HomeMy WebLinkAboutResolution No. 18-7829 -Forming the Downtown Downey CBD & Levying Assessments TherewithRESOLUTION OF • OF OF r•
FORMINGDOWNTOWN DOWNEY COMMUNITYDISTRICT
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 a 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 the 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, and calling anassessmentballot
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;
RESOLUTION NO.18-7829
PAGE 2
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 Xlll 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 publicinputportion of the Public Hearing, all assessment
ballots submitted by property owners within the amendedboundaries 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 BallotProceedingResults tabulation attached
hereto as Attachment B, the City Council determined that a majority_ protest, as defined by
Article Xlll D, Section 4(e) of the California Constitution and Section 53753 of the California
Government Code, does notexistwith 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 DOWNEY 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.
i * •
PAGE 3
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.
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 La Reina 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 andsignagepointing
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 the amended Management 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 thanspecifiedin 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.
RESOLUTION NO.
SECTIONf' The adoption of • •n 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.
SECTION 12. This resolution shall take immediate effect.
APPROVED AND ADOPTED this 24th day of July, 2018:
SEAN ASHTON, Mayor
HEREBY CERTIFY that the foregoing Resolution was adopted by the City Council of
the City of Downey at a regular meeting held on the 24th day of July, 2018 by the following vote,
to wit:
AYES:
Council Members: Pacheco, Saab, Rodriguez, Mayor Ashton
NOES:
Council Member: None.
ABSENT:
Council Member: None.
ABSTAIN:
Council Member: Vasquez.
A AL�ICIADUARTE, C
City Clerk
RESOLUTION NO.
PAGE 5
Attachment
Amended Management District Plan and the
Assessment • r • r
Cbmmunity Benefit District 2018
MaoagehnOnt District Plat!
Final Plan —July 12 th 12018
of the Downey Municipal Code
Prepared by:
New City America, Inca
and
The Downtown Downey CBD Steering Committee
Corporate Office 4710 W. Ivy Street W San Diego ' CA 92101 a 619-233-5009 a Fax 619-239-710S
San Francisco Bay Area Offices 954 Lee Avenue, a San Leandro, CA 94577 A 888-356-2726
New England Office: 42 Pearl Street,'a New Bedford, IVIAd 02740
mail@newcityamerica.com a www.newcityamerica.comcebook: New City America, Inc.
D• Downey
• Benefit District
Management 0(istrict Plan
Table of Contents
Section Number
1. Management District Plan Summary
2. Downtown Downey CBD Boundaries
RZIMMME=
4. Assessment Methodology
5. District Rules, Regulations and Governance
6. Implementation Timetable
7. Assessment Roll of Properties Included
Attachment:
A. Engineer's Report
N
91
M1
KH
09
9M
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 for a 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 Doy! e
In 2011, the State Legislature dismantled 408 redevelopment 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.
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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
Cadital I rra�rornent
• Invested $6.7millionfor 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).
a•< 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 wide; 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
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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. See the Downtown Downey proposed CBD map
in Section 2, pages 10 and 11. The District is generally bounded by:
• 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 6254001017.
• 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 Yd 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.
Im2rovements, Activities and Services of the Downtown Downgy CBD Plan:
There are five 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 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."
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4. Program Management and Corporate Operations: These services equal $48,000 or 21%
of the first year annual budget of the new district.
5. Contingency/Reserve.- This contingency anticipates a "historic" non=payment rate
percentage oft to 4%, and any City or County collection fees. This fund equals$ 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 Financing:
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
Special Benefit Service Summation of Apportionment plan
Sidewalk Operations Funded fully by linear frontage assessments
District Identity Funded fully by building sq. and lot square
footage assessments
Program Management /Corp Operations Funded by Lot size assessments
Contingency Funded by Lot size assessments
Enhanced Residential Benefits Funded by building square footage of residential
condos (do not currently exist)
0
Annual Costof ?LogertV
Assessments to Fundectal Rene �t a ices.
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 tothespecial 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
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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
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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 is not renewed.
Time and Manner for Collecting 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 Xlll 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 haven fifteen -year term which shall commence on December
15t, 2018 and expire on November 30th, 2033, with operations winding down by November 30th,
2033, unless the district is renewed by the CBD property owners through a new assessment ballot
proceeding.
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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."
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Boundaries: The following text will define the boundaries of the Downtown Downey CBD.
Northern bounder : Beginning at parcel 6254016 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 corner 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 41h Street. Proceed westward to New
Street, run southward to include the parcels fronting 3rd Street including parcels 6254 007
013, 6254007 004, and parcel 6254 004 028 at the northwest corner of the intersection
of La Reina Avenue and 3rd Street.
• autnem bourndaty:Beginning at parcel 6255 002 023 at the 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 003 900, (the City parking lot) at the intersection of La Reina Avenue and
Burns Avenue.
• Eastern boundary: 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 -16 912.
• ie estem bound a:: 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.
IN
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Process to Establish the Improvement and ActiMily, plan 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 pease, 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:
Prioripi, Special Benefit Services — According to the Surge
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:
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• By a two to one margin, property owner respondents stated that they support services
to deal with homelessness and panhandling issues.
• By 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 activitiesdetailed 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 rovements Activities and Services of the Downtown Downey 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
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.
t ,D , $120,000
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 setup
❑
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 STREETSCAPE 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
CONTINGENCYICITY 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;
Li Installation of hanging plants, and enhanced upkeep in the sidewalks surrounding
these frontages adjacent to these residential condos;
❑ 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 Operating Budget:
A projected fifteen -year operating budget for the Downtown Downey CBD is provided below:
The projections are based upon the following assumptions:
18
4 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.
0 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.
i ne nuaget tor specitic programs may ce reaiiocatea WRNM70 categories 6`y-LTP=11-,'%7-n7-7M-1ff
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 r City
Council for review and approval.
