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Home My WebLink AboutR-2008-114 Disestablish PBIA; Parking and Business Improvement AreaRESOLUTION NO. R-2008-114 A RESOLUTION of the City Council of the City of Yakima expressing the intent of the Council to disestablish the previously established Parking and Business Improvement Area Number One (hereinafter PBIA) formed to allow the collection of special assessments from Yakima downtown business owners and operators for the specific purposes set forth in said previously established PBIA; and setting the date, time, and place for a public hearing on August 6, 2008, at 7:00 p.m., for consideration of said disestablishment. WHEREAS, in 1974, by Ordinance 1720, the Yakima City Council established the City of Yakima's Parking and Business Improvement Area No. 1, described within the body of said Ordinance and established as a perpetual PBIA; and WHEREAS, in 1996, by Ordinance 96-32, the Yakima City Council reformed and reestablished the downtown Parking and Business Improvement District No. 1, described therein, and indicated that said PBIA was intended to be terminated after six years; and WHEREAS, in 2002, by Ordinance 2002-26 the Yakima City Council reformed and reestablished the downtown Parking and Business Improvement Area No. 1 and designated that the PBIA so reformed and reestablished was to terminate after six years; and WHEREAS, the Yakima City Council now intends to terminate said existing PBIA No. 1 in order to 1) consider the intent expressed by petition to establish a new Downtown Yakima Business Improvement District within an area that generally encompasses the areas included within the existing PBIA No. 1, and 2) to fulfill the intent expressed in the Ordinance reforming PBIA No. 1 that the PBIA be disestablished after a specified period of years; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Yakima, Washington, as follows: There shall be a public hearing held in the City Council Chambers at Yakima City Hall, Yakima, Washington on Wednesday, August 6, 2008, at 7:00 p.m., for consideration of the City Council's intent to disestablish PBIA No. 1, thereby terminating the collection of special assessments associated with said PBIA, as well as terminating the provision of benefits and services derived through said special assessments for the related PBIA area. ADOPTED BY THE CITY COUNCIL this 15th day of , 2008. ATTEST: David Edler, May AL -1"1-6'-k ft -La_ City Clerk (jc)res/Disestablishment of 1 PBIA No. 1 • Committee For Downtown Yakima PO Box 881 Yakima, Wa 98907 July 11, 2008 Mayor Dave Edler City of Yakima 129 South Second Street Yakima, WA 98902 Re: 60% Certification of the New Downtown Yakima Business Improvement District Mayor Edler, On behalf of the Committee for Downtown Yakima Board of Directors, I am happy to inform you that we have reached our goal of getting over 60% of the required signatures to create the new Downtown Yakima Business Improvement District. The signed petitions at the time of this letter represent $130,502, which is 60.051% of the total assessments that will be paid. The total district size would be $217,317 in the first year. I have attached a sheet that displays the names of each of the signers and the amounts they would pay under the new Downtown Yakima Business Improvement District. When we began this process, we believed $221,298 would be collected based on the information that we had at the time. Upon starting the process, we began receiving some notes from business owner saying they were not located in downtown, had moved out of downtown or even gone out of business. One property owner, Jobil Properties (Coca Cola on 6th Avenue), sold their property to the Yakima School District, which therefore exempted their three parcels from the process (remember, government does not pay under state law). This ultimately lowered our base number to $217,317. Those petitions that we excluded will be on file by the time of the July 15th City Council meeting as well as all the signed petitions from the entire process. In the early part of this process, we knew the difficulties we would face in getting signatures from certain property owner types and locations throughout the district To this effect, we worked hard to build an assessment methodology that we felt could be as fair as possible: a 40% discount for non-profit property owners and a separate, lower assessment zone for the property owners on both north and south side of Yakima Avenue facing parcels on the "west side" of Yakima Avenue. The district includes a total of 53 non-profit parcels that represent $16,149 in potential annual assessments. There are a total of 487 for profit property parcels that represent a total of $159,974 in potential annual assessments. Finally, there are 416 in $100 business license fees that represent $41,600 in total assessments. The work to get to this point has been a true team effort with a cast of many stepping up to help us gain signatures, provide input on the variety of services needed downtown and, in general, expressing their enthusiasm for the new feel of their downtown and place to do business. Our only regret is we wish we had more time to reach out to more potential rate payers, but scheduling 600 meetings is a tall order for any organization. We thank you for the opportunity to present this to you and the rest of the Yakima City Council and we look forward to the challenges ahead in making our downtown a better place to visit and do business. We also would like to thank the city staff, who provided timely and accurate advice to make sure we conducted the petition process legally and correctly. Sincerely, Z(ic&_o Jamie Stickel President, Committee For Downtown Yakima Board of Directors • • • • Business Owner Petition Signature Page I have received copies of the "Downtown Yakima Management Plan" and "Initiation Petition Document". As a downtown business owner I am in favor of creating the Downtown Yakima Parking and Business Improvement Area for the purposes set forth in the Management Plan and Petition Document. I hereby petition the Yakima City Council to formally establish the Downtown Yakima Parking and Business Improvement Area. I certify that I have the authority to sign this petition for each of the businesses listed below. Please Print Name Date Signature Business Business License # Assessment Total Assessment To Be Paid Property Owner Petition Signature Page I have received a copy of the "Downtown Yakima Management Plan/Initiation Petition Document of which this signature page is a part". As a downtown property owner I am in favor of creating the Downtown Yakima Parking and Business Improvement Area for the purposes set forth in the Management Plan/Petition Document. I hereby petition the Yakima City Council to formally