The URL can be used to link to this page

Home My WebLink AboutWCA-08-02City of �Wheat�dge OFFICE OF THE MAYOR Memorandum TO: City Council Michael Snow, City Clerk Randy Young, City Manager Jerry Dahl, City Attorney FROM: Jerry DiTullio, Mayor DATE: December 9, 2008 RE: Veto of Ordinance #1424, Series of 2008 1 am returning to you Ordinance #1424, Series of 2008, concerning the "Creation and Administration of Community Benefit Districts (CBD) ", which I hereby veto pursuant to the authority granted to me by Section 5.14 of the Home Rule Charter. My reasons for vetoing this ordinance are as follows: The ordinance does not clearly define the property assessment (fee) process and collection procedures. Staff admitted at the 12/8/2008 Council Meeting that Jefferson County will not assess properties. Staff has not determined who will be assessing the properties within the CBD. Any assessment on private properties must have a clearly defined and transparent process. 2. A 50% threshold for approval by properties located in the CBD is too low. Allowing only 50% of the properties in a CBD to determine the property assessment (fee) of ALL properties in the CBD is not good public policy. 3. The City does not have the capacity or the resources to effectively and efficiently administer the ordinance as written. 4. There is confusion at the City staff and Council levels as to how the CBD program will be administered and enforced. 5. Wheat Ridge 2020 does not have the funding or the staff capacity to effectively and efficiently administer the program with the City. 6. The financial and other impacts to the City, taxpayers and staff have not been clearly defined in the ordinance or by a policy statement. In summary, the ordinance, as passed, is not in the best interest of the citizens and businesses of Wheat Ridge. Ordinance #1424 is an excellent start, but the ordinance needs to be further massaged by City staff and Council. The ordinance needs to be taken to the next level to truly attain world class customer service and effectiveness for the community. Sincerely, 0 Jerry DiTullio Mayor of Wheat Ridge Delivered to all Council Members this g day of December, 2008, as follows: 1) Placed in the US Mail, first class postage prepaid, addressed to each Council Member at their home address 2) Emailed to each Council Member 3) Faxed to each Council Member 4) Placed in each Council Member's box at the Municipal Building. 2 / CITY COUNCIL MINUTES: December 8, 2008 Page -3- Item 2. Council Bill 20-2008 — An Ordinance Amending Chapter 10 of the Wheat Ridge Code of Laws to provide a process for the creation and administration of Community Benefit Districts. "1107 " _J71i "7A mentioned by Britta Fisher. 111 gill Motion by Ms. Sang to approve Council Bill 20-2008 (Ordinance 1424) on second reading, and that it take effect 15 days after final publication, with the following Amend Section 10-1 6(a) and 10-19(2) to delete references to "thirty-five percent (35%) and replace the same with "fility percent (50%)." CITY COUNCIL MINUTES: December8,2008 Page -4- Seconded by Mrs. Sang; carried 6-2 with Council Members Womble and Gokey voting No. Original motion as amended carried 6-2 with Council Members Womble and Gokey voting No. Item 3. Council Bill 22-2008 — An Ordinance amending Chapter 4, Section 14 of the Code of Laws of the City of Wheat Ridge, which concerns the Regulations of Exotic Animals within the City. City of Wheatj�idge ITEM NO: -01 t REQUEST FOR CITY COUNCIL ACTION COUNCIL MEETING DATE: December 8, 2008 TITLE: COUNCIL BILL 20 -2008 - AN ORDINANCE AMENDING CHAPTER 10 OF THE WHEAT RIDGE CODE OF LAWS TO PROVIDE A PROCESS FOR THE CREATION AND ADMINISTRATION OF COMMUNITY BENEFIT DISTRICTS ® PUBLIC HEARING ❑ BIDS/MOTIONS ❑ RESOLUTIONS Quasi-judicial: Em 1`aI.i ❑ ORDINANCES FOR 1 READING (11/24/2008) ® ORDINANCES FOR 2" READING (12/08/2008) /1 m C-F � q City Manager EXECUTIVE SUMMARY: In 2005, the City Council commissioned the Neighborhood Revitalization Strategy (NRS), which was subsequently adopted as an amendment to the City's Comprehensive Plan. The NRS strongly recommends revitalizing certain parts of the community through reinvestment in various commercial corridors and strengthening neighborhoods. These revitalization efforts may in some instances require physical reinvestment in improvements such as streetscape amenities. The efforts to strengthen neighborhoods may also require physical improvements as well as neighborhood organizations to provide coordinated services. In an effort to facilitate these revitalization efforts, Wheat Ridge 2020 (WR2020) in cooperation with City Staff has drafted an ordinance that would allow for the creation of Community Benefit Districts (CBDs). A Community Benefit District is a tool allowing for property owners to initiate a process to fund special benefits, improvements and activities in specified geographic areas. COMMISSIONBOARD RECOMMENDATION None required. STATEMENT OF THE ISSUES The NRS recommends that the City proactively facilitate redevelopment of our major commercial transportation corridors and strengthen some of the City's residential neighborhoods. The NRS also recommended the creation of a non - profit community redevelopment agency to help facilitate revitalization efforts and coordinate with neighborhoods. WR2020 was created as that redevelopment agency approximately 3 years ago. WR2020 contracted with New City America, a consulting firm that specializes in the creation and management of local improvement districts, to determine what the appropriate district tool would be for the City of Wheat Ridge to be able to foster various redevelopment efforts. Over the course of several months of meetings with WR2020 staff, City Staff and community members, a Community Benefit District (CBD) has been proposed as a new local district mechanism for the City of Wheat Ridge. CBD is a tool that could be used in commercial districts, residential neighborhoods or in mixed use districts. Following is a summary of some of the highlights of the proposed ordinance. - CBDs are property owner initiated by a minimum of 35% of the "weighted majority" of the property owners within the district signing a petition meeting specific requirements. - "Weighted majority" is based on responsibility for paying the proposed assessment. - CBDs could provide services such as trash collection or enhanced maintenance as well as promotional activities such as advertising or management of special events. CBDs could also provide funding for enhancement of physical improvements both in the public right of way or within private property that provides a common benefit to the district. - Services, activities and improvements proposed by a CBD would be required to be consistent with the City's Comprehensive Plan and other City Council approved policy documents. - City Council would be required to approve the formation of any future CBD by Ordinance. - Prior to City Council's consideration of an ordinance forming a new CBD, all property owners within the proposed boundaries of the CBD would be mailed ballots to "vote" regarding their support of the formation of the CBD. - If the mail ballots demonstrate that more than 35% of the weighted property ownership do not support formation of the CBD, then City Council could not approve the formation. - The amount of and methodology for determining the assessments would be as established within the petition. - Districts could also be disestablished through the same general mechanism used for their establishment, provided the district has no outstanding financial or maintenance obligations or liabilities. ALTERNATIVES CONSIDERED Colorado State Statutes allow for the creation of various special districts, including but not limited to: special improvement districts, general improvement districts, metro districts and business improvement districts. These existing tools were reviewed but none were determined to be the perfect fit to address the goals of providing improvements, services, marketing, etc. in both residential and commercial districts. The City and County of Denver, which has its own locally created improvement district tools was also consulted to assist in determining some of the specifics of the proposed Wheat Ridge CBD. FINANCIAL IMPACT: Some City staff time would need to be expended in reviewing and analyzing petitions to form districts and their annual work plans. Staff review would be most critical if a district was to be proposing improvements within the public right of way or on other public property. Ongoing management of CBDs is anticipated to be handled by an outside management company (required to be a 501(c)3, not the City. RECOMMENDED MOTION "I move to approve Council Bill 20 -2008 an ordinance amending Chapter 10 of the Code of Laws to provide a process for the creation and maintenance of community benefit districts on second reading, and that it take effect 15 days after final publication." or, "I move to table indefinitely Council Bill 20 -2008 for the following reason(s): ATTACHMENTS 1. Proposal from New City America on Community Benefit Districts 2. Council Bill 20 -2008 PROPOSAL TO WHEAT RIDGE CITY COUNCIL ITV THE ADOPTION AND IMPLEMENTATION OF A NEW WHEAT RIDGE COMMUNITY BENEFIT DISTRICT ORDINANCE CREATED TO BRING ABOUT MORE VIBRANT BUSINESS DISTRICTS AND BEAUTIFUL NEIGHBORHOODS IN THE CITY OF WHEAT RIDGE COLORADO DOCUMENT PACKAGE FOR C.B.D. PROGRAM IMPLEMENTATION IN THE CITY OF WHEAT RIDGE PRESENTED BY WHEAT RIDGE 2020 AND NEW CITY AMERICA, INC. August 26, 2008 PART I - OVERVIEW PART II - QUESTIONS AND ANSWERS ON THE CBD DISTRICT PAGE S PAGE 4 Part III/ Features of the new Wheat Ridge Community Benefit District Ordinance Page 9 Part IV/ The Path to get started, First Steps in the Investigation of the Wheat Ridge C.B.D. Page 17 Part V /Small Business Commission Determination of Eligibility For CBD Investigative and Formation Grants Page 19 Part VI /Stakeholder Formation Process Part VII /Management of the District Part VIII /Sample Documents Page 20 Page 21 Page 22 `? PART 1 - OVERVIEW Wheat Ridge 2020 has been charged to advise the City of Wheat Ridge on developing strategies that