Table
Aw- U -V --f WX&I
Downtown Downey CBD
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
191
FYI
FY2
FY3
FY4
FY5
FY6
FY7
Sidewalk Operations,
Beautification and
$120,000.00
$126,000.00
$132,300,00
$138,915.00
$145,860,75
$153,153,79
$160,811.48
Order
Districtidentity
$55,000,00
$57,750,00
$60,637.50
$63,669.38
$66,852,84
$70,195.49
$73,705,26
Prop. orations
$48,000.00
$50,400.00
$52,920,00
$55,566.00
$58,344.30
$61,261.52
$64,324.59
Contingency
$9,385.00
$9,854.25
$10,346.96
$10,864.31
$11,407.53
$11,977.90
$12,576,80
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
FYII
FY12
FY13
FY14
FY15
Sidewalk Operations,
Beautificalion 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
District Identity
$77,390.52
$81,260.05
$85,323.05
$89,589,20
$94,068.66
$98,772.10
$103,710.70
$103,957.63
Prop. Mgrnt/Corp,
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
Contingency
$13,205.64
$13,865.92
$14,55912
$15,287.18
$16,051.53
$16,854.11
$117,696.82
$17,738,95
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
191
Section
' • • • • .
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 Ben 'its:
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 onto 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
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- 2018 - Snecial + 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, buthavedifferent 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 1st, 2018);
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 benefit zones in
the proposed Downtown Downey CBD.
22
YR 1- 2018
YR 1- 2018
YR 1- 2018
% of Total
Assessment
Non-Assessment
Total Costs
Service
Costs
Costs
Sidewalk Operations
$120,000
$2,448
$122,448
51%
(District Identity
$55,000
$ 1,122
$56,122
24%
1Program 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, buthavedifferent 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 1st, 2018);
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 benefit zones in
the proposed Downtown Downey CBD.
22
Assessable Data in the CBD:
Benefit Zone 3
Building Square Lot Size (square feet) Linear Frontage Condo Sf
Footage (square
feet)
988,676 sq. ft. 1,977,093 14,936 0
Benefit Zone 2:
Building Square Footage Lot Size (square feet) Linear Frontage_
0 0 631
Total Assessment District Property Variables:
Building Square Footage Lot Size (square feet) Linear Frontage
988,676 1,977,093 14,305
Amount of revenue generated by each benefit zone:
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%
L 0%
Total: $ 232,385.00 100%
M
First Year Annual Costs:
The Downtown Downey CBD FY 2018-19 year annual assessments per property variable are as
follows:
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 for services in the same
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 same
$ 48,000 — 21 %
public agencies, community
proportion as allocated in the budget
relations, office rent, supplies,
insurance, legal
Funded by Lot size assessments
Contingency/Reserve
Residential Condo assessments will
$ 9,385 4
pay for services in the some
proportion as allocated in the budget
Total for all special Benefit
$ 232,385.00
Services
24
Linear Froptgge 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 uare Footage. Defined:
Building square footage is defined as gross building square footage throughout the Downtown
Downey CBD. 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 Square 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 Defined:
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 in the 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 a 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 rateis
provided below.
Future residential 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:
1. 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' special assessment methodology 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.
Exem 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 X $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 fora 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
IRE
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.
Projected
Assessment
FY6
FYI
FY7
FY2
FY8
FY3
FY9
FY4
FY10
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
Linear Frontage
$
13.3020
$
13.9671
$
14.6654
$
15.3987
Building Sq. Ft.
$
0.082435
$
0.086557
$
0.090885
$
0.095429
Lot Square Ft.
$
0.049746
$
0.052234
$
0.054845
$
0.057588
Condo Sq. Ft.
$
0.32578
$
0.34207
$
0.35917
$
0.37713
28
FY15
$ 16.1686
$ 0.100200
$ 0.060467
$ 0.39599
Budget Adjustments:
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.
If 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 the original District. However, the rolled over funds maybe 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 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
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 beheld 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.
APN
6254 008 901
6254 009 900
6254 016 912
6254 019 900
6254 019 901
6254 020 903
6254 020 913
6254 021919
6254 021922
6254 021923
6255 002900
6255 003 900
6254 019 904
Legal Owner
City of Downey
City of Downey
City of Downey
City of Downey
City of Downey
City of Downey
City of Downey
City of Downey
City of Downey
City of Downey
City of Downey
City of Downey
Community Dev
Commission of Downey
City
Table 4-B
Site#
Site Street
8201
2nd St
11102
La Reina Ave
11111
Brookshire Ave
8321
2nd St
8320
3rd St
8313
Firestone Blvd
8355
Firestone Blvd
11131
Brookshire Ave
8435
Firestone Blvd
8435
Firestone Blvd
8356
Firestone Blvd
$ 4,349.90
*no Site
$ 6,385.72
Address*
Annual
Assessment
Percent
$ 5,104.96
2.20%
$ 3,115.98
1.34%
$ ,16,610.87
7.15%
$ 446.34
0.19%
$ 446.31
0.19%
$ 85.76
0.04%
$ 1,165.79
0.50%
$ 6,620.60
2.85%
$ 110.49
0.05%
$ 3,145.08
1.35%
$ 4,349.90
1,87%
$ 6,385.72
,
$ 4758
TOTAL 7.81
11022 Downey Ave $ 1,479.15
TOTAL $ 1,479.15
30
2.75%
20.48%
0.64%
0.64%
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 maybe an existing nonprofit entity or a newlyformed
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
Section i"
Implementation Timetable
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
Section
Assessment Roll of Properties Included
APN
Annual
6254 020 002
$717.73
Assessment
6254 020 003
$951.15
6254 001014
$2,843.36
6254 020 014
$1,160.47
6254 001017
$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 008 005
$8,513.20
6254 020 024
$451.43
6254 008 901
$5,104.96
6254 020 025
$533.85
6254 009 002
$2,017.23
6254 020 027
$8,257.93
6254 009 012
$3,328.59
6254 020 028
$1,909.16
6254 009 013
$773.36
6254 020 029
$2,003.14
6254 009 014
$1,341.13
6254 020 808
$2,158.96
6254 009900
$3,115.98
6254 020 903
$85.76
6254 010 033
$4,042.44
6254 020 913
$1,165.79
6254 010 034
$2,905.38
6254 021023
$2,059.57
6254 010 035
$5,517.83
6254 021025
$1,072.70
6254 011 003
$2,010.28
6254 021030
$5,032.22
6254 011008
$699.90
6254 021 031
$16,260.95
6254 011010
$809.41
6254 021919
$6,620.60
6254 011012
$5,262.62
6254 021922
$110.49
6254 011013
$2,435.07
6254 021923
$3,145.08
6254 011014
$1,188.60
6255 001 012
$724.83
6254 012 008
$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 002011
$1,115.64
6254 012 013
$3,996.82
6255 002 012
$3,416.56
6254 012 015
$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 002034
$2,831.13
6254 019 001
$2,445.95
6255 002 900
$4,349.90
6254019 003
$758.41
6255 003 001
$3,114.60
6254 019 004
$761.41
6255003 005
$891.16
6254 019 027
$2,148.53
6255 003 006
$564.85
6254 019 028
$4,613.93
6255 003 007
$1,153.76
6254019 900
$446.34
6255 003 015
$2,659.70
6254019 901
$446.31
6255 003 018
$8,010.09
6254 019 904
$1,479.15
6255 003 019
$2,185.15
6254 020 001
$119.80
6255 003 900
$6,385.72
33
Oki
Prepared pursuant to the City of Downey
Community Benefit District Ordinance
Section 400 Downey City Charter
Codified as Municipal Code Article 2, Chapter 14
I I WINISIM
Prepared by
Edward V Henning
California Registered Professional Engineer 4 26549
Edward Henning &Associates
July 12, 2018
"1117K 0 11 i 1 0 - - -
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.