establish the Downtown Yakima Parking and Business Improvement Area. I certify that I have the authority to sign this petition for each of the parcels listed below. Please Print Name Date Signature Property Owner 230930 INC 230930 INC 230930 INC 230930 INC 230930 INC 230930 INC Total Assessment To Be Paid $3625 Parcel Number 19131911022 19131911023 19131911025 19131911030 19131911031 19131911507 Assessed Value $69600 $30250 $546050 $525650 $10850 $2689300 Assessment $65 $28 $511 $492 $10 $2,519 •Downtown Yakima Business Improvement Update Property Owner Name Total J&J Company $ Donaldson $ Magana $ Vance Scriener Investment $ Killidesert LLC $ Kyle Trustee $ Cavanaugh's Hospitality Limited Partnership $ Hilliard $ Adaptis Inc BL $ Assoc Daybreak Property Management BL $ Associated Pension Consultants BL $ Attic Clutter $ B&C Sewing Machine Service $ Bank of the West BL $ Banner Bank BL $ Bob Hall Financial BL $ Cafe Melange BL $ Capitol Advisors BL $ Capitol Theatre Committee BL $ Cascade Fire and Safety BL $ Cascade Wine Company BL $ Catholic Credit Union BL $ IIICentral Valley Bank BL $ Chartconnect Inc. BL $ Community Resource Group BL $ Cook Northwest BL $ Designts LTD BL $ Williams C Donald MD $ Effective Communication $ Essencia BL $ Fisher Consulting $ Fosseens $ Edelwiess BL $ Garden Dance BL $ Graphic Label Inc BL $ Gray & Osborne $ H&H Furniture BL $ Inland Lighting $ Jan Drenguis MSW BL $ Janitor Closert BL $ Kameo Flower Shop INC BL $ Kana Winery BL $ Kiki Restaurant $ Kimmel Athletic Supply Company $ Larson Berg Perkins BL $ Law Office of Thomas Nagle $ •Les Schwab Tire Center BL $ Lightning Graphics BL ' $ Lin Pauls BL $ Little Soapmaker BL $ - 07-1 1-08 35.00 39.00 42.00 54.00 73.00 82.00 87.00 92.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 Lyon Law Office BL $ 100.00 Massat Winery BL $ 100.00 Moss Adams BL $ 100.00 Patricia Byers BL $ 100.00 Pawn Shop BL $ 100.00 Pechtel BL $ 100.00 Peoples Trendsetters $ 100.00 Pete's BL $ 100.00 Red Lion Yakima BL $ 100.00 A-1 Jumpers $ 100.00 Santiagos BL $ 100.00 Service Group BL $ 100.00 Silverheels BL $ 100.00 Sportscenter BL $ 100.00 State Farm Insurance BL $ 100.00 Stems BL $ 100.00 Sub Shop of Yakima BL $ 100.00 Sunfair Marketing BL $ 100.00 Durrett and Associates BL $ 100.00 Tim Weaver Attorney at Law BL $ 100.00 Tuxedo Place BL $ 100.00 TWL BL $ 100.00 Uptown Plaza BL $ 100.00 URM Cash and Carry #4 $ 100.00 US Bank BL $ 100.00 Vida Rug and Gallery BL $ 100.00 Wardell Architects BL $ 100.00 Wells Fargo BL $ 100.00 Yakima Bears BL $ 100.00 Yakima Bindery BL $ 100.00 Yakima Fed Savings and Loan BL $ 100.00 Yakima Herald Republic BL $ 100.00 Yakima Regional BL $ 100.00 YMCA BL $ 100.00 Buhrmaster Baking Company BL $ 100.00 Keller $ 102.00 Bailey $ 106.00 Bonlender $ 106.00 Luring $ 107.00 Miller $ 108.00 Mabry $ 109.00 Riley $ 121.00 Hahn $ 124.00 Owen $ 127.00 Parrish Family Trust $. 132.00 Yakima Co Coalition for the Homeless YWCA $ 152.00 Central Washington Comprehensive Mental Health $ 158.00 Columbia River Bank $ 161.00 M&L Kirk LLC $ 169.00 Mahre $ 170.00 Rezaie $ 176.00 Brown $ 177.00 • • • Nettleship Family Trust $ 178.00 Pechtel $ 179.00 CFIRE LLC $ 181.00 Joe Mann / Stephenson $ 186.00 Graphic Properties LLC $ 197.00 PPB & SP LLC $ 199.00 Keeter $ 203.00 Napolitano $ 223.00 Dix $ 226.00 Yakima Valley Museum $ 227.00 Ha . ' $ 242.00 Little $ 248.00 Rose $ 252.00 Hellisen Lumber $ 253.00 Cozzocrea $ 255.00 Cheney Sports Incorporated $ 256.00 Noel $ 279.00 Greater Yakima Chamber of Commerce $ 284.00 Vance $ 287.00 The Grand Hotel LLC $ 308.00 Lewis, Limited $ 318.00 Newton LLC $ 325.00 Rayner , $ 325.00 Standard Paint & Decorating $ 325.00 Hajoca Corp $ 326.00 Connell $ 327.00 Hanley $ 330.00 Grabenstein $ 335.00 Noel Corporation $ 335.00 Peterson $ 337.00 Seabib Properties $ 349.00 Trick $ 349.00 McCartney $ 365.00 Villbrandt $ ' 368.00 M&G Property Partners $ 374.00 Semon $ 391.00 United Builders of WA . $ 393.00 US Bank Cash Facility $ 401.00 KGB & D LLC $ 422.00 Sportscenter $ 437.00 Capitol Theatre Committee $ 452.00 Yakima Bindery $ 472.00 JEM Properties $ 528.00 Les Schwab Tire Center $ 539.00 Picatti Brothers $ 563.00 Hull $ 576.00 Loofburrow $ 577.00 R&E Real Estate $ 582.00 Harman Management Corporation $ 585.00 Lund Building $ 586.00 John Hass $ 592.00 Hollingberry CA & Cold Storage $ 609.00 Wilson Roger $ 616.00 Central Valley Bank $ 646.00 Steve Zien $ 660.00 Schneider $ 670.00 Larson $ 706.00 Lyon Law Office $ 724.00 Adamson Properties $ 757.00 Chestnut Manor $ 778.00 Yakima National Bank $ 785.00 Kissling $ 812.00 LADY LIBERTY $ 821.00 DA Arthur $ 824.00 Dick Graf $ 879.00 Bon Lofts $ 899.00 Mills Yakima Properies LLC $ 909.00 Mercy Development Company $ 984.00 Noel Canning Corporation $ 1,002.00 Melotte $ 1,031.00 YMCA . $ 1,038.00 Wells Fargo $ 1,052.00 Mach V Properties $ 1,061.00 US Bank Main Office and Drive In $ 1,097.00 Basalt Investment Limited Partnership $ 1,148.00 Yakima Avenue Investments LLC $ 1,164.00 Pacific West Bank $ 1,195.00 Yakima Hospitality LLC $ 1,283.00 Joe Mann $ 1,351.00 Morrier Family Realty LLC $ 1,371.00 UBA TUBA $ 1,387.00 Catholic Credit Union $ 1,420.00 HR Spinner Corporation $ 1,422.00 Yakima Properties $ 1,427.00 Emerald Holdings $ 1,450.00 Naches Hotel LLC $ 1,704.00 Schneider Development Company $ 1,704.00 Yakima Fed Savings and Loan $ 1,977.00 Michelson Packaging Company $ 2,253.00 Sunfair Professional Associates LLC $ 2,265.00 Banner Bank $ 2,328.00 Larson Building LLC $ 2,367.00 GMRI $ 2,473.00 Key Bank $ 2,532.00 Properties West $ 2,737.00 230930 Inc $ 3,625.00 WCH 807 LLC $ 4,01 1.00 Yakima Mall Shopping Center $ 4,763.00 Yakima Herald Republic $ 4,890.00 Yesterday's Village $ 9,365.00 Morrier Hotel $ 9,587.00 The Tower LLC $ 9,587.00 Total $ 130,502.00 60.051% • • • • MEMORANDUM TO: Honorable Mayor Edler, Members of City Council Dick Zais, City Manager FROM: Jeff Cutter, Sr. Assistant City Attorney DAI'E: June 4, 2008 SUBJ: PBIA assessments - religious and non-profit organizations In response to the ongoing efforts of the Committee for Downtown Yakima (CDY) to obtain sufficient downtown property and business owner support for a new downtown Business Improvement District to replace the present PBIA, several local churches have raised objections to the propriety of including religious and non-profit organizations in the assessment plan. The religious organizations are represented in the presentation of their objections by the Yakima Association of Churches and Faith Communities (the Association). In its letter stating the points of objection to inclusion in the BID, three primary concerns have been raised, and are summarized as: (1) the Association was not invited to the BID planning sessions; (2) the amounts assessed, although reduced below the standard assessments charged to businesses