can be embraced by the citizens to expedite the revitalization of Wheat Ridge. As Wheat Ridge enters the 21St century, it must take specific and concrete steps to ensure continual economic development, promote home ownership, facilitate the halting of sales leakage and most importantly, make Wheat Ridge a more "livable" and desirable place to live, work and visit. A part of this process, Wheat Ridge 2020 has looked at various financing mechanisms that would fund "special benefit services ", or those services that create a better physical, commercial or aesthetic environment for business districts and neighborhoods alike. Since Wheat Ridge has no "mixed- used" districts, per se, these financing mechanisms must also anticipate the creation of these new types of land uses. Therefore, the old financing tools that had been used and created in the 20th century, may not be applicable here. We must look at where this city is going in the next 15 years and build the governmental systems and legislative tools to promote new development. With this in mind, Wheat Ridge 2020's Executive Director Rob Osborn and their consultant, New City America, Inc., are presenting this "kit" or overview of how Wheat Ridge can adopt new legislative tools to facilitate revitalization as well as propose how these tools might be strategically used. We will concentrate this discussion on the creation of a new Wheat Ridge Community Benefit District ordinance, which will blend many forms of legislation currently on the books, but will put the responsibility for formation in the hands of the benefiting business and property owners. The City Council will still have a role in approving these districts through a public hearing process, however the City Council will in essence "sanction" the decision of the affected property owners and vote to levy the assessments on the benefiting parcels in order to fund the special benefit services desired. 3 PART II - GENERAL QUESTIONS AND ANSWERS REGARDING THE NEW WHEAT RIDGE COMMUNITY BENEFIT DISTRICT (CBD) ORDINANCE AND FORMATION PROCEDURE The following represents general questions and answers that potential applicant groups may have regarding the formation of a new CBD district in the City of Wheat Ridge..... What is a Wheat Ridae CBD? In brief, the proposed CBD district is a locally established special benefits district. The district functions to create a stable revenue source that is established by a vote of the affected property owners and the adoption of an ordinance by the Wheat Ridge City Council.. In order to establish the district, the Wheat Ridge City Council must hold a public hearing to gauge the level of support of the weighted property owners in the district. Similar districts are sometimes called Property Business Improvement Districts, Business Improvement Districts, Maintenance Districts or Special Assessment Districts. In Wheat Ridge, the new enabling ordinance known as the Community Benefit District, (CBD), ordinance of 2008 has been adopted to provide local enabling legislation for motivated business district property owners or neighborhood stakeholders. Why would anyone want to pay more money, isn't the City supposed to be providing these services? Cities in the U.S. tax their citizens through a number of means, (property taxes, sales taxes, hotel taxes, enterprise taxes, special revenues), and allocate them to deliver general benefit services. These services are evolving historically but normally include police, fire, transportation, sewer, water, planning and zoning, streets, lighting, social and cultural affairs, environmental issues, trash and refuse, housing, etc. These services do not and cannot respond to the special needs of a given neighborhood or business district. To respond to those special needs, including sidewalk sweeping, sidewalk snow removal, steam cleaning, rapid removal of bulky items and graffiti, responding to illegal encampments, additional security, maintenance of public order, states and localities have adopted special enabling legislation which allows motivated property owners to pay assessments to fund special benefit services. These special benefit assessments are probably the most efficient and effective funds to be paid since they must stay in the district, by law, and are managed by a locally based non - profit corporation made up of those being assessed. These assessments can provide the special benefit services desired in each and every business district and neighborhood, but those funds will not be funded or controlled by the City. What "special benefits" can the assessment district fund? The special services to be funded are spelled out in the local enabling ordinance or legislation. They can only legally include those services over and above what a City will normally provide through the general fund. Such special benefit services may include: • Enhanced cleaning of the public rights of way, sidewalks and gutter; • Sidewalk snow removal; • Steam cleaning of the sidewalks of the district; • Capital improvements in the business district or neighborhood; • Removal of trash and bulky material; • Security services over and above the services of the local police force; • Parking services or transportation related services; • Economic development; • Special lighting; • Business attraction and retention and structuring a proper commercial mix; • Graffiti removal; • Advocacy; • Instituting policies that deal constructively with vagrancy, illegal encampments and panhandling; • Administration and advocacy on behalf of business districts or neighborhoods • Beautification and decorations; • Tree maintenance, planting, watering, etc; • Marketing and promotion (in business districts only); • Special community or neighborhood fairs, festivals or events; • Public space development and maintenance; Can the City replace its -general benefit services in that district once the special benefits district is formed? In nearly all cases, property assessment districts only fund special, not general benefits. General benefits are those allocated to all parcels in the City and funded out of public or general fund revenues. These general benefits will not be replaced or discontinued by the City. 5 However, Experience has shown that once the assessment district has been formed, the private property owners in the district leverage the existing general benefits provided by the City and promote the special benefits as an enhancement to these general benefits. This is due to the fact that the property owners are now organized and can implement things such as trees and new trash cans and the CBD assessment revenues can maintain additional trash cans, with the understanding that these improvements would be accessories to or in addition to the general benefits or capital improvements which are funded by the City. What allows the district to be formed and how is it done? The district is normally initiated by a group of motivated property owners within a given neighborhood or business district. Experience tells us that a core of property owners representing at least 15 - 25% of the potential assessment weight of the district, is necessary to initiate the investigation. This group will then approach Wheat Ridge 2020 to get information related to formation and the function of the special benefit services district. If the group determines that there is support for the establishment of a district it must file a petition with the City to seek establishment. The petition must be filed with the City Clerk's office and signed by owners of at least 35% of the assessed weighted properties within the proposed district. The petitions shall be weighted based upon the dollar amount to be paid by the property owner who submits the petition, within the proposed District. The petition shall include at a minimum, a summary of the following items: 1. Proposed scope of services of the district, and identification of how the services meet a broader goal of the City's Strategic Plan, Comprehensive Plan, Neighborhood Revitalization Strategy, Park and Recreation Plan, Sub Area Study, or any other plan or policy adopted by the City which promotes Community and Economic Development prosperity. 2. Proposed assessment area map, specifying the boundaries of the proposed CBD. 3. Proposed term of the district in years, if any; 4. Special benefits to be funded within the district. 5. Assessment methodology. 6. Policy for any assessment exemptions in the proposed district. 7. Outline of proposed capital projects that the assessments shall fund. 8. Proposed management structure of the district by an existing or the establishment of a new 501(c) 3 organization. 6 9. Proposed Management plan identifying how the district shall administer projects and programs outlined in the petition. 10. Any other criteria that City Manager deems relevant and appropriate with respect to the purpose of the proposed district and City's Strategic Plans. The petition would trigger a mail balloting procedure that would demonstrate support among the affected property owners. The mail ballots, , are due at the public hearing and would advise the City Council on the level of support for creation of the district. The ballots shall be weighted based upon the dollar amount to be paid by the property owner who submits the ballot, within the proposed District. Once the mail ballots have been tabulated and they demonstrate that the weighted majority of return ballots support establishment of the District, the Council may vote to consider to adopt an ordinance for the creation of a district and to levy the assessments on the benefiting parcels through the public hearing ordinance adoption process. This process will ensure a fully disclosed, participatory approval process. How Iona does this process take? The process can take as little as 8 months and as long as 2 - 3 years. What is most important is that the affected community understands the proposal and the boundaries are set around a weighted majority who desire the services to be funded by the district. Can the district be formed any time during the year? Yes, however it is best to coordinate the formation process so the public hearing is completed to coincide with the annual property tax cycle. This is suggested so there is not such a long delay in approving the district and receiving the revenues from the first property tax bills. How are the CBD assessments collected? All property owners in the CBD shall be assessed unless explicitly excluded pursuant to the CBD plan. CBD assessment schedules listing each property in the CBD shall be compiled annually and shall be assessed by the CBD in the manner set forth in the CBD plan. Unpaid assessments shall be a lien on the property for which the assessment is unpaid. The CBD or the city may foreclose on the lien in order to recover the assessment due. The foreclosing party may also recover the administration cost of collection. 