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1991-204-Declaring Its Intention To Establish A Business Improvement Area To Be Known As The Downtown Los Gatos Business Improvement DistrictRESOLUTION 1991 - 204 RESOLUTION OF INTENT OF THE TOWN OF LOS GATOS DECLARING ITS INTENTION TO ESTABLISH A BUSINESS IMPROVEMENT AREA TO BE KNOWN AS THE DOWNTOWN LOS GATOS BUSINESS IMPROVEMENT DISTRICT WHEREAS, Streets and Highways Code Section 36500 et sea. (the "Act') authorizes cities to establish business improvement areas for the purpose of imposing benefit assessments and charges on businesses therein for certain enumerated purposes; and WHEREAS, the Los Gatos Downtown Business Improvement District Formation Committee (the "Committee ") has requested the Town Council establish such an improvement district. NOW, THEREFORE, the Town Council of the Town of Los Gatos does hereby resolve, determine and find as follows: 1. The recitals set forth above are true and correct. 2. The Town Council of the Town of Los Gatos, on its own motion in response to the request of the Committee, does hereby declare its intention to establish the Downtown Los Gatos Business Improvement District (the 'District') pursuant to the Act. 3. The boundaries of the territory proposed to be included in the District and the boundaries of each separate benefit zone to be established within the District are graphically set forth in Exhibit A and legally described in Exhibit B, attached hereto and incorporated herein by reference. 4. The types of improvements and activities proposed to be funded by the levy of assessments on businesses in the District are as follows: a. The acquisition, construction, installation, or maintenance of any tangible property with an estimated useful life of five years or more including, but not limited to, the following improvements: (1) Encourage the Town of Los Gatos to carry out programs that include physical clean -up of streets and sidewalks and sidewalk steam cleaning on a regular basis. (2) Trash receptacles (3) Clean -up vacant lots (4) Clean -up parking lots (5) Clean -up, visual improvements to existing commercial vacancies (6) Planting of downtown trees, shrubs, flowers, ad plants (7) Provide visitor amenities such as benches and water fountains b. Activities including, but not limited to, the following: (1) Commercial Marketing /District Advertising - Image Building Campaign - Create an institutional, long term, image - building campaign - Design and implementation of a campaign intended to encourage Los Gatos community shoppers from going to nearby malls and competing commercial districts - Create and implement an annual program of downtown - oriented retail events and activities - Coordinate closely with Chamber of Commerce regarding overall, Town -wide marketing plan (2) Commercial Recruitment and Retention Program The purpose of this program category will be to actively seek the most suitable new businesses to fill existing vacancies or vacancies as they occur. Furthermore, the creation and production of a marketing package with possible video formatting as a means of most effectively carrying out an aggressive recruitment of most desired new businesses may be an aspect of the program. This program will also provide support services to existing businesses in the form of small business assistance financing and merchandising seminars. (3) District Shuttle Service Program During the current period of downtown parking shortages, this program will assist with the development of a shuttle service to act as a people mover throughout the year for both customers and employees. The shuttle service will provide free transportation to all persons throughout an expanded service area in coordination with other Los Gatos marketing groups. 5. The Town Council intends to levy a benefit assessment annually to pay for all improvements and activities within the area except where funds are otherwise available from other sources. The proposed budget is in Exhibit C. 6. The method and basis of levying the assessments on all businesses, trades, professions and vendors within the District is set forth in Exhibit D, attached hereto and incorporated herein by reference. 7. The Town Council does not intend to exempt new businesses from the levy of the assessment. 8. A public hearing shall be held before the Town Council on October 7, 1991, at 7:30 p.m., or as soon thereafter as this matter may be heard in the Town Council Chambers, City Hall, 110 East Main Street, Los Gatos, regarding the establishment of the District. 9. At the public hearing, the testimony of all interested persons for or against the establishment of the District, the extent of the District or the furnishing of specified types of improvements or activities will be heard. Every written protest shall be filed with the Town Clerk at or before the time fixed for the public hearing. A written protest may be withdrawn in writing at any time before the conclusion of the public hearing. Each written protest shall contain a description of the business in which the person subscribing the protest is interested sufficient to identify the business and, if a person subscribing is not shown on the official records of the Town as the owner of the business, the protest shall contain or be accompanied by written evidence that the person subscribing is the owner of the business. 