Prepared by Edward V Henning, California Registered Professional Engineer # 26549
y-,
V v
C 26549
EXP 3-31-20
RPE #26549
Edward V. Henning Jutvl2th, 2018
(NOT VALID WITHOUT SIGNATURE AND CERTIFICATION SEAL HERE)
Introduction
This report serves as the "detailed engineer's report" required by Section 4(b) of Article XIIII) 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 i• CBD is a is a property -based benefit assessment district being formed •; 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
Due to the • assessment nature of assessments levied within a Property Business Improvement District
("PBID"), district program costs are to F• distributed amongst all identified benefiting properties based • 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 • assessment levie& • those properties expected to • special benefits from PBID
funded programs and activities may be assessed and • in an amount proportional to the relative special benefits
expected to be received.
SupplementalPro poKition,alb Procedures and Requirements
Proposition 218, approved by the voters • • in ilovember of 1996, .•• a •. array • procedures anA
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 • State and • assessment enabling laws. These requirements
1 '11519111 1 1 11 11141111 11 IF 119111111ITI 111111540671MUPT"s "I
C --ince Prop 218 provisions will affect all subsequent calculations to be made in the final assessment formula for the
V 11
Finding I From Section 4(a): "Identify all parcels which will have a special benefit conferred upon them and upon
which an assessment will be imposed"
5
IIIIIIIJUN U "I, 9L1 111j, OM
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
operations/beautification; district identity; program management; and, contingenc%//reserve) will onl% be i
2rovided diLQUIy.
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
adhere to the assessment rate structures described herein. There are two benefit zones within the Downtown Downey
CD: -
it •
D.
Downtown Downey CBD is centered approximately at Firestone Boulevard and Downey Avenue, extending three
,V rVILt,).,-.4 ,,i Itn znt `XT"'jA&)u9Vi,
east� 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
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 Downey CBD Ugggdoa-
The boundaries of the proposed Downtown Downey CBD are described as follows:
'Northern boun : 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 4"' 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 comer of the intersection of La Reina Avenue and 3d
Street.
&ythern bound
giy: 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
Avenue and Bums Avenue.
0
&jlem bdu�� Beginning at parcel 6255 002 023 at the northwestern comer of t e intersection o
Bums Avenue and Brookshire Avenue, proceed northward including all of the parcels on the west side of
Ofi 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 3rd Street. The western boundary will also include parcel 6254 002 023 which is
INS=
All idened parcels within the above-mentioned boundaries shall be assessed to fund special benefit programs, servic
the District boundaries and none will be provided outside of the District boundaof the individual parce
e
asgesse shall receive special benefits from the proposed programs, services and improvements. All Downtown Down
BD I
Cfunded programs, services and proco
imvements are nsidered supplemental abovo
e nrmal base level servic
provided by the City of Downey and are only provided for the special benefit of assessed parcels within the boundaries
the Downtown Downey CBD.
Finding 2. From Section 4(a): "Separate general benefits (if any) from the special benefits conferred on parcel(s).
MEM
BENEFIT ANALYSIS
Proi-cosition 218, assessment D*s ict W.(,m
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
. t -.?-fd -fot,;iw-mlv't-a-tsie-ft visibein.
The property uses within the boundaries of the Downtown Downey CBD which will receive special benefits from
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
1-1111MVIRAVAI 1• I I t1jairg-j I —
There are four basic categories of special bene it services that will be ded by the Downtown Downey CBD. 0
these services will confer a special benefit to the individual parcels within the CBD. The categories of special benefits are
• I•
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
• Sidewalk operations services totals $ 120,000 • 5 1 % • the first year annual budget • the new CBD.
2. District Identify: 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."
4. Program Management and Corporate Operations: These services equal $48,000 or 21% of the first year annual
budget of the new district.
5. ConfingencylReserve. 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 funded programs,
services and improvements. Commercial parcels that receive these programs, services and improvements attract more
customers, employees, visitors, tenants and investors as a result of these programs, services and improvements, thereby
increasing business volumes, sales transactions, occupancies, rental income and return on investments. Parcels with single
family residential uses specially benefit proportionately but different than commercial parcels. These differences are
discussed later in this Report and incorporated into the assessment formula used to calculate assessments for these types
of parcels. CBD special benefits are particular and distinct in that they are not provided to non -assessed parcels outside of
0
the District. These programs, services and improvements will only be provided for the direct benefit of each individual
assessed parcel within the Downtown Downey CBD boundaries and confer" special benefits" on each assessed parcel.
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 ftinding sources. These services, programs and
acp",•1VP1W_-JS_2W__dP_%j2
the mix of retail, entertainment, service, office, government, religious, residential and parking properties in the Downtown
Downey CBD and improve the aesthetic appearance of each identified parcel. All benefits derived from the assessments
to be levied on parcels within the Downtown Downey 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 Downtown Downey CBD
1 11 1 111! 111, Ing I I'll I III 1 0 1 1 t
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
rNITINTITIONTMOTM
While every attempt is made to provide CBD services and programs to confer benefits only to those identified assessed
parcels within the CBD, the California State Constitution was amended via Proposition 218 to stipulate that general
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
within the District or interest in the District itself
g
liq�11ligpplaill p
I I II I•n=1 I
improvement district tend to range from 1-5% of the total costs. There are three methods that have been used by this
IRIMIR!"ifflifflil IIINIIINII 1111
2REGEMMEEMMM
(1) The parcel by parcel allocation method
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 use or t c 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.