7 Is there a minimum amount that should be generated by the district? Though there is no legal requirement for assessment revenue generation, practice tells us that a minimum of $ 150,000 in a business district and $50,000 in a neighborhood should be generated in order to make a difference. The idea of the district is to have the special services put a dent in the problem that the district or neighborhood may face. A rule of thumb is that the CBD should generate enough revenues to make a positive impact in the community, however should not be an unreasonable burden to the majority of benefiting property owners in the district. Once established, must every parcel in the district pay? Unless specifically mentioned in the plan, every single parcel owner must pay into the district. In addition, parcels owned by tax - exempt designated organizations may be exempt from paying property taxes but may not necessarily be exempted from the assessment district. Usually, the only way to be exempted is to demonstrate that no benefit will be received from the special benefit services funded by the district. How Iona can the district last once established? In Wheat Ridge, the CBD ordinance will have no set term. This is to allow property owners to determine if they wish to fund long term capital improvement projects that will provide special benefit to their district. The district can be formed for any amount of time,. How could a district be disestablished if it is not functionina as envisioned? Local ordinance shall provide for the process for disestablishment of the CBD pursuant to an annual review process. Each year that the district is in existence, there will be a 30 -day period during which the property owners will have the opportunity to request disestablishment of the district. Within that 30 day period, if the owners of real property who pay 35% or more of the assessments levied submit a written petition, the CBD district disestablishment procedure may be initiated. The Wheat Ridge City Council will hold a public hearing on disestablishing the CBD prior to actually doing so. At the public hearing, City Council shall consider the district's request for disestablishment and determine if the district has any long term liabilities, or responsibilities created pursuant to the original purpose of the district, that may prohibit disestablishment. If Council finds that such liabilities or responsibilities exist, it may vote to not allow disestablishment, or take action to commit to work with the district to devise a disestablishment plan that outlines the time period for continued assessments based on the existing and identified future 10 liabilities and responsibilities of the district. The plan shall clearly identify obligations of the district to extinguish its liabilities, and verify that the City will not be required to provide continued services of special benefits to the district. Thus the disestablishment procedure is no more difficult than the provisions of the establishment procedure. Due to its long term nature, this new ordinance allows for the growth of landscaping, its maintenance as well as creation of new public spaces and economic development strategies related to revitalization that create a more permanent improvement to the area. If there is debt against the district, the district cannot be disestablished. All financial obligations in the form of bonds or loans for capital improvements, must be paid off before the district can be disestablished. Who controls the funds once the district is established? A non - profit corporation is usually established once the district has been created. The non - profit corporation is normally comprised of board members representing the property owners paying into the district. Alternatively, a district can create an Advisory Board that focuses on the goals of the district, but places management and day to day oversight with a separate organization. The Advisory Board could form a management agreement with an existing corporation such as Wheat Ridge 2020. The management agreement shall identify the annual service fee and terms of the district's management. The independent non - profit CBD management corporation, or Wheat Ridge 2020 would then enter into a contract with the City, through the City Manager's office, to administer the district on behalf of the stakeholders. This annual contract will outline the programs and projects the CBD desires to implement and provide project analysis data to identify how the use of the assessed funds are meeting the district's purposes. Can the City withhold the assessments from the District? By law, the assessments generated within the district must be allocated to fund special services within the district. However, the district can not use the generated assessments for purposes outside the scope of the district's defined mission as presented in its original establishment petition. On an annual basis the District must present a work plan to the City as outlined above, to verify the plan meets the district's purpose. It the plan is contrary to the district's purpose the City may withhold a portion the generate assessments that do not meet the district's goals. The withheld assessment must be placed in an interest bearing escrow account and made available to the district upon presentation and approval of an amended annual plan i approved by the City. Additionally, the City cannot withdraw its current baseline level of services with the assessments since the district can only fund "special benefits ". Once established, can the City increase the assessments? By ordinance, the only changes in the annual assessment methodology must be pre- determined and placed in the CBD plan for the district. The City cannot arbitrarily increase the assessments because they are not funds created by or controlled by the City. Normally, only land use changes or a pre- determined CPI amount as included in the plan will allow for higher assessments in the district. Will the establishment of Community Benefit Districts create additional staffing burdens and resource allocations to the City? Currently, the City is working with neighborhood leaders and citizens on an individual basis. The City is currently handling citizen's needs or inquiries in a reactionary process. This process does not help implement the city's long term plans and goals in a strategic method, and often requires the involvement of many levels of City administration and Council. Often, putting out fires takes greater priority over implementation of long term plans. City officials are expending considerable time implementing enforcement activities in the community related to code infractions on private property, infrastructure development and maintenance in public rights of way, and crime prevention in many areas of the community. The need for services and costs to provide them will increase as time continues. The need to provide these services will not get resolved unless the city has partnerships with stakeholders in our neighborhoods. The CBD model provides that partnership. It engages citizens to promote self help activities for the betterment of the community, consistent with the city's goals for Community Development as outlined in the Neighborhood Revitalization Strategy. The CBD format provides a revenue source that can be used to provide the special benefits desired by engaged citizens within a district. The City Staff will have the ability to work with vested stakeholders in the community who can assist in maintaining public rights of way, working with the district members to alleviate code infractions, and maintain communication to promote safer and better organized neighborhoods. The work of the City Staff will not decrease, but it will change. It will transition form enforcement and reaction to strategy and implementation. The CBD process will enable the city to work with the stakeholders to implement the 1111 plans it has adopted and also invite citizens who desire special services to organize and assist in the provision of such services. Written by: Marco Li Mandri New City America, Inc. Rob Osborn, Esq. Wheat Ridge 2020 11 Part III/ Features of the new Wheat Ridge Community Benefit District Ordinance The following represents an overview and summation of the key elements that should be included in the new Wheat Ridge Community Benefit District ordinance. The features include steps for formation and are consistent with the Colorado State Constitution. We have included some existing Denver ordinances as a model as to what a "home rule" city can do. 12 13 Business Local Local New Wheat Improvement Improvement Maintenance Ridge District District District Community Benefit District Legislative CRS 31 -25 -1201 Denver Charter Denver Charter City Council Authority to 1228 7.6.1 - 7.6.20 7.7.1 - 7.7.19 adoption Purpose To expedite Constructing or Care, operation, To expedite commercial installing any security, repair, neighborhood, revitalization public maintenance mixed -use, or programs improvement and commercial through funding replacement of revitalization special benefits pedestrian and programs including transit malls through funding improvements special benefits and activities: including Marketing and improvements promotions, and activities: special events, Marketing and security, snow promotions, removal, fund special events, public security, snow