in the area, will be difficult for the churches and non- profits to afford; and (3) the assessments raise concerns of historical and possibly legal issues with regard to the taxation of religious organizations. Generally, the Association suggests that participation by religious and non-profit organizations should be on a volunteer basis, not as a specifically determined assessment value as is the case with the other participating businesses in. the BID. This memorandum is intended to respond to the legal issue raised by the Association, that being the third point stated in the objection statement. In order to determine whether any protection from PBIA/BID assessments is provided under state statutory provisions I first reviewed specific RCWs authorizing PBIA's to determine whether any specific exemption is afforded non -profits and/or religious organizations. The only provisions within RCW Chapter 35.87A that might have some bearing on the issues raised by the Association are set forth as follows: RCW 35.87A.080 provides, in relevant part, "[for purposes of the special assessments to be imposed pursuant to this chapter, the legislative authority may make a reasonable classification of businesses....giving consideration to various factors such as business and occupation taxes imposed, square footage of the, business, number of employees, gross sales, or any other reasonable factor relating to the benefit received, including the degree of benefit received from parking." (jc)memo/PBIA-Religious and Non -Profit Exemption I What this section provides is a means by which the legislative body can determine classes or classifications of the varying businesses and establishments within a PBIA area in order to account for varying benefits received by different businesses so that the assessments are commensurate with the benefit conveyed. Therefore, if one type of business utilizes parking much more heavily than another business type within the same PBIA area, the legislative body may establish a classification for the heavy parking type businesses to reflect a higher parking assessment to those businesses, in order for the assessments to be equitable. RCW 35.87A.090 provides, in relevant part, "[t]he special assessments need not be imposed on different classes of businesses...as determined pursuant to RCW 35.87A.080, on the same basis or the same rate." Again, the legislative authority is given discretion to assess different classes of business establishments in different ways, based upon the varying benefits conferred by the improvements provided by the PBIA. RCW 35.87A.170 provides "[b]usinesses or multifamily residential or mixed-use projects established after the creation of an area within the area may be exempted from the special assessments imposed pursuant to this chapter for a period not exceeding one year from the date they commenced business in the area." This provision is self-explanatory and would only provide relief for a new business locating within the PBIA area for one year, after which time the business would become obligated to participate in the PBIA on the same basis as similarly classified businesses. Beyond these provisions there is no information within the statutes that addresses specific exemptions for particular establishments from the assessment responsibility. What can be gleaned from the PBIA Chapter are the consistent references to both the purposes to be served by the PBIA, and to its, application to businesses, multifamily residential properties and mixed-use projects within the area. The purposes encompass a list of seven stated objectives, represented as follows in RCW 35.87A.010 (1): "a. The acquisition, construction or maintenance _ of parking facilities for the benefit of the area; b. Decoration of any public place in the area; c. Sponsorship or promotion of public events which are to take place on or in public places in the area; d. Furnishing of music in any public place in the area; e. Providing professional management, planning, and promotion for the area, including the management and promotion of retail trade activities in the area; f. Providing maintenance and security for common, public areas; or g. Providing transportation services for the benefit of the area." It is noteworthy that the list of purposes is not inclusive, but rather may be exclusive to any one of the seven specified in the statute. Therefore, it may be presumed that if the (jc)memo/PBIA-Religious and 2 Non -Profit Exemption • establishments within the PBIA area are benefitting from any of the provisions of the PBIA offered therein through the special assessments, then the assessments are reasonably required for those benefits. In the case of the City of Yakima's proposed BID, those establishments within the assessed area shall each benefit from the attractive decoration of the public downtown areas, the professional management of the area in the form of attractive appearance, promotion which will bring visitors that can benefit religious and non-profit organizations as well as retail businesses, and the provision of focused maintenance and security, both of which will be conducive to encouraging people to use and attend the area, churches and non-profit organizations included. It is evident that all individuals having places of work, worship or residence within the PBIA area will receive a benefit as a result of the assessments collected for the purposes proposed by the downtown BID. The special benefit is what is necessary in order to permit the assessments to be collected. Analysis of the propriety of assessing religious organizations and non-profit organizations located within a PBIA should also include review of any court cases that have addressed aspects of the statutes providing the framework for PBIA's in Washington. There have been very. few cases that have addressed the provisions of RCW Chapter 35.87A. For this reason, there is very little guidance available from the courts in the form of precedential decisions. Review of other cities' ordinances reveals that the only exemption that seems to appear fairly consistently is for properties owned by the federal or state governments, allowing voluntary payment if the government entity chooses to do so. It was also discovered by Sean Hawkins at CDY that Seattle has had two legal challenges to religious and non-profit assessments in the late 1990's, I presume at the Superior Court level since the cases do not appear to be reported, and the court agreed that the assessments were appropriate in each of the cases,. primarily on the basis that the organizations were property owners and as such, benefited and assessable. Seattle does provide a reduced assessment for these organizations, as is the case with Yakima's proposed BID. The unreported court decisions in Seattle