DEPARTMENT: Center City Development & Operations Department
DEPARTMENT HEAD: Lori Houston
COUNCIL DISTRICTS IMPACTED: 1
SUBJECT:
Public hearing and consideration of the following Ordinances related to the Downtown Public Improvement District:
A. An Ordinance approving the levy of a Special Assessment for the Downtown Public Improvement District (PID); levying an assessment rate for Fiscal Year 2016 at $0.15 per $100.00 value of real property in the PID and $0.09 per $100.00 value of residential condominiums; and approving the Fiscal Year 2016 Services and Assessment Plan for the PID.
B. An Ordinance authorizing the Second Amendment to the Interlocal Agreement with VIA Metropolitan Transit Authority increasing their contribution by $69,000.00 annually for participation in the Downtown Public Improvement District through September 30, 2023.
SUMMARY:
This public hearing is called to consider public comment in conjunction with City Council consideration of an ordinance approving the levy of a special assessment to fund supplemental services for the Downtown Public Improvement District (PID); maintaining an assessment rate at $0.15 per $100.00 value of commercial real property in the PID and $0.09 per $100.00 value of residential condominiums in the PID; approving the FY 2016 Service and Assessment Plan (the Plan) for the PID; and amending the Interlocal agreement with VIA Metropolitan Transit Authority increasing their contribution by $69,000.00 annually for a total contribution of $294,000.00 annually. The Plan includes the annual budget for the PID, provides a five-year fiscal forecast and sets the supplemental special assessment rate to fund services and improvements in the PID. This item also includes the consideration and approval of levying the assessment, rate and plan immediately following the public hearing.
BACKGROUND INFORMATION:
A public improvement district (PID) is a mechanism authorized by Chapter 372 of the Local Government Code, known as the Public Improvement District Assessment Act (the Act), that permits the City to levy an additional assessment on property owners within specified boundaries that may be used for capital improvements or services which supplement those provided by city government. The Downtown PID was created in 1999 for an initial five-year term and was renewed again in 2004 and 2009. In May 2013, the City Council reauthorized the PID for a ten-year term beginning in October 1, 2013 through September 30, 2023.
The Act provides for the creation of PIDs, outlines their uses and regulates how they may operate. A PID is created to provide supplemental services to enhance existing services, and a municipality may not reduce the provision of services within the PID boundaries. Attachment A is a map of the PID boundary.
The City contracts with the Centro Public Improvement District (Centro PID), a non-profit corporation to manage services within the PID. The Centro PID provides landscaping services, maintenance services, visitor information services, a business recruitment and retention program, capital projects, branding and marketing and planning within the PID. The statute requires the Centro PID to prepare a Service and Assessment Plan for City Council consideration and approval. This plan details the levels of services and improvements for each program during the coming year, sets the assessment rate, includes financial plan/program budget and provides a five-year forecast.
ISSUE:
The Centro PID has developed and is recommending the attached Service and Assessment Plan for 2016 (Attachment B). The Plan reflects a total annual budget of $5,209,650.00 with the following program services:
• Maintenance to include sidewalk cleaning, pressure washing and graffiti abatement services performed by uniformed Centro PID crews. ($1,458,250.00)
• Landscaping including servicing light-pole mounted planters throughout the district, stair-rail planters along the River Walk and clusters of sidewalk planters throughout the PID. ($243,000.00)
• Branding and Marketing to develop and implement a branding, marketing and public relations campaign describing the services and activities in and around the District. ($425,000.00)
• Amigo Ambassador Program which provides information to downtown visitors about various downtown sites. ($731,900.00)
• Unallocated contingency which may be used for services under any of the above programs with City approval. ($100,000.00)
• Management services including oversight staff, administrative support, office space and overhead necessary for the daily services of the PID. ($822,600.00)
• Operations including field management and the Amigos operations center. ($224,800.00)
• Business Retention and Recruitment program that includes development and on-going management of a comprehensive inventory of occupied and vacant commercial, retail and residential properties within the District and the creation of a retail strategy for the Houston Street corridor. ($193,000.00)
• Research includes surveys that support the downtown brand launch and software licenses for pedestrian counts to support business recruitment. ($40,000)
The proposed enhancements in this fiscal year include:
• Other Projects within the district to update the 1999 Downtown Neighborhood Plan which includes an updated transportation and parking plan, capital projects ROI evaluation and expansion of strategies for the Downtown Experience. ($228,100.00)
• Capital projects to provide funding or partial funding for projects such as addition of wayfinding signage, decorative street lighting, landscaping infrastructure, holiday lighting program, electrical infrastructure, public art, technology solutions to gauge pedestrian traffic and downtown branding elements within the PID. ($548,000.00)
The Service and Assessment Plan was approved by the Centro PID Board on Wednesday, August 19, 2015. The Act requires the Plan to be approved by City Council.
ALTERNATIVES:
The City Council is required by the Act to approve the Service and Assessment Plan on an annual basis. If the City Council does not approve the Plan, the City may not implement supplemental services within the PID. The downtown property owners might look to the City to fund the enhanced services they have received in the past sixteen years, which have been funded through the additional assessment.
FISCAL IMPACT:
The method of PID assessment is based on the value of real property as determined by the Bexar Appraisal District. The assessment rate for each year is set in the PID’s Service and Assessment Plan. The total estimated value of taxable real property in the PID for FY 2016 is $2,543,154,047. This represents a 16% increase in the total assessed value of the PID from 2015.
This year the Centro PID is recommending maintaining the assessment levy at $0.15 per $100.00 value. Residential condominiums are proposed to remain assessed at $0.09 per $100.00 value. This levy will yield $3,778,845.00 in private property assessment.
For FY 2016, the City’s contribution to the PID is $248,355.00 and is based on the estimated value of City owned property within the PID boundaries. This includes facilities such as Municipal Plaza; City Hall; Metro Health Building; International Center; St. Mary’s and Convention Center parking garages; Plaza de Armas; Spanish Governor’s Palace; Fire Station #1; EMS Supply; Casa de Mexico; Market Square and Market Square garage; Visitor Information Center; Central Library and parking garage; and La Villita. The City’s contribution is included in the FY 2016 budget approved by the City Council on September 10, 2015.
The PID also maintains a contract in the amount of $30,000.00 with Bexar County for maintenance services around the Bexar County Courthouse and Justice Center. The PID budget also includes $225,000.00 from VIA for participation in the PID. This second amendment to the VIA Interlocal agreement increases their annual contribution by an additional $69,000.00 for an annual total of $294,000.00. The additional funds will provide for enhancements to the nightly pressure washing of bus stops from five nights a week to seven by adding Friday and Saturday nights. This work will take place from 9 pm to 5:30 am. Attachment “C” has the updated list of VIA bus stop locations to receive the enhancement.
RECOMMENDATION:
Staff recommends approval of the 2016 PID Services and Assessment Plan to fund services and improvements for the Downtown PID and the second amendment to the VIA Interlocal agreement increasing VIA’s contribution to the PID for bus stop enhancement.