Managing the Future ofDowntown Santa Monica

Project Update

Managing the Future ofDowntown Santa Monica

Project Update

Progressive Urban Management Associates, Inc.Kristin Lowell Inc.

March 25, 2008

Progressive Urban Management Associates, Inc.Kristin Lowell Inc.

March 25, 2008

Why Develop a New Management Approach Now?Why Develop a New Management Approach Now?

• New competition

• Ongoing concern with cleanliness, parking, infrastructure and street populations

• Create certainty & redefine city resources and commitment

• Opportunity to balance goals – real estate vs. community asset

• Refresh Bayside management model

• New competition

• Ongoing concern with cleanliness, parking, infrastructure and street populations

• Create certainty & redefine city resources and commitment

• Opportunity to balance goals – real estate vs. community asset

• Refresh Bayside management model

Property-Based Assessment DistrictProperty-Based Assessment District

Progress through March of 2008• Framework developed in 2006-07, presented to City Council

April 2007

• Working Group & City of Santa Monica staff have reviewed emerging work program, budget and assessment scenarios since summer of 2007

• Status report to City Council in January 2008

• Responding to Council direction, open forums and an online survey were undertaken in February

Progress through March of 2008• Framework developed in 2006-07, presented to City Council

April 2007

• Working Group & City of Santa Monica staff have reviewed emerging work program, budget and assessment scenarios since summer of 2007

• Status report to City Council in January 2008

• Responding to Council direction, open forums and an online survey were undertaken in February

Property-Based Assessment DistrictProperty-Based Assessment District

Nearly 500 responses from online community survey…• Top priorities: Reduce Homelessness (75%), Improve Parking

(55%) and Enhance Cleaning (47%)

• Ambassadors Services: Work to Reduce Homelessness (55%), Serve as Witnesses (35%), Neighborhood Watch (33%)

• More than 88% of respondents thought the proposed services would improve downtown

• Of those responding as downtown property owners, businesses or residents, nearly 80% indicated that services would directly benefit them.

Nearly 500 responses from online community survey…• Top priorities: Reduce Homelessness (75%), Improve Parking

(55%) and Enhance Cleaning (47%)

• Ambassadors Services: Work to Reduce Homelessness (55%), Serve as Witnesses (35%), Neighborhood Watch (33%)

• More than 88% of respondents thought the proposed services would improve downtown

• Of those responding as downtown property owners, businesses or residents, nearly 80% indicated that services would directly benefit them.

Property-Based Assessment DistrictProperty-Based Assessment District

Maintenance Program

• To create budgets models, the City and Bayside have evaluated downtown maintenance, parking structures & alleys

• National contractor estimate for supplemental cleaning in remainder of downtown @ $1.3M annually

• Seven days a week, litter removal, machine sweeping, graffiti removal, landscaping, emergency cleaning, etc.

• All resources to be combined and jointly managed

• All work to be performed according to City standards

Maintenance Program

• To create budgets models, the City and Bayside have evaluated downtown maintenance, parking structures & alleys

• National contractor estimate for supplemental cleaning in remainder of downtown @ $1.3M annually

• Seven days a week, litter removal, machine sweeping, graffiti removal, landscaping, emergency cleaning, etc.

• All resources to be combined and jointly managed

• All work to be performed according to City standards

Property-Based Assessment DistrictProperty-Based Assessment DistrictAmbassador Program

• National contractor estimate for ambassadors deployed on foot & bicycle throughout downtown @ $1.2M annually

• Seven days a week averaging15 hours per day

• Includes restroom attendants• New for downtown• Operating standards to be

developed with City staff

Ambassador Program

• National contractor estimate for ambassadors deployed on foot & bicycle throughout downtown @ $1.2M annually

• Seven days a week averaging15 hours per day

• Includes restroom attendants• New for downtown• Operating standards to be

developed with City staff

Property-Based Assessment DistrictProperty-Based Assessment District

Homeless Outreach,Marketing & Special Projects

• Homeless programs supportingCity or other established efforts

• Explore transportation alternatives

• Downtown urban design

• Marketing and promotions

• Create ability for bonding in the future

Homeless Outreach,Marketing & Special Projects

• Homeless programs supportingCity or other established efforts

• Explore transportation alternatives

• Downtown urban design

• Marketing and promotions

• Create ability for bonding in the future

Draft PBAD BudgetDraft PBAD Budget

Enhanced Maintenance $ 1,289,000

Ambassador Program $ 1,228,000

Downtown Marketing $ 400,000

Homeless Outreach $ 100,000

Special Projects $ 250,000

Administration $ 326,700

$ 3,593,700

Property-Based Assessment DistrictProperty-Based Assessment District

Assessment Methodology

• Different weighting between Promenade, remainder of Bayside/Ocean and remainder of Downtown

