Agenda packet — Lancaster City Council, April 11, 2023 (part 2 of 2)

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Section 2. The Downtown Lancaster Property and Business Improvement District is hereby renewed and the annual assessment is hereby levied for each year of the entire term of the DLPBID. The initial annual assessment will total approximately $334,978.46.

Section 3. The Management District Plan and the Engineer’s Report are hereby approved.

Section 4. The assessment shall be imposed on properties within the DLPBID. The boundaries of the district include: W. Lancaster Boulevard, bounded by 10 th Street West in the west, Jackman Street in the north, Sierra Highway in the east, and Milling Street in the south. The DLPBID also includes parcels bounded by W. Lancaster Boulevard in the north, W. Milling Street in the south, Sierra Highway in the east, and Fern Avenue in the west. Certain adjacent parcels in the Downtown Lancaster area have also been included in the DLPBID boundary.

Section 5. Assessment rates are as follows: The assessment rate (cost to the parcel owner) is based on benefit zone, parcel size, building size, and parcel type. Single family residential parcels and public easements on private parcels will not be assessed. The initial annual rate to each parcel is shown in the table below. Assessment rates may be subject to an increase of no more than three percent (3%) per year.

ZONE 1 ZONE 2
Parcel Type Parcel Size
(sq. ft.)
Building Size
(sq. ft.)
Parcel Size
(sq. ft.)
Building Size
(sq. ft.)
Commercial $0.085 $0.165 $0.045 $0.095
Apartment
Complex $0.0425 $0.0825 $0.0225 $0.0475
Section 6. The Assessment Roll for the Downtown Lancaster Property and Business Improvement District, City of Lancaster, State of California has been filed with the City Clerk, and is hereby approved.

Section 7. The assessments shall be collected in accordance with Section 36631 of the Streets and Highways Code.

Section 8. The assessment levied for the DLPBID shall be applied towards economic revitalization and maintenance programs, including clean and safe, marketing and promotion, and related advocacy and administrative programs.

Section 9. Bonds shall not be issued.

Section 10. Properties within the DLPBID are subject to any amendments to Part 7 (commencing with Section 36600) to Division 18 of the Streets and Highways Code.

Section 11. The improvements and activities to be provided in the DLPBID will be funded by the levy of the assessments specified in the assessment roll. The revenue from the levy of such assessments shall not be used to provide improvements or activities outside the district or Resolution No.

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for any purpose other than the purposes specified in the Resolution of Intention and Management District Plan. Notwithstanding the foregoing, improvements and activities that must be provided outside the DLPBID boundaries to create a special benefit to the assessed parcels may be provided, but shall be limited to marketing or signage pointing to the DLPBID.

Section 12. All property within the DLPBID will be benefited specially and directly by the improvements and activities funded by the assessments proposed to be levied.

Section 13. The City Clerk is directed to take all necessary actions to complete the renewal of the DLPBID. The City Clerk is directed to record in the County Recorder’s Office a notice and assessment diagram as required by Streets and Highways Code section 36627.

Section 14. If any section, subsection, sentence, clause or phrase of this resolution is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of the resolution.

The City Council hereby declares that it would have passed this resolution and each section, subsection, sentence, clause and phrase hereof, irrespective of the fact that any one or more of the sections, subsections, sentences, clauses or phases hereof be declares invalid or unconstitutional.

Section 15. This resolution shall take effect immediately.

PASSED, APPROVED and ADOPTED this ____day of ________, 2023, by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

ATTEST: APPROVED:
______________________________ ______________________________ ANDREA ALEXANDER R. REX PARRIS
City Clerk Mayor
City of Lancaster City of Lancaster

STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss

CITY OF LANCASTER )
Resolution No.

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CERTIFICATION OF RESOLUTION

CITY COUNCIL
I, _____________________________, _________________________ City of Lancaster, California, do hereby certify that this is a true and correct copy of the original Resolution No. , for which the original is on file in my office.

WITNESS MY HAND AND THE SEAL OF THE CITY OF LANCASTER, on this ____________ day of _____________________, _________.
(seal)
______________________________
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ORDINANCE NO.

AN ORDINANCE OF THE CITY OF LANCASTER, CALIFORNIA,
AMENDING CHAPTER 14.04 OF THE LANCASTER CITY

CODE RENEWING THE DOWNTOWN LANCASTER

PROPERTY AND BUSINESS IMPROVEMENT DISTRICT
WHEREAS, the City of Lancaster created the Downtown Lancaster Property and Business Improvement District (“DLPBID”) in 2013 by Resolution No. 13-44; and WHEREAS, the DLPBID was established for a (5) five-year term beginning January 1, 2014, through December 31, 2018, and was subsequently renewed for another (5) five-year term by Resolution No. 18-40, which ends December 31, 2023; and WHEREAS, properties who will pay more than fifty percent (50%) of the proposed assessment have petitioned the City Council to renew the DLPBID; and WHEREAS, included with the petitions was a Management District Plan (Plan) summary that describes the proposed assessment to be levied on assessed properties to pay for clean and safe, marketing and promotions, and related advocacy and administration programs, and other improvements, maintenance, and activities set forth in the Plan; and WHEREAS, the assessed properties within the DLPBID will receive a specific benefit from the activities, maintenance, and improvements set forth in the Plan; and WHEREAS, on February 14, 2023, at 5:00 PM at 44933 N. Fern Avenue, Lancaster, CA 93534, the City Council adopted a Resolution of Intention, Resolution No. 23-10; and WHEREAS, pursuant to California Constitution Article XIII D, ballots were mailed to property owners within the boundaries of the DLPBID, and, among those ballots returned to the City, a weighted majority of the property owners within the DLPBID have approved renewal of the DLPBID; and
WHEREAS, the public hearing to consider the renewal of the DLPBID has been properly noticed in accordance with Streets and Highways Code §36623; and WHEREAS, on April 11, 2023, at 5:00 PM at 44933 N. Fern Avenue, Lancaster, CA 93534, the City Council held a public hearing and conducted the first reading of this Ordinance to renew the DLPBID and continue the levy of assessments, and the City Council heard and received all objections and protests, if any, to the renewal of the DLPBID and the levy of the proposed assessment; and WHEREAS, a detailed engineer’s report prepared by a registered professional engineer certified by the State of California, Ross Peabody, has been prepared, is incorporated in the Plan, is on file with the Office of the City Clerk, and is incorporated herein by this reference (“Engineer’s Report”); and
WHEREAS, on May 9, 2023, at 5:00 PM at 44933 N. Fern Avenue, Lancaster, CA 93534, a 3 2
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final public hearing shall be held, a Resolution of Formation will be subsequently adopted, and a second reading of this Ordinance to renew the DLPBID and to continue the levy of assessments shall be conducted. At the conclusion of the second reading of the Ordinance, the City Council may adopt the Ordinance, renewing the DLPBID and levying the assessment; and WHEREAS, all written and oral protests made or filed were duly heard, evidence for and against the proposed action was received, and a full, fair and complete hearing was granted and held; and
WHEREAS, the City Council finds and declares that the properties within the DLPBID will receive a special benefit from the improvements, maintenance and activities funded by the assessments to be levied; and
WHEREAS, the City Council hereby reaffirms that the assessment imposed on each parcel does not exceed the reasonable cost of the proportional benefit conferred on that parcel; and WHEREAS, adoption of this Ordinance does not diminish the legal effect of the adoption of the Resolution of Formation.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LANCASTER DOES HEREBY ORDAIN, AS FOLLOWS:

Section 1. Chapter 14 of the Lancaster City Code is hereby amended to read as follows:

14.04.050. - Renewed.

The City of Lancaster hereby renews the Downtown Lancaster Property and Business Improvement District (DLPBID), for a ten (10) year life, beginning January 1, 2024, or as soon as possible thereafter, and end ten (10) years from its start date, under the provisions of the Property and Business Improvement District Law of 1994, as set forth in the Streets and Highways Code of the state, Section 36600 et seq.

14.04.060. - Management District Plan.

The Management District Plan (Plan) dated September 16, 2022 is hereby adopted and approved.

14.04.070. - Improvements, Maintenance and Activities.

1. The improvements, maintenance, and activities to be provided in the DLPBID will be funded by the levy of the assessments specified in the assessment roll. The revenue from the levy of such assessments shall not be used to provide improvements, maintenance, and activities outside the DLPBID or for any purpose other than the purposes specified in the Resolution of Intention, the Resolution of Formation, and the Plan. Notwithstanding the foregoing, improvements, maintenance, and activities that must be provided outside the DLPBID boundaries to create a special benefit to the assessed parcels may be provided, but shall be limited to marketing or signage pointing to the DLPBID. 3 2
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2. The City Council finds as follows:
a. All assessed property within the DLPBID will be benefited specially and directly by the improvements, maintenance, and activities funded by the assessments proposed to be levied.
b. The assessments levied for the DLPBID shall be applied toward clean and safe, marketing and promotions, and related advocacy and administration programs and other improvements, maintenance, and activities as set forth in the Plan.

14.04.080. - Budget.

The initial DLPBID annual assessment budget will total approximately $334,978.46. The annual assessment budget may be subject to an increase in assessment rates of no more than three percent (3%) per year. The assessment funds will be supplemented by non-assessment funds, so that the total budget for the initial year is estimated at $342,775.22, as detailed in the Engineer’s Report.

14.04.090. - Bonds
Bonds shall not be issued to fund the DLPBID.

14.04.110. Boundaries.

The renewed DLPBID generally includes parcels fronting W. Lancaster Boulevard, bounded by 10th Street West in the west, Jackman Street in the north, Sierra Highway in the east, and Milling Street in the south. The District also includes parcels bounded by W. Lancaster Boulevard in the north, W.

Milling Street in the south, Sierra Highway in the east, and Fern Avenue in the west. Certain adjacent parcels in the Downtown Lancaster area have also been included in the District boundary, as shown on the map in Section III of the Plan.

14.04.120. - Assessments.

1. The assessment rate (cost to the parcel owner) is based on benefit zone, parcel size, building size, and parcel type. Single family residential parcels and public easements on private parcels will not be assessed. The initial annual rate to each parcel is shown in the table below.

Assessment rates may be subject to an increase of no more than three percent (3%) per year.

2. The assessments shall be used for the purposes set forth herein and any funds remaining at the end of any year may be used in subsequent years in which the DLPBID assessment is levied as long as they are used consistent with the requirements set forth herein. 3 2
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14.04.130. - Collections.

As provided by State Law, the DLPBID assessment will appear as a separate line item on annual property tax bills prepared by the County of Los Angeles. Alternatively, the DLPBID assessment may be collected by the City of Lancaster if needed. Property tax bills are generally distributed in the fall, and payment is expected by lump sum or installment. The County of Los Angeles or the City of Lancaster shall distribute funds collected to the Owners’ Association. Existing laws for enforcement and appeal of property taxes, including penalties and interest, apply to the DLPBID assessments.

14.04.140. - Owners’ Association.

The City Council through adoption of this Ordinance and the Plan, has the right pursuant to Streets and Highways Code §36651, to identify the body that shall implement the proposed program, which shall be the Owners’ Association of the DLPBID as defined in Streets and Highways Code §36612.

The DLPBID shall continue to be governed by the BLVD Association, with oversight from the Lancaster City Council. The BLVD Association shall continue to serve as the Owners’ Association described in the Streets and Highways Code §36651. The Board of Directors of the Association and its staff are charged with the day-to-day operations of the DLPBID.

A majority of the Board of Directors of the BLVD Association must be parcel owners paying the assessment. In addition, the Board of Directors must represent a variety of interests within the DLPBID and respond to the needs of all properties within the District.

The Board of Directors shall act in the best interests of all of the properties within the DLPBID. The diverse representation described above ensures that the interests of all of the properties in the DLPBID shall be fairly represented. The City Council or Board of Directors reserves the right to amend or modify the composition of the Board by a separate resolution without amending the Plan.

14.04.150. - Annual Report.

The BLVD Association pursuant to Streets and Highways Code §36650, shall cause to be prepared a report for each fiscal year, except the first year, for which assessments are to be levied and collected to pay the costs of the improvements, maintenance, and activities described in the report. The first report shall be due after the first year of operation of the renewed DLPBID.

14.04.160. - Amendments to Enabling Legislation.

The DLPBID renewed pursuant to this Ordinance shall be subject to any amendments to the Property and Business Improvement District Law of 1994 (California Streets and Highways Code §36600 et. seq.).

Section 2. Severability. If any section, subsection, sentence, clause or phrase or word of this Ordinance is for any reason held to be unconstitutional, unlawful or otherwise invalid by a court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council of the City of Lancaster declares that it would have passed and adopted this Ordinance and each and all provisions irrespective of the fact that any one or more of said 3 2
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provisions may be declared invalid or unconstitutional without regard to any such decision or preemptive legislation.

Section 3. Effective Date. This Ordinance of the City of Lancaster shall be effective thirty (30) days after its passage, this Ordinance or a summary thereof, as provided in Government Code Section 36933, shall be published at least once in a newspaper of general circulation published and circulated in the City of Lancaster, along with the names of the City Council voting for and against its passage.

I, Andrea Alexander, City Clerk of the City of Lancaster, do hereby certify that the foregoing ordinance was regularly introduced and placed upon its first reading on the ________ day of ____________, ______, and placed upon its second reading and adoption at a regular meeting of the City Council on the _______ day of __________, ______, by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

ATTEST: APPROVED:
__________________________________________________________ ANDREA ALEXANDER R. REX PARRIS
City Clerk Mayor
City of Lancaster City of Lancaster

STATE OF CALIFORNIA }
COUNTY OF LOS ANGELES }ss
CITY OF LANCASTER }
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CERTIFICATION OF ORDINANCE

CITY COUNCIL
I, ________________________________, ___________________________________ City of Lancaster, California, do hereby certify that this is a true and correct copy of the original Ordinance No. , for which the original is on file in my office.

WITNESS MY HAND AND THE SEAL OF THE CITY OF LANCASTER, on this _________ day of ________________, ________.
(seal)
___________________________________

2024-2033

DOWNTOWN LANCASTER PROPERTY AND

BUSINESS IMPROVEMENT DISTRICT
MANAGEMENT DISTRICT PLAN & ENGINEER’S REPORT
September 16, 2022 Prepared pursuant to the Property and Business Improvement District Law of 1994, Streets and Highways Code section 36600 et seq.

