1 STAFF REPORT
DATE: March 15, 2022
TO: Justin Hess, City Manager
FROM: Patrick Prescott, Community Development Director Via: Simone McFarland, Ass istant. Community Development Director , Economic Development and Housing, and
Mary Hamzoian, Economic Development Manager
BY: Marissa Minor, Administrative Analyst II
SUBJECT: Approval of the Downtown Burbank Property Based Business Improvement District Fiscal Year 2022 Annual Report
RECOMMENDATION
Approve the Downtown Burbank Property Based Business Improvement District’s (PBID) Fiscal Year (FY) 2022 Annual Report (Attachment 1) pursuant to Section 36650 of the California Street and Highways Code.
BACKGROUND
The Downtown Burbank Property Based Business Improvement District (PBID) was established by City Council in 2003 and has been renewed three times, twice for a five- year term in 2008 and 2013, and again in 2018 for a 10- year term through 2028. The PBID’s 2018 renewal extended the boundaries of Downtown Burbank (Downtown) south to Alameda and increased the budget by 48% , which now totals a pproximately $1,024,000 annually.
The Annual Report (A ttachment 1) is required by the California Streets and Highways Code Section 36650 and provides an outline for the programs and services that the PBID will offer in FY 2022, which runs from January 1 to December 31, 2022.
In its 19 years of operation, the PBID has been the main driving force in support ing the evolution of Downtown into a vibrant, mixed- use urban neighborhood with housing,
COMMUNITY
DEVELOPMENT
2 entertainment, shopping, and dining establishments for residents, visitors, and employees.
The PBID is governed by the Downtown Burbank Partnership, a non-profit organization with Board members comprised of brokers , and property and business owners in Downtown. The purpose of the PBID is to fund and manage projects and programs that enhance the economic wellbeing of Downtown, while working in collaboration with property owners and business owners to increase consumer spending and visitation. The goals of the PBID are to:
• Preserve and improve the aesthetics of Downtown through enhancements to infrastructure;
• Increase the frequency of power washing and maintenance; • Market Downtown as a destination and attract events to increase visitation and consumer spending;
• Enhance safety and provide hospitality and social outreach services through StreetPlus;
• Maintain a low vacancy rate through leasing support, broker outreach, and advocacy; • Support businesses and streamline processes to help them recover from the COVID- 19 Pandemic (Pandemic); and
• Support the formation of a livable and walkable neighborhood.
DISCUSSION
The Downtown Burbank Partnership 2021 Year in Review and 202 2 Looking Ahead Marketing Report, referenced as Attachment 2, provides highlights of the PBID’s accomplishments in FY 2021 and plans for 2022. Highlights from the 2021 Year in Review focus on mitigation and recovery from the Pandemic for the businesses in Downtown and include the following:
• The addition of new dining furniture and umbrellas in the communal in-street dining parklets to support restaurants during the recovery phase of the Pandemic by providing expanded outdoor dining areas;
• Continued weekly enhanced maintenance services including cleaning of high- traffic touch points and communal dining parklets;
• Weekly ‘Music on the Boulevard’ performances to attract more visitors and enhance the ambiance in Downtown;
• Continued marketing campaigns promoting new restaurants/retailers, existing shopping and dining establishments, outdoor dining, events, entertainment, and hospitality options;
• Continued dedicated social media and newsletter campaigns for visitors and businesses;
3 • Maintaining holiday décor throughout the district including: a 36' walk-thru tree, four medians in Zone 3 decorated with 4' and 6' gold stars, an LED star canopy on the AMC Walkway;
• Maintaining hospitality and social service outreach program through Street Plus ; and
• The attraction of new retailers and restaurants and maintain a low vacancy rate including Milano Café & Deli, Cheebo Express, Sushi Stop, Artelice Patisserie , Papa’s Meat and Seafood , Nineteen85 Nail Bar, Finney’s Crafthouse and the relocation of Unique Vintage, with additional tenants opening in 2022. The vacancy rate for Downtown Burbank in Fourth Quarter 2021 was 12.4%. This number is relatively high because the old IKEA building as well as additional vacancies in the Burbank Town Center are included within the vacancy rate.