Q�enerall Bfit — A istr ct
ssessed Parcels within D' i
CBD funded prop -rams are narrowl% designed and carefully imUlemented to ST)eciall% benefit the assessed District Rarcels
Engineer, based on over 30 years of professional assessment engineering experience, that 100% of benefits conferred o
assessed parcels within the District are distinct and special and that there are 0% general benefits conferred on thes
parcels. This is because the CBD funded programs and services are specially geared to the unique needs of each assesse
parcel within the CBD and are directed specially only to these assessed parcels within the CBD. This concept is ftirth
reinforced by the proportionality of special benefits conferred on each assessed parcel within the District as deternmnined b
the special benefit assessment formula as it is applied to the unique and varying property characteristics unique to eac
assessed parcel.
Gaefal M66 L.,-JPubbfilk �AtLa �
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 within the District.
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 ftinded 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 ftinded special benefit
program costs that might provide an immediate general benefit to the public at large will be applied to these applicable
-XI yr in i --j., I- f-Mr-k-AIIII,
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 Beriefits To "Public At Larae"
A
B
C
D
E
% Allocation
Dollar
of Special
General Benefit
General Benefit
General Benefit
Program Element Allocation
Benefit Cost
Factor
Percent'(P_j� 9
SOBO Services $120,000
$1,836
General Benefits — Outside Parcels
7
While District programs and services will not be provided directly to parcels outsi e the District oun•aries, it
reasonable to conclude that District services may confer an indirect general benefit on parcels outside the District
r• •, ory 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 scarcels outside of the District that can reasonabip be assumed to receive some level of indirect generaLberiefit-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
w
Based on over 30 years of assessment engineering experience, it is the opinion of this Engineer that a benefit factor of 1.0
be attributed to the 90 identified and assessed parcels within the District; a benefit factor of 0.05 be attributed to general
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
Corn osite General Benefit
$2,448 $122,448
Based on the general benefit values delineated in the three sections above, the total value of general benefits conferred o
assessed parcels within the District, the public at large and parcels outside the District equates to
$462) or 1.30% of total program costs of $233,617 [$232.385 (special benefit) + $1,23�
(general benefits)]. For the purposes of this analysis, this 130% value will be conservatively rounded up to 2%. Thi �I
Is-ta 1:43140—miN
when added to the special benefit value of $232,385 (Year 1 —2018/19 assessments) equates to a total Year I — 2018/1 .1
I
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.
And Improvernettu
The total special and general benefit program activities and budget allocations that will be provided to each individual
total Year, 1 —2018 - Special + General Benefit ,Costs
of S 41740 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:
Service Cateffory Annual Allocation �-�dgef�.
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 $9,385-4%
0
Total Annual Revenue 2329385.00
It is recognized that market conditions may cause the cost • providing ••r• 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
• delinquent •. may •, expended in any budget ,•
Any funds remaining after the ifteent year of operation wi e ro e over into t e renewa u get or returne
property • proportionately to their individual assessments. Also, • for the CBD renewal may • expended •
• available at the time • renewal. If the District is not renewed • terminated • any reason, unexpended funds will
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 OPERATIONS, BEAVTI�Fi)CA,rtoN,,,�,Ogpt,,,P,; $120,000 51%
❑ Regular sidewalk and gutter sweeping
❑ Regular sidewalk steam cleaning
❑ Beautification of the district
❑ 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
MMU-n—cing fffe—Image or eacn in iviauai assesse"
to increase vehicular and pedestrian traffic within the CBD that is intended to increase commerce and customer activity,
attract
• retain new • and patrons for assessed •. within the CBD boundaries, as well as increase
• rents and • occuvancies. In the case • assessed yublicly, owned •. and facilities CBD •e
Clean services provide cleaner entrances and perimeters for their employees, visitors, vendors and users of these public
facilities. In the case of assessed residential uses, CBD funded programs and services improve the aesthetic appeal for
tenants, visitors and owners, which, in turn, increase occupancies and rental income.
110
DISTRICT IDENTITY AND STREETSCAPE IMPROVEMENI S: $55,000 24%
Examples of these special benefit services and costs may include, but are not limited to:
U Web site development and updating
Ll App development
Ll Management and coordination of special events
L3 Social media
• Public relations firm
• Holiday and seasonal decorations
• Branding of Downtown Downey so a positive image is built
0 Banner programs
L3 Public art displays
L3 Downtown landmark sign and maintenance
Lf Logo development
L3 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, employee
tenants and investors as a result of positive communications between and among CBD parcels that will result in a]
enhanced marketing image of the District intended to increase business volume, sales transactions, commerci
occupancies, and commercial rental income. In the case of assessed publicly owned parcels and facilities, CBD ftinde
DISI programs will publicize public facilities and events on District website and outreach communications for the specill
benefit of each assessed publicly owned parcel which will draw more employees, visitors, vendors and users to thes
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: (future developments) $ I
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:
Q Installation, stocking and upkeep of pet waste distribution stations on the frontages adjacent to the high
concentrations of residential condo individually assessed parcels;
nn
L3 Enhancement and beautification of sidewalks on the frontages adjacent to the high concentrations of
residential individually assessed parcels;
El Installation of hanging plants, and enhanced upkeep in the sidewalks surrounding these frontages
adjacent to these residential condos;
L) Other services requested by the residents that confer special benefit to the areas directly adjacent to the
parcels with high concentrations of residential condos;
L3 Proportional share of the Administrative and Contingency costs to cover the oversight of the Enhanced
beautification special benefit services.
PROGRAM MANAGEMENT AND CORPORATE OPERATIONS' $489000 24%
Examples of these special benefit services and costs may include, but are not limited to:
LJ Staff and administrative costs
U Directors and Officers Insurance
Ll Office related expenses
L] Rent
LJ Financial reporting and accounting
L3 Legal work
activities that are intended to specially benefit each identified and assessed parcel in the proposed CBD.
CONTINGENCY/CITY AND COUNTY FEES/,RESERVE' $9,385 4%
Li Delinquencies
L] City Fees
This component is key to the proper expenditure of CBD assessment funds and the administration of CBD programs ani
activities that are intended to specially benefit each identified and assessed parcel in the proposed CBD.