Downtown Lancaster PBID Management District Plan
September 16, 2022

CONTENTS
I. Overview .................................................................................................................................................. 1 II. Background .............................................................................................................................................. 3 III. Boundaries................................................................................................................................................ 4 IV. Service Plan & Budget ........................................................................................................................... 5 A. Improvements and Activities 5
B. Annual Assessment Budget 6
C. Service Budget 6
D. Zone Budgets 7
E. Annual Maximum Budget 7

V. Continuation of City Services ............................................................................................................... 8 A. City Base Levels of Service Policy 8
B. Existing Services 8

VI. Assessment Rate ..................................................................................................................................... 9 A. Assessment Formula 9
B. Changes in Zoning, Ownership, Building Square Footage, or Parcel Size 9 C. Assessment Notice 9
D. Time and Manner for Collecting Assessments 9

VII. Governance ............................................................................................................................................ 10 A. Owners’ Association 10
B. Brown Act & Public Records Act Compliance 10
C. Annual Report 10

VIII. Engineer’s Report ................................................................................................................................. 11 Appendix 1 – Maximum Annual Assessment Rates .......................................................................................... 23 Appendix 2 – PBID law .......................................................................................................................................... 24 Appendix 3 – Parcel Assessment Calculations.................................................................................................... 36 Appendix 4 – Total Estimated Maximum Cost of Improvements and Activities ....................................... 43 Appendix 5 – Services by Zone ............................................................................................................................. 44 Appendix 6 – Map .................................................................................................................................................... 45

Prepared by Civitas
www.civitasadvisors.com
(800)999-7781

September 16, 2022
Downtown Lancaster PBID Management District Plan Page 1 I. OVERVIEW

Developed by a growing coalition of property owners, t he renewed Downtown Lancaster Property and Business Improvement District (District) is a benefit assessment district whose main goal is to provide improvements, maintenance, and activities which constitute and convey a special benefit to assessed parcels. This approach has been used successfully in other cities throughout the country to provide special benefits to property owners, namely increased sales, attraction of new tenants, increased occupancies, and specifically increased property values. As required by state law, p roperty owners have created this Management District Plan (Plan) to renew the District.

Location: The District generally includes parcels fronting W. Lancaster Boulevard, bounded by 10th Street West in the west, Jackman Street in the north, Sierra Highway in the east, and Milling Street in the south. The District also includes parcels bounded by W.

Lancaster Boulevard in the north, W. Milling Street in the south, Sierra Highway in the east, and Fern Avenue in the west. Certain adjacent parcels in the Downtown Lancaster area have also been included in the District boundary, as shown on the map in Section III.

Purpose: The purpose of the District is to provide activities , maintenance, and improvements which constitute and convey a special benefit to assessed parcels. The District will provide clean and safe , marketing and promotions , and related advocacy and administration programs directly and only to assessed parcels within its boundaries.

Budget: The District annual assessment budget for the initial year of its ten (10) year operation is anticipated to be $ 334,978.46. The annual assessment budget may be subject to an increase in assessment rates of no more than three percent (3%) per year. The assessment funds will be supplemented by non-assessment funds, so that the total budget for the initial year is estimated at $342,775.22. The amount of non -assessment funds is the minimum amount necessary to pay for the general benefit provided by District programs.

Further detail on the separation of special and general benefit is provided in Section VIII.

Cost: The assessment rate (cost to the parcel owner) is based on benefit zone, parcel size, building size, and parcel type. Single family residential parcels and public easements on private parcels will not be assessed. The initial annual rate to each parcel is shown in the table below. Assessment rates may be subject to an increase of no more than three percent (3%) per year.

Renewal: District renewal requires submittal of petitions from property owners representing more than fifty percent (50%) of the total assessment. The “Right to Vote on Taxes Act” (also known as Proposition 218) requires a ballot vote in which more than fifty percent (50%) of the ballots received, weighted by assessment, be in support of the District.

September 16, 2022
Downtown Lancaster PBID Management District Plan Page 2

Duration: The District will have a ten (10) year life, beginning January 1, 2024, through December 31, 2033. Near the end of the term, the petition, ballot, and City Council hearing process must be repeated for the District to again be renewed.

Management: The BLVD Association (Association) will continue to serve as the Owners’ Association for the District. The Owners’ Association is charged with managing funds in accordance with this Plan and must submit an annual report to the City.

September 16, 2022
Downtown Lancaster PBID Management District Plan Page 3 II. BACKGROUND

The International Downtown Association estimates that more than 1,500 Property and Business Improvement Districts (PBIDs) currently operate throughout the United States and Canada. PBIDs are a time-tested tool for property owners who wish to come together and obtain collective services which benefit their properties.

PBIDs provide supplemental services in addition to those provided by local government. They may also finance physical and capital improvements. These improvements and activities are concentrated within a distinct geographic area and are funded by a special parcel assessment. Services and improvements are only provided to those who pay the assessment.

Although funds are collected by the local government, they are then directed to a private nonprofit. The nonprofit implements services and provides day-to-day oversight. The nonprofit is managed by a Board of Directors representing those who pay the assessment, to help ensure the services meet the needs of property owners and are responsive to changing conditions within the PBID.

PBIDs all over the globe have been proven to work by providing services that improve the overall viability of commercial districts, resulting in higher property values, lease rates, occupancy rates, and sales volumes.

The District will be renewed pursuant to a state law that took effect in January of 1995. The “Property and Business Improvement District Law of 1994,” which was signed into law by Governor Pete Wilson, ushered in a new generation of Property and Business Improvement Districts in California. Key provisions of the law include:

➢ Allows a wide variety of services which are tailored to meet specific needs of assessed properties in each individual PBID;
➢ Requires property owner input and support throughout the renewal process; ➢ Requires written support on both a petition and ballot from property owners paying 50% of proposed assessments;
➢ Allows for a designated, private nonprofit corporation to manage funds and implement programs, with oversight from property owners and the City; ➢ Requires limits for assessment rates to ensure that they do not exceed the amount owners are willing to pay; and
➢ Requires the PBID be renewed after a certain time period, making it accountable to property owners.

The “Property and Business Improvement Business District Law of 1994” is provided in Appendix 2 of this document.

September 16, 2022
Downtown Lancaster PBID Management District Plan Page 4 III. BOUNDARIES

The service area includes approximately 234 assessed properties with 97 property owners and 3 non- assessed parcels. The District boundary is illustrated by the map below. A larger map is available on request by calling (916)437-4300 or (800)999-7781. A larger map is provided in Appendix 6.

September 16, 2022
Downtown Lancaster PBID Management District Plan Page 5 IV. SERVICE PLAN & BUDGET

A. Improvements and Activities
The District will provide supplemental improvements, maintenance and activities that are above and beyond those provided by the City and other government agencies. None of the services to be provided by the District are provided by the City or other government agencies. The improvements, maintenance, and activities will be provided directly and only to assessed parcels; they will not be provided to parcels that are not assessed. Each and every service is unique to the District, thus the benefits provided are particular and distinct to each assessed parcel.

1. Clean & Safe
The clean and safe program will work to make the District a cleaner, safer area. The goal of this program will be to make the district a more desirable place to live and shop, which will specially benefit assessed parcels by increasing their tenancy rates and commerce.

The clean portion of the program may include:
- Sidewalk cleaning;
- Litter removal;
- Graffiti removal;
- Installation of trash receptacles;
- Removal of stickers and other items affixed to public works in the area; - Landscape maintenance and clean-up;
- Roaming clean-up patrols; and
- Similar services designed to maintain a clean, attractive environment.

The safe portion of the program may include:
- Security patrols;
- District ambassadors who act as guides to district patrons; - Coordination with pub lic safety personnel including the Los Angeles County Sheriff’s Department and City of Lancaster Public Safety staff;
- Educating property owners and tenants on ways to increase safety; and - Similar services designed to increase safety at assessed parcels.

2. Marketing & Promotions
A marketing and promotions program will be undertaken to increase awareness of The BLVD as a shopping, dining, entertainment, cultural, and living destination. Services may include:
- Marketing materials;
- Print, internet, radio, and television advertising;
- Website development and maintenance;
- Hosted Special events and/or event sponsorships;
- Partnerships with local businesses and other promotional activities; - Promotional maps; and
- Banners and Signage

3. Advocacy & Administration
The administration portion of the budget will be utilized for administrative costs associated with provide the activities and improvements. Those costs may include rent, telephone charges, legal fees, accounting fees, postage, administrative staff, insurance, and other general office expenses. Advocacy activities will

September 16, 2022
Downtown Lancaster PBID Management District Plan Page 6 include working with potential business tenants, developers, banks, and government agencies to attract new businesses to the BLVD.

4. Contingency/Reserve
The budget includes a prudent fiscal reserve. Changes in data, lower than anticipated collections, higher than expected program costs, and other issues may change the revenue and expenses. In order to buffer the organization for unexpected changes in revenue, and/or allow the District to fund other overhead or renewal costs, the reserve is included as a budget item. Should contingency funds remain at the expiration of the district, and property owners wish to renew the district, the remaining funds may be used for the costs of renewal.

B. Annual Assessment Budget
A projected ten (10) year assessment budget for the District is provided below. The overall assessment budget shall remain consistent with this Plan. In the event of a legal challenge, assessment funds may be used to defend the District. The annual assessment budget is based on the following assumptions and guidelines:

1. The cost of providing improvements and activities may vary depending upon the market cost for those improvements and activities. Expenditures may require adjustment up or down to continue the intended level of improvements and activities. The Association’s Board shall annually have the ability to re-allocate up to fifteen percent (15%) of the budget allocation by line item within the budgeted categories. Any change will be approved by the Association’s Board and submitted with the Annual Report.

2. Funds not spent in any given year may be rolled over to the next year.

3. The assessment rate may be subject to annual increases that will not exceed three percent (3%) per year. Increases will be determined by the Association’s Board and will vary each year. The projections below illustrate the maximum annual three percent (3%) increase for all budget items.

4. Each budget category includes all costs related to providing that service. For example, the clean and safe budget includes the cost of staff time dedicated to overseeing and implementing the clean and safe program. Staff time dedicated purely to administrative tasks is allocated to the advocacy and administration portion of the budget. The costs of an individual staff member may be allocated to multiple budget categories. The staffing levels necessary to provide the District services will be determined by the Association’s Board on an as-needed basis.

C. Service Budget
The total improvement, maintenance, and activity budget for the first year of renewal that is funded by property assessments is $334,978.46. In addition to the assessment revenue, the programs will be supplemented by non-assessment funds. The total of non-assessment funds, and the determination of special and general benefit, is included in the Engineer’s Report and Appendix 4. An illustration of the estimated total budget allocations for each budget category for the ten (10) year life of the District is shown on the following page. The allocation of the assessment funds is governed by Section E below.

Non-assessment funds may be shifted between budget categories as needed by the Association’s Board.

September 16, 2022
Downtown Lancaster PBID Management District Plan Page 7

D. Zone Budgets
Funds may only be spent on improvements, maintenance, and activities provided in the zone from which the funds were derived. The budget for the first year of operation, broken down by zone, is below. The improvements and activities to be provided in each zone are shown in Appendix 5.

Budget Category Zone 1 Zone 2
Clean & Safe $164,343.99 $137,136.63
Marketing & Promotions $3,652.09 $3,047.48
Administration & Advocacy $7,304.18 $6,094.96
Contingency / Reserve $7,304.18 $6,094.96
Total $182,604.44 $152,374.03

E. Annual Maximum Budget
The budget below assumes the maximum annual increase of three percent (3%) is enacted and that there are no changes to the categorical budget allocations.

Year Clean & Safe Marketing &
Promotions
Admin. &
Advocacy
Contingency
/ Reserve Total
% 90% 2% 4% 4% 100%
2024 $301,480.61 $6,699.57 $13,399.14 $13,399.14 $334,978.46 2025 $310,525.02 $6,900.56 $13,801.11 $13,801.11 $345,027.80 2026 $319,840.77 $7,107.57 $14,215.15 $14,215.15 $355,378.64 2027 $329,436.00 $7,320.80 $14,641.60 $14,641.60 $366,040.00 2028 $339,319.08 $7,540.42 $15,080.85 $15,080.85 $377,021.20 2029 $349,498.65 $7,766.64 $15,533.27 $15,533.27 $388,331.83 2030 $359,983.61 $7,999.64 $15,999.27 $15,999.27 $399,981.79 2031 $370,783.12 $8,239.62 $16,479.25 $16,479.25 $411,981.24 2032 $381,906.61 $8,486.81 $16,973.63 $16,973.63 $424,340.68 2033 $393,363.81 $8,741.42 $17,482.84 $17,482.84 $437,070.91 Total $3,456,137.28 $76,803.05 $153,606.11 $153,606.11 $3,840,152.55

Clean & Safe,
$301,480.61 , 90%
Marketing & Promotions,
$6,699.57 , 2%
Administration &
Advocacy, $13,399.14 , 4%
Contingency / Reserve,
$13,399.14 , 4%
Initial Year Assessment Budget - $334,978.46

September 16, 2022
Downtown Lancaster PBID Management District Plan Page 8 V. CONTINUATION OF CITY SERVICES

A. City Base Levels of Service Policy
Throughout the process of renewing the District, stakeholders and property owners have voiced concerns that the City of Lancaster maintains existing services at verifiable “baseline” service levels.

The intention of the District is to provide supplemental services, above and beyond those provided by the City, which will constitute and provide a special benefit to assessed parcels. Maintaining a standard level of City services inside and outside the District helps to ensu re the District’s services provided constitute a special benefit.

A formal base level of service policy will ensure that existing City services are enhanced, not replaced, by the continued District services. The baseline level of services is those services which are currently provided by the City to all commercial districts throughout the City, including within the District boundaries. The City may not reduce those services because the District is renewed, they may only be reduced as part of a broader adjustment to City services. For instance, if the City currently provides street sweeping twice a year throughout the City limits, it can reduce the frequency to once a year throughout the City, but cannot reduce the frequency to once a year only with the District.

