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CITY OF GLENDALE, CALIFORNIA
REPORT TO THE SPECIAL CITY COUNCIL
AGENDA ITEM
Report: Montrose Shopping Park Business Improvement District Annual Work Plan (Budget) for Calendar Year 2024 and Extend the Management Agreement
1. Motion to accept Montrose Shopping Park Association 2024 Budget and Annual Work Plan.
2. Motion to extend the terms of the management agreement with the Montrose Shopping Park Association for five years until December 31, 2028.
COUNCIL ACTION
Item Type: Action Item
Approved for December 12, 2023 calendar
EXECUTIVE SUMMARY
Each year the Montrose Shopping Park Association submits its Proposed Budget for the upcoming year, outlining various marketing strategies and allocation of assessment funds. The current Management Agreement between the City and the Montrose Shopping Park Association (MSPA) expires on December 31, 2023. Extending this Agreement for an additional five years will ensure continued support for the business improvement district.
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RECOMMENDATION
Approve the motion accepting the Annual Work Plan (“Budget”) as submitted by the Montrose Shopping Park Association (“MSPA”) for the calendar year covering January 1, 2024 through December 31, 2024, and extend the terms of the Management Agreement for five years, terminating December 31, 2028.
ANALYSIS
Budget
Annually, the MSPA, in the capacity of the Business Improvement District (BID) Advisory Board, is required by local ordinance and the California Streets & Highway Code to submit an annual budget that estimates the expenditures necessary to implement its annual work plan. The City Council must review and approve the budget, which is funded solely by the merchants. The work plan includes various tools for marketing and promoting the district and details how assessment funds will be spent during the upcoming calendar year.
Management Agreement
The current Management Agreement between the City and the Advisory Board that allows the Advisory Board to administer the assessment funds for the marketing and promotion of the BID expires on December 31, 2023. The MSPA has consistently managed the BID in a professional manner and as a result improved the standing of the organization and its financial position.
Many of the Montrose Shopping Park iconic events that provide a substantial income flow, such as the Montrose Wine Walks and Arts & Crafts Festival, have returned and continue to attract locals and visitors to the Montrose Shopping Park. The Montrose Harvest Market has consistently remained open throughout the year and generated an estimated revenue of $196,860.
The MSPA has submitted a 2024 budget which shows a recap of 2023 revenues and expenses (Exhibit 1) and the 2024 detailed work plan/budget (Exhibit 2). The 2024 total estimated income is $478,000, that includes $152,650 in assessments and $325,350 from key revenue generating events and programs such as Harvest Market, Arts & Crafts Festival, Wine Walks, and Filming.
2024 is expected to be another successful year of popular events that will continue to bring the community together.
STAKEHOLDERS/OUTREACH
The MSPA works with their board to create their budget / work plan. No additional outreach was required with this item.
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FISCAL IMPACT
There is no fiscal impact associated with this report.
ENVIRONMENTAL REVIEW (CEQA/NEPA)
CEQA does not apply to projects where the lead agency determines "with certainty that there is no possibility that the activity in question may have a significant effect on the environment." CEQA Guidelines (14 Cal. Code Regs.) § 15061(b)(3).
Here, the action involves approval of a budget and work plan involving advertising and activities at an existing shopping park district, and extension of an existing management agreement. There is no possibility that the action to note and file this report may have a significant effect on the environment.
CAMPAIGN DISCLOSURE
This item is exempt from campaign disclosure requirements.
ALTERNATIVES TO STAFF RECOMMENDATION
Alternative 1: Request that the Montrose Shopping Park Association make specific revisions and resubmit.
Alternative 2: Council may consider any other alternative not proposed by staff.
ADMINISTRATIVE ACTION
Submitted by:
Bradley Calvert, Director of Community Development
Prepared by:
Soua Vang, Deputy Director of Community Development
Jennifer De La Mora, Principal Economic Development Officer Approved by:
Roubik R. Golanian, P.E., City Manager
EXHIBITS/ATTACHMENTS
Exhibit 1: Montrose Shopping Park Association Budget 2024 Exhibit 2: Montrose Shopping Park Budget and Work Plan 2024 Exhibit 3: Montrose Shopping Park Association Management Agreement