Parcels that receive the programs, services and improvements described above attract more customers, employees, tenanim
and investors as a result of these programs, services and improvements, thereby increasing business volumes, sall
N
MUMAW I LUMA U
transactions, occupancies and rental incobenefits are particular and distinct in t at t ey are not provi•e to non -
assessed parcels within or outside of the Distria 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
l����m!!Illiilllllllll 11!IM11111
reff on 117=41111 WX M -
In the case of the Downtown Downey CBD, the very nature of the purpose of this District is to fund supplemental
currently funded either via normal tax supported methods or other funding sources. These services, programs and
I .-h—c. the --destrian and retail commercial core uses increase tenancy and marketing, 0
Downtown Downey CBD and improve the aesthetic appearance of each identified parcel. All benefits derived from the
7ssessments to be levied on parcels within the Downtown Downey CBD are for services programs and improvements
• lil!!1111 III 11!1�11111�111 111111 � 1111111111 1 11111 Oil 1 11111 wffsf• •f
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.
findiiij.3. From Section 4(a)- "(Determine) the proportionate special benefit derived ty each parce n re ationshi
to the entirety of the .......... cost of public improvement(s) or the maintenance and operation expenses ........... or thl
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 program and service costs. The
proportionality is further achieved by setting targeted formula component weights for the respective parcel by parcel
identified property attributes.
The proportionate special benefit cost for each parcel has been calculated based on optimum proportionate formula
components and is listed as an attachment to this Report as Appendix L The individual percentages (i.e. proportionate
relationship to the total special benefit related program and activity costs) are computed by dividing the individual parcel
assessment by the total special benefit program costs.
In
Finding 4. From Section 4(a): "No assessment shall beim 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 woul
•- possible through the Downtown i• CBD, they are also considerably less than • options consi•ere y t
Downtown Downey CBD renewal proponent group. The actual assessment rate for each •. within the Downtow
i• CBD • relate to the level of service and, in turn, special benefit to • provided based on the respecti
building area, land area, street frontage. There are two benefit zones. It is noted that • condominiums
assessed based on the individual building area of each unit. I
'Finding S. From Section 4(a): "Parcels ........ that are owned or used by any (public) agency shall not be exempt from
assessment.........."
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 Wbiffier CBD identity and fabric.
....... ....
delineated herein from the CBD funded •• services, programs and improvements. These services are designed
• improve the cleanliness for • their employees and users • public facilities • publicly owned •. within the
:ix • litter and debris each considered detractions to e •• visitation and use of jcublic facilities if not
contained and properly managed. In turn, these CBD services will serve to enhance the public service levels provided •
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 I —
2017/18
APN Legal Owner Site M Site Street Assessment Percent
FE]
VII 4 I 1 I � I ' •• r'
11: • I:
• 11' '1i
ii f r • ����I��__ �_
�• �i i
1
1La
2nd St
V
..
����
�I �� • •
i'
1
Brookshire Ave
7.1
,, 1 • •it
Y r2nd
.
,. •140.19%
1 . •I'
• Y.
1
r
446.31i
'•'
• � I •''
r r•
r•
• 1.1
6254021 922
6254021923
I• r r ll�� II �������������
• :
, I
6255002900
6255003900
of Downey
f f • ra
I
1
Downey Ave
'
1 "
Finding o. 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".
This report serves as the "detailed engineer's report" to support the benefit property assessments proposed to be levied
within the Downtown Downey CBD.
Finding i. 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."
individualThe 1 total parcel i . • • to specia property f ene its are s own on i'f - fix to
yearsManagement District Plan and this Report. The District and resultant assessment payments will continue for 10 more
and may be renewed again at thaeasons(purposes) for proposed . • outlined in Finding
2 above as well as in the Management District Plan. 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
`i RON . Y 1 f111:1111111
Assessment o ula Methodology
suitableof a i f.sic benefit unit. For property proposedDowntown
V
Downey CBDI the benefit unit may be measured in linear feet of street frontage or parcel size in square feet or building
size in square feet or number of building floors or any combination of these factors. Factor quantities for each parcel 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 ftinded by the CBD in order to determine any levels of
different benefit which may apply on a parcel -by -parcel or categorical basis�
- # I . OFffirr-M-MMl.
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
M402TO-31TITIM,
- ----------
estimated. It is noted, as stipulated in Proposition 218, and now required • all property based assessment Districts,
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
owned yro-verLy from being assessed and if svecial benefit is determined to be
conferred upon such properties, they must be assessed in proportion to special benefits conferred in a manner similar ts:
privately owned property assessments.
estimated net program costs by the total number of benefit units. The amount of assessment for each parcel can be
as "spreading the assessnil 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 PBID.
The method and basis of spreading program costs varies from one PBID to another based on local geographic conditions,
types of programs and activities proposed, and size and development complexity of the District. PBlDs may require
secondary benefit zones to be identified to allow fora tiered assessment formula for variable or "stepped -down" benefits
derived.
Step 1. Select "Basic Beneflt 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,
M
gill No 0 6102 RIM 0101" Igi 'm
contingency/reserve) it is the opinion of this Assessment Engineer that the assessment factors on which to base
assessment rates relate directly to the proportionate amount of building area, land area and street frontage, except as noted
herein, within two benefit zones.
The interactive application of building area, land area and street frontage quantities are a proven method of fairly and
equitably spreading special benefit costs to the primary beneficiaries of Downtown Downey CBD funded services,
j�Lograms and im-vrovenI Each of these factors exceLct as noted herein-;
each parcel will receive from Downtown Downey CBD funded activities.
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 district identity costs). In the opinion of this
Assessment Engineer, the targeted weight of this factor, building area, based on measured property characteristics, should
generate approximately 22% of the total Downtown Downey CBD revenue to proportionately fund the special benefit
Land area is a direct measure of the current and
or draw on certain Downtown Downey CBD funded activities (i.e. balance to sidewalk operationsibeautification costs,
and balance will fund 100% of program management costs and 100% of contingency/reserve costs). In the opinion of this
11111�1 I �� �l� �� 1�I� III �l!� I I
M= �_,,111111 illillill-ttolli#Mmrlltollrilc.Y*milolqI• I 1� I I I •71914mran Me.