improvements removal, fund and their development of maintenance, public space, etc. public improvements and their maintenance, paying for administration and non - profit management expenses, etc. Powers -To have Constructing or Care, operation, To have perpetual installing any security, repair, perpetual existence; public maintenance existence; -have and use a improvement and -have and use a corporate seal; replacement of corporate seal; -sue and be pedestrian and -sue and be sued; transit malls sued; -enter into -enter into contracts, contracts, - borrow money - borrow money and issue and issue negotiable negotiable bonds; bonds; - provide special - provide special benefit services benefit services listed above; listed above; - acquire, - acquire, construct, construct, finance and finance and 13 14 install install improvements; improvements; - dispose or real - dispose or real and personal and personal property; property; -have -have management management control and control and supervision of supervision of affairs of the affairs of the district; district; -to fix and -to fix and increase or increase or decrease rates; decrease rates; power to levy ad power to levy ad valorem taxes; valorem taxes; - special - special assessment assessment power power 14 15 Business Improvement District Local Improvement District Local Maintenance District New Wheat Ridge Community Benefit District Creation and 1. Initiated by a 1. Initiated by a 1. Initiated by a Initiated by a establishment petition filed petition filed with petition filed with petition filed with with the clerk of the manager of the manager of the City Clerk's the governing Public Works, Public Works, office signed by body signed by signed by not less signed by not less owners of at owners of at than 35% than 35% least 35% of the least 50% of the property owners property owners assessments to assessed of the of the be paid into the valuation and at municipality who municipality who district. least 50% of the own real own real districts land property in the property in the The petition shall area; district district include a 2. Petition shall 2. Hearing by 2. Hearing by summary of the set the name, the Manager of the Manager of management description of, Public Works Public Works plan which boundaries and 3. Ordinance 3. Ordinance specifies the service area, establishing establishing boundaries of description of district district the proposed types of services CBD; term (if and /or any); special improvements benefits to be funded; benefit zones if any; assessment methodology; any exemptions; capital projects, management of the district. The petition would trigger a mail balloting procedure that would demonstrate support among the affected property owners. The mail ballots, which are advisory, are due at the public hearing and would advise the City Council on the level of weighted support for 15 16 creation of the district. Once the weighted mail ballots have been tabulated and they demonstrate support for the establishment of the CBD, the Council may vote to consider an ordinance creating a district and to levy the assessments on the benefiting parcels. This process will ensure a fully disclosed, participatory approval p rocess. 16 17 Business local Local New Wheat Improvement Improvement Maintenance Ridge District District District Community Benefit District Governing Body -City Council, None Board of Proposed that -Board of Directors (5) either Wheat Directors by appointed by Ridge 2020 or a Council, Five the Mayor new non - profit members from organization of the electors of the property the district; owners paying - Council may into the district provide by enter into a ordinance that contract with the the governing City Manager to body of a URA, administer the DDA or GID serve district on a day as the acting to day basis board Duration Perpetual Perpetual Perpetual Per etual Bond Authority Interest bearing Interest bearing None Not determined bonds derived bonds derived yet from general ad from general ad valorem taxes of valorem taxes of the district, first the district, first approved at an approved at an election election Taxing Power Levy and collect None None None, on ad valorem taxes property tax bills Fees Fix rates, tolls, Assess costs of Assess costs of Not determined charges for any improvements improvements as of yet services or against property against property improvements specially specially furnished by the benefited. Use benefited. district of revolving fund. assessments 17 COMPARISON OF ASSESSMENT DISTRICTS THROUGHOUT THE STATE AND COUNTRY Area District Year Petition Sunset Legislative Adopted Services Allowable Required? Provision Name Arizona Property 1990 Landscaping, Security, No None Business Imp. Economic District Development, Advocacy, Marketing and Promotions, Parking, Cleanup, etc. New Jersey District 1984 Landscaping, Security, No None Management Economic Act Development, Advocacy, Marketing and Promotions, Parking, Cleanup, etc. New York Business 1980 Landscaping, Security, Not None City Improvement Economic specified, District Act Development, petition Advocacy, Marketing based and Promotions, upon Parking, Cleanup, etc. assessed valuation, consensus regd. California Landscaping 1972 Landscaping, No None (Streets and and Lighting Lighting, Highway Act Minor Capital Code ) Improvements California Property 1994 Landscaping, Security, 50% of 5 years (Streets and Business Economic weighted Highway Improvement Development, property Code) District Act Advocacy, Marketing owners and Promotions, Parking, Cleanup, etc. San Diego, Maintenance 1998, Landscaping, Security, No None CA Assessment Amended Economic District in 2003 Development, Advocacy, Marketing and Promotions, Parking, Cleanup, etc. 18 Area District Year Petition Sunset Legislative Adopted Services Allowable Required? Provision Name Los Alpha PBID April 2000 Landscaping, Security, 30% 10 years Angeles, Economic weighted CA Development, property Advocacy, Marketing owners and Promotions, Parking, Cleanup, etc. Oakland, Business Imp. November Landscaping, Security, 30% 10 years CA Maintenance 1999 Economic weighted District Development, property Advocacy, Marketing owners and Promotions, Parking, Cleanup, etc. San San Francisco February Landscaping, 30% 15 years Francisco CBD 2003 Landscaping, weighted Ordinance Economic property Development, owners Security, Advocacy, Marketing and Promotions, Parking, Cleanup, etc. Wheat Community Pending Landscaping, Security, 35% of None Ridge Benefit District Economic weighted (Proposed) Ordinance Development, property Advocacy, Marketing owners and Promotions, Parking, Cleanup, etc. (also possibility of funding minor capital im rovements 19 PART IV —THE PATH TO GET STARTED FIRST STEPS IN THE INVESTIGATION OF THE WHEAT RIDGE C.B.D. The following represents the steps a stakeholder group or interested party of property owners must take to implement the creation of the special benefit services under the CBD ordinance: A. Community or stakeholder group steps in investigating a CBD district: 1. Identify a key group of property owners, large and small, including business tenants in the targeted district. If it is a residential oriented district, identify larger and smaller property owners to give the lead group the proper mix; 2. Designate an existing local organization or create a new group to serve in the capacity of the CBD Steering Committee. The Committee would be open to all interested parties; 3. Request a Wheat Ridge CBD Kit from Wheat Ridge 2020 or the City, review the kit and discuss the feasibility of formation of a special benefits assessment district among Steering Committee members; 4. Review the sample budget of district and plan, (attachment B); 5. Send a letter of support to the Wheat Ridge 2020 staff expressing interest in investigating establishment of a CBD. List Steering Committee members by name, property owned and have them sign the letter to the Wheat Ridge 2020 Board. Send copy of letter to the City Manager. (List should have at least 8- 10 significant property owners name attached). See attachment A at end of packet for sample letter. 6. Wheat Ridge 2020 staff will then determine the designation of the applicant group as eligible to receive an investigative grant from Wheat Ridge 2020 based upon pre- determined criteria. A letter is sent from Wheat Ridge 2020 staff to applicant group explaining the decision and availability of funds. B. Investigation of CBD District by Steering Committee: 1. Use in -house Wheat Ridge 2020 CBD consultant or staff to work with the client group to conduct investigation with elements of plan, (boundaries, budget, priorities), set by Steering Committee; 2. Requirements of investigation shall include: a. Develop property database including property variables and property owner information in full database. Identify largest, weighted, property owners and contact them, if at all possible; 20 b. Conduct one written survey mailed or hand delivered to each affected property owner in the proposed district. Focus groups among significant portions of the community may also suffice for this outreach process; C. Tally the results of survey responses or focus groups and plot them on a parcel map; d. Set boundaries based upon level of conceptual support for establishment of CBD district based upon Steering Committee decisions; e. Expand Steering Committee based upon survey results and expressed desire to be involved in the CBD formation process; 3. Deliverables to the Wheat Ridge 2020 to conclude investigative phase of CBD district: • Present parcel map with preliminary boundaries • Present database of all property owners in the proposed district including all property variables that have been collected; • Present tally of survey results demonstrating support and opposition of the CBD district investigation; • Present preliminary budget; • Present preliminary assessment methodology to fund special benefit services; 21 PART V — WHEAT RIDGE 2020 DETERMINATION OF ELIGIBILITY FOR C.B.D. FORMATION GRANTS: The following represents the steps the Wheat Ridge 2020 will take in determining the eligibility for formation grants and