $269,014.69 $282,465.42 $296,588.69 $311,418.13
FY8 FY9 FYIO FYI 1 FY12 FY13 FY14 FY15
Sidewalk Operations,
Beautification and $168,852.05 $177,294,65 $186,159.39 $195,467.36 $205,240,72 $215,502,76 $226,277,90 $226,816.65
Order
Prop. MgmUCorp.
Operations $67,540.82 $70,917,86 $74,463,75 $78,186.94 $82,096,29 $86,201,10 $90,511,16 $90,726.66
Total $326,989.03 $343,338.48 $360,505.41 $378,530.68 $397,457.21 $417,330.07 $438,196.58 $439,239.90
Notes:
• Assumes a 5% yearly increase on all budget items.
• Any accrued interest or delinquent payments will be expended in the above categories.
• Residential condo assessments are zero for the first year, and to be determined when the first
residential condos are actually built in Downtown
W
Section f
Assessment MethodologI
The Downtown Downey CBD is a property -based special benefit assessment district being
established pursuant to the Downey Community Benefit District enabling ordinance adopted in
September 2015 by the Downey City Council. Due to the special benefit nature of assessments
levied within a CBD, program costs are to be distributed amongst all identified specially benefited
properties based on the proportional amount of special program benefit each property is
expected to derive from the assessments collected.
The ordinance refers to the requirement that relative "benefit" received from CBD funded
programs and activities be used to determine the amount of assessment paid. Only those
properties expected to derive special benefits from CBD funded programs and activities may be
assessed and only in an amount proportional to the relative special benefits expected to be
received.
General vs. Special Benefits:
As provided by Proposition 218, assessment district programs and activities confer a combination
of general and special benefits to properties, but the only program benefits that can be assessed
are those that provide special benefit to the assessed properties. Special Benefit" as defined by
the California State Constitution means"a particular and distinct benefit over and above general
benefits conferred on real property located in the District or to the public at large For the
purposes of this analysis, "General Benefits" are benefits from the provided within Downtown
Downey that are not special in nature, are not "particular and distinct" and are not over and
above the benefits that other city parcels receive.
General benefits are not restricted to benefits conferred only on persons and property outside
the assessment district, but can include benefits both conferred on real property located in the
district or to the public at large. "At large" means not limited to any particular person — and
means all members of the public = including those who live, work, and shop within the district -
and not simply transient visitors.
The property uses within the boundaries of the proposed Downtown Downey CBD which will
receive special benefits from CBD funded programs and services, are currently a mix of retail,
service, office, religious, residential and parking. Services, programs and improvements provided
by the Downtown Downey CBD are primarily designed to provide special benefits to identified
parcels within the boundaries of the District.
Parcels that receive the special benefit programs, services and improvements outlined in this
Management District Plan will attract more customers, employees, tenants and investors as a
result of these programs, services and improvements, thereby increasing business volumes, sales
transactions, occupancies, and rental income, and for future residents, make this Downtown
20
more walkable, attractive and livable. These benefits are particular and distinct in that they are
not provided to non -assessed parcels within or outside of the District. Because these programs,
services and improvements will only be provided to each individual assessed parcel within the
Downtown Downey CBD boundaries, these programs, services and improvements will constitute
"special benefits".
Existing City of Downey services will not be replaced or duplicated by Downtown Downey CBD
funded services. The very nature of the purpose of this District is to fund supplemental programs,
improvements and services within the Downtown boundaries above and beyond what is being
currently funded either via normal tax supported methods or other funding sources. All benefits
derived from the assessments to be levied on parcels within the Downtown CBD are for services,
programs and improvements directly benefiting each individual parcel within this area and
support increased cleanliness, commerce, business attraction and retention, increased
commercial property rental income and improved District identity. No CBD funded services,
activities or programs will be provided beyond the CBD boundaries.
While every attempt is made to provide CBD services and programs to confer benefits only to
those identified assessed parcels within the district, the California State Constitution was
amended via Proposition 218 to provide that general benefits exist, either by design or
unintentionally, in all assessment districts and that a portion of the program costs must be
considered attributable to general benefits and assigned a value. General benefits cannot be
funded by assessment revenues. General benefits might be conferred on parcels within the
District, or "spillover" onto parcels surrounding the District, or to the public at large who might
be passing through the District with no intention of transacting business or residing within the
District or interest in the District itself. Empirical assessment engineering analysis throughout
California has found that general benefits within a given similar special benefits districts tend to
range from 1-5% of the total costs.
There are three methods that have been used by the Downtown Downey CBD Assessment
Engineer for determining general and special benefit values within assessment districts:
(1) The parcel by parcel allocation method
(2) The program/activity line item allocation method, and
(3) The composite district overlay determinant method.
A majority of CRDs in California for which our Assessment Engineer has provided assessment
engineering services since the enactment of Proposition 218, have used Method #3, the
composite district overlay determinant method which will be used for this CBD. This method of
computing the value of general benefit involves a composite of three distinct types of general
benefit — general benefit to assessed parcels within the District, general benefit to the public at
large within the District and general benefit to parcels outside the District.
21
Downtown Downey CBD Programs and, Improvements:
The total special and general benefit program activitiesandbudget allocations that will be
provided to each individual parcel assessed in the proposed Downtown Downey CBD are shown
in the chart below:
Total Year 1- 2018'- Special + General Benefit Costs
All program costs associated with general benefits will be derived from sources or credits other
than CBD assessments. Sample "other" revenue_ sources can be derived from special events,
grants, volunteer hours and must simply equal a total of $4,740 per year which would equal the
general benefit cost of 2% of the computed total CBD cost of $232,385.00 from the Table above.
Here, program costs are spread among property variables that are common to each parcel
include linear frontage, lot or parcel size and building square footage, and residential condo
parcels. _Assessed valuation cannot be used as the basis for revenue generation in the state of
California since Proposition 13 sets the assessed valuation at the time of purchase of the parcel,
therefore adjacent parcels may be similar in size, but have different assessed valuations. We
must therefore spread the assessments among the consistent factors of each parcel, based upon
2018 data. The following data represents the foundation of the assessments that will generate
the revenue to fund the Downtown Downey CBD:
All program costs associated with general benefits will be derived from sources or credits other
than CBD assessments. Sample "other" revenue sources can be derived from special events,
grants, farmers' markets, donations, volunteer hours and must simply equal a total of $ 4,740
per year which would equal the general benefit cost of 2% of the computed total CBD cost of
$ 237,125 from the Table above. Here, program costs spreading variables include linear frontage,
lot or parcel size and building square footage, and residential condo parcels. The following data
represents the foundation of the assessments that will generate the revenue to fund the
Downtown Downey CBD: (verified as of February 151, 2018);
Benefit Zones:
State law and the State constitution, Article MID require that special assessments be levied
according to the special benefit each individual parcel receives. There are two benefit zones in
the proposed Downtown Downey CBD.
22
YR 1- 2018
YR 1- 2018
YR 1- 2018
% of Total
Assessment
iNon-Assessment
Total Costs
Service
Costs
Costs
Sidewalk Operations
$120,000
$2,448
$122,448
51%
District Identity
$55,000
$ 1,122
$56,122
24%
Program Management
$48,000
$ 979
$48,979
21%
Contingency/Reserve
$9,385
$191
$9,576
4%
Total
$232,385.00
$ 4740
$237,125.00
100%
All program costs associated with general benefits will be derived from sources or credits other
than CBD assessments. Sample "other" revenue_ sources can be derived from special events,
grants, volunteer hours and must simply equal a total of $4,740 per year which would equal the
general benefit cost of 2% of the computed total CBD cost of $232,385.00 from the Table above.
Here, program costs are spread among property variables that are common to each parcel
include linear frontage, lot or parcel size and building square footage, and residential condo
parcels. _Assessed valuation cannot be used as the basis for revenue generation in the state of
California since Proposition 13 sets the assessed valuation at the time of purchase of the parcel,
therefore adjacent parcels may be similar in size, but have different assessed valuations. We
must therefore spread the assessments among the consistent factors of each parcel, based upon
2018 data. The following data represents the foundation of the assessments that will generate
the revenue to fund the Downtown Downey CBD:
All program costs associated with general benefits will be derived from sources or credits other
than CBD assessments. Sample "other" revenue sources can be derived from special events,
grants, farmers' markets, donations, volunteer hours and must simply equal a total of $ 4,740
per year which would equal the general benefit cost of 2% of the computed total CBD cost of
$ 237,125 from the Table above. Here, program costs spreading variables include linear frontage,
lot or parcel size and building square footage, and residential condo parcels. The following data
represents the foundation of the assessments that will generate the revenue to fund the
Downtown Downey CBD: (verified as of February 151, 2018);
Benefit Zones:
State law and the State constitution, Article MID require that special assessments be levied
according to the special benefit each individual parcel receives. There are two benefit zones in
the proposed Downtown Downey CBD.
22
Assessable_Data in the CBD: -
Benefit Zone 1
BD:BenefitZonel
Building Square Lot Size (square feet)
Footage (square
feet)
988,676 sq. ft. 1,977,093
Benefit Zone 2:
Building S q u i
0
Linear Frontage
I J
1 14.936 1
Condo Sf
0
Lot Size (square feet) Linear Frontage
0 631
Total Assessment District Property Variables:
Building Square Footage Lot Size (squc
988,676 1,977,01
Amount of revenue generated by each benefit zone:
Linear �
14
Assessment District Revenue Generation in Fiscal Year 2017 from each assessable property
variable:
Linear Frontage
Building Square Footage:
Lot Square Footage:
Residential Condos Unit Square
Footage:
$ 121,970.00 52%
$50,035.00 23%
$60,380.00 25%
LO 0%
Total: $ 232,385.00 100%
23
FirstYearAnnual Costs:
• I� r I� I r r r r i� ��- � i� � r z
Property Variable First Year Annual Costs
Linear Frontage $8.166254 per linear foot/year
Building Square Footage $ 0.050608 per square foot/year
Lot Size $ 0.030540 per square foot/year
Residential Condominiums $ 0.20 per square foot
Proportional Allocation of Assessments to Benefiting Property Owners
Generation of assessments which fund categories of special benefit services.