B. Existing Services
The City currently provides services within the District boundaries. During the District’s ten (10) year term, these services may only be reduced as part of a broader service reduction affecting parcels inside and outside of the District.

September 16, 2022
Downtown Lancaster PBID Management District Plan Page 9 VI. ASSESSMENT RATE

A. Assessment Formula
Individual assessed parcels shall be assessed an assessment rate according to each assessed parcel’s proportionate special benefit derived from the services provided to each assessed parcel, as shown in the table below.

B. Changes in Zoning, Ownership, Building Square Footage, or Parcel Size If the zoning, ownership, building square footage, or size of a parcel within the District boundary changes during the term of the District the assessment amount may be modified according to the assessment methodology detailed in this Plan that is applicable to the parcel. These changes may be a result of land adjustments (including but not limited to lot splits, consolidations, right away setbacks, etc.), new construction, new ownership, or changes in zoning.

C. Assessment Notice
During the hearing process, an Assessment Ballot will be sent to owners of each parcel in the District.

The Assessment Ballot provides an estimated assessment. The final individual assessment for any particular parcel may change, up or down, if the parcel square footage or type differ from those used to calculate the amount shown on the notice, which can be found in Appendix 3.

D. Time and Manner for Collecting Assessments
As provided by State Law, the District assessment will appear as a separate line item on annual property tax bills prepared by the County of Los Angeles. Alternatively, the District assessment may be collected by the City of Lancaster if needed. Property tax bills are generally distributed in the fall, and payment is expected by lump sum or installment. The County of Los Angeles or the City of Lancaster shall distribute funds collected to the Owners’ Association. Existing laws for enforcement and appeal of property taxes, including penalties and interest, apply to the District assessments.

E. Bonds
Bonds shall not be issued.

September 16, 2022
Downtown Lancaster PBID Management District Plan Page 10 VII. GOVERNANCE

A. Owners’ Association
The District shall continue to be governed by the BLVD Association, with oversight from the Lancaster City Council. The BLVD Association shall serve as the Owners’ Association described in the Streets and Highways Code §36651. The Board of Directors of the Association and its staff are charged with the day-to-day operations of the District.

A majority of the Board of Directors of the BLVD Association must be parcel owners paying the assessment. In addition, the Board of Directors must represent a variety of interests within the District and respond to the needs of all properties within the District.

The Board of Directors shall act in the best interests of all of the properties within the District. The diverse representation described above ensures that the interests of all of the properties in the District shall be fairly represented. The City Council or Board of Directors reserves the right to amend or modify the composition of the Board by a separate resolution without amending this Management District Plan.

B. Brown Act & Public Records Act Compliance
An Owners’ Association is a private entity and may not be considered a public entity for any purpose, nor may its board members or staff be considered to be public officials for any purpose. The Owners’ Association is, however, subject to government regulations relating to transparency, namely the Ralph M.

Brown Act and the California Public Records Act. These regulations are designed to promote public accountability. The Owners’ Association must act as a legislative body under the Ralph M. Brown Act (Government Code §54950 et seq.). Thus, meetings of the Association Board of Directors and certain committees must be held in compliance with the public notice and other requirements of the Brown Act.

The Owners’ Association is also subject to the record keeping and disclosure requirements of the California Public Records Act.

C. Annual Report
The Association shall present an annual report at the end of each year of operation to the City Council pursuant to Streets and Highways Code §36650 (see Appendix 2). The annual report is a prospective report for the upcoming year and must include:

1. Any proposed changes in the boundaries of the District or in any benefit zones or classification of property within the district;

2. The improvements, maintenance, and activities to be provided for that fiscal year;

3. The estimated cost of providing the improvements, maintenance, and activities to be provided for that fiscal year;

4. The method and basis of levying the assessment in sufficient detail to allow each real property owner to estimate the amount of the assessment to be levied against his or her property for that fiscal year;

5. The estimated amount of any surplus or deficit revenues to be carried over from a previous fiscal year; and

6. The estimated amount of any contributions to be made from sources other than assessme nts levied pursuant to this Plan.

September 16, 2022
Downtown Lancaster PBID Management District Plan Page 11 VIII. ENGINEER’S REPORT

The District’s parcel assessments will be imposed in accordance with the provisions of Article XIIID of the California Constitution. Article XIIID provides that “only special benefits are assessable,”1 and requires the City to “se parate the general benefits from the special benefits conferred on a parcel.” 2 Special benefits are a “particular and distinct benefit over and above general benefits conferred on real property located in the district or to the public-at-large.”3 Conversely, a general benefit is “conferred on real property located in the district or to the public-at-large.”4 Assessment law also mandates that “no assessment shall be imposed on any parcel which exceeds the reasonable cost of the proportional special benefit conferred on that parcel.”5
The Engineer determined the total cost of the improvements and activities, quantified the general benefit accruing to the public -at-large and non -assessed parcels adjacent to and within the District, and separated that amo unt from the special benefit accruing to the assessed parcels. Then, the Engineer determined the proportional special benefit derived by each parcel and allocated the special benefit value of the improvements and activities accordingly. The Engineer’s de terminations and detailed calculations are summarized in this report.

A. Separation of General and Special Benefits
Each of the improvements and activities, and the associated costs and assessments within the District, were reviewed, identified, and allocate d based on special and general benefits pursuant to Article XIIID of the California Constitution. The assessment has been apportioned based on the proportional special benefits conferred to the assessed parcels located within the District boundaries as determined below.

1. General Benefits
Unlike special benefits, which are conferred directly and only upon assessed parcels, a general benefit is conferred on the general public or non -assessed parcels. Existing City and other public services, which are provided to every person and parcel, everywhere within the City, are an example of a general benefit. Although the District’s boundaries have been narrowly drawn and programs have been carefully designed to provide special benefits, and activities and improvements will only be provided directly to assessed parcels, it is acknowledged that there will be general benefits as a result of the District’s activities and improvements.

The California Constitution mandates that “only special benefits are assessable, and an agency shall separate the general benefits from the special benefits.”6 “Generally, this separation and quantification of general and special benefits must be accomplished by apportioning the cost of a service or improvement between the two and assessing property owners only for the portion of the cost representing special benefits.”7 The first step that must be undertaken to separate general and special benefits provided by the District’s activities and improvements is to identify and quantify the general benefits. There are two bodies who can receive general benefits: the public-at-large within the District, and non-assessed parcels within and surrounding the District.

1 Cal. Const., art. XIII D, §4(a)
2 Cal. Const., art. XIII D, §4(a)
3 Id, §2(i)
4 Cal Const., art XIII D §2(i)
5 Cal. Const., art. XIII D, §4(a)
6 Cal. Const., art XIII D §4(a)
7 Golden Hill Neighborhood Association v. City of San Diego (2011) 199 Cal.App.4th 416

September 16, 2022
Downtown Lancaster PBID Management District Plan Page 12 a. General Benefit to the Public-at-Large
Although the activities and improvements are narrowly designed and carefully implemented to specially benefit the assessed parcels, and only provided directly to assessed parcels, they will generate a general benefit to the public -at-large within the District. State law indicates that “Activities undertaken for the purpo se of conferring special benefits upon property to be assessed inherently produce incidental or collateral effects that benefit property or persons not assessed.”8 However, “the mere fact that special benefits produce incidental or collateral effects that benefit property or persons not assessed does not convert any portion of those special benefits or their incidental or collateral effects into general benefits.”9 Further, “the value of any incidental or collateral effects that arise from the improvements, maintenance or activities of a property-based district and that benefit property or persons not assessed shall not be deducted from the entirety of the cost of any special benefit or affect the proportionate special benefit derived by each identified p arcel.”10 Thus, although there may be some incidental benefit to persons engaged in business on the assessed parcels, that incidental benefit is not considered general benefit because it is inherently produced by activities and improvements that provide special benefits to the assessed parcels. There is, however, a general benefit to persons not engaged in business on the assessed parcels.

Intercept surveys conducted in similar districts have found that approximately 98.6% of pedestrian traffic within the district boundaries is engaged in business on assessed parcels, while the remaining approximately 1.4% is simply passing through and not engaging in business on the assessed parcels11.

To ensure that the assessment dollars do not fund general benefits to the public-at-large, that portion of the cost of services will be paid for with funds not obtained through assessments. Out of an abundance of caution, the 1.4% figure was rounded to 2% for the purposes of this Engineers Report.

The 2% of traffic passing through does not have any connection to the assessed parcels, and therefore does not represent a special benefit to the assessed parcels. The 2% will, however, receive a derivative and indirect general benefit as a result of the activities and impro vements being provided in the DLPBID. Therefore, it is estimated that 2% of the benefit created by the DLPBID’s services is general benefit provided to the public -at-large. To ensure that the assessment dollars do not fund general benefits to the public-at-large, that portion of the cost of activities and improvements will be paid for with funds not obtained through assessments. Using the 2% figure, based on the initial year activity and improvement budget, the value of this general benefit to the public-at-large is $6,8550.50 ($342,775.22*0.02).
b. General Benefit to Non-Assessed Parcels
Although they are only provided directly to the assessed parcels, the District’s activities and improvements may also confer general benefits upon non -assessed parcels withi n and surrounding the District. One study examining property values in PBID areas found “no evidence of spill -over impacts (either good or bad) on commercial properties located just outside the BID’s boundaries;” 12 however, the California Court of Appeals has stated that “services specifically intended for assessed parcels concomitantly confer collateral general benefits to surrounding properties.”13 It is reasonable to conclude that activities and improvements within the District will have an incidental impact on non-assessed parcels surrounding or within the District boundaries. Although the legislature has

8 Streets and Highways Code section 36601(h)(2)
9 Ibid
10 Streets and Highways Code Section 36622(k)(2)
11 Surveys conducted in: North Park, San Diego (January 2015); Downtown Burbank (October 2017); Downtown Pomona (April 2018); and Sunrise MarketPlace, Citrus Heights (December 2019) 12 Furman Center for Real Estate & Urban Policy; The Impact of Business Improvement Districts on Property Values: Evidence from New York City (2007) p. 4
13 Beutz v. Riverside (2010) 184 Cal.App.4th 1516

September 16, 2022
Downtown Lancaster PBID Management District Plan Page 13 indicated that “the value of any incidental or collateral effects that arise from the improvements, maintenance, or activities of a property-based district and that benefit property or persons not assessed shall not be deducted from the entirety of the cost of any special benefit,” 14 the California Court of Appeals has noted that “the characterization of a b enefit may depend on whether the parcel receives a direct advantage from the improvement…or receives an indirect, derivative advantage resulting from the overall public benefits of the improvement.” 15 Those derivative and indirect impacts are considered general benefits and will be quantified and separated.

In this Engineer’s opinion, because activities and improvements are provided only within the District and on its perimeter, parcels separated from the District by either at least one intervening parcel or an impassable physical barrier such as a wall, railroad track, freeway, or ditch will not receive spill over benefits. Parcels separated from the District will not benefit because they are physically removed from the actual location of activities and improvements provided, and do not face serviced parcels.

Therefore, this analysis considers non -assessed parcels within the District’s boundaries and surrounding parcels that are immediately adjacent to and accessible from the District’s boundaries.

The total District activity and improvement budget for the first year is $ 342,775.22. After reducing the activity and improvement budget by the general benefit to the public -at-large ($6,8550.50), the remaining benefit to parcels is $ 335,919.72. This benefit has been distributed to both assessed and non-assessed parcels using the following methodology. The general benefit to the public-at-large has been proportionally allocated to the District’s activity and improvement categories as shown in the following table.

Category Benefit to Parcels Benefit to Public-at-
Large Total
Clean & Safe $302,331.45 $6,170.03 $308,501.48
Marketing & Promotions $6,714.69 $137.03 $6,851.72
Advocacy & Administration;
Contingency / Reserve $26,873.58 $548.44 $27,422.02
TOTAL $335,919.72 $6,855.50 $342,775.22

To determine the general benefit to parcels, the Engineer assigned each parcel group a benefit factor, determined the appropriate parcel characteristic to use in the calculation, multiplied the benefit factor by the benefit characteristic to determine the benefit units attributable to each parcel group, and apportioned the remaining service cost (service cost minus general benefit to the public) in accordance with the benefit units derived by each parcel group.
i. Benefit Factors
All parcels within and adjacent to the District have been assigned a benefit factor to mathematically represent the proportional special and general benefit and quantify the value of each. The determination of benefit factors for each type of activity follows.

Tangible Activities
The tangible activities (those that are physically provided via a person or people working throughout the district) to be provided by the District generate three types of special benefits:

14 Streets and Highways Code section 36622(k)(2)
15 Tiburon v. Bonander (2009) 180 Cal.App.4th 1057, 1077

September 16, 2022
Downtown Lancaster PBID Management District Plan Page 14 • Service – The primary special benefit provided by the District’s physical activities is the actual service.
• Presence – The District’s physical activities also provide the special benefit of an individual’s presence on the assessed parcel as the activities are provided, which can have a deterrent effect and creates a positive impression that the area is well -maintained and safe. The “Disneyland effect” is the benefit the parcels receive from the observation that parcels are being maintained.

There are studies which link the perception of cleanliness to a perception of increased security. • Proximity – The District’s physical activities also provide the special benefit of being in proximity to a cleaner, safer parcel. Neighboring parcels enjoy the spillover benefits of being adjacent to increased safety and cleanliness.

The majority of the benefit received by the parcels is the results of the district’s services; onsite presence and proximity are lesser benefits. It is this Engineer’s estimation that seventy -five percent (75%) of the special benefit from the District’s physical activities is the service, while the presence and proximity benefits each account for twelve and one -half percent (12.5% presence, 12.5% proximity) of the special benefit. Assessed parcels will receive all three benefits; non-assessed parcels within and adjacent to the District will not be directly serviced and therefore only receive the general benefit of proximity.

Intangible Activities
Some of the District’s activities, such as marketing, are distinct in that t hey are not provided to a targeted area within the District, rather they are provided via Internet, radio, and other forms of media and targeted at an audience outside the District in an effort to bring the audience into the District.