Downtown Downey CBD revenue to proportionately fund the special benefit costs for these related programs and
services. It is noted that Benefit Zone 2 shall not be assessed Por land area.
trcet fronts 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.
Specialfl,rcumstances
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, multi floor residential 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 Of special benefit each residential condominium parcel will receive from targeted Downtown
2. Future Commercial and Mixed -Use Condominiums
While there are no current commercial or mixed-use condominiums within the proposed Downtown Downey CBD, it is
the oLiJnion 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 ]an uses as o ows:
Multi -Floor Commercial Only Condominiums
- Building area assessed at respective building area rate
- Lgaje ----------
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
UITIIZZH���
- Land assessed at land area rate (assessed on I st floor commercial condos for land area covered)
Other Future Develooment
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 in assessment formula methodology or rates other than as stipulated in this Report would require a new
Proposition 218 ballot procedure in order to approve any such changes.
The "Basic Benefit Units" will be expressed as a combined ftinction of gross building square footage (Benefit Unit "A'
land square footage (Benefit Unit "B"), street frontage (Benefit Unit "C") and residential condominium building are
(Benefit Unit "D"). Based on the shape of the Downtown Downey CBD, as well as the nature of the District progr
elements, it is determined that all identified properties will gain a direct and proportionate degree of special benefit base]
;Fn 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 indivi ua uil ing
Mrsy- In
in
Mewila KIM I I 1L
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 if7when 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
condominium building area, "Unit D".
Step 2. Quantify Total Basic Benefit Units
Taking into account all identified benefiting properties and their respective assessable bene i units, t ere are 1,153,99
Benefit Units A, 2,049,768 Benefit Units B, 15,195 Benefit Units C and 0 Benefit Units D. The measurable assessable
-29181-MOM MI,
Benefit Unit Quantities by_done, for YR I — 2018/19
Assessment Revenue by Factor fog .YR I — 2018/19
,Step 3. Calculate Benefit Units for Each Property.
The number of Benefit Units for each identified benefiting parcel within the Downtown Downey was computea om
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 mays or buildin records it does Vrovid
acceptable basis for the purpose of calculating property based assessrnents� 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.
IE
pigs 2 110 1 "'I'l
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
Engineer that the Downtown Downey CBD assessments will be based on building area, land area, and street frontage
except as noted within. The proposed assessment formula is as follows:
Assessment Building Area (Unit A) Sq Ft x Unit A Rate, plus
Ir"'.LM18ringm, MMUMMi ►
Assessment Formula Unit Rates Year I — 2018/19
zZone I Building Area Rate (Unit A)
$50,034.92 / 988,676 sq ft $0,050608/sa ft
Zone I Land Area Rate (Unit B)
$60,380.42 / 1,977,093 sq ft $0.030540/s ft
Zone 1 &2 Street Frontagg Ra (Unit Q
$121,970.35 / 14,936 linear ft $8.166199/lin ft
Residential Condo Rate[Lnit D JQ,20/s ft
L _-)
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
11IMM, 761067-4 am
WI
M
Total
lulmia i 1 It II 1
FYl FY2 FY3 FY4 FY5 FY6 FY7
$120,000.00 $126,000.00 $132,300.00 $138,915.00 $145,860.75 $153,153.79 $160,811.48
$55,000.00 $57,750.00 $60,637.50 $63,669.38 $66,852.84 $70,195.49 $73,705.26-
$481000M $50,400.00 $52,920.00 $55,566.00 s58,344.30 $61,261.52 $64,324.59
C, 1�, • s • • 1 l;w. • •1, $12576.80
$232,385.00 $244,004.25 $256,204.46 $269,014.69 $282,465.42 $296,588.69 $3119418.13
FY8 FY9 FY10 FY11 FY12 FY13 FY14 FY15
$168,852.05 $177,294.65 $186,159.39 $195,467.36 $205,240.72 $215,502.76 $226,277.90 $226,816.65
$77,390.52 $81,260.05 $85,323.05 $89,589.20 $94,068.66 $98,772.10 $103,710.70 $103,957.63
$67,540.82 $70,917.86 $74,463.75 $78,186.94 $82,096.29 $86,201.10 $90,511.16 $90,726.66
$13,205.64 - $13,865.92 $14,559.22 $15,287.18 $16,051.53 $16,854.11 $17;696.82 $17,738.95
$326,989.03 $343,338.48 $360,505.41 $378,530.68 $397,457.21 $417,330.07 $438,196.58 $439,239.90
15 Year Projected DistrictSpecial Benefit Crests not to exceed % annual increase
It is recognized that market con itions may cause the cost of providing goods and services to fluctuate from year to yea
Accordingly, . Association B► . • shall have1 reallocate 1 to 10% r i budget _ within the • • • _.
categories based on such cost fluctuations subject to the review and approval y the Board o Directors a inc: ude i
the Annual Planning Reportbe approved 1.,., the Oakland City Council.Accrued interest or delinquent i paymen
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 Bene its rom pecia ene its an e ate osts rop
Total costs are estimated at $237,125 (see Table below). General benefits are factored at 2% of total (see Finding 2 on
1 M_ W Nw I
1V IM L 11.7
to special benefits only, The 2% general benefit cost is computed to be $4,740 with a resultant 98% special benefit limit
comy.uted atfi=_385. M�I the madmim", wim thia edh be �Leriyed.L
j!Ubket CRQ h� A�M�si
Total Year 1— 2018 - Snecial + General Benefit Costs
F. ff Mr, IT 1 ".1
General + Stiecial Beneflt Revenue Sources
Revenue Source
.... . --------
I,Downtown Downey CBD Assessment Revenue - Year 1 — i0q 18)
Other revenues to fund general benefit costs . rants dues roo-rnm ;nirnmpl
3eneral and s•ecial benefits MIMI -an
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 may be imposed for future years of the Downtown Downey CBD (2018-2032).
M
YR 1 - 2018
YR 1 - 2018
YR 1 - 2018
% of Tota
Assessment
Non -Assessment
Total Costs
Costs
Costs
Sidewalk Operations
�District identity,
-Management . ....