Funded by Property Variable
Approximate Amount First
Program
Assessment
Year Budget - %
Sidewalk Operations,
Funded by approximately 100% of
$ 120,000 — 51%
Beautification and Order
the linear frontage assessments
(the Board decides how this
sidewalk and gutter cleaning,
Residential Condo assessments will
amount will be allocated month by
landscaping, steam cleaning,
pay forservices in the some
month, prioritizing services and
public space maintenance
proportion as allocated in the budget
proportionally allocating per
benefit zones based upon
payments made)
District Identity and
Funded by approximately 100% of
Streetscape Improvements
the building square footage and
some from the lot size assessments
(Marketing, promotions,
Residential Condo assessments will
$ 55,000 - 24%
website, social media, events,
pay for services in the same
business attraction, public
,proportion as allocated in the budget
space design)
Program Management/
Funded by Lot Size assessments
Corporate Operations
Residential Condo assessments will
Administration, outreach to
pay for services in the some
$ 48,000 - 21 %
public agencies, community
proportion as allocated in the budget
relations, office rent, supplies,
is
insurance, legal
Funded by Lot size assessments
Contingency/Reserve
Residential Condo assessments will
$ 9,385 4
pay for services in the same
proportion as allocated in the budget
Total for all Special Benefit
$ 232,385.00
Services
24
Linear Frontage Defined.:
Individual parcels will be assessed for all sides of each parcel fronting on a public street. Alley
frontage is not assessed. Each side of the parcel (excluding alley areas) will receive Sidewalk
Operations special benefit services based upon the frequency of services articulated in this plan,
linear front footage data was obtained from the County Assessor's parcel maps.
Building Sguare Footage Defined -
Building square footage is defined as gross building square footage throughout the Downtown
DowneyCBD. The percentage of building square footage that is dedicated to private or internal
tenant parking needs may be deducted from the gross building square footage. Only parking
structures that are open to the public and charge fees to the general public on a regular basis will
have their building square footage assessed as any other commercial building. Apartment
buildings within the boundaries of the Downtown Downey CBD will be assessed as commercial
buildings since there is a landlord/tenant relationship in that property.
Lot Souare Footage Defined:
Lot square footage is defined as the total amount of area within the borders of the parcel. The
lot square footage of a parcel has been verified by the County Assessor's parcel maps.
Commercial Condominium Parcels Defined:
Ground floor commercial condominiums will be treated as independent "mini" commercial
buildings and assessed based on their actual building square footage, the footprint of land they
cover or lot size of the commercial condo, and the amount of direct primary street frontage on
the exterior of the building. Ground floor commercial condominiums will pay 100% of the special
benefits for the assessment, based upon which benefit zone they are within.
Future Residential Condo Unit Parcels lDefined:
Future residential condo units building square footage is defined as the livable building square
footage within the walls of the condo residential unit parcel. They are included in a special
category to designate their unique special benefits relative to the other commercial parcels
within the Downtown Downey CBD. Unlike the other commercial parcels inthe district, including
commercially operated apartment buildings, residential condo parcels are assessed for building
square footage only, and are not assessed for linear frontage and lot square footage.
Future residential condo individually assessed parcels are assessed as separate category. These
future residential condo individual parcels will be assessed for their building square footage only
at the rate of $0.20 per square foot per year, commencing the first year of their completion. The
rationale for assessing future residential condos only for the building square footage rate is
provided below.
Futureresidential condo individually assessed parcels are assessed differently than multi -unit,
for -rent apartment buildings, due to the frequency of special benefit services required by each
parcel as described below. The multi -unit apartment buildings are commercial properties in
which the tenant and landlord have an economic relationship as opposed to residential condo
25
buildings where individual property owners own separate "air space parcels" on a single floor.
Future residential apartment buildings can be bought or sold just as like commercial buildings
whereas residential condo individual units are separately owned and must be individually bought
and sold.
Distinctions between residential apartment buildings with tenants and residential condominium
building with individual parcel owners are as follows:
L The Davis Sterling Act establishes rules and regulations for residential condo owners
based upon "separate interests" (i.e. ownership rights), as opposed to renters who
only have a possessory interest.
2. Generally, residential condo unit owners demonstrate greater care for their property
and concerns about quality of life issues due to their investment in real estate.
3. Residential owners and have the right to vote in a Proposition 218 hearing, tenants
do not have that right.
4. Residential condo owners are required to contribute to a legally established
Homeowners Associations to oversee building maintenance, tenants are not.
5. Residential tenants may have their dwelling unit sold or have their rent raised
arbitrarily due the lack of ownership of their residential unit.
The assessment methodology has been written to confer special benefits to future residential
condo individual assessed parcels since future residential condo owners have unique investment
backed expectations about the care and maintenance of the building and its surroundings
compared to the interest of residential tenants who have a possessory not an ownership interest.
The future residential condos' specialassessmentmethodology ensures that a fund will be
established to maintain high levels of special benefit services that apply directly and proportional
to the blocks that demand virtually seven days per week, 365 days per year special benefits.
Cern tions.
No benefitting parcels, regardless of taxable or tax-exempt property tax status, will be exempt
from the assessments funding the special benefit services of the Downtown Downey CBD. Special
benefit services will not be provided to any parcels outside of the boundaries of the district.
Any current single family residential land uses, in the form of single family homes on independent
parcels within the boundaries of the CBD are included in the District, however will be assessed
only for the services they receive on their frontage or until such time that the single family land
uses are converted to multi -family or commercial/retail uses.
_Calculation of Assessments:
The proportionate special benefit derived by each identified parcel shall be determined in
relationship to the entirety of the improvement or the maintenance and operation expenses of
an improvement or for the cost of property service being provided. Per California Constitutional
Amendment Article Xlll D, Section 2(i), "Special Benefit", means a particular and distinct benefit
over and above general benefits conferred on a real property located in the district or to the
26
public at large. No assessment will be imposed on any parcel that exceeds the reasonable cost
of the proportional special benefits conferred upon that parcel Only special benefits are
assessable and these benefits must be separated from any general benefits. Properties are
assessed as defined on the County Assessor's most current parcel maps. The preceding
methodology is applied to the database of parcels within the District. The process for compiling
the property database includes the following steps:
• A report was generated from data obtained from the Los Angeles County Tax Assessors
office.
• A list of properties to be included within the CBD is provided in Section 7.
Parcel Assessments
The annual assessment method to calculate all parcels and ground floor commercial
condominiums for Benefit Zone 1 will be:
Total Street Frontage X $ 8.166254 per foot
Total Lot Square Footage $0.030540 per square foot
Total Building Square footage X $0.050608 per square foot
TOTAL PARCEL ASSESSMENT
The annual assessment method to calculate all parcels and ground floor commercial
condominiums for Benefit Zone 2 will be:
Total Street Frontage X $ 8.166254 per foot
Total Lot Square Footage X $0.00 per square foot
Total Building Square footage X $0.00 per square foot
TOTAL PARCEL ASSESSMENT
Residential Condo Assessment:
The annual assessment method for a residential condo once they are built, regardless of Benefit
Zone will be:
Total Residential Unit Building Square footage X $0.20 per Square Foot
TOTAL RESIDENTIAL CONDO UNIT ASSESSMENT
27
Future Development:
As a result of continued new development, the Downtown Downey CBD will experience the
addition or subtraction of assessable commercial buildings or the conversion of empty parcels
into new commercial and residential or buildings and units. The Management District Plan
assessment methodology will reflect any and all land use changes within the term of the District
with annual adjustments being submitted to the City, as these assessment calculation and
property variable alterations occur.
Maximum Assessment:
Assessments may be subject to annual increases not to exceed 5% per year. Increases will be
determined by the CBD District Management Corporation and will vary between 0% and 5% in
any given year. The maximum the assessments can be increased is 5% over the previous fiscal
year's base assessments. Not implementing the increase for one year does not give the District
Management Corporation the authority to accumulate increases above 5% within any given fiscal
year. The following projections illustrate a'potential 5% annual increase.
Table,
Z . , ., r ..
Projected
FY6
FY7
FY8
FY9
FY10
Assessment
$
FY1
$
FY2
$
FY3
$
FY4
$
FY5
Linear Frontage
$
8.1663
$
8.5746
$
9.0033
$
9.4535
$
9.9261
Building Sq. Ft.
$
0.050608
$
0.053138
$
0.055795
$
0.058585
$
0.061514
Lot Square Ft.
$
0.030540
$
0.032067
$
0.033670
$
0.035354-
$
0.037122
Condo Sq. Ft.
$
0.20000
$
0.21000
$
0.22050
$
0.23153
$
0.24310
Projected
Assessment
FY6
FY7
FY8
FY9
FY10
Linear Frontage
$
10.4224
$
10.9436
$
11.4907
$
12.0653
$
12.6685
Building Sq. Ft.
$
0.064590
$
0.067820
$
0.071211.
$
0.074771
$
0.078510
Lot Square Ft.
$
0.038978
$
0.040927
$
0.042973
$
0.045121
$
0.047378
Condo Sq. Ft.
$
0.25526
$
0.26802
$
0.28142
$
0.29549
$
0.31027
Projected
Assessment
FY11
FY12
FY13
FY14
FY15
Linear Frontage
$
13.3020
$
13.9671
$
14.6654
$
15.3987
$
16.1686
Building Sq. Ft.
$
0.082435
$
0.086557
$
0.090885
$
0.095429
$
0.100200
Lot Square Ft.
$
0.049746
$
0.052234
$
0.054845
$
0.057588
$
0.060467
Condo Sq. Ft.
$
0.32578
$
0.34207
$
0.35917
$
0.37713
$
0.39599
28
Budget Adiastments.
Annual budget surpluses, if any, will be rolled into the following year's budget. Assessments will
be set annually, within the constraints of the Management District Plan's allowed increase or
through land use changes. Revenues from the delinquent accounts may be expended in the year
they are received. If the District is not renewed, any remaining funds will be returned to property
owners in the proportion by what each property owner paid.
1f after the initial term the District decides to renew and if there is money left over from the
previous term, the balance of remaining funds will be rolled over into the renewed district. These
"rolled over" funds may only be used within the boundaries of the original
district and cannot be expended for activities, services, or improvements in an area expanded
beyond theoriginalDistrict. However, the rolled over funds may be used to finish District
Management Corporation activities in the original district.
Time and Manner for Collecting Assessments:
In September 2018, the Downtown Downey CBD assessments will appear as a separate line item
on annual property tax bills prepared by the County of Los Angeles. The assessments shall be
collected at the same time and in the same manner as for the ad valorem property tax paid to
the County of Los Angeles. These assessments shall provide for the same lien priority and
penalties for delinquent payment as is provided for the ad valorem property tax.