Coordinated Action with the Economic Development Team
To mitigate the ongoing impacts of the Pandemic and support the recovery process, the PBID, in partnership with the City’s economic development team , has focused its 2021/2022 efforts on implementing the strategies set forth in the City’s Economic Recovery Plan adopted by City Council in May 2020. Strategies focused on recovery and resiliency and included the following:
• Removing barriers to entry and streamlining the entitlement process for businesses such as the removal of the Administrative Use Permit process for new restaurants and removing the Conditional Use Process for restaurants, breweries, distilleries and wineries wishing to sell alcohol offsite; • Extending urgency ordinances for outdoor dining to allow restaurants to expand on sidewalks and private parking lots through December 31, 2022; • Extending outdoor dining parklets in Downtown through December 31, 2022; • The addition of 20-minute curbside/take-out parking spaces along San Fernando Boulevard to allow for convenient take-out parking for restaurants; • Conducting an in-person pop-up job fair on the AMC Walkway to assist businesses with staffing and hiring needs; and
• Encouraging restaurants in Downtown to join the City funded Chamber of Commerce Chow Down Burbank marketing and promotional campaign.
As Downtown continues to recover from the P andemic, the PBID will continue to work with the C ity’s economic development staff to mitigate the negative effects of the Pandemic and ensure that Downtown remains a t hriving entertainment destination with new retailers and restaurants, housing, enhanced capital improvements, hospitality and social outreach services, and a diverse mix of events and marketing.
4 Looking Ahead 2022
For the past 19 years, the PBID has been the only constant funding mechanism in place to dedicate more than $1 3.24 million in funding back into Downtown through capital improvements, maintenance, infrastructure, event s, social services, marketing, advocacy, and leasing support. This funding mechanism and the benefits created would not be possible without the commitment and investment from the PBID, especially during the challenges presented by the Pandemic. Looking ahead, the PBID plans to carry out the following initiatives in FY 2022:
• Enhance outdoor parklet aesthetics and maintenance;
• Create a robust district marketing strategy focused on promoting Downtown as a destination for shopping, dining, and entertainment;
• Create a tenant attraction strategy in partnership with the broker community and produce a broker focused event in Downtown;
• Attract events to Downtown to increase pedestrian traffic and consumer spending; • Maintain Hospitality and Social Outreach Services with a focus on district maintenance, homeless outreach, and street performer management; • Implement a new wayfinding signage program to beautify Downtown and support safe streets;
• Create outreach and marketing support for the City’s Complete Streets Program; • Maintain holiday décor program and ambient outdoor lighting year-round; and • Conduct an audit of 2021 finances to ensure continued compliance with the Management District Plan and create transparency with stakeholders.
California Street and Highways Code Section 36650 Requirement The California Streets and Highways Code Section 36640 requires an owners’ association to prepare a report for each fiscal year, except the first year, for which assessments are to be levied and collected to pay the cost of the improvements, maintenance, and activities described in the report. The report may propose changes, including, but not limited to, the boundaries of the property and business improvement district or any benefit zones within the district, the basis and method of levying the assessments, and any changes in the classification of property, including any categories of business, if a classification is used.
In compliance with the State law and the Management District Plan for the PBID, the FY 2022 Annual Report outlines the boundaries of the PBID, the method and basis of levying the assessment for each property owner, and future plans for 2022.
FISCAL IMPACT
There is no fiscal impact to the City’s General Fund by approving the FY 2022 Annual Report. However, the efforts of the PBID are expected to continue to maintain or increase sales tax revenue for the General Fund as the P andemic comes to an end. T he PBID continues to fund maintenance and capital improvement projects in Downtown that would 5 not otherwise be possible without the investment from the PBID . Additionally, the PBID contributes $170,772 annually towards Economic Development staff salaries.
CONCLUSION
As the end of the Pandemic comes into sight, the PBID continues to be optimistic about the future of Downtown Burbank. Despite continued challenges in 2020 and 2021 from the Pandemic, the PBID and economic development staff worked tirelessly to advocate and support property owners and businesses with resources, information, and marketing efforts. Despite the challenges, the PBID was successful in attracting multiple new tenants to Downtown in 2021 while also implementing new outdoor dining furniture, continuing to provide much needed services such as enhanced weekly maintenance and cleaning of high-traffic touch points, maintaining holiday décor and including year-round ambient lighting, and attracting several new retailers and restaurants.
Looking ahead, 2022 will be focused on continued recovery and opportunities to build resilience. The ongoing efforts of the PBID to further manage the evolution and success of Downtown, coupled with the approved and proposed mixed-use housing developments, provide a unique opportunity for growth and incorporating an 18- hour environment in Downtown where residents, visitors, and employees can live, work, and explore. The PBID is looking forward to continuing to work collaboratively with the City’s economic development team to create a safe, beautiful, and thriving community.
ATTACHMENT
Attachment 1 – Downtown Burbank Property Based Business Improvement District (PBID) Annual Report FY 2022
Attachment 2 – Downtown Burbank Partnership Accomplishments for 2021 and Looking Ahead 2022