,Conting"n y ----
F. ff Mr, IT 1 ".1
General + Stiecial Beneflt Revenue Sources
Revenue Source
.... . --------
I,Downtown Downey CBD Assessment Revenue - Year 1 — i0q 18)
Other revenues to fund general benefit costs . rants dues roo-rnm ;nirnmpl
3eneral and s•ecial benefits MIMI -an
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 may be imposed for future years of the Downtown Downey CBD (2018-2032).
M
11111i KIM91• !
FIFTEEN 15 YEAR AXI U ASSESSMENTRATES Not to exceed 5% per ear
Com onent
FYI
FY2
FY3
FY4
FY5
Linear Fronta e
$
8,1663
$
8.5746
$
9,0033
$
9.4535 -
$
9.9261
Buildin S . 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 S FFt.
$
0.20000
$
0.21000:
$
0.22050
$
0.23153
$
- 0.24310
Assessment Formula
Component
FY6
FY7 _
FY8 -
FY9
FY10 --
Linear Fronta e
$
10.4224 ,
$
10.9436
$ -
-11.4907
$
12.0653
$.__
12.6685
Building Sq. Ft.
$
0,064590
$--_
0.067820
$-
0.071211
$
0.074771
$
0.078510
_j2!§9 uare Ft.
$
0.038978_
$----0,040927
$
0.042973
$
0.045121
$
0.047378 -
Condo
$
0.25526
$
0.26802
$
0.28142 :
$
0.29549
-$
0.31027
Assessment Formula
Com onent
FYIl
FY12
FY13
FY14
FY15
Linear Fronta e
$
13.3020
$
13.9671
$
14.6654
$
15.3987
$
16.1686
Buildin S : Ft.
0.082435
$
0.086557
$
0.090885
$
0.095429
$
0.100200
Lot S uare Ft.
$
0.049746
$
0.052234
$
0.054845
$
0.057588
$
0.060467
Condo S . Ft.
$
0.32578
$
0.34207
$
0.35417 :
$
- 0.37713-
$
- 0.39599
Step 8. Spread the Assessments
the Management District Plan and were determined by applying the District assessment formula to each identified
Wuration As allowed by • CBD Law, the Dis ict wi ave a 15 year operationa termiginning Decemr 1
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.
M
•
ASSESSMENTS
APN
Annual
6254 018 005
$538.97
6254 021025
$1,072.70
Assessment
6254 018 023
$969.39
6254 021030
$5,032.22
6254 001 014
$2,843.36
6254 018 024
$3,682.74
6254 021031
$16,260.95
6254 001 017
$4,157.61
6254 018 028
$863.92
6254 021919
$6,620.60
6254 007 004
$2,676.44
6254 019 001
$2,445.95
6254 021922
$110.49
6254007013
$3,881.48
6254 019 003
$758.41
6254 021923 -
$3,145.08
6254 008005
$8,513.20
6254 019 004
$761.41
6255 001012
$724.83
6254 008 901
$5,104.96
6254 019027
$2,148.53
6255 002008
$2,204.26
6254 009 002
$2,017.23
6254019028
$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 009013
$773.36
6254 019901
$446.31
6255 002 011
$1,115.64
6254 009 014
$1,341.13
6254 019 904
$1,479.15
6255 002 012
$3,416.56
6254 009 900
$3,115.98
6254 020001
$119.80
6255 002 013
$4,067.92
6254 010 033
$4,042.44
6254 020 002
$717.73
6255 002023
$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 020 014
$1,160.47
6255 002 032
$5,888.06
6254 011 003
$2,010.28
6254 020017
$1,739.08
6255002 033
$2,255.23
6254 011008
$699.90
6254 020 020
$836.77"
6255 002 034
$2,831.13
6254 011010
$809.41
6254 020 023
$1,623.42 -
6255 002 900
$4,349.90
6254011012
$5,262.62
6254020 024
$451.43
6255 003001
$3,114.60
6254 011013
$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 012 008
$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 020808
$2,158.96
6255 003 018
$8,010.09
6254 012 011
$3,523.33
6254 020 903
$85.76
6255 003 019
$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 021023
$2,059.57
6254 016 912
$16,610.87
10 0
24
Filliql1i q iiiiiiETIRT a
Mil
Q
City of Downey
Summary Report
CITY OF DOWNEY
ASSErJ
SMENT BALLOT PROCEEDING RESULTS
Downtown oey Community Benefit District, Tuesday, July 2, 2018
Total YES/NO Ballots Counted: 41
Total Ballots Not Counted: s
Total Ballots Casts:: 46
Turnout: 56.1%
Name: 4 lei -J C -ti- t§ -L.-
Signature:
Name: �. Q �=� � a
Si natur :
Approved As To Fo is
Name: 10 I t
7
Signature:_
Downtown Downey CBD - Prepared by New City America, Inc. 7/12/18
Ballot Results
Total Asmnt Returned Ballots $
127,400.38
Annual
Ballot Response
APN
Legal Owner
Assessment
Yes/No
M
6255003 007
11015 Paramount LLC
$
1,153.76
Yes
$
-1
1,153.76
......._.4,067.92
$
-
6255 002 013
3637 Tweedy LLC
$
4,067.92
Yes
$
$
6255 001012
7th & Irolo Ltd/J.Anthony Kouba
$
724.83
Yes
$
724.83
$
_ v
6255 003 018
Amusement Industry Inc
$
8,010.09
Yes
$
8,010.09
$
6254 020 028
Apb Properties LLC
$
1,909.16
Yes
$
1,909.16
; $
-
6254019 003
Assistance League Of Downe
$
758.41
Yes
$
758.41
$
r
6254 009 012
Automobile Club Of America
$
3,328.59
$
-
$
6254 009 013
Automobile Club Of America
$
773.36
$
-
$
6254 001 014
BCSJ LLC
$
2,843.36
$
$
,6254 020 014
Bick Hanna
$
1,160.47
$