Disestablishment:
California Streets and Highways Code Section 36670 provides for the disestablishment of a
District. Provisions for annual disestablishment of the CBD are provided for in Article 2, Chapter
14 of the local Downey CBD ordinance. Property owners dissatisfied with the results,
management or quality of the services may petition the City Council to disestablish the CBD, in
the same method in which they petitioned the City Council to establish the District.
Section 36670 states:
(b) The city council shall adopt resolution of intention to disestablish the district prior to the
public hearing required by this section. The resolution shall state the reason for the
disestablishment, shall state the time and place of the public hearing, and shall contain a
proposal to dispose of any assets acquired with the revenues of the assessments levied within
the property and business improvement district. The notice of the hearing on
disestablishment required by this section shall be given by mail to the property owner of each
parcel or to the owner of each business subject to assessment in the district, as appropriate.
The city shall conduct the public hearing not less than 30 days after mailing the notice to the
property or business owners. The public hearing shall be held not more than 60 days after the
adoption of the resolution of intention."
29
Unexpended surplus funds will be returned to property owners based upon each parcels
percentage contribution to the previous fiscal year's assessments if the District is not renewed.
Government Assessments:
The Downtown Downey CBD Management Plan assumes that the City of Downey will pay
assessments for the public property they own within the boundaries of the District as per the
methodology within this plan. Article Xlll D, Section 4 of the California Constitution was added in
November of 1996 to provide that the City is not exempt from such assessments.
Parcels owned by the City of Downey and the Downey Successor Agency shall receive benefits,
commensurate with the sidewalk operations administration and contingency assessments paid
into the Downtown Downey CBD. These publicly owned parcels are presumed to benefit equally
to the privately owned parcels for the special benefits provided.
Table 4-13
• -. �. �. i. it
6254 019 904 Community Dev
Commission of Downey
City 11022 Downey Ave $
TOTAL $
M
1,479.15
1,479.15
Percent
2.20%
1.34%
7.15%
0.19%
0.19%
0.04%
0.50%
2.85%
0.05%
1.35%
1.87%
2.75%
20.48%
0.64%
0.64%
Annual
APN
Legal Owner
Site #
Site Street
Assessment
6254008 901
City of Downey
8201
2nd St
$
5,104.96
6254009 900
City of Downey
11102
La Reina Ave
$
3,115.98
6254 016 912
City of Downey
11111
Brookshire Ave
$
16,610.87
6254 019 900
City of Downey
8321
2nd St
$
446.34
6254 019 901
City of Downey
8320
3rd St
$
446.31
6254 020 903
City of Downey
8313
Firestone Blvd
$
85.76
6254 020 913
City of Downey
8355
Firestone Blvd
$
1,165.79
6254 021 919
City of Downey
11131
Brookshire Ave
$
6,620.60
6254021 922
City of Downey
8435
Firestone Blvd
$
110.49
6254 021 923
City of Downey
8435
Firestone Blvd
$
3,145.08
6255 002 900
City of Downey
8356
Firestone Blvd
$
4,349.90
6255 003 900
City of Downey
*no Site
$
6,385.72
Address*
TOTAL
$
47,587.81
6254 019 904 Community Dev
Commission of Downey
City 11022 Downey Ave $
TOTAL $
M
1,479.15
1,479.15
Percent
2.20%
1.34%
7.15%
0.19%
0.19%
0.04%
0.50%
2.85%
0.05%
1.35%
1.87%
2.75%
20.48%
0.64%
0.64%
•Jill I
• • •
There are no specific rules and regulations prescribed for the proposed Downtown Downey
Community Benefit District Management Corporation except that it will adhere to the open
meeting and open records provisions of the Ralph M. Brown Act and will seek to be as open and
transparent to the CBD assessees and the public at large as is reasonably possible.
Pursuant to the City of Downey Community Benefit District Ordinance and Section 36650 of the
California Streets and Highway Code, a District Management Corporation or Owners' Association,
will review District budgets and policies annually within the limitations of the Management
District Plan. The Management Corporation will file Annual Reports with the City of Downey and
will oversee the day-to-day implementation of services as defined in the Management District
Plan. Section 36612 states:
"The "Owners' association" means a private nonprofit entity that is under contract with a
city to administer or implement activities and improvements specified in the management
district plan. An owners' association may an existing nonprofit entity or a newly formed
nonprofit entity. An owners' association is a private entity and may not be considered a
public entity for any purpose, nor may its board members or staff be considered to be
public officials for any purpose."
Bonds:
The District will not issue any bonds related to any program.
31
• 111111111 •
The Downtown Downey CBD is expected to be established and begin assessing benefiting parcels
as of fiscal year 2018-19. Due to the timing of revenue collection and need to establish the
owners' association or District Management Corporation, implementation of the Management
District Plan and the delivery of services is scheduled to commence in or around the beginning of
2019. Consistent with the local enabling ordinance, the Downtown_ Downey CBD will have a
fifteen -year term through November 30, 2033 with operations winding down by November 30,
2033 unless renewed by Downtown property owners.
32
APN
Annual
6254 020 002
$717.73
Assessment
6254 020 003
$951.15
6254 001014
$2,843.36
6254 020 014
$1,160.47
6254001017
$4,157.61
6254 020 017
$1,739.08
6254007 004
$2,676.44
6254 020 020
$836.77
6254 007 013
$3,881.48
6254 020 023
$1,623.42
6254 008005
$8,513.20
6254 020 024
$451.43
6254 008 901
$5,104.96
6254 020 025
$533.85
6254009 002
$2,017.23
6254 020 027
$8,257.93
6254 009012
$3,328.59
6254 020 028
$1,909.16
6254 009 013
$773.36
6254 020 029
$2,003.14
6254009 014
$1,341.13
6254 020 808
$2,158.96
6254 009 900
$3,115.98
6254 020 903
$85.76
6254010 033
$4,042.44
6254 020 913
$1,165.79
6254 010034
$2,905.38
6254 021 023
$2,059.57
6254010 035
$5,517.83
6254 021025
$1,072.70
6254 011 003
$2,010.28
6254 021030
$5,032.22
6254 011008
$69990
6254 021031
$16,260.95
6254 011 010
$809.41
6254 021919
$6,620.60
6254 011 012
$5,262.62
6254 021922
$110.49
6254 011 013
$2,435.07
6254 021923
$3,145.08
6254 011014
$1,188.60
6255 001012
$724.83
6254012 008
$596.39
6255 002 008
$2,204.26
6254 012 009
$623.02
6255 002 009
$3,231.19
6254 012 010
$2,137.21
6255 002 010
$977.35
6254 012 011
$3,523.33
6255 002 011
$1,115.64-
6254 012 013
$3,996.82
6255 002 012
$3,416.56
6254012 015
$1,559.58
6255 002 013
$4,067.92
6254 016 912
$16,610.87
6255 002 023
$2,775.94
6254 018 005
$538.97
6255 002 028
$4,739.43
6254 018 023
$969.39
6255 002 032
$5,888.06
6254 018 024
$3,682.74
6255 002 033
$2,255.23
6254 018 028
$863.92
6255 002 034
$2,831.13
6254 019 001
$2,445.95
6255 002 900
$4,349.90
6254 019 003
$758.41
6255 003 001
$3,114.60
6254014 004
$761.41
6255 003 005
$891.16
6254 019 027
$2,148.53
6255 003 006
$564.85
6254 019 028
$4,613.93
6255003 007
$1,153.76
6254 019 900
$446.34
6255 003 015
$2,659.70
6254 019 901
$446.31
6255 003 018
$8,010.09
6254 019 904
$1,479.15
6255 003 019
$2,185.15
6254 020001
$119.80
6255 003 900
$6,385.72
m
Prepared pursuant to the City of Downey
Community Benefit District Ordinance
Section 4 ,I, City Charter
CjAiifiod as WiniciUv-1 Code It-icle I CVrL-&er-+4
IN-
fts
Prepared by
Edward V Henning
California Registered Professional Engineer # 26549
July 12., 2018
To Whom It May Concern:
I hereby certify to the best of my professional knowledge and experience that each of the identified benefiting properties
located within the proposed Downtown Downey Community Benefit District ("Downtown Downey CBD") being formed
for a fifteen (15) year term will receive a special benefit over and above the benefits conferred on the public at large and
that the amount of the proposed assessment is proportional to, and no greater than the benefits conferred on each respective
property.
WORM11
T11
'M
2
EX 3.-31549'20,
CNIL
OF GA0�
RPE #26549
Edward V. Henning Julyl2th, 2018
(NOT VALID WITHOUT SIGNATURE AND CERTIFICATIONSEAL HERE)
#
Introduction
This report serves as the "detailed engineer's report" required by Section 4(b) of Article XIIID of the California
Constitution (Proposition 218) to support the benefit property assessments proposed to be levied within the proposed
Downtown Downey CBD in the City of Downey, California being formed for a fifteen (15) year term. The discussion and
analysis contained within this Report constitutes the required "nexus" of rationale between assessment amounts levied and
special benefits derived by properties within the Downtown Downey CBD.
The Downtown Downey CBD is a is a property -based benefit assessment district being formed for a fifteen (15) year term
pursuant to the City of Downey Community Benefit District Ordinance, Section 400 — Downey City Charter and codified
under Municipal Code Article 2, Chapter 14 (the "CBD Ordinance") which is based in part on Section 36600 et seq. of the
California Streets and Highways Code, also known as the Property and Business Improvement District Law of 1994 (the
"Act"). Due to the benefit assessment nature of assessments levied within a Property Business Improvement District
("PBID"), district program costs are to be distributed amongst all identified benefiting properties based on the
proportional amount of special program benefit each property is expected to derive from the assessments levied. Within
the Ordinance and Act, frequent references are made to the concept of relative "benefit" received from PBID programs
and activities versus amount of assessment levied. Only those properties expected to derive special benefits from PBID
ftinded programs and activities may be assessed and only in an amount proportional to the relative special benefits
expected to be received.
Supplemental Proposition,218 Procedureslid Reguirements
Proposition 218, approved by the voters of California in November of 1996, adds a supplemental array of procedures and
requirements to be carried out prior to levying a property -based assessment like the Downtown Downey CBD. These
requirements are in addition to requirements imposed by State and local assessment enabling laws. These requirements
were "chaptered" into law as Article XIII D of the California Constitution.