These activities provide two types of special benefits:
• Direct Exposure – The primary special benefit provided by the District’s intangible activities is exposure. The intangible activities increase awareness of the District as a commercial and business destination and lead to increased patronage.
• Incidental Exposure – The District’s intangible activities will also have a secondary special benefit of incidental exposure, such as word-of-mouth exposure, that results from the direct exposure and increases awareness of the District as a commercial and business destination.

The majority of the benefit from these activities is the direct exposure; the incidental exposure is a lesser benefit. It is this Engineer’s estimation that ninety percent (90%) of the special benefit from the intangible activities is direct exposure, while ten percent (10%) is incidental exposure. Assessed parcels will receive both as special benefits; non -assessed parcels within and adjacent to the District will not be directly marketed and therefore only receive the general benefit of incidental exposure.

Factors Determined
Based on the foregoing analysis, all assessed parcels within the District specially benefit from the District’s activities and improvements, and have been assigned a benefit factor of 1.0. Parcels that are not assessed have been assigned benefit factors b ased on the portion of the benefit they will receive, as described above. The non -assessed parcels will benefit from 12.5% of the tangible activities and 10% of the intangible activities; therefore they have been assigned benefit factors of 0.125 and 0.10 , respectively.

September 16, 2022
Downtown Lancaster PBID Management District Plan Page 15 ii. Non-Assessed Benefit Characteristics
There are two types of parcels that are not assessed; those within the District and those immediately adjacent to and accessible from the District. Because they generally benefit in a differing m anner, distinct parcel characteristics are used to quantify the general benefit to each type. • Inside – Non-assessed parcels inside of the District are surrounded by parcels that are assessed and receiving the full special benefits; they will, therefore, receive the general benefits of proximity and indirect exposure. These parcels are impacted on more than one side by the District’s activities, marketing has a direct impact all around them, and activities are provided all around them. Because these parc els are surrounded by specially benefitted parcels, it is appropriate that parcel square footage be used to measure the general benefit they receive.

• Adjacent – Adjacent parcels are those that are immediately adjacent to or directly across the street from specially benefitted parcels, and accessible from specially benefitted parcels. These parcels generally benefit differently than those inside the district, beca use these parcels are adjacent to, rather than surrounded by, specially benefitted parcels. Square footage is not an appropriate measure of benefit to these parcels. Because the parcels are not surrounded by serviced parcels, a long, shallow parcel with the same square footage as a deep, narrow parcel will receive a different level of general benefit. Likewise, two parcels with the same depth but a different width adjacent to serviced parcels will benefit differently. To account for this difference, it is appropriate that parcel linear frontage be used to measure the general benefit the adjacent parcels receive.

iii. Calculations
To quantify and separate the general benefit to non -assessed parcels, the following calculations were undertaken for each budget category.

1. The total service budget for each category was determined and the amount of general benefit to the public-at-large was subtracted from the category budget.

2. The benefit factor applicable to each activity or improvement was multiplied by the parcel square footage or linear frontage of assessed and non -assessed parcels, to determine the number of benefit units received by each parcel group.

3. The benefit units for all parcel groups were summed, and the percentage of benefit units attributable to each parcel group was calculated.

4. The total remaining activity and improvement budget, less the amount already determined to be ge neral benefit to the public -at-large, was allocated to general and special benefit categories for each parcel group using the calculated benefit percent and applicable benefit characteristic methodology.

5. The special and general benefit resulting from the administrative and contingency portions of the budget were determined based on the proportional allocation of benefits derived from activities and improvements.

Clean & Safe
The clean and safe budget, minus the amount of general benefit to the public-at-large, is $302,331.45.

The calculations below determine the amount of general benefit to non -assessed parcels within the district. The clean and safe budget category contains tangible activities; the Engineer used the 0.125 benefit factor to quantify the general benefit.

September 16, 2022
Downtown Lancaster PBID Management District Plan Page 16

Parcel
Type
Square
Footage
Benefit
Factor Benefit Units Benefit
Percent
Remaining
Budget

Assessed 3,341,201 X 1.000 =3,341,201.00 99.89% X $302,331.45 = $302,008.82 Non-
Assessed 28,555 X 0.125 =3,569.38 1.10% X $302,331.45 = $322.63

The clean and safe budget, minus the amount of general benefit to the public and non-assessed parcels within the district, is $ 302,008.82. The calculations below determine the amount of general benefit to parcels adjacent to the District.

Parcel
Type
Linear
Frontage
Benefit
Factor Benefit Units Benefit
Percent
Remaining
Budget

Inside 41,309 X 1.000 = 41,309.00 99.825
% X $302,008.82 = $301,480.61
Adjacent 579 X 0.125 = 72.38 .175% X $302,008.82 = $ 528.21

Therefore, the allocation of the clean and safe budget is as follows:

General Benefit – Public-At-Large $6,170.03
General Benefit – Inside Parcels $322.63
General Benefit – Adjacent Parcels $528.21
Special Benefit $301,480.61
Total $308,501.48

Marketing & Promotions
The marketing and promotions budget, minus the amount of general benefit to the public-at-large, is $6,714.69. The calculations below determine the amount of general benefit to non -assessed parcels within the district. The marketing and promotions budget category contains intangible activities; the Engineer used the 0.10 benefit factor to quantify the general benefit.

Parcel
Type
Square
Footage
Benefit
Factor Benefit Units Benefit
Percent
Remaining
Budget

Assessed 3,341,201 X 1.000 = 3,341,201.00 99.915
% X $6,714.69 = $6,708.96
Non-
Assessed 28,555 X 0.100 = 2,855.00 .085% X $6,714.69 = $5.73

The marketing and events budget, minus the amount of general benefit to the public and non-assessed parcels within the district, is $ 6,708.96. The calculations below determine the amount of general benefit to parcels adjacent to the District.

September 16, 2022
Downtown Lancaster PBID Management District Plan Page 17 Parcel
Type
Linear
Frontage
Benefit
Factor Benefit Units Benefit
Percent
Remaining
Budget

Inside 41,309 X 1.000 = 41,309.00 99.86% X $6,708.96 = $6,699.57 Adjacent 579 X 0.100 = 57.90 .14% X $6,708.96 = $9.39

Therefore, the allocation of the marketing and events budget is as follows:

General Benefit – Public-At-Large $137.03
General Benefit – Inside Parcels $9.39
General Benefit – Adjacent Parcels $5.73
Special Benefit $6,699.57
Total $6,851.72

Administration & Advocacy; Contingency / Reserve
The administration and advocacy and contingency / reserve budget lines items relate to the activities and improvements provided. These costs have been allocated proportionally based on the special and general benefit provided by each category.

Special Benefit to
Parcels
General Benefit to
Parcels
Clean & Safe $301,480.61 $850.84
Marketing & Promotions $6,699.57 $15.12
Activity Totals $308,180.18 $865.96
Percent 99.72% 0.28%
Advocacy & Administration; Contingency / Reserve $26,798.28 $75.30 Total Parcel Benefits $334,978.46 $941.26

iv. Total Benefits
Based on the foregoing calculations, the total benefits to assessed parcels, non -assessed parcels, and the general public are:

Special Parcel General Public Total
Clean & Safe $301,480.61 $850.84 $6,170.03 $308,501.48
Marketing & Promotions $6,699.57 $15.12 $137.03 $6,851.72 Advocacy & Administration;
Contingency / Reserve $26,798.28 $75.30 $548.44 $27,422.02 Total $334,978.46 $941.26 $6,855.50 $342,775.22
c. Non-Assessment Funding
The programs funded by the District receive additional non-assessment funding in the form of grants, corporate sponsorships, event income, city general fund contributions, and other miscellaneous funds.

These funding sources are anticipated to equal or exceed the amount of general benefit conferred annually by the District’s activities and improvements, $ 7,796.76. These non -assessment funds will

September 16, 2022
Downtown Lancaster PBID Management District Plan Page 18 be used to pay for the general benefit provided by the District’s activities and improvements, ensuring that parcel assessments will only be used to provid e special benefits and “any additional costs of providing general benefits [are] not included in the amounts assessed.”16

1. Special Benefit
The activities and improvements to be provided by the District constitute and convey special benefits directly to the assessed parcels. Assessment law requires that “the proportionate special benefit derived by each identified parcel shall be determined in relationship to the entirety of the capital cost of a public improvement, the maintenance and operation expenses of a public improvement, or the cost of the property related service being provided.” 17 Further, “no assessment shall be imposed on any parcel which exceeds the reasonable cost of the proportional special benefit conferred on that parcel.”18 Special benefit “includes incidental or collateral effects that arise from the improvements, maintenance, or activities of property -based districts even if those incidental or collateral effects benefit property or persons not assessed.”19
To determine the total spec ial benefit value to be conveyed to the assessed parcels, we deduct the general benefit value ($7,796.76) from the total value of the activities and improvements ($342,775.22).

The remaining $ 334,978.46 is considered the special benefit to assessed parcels (the “Total Assessment”). The Total Assessment represents the total value of the special benefit to be provided by the activities and improvements. The Total Assessment has been proportionally divided among the assessed parcels so that n o assessment exceeds the reasonable cost of the proportional special benefit conferred on a parcel. The assessment rate has been designed to ensure that “properties that receive the same proportionate special benefit pay the same assessment.”20

Service Provided Total Benefit
Value
General
Benefit
Value to
Public
Benefit Value
to Parcels
(Special &
General)
Special Benefit
to Assessed
Parcels
Clean & Safe $308,501.48 $6,170.03 $302,331.45 $301,480.61 Marketing & Promotions $6,851.72 $15.12 $6,714.69 $6,699.57 Advocacy & Administration $13,711.01 $37.65 $13,436.79 $13,399.14 Contingency/Reserve $13,711.01 $37.65 $13,436.79 $13,399.14 TOTAL $342,775.22 $941.26 $335,919.72 $334,978.46

2. Assessment Methodology

1. Base Formula
Each parcel will be assessed based on proportional special benefits received. The variables used for the annual assessment formula are parcel type, parcel size, building size, and benefit zone . These variables are both appropria te measures of the proportional special benefit because the need for services, level of services, and quantity of services are all relative to these variables; thus the special benefit provided to each parcel by the services can be proportionally measured using these variables.

16 Streets and Highways Code section 36632(a)
17 Cal. Const., art XIII D §4(a)
18 Ibid
19 Streets and Highways Code section 36615.5
20 Tiburon v. Bonander (2009) 180 Cal.App.4th 1057

September 16, 2022
Downtown Lancaster PBID Management District Plan Page 19 Determination of Assessment Rates
“Because not all parcels in the district are identical in size…some will receive more special benefit than others.” 21 Each of the variables used relates directly to the service level and special benefit provided to each parcel. Parcel square footage is the size of the parcel, measured in square feet.

Building size is the size of the building(s) on a parcel, measured in square feet. Size is an appropriate measure of proportional special benefit because it relates directly to the quantity of services provided to the parcel, the highest and best use of a parcel, and reflects the long-term value implications of the District. The larger a parcel or building, the more services and benefit the parcel will receive.

Because not all parcels in the District are identical in use, some will receive more special benefit than others. For example, an apartment complex parcel will benefit to a lesser degree than a commercial parcel, because it will not enjoy the benefits of increased commerce resulting from the services.

Further detail on the benefit to each parcel type is in the following pages. To determine the assessment rates, the assessed parcels were classified by the estimated benefit each type of parcel receives, the estimated special benefit value of the activities and improvements provided to each type was determined based on approximate cost of service provision, and an assessment rate that is proportional to the estimated proportional benefit received by each parcel type was determined.

To determine the assessment rates, the estimated special benefit value for each parcel type was divided by the total assessable parcel square footage, building square footage, parcel type, and benefit zone as shown in the tables below.

Parcel Type
Parcel types were categorized based on the typical amount of foot and vehicle traffic on the various commercial and apartment complex par cels. Parcels with heavy traffic, such as commercial parcels, will receive the highest level of services. Parcels with lower traffic, such as apartment complex parcels will receive the lowest level of services. The approximate cost of services by parcel type was determined. Then, the cost of services by type was divided by the parcel and building square footage of those parcels to determine the assessment rates.

Parcel Size and Building Size
The District’s services will benefit each assessed parcel as a whole. The service budget which, in this Engineer’s estimation, represents special benefits to the parcels, has been allocated based on parcel size and building size.

Parcel Type
Initial
Parcel Size
Budget

Parcel
Square
Footage

Initial Parcel
Assessment
Rate
($/sqft/yr)
Zone 1 Commercial $81,514.15 ÷ 958,990 = $0.085
Zone 1 Apartment Complex $995.35 ÷ 23,420 = $0.0425
Zone 2 Commercial $100,906.56 ÷ 2,242,368 = $0.045
Zone 2 Apartment Complex $2,2619.52 ÷ 116,423 = $0.0225

21 Dahms v. Downtown Pomona (2009) 174 Cal.App.4th 708

September 16, 2022
Downtown Lancaster PBID Management District Plan Page 20 Parcel Type
Initial
Building Size
Budget

Building
Square
Footage

Initial Building
Assessment Rate
($/sqft/yr)
Zone 1 Commercial $96,783.39 ÷ 586,566 = $0.165
Zone 1 Apartment Complex $3,311.55 ÷ 40,140 = $0.0825
Zone 2 Commercial $39,473.07 ÷ 415,506 = $0.095
Zone 2 Apartment Complex $9374.89 ÷ 197,336 = $0.0475
Summary of Assessment Rates
Therefore, for the initial year, the maximum annual assessment rates to parcels are as shown below and in Appendix 1. Maximum annual assessment rates may be subject to an increase of no more than three (3%) percent per year as shown in Appendix 1.

Sample assessment calculations are shown in Appendix 3.

2. Commercial Parcels
Commercial parcels will receive and benefit from all District services (Clean & Safe, Marketing & Promotions, and Advocacy & Administration) , services, which are aimed to attract and increase customers and visitors to assessed parcels. These parcels have a commercial component because their owners aim to benefit from tenant rents, increased customers, or increased use by visitors. The primary purpose of the District is to provide property owner services which generate special benefits to parcels with commercial uses, and will therefore be assessed the full rate.