would not provide precedent for any challenge that might be brought here, but it is useful to be aware of how other courts have resolved the issue. In conclusion, it is my opinion, based upon what I have learned from research, interaction with MRSC and information from other jurisdictions on this issue, that the City may asses the religious and non-profit organizations that are located within the proposed BID. I believe that these establishments do receive a special benefit as a result of their inclusion within the BID area and as such are subjectto participation in the assessment. The Council can choose to allow a reduced assessment if that seems just and reasonable in light of the benefit received by the organizations, and can .classify certain businesses and organizations with respect to what the appropriate assessment rate should be for such classifications. (jc)memo/PBIA-Religious and 3 Non -Profit Exemption V ELIKANJE July 1, 2008 ALVLfSONPc Yakima City Council 129 North Second Street Yakima, Washington 98901 Alan D. Campbell • West H. Campbell • James C. Carmody • J. Jay Carroll • Paul C. Dem James S. Elliott • Mark E. Fickes • Carter L. Fjeld • Chad L. Hatfield • Tyler M. Hinc Lawrence E. Martin • Kevan T. Montoya • Linda A. Sellers Michael F, Shinn • Sara L. Watkins. Of Counsel Frederick N Halverso RE: Yakima Business Improvement District Dear Councilmembers: RE IVED CITY OF YAKIMA JUL 0J2008 WIgI_ F CITY We are writing on behalf of a large number of nonprofit organizations located within the proposed Downtown Yakima Business Improvement District.' These organizations have been an integral part of the community and support the commitment to make the downtown area a welcome, friendly and safe place for both visitors and 'citizens. Each of the organizations has historically shared that commitment with thoughtful maintenance and improvement of their respective properties.. The primary focus of the charitable and faith based organizations, however, has been the provision of care and service to the poor, needy and underserved populations of our community. That service will always be a propriety. Yakima Downtown Business Improvement District is designed to supplement essential city services with programs like economic development, graffiti removal, beautification projects and maintaining streetscape enhancements. We applaud the commitment but recognize the realistic impact on nonprofit organizations associated with taxation. Every dollar assessment taken from the nonprofit is simply a dollar lost to a needed service. While the assessments may seem small in some instances, the impact can be significant on the organization. Examples of the assessment burden are St. Joseph Church ($4,121 per year); Suntower Retirement Home ($2,541 per year); Yakima Neighborhood Health Services ($1,292 per year); and Triumph Treatment Center ($861 per year). The tax extends to churches and their associated activities. As a policy choice, we believe taxation of nonprofits and faith based organizations unnecessarily and unwisely takes dollars from necessary public services. Second, the legislative authorization to levy special assessments extends only to "businesses and multi -family residential or mixed use projects within the area." RCW 35.87A.010(2). The term "business" does not commonly include nonprofit, charitable or faith based organizations. Webster's Dictionary defines business as "a usually commercial or mercantile activity engaged in as a means of livelihood," or alternatively, as "a commercial or sometimes an industrial enterprise." http:llwww.merriam-Webster.comldictionarylbusiness. The Internal Revenue Code Nonprofits represented are First Baptist Church, La Casa Hogar/Yakima Interfaith Coalition, People for People, St. Joseph's Church, St. Michael's Church, Sun Towers, Triumph Treatment Services, Vineyard Church, and Yakima Neighborhood Health Services. • • 509.248.6030 • fax 509.453.6880 • 405 East Lincoln • P.O. Box 22550 • Yakima, WA 98907 • www.vhlegal.com • Yakima City Council July 1, 2008 Page -2 defines business generally to include any activity carried on for the production of income from the sale of goods or performance of services (Treas. Reg. § 1.513-1(b)). And many nonprofit organizations are exempt from business and occupation taxes. RCW Ch. 82.04. It is our opinion that assessments are authorized under the statute only as to "businesses" and multi -family residential or mixed use projects. The statutory assessment authority does not extend to nonprofits and faith based organizations. Third, the assessment is tantamount to a property tax. A property tax is defined as an "absolute and unavoidable demand" against property and the ownership of property. Covell v. City of Seattle, 127 Wn.2d 874, 889, 905 P.2d 324 (1995). Under RCW Ch. 84.36, identified charitable, nonprofit and faith based organizations are exempt from property taxes. The legislative structure recognizes the inherent impact of taxation and assessments on nonprofit and charitable organizations. Each dollar taken by way of tax or assessment is a dollar lost to the provision of public and community services. The nonprofit organizations are prepared to continue their commitment to graffiti removal and property beautification. Those efforts, however, should be through their own structures and employees. The collective effort will result in the same ultimate benefit — an improved downtown environment. We are requesting that assessments be eliminated for nonprofit, charitable and faith based organizations. The statutory authority recognizes that classifications are permitted "...giving consideration to various factors such as business and occupation taxes imposed and other reasonable factors. RCW 35.87A.080. We appreciate the opportunity to comment. This will also confirm our commitment to work with the City Council in developing a practical and reasonable approach to this important task. Thank you for your consideration. Very truly yours, VELIKANJE HALVERSON, P.C. J : ES C. CARMOD jcc:srp Meeting Minutes For Downtown Yakima Futures Initiative (DYFI) Committee of the City Council June 24, 2008 Meeting Council Committee Members present: City Staff Members present: Norm Johnson, Chairman Kathy Coffey Rick Ensey Dick Zais Chris Waarvick Michael Morales Brett Sheffield Bob Degrosellier Invited Guests: Sean Hawkins, CDY Joe Mother Chairman Norm Johnson opened the meeting by introducing Joe Mother to discuss his new hotel project. Mr. Mother described that the hotel project would sit in the J C Penney footprint in the mall. The anticipated opening date would be spring of 2009. Mr. Mother advised the Council Committee that the Phase 3 street improvements on Naches Avenue would be very helpful to his project. He is awaiting the bid opening the City'is