In
111�1 Will 11 IN !I � Willi Ili I 11111
Ejaqj!!g_L From Section 4(a): "Identify all parcels which will have a special benefit conferred upon them and upon
which an assessment will be imposed"
There are 82 parcels within the Downtown Downey CBD "identified" as assessable parcels with assessable property
F
characteristics that will derive special benefit from the proposed District programs and activities. The benefits are special
and unique only to the identified parcels within the District because programs and services (i.e. sidewalk
operationsibeautification; district identity; program management; and, contingency/reserve) will only be provided directly
for the benefit of the identified parcels. These identified benefiting parcels are located within the Downtown Downey
CBD perimeter boundary which is shown on the Boundary Map attached as Appendix 2 to this Report and are listed in
Appendix I to this Report - identified by assessor parcel number. Any future development and/or land subdivisions will
adhcre to the assessment rate structures described herein. There are two benefit zones within the Downtown Downey
CBD.
The Downtown Downey CBD is centered approximately at Firestone Boulevard and Downey Avenue, extending three
blocks north of Firestone Boulevard and one block south and extending 3 blocks west of Downey Avenue and two blocks
cast. The parcels selected to be included in the Downtown Downey CBD form a unique retail, commercial business and
government center core that has long been recognized and identified by the Downey community as a pedestrian friendly
retail and commercial neighborhood. Keeping the District clean and attractive will increase pedestrian traffic and
consumer activity and help create a strong symbiotic economic relationship between the Downtown Downey CBD and the
customers it serves. There are two benefit zones in the proposed Downtown Downey CBD. The Downtown Downey CBD
boundaries are shown on the District Map in Appendix 2 of this Report. The assessment rates vary based on the
proportionate levels of special benefit services to be provided for each parcel within the CBD.
Downtown Downel CBD Boundary:
The boundaries of the proposed Downtown Downey CBD are described as follows-,
• Northern boun rrr : Beginning at parcel 6254 016 912 (City Hall), head westward on 3rd Street running in
a line down the middle of the street including all of the southern parcels until parcel 6254 018 024 at the
northeast comer of the intersection of 3rd Street and Downey Avenue. Proceed northeasterly up Downey
Avenue to include the parcels on both sides of the street up to the south side of 4th Street. Proceed westward
to New Street, run southward to include the parcels fronting 3rd Street including parcels 6254 007013, 6254
007 004, and parcel 6254 004 028 at the northwest comer of the intersection of La Reina Avenue and 3rd
Street.
■ Southern botenddrv: Beginning at parcel 6255 002 023 at the northwestern comer of the intersection of
Bums Avenue and Brookshire Avenue, proceed westward including all of the parcels fronting on the north
side of Bums Avenue including parcel 6255 003 900, (the City parking lot) at the intersection of La Reina
0
* Beginning at parcel 6255 002 023 at the northwestern comer of the intersection 0
Bums Avenue and Brookshire Avenue, proceed northward including all of the parcels on the west side of
We ......... J Beginning at the parcel 6255 003 900, (the City parking lot) at the intersection of La
Reina Avenue and Bums Avenue, proceed northward including the parcels on both sides of the street
fronting on La Reina Avenue up to the parcel 6254 004 028 at the northwestern comer of the intersection of
La Reina Avenue and 3d Street. The western boundary will also include parcel 6254 002 023 which is
IMMINIMI,
All identified parcels within the above-mentioned boundaries shall be assessed to fund special benefit programs, services
�rin �rvims�_ �_nypmie�nts_will onlv be provided to these parcels inside
the District boundaries and none will be provided outside of the District boundaries. Each of the individual parcels
assessed shall receive special benefits from the proposed programs, services and improvements. All Downtown Downey
CBD funded programs, services and improvements are considered supplemental above normal base level services
T ritvided 4iv Vie Cili of Dowmo*-P�R�
Finding, 2.S From Section 4(a): "Separate general benefits (if any) from the special benefits conferred on pareel(s).
MEM
BENEFIT ANALYSIS
As stipulated by Proposition 218, assessment District programs and activities confer a combination of general and special
benefits to properties, but the only program benefits that can be assessed are those that provide special benefit to the
assessed properties. Special Benefit" as defined by the California State Constitution means "a particular and distinct
benefit over and above general benefits conferred on real property located in the District or to the public at large. For the
purposes of this analysis, "General Benefits" are benefits from the Downtown Downey CBD activities and improvements
that are not special in nature, are not "particular and distinct" and are not over and above the benefits that other parcels
receive. General benefits are not restricted to benefits conferred only on persons and property outside the assessment
district, but can include benefits both conferred on real property located in the district or to the public at large. "At large"
means not limited to any particular person- means all members of the public - including those who live, work, and shop
The property uses within the boundaries of the Downtown Downey CBD which will receive special bene its om
Downtown Downey CBD funded programs and services are currently a mix of retail, service, office, government,
religious, residential and parking. Services, programs and improvements provided by the Downtown Downey CBD are
primarily designed to provide special benefits to identified parcels within the boundaries of the District.
0
There are four basic categories of special benefit services that will be funded by the Downtown Downey CBD. All of
these services will confer a special benefit to the individual parcels within the CBD. The categories of special benefits are
Sidewalk Operations, Beautification and Order: This inclu•es a si•ewa an gutter c eaning services,
sidewalk steam cleaning services, graffiti removal, trash removal, as well as enhanced services to beautify the
I I I! I'; III � i I I III• I I loll irflign III 111111 liq! I I • 11 � I •lI
2. District identity. These services include the branding of the Downtown Downey area, marketing an
promotions, newsletter, public relations, media relations, social media, publicity, special events, website
development and maintenance, public space develop and holiday decorations. These services equal $ 55,000 or
3. Enhanced Residential Improvements- Though there are currently not any single residential units in the form of
residential condos within the boundaries of the district, future condo developments that will be constructed
within the CBD boundaries will be assessed to fund their particular special benefits. These special benefit
services will include, but are not limited to: enhanced beautification in blocks with a high density of condos,
public space development, implementation of pet related services and administrative costs. These assessments
will be allocated based on the percentage that the costs for the enhances residential improvements form of the
MEEMEM
jL Program Management and Corporate Qpqual $48,000 or 21% of the first year annual
SEMMEMESK-Im
5. Conti ngencylReserve. This contingency anticipates a "historic" non-payment rate percentage of 2 to 4%, and
any City or County collection fees. This fund equals $9,385 or 4% of the first year annual budget of the new
district.
Assessed parcels within the CBD are conferred proportionate and unique special benefits from CBD un e program
services and improvements. Commercial parcels that receive these programs, services and improvements attract mor
customers, employees, visitors, tenants and investors as a result of these programs, services and improvements, thereb
3
r
increasing business volumes, sales transactions, occupancies, rental income and return on investments. Parcels with sing, ]'-
family residential uses specially benefit proportionately but different than commercial parcels. These differences ar-
discussed later in this Report and incorporated into the assessment formula used to calculate assessments for these type
of parcels. CBD special benefits are particular and distinct in that they are not provided to non -assessed parcels outside 01
M
1 0 1 !!1 11111111111 1 11 ! I # 11
the District. These programs, services and improvements will only be provided or t e direct benefit o eac in iv
assessed parcel within the Downtown Downey CBD boundaries and confer" special benefits" on each assessed parcel.
Existing City of Downey services will be enhanced, not replaced or duplicated, by Downtown Downey CBD services.
In the case • the Downtown Downey CBD, the very nature • the purpose of this District is to fund supplemental
programs, improvements and services within the Downtown Downey CBD boundaries above and beyond what is being
currently funded either via normal tax supported methods or other funding sources. These services, programs and
%roocments_are_•.igned to enhance the •.•- /'. and retail commercial core uses increase tenancy and marketing of
inment service -office 9
_the_�nmi x r —government, reli ious residential and 9 5pu3_,,I inAhe-Downtown-
Downey CBD and improve the aesthetic appearance of each identified parcel. All benefits derived from the assessments
to • levied on parcels within the Downtown Downey CBD are for services, programs and improvements •
benefiting each individual parcel within this area and support increased cleanliness, commerce ' • attraction and
retention, increased commercial property rental income and improved District identity. No Downtown Downey CBD
funded services, activities or programs will be provided outside of the Downtown Downey CBD boundaries.
These special benefits are particular and distinct to each and every assessed parcel within the Downtown Downey CBD
and are not provided to non -assessed parcels outside of the District. The City of Downey does not provide these
supplemental programs, services or improvements.
While every attempt is made to provide CBD services and programs to confer•enefits • to • identi ied assesse
[tarcels within the CBD, the California State Constitution was amended via Proposition 218 to stipulate that general
benefits exist either • desi-gn • unintentionaall assessment districts and that a [*%ortion of the;-trogram • must be
considered attributable to general benefits and assigned a value. General benefits cannot be funded by assessment
revenues. General benefits might be conferred on parcels within the District, or "spillover" onto parcels surrounding the
I I I I i 'I i I I I I I I !I i I ill I I i I I I i i I 1 1 1 !111, i III I I III I
improvement district tend to range from 1-5% of the total costs, There are three methods that have been used by this
Engineer for determining general and special benefit values within assessment districts:
(1) The parcel by parcel allocation method
(2) The program/activity line item allocation method, and
(3) The composite d strict overlay determinant met of...
A majority of PBIDs in California for which this Assessment Engineer has provided assessment engineering services
since the enactment of Proposition 218, have used Method #3, the composite district overlay determinant method which
0
will be used for the CBD. This method of computing the value of general benefit involves a composite of three distinct
types of general benefit — general benefit to assessed parcels within the District, general benefit to the public at large
within the District and general benefit to parcels outside the District.