3. Apartment Complex Parcels
Apartment complex parcels will receive, and benefit from, all of the District’s services. Clean and safe programs will make these parcels more attractive and secure, and help attract and retain quality tenants.

Marketing and promotions programs will raise awareness of Downtown, and thus the apartments, as a great place to live, also helping to attract and retain tenants. Because these par cels are not commercial in nature, they will not benefit to the same degree as parcels with commercial uses.

Because of this, they will be assessed fifty percent (50%) of the standard assessment rate for their zones, which is commensurate with the benefit they receive.

4. Non-Assessed Parcels
There are three (3) parcels within the District that will not be assessed. These parcels are neither commercial or apartment complex parcels and will not specially benefit from or directly receive the District’s activities and improvements. These parcels are accounted for in the analysis of general benefit provided to non-assessed parcels within the District. These parcels have the following uses:

• Parcels with Low-Density Residential Uses: The state legislature has determined that “properties zoned exclusively for residential use…are conclusively presumed not to benefit from the improvements and services funded through these assessments, and shall not be subject to any

September 16, 2022
Downtown Lancaster PBID Management District Plan Page 21 assessment.”22 The activities and improvements to be provided are designed to specially benefit commercial and apartment complex parcels via increased commerce, occupancy, and lease rates.

None of these benefits apply to low-density residential parcels, which will not be serviced or benefit from the District’s activities. Residential parcels are those parcels with four family units or less, residential common areas, residential vacant lots, residential planned unit developments, and residential condominiums. There is one (1) residential parcels within the District that will not be assessed.
• Private Parcels with Public Easements: Public easements on private parcels will not be assessed, because the portion of the parcel covered by the easement is not used by the payor of the assessment, who will not receive special benefits from the services if they were provided on the easement portion of that parcel. There is one (1) private parcel with public easements in the District. Consistent with the benefit derived from District activities and improvements, the public easement portion of the parcel will not be assessed and the remaining portion of the parcel will be assessed at the applicable rate. The assessment for each parcel was determined based upon the portion of the parcel attributable to each parcel category. The public easement portion of private parcels was identified through County parcel data. There is one (1) private parcel with public easements within the District that will not be assessed for the public easement portion of the parcel.
• Federal Government Parcels: The primary purpose of the District is to benefit parcels with commercial uses. Because of their non-commercial nature, parcels owned by the United States Government do not derive benefit from the improvements and activities to be provided. These parcels will not receive a special benefit from the proposed services, and therefore will not directly receive services or be assessed. There is one (1) Federal government parcel within the District that will not be assessed.

5. Changes in Data
It is the intent of this Plan and Engineer’s Report that each parcel included in the District can be clearly identified. Every effort has been made to ensure that all parcels included in the District are consistent in the boundary map and the assessment calculation table. However, if inconsistencies arise, the order of precedence shall be: 1) the assessment calculation table and 2) the boundary map.

If the parcel size or type of a parcel changes during the term of this District, the assessment calculation may be modified accordingly.

Categorization Appeals
The category determined for each parcel is shown in Appendix 4. The use for each parcel is established at formation and may be updated upon each renewal. If a parcel owner believes their parcel has been mis-classified or has changed, they may appeal in writing to the City of Lancaster for re-consideration. Appeals must be received by the City no later than June 1 of each year. Appeals must include the parcel number, current classification, requested classification, and the evidence upon which the appeal is based (for instance if a parcel is occupied by a retail store, but classified as commercial, a current photo of the r etail store showing the building number). Appeals will not provide retroactive reductions. Appeals should be made to:

The BLVD Association
44933 Fern Avenue
Lancaster, CA 93534

22 Streets and Highways Code § 36632(c)

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Downtown Lancaster PBID Management District Plan Page 22

3. Engineer’s Certification
I hereby certify, to the best of my knowledge and experience, that each of the identified assessed parcels located within the Downtown Lancaster Property and Business Improvement District will receive a special benefit over and above the general benefits conferred and that the amount of the assessment is no greater than the proportional special benefits conferred on each parcel, as described in this Engineer’s Report.

Review of this Downtown Lancaster Property and Business Improvement District Management District Plan and preparation of the Engineer’s Report was completed by:

__________________________
Ross Peabody
State of California

__________________________
Date

This Engineer’s Report is intended to be distributed as part of the Management District Plan in its entirety, including the Assessment Calculation Table (Appendix 3) and the Boundary Map. Reproduction and distribution of only Section VIII of this Management District Plan violates the intent of this stamp and signature.

September 16, 2022
Downtown Lancaster PBID Management District Plan Page 23 APPENDIX 1 – MAXIMUM ANNUAL ASSESSMENT RATES

The table below illustrate the maximum annual assessment rates with the assumption that the rates will be increased annually by three percent (3%). The maximum rates listed are a required disclosure and not the anticipated course of action.

Zone 1 Zone 2
Year Parcel Type Parcel Size
(sq. ft.)
Building
Size (sq. ft.)
Parcel Size
(sq. ft.)
Building
Size (sq. ft.)
2024 Commercial $0.0850 $0.1650 $0.0450 $0.0950
Apartment $0.0425 $0.0825 $0.0225 $0.0475
2025 Commercial $0.0876 $0.1700 $0.0464 $0.0979
Apartment $0.0438 $0.0850 $0.0232 $0.0489
2026 Commercial $0.0902 $0.1750 $0.0477 $0.1008
Apartment $0.0451 $0.0875 $0.0239 $0.0504
2027 Commercial $0.0929 $0.1803 $0.0492 $0.1038
Apartment $0.0464 $0.0901 $0.0246 $0.0519
2028 Commercial $0.0957 $0.1857 $0.0506 $0.1069
Apartment $0.0478 $0.0929 $0.0253 $0.0535
2029 Commercial $0.0985 $0.1913 $0.0522 $0.1101
Apartment $0.0493 $0.0956 $0.0261 $0.0551
2030 Commercial $0.1015 $0.1970 $0.0537 $0.1134
Apartment $0.0507 $0.0985 $0.0269 $0.0567
2031 Commercial $0.1045 $0.2029 $0.0553 $0.1168
Apartment $0.0523 $0.1015 $0.0277 $0.0584
2032 Commercial $0.1077 $0.2090 $0.0570 $0.1203
Apartment $0.0538 $0.1045 $0.0285 $0.0602
2033 Commercial $0.1109 $0.2153 $0.0587 $0.1240
Apartment $0.0555 $0.1076 $0.0294 $0.0620

September 16, 2022
Downtown Lancaster PBID Management District Plan Page 24 APPENDIX 2 – PBID LAW

*** THIS DOCUMENT IS CURRENT THROUGH THE 2022 SUPPLEMENT *** (ALL 2021 LEGISLATION)

STREETS AND HIGHWAYS CODE
DIVISION 18. PARKING
PART 7. PROPERTY AND BUSINESS IMPROVEMENT DISTRICT LAW OF 1994

CHAPTER 1. General Provisions

ARTICLE 1. Declarations

36600. Citation of part

This part shall be known and may be cited as the “Property and Business Improvement District Law of 1994.”

36601. Legislative findings and declarations; Legislative guidance

The Legislature finds and declares all of the following:
(a) Businesses located and operating within business districts in some of this state’s communities are economically disadvantaged, are underutilized, and are unable to attract customers due to inadequate facilities, services, and activities in the business districts. (b) It is in the public interest to promote the economic revitalization and physical maintenance of business districts in order to create jobs, attract new businesses, and prevent the erosion of the business districts. (c) It is of particular local benefit to allow business districts to fund business related improvements, maintenance, and activities through the levy of assessments upon the businesses or real property that receive benefits from those improvements.
(d) Assessments levied for the purpose of conferring special benefit upon the real property or a specific benefit upon the businesses in a business district are not taxes for the general benefit of a city, even if property, businesses, or persons not assessed receive incidental or collateral effects that benefit them. (e) Property and business improvement districts formed throughout this state have conferred special benefits upon properties and businesses within their districts and have made those properties and businesses more useful by providing the following benefits:
(1) Crime reduction. A study by the Rand Corporation has confirmed a 12-percent reduction in the incidence of robbery and an 8-percent reduction in the total incidence of violent crimes within the 30 districts studied.
(2) Job creation.
(3) Business attraction.
(4) Business retention.
(5) Economic growth.
(6) New investments.
(f) With the dissolution of redevelopment agencies throughout the state, property and business improvement districts have become even more important tools with which communities can combat blight, promote economic opportunities, and create a clean and safe environment. (g) Since the enactment of this act, the people of California have adopted Proposition 218, which added Article XIII D to the Constitution in order to place certain requirements and restrictions on the formation of, and activities, expenditures, and assessments by property-based districts. Article XIII D of the Constitution provides that property-based districts may only levy assessments for special benefits. (h) The act amending this section is intended to provide the Legislature’s guidance with regard to this act, its interaction with the provisions of Article XIII D of the Constitution, and the determination of special benefits in property-based districts.
(1) The lack of legislative guidance has resulted in uncertainty and inconsistent application of this act, which discourages the use of assessments to fund needed improvements, maintenance, and activities in property-based districts, contributing to blight and other underutilization of property.

September 16, 2022
Downtown Lancaster PBID Management District Plan Page 25 (2) Activities undertaken for the purpose of conferring special benefits upon property to be assessed inherently produce incidental or collateral effects that benefit property or persons not assessed. Therefore, for special benefits to exist as a separate and distinct category from general benefits, the incidental or collateral effects of those special benefits are inherently part of those special benefits. The mere fact that special benefits produce incidental or collateral effects that benefit property or persons not assessed does not convert any portion of those special benefits or their incidental or collateral effects into general benefits. (3) It is of the utmost importance that property-based districts created under this act have clarity regarding restrictions on assessments they may levy and the proper determination of special benefits. Legislative clarity with regard to this act will provide districts with clear instructions and courts with legislative intent regarding restrictions on property-based assessments, and the manner in which special benefits should be determined.

36602. Purpose of part

The purpose of this part is to supplement previously enacted provisions of law that authorize cities to levy assessments within property and business improvement districts, to ensure that those assessments conform to all constitutional requirements and are determined and assessed in accordance with the guidance set forth in this act.

This part does not affect or limit any other provisions of law authorizing or providing for the furnishing of improvements or activities or the raising of revenue for these purposes.

36603. Preemption of authority or charter city to adopt ordinances levying assessments

Nothing in this part is intended to preempt the authority of a charter city to adopt ordinances providing for a different method of levying assessments for similar or additional purposes from those set forth in this part. A property and business improvement district created pursuant to this part is expressly exempt from the provisions of the Special Assessment Investigation, Limitation and Majority Protest Act of 1931 (Division 4 (commencing with Section 2800)).

36603.5. Part prevails over conflicting provisions

Any provision of this part that conflicts with any other provision of law shall prevail over the other provision of law, as to districts created under this part.

36604. Severability

This part is intended to be construed liberally and, if any provision is held invalid, the remaining provisions shall remain in full force and effect. Assessments levied under this part are not special taxes.

ARTICLE 2. Definitions

36606. “Activities”

“Activities” means, but is not limited to, all of the following that benefit businesses or real property in the district:
(a) Promotion of public events.
(b) Furnishing of music in any public place.
(c) Promotion of tourism within the district.
(d) Marketing and economic development, including retail retention and recruitment. (e) Providing security, sanitation, graffiti removal, street and sidewalk cleaning, and other municipal services supplemental to those normally provided by the municipality. (f) Other services provided for the purpose of conferring special benefit upon assessed real property or specific benefits upon assessed businesses located in the district.

36606.5. “Assessment”

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Downtown Lancaster PBID Management District Plan Page 26 “Assessment” means a levy for the purpose of acquiring, constructing, installing, or maintaining improvements and providing activities that will provide certain benefits to properties or businesses located within a property and business improvement district.

36607. “Business”

“Business” means all types of businesses and includes financial institutions and professions.

36608. “City”

“City” means a city, county, city and county, or an agency or entity created pursuant to Article 1 (commencing with Section 6500) of Chapter 5 of Division 7 of Title 1 of the Government Code, the public member agencies of which includes only cities, counties, or a city and county, or the State of California.

36609. “City council”

“City council” means the city council of a city or the board of supervisors of a county, or the agency, commission, or board created pursuant to a joint powers agreement and which is a city within the meaning of this part.

36609.4. “Clerk”

“Clerk” means the clerk of the legislative body.

36609.5. “General benefit”

“General benefit” means, for purposes of a property-based district, any benefit that is not a “special benefit” as defined in Section 36615.5.

36610. “Improvement”

“Improvement” means 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:
(a) Parking facilities.
(b) Benches, booths, kiosks, display cases, pedestrian shelters and signs. (c) Trash receptacles and public restrooms.
(d) Lighting and heating facilities.
(e) Decorations.
(f) Parks.
(g) Fountains.
(h) Planting areas.
(i) Closing, opening, widening, or narrowing of existing streets. (j) Facilities or equipment, or both, to enhance security of persons and property within the district. (k) Ramps, sidewalks, plazas, and pedestrian malls.
(l) Rehabilitation or removal of existing structures.

36611. “Management district plan”; “Plan”

“Management district plan” or “plan” means a proposal as defined in Section 36622.

36612. “Owners’ association”

“Owners’ association” means a private nonprofit entity that is under contract with a city to administer or implement improvements, maintenance, and activities specified in the management district plan. An owners’ association may be an existing nonprofit entity or a newly formed nonprofit entity. An owners’ association is a private entity and may not be considered a public entity for any purpose, nor may its board members or staff be considered to be public officials for any purpose. Notwithstanding this section, an owners’ association shall comply with the Ralph

September 16, 2022
Downtown Lancaster PBID Management District Plan Page 27 M. Brown Act (Chapter 9 (commencing with Section 54950) of Part 1 of Division 2 of Title 5 of the Government Code), at all times when matters within the subject matter of the district are heard, discussed, or deliberated, and with the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code), for all records relating to activities of the district.

36614. “Property”

“Property” means real property situated within a district.

36614.5. “Property and business improvement district”; “District”

“Property and business improvement district,” or “district,” means a property and business improvement district established pursuant to this part.

36614.6. “Property-based assessment”

“Property-based assessment” means any assessment made pursuant to this part upon real property.