allocation of staff time to implement the CBD district in the applicant community. The applicant group: • is acknowledged through a City Council member's office as legitimate with a community base; or • is acknowledged through the City Manager's office as a legitimate group with a community base; or • is new, however has an established base of property owners in the district; or • is part of the Wheat Ridge Business District or another acknowledge city group; or • is acknowledged as a member of the visitor related industry; or • has been designated by the Wheat Ridge 2020 staff as an acceptable applicant for the CBD district formation grant program; 22 PART VI. STAKEHOLDER RESPONSIBILITIES IN C.B.D. DISTRICT FORMATION PROCESS: Once the Phase I Investigation has been completed based upon the conditions listed above, the Steering Committee may request further assistance from Wheat Ridge 2020 staff to complete the CBD formation process. This formation effort will include everything including the development of the management plan, petition and mail balloting /public hearing phase. The tasks entailed in this phase of the formation process shall include: ■ Expansion of the CBD Steering Committee; ■ Finalize boundaries based upon input from the CBD Steering Committee; ■ Submit database to appropriate City office to verify property variables; ■ Finalize benefit zones if any; ■ Finalize services plan; • Finalize assessment methodology; • Determine if any parcels would be exempt or have their assessments reduced due to tax - exempt status; ■ Demonstrate good faith outreach efforts to affected stakeholders; ■ Complete CBD management district plan, include term of district (if any)within plan. Also determine whether any CPI factors will be included to allow for growth of the district; • Adopt final plan; • Submit plan for verification, review and approval by the City Attorney's office. • Initiate 35% weighted petition drive based upon Steering Committee and City Attorney endorsement of the plan; ■ Complete petition drive once minimum of 35% weighted threshold has been reached, submit petitions to the City Manager. Strive to get up to more petitions of support prior to the mail balloting process; ■ Work through City Manager and staff to bring CBD to a public hearing for district to Wheat Ridge City Council; • Work with City Clerk's office to conduct the mail ballot proceeding and encourage voting turnout by affected property owners. • Coordinate public testimony at public hearing; Once votes are tallied and weighted returned ballots demonstrate support for district formation, the City Council will then adopt an ordinance levying assessments on the benefiting parcels as per the adopted management plan. The CBD Steering Committee will then work with Wheat Ridge 2020 and the City Attorneys office on designation of Wheat Ridge 2020 as non - profit management group. If not Wheat Ridge 2020, the stakeholder group must demonstrate approved bylaws as tax exempt corporation by State of Colorado, proof of insurance and selection of interim Board of Directors. 23 PART VII. MANAGEMENT OF DISTRICT Based upon its existing contract with the City, the first preference of a management corporation should be through Wheat Ridge 2020. If this is not acceptable to the stakeholders, than the following should determine the requirements for administration of the CBD district. It is suggested that the management corporation either is, or be established to fit the following conditions: a. Is formed as a 501©(3) public benefit, charitable non- profit corporation in order to maximize its ability to receive private and public grants; b. Has large, small and varied land us property owners on the Board of Directors; C. Adheres to provisions for open Board meetings; d. Identifies legitimate service providers through open bidding process. e. Provides an annual audit conducted by third party CPA firm and submits to City and members; f. Submits quarterly reports to the City Manager; g. Establishes functional e -mail and web site to facilitate communication to members and public; h. Encouraged to meet regularly with other CBD or similar organizations; 24 PART VIII — SAMPLE DOCUMENTS ATTACHMENT A SAMPLE LETTER FROM WHEAT RIDGE 2020 ON THE REASONS TO CONSIDER FORMING A NEW A WHEAT RIDGE COMMUNITY BENEFIT DISTRICT Date To: Property and Business Owners Interested in Establishing New C.B.D. District in Their Community Fr: Wheat Ridge 2020 Staff Dear Property or Business Owner: For many years, residents, businesses property owners and visitors to Wheat Ridge have become increasingly concerned about the image of our City. For that reason, the City Council adopted a new visionary plan called Wheat Ridge 2020, to bring citizens into the process of determining the future direction of our City. This problem of the "image" of Wheat Ridge, both among its residents, business owners and to its visitors, is increasingly seen in the problematic conditions of Wheat Ridge's public rights of way. With governmental revenues becoming increasingly strained, it is safe to assume that City general fund services to clean and beautify the public rights of way will be reduced, not increased. This will be the situation for the foreseeable future. This problem is resolvable and has been dealt with for years in other cities in the United States. Special benefit districts, commonly known as special services districts, business improvement districts, maintenance assessment districts, community benefit districts, etc., are being supported by neighborhood and business communities throughout the United States due to their positive impact on the quality of life issues close to home. Issues including overflowing trash cans, (or even the frequent placement of trash receptacles), sidewalk snow removal, tree planting and maintenance, sidewalk sweeping, removal of graffiti and bulky items, funding of special events and community fairs, maintenance of order in the public rights of way - are all special benefits that are funded by community established assessment districts. 25 Though assessment districts add costs to your business and residential parcels, they are considered to be a solid investment in your neighborhood or business community due to the following: The assessment district model is a proven model of generating revenues to fund special benefits over and above those funded by the general fund of a City; 2. The special benefits to be funded, their costs and their frequency are determined by the benefiting property owners themselves; Property owners, in the City of Wheat Ridge, must petition and vote to establish the district through a public hearing process; 4. Most people's greatest investments are in their homes or businesses and they readily invest to improve their respective properties. The public domain, however, is normally outside of the control of any one property owner; however its condition could have a very negative impact on a neighborhood or business district. The assessment district model maintains the same high standards in the public rights of way that most people maintain behind their property lines. They serve as a great mechanism to maintain cleanliness and order in the public rights of way. 5. One hundred per cent of the special benefit assessments generated, by law, must fund services within the boundaries of the district; b. Stakeholders, the assessees themselves, determine how and who will provide the special benefit services; 7. The district can be disestablished based upon a vote of the affected property owners. It is no more difficult to take apart an assessment district, than it is to establish one. In the following pages, you will find out more on how these new Community Benefit District (CBD), will change the character of the City. As we enter the 21st century, neighborhood based special benefit assessment districts are becoming a key tool to upgrade the quality of urban life. We must raise the bar and standard for city life, we must create a culture of higher expectations. We ask that you join with your neighbors or local business and property owners to see if these innovative community controlled CBD districts are appropriate for your neighborhood or business districts. Sincerely, Rob Osborn Executive Director Wheat Ridge 2020 27 ATTACHMENT B SAMPLE LETTER TO WHEAT RIDGE 2020 ON THE DESIRE TO ACCESS RESOURCES TO INVESTIGATE A NEW WHEAT RIDGE COMMUNITY BENEFIT DISTRICT Mr. Rob Osborn Executive Director Address SUBJECT: Request for Determination of Eligibility in Applying for Wheat Ridge 2020 CBD Investigation and Formation Grant Dear Rob: At its (date) meeting, the (community group or business organization) voted unanimously to request aid from Wheat Ridge 2020 in determining whether a Wheat Ridge Community Benefit District would be appropriate for, and supported in our neighborhood. We have reviewed the Wheat Ridge CBD packet materials provided and understand that the CBD, if adopted, would result in an assessment levied on area parcels in order to fund special benefits in the community. The desired special benefits relevant to our community include (list beautification, sidewalk sweeping, marketing and promotions, advocacy, planning, parking, etc). We are requesting that resources and staff time be allocated to support our request investigation and possible creation of the CBD. We commit ourselves to work hard and do the extensive outreach necessary to build community consensus for this CBD. Please find our commitment as demonstrated by the signatures of the members of our organization listed below. 