conducting for Phase 3 to see how far the project can go from the City's capital project. Mr. Morrier also discussed the streetscape improvements he anticipated for "A" Street between Naches and 3rd Street. Staff has discovered that ramps to the parking garage in the Mall are part of a Local Improvement District (LID) and as such are an asset of the City. If demolition is required, the City would be responsible for these costs. Mr. Mother also asked for. the vacation of the sidewalk on the south side of "A" Street" between Naches and 3rd Street. Brett Sheffield from Engineering discussed the Phase 3 project status. He described the project area and where they were with the bid opening date. Councilperson Coffey had a question regarding tree removal and replacement. Brett Sheffield ultimately responded that Phase 3 anticipates the removal of approximately 85 trees in the public right-of-way and being replaced by 65 new trees. Sean Hawkins briefed the committee on the status of the new Downtown Yakima Business Improvement District (DYBID). The formation of the DYBID involves disestablishing the current PBIA and establishing the new DYBID through a series of legislative steps to be taken over the next 60 days. • • • • The Committee moved and approved to send the DYBID issue to the full Council with no changes to the assessment roll; prior to this vote there was discussion concerning assessments for religious entities and non -profits. Finally, Chairman Johnson provided a recap of Association of Washington Cities (AWC) convention held the prior week in Yakima. Both Chairman Johnson and City Manager Dick Zais had received numerous positive comments about how well the conference was going and the improvements to downtown Yakima. It was noted that the City of Yakima received an award from AWC for its Downtown Improvement Project. The meeting then adjourned. Approved: Norm Johnson, Chairman DYFI Committee of Council twines Meeting Minutes DYFI June 24 2008 • • RESOLUTION NO. R -2008- A RESOLUTION of the City Council of the City of Yakima expressing the intent of the Council to disestablish the previously established Parking and Business Improvement Area Number One (hereinafter PBIA) formed to allow the collection of special assessments from Yakima downtown business owners and operators for the specific purposes set forth in said previously established PBIA; and setting the date, time, and place for a public hearing on August 6,2008, at 7:00 p.m., for consideration of said disestablishment. WHEREAS, in 1974, by Ordinance 1720, the Yakima City Council established the City of Yakima's Parking and Business Improvement. Area No. 1, described within the body of said Ordinance and established as a perpetual PBIA; and WHEREAS, in 1996, by Ordinance 96-32, the Yakima City Council reformed and reestablished the downtown Parking and Business Improvement District No. 1, described therein, and indicated that said PBIA was intended to be terminated after six years; and WHEREAS, in 2002, by Ordinance 2002-26 the Yakima City Council reformed and reestablished the downtown Parking and Business Improvement Area No. 1 and designated that the PBIA so reformed and reestablished was to terminate after six years; and WHEREAS, the Yakima City Council now intends to terminate said existing PBIA No. 1 in order to 1) consider the intent expressed by petition to establish a new Downtown Yakima Business Improvement District within an area that generally encompasses the areas included within the existing PBIA No. 1, and 2) to fulfill the intent expressed in the Ordinance reforming PBIA No. 1 that the PBIA be disestablished after a specified period of years; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Yakima, Washington, as follows: There shall be a public hearing held in the City Council Chambers at Yakima City Hall, Yakima, Washington on Wednesday, August 6, 2008, at 7:00 p.m., for consideration of the City Council's intent to disestablish PBIA No. 1, thereby terminating the collection of (jc)res/Disestablishment of PBIA No. 1 1 special assessments associated with said PBIA, as well as terminating the provision of benefits and services derived through said special assessments for the related PBIA area. ADOPTED BY THE CITY COUNCIL this day of July, 2008. ATTEST: David Edler, Mayor City Clerk (jc)res/Disestablishment of PBIA No. 1 2 • • RESOLUTION NO. R -2008- A RESOLUTION of the City Council of the City of Yakima, Washington, initiating the establishment of a Downtown Yakima Business Improvement District for the downtown area of the City and setting the time for a public hearing for August 6, 2008, at 7:00 p.m., for the consideration of establishing said District. WHEREAS, the City of Yakima, Washington (the "City"), has received an initiating petition from property owners and business owners and operators within the downtown Yakima area expressing a desire to establish a Downtown Yakima Business Improvement District (hereafter "DYBID") for a portion of downtown area of the City, in accordance with the procedures established by Chapter 35.87A RCW; WHEREAS, the petition received includes the signatures of property owners and business owners and operators in the proposed DYBID that would be responsible for the payment of more than sixty percent (60%) of the proposed special assessments for the identified District; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Yakima, Washington, as follows: Section 1. It is the intention of the City Council (the "Council") of the City of Yakima, Washington, to establish a Downtown Yakima Business Improvement District for a portion of the downtown area of the City, as provided under Chapter 35.87A RCW, for the purpose of assisting trade, economic vitality and livability within the area. The boundaries of the DYBID are identified in the initiating petition that accompanies this Resolution and are specifically described in Exhibit A and illustrated in Exhibit B, attached hereto and by this reference incorporated herein. Section 2. The uses and projects to which the special assessments shall be put are identified in the initiating petition that accompanies this Resolution and are set forth in Exhibit "C", attached hereto and by this reference fully incorporated herein. The special assessments shall be applied among the various uses and projects set forth in Exhibit "C" so as to accomplish, as nearly as may be possible, all such uses and projects for which said assessments are estimated and budgeted, as set forth in Section 4 hereof. If the City determines, in consultation with the Committee for Downtown Yakima ("CDY") that it has (jc)res/Downtown Yakima Business Improvement District 1 become impractical or undesirable to accomplish any of the described uses or projects set forth in Exhibit "C" by reason of increased