36614.7. “Property-based district”

“Property-based district” means any district in which a city levies a property-based assessment.

36615. “Property owner”; “Business owner”; “Owner”

“Property owner” means any person shown as the owner of land on the last equalized assessment roll or otherwise known to be the owner of land by the city council. “Business owner” means any person recognized by the city as the owner of the business. “Owner” means either a business owner or a property owner. The city council has no obligation to obtain other information as to the ownership of land or businesses, and its determination of ownership shall be final and conclusive for the purposes of this part. Wherever this part requires the signature of the property owner, the signature of the authorized agent of the property owner shall be sufficient. Wherever this part requires the signature of the business owner, the signature of the authorized agent of the business owner shall be sufficient.

36615.5. “Special benefit”

“Special benefit” means, for purposes of a property-based district, a particular and distinct benefit over and above general benefits conferred on real property located in a district or to the public at large. Special benefit includes incidental or collateral effects that arise from the improvements, maintenance, or activities of property-based districts even if those incidental or collateral effects benefit property or persons not assessed. Special benefit excludes general enhancement of property value.

36616. “Tenant”

“Tenant” means an occupant pursuant to a lease of commercial space or a dwelling unit, other than an owner.

ARTICLE 3. Prior Law

36617. Alternate method of financing certain improvements and activities; Effect on other provisions

This part provides an alternative method of financing certain improvements and activities. The provisions of this part shall not affect or limit any other provisions of law authorizing or providing for the furnishing of improvements or activities or the raising of revenue for these purposes. Every improvement area established pursuant to the Parking and Business Improvement Area Law of 1989 (Part 6 (commencing with Section 36500) of this division) is valid and effective and is unaffected by this part.

CHAPTER 2. Establishment

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Downtown Lancaster PBID Management District Plan Page 28

36620. Establishment of property and business improvement district

A property and business improvement district may be established as provided in this chapter.

36620.5. Requirement of consent of city council

A county may not form a district within the territorial jurisdiction of a city without the consent of the city council of that city. A city may not form a district within the unincorporated territory of a county without the consent of the board of supervisors of that county. A city may not form a district within the territorial jurisdiction of another city without the consent of the city council of the other city.

36621. Initiation of proceedings; Petition of property or business owners in proposed district

(a) Upon the submission of a written petition, signed by the property or business owners in the proposed district who will pay more than 50 percent of the assessments proposed to be levied, the city council may initiate proceedings to form a district by the adoption of a resolution expressing its intention to form a district. The amount of assessment attributable to property or a business owned by the same property or business owner that is in excess of 40 percent of the amount of all assessments proposed to be levied, shall not be included in determining whether the petition is signed by property or business owners who will pay more than 50 percent of the total amount of assessments proposed to be levied. (b) The petition of property or business owners required under subdivision (a) shall include a summary of the management district plan. That summary shall include all of the following:
(1) A map showing the boundaries of the district.
(2) Information specifying where the complete management district plan can be obtained. (3) Information specifying that the complete management district plan shall be furnished upon request.
(c) The resolution of intention described in subdivision (a) shall contain all of the following:
(1) A brief description of the proposed improvements, maintenance, and activities, the amount of the proposed assessment, a statement as to whether the assessment will be levied on property or businesses within the district, a statement as to whether bonds will be issued, and a description of the exterior boundaries of the proposed district, which may be made by reference to any plan or map that is on file with the clerk. The descriptions and statements do not need to be detailed and shall be sufficient if they enable an owner to generally identify the nature and extent of the improvements, maintenance, and activities, and the location and extent of the proposed district. (2) A time and place for a public hearing on the establishment of the property and business improvement district and the levy of assessments, which shall be consistent with the requirements of Section 36623.

36622. Contents of management district plan

The management district plan shall include, but is not limited to, all of the following:
(a) If the assessment will be levied on property, a map of the district in sufficient detail to locate each parcel of property and, if businesses are to be assessed, each business within the district. If the assessment will be levied on businesses, a map that identifies the district boundaries in sufficient detail to allow a business owner to reasonably determine whether a business is located within the district boundaries. If the assessment will be levied on property and businesses, a map of the district in sufficient detail to locate each parcel of property and to allow a business owner to reasonably determine whether a business is located within the district boundaries.
(b) The name of the proposed district.
(c) A description of the boundaries of the district, including the boundaries of benefit zones, proposed for establishment or extension in a manner sufficient to identify the affected property and businesses included, which may be made by reference to any plan or map that is on file with the clerk. The boundaries of a proposed property assessment district shall not overlap with the boundaries of another existing property assessment district created pursuant to this part. This part does not prohibit the boundaries of a district created pursuant to this part to overlap with other assessment districts established pursuant to other

September 16, 2022
Downtown Lancaster PBID Management District Plan Page 29 provisions of law, including, but not limited to, the Parking and Business Improvement Area Law of 1989 (Part 6 (commencing with Section 36500)). This part does not prohibit the boundaries of a business assessment district created pursuant to this part to overlap with another business assessment district created pursuant to this part. This part does not prohibit the boundaries of a business assessment district created pursuant to this part to overlap with a property assessment district created pursuant to this part. (d) The improvements, maintenance, and activities proposed for each year of operation of the district and the maximum cost thereof. If the improvements, maintenance, and activities proposed for each year of operation are the same, a description of the first year’s proposed improvements, maintenance, and activities and a statement that the same improvements, maintenance, and activities are proposed for subsequent years shall satisfy the requirements of this subdivision.
(e) The total annual amount proposed to be expended for improvements, maintenance, or activities, and debt service in each year of operation of the district. If the assessment is levied on businesses, this amount may be estimated based upon the assessment rate. If the total annual amount proposed to be expended in each year of operation of the district is not significantly different, the amount proposed to be expended in the initial year and a statement that a similar amount applies to subsequent years shall satisfy the requirements of this subdivision.
(f) The proposed source or sources of financing, including the proposed method and basis of levying the assessment in sufficient detail to allow each property or business owner to calculate the amount of the assessment to be levied against his or her property or business. The plan also shall state whether bonds will be issued to finance improvements.
(g) The time and manner of collecting the assessments.
(h) The specific number of years in which assessments will be levied. In a new district, the maximum number of years shall be five. Upon renewal, a district shall have a term not to exceed 10 years.

Notwithstanding these limitations, a district created pursuant to this part to finance capital improvements with bonds may levy assessments until the maximum maturity of the bonds. The management district plan may set forth specific increases in assessments for each year of operation of the district. (i) The proposed time for implementation and completion of the management district plan. (j) Any proposed rules and regulations to be applicable to the district. (k)
(1) A list of the properties or businesses to be assessed, including the assessor’s parcel numbers for properties to be assessed, and a statement of the method or methods by which the expenses of a district will be imposed upon benefited real property or businesses, in proportion to the benefit received by the property or business, to defray the cost thereof. (2) In a property-based district, the proportionate special benefit derived by each identified parcel shall be determined exclusively in relationship to the entirety of the capital cost of a public improvement, the maintenance and operation expenses of a public improvement, or the cost of the activities. An assessment shall not be imposed on any parcel that exceeds the reasonable cost of the proportional special benefit conferred on that parcel. Only special benefits are assessable, and a property-based district shall separate the general benefits, if any, from the special benefits conferred on a parcel. Parcels within a property-based district that are owned or used by any city, public agency, the State of California, or the United States shall not be exempt from assessment unless the governmental entity can demonstrate by clear and convincing evidence that those publicly owned parcels in fact receive no special benefit. The value of any incidental, secondary, or collateral effects that arise from the improvements, maintenance, or activities of a property- based district and that benefit property or persons not assessed shall not be deducted from the entirety of the cost of any special benefit or affect the proportionate special benefit derived by each identified parcel.
(l) In a property-based district, the total amount of all special benefits to be conferred upon the properties located within the property-based district.
(m) In a property-based district, the total amount of general benefits, if any. (n) In a property-based district, a detailed engineer’s report prepared by a registered professional engineer certified by the State of California supporting all assessments contemplated by the management district plan.
(o) Any other item or matter required to be incorporated therein by the city council.

36623. Procedure to levy assessment

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Downtown Lancaster PBID Management District Plan Page 30

(a) If a city council proposes to levy a new or increased property assessment, the notice and protest and hearing procedure shall comply with Section 53753 of the Government Code. (b) If a city council proposes to levy a new or increased business assessment, the notice and protest and hearing procedure shall comply with Section 54954.6 of the Government Code, except that notice shall be mailed to the owners of the businesses proposed to be assessed. A protest may be made orally or in writing by any interested person. Every written protest shall be filed with the clerk at or before the time fixed for the public hearing. The city council may waive any irregularity in the form or content of any written protest. 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 city 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 or the authorized representative. A written protest that does not comply with this section shall not be counted in determining a majority protest.

If written protests are received from the owners or authorized representatives of businesses in the proposed district that will pay 50 percent or more of the assessments proposed to be levied and protests are not withdrawn so as to reduce the protests to less than 50 percent, no further proceedings to levy the proposed assessment against such businesses, as contained in the resolution of intention, shall be taken for a period of one year from the date of the finding of a majority protest by the city council. (c) If a city council proposes to conduct a single proceeding to levy both a new or increased property assessment and a new or increased business assessment, the notice and protest and hearing procedure for the property assessment shall comply with subdivision (a), and the notice and protest and hearing procedure for the business assessment shall comply with subdivision (b). If a majority protest is received from either the property or business owners, that respective portion of the assessment shall not be levied. The remaining portion of the assessment may be levied unless the improvement or other special benefit was proposed to be funded by assessing both property and business owners.

36624. Changes to proposed assessments

At the conclusion of the public hearing to establish the district, the city council may adopt, revise, change, reduce, or modify the proposed assessment or the type or types of improvements, maintenance, and activities to be funded with the revenues from the assessments. Proposed assessments may only be revised by reducing any or all of them. At the public hearing, the city council may only make changes in, to, or from the boundaries of the proposed property and business improvement district that will exclude territory that will not benefit from the proposed improvements, maintenance, and activities. Any modifications, revisions, reductions, or changes to the proposed assessment district shall be reflected in the notice and map recorded pursuant to Section 36627.

36625. Resolution of formation

(a) If the city council, following the public hearing, decides to establish a proposed property and business improvement district, the city council shall adopt a resolution of formation that shall include, but is not limited to, all of the following:
(1) A brief description of the proposed improvements, maintenance, and activities, the amount of the proposed assessment, a statement as to whether the assessment will be levied on property, businesses, or both within the district, a statement on whether bonds will be issued, and a description of the exterior boundaries of the proposed district, which may be made by reference to any plan or map that is on file with the clerk. The descriptions and statements need not be detailed and shall be sufficient if they enable an owner to generally identify the nature and extent of the improvements, maintenance, and activities and the location and extent of the proposed district. (2) The number, date of adoption, and title of the resolution of intention. (3) The time and place where the public hearing was held concerning the establishment of the district.
(4) A determination regarding any protests received. The city shall not establish the district or levy assessments if a majority protest was received.
(5) A statement that the properties, businesses, or properties and businesses in the district established by the resolution shall be subject to any amendments to this part.

September 16, 2022
Downtown Lancaster PBID Management District Plan Page 31 (6) A statement that the improvements, maintenance, and activities to be conferred on businesses and properties in the district will be funded by the levy of the assessments. The revenue from the levy of assessments within a district shall not be used to provide improvements, maintenance, or activities outside the district or for any purpose other than the purposes specified in the resolution of intention, as modified by the city council at the hearing concerning establishment of the district.

Notwithstanding the foregoing, improvements and activities that must be provided outside the district boundaries to create a special or specific benefit to the assessed parcels or businesses may be provided, but shall be limited to marketing or signage pointing to the district. (7) A finding that the property or businesses within the area of the property and business improvement district will be benefited by the improvements, maintenance, and activities funded by the proposed assessments, and, for a property-based district, that property within the district will receive a special benefit.
(8) In a property-based district, the total amount of all special benefits to be conferred on the properties within the property-based district.
(b) The adoption of the resolution of formation and, if required, recordation of the notice and map pursuant to Section 36627 shall constitute the levy of an assessment in each of the fiscal years referred to in the management district plan.

36627. Notice and assessment diagram

Following adoption of the resolution establishing district assessments on properties pursuant to Section 36625, the clerk shall record a notice and an assessment diagram pursuant to Section 3114. No other provision of Division 4.5 (commencing with Section 3100) applies to an assessment district created pursuant to this part.

36628. Establishment of separate benefit zones within district; Categories of businesses

The city council may establish one or more separate benefit zones within the district based upon the degree of benefit derived from the improvements or activities to be provided within the benefit zone and may impose a different assessment within each benefit zone. If the assessment is to be levied on businesses, the city council may also define categories of businesses based upon the degree of benefit that each will derive from the improvements or activities to be provided within the district and may impose a different assessment or rate of assessment on each category of business, or on each category of business within each zone.

36628.5. Assessments on businesses or property owners

The city council may levy assessments on businesses or on property owners, or a combination of the two, pursuant to this part. The city council shall structure the assessments in whatever manner it determines corresponds with the distribution of benefits from the proposed improvements, maintenance, and activities, provided that any property- based assessment conforms with the requirements set forth in paragraph (2) of subdivision (k) of Section 36622.

36629. Provisions and procedures applicable to benefit zones and business categories

All provisions of this part applicable to the establishment, modification, or disestablishment of a property and business improvement district apply to the establishment, modification, or disestablishment of benefit zones or categories of business. The city council shall, to establish, modify, or disestablish a benefit zone or category of business, follow the procedure to establish, modify, or disestablish a property and business improvement district.

36630. Expiration of district; Creation of new district

If a property and business improvement district expires due to the time limit set pursuant to subdivision (h) of Section 36622, a new management district plan may be created and the district may be renewed pursuant to this part.

CHAPTER 3. Assessments

36631. Time and manner of collection of assessments; Delinquent payments

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Downtown Lancaster PBID Management District Plan Page 32

The collection of the assessments levied pursuant to this part shall be made at the time and in the manner set forth by the city council in the resolution levying the assessment. Assessments levied on real property may be collected at the same time and in the same manner as for the ad valorem property tax, and may provide for the same lien priority and penalties for delinquent payment. All delinquent payments for assessments levied pursuant to this part may be charged interest and penalties.