28 ATTACHMENT C SAMPLE PRELIMINARY WHEAT RIDGE C.B.D. BUDGET AND PLAN DOCUMENT Proposed CBD District Area: CBD Steering Committee Chair: Proposed CBD District Boundaries: Annual Assessment Revenues: CPI Factor Benefit Zones Special Benefit Services Desired: Planning activities: 38th Street Corridor List name and organization, Address Phone and E -Mail Preliminary boundaries include: A Street on the South B Street on the North C Street on the East D Street on the West Total of 18 square blocks $ 180,000.00 in assessments per year An annual CPI adjustment is allowable as per the plan, not to exceed 5% per year There is only one benefit zone in this plan Sidewalk cleaning and sidewalk snow removal Trash receptacle placement and emptying Steam cleaning of sidewalks Tree planting and maintenance Decorations Special events (2 per year) Removal of graffiti and bulky items Marketing and promotions Advocacy Facilitating mixed use development Term of District: Perpetual 29 Assessment Methodology Annual Costs per variable: Highest Annual Assessment: Lowest Annual Assessment: Management Entity Commencement Date: Assessment levied on all parcels, public and private, tax - exempt not excluded: 33% of assessment ($60,000) generated from linear frontage 33% of assessment ($60,000) generated from lot size 33% of assessment ($60,000) generated from land use or building square footage $ 5.00 per linear foot per year $ 00.015 (1 '/2 cent per square foot of lot per year) $ 00.0356 per building square foot per year $22,000, abcd 38th Street $ 180.00 per year for loft /condo owners at Defg 38th Street Wheat Ridge 2020 Fiscal year 2009 -10 Other Conditions: Area is mixed use and low rise. Only retail and commercial building uses will pay into marketing and promotions budget 30 ATTACHMENT D SAMPLE MAP OF C.B.D. DISTRICT INSERT HERE kil ATTACHMENT E CITY OF WHEAT RIDGE PETITION TO FORM THE (NAME OF DISTRICT) COMMNITY BENEFIT DISTRICT (Pursuant to the Community Benefit District Ordinance# of the City of Wheat Ridge, Adopted September 2008) Legal Owner Pre - printed Owner: Pre - printed Parcel Number Pre - printed Site Address: Pre - printed Proposed Annual Assessment Weight ( %): information would be pre - printed on the ballot Yes, I approve of the proposed assessment of on the parcel(s) identified on this petition. No, I do not approve of the approved assessment on the parcel(s) Identified on this petition Please Print Name and Title Signature of Record Owner or Authorized Representative (in the case of property owned by non - individuals) Please Return Petitions as soon as possible to: (Steering Committee or Wheat Ridge 2020 address) 32 ATTACHMENT F CITY OF WHEAT RIDGE MAIL BALLOT TO ESTABLISH THE (NAME OF DISTRICT) COMMUNITY BENEFIT DISTRICT BALLOT TO FORM THE (Name of CBD inserted here) (Pursuant to the Community Benefit District Ordinance # of the City of Wheat Ridge, adopted September 2008) Legal Owner: Ballot Question APN (legal owners name is pre - printed on ballot) Approval of the C.B.D. Situs Annual Assessment - % Information is pre - printed on ballot _YES, I approve of the proposed assessment of Annual Assessment Total on the parcel(s) identified above. NO, I do not approve of the proposed assessment on the parcel(s) listed above. Signature of Record Owner or Authorized Representative Print Name and Title (in the case of property owned by non - individuals) Please Return Ballot inside Privacy Envelope inside of Self- Addressed Envelope Provided and mail to: City of Wheat Ridge Office of the City Clerk 7500 W 29th Ave. Wheat Ridge, CO 80033 33 CITY OF WHEAT RIDGE, COLORADO INTRODUCED BY COUNCIL MEMBER BERRY Council Bill No. 20 Ordinance No. Series of 2008 TITLE: AN ORDINANCE AMENDING THE WHEAT RIDGE CODE OF LAWS TO PROVIDE A PROCESS FOR THE CREATION AND ADMINISTRATION OF COMMUNITY BENEFIT DISTRICTS. WHEREAS, the City of Wheat Ridge ( "City "), acting through its City Council, has authority pursuant to Article XX of the Colorado Constitution and C.R.S. § 31 -1 -101 et seq. to establish a process by which property owners within the City may establish a community benefit district for the improvement of their neighborhood, mixed use or commercial district; and WHEREAS, the City Council believes that such a process will expedite revitalization programs through funding of special benefits, improvements and activities; and WHEREAS, such benefits, improvements and activities may include, but are not limited to: enhanced maintenance of public rights -of -way, funding and completion of capital improvements, security services, economic development, advocacy, beautification and decoration and special district fairs, festivals or events; and WHEREAS, the City Council wishes to enact a process to make the establishment of community benefit districts available to property owners within the City. NOW THEREFORE BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF WHEAT RIDGE, COLORADO: Section 1 . Chapter 10 of the Wheat Ridge Code of Laws is hereby amended by the addition of a new Article II, which shall be titled "Community Benefit Districts" and which shall read in its entirety as follows: Sec. 10 -15. Intent. It is the intent of this Article II to provide for the process to create and administer community benefit districts ( "CBDs "). Sec. 10 -16. Formation of CBD. (a) The city council may consider the formation of a CBD upon the submission to the city clerk of a petition for the same, signed by property owners to be included in the CBD who will be responsible for payment of at least thirty-five percent (35 %) of the estimated first annual assessment for the entire district, as set forth in the petition (hereinafter, the "weighted majority" of property owners). (b) At a minimum, the petition must contain a complete summary of the following: (1) The proposed improvements, services and activities of the CBD (collectively, "Services "). (2) Identification of how the proposed Services meet a broader goal of one or more of the following: a. The city's strategic plan, b. The city's comprehensive plan, c. Any applicable neighborhood revitalization strategy, d. Any applicable park and recreation plan or relevant sub area study, or e. Any other plan or policy adopted by the city which promotes community and economic development prosperity. (3) Map showing the boundaries of the proposed CBD, in relation to city streets and identified lots and blocks, sufficient for property owners to determine if their properties are or are not included within the proposed district. (4) Proposed term of the CBD in years, if any. (5) Assessment methodology and method for the billing and collection of assessments. (6) Policy for any assessment exemptions in the CBD. (7) Outline of proposed capital projects that the assessments shall fund. (8) Proposed management structure of the CBD by an existing 26 USC § 501(c)(3) organization ( "501(c)(3) organization ") or the establishment of a new 501(c)(3) organization. (9) Proposed plan of implementation of the projects and programs outlined in the petition. (10) Any other criteria that the city manager deems relevant and appropriate with respect to the purpose of the proposed CBD and the city's strategic plan. (c) Upon receipt of a complete petition, the city clerk shall: (1) Issue a certification of completeness to the petitioners, and (2) Schedule a public hearing before the city council for the purpose of taking testimony and action on the petition. The hearing shall be scheduled at the earliest practicable time, but in no event sooner than thirty (30) days following the clerk's certification of petition completeness. (d) Within forty -five (45) days of the issuance of a certificate of petition completeness, but not less than fifteen (15) days prior to the scheduled public hearing the applicant shall cause mail ballots to be delivered to all property owners proposed to be included in the CBD. The ballots shall include the following questions necessary to gauge property owner support of the CBD: (1) Do you generally support the formation of the proposed CBD and the improvements, services and /or activities it is to provide? (2) Do you agree that the improvements, services and /or activities will benefit your property? (3) Do you agree with the assessment methodology being proposed? In addition, each ballot shall indicate the estimated dollar amount to be assessed to that property in the first full year of CBD operations. (e) The ballots shall be remitted to the city clerk at least thirty (30) days prior to the scheduled public hearing, and the clerk shall summarize the results of the same for introduction into the hearing record. (f) At the public hearing, the city council shall take testimony and evidence from any person, and shall also consider the summary of results of the mail ballots submitted. (g) Following the hearing, if the city council finds that the mail ballots demonstrate that the weighted majority of property owners support the creation of the CBD, the council may adopt an ordinance creating the CBD. If the city council finds that the mail ballots demonstrate that the weighted majority of property owners do not support the creation of the CBD, the city council shall deny the CBD petition. (h) If the city council adopts an ordinance creating the CBD, the petition submitted to city council (as the same may have been amended) shall become known and shall function as the "CBD plan for the district ". Sec. 10 -17. Collection of CBD assessments. (a) All property owners in the CBD shall be assessed unless explicitly excluded pursuant to the CBD plan. (b) CBD assessment schedules listing each property in the CBD shall be submitted annually and shall be assessed by the CBD in the manner set forth in the CBD plan. (c) Unpaid assessments shall be a lien on the property for which the assessment is unpaid. The CBD or the city may foreclose on the lien in order to recover the assessment due. The foreclosing party may also recover the administration cost of collection. Sec. 10-18. Term. A CBD shall be formed for the term specified in the CBD plan. If no time is specified, the CBD shall exist in perpetuity until disestablished pursuant to the procedure set forth in Sec. 10 -19. Sec. 10 -19. Disestablishment of CBD. A CBD may be disestablished by the city council, acting by ordinance, under either of the following procedures: (1) The council, acting on its own motion, may disestablish a CBD following notice and hearing as provided in this section. (2) The property owners within a CBD shall have the right to petition the city council for disestablishment of a CBD; provided, however that any such petition must be received by the city clerk within the thirty (30) days prior to the annual anniversary of the effective date