costs, changed conditions or needs, alternative uses or projects may be substituted; provided, however, that such alternative uses or projects must include any one or more of the following: (a) The acquisition, construction or maintenance of parking facilities for the benefit of the area; (b) Decoration of any public place in the area; (c) Promotion of public events that are to take place on or in public places in the area; (d) Furnishing of music in any public place in the area; (e) Providing professional management, planning and promotion for the area, including the management and promotion of retail trade activities in the area; (f) Providing maintenance and security for common, public areas; and (g) Any other purposes that may hereafter be permitted under Chapter 35.87A RCW, as amended, or its successor statute, if any; and provided further that the City in consultation with CDY may not substitute any such alternative use or project for those set forth on Exhibit "C" if, within 30 days of the City's mailing notice of such proposed substitution to all businesses within the DYBID subject to assessments, objections in writing are received from operators of businesses that would be required to pay more than fifty percent (50%) of the proposed special assessments within such DYBID. All such uses and projects shall be supplemental to regular street maintenance provided by the City and shall not displace any services regularly provided by the City. Section 3. In the event that, following a public hearing such PBIA is established, special assessments shall be levied against all businesses within the PBIA to provide funds necessary for the purposes set forth in Section 2, and the special assessments shall be levied upon the following classes of business and at the following rates; provided, however, that businesses established after the DYBID has become effective shall be exempted from the special assessments imposed pursuant to this Ordinance for a period of one year from the date they commence business within the DYBID: A. Property Assessment The Downtown Yakima Business Improvement District property assessment utilizes Assessed Property Value to determine the assessment. Each property owner within the Downtown Yakima Business Improvement District shall pay an assessment (jc)res/Downtown Yakima Business Improvement District 2 • determined by the Yakima County Assessor's assessed value for the property owner's particular property as a percentage of the aggregate of all similarly assessed property values for all properties located within the corresponding DYBID Zone. The property's calculated DYBID assessment shall be determined at the time the DYBID is established and shall remain at that value throughout the term of this DYBID, unless amended in the interim by application of the statutory modification process set forth in RCW 35.87A.140, or as hereafter amended. B. Business Assessment The Downtown Yakima Business Improvement District business assessment shall be assessed based upon the City -issued business license. Each business license holder within the District shall be assessed a Downtown Yakima Business Improvement District assessment of $100. C. Non Profit Assessment Non -Profit organizations shall be assessed a reduced property assessment of sixty percent (60%) of the standard property assessment rate applied within the Zone the non-profit property is located in. There shall be no discount for the business license fee. Service Cost Allocations As Basis For Property Assessment There are differing service needs within the DYBID and therefore two (2) service zones with individually specific assessment rates would be established. The levels of appropriate service delivery within each zone are based upon an analysis of the current service delivery needs of the District and projected future needs over the term of the District. Each zone's assessment rate is calculated by determining the District -wide shared expenses applicable to both zones and the differing zone -specific maintenance expenses for each individual zone, allocating the final zone -specific expenses over the total assessed value within the applicable zone. The difference between Zone One and Zone Two assessments is the differing Zone -specific maintenance costs. Zone One receives additional seasonal maintenance services to maintain the increased landscaping therein. All other costs and services would be shared equally by both zones. Calculation of Property Assessments Based upon the property assessment methodology described above, property assessments for each Zone would be established as follows: Assessment Per Zone One Dollar of Assessed Value • $0.000937 (jc)res/Downtown Yakima Business 5 3 Improvement District Zone Two $0.000772 Section 4. The total estimated annual budgetary requirement from DYBID sources necessary to provide the services and uses described in Section 2 and Exhibit "C" is Two Hundred Twenty One Thousand Two Hundred Ninety Eight Dollars ($217,317.00). Section 5. If approved after public hearing, the special assessments described herein will be levied every year for three (3) years following the effective date of the ordinance establishing the District. If established, upon or before the third (3rd) anniversary of this DYBID the City Council shall take the legislative action described in RCW 35.87A.180 to effectively disestablish the DYBID established by the Ordinance. In order to timely fulfill the required disestablishment, in the month of May, 2011, the City Council shall adopt a resolution of intent to disestablish the DYBID, identifying the time and place of the public hearing to be set at least fifteen (15) days thereafter and advertised in accord with RCW 35.87A.050. During the public hearing the City Council shall approve, by Ordinance the disestablishment of the DYBID. The City may thereafter elect to initiate a new DYBID in accordance with the procedures for forming a' new District as established by RCW 35.87A or any successor statute, if any. Section 6. A public hearing shall be held in the City Council Chambers of City Hall, 129 North 2"d Street, on Wednesday, August 6, 2008, at 7:00 p.m., for public comment and City Council consideration of establishing the proposed Downtown Yakima Business Improvement District. ADOPTED BY THE CITY COUNCIL this 15th day of July, 2008. ATTEST: City Clerk (jc)res/Downtown Yakima Business Improvement District 4 David Edler, Mayor • • • • EXHIBIT "A" District Boundary The Downtown Yakima Business Improvement District is broken into two. The boundaries of each zone are described as follows: Zone One Zone One represents all the DYBID properties that have frontage on Yakima Avenue from the centerline of 8th Avenue east to centerline of 9th Street with the exception of parcel #18132442461 (First Presbyterian Church). Zone One also includes the current Holiday Inn express properties and Howard Johnson properties on the north side of Yakima Avenue backing up to Gateway Center. Those parcel numbers are 19131912547, 19131911507, 19131911022, 19131911077, 19131911023, 19131911025, 19131911026, 19131911031, 19131911030, 19131911029, 19131911027 and 19131911028. Also included in Zone One are all properties east of the railroad tracks from the centerline of Lincoln Avenue south to the centerline of Walnut Street to properties that have frontage on the eastside of Naches Avenue. East of Neches Avenue the Zone narrows to the centerline of Chestnut Street as the southern border. Zone One also includes parcels 19131913414, 19131913415, 19131913416, 19131913417, 19131913418, 19131913419 and 19131913420 which are on the west side of 6th Street between Chestnut Street and Walnut Street. The northern edge of Zone One in this area is the northern edge of the properties that includes the current Red Lion Hotel and its adjoining parking lot's edge, the Yakima Convention Center and its adjoining parking lot's northern edge and the Greater Yakima Chamber of Commerce and the adjoining parking lot's northern edge. Those northern parcels are 19131912414, 19131912561, 19131912560, 19131912447, 19131912505 and 1913191294. The northern section of Zone One also includes parcels 19131921472, 19131921473, 19131921474, 19131921475, 19131921476 and 19131921477 which face the centerline of 6"' Street between Martin Luther King_ and 'A' Street. Zone One includes approximately 41 blocks. Zone Two Zone Two represents the entire area that is north and south of the frontage properties along Yakima Avenue to the centerline of Lincoln Avenue and Walnut Street respectively and between the railroads tracks and 7th Avenue. Zone two also includes parcel # 18132442454 which is on the southeast corner of Summitview Avenue and 8th Avenue. All properties that have frontage on West Yakima Avenue from the railroad tracks west to centerline of 7th Avenue are included in Zone Two. Zone Two represents 36 complete blocks. (jc)res/Downtown Yakima Business Improvement District 5 (jc)res/Downtown Yakima Business Improvement District EXHIBIT "B" (Map of Zoned District) 6 • 0 1 inch equals 700 feet Cti Downtown Yakima Business Improvement District (DYBID) EXHIBIT "C" The Downtown Yakima Business Improvement District assessments shall be used to supplement the Committee for Downtown Yakima budget in order that the Committee can continue to provide services toward fulfillment of the following purposes, unless said purposes are modified in accord with Section 2 of the DYBID Ordinance: Clean Services The Committee for Downtown Yakima (hereafter "CDY") shall continue to supplement existing City of Yakima services by adding an additional 7,840 man hours of services throughout the Downtown Yakima Business Improvement District. CDY will use the best equipment available to ensure the most efficient approach to clean services. The services provided will include: • Pressure washing of sidewalks - CDY shall keep .the new sidewalk features looking sharp by pressure washing them on a regular basis to remove spills, dirt and gum. Further, CDY shall regularly clean all new street features including benches and water fountains. • Weed abatement - CDY shall constantly spray and remove weeds throughout the district • Daily trash removal - CDY shall pan and broom each sidewalk and curb in the district to remove trash and debris through the entire district. • Special Projects - CDY shall work with the City of Yakima and remain flexible to work on special projects that come up each year. • Graffiti Removal - A service of the CDY Clean and Safe Team will be immediate graffiti removal throughout the entire district from both public and private property. CDY's goal will be removal within 24 hours of the graffiti being reported. After receiving a signed waiver from a victimized property owner, CDY's clean team shall remove graffiti from private property at no charge. In the case of areas that receive graffiti damage regularly, CDY will gladly store extra paint to do the work on demand. CDY shall use a combination of chemicals and pressure washing equipment that are sensitive to the various surfaces in downtown Yakima. Safety Services The Committee for Downtown Yakima shall work actively to create a safe environment for visitors, customers and employees through the ambassador program by adding 4,512 annual security hours per year throughout the entire District. The program shall be active from April 15 to October 15 each year, seven days a week, eight hours a day. The CDY ambassadors shall be on the street from 11:00 - 7:30 p.m. daily. Their schedule will vary to accommodate special events and downtown activities. Each ambassador shall be connected through radio and cell phone to respond immediately to any downtown security issue. The ambassadors shall be trained to know local (jc)res/Downtown Yakima Business Improvement District 7 businesses and shall be a point of contact for those downtown users on the street who need help finding businesses and directions. Landscape and Special Projects The Committee for Downtown Yakima shall manage the hanging baskets, flower beds and flower pots throughout the District. The cost to maintain these displays and purchase the plants for them annually will come from Downtown Yakima Business Improvement District funds. On a weekly basis, CDY shall deadhead, fertilize and properly maintain the baskets, pots and planting areas to ensure a positive feel and attractive look to downtown Yakima. CDY anticipates spending approximately 30 man-hours per week on this project. The hanging baskets, flower beds and flower pots within the District shall be planted with a variety of flowers during the summer months and re -planted with fall -appropriate plants in mid September. All planting areas throughout the District shall be weeded and mulched. Economic and Business Development The Committee for Downtown Yakima shall continue to work toward attracting new businesses to the District and help retain the thriving business community of today. CDY shall do this by continuing to be a knowledge base for all available commercial and office spaces in the Downtown Yakima Business Improvement District and by actively recruiting new tenants. CDY shall also work closely with developers to grow the number of living units available within the District. Marketing/Communication The Committee for Downtown Yakima shall continue to market the changes occurring within the District and 'shall work to market the Downtown Yakima Business Improvement District to visitors and locals alike. • CDY shall continue to operate and expand the CDY website, which averages over 30,000 hits per