General B` d Parcels within District
CBD funded programs are narrowly designed and carefully implemented to specially bene it the assesse District parce s
and are only provided for the special benefit to each and every assessed parcel within the Distria It is the opinion of this
Engineer, based on over 30 years of professional assessment engineering experience, that 100% of benefits conferred on
assessed parcels within the District are distinct and special and that there are 0% general benefits conferred on these
parcels. This is because the CBD funded programs and services are specially geared to the unique Deeds of each assessed
parcel within the CBD and are directed specially only to these assessed parcels within the CBD. This concept is further
TU i
RMORMOVOTIM
Caencral Benefit - Public At Large
While the CBD funded programs are narrowly designed and carefully implemented to specially benefit the assessed
District properties and are only provided for the special benefit to each and every assessed parcel within the District, these
CBD funded programs may also provide an incidental general benefit to the public at large withintheDistricts
Assessment Engineering experience in California has found that generally over 95% of people moving about within CBD
boundaries are engaged in business related to assessed parcels and businesses contained on them within the District, while
the public at large "just passing through" is typically much less than 5%. Based on this experience curve and the focused
nature of the proposed Downtown Downey CBD funded programs and over 30 years of assessment engineering
experience, it is the opinion of this Engineer that a general benefit factor of 0.03 (3%) of CBD funded special benefit
program costs that might provide an immediate general benefit to the public at large will be applied to these applicable
program costs in order to compute the dollar and percent value of general benefits to the public at large. Itis the opinion
of this Engineer that the programs that may provide immediate general benefits to the public at large are the SOBO
programs. The dollar value of this general benefit type equates to $1,989 as delineated in the following chart:
General Benefits To `Public At'.Lame"
A
B I
C
% Allocation
Dollar
of Special
General Benefit
General Benefit
General Benefit
Program Element Allocation
Benefit Cost
Factor
Percent x C
Value x
SOBO Services $120,000
51%®
0.03
1.53%
$1,836-
I
lawaI 1 I I"Mel DIN No 13 61 N H U&M Big L" IgI DI DI nk-Stj DI 111),-M N
While District programs and services will not be provided directly to parcels outside the District boundaries, it is
reasonable to conclude that District services may confer an indirect general benefit on parcels outside the District
boundaries. An inventory of the District boundaries finds that the District is surrounded by 40 parcels, either tangent to
assessed parcels within the District or across streets and alleys from the District boundaries. Of these 40 parcels, 16
parcels are non-commercial. Based on over 30 years of assessment engineering experience, it is the opinion of this
Engineer that general benefits are not conferred on non-commercial parcels lying outside of the District boundaries. This
leaves 24 parcels outside of the District that can reasonably be assumed to receive some level of indirect general benefit as
a result of CBD funded programs, services and improvements. Of the 24 parcels, 6 parcels have commercial uses and are
directly tangent to assessed parcel within the District and 18 parcels have commercial uses but are separated from the
District boundaries by either public streets or alleys.
V;?_W -se , tEe_opinion of this Engineer that a benefit factor of 1.0
it -LT -
be attributed to the 90 identified and assessed parcels within the District; a benefit factor of 0.05 be attributed to general
benefits conferred on the 6 commercial parcels tangent to assessed parcels within the District; and, a benefit factor of 0. 0 1
be attributed to general benefits conferred on the 18 commercial parcels across streets and alleys from the exterior
boundaries of the District The cumulative dollar value of this general benefit type equates to $1,352 ($845 + $507) as
Composite General Benefit
1 $2,448 $122,448
Based on the general benefit values delineated in the three sections above, the total value of general benefits conferred On
assessed parcels within the District ' the public at large and parcels outside the District equates to $ 1,232 ($0 +$770 +
$462) or L30% of total program costs of $233,617 [$232.385 (special benefit) + $1,232
(general benefits)]. For the purposes of this analysis, this 130% value will be conservatively rounded up to 2%. This
leaves a value of 98% assigned to special benefit related costs. The 2% general benefit value now equates to $ 41740 and
when added to the special benefit value of $232,385 (Year 1 —2018/19 assessments) equates to a • Year I — 2018/19
RI
program cost of $237,125. Remaining costs that are attributed to general benefits of $ 4,740 will need to be derived from
other sources. A comparison of special and general benefit funding sources is shown on the chart on page 23, later in this
Report.
The total special and general benefit program activities and budget allocations that will be provided to each individual
parcel assessed in the proposed Downtown Downey CBD are shown in the chart below:
Total Year 1 — 20`18 - Special + General Benerit Costss
All programcostsassociated with general benefits will be derived from sources or credits other than CBD assessments.
Sample "other" revenue sources can be derived from special events, grants, volunteer hours and must simply equal a total
of $ 4,740 per year which would equal the general benefit cost of 2% of the computed total CBD cost of $232,385.00
from the Table above. Here, program costs are spread among property variables that are common to each parcel include
linear frontage lot or parcel size and building square footage, and residential condo parcels. Assessed valuation cannot be
used as the basis for revenue generation in the state of California since Proposition 13 sets the assessed valuation at the
time of purchase of the parcel, therefore adjacent parcels may be similar in size, but have different assessed valuations.
We mustthereforespread the assessments among the consistent factors of each parcel, based upon 2018 data. The
following data represents the foundation of the assessments that will generate the revenue to fund the Downtown Downey
CBD:
earl —2019 Proposed Special Benefit Work Plan and Budget Allocations
Service Cale ory Annual Allocation - % o bud et
Sidewalk Operations (curb to property line services) $120,000 — 51%
District Identity — District Promotion 55,000- 24%
ProgramManagement/Corporate operations $ 48,000 — 21%
Contingency $9,385-4%
0
I I1iI I - I INNINUU1111 I t I # I
Total Annual Revenue 1 $ 232,385.00 1
It is recognized that market conditions may cause the cost of providing goods and services to fluctuate from year to year.
Accordingly, the Board of the Association shall have the right to reallocate up to 10% of the budget line item within the
budget categories based on such cost fluctuations subject to the review and approval by the Board and included in the
Annual Planning Report that will be approved by the Downey City Council pursuant to the CBD Ordinance. Accrued
interest or delinquent payments may be expended in any budget category.
Any funds remaining after the fifteenth year of operation will be rolled over into the renewal budget or returne to
property owners proportionately to their individo, is for the CBD renewal may be expended from
funds available at the time of renewal. If the District is not renewed or terminated for any reason, unexpended un s wi
be returned to the property owners pursuant to the CBD Ordinance. The proposed Downtown Downey CBD services are
described in more detail as follows:
SIDEWALK OPEANFIONS
, BEA UTJ FICATION, ORDER: $120,000 51%
El Regular sidewalk and gutter sweeping
L) Regular sidewalk steam cleaning
Ll Beautification of the district
L3 Enhanced trash emptying (over and above city services)
L3 Timely graffiti removal, within 24 hours as necessary
U Tree and vegetation maintenance (over and above city services)
Ll Special events maintenance and setup
Ll Maintenance of existing and new public spaces
Ll Hanging plants, planting flowers throughout the district
Ll Possible private security and/or camera system
Ll Administration of the sidewalk operations services or staff
SOBO Services will assist in enhancing the image of each individual assessed parcel in the CBD. This activity is design
]
to increase vehicular and pedestrian traffic within the CBD that is intended to increase commerce and customer activi
attract and retain new business and patrons for assessed parcels within the CBD boundaries, as well as increa
Clean services provide cleaner entrances and perimeters for their employees, visitors, vendors and users of these pub]
facilities. In the case of assessed residential uses, CBD funded programs and services improve the aesthetic appeal I'
10
DISTRICT IDENTITY AND STREETSCAPE IMPRONFEWNTS. $55,000 24%
Examples of these special benefit services and costs may include, but are not limited to:
L3 Web site development and updating
Q App development
Ll Management and coordination of special events
L3 Social media
r01192M. PAT-OWITIM
Ll Holiday and seasonal decorations
Ll Branding of Downtown Downey so a positive image is built
U Banner programs
El Public art displays
0 Downtown landmark sign and maintenance
Ll Logo development
Ll Public space design and improvements
U Administration of District Identity Service
Assessed commercial parcels will specially benefit from the DISI programs by attracting more customers, employees,
tenants and investors as a result of positive communications between and among CBD parcels that will result in an
enhanced marketing image of the District intended to increase business volume, sales transactions, commercial
occupancies, and commercial rental income. In the case of assessed publicly owned parcels and facilities, CBD funded
DISI programs will publicize public facilities and events on District website and outreach communications for the special
benefit of each assessed publicly owned parcel which will draw more employees, visitors, vendors and users to these
public facilities. In the case of assessed residential uses, CBD funded programs and services improve communications of
District activities and programs to tenants, visitors -and -owners, which, in turn, may increase occupancies and rental
income.
ENHANCED RESIDENTIAL CONDO UNIT IMPROVEMENTS' (ftiture deve opments
M
Future residential condos built within the boundaries of the Downtown Downey CBD will be assessed separately due to
their unique parcel status and special benefit needs in the district. Residential condos buildings or Town Homes will have
the following special benefit services conferred on the frontage their parcels. These services in the future will include, but
will not be limited to:
Ll Installation, stocking and upkeep of pet waste distribution stations on the frontages a acent to t e hig
concentrations of residential condo individually assessed parcels;
M
T 1 15 1 111 11 ;1� � I I I
Ll Enhancement and beautification of sidewalks on the frontages adjacent to the high concentrations of
residential individually assessed parcels;
Ll Installation of hanging plants, and enhanced upkeep in the sidewalks surrounding these frontages
adjacent to these residential condos;
Ll Other services requested by the residents that confer special benefit to the areas directly adjacent to the
parcels with high concentrations of residential condos;
Ll Proportional share of the Administrative and Contingency costs to cover the oversight of the Enhanced
beautification special benefit services.
PROGRAM MANAGEMENT AND CORPORATE OPERATIONS: $48,000
Examples of these special benefit services and costs may include, but are not limited to:
LJ Staff and administrative costs
• Directors and Officers Insurance
• Office related expenses
• Rent
E3 Financial reporting and accounting
L) Legal work
11111 11y; p1111111111111111111 i pipi
CONTINGENCY/CITY AND CouNTY FEEs,/RMERvE: $9,385 4-/J
Examples of these special benefit services and costs include, but are not limited to:
LJ Delinquencies
Ll City Fees
Ll County fees
MINIMUM I
q 111111111111111111111,1111111111111111111111111111 J!
IT11 F1 TIIYC;
activities that are intended to specially benefit each identified and assessed parcel in the proposed CBD.