• Acknowledges differences in values, frequency of services

• Adjusted rate for residential & government – pay for maintenance & ambassadors only

• Adjusted rate for non-profits

• Assessment applied to building or lot square footage, whichever is greater

Assessment Methodology

• Different weighting between Promenade, remainder of Bayside/Ocean and remainder of Downtown

• Acknowledges differences in values, frequency of services

• Adjusted rate for residential & government – pay for maintenance & ambassadors only

• Adjusted rate for non-profits

• Assessment applied to building or lot square footage, whichever is greater

PBAD Assessment EstimatesPBAD Assessment Estimates

Annual Rates Building or Lot Sq. Ft.

Promenade $ 0.767

Bayside/Ocean $ 0.384

Downtown East $ 0.192

Res/Exempt: Bayside $ 0.273

Res/Exempt: Downtown $ 0.137

Public Parking Structures $ 0.137

Non-Profits: Bayside $ 0.137

Non-Profits: Downtown $ 0.068

PBAD GovernancePBAD Governance

Bayside as the Governing Board (13 members)

• Develop budgets, adjust annual assessments, oversight for day-to-day service delivery

• One-half City Council appointed (6 appointees)

• One-half Property-owner appointed (6 appointees)

• One City Manager or designee

• Goal is to have a mix of downtown property owners, downtown businesses, downtown and Santa Monica residents, and representation from each zone

Bayside as the Governing Board (13 members)

• Develop budgets, adjust annual assessments, oversight for day-to-day service delivery

• One-half City Council appointed (6 appointees)

• One-half Property-owner appointed (6 appointees)

• One City Manager or designee

• Goal is to have a mix of downtown property owners, downtown businesses, downtown and Santa Monica residents, and representation from each zone

PBAD Relation to Existing BIDsPBAD Relation to Existing BIDs• Existing CBD business license BID would be eliminated

• Existing Bayside business license BID would be modified – reduce assessment rate, expand boundaries to include Santa Monica Place

• Duration – 20 years with a district vote required to extend assessments beyond year 10

• Existing CBD business license BID would be eliminated

• Existing Bayside business license BID would be modified – reduce assessment rate, expand boundaries to include Santa Monica Place

• Duration – 20 years with a district vote required to extend assessments beyond year 10

PBAD EndorsementsPBAD Endorsements• Working Group

• Bayside Board of Directors

• “Supporters of the Downtown PBAD”

• Working Group

• Bayside Board of Directors

• “Supporters of the Downtown PBAD”

SUPPORTERS OF THE DOWNTOWN PROPERTY BASED ASSESSMENT DISTRICT

Allen Freeman, JSMBarbara Bryan, Interactive CaféBarbara Tenzer, Tenzer Commercial BrokerageBill Tucker, Tucker Investment GroupBruria Finkle, Artist and SM Resident

Chris Jones, Holiday Inn at the PierDavid Khedr, Khedr Management GroupDr. Alan Mont, Property OwnerEllis O'Connor, Fairmont Miramar HotelEric and Crystin Sedman, Property Owners

Ernie Kaplan, Century Commercial

Jan Sweetnam, Federal RealtyJanet Morris, Property Owner, Greater Promenade AssociationJennifer Hranilovich, BDC Vice Chair and SM ResidentJohn Warfel, Metropolitan PacificJudy Abdo, SM Resident and Former mayorKelley Wallace, Above the Fold NewstandLaRae Mardesic-Bechmann, ChrysalisMichael Farzam, Ocean View Hotel, Travelodge/Pacific Sands MotelRandy Brant, MacerichRick Stoff, ChrysalisRob Rader, BDC Boardmember, SM ResidentTodd Flora, BDC Boardmember & SM ResidentWally Marks, Jr., Walter Marks RealtyAnd more to come…

PBAD Next Steps…PBAD Next Steps…

• Petition campaign to secure property owner support (spring 2008)

• Mail ballot to approve assessments (summer 2009)

• City Council ordinance to create district (summer 2008)

• PBAD begins new services (January 1, 2009)

• Petition campaign to secure property owner support (spring 2008)

• Mail ballot to approve assessments (summer 2009)

• City Council ordinance to create district (summer 2008)

• PBAD begins new services (January 1, 2009)

Managing the Future ofDowntown Santa Monica

Project Update

Managing the Future ofDowntown Santa Monica

Project Update

Progressive Urban Management Associates, Inc.Kristin Lowell Inc.

March 25, 2008

Progressive Urban Management Associates, Inc.Kristin Lowell Inc.

March 25, 2008