month and 800 unique visitors. CDY shall work to expand individual listings for each District business to ensure that as many District businesses as possible have an internet presence. These services will only be available to the businesses within the District. • CDY shall continue weekly District email updates to over 500 subscribers to continue to inform the community about events, developments and people in the District. CDY shall actively expand this list. • CDY shall publish a bi-annual Downtown Yakima Business Improvement District restaurant guide to be distributed by the business community and the Yakima Valley Convention and Visitors Bureau. • CDY shall publish an annual Guide to Downtown Yakima that will feature listing of all businesses within the District, as well as other features of the District including a calendar of events and a map of the District. Advocacy/Leadership/Administration (jc)res/Downtown Yakima Business 8 Improvement District The following is a list of the staff positions required to do the work included in the management plan. All positions listed are full time, year round positions. Executive Director - the Executive Director of the Committee for Downtown Yakima is responsible for all fiscal oversight of all Business Improvement District programs with a major focus on economic development, retail development, residential development and advocacy. The Executive Director shall work to secure additional funding streams to enhance the Business Improvement District resources to provide for special projects that enhance the District. Director of User Experience - the Director of User Experience for the Committee for Downtown Yakima is responsible for all communications, marketing and outreach programs. The Director of User Experience shall manage the website and the production of all marketing materials, including the District shopping and restaurant guides. The Director of User Experience shall also work with the retailers and restaurants within the District to facilitate cooperative marketing and special events. Clean and Safe Team Supervisor - the Clean and Safe Team Supervisor manages all aspects of both the clean and safe teams, including the hiring, motivating and assignment of all clean and safe team members. The Clean and Safe Team Supervisor shall monitor the maintenance conditions throughout the District and create daily assignments to keep the District clean and safe. The supervisor position is a working position. The supervisor shall spend approximately 90% of his time working with the clean and safe team and 10% doing administrative work. Maintenance Foreman - the Maintenance Foreman is responsible for being the clean team's full time leader on the street The maintenance foreman shall constantly monitor the work of the clean team on a daily basis to ensure quality and shall interact with the District's business community to address solutions to maintenance needs. (jc)res/Downtown Yakima Business Improvement District 9 BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. For Meeting of: July 15, 2008 ITEM TITLE: (A) Consideration of a Resolution of the City Council expressing the intent of the Council to disestablish . the previously established Parking and Business Improvement Area Number One (hereinafter PBIA) formed to allow the collection of special assessments from Yakima downtown business owners and operators for the specific purposes set forth in said previously established PBIA; and setting the date, time, and place " for a public hearing on August 6, 2008, at 7:00 p.m., for consideration of said disestablishment, and (B) Consideration of a Resolution of the City Council initiating the establishment of a Downtown Yakima Business Improvement District for the downtown area of the City and setting the time for a public hearing for August 6, 2008, at 7:00 p.m., for the consideration of establishing said District. SUBMITTED BY: Chris Waarvick, Director of Public Works CONTACT PERSON/TELEPHONE: Sean Hawkins, CDY, 225-2485 Chris Waarvick, 576-6411 SUMMARY EXPLANATION: This action sets Wednesday, August 6, 2008 at 7:00 p.m., as a date of Public Hearing to consider establishing a new Downtown Yakima Business Improvement District (DYBID) pursuant to Chapter 35.87A RCW. Council may, subsequent to the hearing and deliberation, approve establishment of the new DYBID and disestablish the old PBIA #1; or, alternatively, direct that the legislation be brought back with any modifications approved by City Council for action at a subsequent Council meeting. The Committee for Downtown Yakima (CDY) is the non-governmental entity allowed under State Law to represent business interests for certain downtown improvements. They proposed to the City Council over 12 months ago to establish more robust maintenance and business promotion programs. As of July 9, 2008, CDY reports that 60% of assessed value had signed approval commitments for the proposed new DYBID. By setting the hearing -date City Council signals its intent to establish a new DYBID and disestablish the old PBIA. The indication of intent and the Public Hearing are both required under the RCW. By July 22, 2008, notice of the Public Hearing will be mailed to the approximately 200 owners. of 600 assessed parcels in the (Continued on next page) Resolution 2 Ordinances Other: DYBID map, letter opposing assessment and City's legal opinion Mail to (name and address): Funding Source: APPROVED FOR SUBMITTAL: City Manager STAFF RECOMMENDATION: Staff respectfully requests that . City Council (1) adopt both Resolutions, and (2) set August 6, 2008, at 7:00 p.m., at the City Council Meeting Chambers as the date of Public Hearings to consider disestablishing the previously established PBIA and to consider establishing a Downtown Yakima Business Improvement District. BOARD/COMMISSION/COMMITTEE RECOMMENDATION: The Council Downtown Yakima Futures Initiative Committee approved setting the date for the Public Hearing and moving forward on this matter at their June 24, 2008 meeting. COUNCIL ACTION: Public Hearing—PBIA No. 1/DYBID, No. 1 July 15, 2008 Page two proposed DYBID. Included in the notice will be the resolution of intent and the petition describing the.proposed DYBID. The new proposed DYBID is larger in both assessed valuation and area than the current PBIA #1. At the conclusion of the Public Hearing, the City Council may direct staff to bring back the formal legislation required to establish the new DYBID and disestablish the current PBIA #1 at the August 19, 2008 Business Meeting. While the issue of further rate reductions, including the, • concept of "no assessment," for non -profits and religious institutions is not fully resolved, the DYFI Council Committee. did not recommend any changes to the current assessment roles for the new DYBID. 0