$
-
6254 012 011
Brooks Lance Dr. & Cathy Trs
$
3,523.33
No
$
$ .....3,881.48
3,523.33
6254 007 013
California Asset Properties
$
3,881.48
No
$
A
$
6254 008 901
City of Downey
$
5,104.96
$
$
6254 009 900
City of Downey
$
3,115.98
$
$
6254 016 912
City of Downey
$
16,610.87
$$
-
6254 019 900
City of Downey
$
446.34
$
p
$
6254019 901
City of Downey
$
446.31
$
$ _
6254020903
City of Downey
$
85.76
$
-
$
6254020913
City of Downey
$
1,165.79
6254 021 919
City of Downey
$
6,620.60
$
$
6254021 922
City of Downey
$
110.49 i
$
6254 021 923
City of Downey -
$
3,145.08
$
$
6255 002 900
City of Downey
$
4,349.90
$
$
-
6255 003 900
City of Downey
$
61,385.72
$
$
6254 019 904
Community_Dev Commission -Housing Succes
$
1,479.15
Yes
$
1,479.15
$
-
6254 020 003
D V R 2 Associates LLC
$
951.15
$
$
6254 020 017
DE LAS ALAS RAMON B TR ET AL VANLIN LLC
$
1,739.08
Yes
$
1,739.08
$
6254 012 009
DJokovic Esad
$
623.02
$
$
6254 011010 "
Downey Avenue Investments LLC
$
809.41
$
-
$
6254 019 001
Downey Avenue Investments LLC
$
2,445.95
$
-
$
-
6255 002 033
Downey Dolan He LLC
$
2,255.23
Yes
$
2,255.23
$
-
6255002 034
Downey Dolan He LLC
$
2,831.13
Yes
$
2,831.13
$
6254 020 029
Downey Housing Partners LP
$
2,003.14
Yes
$
2,003.14
$
6255 003 001
Downey S C Real Estate LLC
$
3,114.60
$
-
$
6254 012 013
Downey Schools Federal Credit Union
$
3,996.82
Yes
$
3,996.82
$
6254 019 027
DOWNTOWNEY PROPERTY LLC
$
2,148.53
Yes
$
2,148.53
$
6254 020 027
Fbcd Development Corp/Shepard Developmer
$
8,257.93
No
$
-
$
8,257.93
6254 018 005
First Baptist Church Of Downey
$
538.97
$
-
$
-
6254 019 028
First Baptist Church Of Downey
$
4,613.93
$
$
6255 002 032
GARF16LD BEACH CVS LLC Sublessee Benadom
$
5,888.06
$
q
$
a
6254 018 023
Gargas Kenneth
$
969.39
$
$
6254 001 017
Golden Nest Holdings LLC
$
4,157.61
No
$
-
$
_ 4,157.61
6254019 004
Granata Ralph & Jeanette
$
761.41
No
$
$
761.41
6254 011014
Granata Ralph & Jeanette Trs
$
1,188.60
No
$
$
1,188.60
6254 018 028
Hijazin Munther & Victoria
$
863.92
$
--
$
-
6255 002 008
HOAG FOUNDATION
$
21204.26
Yes
$
2,204.26
$
-
Page 1 of 2
APN
6255 002 009
6255 002 010
6255 002 012
6255 002 011
6254 020 001
6254007004
6254 009 014
Legal Owner
HOAG FOUNDATION
IRVIN CALLAN M LUCKY STORES INC LESSEE
IRVIN CALLAN M LUCKY STORES INC LESSEE
IRVIN CALLAN M LUCKY STORES INC LESSEE
Jervis Donald D & Margarret
JPJD LLC
Madiedo Eduvigis Trust
$
$
$
$
$
$
$
Annual
Assessment
3,231.19
977.35
3,416.56
1,115.64
119.80
2,676.44
1,341.13
Ballot Response
Yes/No
Yes
Yes
$
$
$
$
$
$
$
3,231.19
-
119.80
-
$
$
$
$
$
$
$
6255 002 023
Metropolitan Life Insurance Co
$
2,775.94
$
$
6255 002 028
Metropolitan Life Insurance Co
$
4,739.43
$
-
$
6254 020 023
Napoli Family Trust
$
1,623.42
Yes
$
1,623.42
$
6254 020 025
Paliobeis Haralarnbos Co Tr
$
533.85
Yes
$
533.85
$
6254011008
Paliobeis Haralarnbos Co Trust
$
699.90
Yes
$
699.90
$
6254020020
Perez Javier Trust
$
836.77
$
-
$
6254021023
RU 11 Ern Downey LP/Hilton
$
2,059.57
No
$
$
2,059.57
6254021025
RU 11 Ern Downey LP/Hilton
$
1,072.70
No
$
$
1,072.70
6254021030
RU 11 Em Downey LP/Hilton
$
5,032.22
No
$
$
5,032.22
6254021031
RU 11 Em Downey LP/Hilton
$
16,260.95
No
$
$
16,260.95
6254 012 010
Self Dale & Karen Trust
$
2,137.21
$
$
-
6254011003
Showprop Downey LLC
$
2,010.28
Yes
$
2,010.28
$
6254011013
Showprop Downey LLC
$
2,435.07
Yes
$
2,435.07
$
6254020002
Sipos Emery & Elizabeth Farn Tr
$
717.73
Yes
$
717.73
$
6254 012 008
Skill Cameron & Mary, David & Sharmon
$
596.39
$
$
-
6254 020 024
Soupos Thomas & Barbara
$
451.43
No
$
-
$
451.43
6254 018 024
Southern California Bank/ US Bank
$
3,682.74
Yes
$
3,682.74
$
-
6254 008 005
Spirit Master Funding X LLC
$
8,513.20
Yes
$
8,513.20
$
6254011012
Square & Compass Bldg Assn Inc
$
5,262.62
No
$
-
$
5,262.62
6254009002
Sterner Fred & Ada
$
2,017.23
No
$
2,017.23
,6254 010 033
Tricities Cal Properties LP/Porton
$
4,042.44
Yes
4,042.44
$
-
6254 010 034
Tricities Cal Properties LP/Portos
$
2,905.38
Yes
$
2,905.38
$
6254 010 035
Tricities Cal Properties LP/Porton
$
5,517.83
Yes
$
5,517.83
$
6254 012 015
Tsai Hsiu & Chyong J Trs
$
1,559.58
$
-
$
6255 003 019
TYLE 8206 LLC
$
2,185.15
$
$
.6255 003 005
TYLE 8210 LLC
$
891.16
$
$
6255003006
TYLE 8210 LLC
$
564.85
$
$
-
6255 003 015
TYLE 8218 LLC
$
2,659.70
$
6254 020 808
Verizon California Inc / Frontier Communicatid
$
2,158.96
Yes
2,158.96
$
-
TOTAL ASSESSMENTS[
$232,385.69
73,473.30
$
53,927.081
Page 2 of 2