of the ordinance creating the CBD. The petition shall verify that the city shall not be required to provide continued Services of special benefits to the CBD upon its disestablishment, and that there are no outstanding liabilities or responsibilities created pursuant to the then current CBD plan. If the owners of real property responsible for thirty -five percent (35 %) or more of the assessments levied for the CBD in the most recent calendar year submit a valid petition for disestablishment of the CBD the following procedure shall be initiated: As soon as practicable after the receipt of a valid petition, the city clerk shall schedule a public hearing before the city council, following not less than fifteen (15) days public notice. At the hearing, any person may appear and give evidence and testimony. Following the hearing, the council shall determine whether the CBD has any outstanding liabilities or responsibilities created pursuant to the then current CBD plan. b. If the city council finds that no such liabilities or responsibilities exist, it may adopt an ordinance to disestablish the CBD. If the city council finds that such liabilities or responsibilities exist, it may vote to disallow the disestablishment of the CBD. c. In the event the petition is disallowed, the petitioners may resubmit an amended petition within two (2) months, detailing a revised disestablishment plan that outlines the time period for continued assessments based on existing and identified liabilities and responsibilities of the CBD. The amended petition and revised plan shall clearly identify obligation of the CBD to satisfy its liabilities and responsibilities and shall verify that the city shall not be required to provide continued Services of special benefits to the CBD upon its disestablishment. d. In the event the disestablishment plan or petition contains a strategy to satisfy an outstanding liability or responsibility over a period of time, the city council may approve disestablishment of the CBD only conditionally upon the satisfaction of any such liability or responsibility. Sec. 10 -20. Management of CBD. The organization named or created to manage the CBD shall, as a condition of the effectiveness of the ordinance creating the same, promptly enter into a contract with the city, through the office of the city manager, to administer and manage the CBD on behalf of the property owners contained therein. This contract shall be updated annually to describe the annual work plan set forth in Sec. 10 -21. Sec. 10 -21. Annual work plan; withholding assessments. (a) On an annual basis, the CBD, through its management organization, shall present a work plan to the city manager, which plan shall: (1) Describe the programs and projects the CBD desires to implement, and (2) Provide project analysis data sufficient for the city manager to identify how the use of the assessed funds is meeting the CBD's purposes as outlined in the CBD plan. (b) If the work plan submitted is contrary to the CBD's purpose, the city treasurer, upon the direction of the city manager, may withhold a portion of the assessments that do not meet the CBD's purposes. Any assessments so withheld must be placed in an interest bearing escrow account and shall be made available to the CBD only upon presentation and approval of an amended work plan which is acceptable to the city manager. (c) At no time shall the city reduce its level of public services in the area of the CBD below that offered to the city generally in response to an insufficient work plan or in lieu of withholding assessments. Sec. 10 -22. Amendments to CBD assessment or CBD plan generally. All amendments to the CBD plan, including amendments to the assessment methodology, shall be processed according to the procedure for formation of a CBD set forth in Sec. 10 -16 above. Section 2 . By the creation of a new Chapter 10, Article II, the existing Sections 10 -1 through 10 -14 shall be renumbered as Article I, titled "Special or Local Improvement Districts." The content of said Sections is not affected by this Ordinance. Section 3 S everability: Conflicting Ordinances Repealed If any section, subsection or clause of this ordinance shall be deemed to be unconstitutional or otherwise invalid, the validity of the remaining sections, subsections and clauses shall not be affected thereby. All other ordinances or parts of ordinances in conflict with the provisions of this ordinance are hereby repealed. Section 4 . Effective Date This Ordinance shall take effect fifteen days after final publication, as provided by Section 5.11 of the Charter. INTRODUCED, READ, AND ADOPTED on first reading by a vote of 8 -0 on the 24th day of November, 2008, order it published, Public Hearing and consideration on final passage set for December 8, 2008, at 7:00 o'clock p.m., in the Council Chambers, 7500 West 29th Avenue, Wheat Ridge, Colorado. I further move that the official location for Legal Publication of this Ordinance be the City of Wheat Ridge website, www.ci.wheatridge.co.us READ, ADOPTED AND ORDERED PUBLISHED on second and final reading by a vote of to , this day of 2008. SIGNED by the Mayor on this day of 2008. Jerry DiTullio, Mayor ATTEST: Michael Snow, City Clerk Approved As To Form Gerald E. Dahl, City Attorney First Publication: November 25, 2008 on www.ci.wheatridge.co.us Additional Publication: December 4, 2008 — Wheat Ridge Transcript Second Publication: Effective Date: ITEM NO: A-L or< E al-P COMMISSION/BOARD RECOMMENDATION: gm�� STATEMENT OF THE ISSUES: ALTERNATIVES CONSIDERED: FINANCIAL, IMPACT: 3 In 5 However, Experience has shown that once the assessment district has been formed, the private property owners in the district leverage the existing general benefits provided by the City and promote the special benefits as an enhancement to these general benefits. This is due to the fact that the property owners are now organized and can implement things such as trees and new trash cans and the CBD assessment revenues can maintain additional trash cans, with the understanding that these improvements would be accessories to or in addition to the general benefits or capital improvements which are funded by the City. r2 0- the property owner who submits the petition, Within the proposed District. 9 3. 4. 5. 6. 7. 8. In How long does this process take 7 ro tzim In Wheat Ridge, the CBD ordinance will have no set term. This is to allow property owners to determine if they wish to fund long term capital improvement projects that will provide special benefit to their district. The district can • formed for any amount of time,. E -41 -1 1 : 1 �i I III lilililll!illl I iiiiii iiiiiiii Can the City withh!L)Ld the ass�gments from the DLstnLct? 1� approved by the City. Additionally, the City cannot Withdraw its current baseline level of assessments since the district can only fund "special •e establish Qnce , can the City increase the assessments? 10 IN Business Local Local New Wheat Improvement improvement Maintenance Ridge District District District Community Benefit District Legislative CRS 31-25-1201 Denver Charter Denver Garter City Council Authod to 1228 7.6.1- 7.6.20 7.7.1- 7.7.19 _99212!!2n Purpose To expedite Constructing or Care, operation, To expedite commercial installing any security, repair, neighborhood, revitalization public maintenance mixed -Use, or programs improvement and commercial through funding replacement of revitalization special benefits pedestrian and programs including transit malls through funding improvements special benefits and activities: including Marketing and improvements promotions, and activities: special events, Marketing and security, snow promotions, removal, fund special events, public security, snow improvements removal, fund and their development of maintenance, public space, etc. public improvements and their maintenance, paying for administration and non - profit management expenses, etc. Powers -To have Constructing or Care, operation, To have perpetual installing any security, repair, perpetual existence, public maintenance existence; -have and use a improvement and -have and Use a corporate seal; replacement of corporate seal; -sue and be pedestrian and -sue and be sued; transit malls sued; -enter into -enter into contracts, contracts, - borrow money - borrow money and issue and issue negotiable negotiable bonds, bands, - provide special provide special benefit services benefit services listed above; listed above; - acquire, - acquire, construct, construct, finance and finance and IN 3 install install improvements; improvements; - dispose or real - dispose or real and personal and personal property; property; -have _have management management` control and control and supervision of supervision of affairs of the affairs of the district, district, -to fix and -to fix and increase or increase or decrease rates; decrease rates: power to levy ad power to levy ad valorem taxes; valorem taxes; - Special _special assessment assessment power power 3 1E Business Improvement District Local Improvement District Local Maintenance District New Wheat Ridge Community Benefit district Creation and 1. Initiated by a 1. Initiated by a 1. Initiated by a Initiated by a establishment petition filed petition filed with petition filed with petition filed with with the clerk of the manager of the manager of the City Clerk's the governing Public Works, Public Works, office signed by body signed by signed by not less signed by not less owners of at owners of at than 35% than 35% least 35` of the least 50 of the property owners property owners assessments to assessed of the of the be paid into the valuation and at municipality who municipality who district. least 50% of the own real own real districts land property in the property in the The petition shall area: district district include a 2. Petition shall 2. Hearing by 2. Hearing by summary of the set the name. the Manager of the Manager of management description of, Public Works Public Works plan which boundaries and 3. Ordinance 3. Ordinance specifies the service area, establishing establishing boundaries of description of district district the proposed types of services