7 1 ; fie pfo&Tkuns, ser%--M-M�j- M1pT*vFinFiTM'�&c1 MITIM re -'M falfcy
and investors as a result of these programs, services and improvements, thereby increasing business volumes, sales
H
11 f i• ^f i i r r r` r
non -
assessed parcels within or outside of Because these programs, • improvements will only rprovided to each individual assessed parcel within the Downtown Downey CBD boundaries, these programs, services and
improvements will constitute "special benefits"Existing City of Downey services will be enhanced, not replaced or
-
In the case of the Downtown Downey CBD, the very nature of the purpose of this District is to fund supplemental
programs, improvements and services within the Downtown Downey CBD boundaries above and beyond what is being
currently funded either via normal tax supported methods_ or other funding sources. These services,_ programs and
improvements, are designed to enhance the pedestrian and retail commercial core Uses, increase tenancy an in Meting of
the mix of retail, entertainment, service, office, government, religious, residential and parking parcels and land uses in the
Downtown Downey CBD and improve the aesthetic appearance of each identified parcel. All benefits derived from the
assessments to be r on parcels within the Downtown Downey CBD are forprograms r improvements
directly benefiting each individual parcel within this area and support increased cleanliness, commerce, business attraction
f retention,r commercial property • and improved District identity.No Downtown Downey CBD
funded services,activities or programs be provided outside of Downtown Downey :D boundaries.
Tall, 4
11r.014 Tift"I'll
to the entirety of the .......... cost of public improvement(s) or the maintenance and operation expenses ........... or the
cost of the property related service being provided.
Each identified parcel within the district will be assessed based on property characteristics unique only to that parcel.
Parcels will be assessed based on a combination of factors: building area, land area and street frontage. The calculated
assessment rates are applied to the actual measured parameters of each parcel and thereby are proportional to each and
every other identified parcel within the district as a whole. Larger parcels and ones with larger building areas or larger
street frontages are expected to impact the demand for services and programs to a greater extent than smaller land and/or
building areas; and, thus, are assigned a higher proportionate degree of assessment programandservice costs. The
proportionality is further achieved by setting targeted formula component weights for the respective parcel by parcel
identified property attributes.
The
•roportionate specialbenefit costparcel has been "r based on optimum proportionate f
components r • is listed r'.... an attachment f this Report as Appendix i • r :.. percentages _ proportionate
relationship to the totalr benefit • 1 program and activity c1sts) are computed by dividing the individualparcel
M
Finding 4. From Section 4(a): "No assessment shall be imposed on any parcel which exceeds the reasonable cost of
the proportional special benefit conferred on that parcel."
Not only are the proposed program costs reasonable due to the benefit of group purchasing and contracting which would
be possible through the Downtown Downey CBD, they are also considerably less than other options considered by the
Downtown Downey CBD renewal proponent group. The actual assessment rate for each parcel within the Downtown
Downey CBD directly relate to the level of service and, in turn, special benefit to be provided based on the respective
building area, land area, street frontage. There are two benefit zones. It is noted that residential condominiums are
assessed based on the individual building area of each unit.
Finding 5. From Section 4(a): "Parcels ........ that are owned or used by any (public) agency shall not be exempt from
There are 13 identified and assessable publicly owned parcels within the Downtown Downey CBD for which CBD
funded special benefit programs, services and improvements will be provided. All 13 of the publicly owned parcels are
owned by the City of Downey or its Community Development Commission.
For publicly owned parcels and facilities within the CBD, each of these parcels especially benefit from CBD funded
programs services and improvements. The special benefits include cleaner facility entrances and perimeters for their
employees, visitors, vendors and other users of these public locations and facilities. Publicly owned parcels and facilities
will be included in all maps, directories and District advertisements and web displays and are active components of the
Uptown Whittier CBD identity and fabric.
Each identified and assessable publicly owned parcel and facility within the CBD will proportionately specially benefit as
delineated herein from the CBD funded supplemental services, programs and improvements. These services are designed
to improve the cleanliness for visitors, their employees and users of public facilities on publicly owned parcels within the
CBD by reducing litter and debris, each considered detractions to employment, visitation and use of public facilities if not
contained and properly managed. In turn, these CBD services will serve to enhance the public service levels provided by
public facilities and parcels within the CBD.
There is no compelling evidence that these identified assessable publicly owned parcels and facilities would not
proportionately specially benefit from all other CBD funded programs, services and improvements as delineated herein
and, thus, will be assessed accordingly. All current publicly owned parcels within the CBD are shown in the following
chart:
Year 1 —
2017/18
API -------- Legal Owner site H Site Street Assessment Percent
1 i 1 i ! L C 1 . . ..
6254 008 901
City of Downey
8201
2nd St
$
5,104.96
2.20%
6254 009 900
City of Downey
11102
La eina Ave
$
3;115.98
1.34%
6254 016 912
City of Downey
11111
Brookshire Ave
$
16,610.87
7.15%
6254 019 900
City of Downey
8321
2nd St
$
446.34
0.19%
6254 019 901
City of Downey
8320
3rd St
$
446.31
0.19%
6254 020 903
City of Downey
8313
Firestone Blvd
$
85.76
004%
6254 020 913
City of Downey
8355
Firestone Blvd
$
1,165.79
0.50%
6254021 919
City of Downey
11131
Brookshire Ave
$
6,620.60
2.85%
6254 021 922
City of Downey
8435
Firestone Blvd
$
110.49
0.05%
6254 021 923
City of Downey
8435
Firestone Blvd
$
3,145.08
1.35%
6255 002 900
City of Downey
8356
Firestone Blvd
$
4,349.90
1.87%
6255 003 900
City of Downey
*no Site Address*
$
6,385.72
2.75%
TOTAL
$
46,422.02
20.48%
6254019 904
Community Dev
Commission of Downey
$
City
11022
Downey Ave
1,479.15
0.64% _
Finding 6. From Section 4(b): "All assessments must be supported by a detailed engineer's report prepared by`a
registered professional engineer certified by the State of California".
�• • 1•U .21
Finding 7$ From Section 4(c): "The amount of the proposed assessment for each parcel shall be calculated (along
with) the total amount thereof chargeable to the entire district, the duration of such payments, the reason for such
assessment and the basis upon which the amount of the proposed assessment was calculated."
The individual and total parcel assessments attributable to special property benefits are shown on Appendix 1 to the
Management District Plan and this Report. The District and resultant assessment payments will continue for 10 more
years and may be renewed again at that time. The reasons (purposes) for the proposed assessments are outlined in Finding
2 above as well as in the ManagementDistrictPlan. The calculation basis of the proposed assessment is attributed to
building area, land area, street frontage. There are two benefit zones. It is noted that residential condominiums are
assessed based on the individual building area of each unit.
Assessment Formula MethEdoloa
Introduction
The method used to determine special benefits derived by each identified property within a CBD begins with the selection -
of a -suitable and tangible basic benefit unit. For property related services, such as those proposed in the Downtown
IN
I I ii I % - --- r t - I ,
— - - --------
Downey CBD, the benefit unit may be measured in linear feet Of street frontage or parcel size in square feet or building
size in so-uare feet or number f �buildMn floors or any combination of these factors. Factor *uantities for each [carcel are
then measured or otherwise ascertained. From these figures, the amount of benefit units to be assigned to each property
can be calculated. Special circumstances such as unique geography, land uses, development constraints etc. are carefully
reviewed relative to specific programs and improvements to be funded by the CBD in order to determine any levels of
formula is developed which is derived from a singular or composite basic benefit unit factor or factors. Within the
assessment formula, different factors may be assigned different "weights" or percentage of values based on their
Next, all program and activity costs, including incidental costs, District administration and ancillary program costs, are
estimated. It is noted, as stipulated in Proposition 218, and now required of all property based assessment Districts,
into the assessment formula and levied on theDistrict �icroLt_ anl-j
direct or "special" benefits and costs may be considered. Indirect or general benefit costs, if any, must be identified,
calculated and factored out of the assessment cost basis to produce a "net" cost figure. In addition, Proposition 218 no
longer automatically exempts government owned property from being assessed and if special benefit is determined to be
conferred upon such properties, they must be assessed in proportion to special benefits conferred in a manner similar to
From this, the value of a basic benefit unit or "basic net unit cost" can be computed by dividing the total amount of
estimated net program costs by the total number of benefit units. The amount of assessment for each parcel can be
computed at this time by multiplying the Net Unit Cost times the number of Basic Benefit Units per parcel. This is known
as "spreading the assessment" or the "assessment spread" in that all special benefit costs are allocated proportionally or
"spread" based on special benefits conferred on benefitting properties within the PID.
M I sli I M��
secondary benefit zones to be identified to allow fora tiered assessment formula for variable or "stepped -down" benefits
derived.
Step 1. Select "Basic Benefit Unit(s)"
Based on the specific needs and corresponding nature of the program activities to be funded by the Downtown Downey
CBD (i.e. sidewalk operations and beautification; district identity; administration/management services; and,
rM
contingency/re serve) it is the opinion of this Assessment Engineer that the assessment factors on which to base
The interactive application of building area, land area and street frontage quantities are a proven method of fairly and
equitablyspreadingspecial benefit costs to the primary beneficiaries of Downtown Downey CBD funded services,
programs and improvements. Each of these factors, except as noted herein, directly relates to the degree of special benefit
each parcel will receive from Downtown Downey CBD funded activities.
a direct measure of • of • its corresponding•. or draw on certain
Downtown Downey CBD funded activities (i.e. 100% allocated to district identity costs). In the opinion of this
Assessment Engineer, the targeted weight of • buildingbased on e property characteristics,should
Land are .is r direct measure of the current and future development crfr:... of each parcel and • ii f impact
or draw on certain Downtown Downey CBD funded activities (i.e. balance to sidewalk operations/beautification costs,
and balance will fund 100% of program management costs and 100% of contingency/reserve costs). In the opinion of this
Assessment Engineer, the targeted weight of • f area, should generate approximately 2• r i of •
111-Vowntown Downey CBD revenue to proportionately fund the special benefit costs for these related programs and
Qervices. It is noted that Benefit Zone 2 shall not be assessed for land area.
Street frontage is a direct measure of the static utilization of each parcel and its corresponding impact or draw on certain
Downtown Downey CBD funded activities (i.e. 100% allocated to fund sidewalk operationsibeautification)._ In the
opinion of this Assessment Engineer, the targeted weight of this factor, street frontage; should generate approximately
52% of the total Downtown Downey CBD revenue to proportionately fund the special benefit costs for these related
programs and services.
cial Circumstances
1. Future Residential Condominiums
In the case of any future residential condominiums, land area and street frontage quantities do not relate precisely to the
building orientation and configurations of multi -unit, multifloorresidential condominium complexes. Thus, it is the
opinion of this Engineer that the condo unit building area is a proven method of fairly and equitably spreading special
benefit costs to these unique property ownerships and land uses. This assessment factor directly relates to the
M
proportionate amount ofspecialbenefit each residential condominium parcel will receive from targeted Downtown
Downey CBD funded activities for this land use.