36632. Assessments to be based on estimated benefit; Classification of real property and businesses; Exclusion of residential and agricultural property

(a) The assessments levied on real property pursuant to this part shall be levied on the basis of the estimated benefit to the real property within the property and business improvement district. The city council may classify properties for purposes of determining the benefit to property of the improvements and activities provided pursuant to this part.
(b) Assessments levied on businesses pursuant to this part shall be levied on the basis of the estimated benefit to the businesses within the property and business improvement district. The city council may classify businesses for purposes of determining the benefit to the businesses of the improvements and activities provided pursuant to this part.
(c) Properties zoned solely for residential use, or that are zoned for agricultural use, are conclusively presumed not to benefit from the improvements and service funded through these assessments, and shall not be subject to any assessment pursuant to this part.

36633. Time for contesting validity of assessment

The validity of an assessment levied under this part shall not be contested in an action or proceeding unless the action or proceeding is commenced within 30 days after the resolution levying the assessment is adopted pursuant to Section 36625. An appeal from a final judgment in an action or proceeding shall be perfected within 30 days after the entry of judgment.

36634. Service contracts authorized to establish levels of city services

The city council may execute baseline service contracts that would establish levels of city services that would continue after a property and business improvement district has been formed.

36635. Request to modify management district plan

The owners’ association may, at any time, request that the city council modify the management district plan. Any modification of the management district plan shall be made pursuant to this chapter.

36636. Modification of plan by resolution after public hearing; Adoption of resolution of intention

(a) Upon the written request of the owners’ association, the city council may modify the management district plan after conducting one public hearing on the proposed modifications. The city council may modify the improvements and activities to be funded with the revenue derived from the levy of the assessments by adopting a resolution determining to make the modifications after holding a public hearing on the proposed modifications. If the modification includes the levy of a new or increased assessment, the city council shall comply with Section 36623. Notice of all other public hearings pursuant to this section shall comply with both of the following:
(1) The resolution of intention shall be published in a newspaper of general circulation in the city once at least seven days before the public hearing.
(2) A complete copy of the resolution of intention shall be mailed by first class mail, at least 10 days before the public hearing, to each business owner or property owner affected by the proposed modification.
(b) The city council shall adopt a resolution of intention which states the proposed modification prior to the public hearing required by this section. The public hearing shall be held not more than 90 days after the adoption of the resolution of intention.

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Downtown Lancaster PBID Management District Plan Page 33

36637. Reflection of modification in notices recorded and maps

Any subsequent modification of the resolution shall be reflected in subsequent notices and maps recorded pursuant to Division 4.5 (commencing with Section 3100), in a manner consistent with the provisions of Section 36627.

CHAPTER 3.5. Financing

36640. Bonds authorized; Procedure; Restriction on reduction or termination of assessments

(a)The city council may, by resolution, determine and declare that bonds shall be issued to finance the estimated cost of some or all of the proposed improvements described in the resolution of formation adopted pursuant to Section 36625, if the resolution of formation adopted pursuant to that section provides for the issuance of bonds, under the Improvement Bond Act of 1915 (Division 10 (commencing with Section 8500)) or in conjunction with Marks-Roos Local Bond Pooling Act of 1985 (Article 4 (commencing with Section 6584) of Chapter 5 of Division 7 of Title 1 of the Government Code). Either act, as the case may be, shall govern the proceedings relating to the issuance of bonds, although proceedings under the Bond Act of 1915 may be modified by the city council as necessary to accommodate assessments levied upon business pursuant to this part. (b) The resolution adopted pursuant to subdivision (a) shall generally describe the proposed improvements specified in the resolution of formation adopted pursuant to Section 36625, set forth the estimated cost of those improvements, specify the number of annual installments and the fiscal years during which they are to be collected. The amount of debt service to retire the bonds shall not exceed the amount of revenue estimated to be raised from assessments over 30 years.
(c) Notwithstanding any other provision of this part, assessments levied to pay the principal and interest on any bond issued pursuant to this section shall not be reduced or terminated if doing so would interfere with the timely retirement of the debt.

CHAPTER 4. Governance

36650. Report by owners’ association; Approval or modification by city council

(a) The owners’ association shall cause to be prepared a report for each fiscal year, except the first year, for which assessments are to be levied and collected to pay the costs of the improvements, maintenance, and activities described in the report. The owners’ association’s first report shall be due after the first year of operation of the district. 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.
(b) The report shall be filed with the clerk and shall refer to the property and business improvement district by name, specify the fiscal year to which the report applies, and, with respect to that fiscal year, shall contain all of the following information:
(1) Any proposed changes in the boundaries of the property and business improvement district or in any benefit zones or classification of property or businesses within the district. (2) The improvements, maintenance, and activities to be provided for that fiscal year. (3) An estimate of the cost of providing the improvements, maintenance, and activities for that fiscal year.
(4) The method and basis of levying the assessment in sufficient detail to allow each real property or business owner, as appropriate, to estimate the amount of the assessment to be levied against his or her property or business for that fiscal year.
(5) The estimated amount of any surplus or deficit revenues to be carried over from a previous fiscal year.
(6) The estimated amount of any contributions to be made from sources other than assessments levied pursuant to this part.

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Downtown Lancaster PBID Management District Plan Page 34 (c) The city council may approve the report as filed by the owners’ association or may modify any particular contained in the report and approve it as modified. Any modification shall be made pursuant to Sections 36635 and 36636.

The city council shall not approve a change in the basis and method of levying assessments that would impair an authorized or executed contract to be paid from the revenues derived from the levy of assessments, including any commitment to pay principal and interest on any bonds issued on behalf of the district.

36651. Designation of owners’ association to provide improvements, maintenance, and activities

The management district plan may, but is not required to, state that an owners’ association will provide the improvements, maintenance, and activities described in the management district plan. If the management district plan designates an owners’ association, the city shall contract with the designated nonprofit corporation to provide services.

CHAPTER 5. Renewal

36660. Renewal of district; Transfer or refund of remaining revenues; District term limit

(a) Any district previously established whose term has expired, or will expire, may be renewed by following the procedures for establishment as provided in this chapter. (b) Upon renewal, any remaining revenues derived from the levy of assessments, or any revenues derived from the sale of assets acquired with the revenues, shall be transferred to the renewed district. If the renewed district includes additional parcels or businesses not included in the prior district, the remaining revenues shall be spent to benefit only the parcels or businesses in the prior district. If the renewed district does not include parcels or businesses included in the prior district, the remaining revenues attributable to these parcels shall be refunded to the owners of these parcels or businesses. (c) Upon renewal, a district shall have a term not to exceed 10 years, or, if the district is authorized to issue bonds, until the maximum maturity of those bonds. There is no requirement that the boundaries, assessments, improvements, or activities of a renewed district be the same as the original or prior district.

CHAPTER 6. Disestablishment

36670. Circumstances permitting disestablishment of district; Procedure

(a) Any district established or extended pursuant to the provisions of this part, where there is no indebtedness, outstanding and unpaid, incurred to accomplish any of the purposes of the district, may be disestablished by resolution by the city council in either of the following circumstances:
(1) If the city council finds there has been misappropriation of funds, malfeasance, or a violation of law in connection with the management of the district, it shall notice a hearing on disestablishment.
(2) During the operation of the district, there shall be a 30-day period each year in which assessees may request disestablishment of the district. The first such period shall begin one year after the date of establishment of the district and shall continue for 30 days. The next such 30-day period shall begin two years after the date of the establishment of the district. Each successive year of operation of the district shall have such a 30-day period. Upon the written petition of the owners or authorized representatives of real property or the owners or authorized representatives of businesses in the district who pay 50 percent or more of the assessments levied, the city council shall pass a resolution of intention to disestablish the district. The city council shall notice a hearing on disestablishment.
(b) The city council shall adopt a resolution of intention to disestablish the district prior to the public hearing required by this section. The resolution shall state the reason for the disestablishment, shall state the time and place of the public hearing, and shall contain a proposal to dispose of any assets acquired with the revenues of the assessments levied within the property and business improvement district. The notice of the hearing on disestablishment required by this section shall be given by mail to the property owner of each parcel or to the owner of each business subject to assessment in the district, as appropriate. The city

September 16, 2022
Downtown Lancaster PBID Management District Plan Page 35 shall conduct the public hearing not less than 30 days after mailing the notice to the property or business owners. The public hearing shall be held not more than 60 days after the adoption of the resolution of intention.

36671. Refund of remaining revenues upon disestablishment or expiration without renewal of district; Calculation of refund; Use of outstanding revenue collected after disestablishment of district

(a) Upon the disestablishment or expiration without renewal of a district, any remaining revenues, after all outstanding debts are paid, derived from the levy of assessments, or derived from the sale of assets acquired with the revenues, or from bond reserve or construction funds, shall be refunded to the owners of the property or businesses then located and operating within the district in which assessments were levied by applying the same method and basis that was used to calculate the assessments levied in the fiscal year in which the district is disestablished or expires. All outstanding assessment revenue collected after disestablishment shall be spent on improvements and activities specified in the management district plan. (b) If the disestablishment occurs before an assessment is levied for the fiscal year, the method and basis that was used to calculate the assessments levied in the immediate prior fiscal year shall be used to calculate the amount of any refund.

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Downtown Lancaster PBID Management District Plan Page 36

APPENDIX 3 – PARCEL ASSESSMENT CALCULATIONS

Map
Key AIN ASSESSED

LOT SIZE

ASSESSED

BLDG SIZE ZONE LOT
ASMT
BLDG

ASMT ASSESSMENT TYPE
1 3121002001 7,457 3,500 2 $335.57 $332.50 $668.07 COM
2 3121002004 6,968 2,400 2 $313.56 $228.00 $541.56 COM
3 3121002027 6,967 2,046 2 $313.52 $194.37 $507.89 COM
4 3121002031 13,944 4,200 2 $627.48 $399.00 $1,026.48 COM 5 3121002034 20,931 9,224 2 $941.90 $876.28 $1,818.18 COM 6 3121002035 15,314 6,000 2 $689.13 $570.00 $1,259.13 COM 7 3121002038 13,935 614 2 $627.08 $58.33 $685.41 COM
8 3121002039 12,394 3,055 2 $557.73 $290.23 $847.96 COM 9 3121003002 22,369 12,800 2 $1,006.61 $1,216.00 $2,222.61 COM 10 3121003003 7,461 0 2 $335.75 $0.00 $335.75 COM
11 3121003004 7,463 1,377 2 $335.84 $130.82 $466.65 COM 12 3121003005 7,467 6,000 2 $336.02 $570.00 $906.02 COM 13 3121003006 7,465 3,077 2 $335.93 $292.32 $628.24 COM 14 3121003007 14,922 2,058 2 $671.49 $195.51 $867.00 COM 15 3121003016 19,726 13,602 2 $887.67 $1,292.19 $2,179.86 COM 16 3121003017 17,299 8,000 2 $778.46 $760.00 $1,538.46 COM 17 3121003900 8,760 4,434 2 $394.20 $421.23 $815.43 COM 18 3122016006 11,977 1,706 2 $0.00 $0.00 $0.00 RES
19 3122016018 14,510 4,100 2 $652.95 $389.50 $1,042.45 COM 20 3122016038 20,590 1,713 2 $926.55 $162.74 $1,089.29 COM 21 3133002802 87,046 2,900 2 $3,917.07 $275.50 $4,192.57 COM 22 3133002803 43,589 750 2 $1,961.51 $71.25 $2,032.76 COM 23 3133002900 86,900 0 2 $3,910.50 $0.00 $3,910.50 COM
24 3133003001 15,039 6,978 1 $1,278.32 $1,151.37 $2,429.69 COM 25 3133003023 10,633 0 2 $478.49 $0.00 $478.49 COM
26 3133003024 11,185 0 2 $503.33 $0.00 $503.33 COM
27 3133003025 21,603 5,128 1 $1,836.26 $846.12 $2,682.38 COM 28 3133003027 7,477 4,050 1 $635.55 $668.25 $1,303.80 COM 29 3133003028 5,008 0 2 $225.36 $0.00 $225.36 COM
30 3133003029 9,913 0 2 $446.09 $0.00 $446.09 COM
31 3133003032 42,487 21,596 1 $3,611.40 $3,563.34 $7,174.74 COM 32 3133003034 15,996 6,694 1 $1,359.66 $1,104.51 $2,464.17 COM 33 3133003038 59,511 76,093 1 $5,058.44 $12,555.35 $17,613.78 COM 34 3133003900 19,633 0 2 $883.49 $0.00 $883.49 COM
35 3133003901 75,844 62,396 2 $3,412.98 $5,927.62 $9,340.60 COM