CB©, term (if and/or any), special improvements benefits to be funded; benefit zones if any assessment methodology} any exemptions! capital protects, management of the district. The petition would trigger a mail balloting procedure that would demonstrate support among the affected property owners. The mail ballots, which are advisory, are due at the public hearing and would advise the City Council on the level of weighted su ort for 1E Business local local New Wheat Improvement Improvement Maintenance Ridge District District district Community Benefit District Governing Body -City Council, tone Board of Proposed that - Beard of Directors (5) either wheat Directors by appointed by Ridge 2020 or a Council, Five the Mayor new non - profit members from organization of the electors of the property the district; owners paying - Council may into the district provide by enter into a ordinance that contract with the the governing City Manager to body of a URA, administer the DDA or CHID serve district on a day as the acting to day basis board Duration Per etual Per etual Per etual Per etas[ Bond Authority Interest bearing Interest bearing None Not determined bonds derived bonds derived yet from general ad from general ad valorem taxes of valorem taxes of the district, first the district, first approved at an approved at an election election Taxing Power Levy and collect None None None, on ad valorem taxes proper t v tax bills Fees Fix rates, tolls, Assess costs of Assess costs of Not determined charges for any improvements improvements as of yet services or against property against property improvements specially specially furnished by the benefited. Use benefited. district of revolving fund. assessments • • Wor Area District Year Petition Sunset Legislative Adopted Services Allowable Required? Provision Name Arizona Property 1990 Landscaping, Security, No None Business Imp. Economic District Development, Advocacy, Marketing and Promotions, Parkin , Gleanu , etc. New Jersey District 1984 Landscaping, Security, No None Management Economic Act Development, Advocacy, Marketing and Promotions, P arki I, Cleanu New York Business 1980 Landscaping, Security, Not None City Improvement Economic specified, District Act Development, petition Advocacy, Marketing based and Promotions, upon Parking, Cleanup, etc. assessed valuation, consensus regd. California Landscaping 1972 Landscaping, No None (Streets and and Lighting Lighting, Highway Act Minor Capital Code IM rovements California Property 1994 Landscaping, Security, 50% of 5 years (Streets and Business Economic weighted Highway Improvement Development, property Code) District Act Advocacy, Marketing owners and Promotions, Parking, Cleannyp, etc. San Diego, Maintenance 1998, Landscaping, Security, No None CA Assessment Amended Economic District in 2003 Development, Advocacy, Marketing and Promotions, Parkin , Cleanu ,etc. 17 Area District Year Petition Sunset Legislative Adopted Services Allowable Required? Provision Name Leas Alpha PBID April 2000 Landscaping, Security, 30% 10 years Angeles, Economic weighted CA Development, property Advocacy, Marketing owners and Promotions, Parkin , Cleanu ,etc. Oakland, Business Imp. November Landscaping, Security, 30% 10 years CA Maintenance 1999 Economic weighted District Development, property Advocacy, Marketing owners and Promotions, Parkin.. , Cleanu ,etc. San San Francisco February Landscaping, 3014 15 years Francisco CBD 2003 Landscaping, weighted Ordinance Economic property Development, owners Security, Advocacy, Marketing and Promotions, Parking, Cleanu ,etc. Wheat Community Pending Landscaping, Security, 35`7 of None Ridge Benefit District Economic weighted (Proposed) Ordinance Development, property Advocacy, Marketing owners and Promotions, Parking, Cleanup, etc. (also possibility of funding minor capital irn rovements 18 PART IV - THE PATH TO GET STARTED • 1► IE 20 PART V - WHEAT RIDGE 1 ! DETERMINATION OF s D FORMATION 1 • • i • ! F l l il l i 11 • • 111 1-1 PART V11. MANAGEMENT .OF DISTRICT 23 } Wheat Ridge • • Property or m Though assessment districts add costs to your business and residential parcel they are considered to be a solid investment in your neighborhood or business community due to the following: I 1. The assessment district model is a proven model of generating revenues to fund special benefits over and above those funded by the general fund of a City; 2. The special benefits to be funded, their costs and their frequency are determined by the benefiting property owners themselves; 3. Property owners, in the City of Wheat Ridge, must petition and vote to establish the district through a public hearing process; 4. Most people's greatest investments are in their homes or businesses an* 5. One hundred per cent of the special benefit assessments generated, by law, must fund services within the boundaries of the district; 6. Stakeholders, the assessees themselves, determine how and who will provide the special benefit services; 7. The district can be disestablished based upon a vote of the affected property owners. It is no more difficult to take apart an assessment district, than it is to establish one, I W OEM= SAMPLE LETTER TO WHEAT RIDGE 2020 • THE DESIRE TO ACCESS RESOURCES TO INVESTIGATE A NEW WHEAT RIDGE COMMUNITY BENEFIT DISTRICT Mr. Rob Osborn Address I 2 7 ATTACHMENT SAMPLE PRELIMINARY WHEAT RIDGE C.B.D. BUDGET AND PLAN DocUMENT Proposed CBD District ,area: 38th Street Corridor CBD Steering Committee Chair: List name and organization, Address Phone and R -Mail Proposed CBD District Boundaries: Preliminary boundaries include: A Street on the South B Street on the North C Street on the East D Street on the West Total of 18 square blocks Annual Assessment Revenues. $ 180,000.00 in assessments per year C 'P! Factor An annual CPI adjustment is allowable as per the plan, not to exceed 5% per year Benefit Zones Where is only one benefit zone in this plan Special Benefit Services Desired: Sidewalk cleaning and sidewalk snow removal Trash receptacle placement and emptying Steam cleaning of sidewalks Tree planting and maintenance Decorations Special events (2 per year) Removal of graffiti and bulky items Marketing and promotions Advocacy Planning activities Facilitating mixed use development Term of District: Perpetual 28 Assessment Methodology Assessment levied on all parcels, public and private, tax - exempt not excluded: 33% of assessment ($60,000) generated from linear frontage 33% of assessment ($60,000) generated from lot size 33% of assessment ($60,000) generated from land use or building square footage Annual Costs per variable. $ 5,00 per linear foot per year $ 00.015 (1 '!2 cent per square foot of lot per year) $ 00.0356 per building square foot per year Highest Annual Assessment: $22,000, abcd 38th Street Lowest Annual Assessment; $ 180.00 per year for loft/condo owners at Detg 38th street Management Entity Wheat Ridge 2020 Commencement Date: Fiscal year 2009 -10 Other Conditions: Area is mixed use and low rise. Only retail and commercial building uses will pay into marketing and promotions budget 29 ATTACHMENT LIM Mat= c " M eA CITY OF WHEAT RIDGE, COLORADO INTRODUCED BY COUNCIL MEMBER Council Bill No. 20 Ordinance No. SEC. 10-16. INTENT. IT IS THE INTENT OF AR TICLE PRO CESS T CREATE AND ADMINISTER COMMUNITY BENEFIT DISTRICTS It t -16. FORMATION OF CLERK (a) THE CITY COUNCIL MAY CONSIDER THE FORMATION OF A CBD UPON THE SUBMISSION TO THE CITY BY PROPERTY OWNERS TO BE INCLUDED IN THE CBD t PETITION s+ SAME, THE A T T A C O n o m mm a O n m N T zaft RESPONSIBLE FOR PAYMENT OF AT LEAST THIRTY-FIVE PERCENT (35%) OF THE ESTIMATED FIRST ANNUAL ASSESSMENT FOR THE ENTIRE DISTRICT, AS SET FORTH IN THE PETITION (HEREINAFTER, THE 'WEIGHTED MAJORITY" OF PROPERTY O • EXISTING PROPO 2 1 O RGANIZATION ST • O RGANIZATI O N") # F XM � . THE EST y OR GANIZATION. (1) ISSUE A CERTIFICATION OF COMPLETENESS TO THE PETITIONERS, AND BALLOTS .\ BE REMIT a$ T CITY CLE RK A LE DAYS P RIOR e T SCHE DULED PUBLIC HEARING, AND THE R S SUMMARIZE -. O H SAME FOR INTRODU . : IN TO : ARRECORD AT r PUBLIC HEARING C S HAL L A. TEST IMO N Y AND EVIDENCE FROM ANY PERSON . ■ SHALL A e CONSIDER < OF . OF BALLOTS a SUBMITTED C O U NCIL (h) IF THE CITY ADOPTS 'NORDINANCE CREATING CBD THE PETITION : < # TO CITY COUNCIL HAVE BEE AME .< ■ ■ SHALL BECOME KNOWN *.■ , O a PLA . . A FOR THE DISTRICT" . . 1R: ©e \ eN OF ClB ASSESSM ,:$, a $ <� . ;a : � • -� a � <■ § ■ '� e , ■ ■ - ,.. ENF ORCEMENT OR APPEAL OF ASSESSMENTS SHALL BE P Te .` WS GOVERNING $ L e O PROPERTY TA GE A CBD « .A BE ® a FOR - . T ERM SPECIFIED IN THE CBD P LAN. IF N O TIME S THE ?; ■ SHALL EXIST IN PERPETUITY UNT DISESTABLISHED - TO THE PROCEDURE SET F$: \ 10 10-19. DISESTABLISHMENT OF ClB CBD M Y BE DISESTABLISHED B .< E CITY COUNCIL, ACTING BY ORDINANCE, UNDER EITHER OF THE FOLLOWING PROCEDURES: COUNCIL, <; ■ w » MOTION, DISESTABLISH ;$ FOLLOWING NOTICE AND HEARING S PROVIDED I. SECTION. ON AN ANNUAL BASIS, . ■ THROUGH < MANAGEMMENT < ORGANIZATION, SHALL PRESENT , WORK PLAN e THE CITY MANAGER, WHICH PLAN SHALL: DESCRIBE \ PROGRAMS AN a PROJECTS THE CBD DESIRES °$ AND ( PROVIDE PROJECT § ANALYSIS DATA SUFFICIENT THE CITY MANAGER $ IDENTIFY HOW THE USE e© THE ASSESSED FUNDS MEETING THE t ■ PURPOSES AS OUTLINED < IN THE CBD PLAN. Sec. 10-22. AMENDMENTS TO CBD ASSESSMENT OR CBD PLAN GENERALLY. Section2. By the creation of anew Chapter 10, Article 11, the existing Sections 10-1 through 10-14 shall be renumbered as Article 1, titled "Special or Local Improvement Districts." The content of said Sections is not affected by this Ordinance. INTRODUCED, READ, AND ADOPTED on first reading by a vote of to on the day of , 2008, ordered published in full in a newspaper of general circulation in the City of Wheat Ridge and Public Hearing and consideration on final passage set for , 2008, at 7:00 o'clock p.m., in the Council Chambers, 7500 West 29th Avenue, Wheat Ridge, Colorado. READ, ADOPTED AND ORDERED PUBLISHED on second and final reading by a vote of - to , this day of ,2008. SIGNED • the Mayor on this day of 2008. Jerry Di Tull io, Mayor �l Michael Snow, City Clerk Approved As To Form Gerald E. Dahl, City Attorney