2. Future Commercial and Mixed -Use Condominiums
While there are no current commercial or mixed-use condominiums within the proposed Downtown Downey CBD, itis
the opinion of this Engineer that such units; if and when built, shall be assessed based on actual land area covered, condo
building area and direct street frontage for each unit. Because such uses are typically developed as part of a multi -floor
mixed-use complex, special methodologies are needed to address the levy of assessments on such land uses as follows:
Multi -Floor Commercial Only Condominiums
- Building area assessed at respective building area rate
Land assessed at land area rate but pro -rated for each unit relative to total building area
Frontage assessed at frontage rate but pro -rated relative to total building area
Multi -Floor Mixed -Use Condominiums
-Commercial condo building area assessed at respective commercial building area rate
Residential condo units would be assessed at 20 cents per square foot of building area plus any annual
approved rate adjustments
=Land assessed at land area rate (assessed on Istfloor commercial condos for land area covered)
Frontage assessed at frontage rate (assessed on -1 st floor commercial. condos for actual street frontage)
{ether Future i evelo nient
Other than future maximum rates and the assessment methodology delineated in this Report, per State Law (Government
Code Section 53750), future assessments may increase for any given parcel if such an increase is attributable to events
other than an increased rate or revised methodology, such as a change in the density, intensity, or nature of the use of land.
Any change inassessmentformula methodology or rates other than as stipulated in this Report would require anew
Proposition 218 ballot procedure in order to approve any such changes.
The `Basic Benefit Units" will be expressed as a combined function of gross building square footage (Benefit Unit "A")
land square footage (Benefit Unit "B"), street frontage (Benefit Unit "C") and residential condominium building area
(Benefit Unit "D"). Based on the shape of the Downtown Downey CBD; as well as the nature of the District program
elements, it is determined that all identified properties will gain a direct and proportionate degree of special benefit based
on the respective amount of building size, parcel size and street frontage, except as noted herein, within two benefit zones.
Residential condominiums will gain a direct and proportionate degree of special benefit based on the individual building
area of each unit.
m
There are two Benefit Zones within the proposed Downtown Downey CBD. Except as noted herein, assessments are
based on three formula components: building square footage; land square footage and street frontage. Residential
condominiums assessments if/when built will be based on the individual building area of each unit.
The Basic Benefit Units are delineated as,follows: 1) Benefit Units for the building area, "Unit A", 2) Benefit Units for
the land area, "Unit B"; 3) Benefit Units for street frontage, "Unit C"; and, 4) Benefit Units for future residential
Step 2. Quantify Total Basic Benefit Units
Taking into account all identified benefiting properties and their respective assessable benefit units, there are 1,153,991
Benefit Units A, 2,049,768 Benefit Units B, 15,195 Benefit Units C and 0 Benefit Units D. The measurable assessable
quantities and corresponding revenue generated by each factor are shown in the tables below:
Benefit Unit, Quantities by, Zone for YR I — 2018119
Assessment Revenue by,factor ,for YR I —2f11 119
Step 3. Calculate Benefit Units for Each Property.
The number of Benefit Units for each identified benefiting parcel within the Downtown Downey CBD was computed from
data extracted from County Assessor records and maps. These data sources delineate current land uses, building areas,
property areas and dimensions of record for each tax parcel. While it is understood that this data does not represent legal
field survey measurements or detailed title search of recorded land subdivision maps or building records, it does provide an
acceptable basis for the purpose of calculating property based assessments. All respective property data being used for
assessment computations will be provided to each property owner in the Downtown Downey CBD for their review. All
known or reported discrepancies, errors or misinformation will be corrected.
Step 4. Determine Assessment Formula
Based on the nature of the programs to be funded as well as other rationale outlined in Step I above, itis the opinion of this
I I M I I I I I I I I I
except as noted within. The proposed assessment formula is as follows:
Assessment Building Area (Unit A) Sq Ft x Unit A Rate, plus
Zone I Build ipg_ArgA_&(Unit A)
$50,034.92 / 988,676 sq ft $0.050608/so ft
one.l Land A -n Rat-, (Unit B)
$60,380.42/ 1,977,093 sq = $0.030540/sq ft
Zone 1 &2 Street Frontgop. late (Unit Q
$121,970.35 / 14,936 linear ft 166199/lin F1
Residential Condo Rate (Unit D) � %Mkft
III IgIIIIIIIgIIII !11111 11 1_1 _III I � p � 1 �, I I
q mmmm
Step 5. Estimate District Costs
The projected 15 -year special benefit District costs for 2019 — 2034 of the Downtown Downey CBD are shown below in
M•�
M,
Fifteen -Year Projection of Maximum Assess ent for the Downtown Downey CBD
FYI FY2 FY3 FY4 FY5 FY6FY7
Sidewalk
Operations, $120,000.00 $126,000.00 $132,30000 $138,915.00 $145,860.75 $153,153.79 $160,811.48
Beautification
and Order
Prop,,
Mgmt/Corp: $48,000,00 $50,400,00 $52,920.00 $55,566.00 $58;34430 $61,261,52 $64,324.59
Total $232,385.00 $244,004.25 $256,204.46 $269,014.69 $282;465.42 $296,588.69 $311,418.13
Sidewalk
Operations, $168,852.05 $177,294.65 $186,15939 $195,46736 $205,240.72 $215,502.76 $226,277.90 $226,816.65
Beautification
and Order
Prop:
gmt/Corp. $67,540.82 $70,917.86 $74,463;75 $78,186.94 $82,096.29 $86,201:10 $90,511.16 $90,726,66
Total $326,989.03 $343,338.48 $360,505.41 $378,530.68 $397,457.21 $417,330.07 $4389196.58 $439,239.90
15 Year Proiected district Special'Benefit Casts inot to exceed % annual.increase
It is recognized that market conditions may cause the cost of providing goods and services to fluctuate from year to year.
Accordingly, the Association Board shall have the right to reallocate up to 10% of the budget line item within the budget
categories based on such cost fluctuations subject to the review and approval by the Board of Directors and included in
the Annual Planning Report that will be approved by the Oakland City Council. Accrued interest or delinquent payments
may be expended in any budget category.
Any funds remaining after the fifteenth year of operation will be rolled over into the renewal budget or returned to
stakeholders. Also, CBD funds may be used to pay for renewal costs in Operating Years 14 and 15. If the District is
not renewed or terminated for any reason, unexpended funds will be returned to the property owners pursuant to State
PBID Law.
M
Step 6. Separate General Benefits from Special Benefits and Related Costs (Prop 218)
Total costs are estimated at $237,125 (see Table below). General benefits are factored at 2% of total (see Finding 2 on
page 8 of this report) with special benefits set at 98%. Prop 218 limits the levy of property assessments to costs attributed
to special benefits only. The 2% general benefit cost is computed to be $4,740 with a resultant 98% special benefit limit
computed at $232,385. This is the mighnuin aniquilt t!Lrevomite that can be derived rompUo
sLbLecl CBQLrom the first.Lear oLo
Total Year I — 2018 - Snecial + General Benefit Costs
Step 7. Calculate "Basic Unit Cost"
With a YR I — 2019 budget of $232,385 (special benefit only), the Basic Unit Costs (rates) are delineated above in Step 4.
Since the Downtown Downey CBD is being formed for a 15 -year term, maximum assessments for future years (2019-
2034) must be set at the inception of the CBD. An annual inflationary assessment rate increase not to exceed 5% may be
imposed for future year assessments, on approval by the Association Board. The maximum assessment rates for the 15 -
year CBD term of 2019-2032 are shown in the Table below. The assessment rates listed constitute the maximum
assessment rates that maybe imposed for future years of the Downtown Downey CBD (2018-2032).
M
YR I - 2018
Assessment
Service Costs
YR I - 2018
Non -Assessment
Costs
YR I —2018
Total Costs
% of Total
Sidewalk Qper ions $120,000 $2,448
$122,448
51%
District Identity$55,000 $1;122
------- - - --
$56,122
24%
Program Management $48,000 $979
$48,979
21%
Contin enc $9,385 $191
$9,576
4%
Total $232,385.00 $4,740
$237,125.00
100%
All program costs associated with general benefits ($4,740) will be derived from monetary sources other
than Downtown
Downey CBD assessments.
Geqeral,+,Special Benefit -Revenue Sources
Revenue Source
Cost
Downtown Dqwriqy_CBD Assessment Revenue - Year I —2018)
$232,385
Other revenues to fund general benefit costs (grants, dues, program income)
$4,740
'Total Costs — General and special benefits
$232,385
Step 7. Calculate "Basic Unit Cost"
With a YR I — 2019 budget of $232,385 (special benefit only), the Basic Unit Costs (rates) are delineated above in Step 4.
Since the Downtown Downey CBD is being formed for a 15 -year term, maximum assessments for future years (2019-
2034) must be set at the inception of the CBD. An annual inflationary assessment rate increase not to exceed 5% may be
imposed for future year assessments, on approval by the Association Board. The maximum assessment rates for the 15 -
year CBD term of 2019-2032 are shown in the Table below. The assessment rates listed constitute the maximum
assessment rates that maybe imposed for future years of the Downtown Downey CBD (2018-2032).
M
component
FYI
FY2---
FY3
FY4
FY5 --
Linear Frontage
$
81663
$
8.5746
$
9.0033.
S
9.4535
$
9.9261
Buildin S . Ft,
$
0.050608
$-
0.053138
$
0.055795
$
0.058585
$
0,061514
Lot S uare Ft.
$
0.030540
$
0.032067
$
0.033670.
$
0.035354
$_
0;037122
Condo Sq. Ft.
$
0.20000
$
0.21000
$
0.22050
$ __
0.23153
$
0.24310
Assessment Formula
Com onent
FY6
FY7---
FY8
FY9
FY10
Linear Frontage
$
10.4224
$
10.9436
$
11:4907
$
12;0653
$
12.6685
Building Sq, Ft:
$
0:064590
$
0.067820
$
0.071211
S-
0.074771
$
0,078510
Lot S sears Ft:
$
0:038978
$
0.040927
$
0.042973
$
0.045121
$
0.047378
Condo S . Ft.