10. If written protests are filed with the Town Clerk at or before the time fixed for the public hearing by the owners of businesses in the proposed District which will pay 50% or more of the assessments proposed to be levied, no further proceedings to create the District shall be taken for a period of one year from the date of the finding of majority protest by the Town Council. If the majority protest is only against the specified type or types of improvement or activity within the area, those types of improvements or activities shall be eliminated. 11. Further information regarding the proposed Business Improvement District may be obtained from the Town Clerk at Town Hall, 110 East Main Street, Los Gatos, and from the BID Formation Committee, Joe Hargett, Chair (Phone: 408/395- 3185). 12. The Town Clerk is instructed to provide notice of the public hearing by both of the following: a. Publishing the resolution of intention in a newspaper of general circulation in the Town once, at least 10 days before the public hearing. b. Mailing of a complete copy of the resolution of intention by first class mail to each business owner in the District within seven days of the Town Council's adoption of the resolution of intention. 13. This resolution shall take effect immediately upon adoption. PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Los Gatos, California, held on the 16th day of September, 1991 by the following vote: COUNCIL MEMBERS: AYES: Randy Attaway, Joanne Benjamin, Steven Blanton Mayor Brent N. Ventura NAYES: None ABSENT: Eric D. Carlson ABSTAIN: None SIGNED: / MAYOR OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA ATTEST: V evt"Z I'll CLERK OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA 4 EXHIBIT B District Zones of Benefit General Boundaries ZONE A N. Santa Cruz Ave from Saratoga Ave, and including portions of Saratoga Ave, to W. Main St. S. Santa Cruz Ave from W. Main to Wood Rd. Montebello. The NE side of W. Main, beginning at the SE boundary of the parcel at the NE corner of Tait Ave, and the SW side of W. Main St beginning at the NE boundary of the 4th parcel from S. Santa Cruz Ave to E. Main St. E. Main St to Pagent. University Ave from W. Main to Mullen St including the parcel at the NE corner of University Ave and Mullen Ave. Victory Lane. Elm St. Grays Lane. Royce St from N. Santa Cruz to Boone St. The SW side of Bachman Ave from Victory Lane and the NE side of Bachman Ave from the NW boundary of the 3rd parcel NW of N. Santa Cruz Ave to Boone St and including on the NE side of Bachman Ave the 6th parcel from N. Santa Cruz Ave. The SW side of Almendra Ave from Tait Ave excluding the 6th and 10th parcels from N. Santa Cruz Ave and the NE side of Almendra from Tait Ave excluding parcels 3 through 7 from Tait Ave. Village Lane. Petticoat Lane. The NW side of University Ave beginning at Bachman Ave to Saratoga Ave excluding the 3rd through 6th parcels from Saratoga Ave. Saratoga Ave from University Ave, including the NW, NE, SW & SE corners of Saratoga Ave and University Ave to the beginning of Zone A at the intersection of N. Santa Cruz and Saratoga Ave. Saratoga Ave from the end of Zone A at the intersection of Saratoga Ave and N. Santa Cruz Ave to the Monte Sereno City Limits. N. Santa Cruz Ave from the end of Zone A at the intersection of Saratoga Ave and N. Santa Cruz to Ashler Ave. E. Main St from Pagent to Alpine St. Church St. Mills St. District Zones of Benefit General Boundaries EX[ -lIBTT B ZONE A North Santa Cruz Avenue from Saratoga Avenue to West Main Street (in- cluding portions of Saratoga Avenue). South Santa Cruz Avenue from West Main to freeway entrance. Montebello Way. West Main from Victory Lane to East Main to Church Street. University Avenue from West Main to Royce Street. Portions of Elm Street, Bean Avenue, Grays Lane, Royce Street, Nicholson Avenue, Bachman Avenue, and Alemendra. Village Lane, Petticoat Lane, and North Santa Cruz Avenue from Saratoga Avenue through Ashler Avenue. University Avenue from Royce Street to Saratoga Avenue. Saratoga Avenue from University through the 300 Block of Saratoga Avenue. East Main from Jackson to Church and portions of Church. NOTE: All Zone B businesses will pay 50% of what similar Zone A businesses will pay as it is understood that many district programs will begin in Zone A and spread benefit to Zone B. -13- Business Improvement District Proposed 3 -Year Budget Plan Budget Item 1. Commercial Marketing 2. Streetscape Enhancement 3. Commercial Recruitment and Retention Year 1 % $40,000 33% $20,000 17% $20,000 17% Year 2 % $50,000 40% $20,000 16% $15,000 13% EXHIBIT C Year 3 % $60,000 47% $15,000 12% $10,000 7% 4. Programs Administration* $30,000 25% $30,000 24% $35,000 27% 5. Shuttle Service $10,000 8% $10,000 7% $10,000 7% Total $120,000 100% $125,000 100% $130,000100% * Coordinator Fee $ 24,000 $ 26,000 $ 30,000 Overhead $ 4,000 $ 4,000 $ 5,000 Start-up Costs $ 2,000 $ 30,000 $ 30,000 $ 35,000 -15- EXHTBT'' n DOWNTOWN LOS GATOS BUSINESS IMPROVEMENT DISTRICT ANNUAL ASSESSMENT FORMULA MATRIX BUSINESS TYPE RETAIL & RESTAURANT SERVICE BUSINESSES, BANKS & FINANCIAL PROFESSIONALS TYPE 1 $350 --- - - - - -- TYPE 2 $500 $175 --- - - - - -- $250 $250 $125 $150 $75 • TYPE 1 is 1 -9 retail employees 1 -15 restaurant employees (full -time • TYPE 2 is 10+ retail employees 16+ restaurant employees equivalent) Business Types definitions: Retail: The buying and re- selling of tangible goods Restaurant or Bar: Selling prepared foods or drink Services, Businesses that sell services. Examples are beauty and barber Banks, & shops, repair shops that do not sell goods, insurance offices, Financial: contractors, auto repair, realtors, banks, savings & loans, house- hold finance companies, etc. Professional: Includes engineering firms, architects, attorneys, dentists, optometrists, physicians, etc.: -14-