$
0.25526
$
0.26802
$
0.28142
$
0.29549
$
0.31027
Assessment Formula
` Com onent
FYI
FY12__
FY13
FY14
FY15-
Linear Fronta e
$
13.3020
$
13.9671
$
14.6654,
$
- 15.3987
$-
16.1686
Buildin S . Ft.
$
0.082435
S
0.086557
$
0.090885 -
$
-- 0„095429
$
0;100200
Lot S uare Ft.
$
0.049746
$
0.052234
$
0.054845
- $
0:057588
$
0.060467
CondoS . Ft.
- $
0.32578
$
0.34207
$
0.35917
$
0.37713
$
0:39599
Ste12 8.- Spread the Assessments
The resultant assessment spread calculation results for each parcel within the Downtown Downey CBD are shown in
is '' �' - �- - -� � .►� f � � - �- -
Bonds: No bonds are to be issued in conjunction with this proposed CI3D.
Duration - As allowed by local CBD Laws the District will have a 15 year operational term beginning December 1, 2018.
At that time the District may be renewed again in accordance with the provisions of the CBD Ordinance. If the District is
not renewed, unencumbered surplus funds will be returned to property owners based upon each parcel's percentage
contribution to the previous fiscal year's assessments.
Mic
Infivag1julay 1 IS 1
03M
24
APN
Annual
6254
018 005
$538.97
6254
021 025
$1,072.70 -
Assessment
6254
018 023
$969.39
6254
021 030
$5,032.22
6254001014
$2,843.36
6254
018024
$3,682.74
6254
021 031
$16,260.95
6254
001 017
$4,157.61
6254
018 028
$863.92
6254
021 919
$6,620.60
6254007004
$2,676.44
6254
019 001
$2,445.95
6254
021922
$110.49
6254
007 013
$3,881.48
6254
019 003
$758.41
6254
021923
$3,145.08
6254
008 005
$8,513.20
6254
019 004
$761.41
6255
001 012
$724.83
6254008
901
$5,104.96
6254
019 027
$2,148.53
6255
002 008
$2,204.26
6254
009 002
$2,017.23
6254
019 028
$4,613.93
6255
002 009
$3,231,19
6254
009 012
$3,328.59
6254
019 900
$446.34
6255
002 010
$977.35
6254
009 013
$773.36
6254
019 901
$446.31
6255
002 011
$1,115.64
6254009014
$1,341.13
6254
019 904
$1,479.15
6255
002 012
$3,416.56
6254
009 900
$3,115.98
6254
020 001
$119.80
6255
002 013
$4,067.92
6254
010 033
$4,042.44
6254
020 002
$717.73
6255
002 023
$2,775.94
6254
010 034
$2,905.38
6254
020 003
$951.15
6255
002 028
$4,739.43
6254
010 035
$5,517.83
6254
020014
$1,160.47
6255
002 032
$5,888.06
6254
011 003
$2,010.28
6254
020 017
$1,739.08
6255
002 033
$2,255.23
6254
011008
$699.90
6254
020 020
$836.77
6255
002 034
$2,831.13
6254
011010
$809.41
6254
020023
$1,623.42
6255
002 900
$4,349.90
6254
011012
$5,262.62
6254
020 024
$451.43
6255
003 001
$3,114.60
6254
011 013
$2,435.07
6254
020 025
$533.85
6255
003 005
$891.16
6254
011014
$1,188.60
6254
020 027
$8,257.93
6255
003 006
$564.85
6254
012008
$596.39
6254
020 028
$1,909.16
6255
003 007
$1,153.76
6254
012 009
$623.02
6254
020 029
$2,003.14
6255
003 015
$2,659.70
6254
012 010
$2,137.21
6254
020 808
$2,158.96
6255
003 018
$8,010.09
6254
012 011
$3,523.33
6254
020 903
$85.76
6255003019
$2,185.15
6254
012 013
$3,996.82
6254
020 913
$1,165.79
6255
003 900
$6,385.72
6254
012 015
$1,559.58
6254
021 023
$2,059.57
6254
016 912
$16,610.87
03M
24
1 IA'Al C I UIVJ 1 I
111111AVIN LUVJT1 0 1 11 . i
RESOLUTION NO.
PAGE 6
Amended Assessment Ballot Proceeding Results
[a Cj�ybfbowney
TO: Downtown Downey Community Benefit District Property Owners
FROM: Aldo E. Schindler, Director of Community Development
DATE: June 8, 2018
SUBJECT: Notice of Public Hearing to Establish the Downey Community Benefit District, to be
known as the Downey CBD, and the levy and collection of assessments for Fiscal Year
2018-2019
Dear Downtown Downey Property Owner:
As you recall, the City of Downey has been communicating a plan fora new "Community Benefit District"
for Downtown Downey. We are now ready to initiate the final phase of this effort. The Community Benefit
District is a property assessment district that will provide the downtown property owners with independent,
property owner -controlled finances to better control and fund special events, marketing, promotional
activities, public space development, security, maintenance and beautification, property enhancements,
and the creation of a new property owner -controlled non-profit corporation to spend and manage these
funds.
The purpose of this notice is to provide you with information about the assessment ballot proceeding and
public hearing being conducted by the Downey City Council on Tuesday, July 24, 2018. Enclosed please
find your official ballot for the proposed Downtown Downey Community Benefit District ("Downey CBD").
Because you are an affected property owner, you have the right to vote in favor or against the formation
of the Downey CBD which is proposed to be formed fora 15 year term. if the Downey CBD is established, -
an annual assessment will be collected from each property owner on their county property tax bills
beginning with the bill due in December 2018. The amount of the assessment for your parcel(s) can be
found on the enclosed ballot.
The Downey City Council will conduct a Public Hearing on Tuesday, July 24, 2018 at 6:30 p.m. in the City
Council Chambers, Downey City Hall, 11111 Brookshire Avenue, Downey, CA 90241. At this hearing, the
City Council will hear testimony regarding the proposed assessment.
On May 22, 2018 and June 7, 2018, the Downey City Council approved a Resolution of Intention to form
the Downey CBD. The Resolution of Intention states that the assessment proposed to be levied and
collected for Fiscal Year 2018-19 is $253,589. The amount to be levied and collected for subsequent
years may be increased, by an amount not to exceed five percent (5%) per year, as decided upon by the
property owner -controlled CBD governing Board of Directors.
Per the City of Downey's Community Benefit District Ordinance (Article ll, Chapter 14) of the Downey
Municipal Code, and the California State Constitution, Article XIII (d), official ballots are being mailed to
affected property owners. The City Council will approve formation of the Downey CBD and the
assessment if, at the close of the Public Hearing, the ballots submitted in opposition to the assessment do
not exceed the ballots submitted in favor of the assessment, with the ballots weighted according to the
proportional financial obligation of the affected property. The Downey CBD will then be established for
the Fiscal Year 2018-19 and property tax bill cycle due in December 2018. The City Council will not
impose an assessment if there is a majority protest. A majority protest exists if, upon the conclusion of
the hearing, the weighed ballots submitted in opposition to the assessment district exceed the weighted
ballots submitted in favor of the assessment.
The results of the balloting will be tabulated and announced by the conclusion of the public hearing, which
is scheduled for July 24, 2018. The assessment ballot will be treated as a public record during and after
tabulation of the assessment ballots.
Downey CBD stakeholders
- have met the requirements of the City of Downey's enabling ordinance by
submitting qualified petitions and an appropriate Management District Plan, which is available at the
City's website: http,//www.downevca.ora/der)ti5/cd/downtown, communq benefit distrigLasp and certified
by a qualified District Assessment Engineer.
The nnethodokmyused for the aanemonuentlsca�u�bedbased Un`��g�enparcel's `linear .kds�e
square footage, and building square footage. There iaeseparate oa|ou|abonfor residential
-
condominiums. A more detailed breakdown of the assessment methodology can be found in Section 4 of
.
the enclosed Management District Plan.
Assessment Ballot Procedures:
Enclosed with this notice, you will find: (1) an Assessment Ballot, (2) Management District Plan, and (3)
Return Envelope to return your signed ballot. /\digital copy of the fully executed Ordinance, Resolution
of Intent, the Downtown Downey Community Benefit District 2Q18 Management District Plan, District
Assessment Engineer's Report, and Ft| Asked QU also befound onthe City's website
The following is a summary of the procedures governing the return and tabulation of the ballots:
• The City of Downey,
through the City Clerk's Office, will handle the sending ofnotice and ballots.
The receipt and counting of the ballots will be handled by the City Clerk's Office.
w, A ballot is being sent to the owner of each parcel identified in the Downey CBD Management
District Plan and verified by the District Assessment Engineer's Report. The ballot will be sent to
the parcel property owner address on file with the County Assessor's Office. |fthe ballot io
returned as undeliverable within 21 days of mailing, the (�ity {�|erk'�(��i��wi|| attempt to
determine m correct owner and/or address and re -send the ballot.
w Property owners who own multiple parcels under the same ownership title within the proposed
CBD will receive a single ballot for all of the properties owned and may vote at once with that
ballot for all properties listed.
.w' Property owners who own multiple parcels under different ownership titles within the proposed
CBD will receive separate ballots for each parcel.
• Only ballots with original signatures (not photocopies of signatures) will be accepted. Ballots will
NOT becounted ballot: ,
• ksaphotocopy without anoriginal signgtuna;
o ieunsigned; or
o lacks onidentifiable "yes"or"ng"vote.
w, Ballots must Decast by the property owner, Orauthorized party with authority bJvote on behalf of
the property owner.
"* Ballots are requested bnbemailed inthe return envelope enclosed with ballot. |faballot ishand
delivered, itmust be delivered bothe City Clerk bythe conclusion qfthe Public Hearing. Tdbm
officially counted, all ballots whether mailed or hand de|ivenad, must be received bythe City Clerk
prior to the close of the public input portion of the Public Hearing scheduled for Tuesday, July 24,
2O1BmtO:3Op.m.inDowney City Hall, Council Chambers located et11111 Brookshire Avenue,
Downey, CA.
For more information please contact me at5O2-9O4-7Y51or
Respectfully,
Aldo ESchindler