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Downtown Lancaster PBID Management District Plan Page 37 36 3133004001 18,755 7,560 1 $1,594.18 $1,247.40 $2,841.58 COM 37 3133004012 7,008 2,870 1 $595.68 $473.55 $1,069.23 COM 38 3133004021 29,432 2,695 2 $1,324.44 $256.03 $1,580.47 COM 39 3133004023 12,709 2,700 2 $571.91 $256.50 $828.41 COM 40 3133004026 15,658 4,404 2 $704.61 $418.38 $1,122.99 COM 41 3133004027 11,619 2,971 1 $987.62 $490.22 $1,477.83 COM 42 3133005016 7,110 1,534 2 $319.95 $145.73 $465.68 COM 43 3133005021 9,975 894 2 $448.88 $84.93 $533.81 COM
44 3133005024 8,448 3,510 1 $718.08 $579.15 $1,297.23 COM 45 3133005026 7,994 0 2 $359.73 $0.00 $359.73 COM
46 3133005027 8,485 910 2 $381.83 $86.45 $468.28 COM
47 3133005030 7,557 1,310 2 $340.07 $124.45 $464.52 COM 48 3133005031 8,927 928 2 $401.72 $88.16 $489.88 COM
49 3133005032 17,292 1,104 1 $1,469.82 $182.16 $1,651.98 COM 50 3133005033 14,324 1,699 1 $1,217.54 $280.34 $1,497.88 COM 51 3133007005 4,140 1,619 1 $351.90 $267.14 $619.04 COM 52 3133007006 4,250 1,115 1 $361.25 $183.98 $545.23 COM 53 3133007007 4,300 3,750 1 $365.50 $618.75 $984.25 COM 54 3133007008 4,300 3,638 1 $365.50 $600.27 $965.77 COM 55 3133007009 4,300 3,750 1 $365.50 $618.75 $984.25 COM 56 3133007010 4,558 3,900 1 $387.43 $643.50 $1,030.93 COM 57 3133009006 8,500 7,500 1 $722.50 $1,237.50 $1,960.00 COM 58 3133009007 4,590 3,650 1 $390.15 $602.25 $992.40 COM 59 3133009008 4,250 3,650 1 $361.25 $602.25 $963.50 COM 60 3133009012 8,340 7,818 1 $708.90 $1,289.97 $1,998.87 COM 61 3133024017 35,285 13,392 2 $793.91 $636.12 $1,430.03 APART 62 3133024018 12,845 49,994 2 $289.01 $2,374.72 $2,663.73 APART 63 3133024019 15,918 17,856 2 $358.16 $848.16 $1,206.32 APART 64 3133024020 5,141 5,400 2 $115.67 $256.50 $372.17 APART 65 3133024021 23,795 65,320 2 $535.39 $3,102.70 $3,638.09 APART 66 3133024022 909 0 2 $20.45 $0.00 $20.45 APART
67 3133024024 25,425 31,454 1 $2,161.13 $5,189.91 $7,351.04 COM 68 3133024025 10,950 1,460 1 $930.75 $240.90 $1,171.65 COM 69 3133024026 19,541 13,104 1 $1,660.99 $2,162.16 $3,823.15 COM 70 3133024907 24,266 0 2 $1,091.97 $0.00 $1,091.97 COM
71 3133024908 4,976 0 2 $111.96 $0.00 $111.96 APART
72 3133025016 14,219 4,008 2 $639.86 $380.76 $1,020.62 COM 73 3133025017 31,535 17,580 2 $1,419.08 $1,670.10 $3,089.18 COM 74 3133025019 10,484 3,729 1 $891.14 $615.29 $1,506.43 COM 75 3133025020 11,890 21,565 1 $1,010.65 $3,558.23 $4,568.88 COM 76 3133025900 9,709 0 2 $436.91 $0.00 $436.91 COM

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Downtown Lancaster PBID Management District Plan Page 38 77 3133025901 7,900 0 2 $355.50 $0.00 $355.50 COM
78 3133025902 35,936 0 2 $1,617.12 $0.00 $1,617.12 COM
79 3133025903 10,843 41,950 1 $921.66 $6,921.75 $7,843.41 COM 80 3133025904 10,505 0 1 $892.93 $0.00 $892.93 COM
81 3133025906 8,528 4,350 1 $724.88 $717.75 $1,442.63 COM 82 3133025907 3,489 1,400 1 $296.57 $231.00 $527.57 COM 83 3133026001 6,476 6,997 1 $550.46 $1,154.51 $1,704.97 COM 84 3133026005 11,301 6,480 1 $960.59 $1,069.20 $2,029.79 COM 85 3133026024 5,565 3,300 1 $473.03 $544.50 $1,017.53 COM 86 3133026025 5,551 3,150 1 $471.84 $519.75 $991.59 COM 87 3133026026 5,563 3,195 1 $472.86 $527.18 $1,000.03 COM 88 3133026039 13,845 7,992 1 $1,176.83 $1,318.68 $2,495.51 COM 89 3133026041 5,610 2,556 1 $476.85 $421.74 $898.59 COM 90 3133026042 38,482 16,128 2 $1,731.69 $1,532.16 $3,263.85 COM 91 3133026044 11,061 7,433 1 $940.19 $1,226.45 $2,166.63 COM 92 3133026048 22,743 9,900 1 $1,933.16 $1,633.50 $3,566.66 COM 93 3133026800 47,910 32,763 2 $2,155.95 $3,112.49 $5,268.44 COM 94 3133026801 48,303 0 2 $2,173.64 $0.00 $2,173.64 COM
95 3133026904 17,084 0 2 $768.78 $0.00 $768.78 COM
96 3133026905 6,011 0 2 $270.50 $0.00 $270.50 COM
97 3134005900 8,819 0 2 $396.86 $0.00 $396.86 COM
98 3134005901 18,423 0 2 $829.04 $0.00 $829.04 COM
99 3134005907 8,857 0 2 $398.57 $0.00 $398.57 COM
100 3134005908 599 0 2 $26.96 $0.00 $26.96 COM
101 3134005916 48,088 0 2 $2,163.96 $0.00 $2,163.96 COM 102 3134005918 5,640 0 2 $253.80 $0.00 $253.80 COM
103 3134005920 377 0 2 $16.97 $0.00 $16.97 COM
104 3134009025 8,544 0 2 $384.48 $0.00 $384.48 COM
105 3134009028 7,474 0 2 $336.33 $0.00 $336.33 COM
106 3134009031 19,101 21,271 1 $1,623.59 $3,509.72 $5,133.30 COM 107 3134009032 24,534 42,052 1 $1,090.08 $3,626.96 $4,717.05 MIXED 108 3134009033 17,554 45,404 2 $394.97 $2,156.69 $2,551.66 APART 109 3134009036 17,635 16,424 1 $1,498.98 $2,709.96 $4,208.94 COM 110 3134009901 8,782 0 2 $395.19 $0.00 $395.19 COM
111 3134009902 5,680 0 2 $255.60 $0.00 $255.60 COM
112 3134009907 5,711 0 2 $257.00 $0.00 $257.00 COM
113 3134009908 8,626 0 2 $388.17 $0.00 $388.17 COM
114 3134009909 8,749 0 2 $393.71 $0.00 $393.71 COM
115 3134009910 5,685 0 2 $255.83 $0.00 $255.83 COM
116 3134009911 11,008 0 2 $495.36 $0.00 $495.36 COM
117 3134009912 11,007 0 2 $495.32 $0.00 $495.32 COM

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Downtown Lancaster PBID Management District Plan Page 39 118 3134009915 17,558 5,015 2 $790.11 $476.43 $1,266.54 COM 119 3134010919 182,724 48,721 1 $15,531.54 $8,038.97 $23,570.51 COM 120 3134011001 7,314 7,591 1 $621.69 $1,252.52 $1,874.21 COM 121 3134011002 9,385 7,497 1 $797.73 $1,237.01 $2,034.73 COM 122 3134011003 0 0 1 $0.00 $0.00 $0.00 EASE
123 3134011901 16,578 0 1 $0.00 $0.00 $0.00 FED
124 3134011912 8,388 3,076 1 $712.98 $507.54 $1,220.52 COM 125 3134012901 633 0 2 $28.49 $0.00 $28.49 COM
126 3134012902 4,152 0 1 $352.92 $0.00 $352.92 COM
127 3134012903 8,851 0 2 $398.30 $0.00 $398.30 COM
128 3134012904 8,839 0 2 $397.76 $0.00 $397.76 COM
129 3134012905 8,802 0 2 $396.09 $0.00 $396.09 COM
130 3134012906 7,321 0 1 $622.29 $0.00 $622.29 COM
131 3134012908 4,400 0 2 $198.00 $0.00 $198.00 COM
132 3134012909 8,839 0 2 $397.76 $0.00 $397.76 COM
133 3134012910 5,215 0 1 $443.28 $0.00 $443.28 COM
134 3134012911 16,920 1,000 2 $761.40 $95.00 $856.40 COM 135 3134012912 8,106 0 2 $364.77 $0.00 $364.77 COM
136 3134012913 51,529 0 2 $2,318.81 $0.00 $2,318.81 COM 137 3134012914 17,697 0 2 $796.37 $0.00 $796.37 COM
138 3134012915 1,197 0 2 $53.87 $0.00 $53.87 COM
139 3134012916 8,854 0 2 $398.43 $0.00 $398.43 COM
140 3134012917 8,101 3,797 2 $364.55 $360.72 $725.26 COM 141 3134012918 9,609 0 2 $432.41 $0.00 $432.41 COM
142 3134012919 3,546 1,008 2 $159.57 $95.76 $255.33 COM 143 3134012920 7,758 0 1 $659.43 $0.00 $659.43 COM
144 3134012921 594 0 2 $26.73 $0.00 $26.73 COM
145 3134012922 540 0 2 $24.30 $0.00 $24.30 COM
146 3134012923 637 0 2 $28.67 $0.00 $28.67 COM
147 3134012924 472 0 2 $21.24 $0.00 $21.24 COM
148 3134012925 1,021 0 2 $45.95 $0.00 $45.95 COM
149 3134012926 1,680 0 1 $142.80 $0.00 $142.80 COM
150 3134012927 7,548 0 1 $641.58 $0.00 $641.58 COM
151 3134012928 504 0 1 $42.84 $0.00 $42.84 COM
152 3134013008 10,971 5,840 2 $493.70 $554.80 $1,048.50 COM 153 3134013010 13,126 12,341 1 $1,115.71 $2,036.27 $3,151.98 COM 154 3134013012 3,923 2,080 1 $333.46 $343.20 $676.66 COM 155 3134013015 9,901 4,000 1 $841.59 $660.00 $1,501.59 COM 156 3134013016 7,829 10,092 1 $665.47 $1,665.18 $2,330.65 COM 157 3134013020 2,460 2,052 1 $209.10 $338.58 $547.68 COM 158 3134013021 4,923 2,000 1 $418.46 $330.00 $748.46 COM

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Downtown Lancaster PBID Management District Plan Page 40 159 3134013900 8,862 0 2 $398.79 $0.00 $398.79 COM
160 3134013901 8,870 0 2 $399.15 $0.00 $399.15 COM
161 3134013902 8,872 0 2 $399.24 $0.00 $399.24 COM
162 3134013903 11,451 0 2 $515.30 $0.00 $515.30 COM
163 3134013904 9,853 0 2 $443.39 $0.00 $443.39 COM
164 3134013905 5,303 0 2 $238.64 $0.00 $238.64 COM
165 3134013906 8,853 0 2 $398.39 $0.00 $398.39 COM
166 3134013907 8,829 0 2 $397.31 $0.00 $397.31 COM
167 3134013908 8,828 0 2 $397.26 $0.00 $397.26 COM
168 3134013910 44,118 22,880 2 $1,985.31 $2,173.60 $4,158.91 COM 169 3134014001 18,876 9,436 2 $849.42 $896.42 $1,745.84 COM 170 3134014003 9,435 1,920 2 $424.58 $182.40 $606.98 COM 171 3134014004 9,433 2,224 2 $424.49 $211.28 $635.77 COM 172 3134014005 9,431 3,528 2 $424.40 $335.16 $759.56 COM 173 3134014006 2,780 864 2 $125.10 $82.08 $207.18 COM
174 3134014007 9,431 3,352 2 $424.40 $318.44 $742.84 COM 175 3134014008 7,073 2,438 2 $318.29 $231.61 $549.90 COM 176 3134014009 2,360 432 2 $106.20 $41.04 $147.24 COM
177 3134014017 7,700 4,000 1 $654.50 $660.00 $1,314.50 COM 178 3134014018 7,700 6,516 1 $654.50 $1,075.14 $1,729.64 COM 179 3134014025 3,080 0 1 $261.80 $0.00 $261.80 COM
180 3134014026 10,019 2,478 2 $450.86 $235.41 $686.27 COM 181 3134014027 7,654 4,480 1 $650.59 $739.20 $1,389.79 COM 182 3134014029 13,515 10,038 1 $1,148.78 $1,656.27 $2,805.05 COM 183 3134014030 18,876 1,332 2 $849.42 $126.54 $975.96 COM 184 3134014907 9,871 0 2 $444.20 $0.00 $444.20 COM
185 3134014911 4,949 2,294 2 $222.71 $217.93 $440.64 COM 186 3134014919 5,877 0 2 $264.47 $0.00 $264.47 COM
187 3134014920 9,435 2,200 2 $424.58 $209.00 $633.58 COM 188 3134014921 9,964 7,040 1 $846.94 $1,161.60 $2,008.54 COM 189 3134015006 4,550 3,824 1 $386.75 $630.96 $1,017.71 COM 190 3134015007 5,291 3,000 1 $449.74 $495.00 $944.74 COM 191 3134015008 5,270 2,500 1 $447.95 $412.50 $860.45 COM 192 3134015009 7,078 4,500 1 $601.63 $742.50 $1,344.13 COM 193 3134015010 8,850 2,584 2 $398.25 $245.48 $643.73 COM 194 3134015013 8,830 3,076 2 $397.35 $292.22 $689.57 COM 195 3134015017 5,000 4,400 1 $425.00 $726.00 $1,151.00 COM 196 3134015019 8,846 0 2 $398.07 $0.00 $398.07 COM
197 3134015020 8,837 0 2 $397.67 $0.00 $397.67 COM
198 3134015021 19,432 9,446 2 $874.44 $897.37 $1,771.81 COM 199 3134015901 8,874 0 2 $399.33 $0.00 $399.33 COM

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Downtown Lancaster PBID Management District Plan Page 41 200 3134015908 8,845 720 2 $398.03 $68.40 $466.43 COM
201 3134015909 8,861 1,367 2 $398.75 $129.87 $528.61 COM 202 3134015910 8,858 796 2 $398.61 $75.62 $474.23 COM
203 3134015911 8,860 660 2 $398.70 $62.70 $461.40 COM
204 3134015914 7,196 0 2 $323.82 $0.00 $323.82 COM
205 3134015915 4,384 788 2 $197.28 $74.86 $272.14 COM
206 3134015916 11,208 6,768 2 $504.36 $642.96 $1,147.32 COM 207 3134015917 2,243 1,196 2 $100.94 $113.62 $214.56 COM 208 3134015918 17,680 12,438 1 $1,502.80 $2,052.27 $3,555.07 COM 209 3134016004 8,850 2,774 2 $398.25 $263.53 $661.78 COM 210 3134016007 190 0 2 $8.55 $0.00 $8.55 COM
211 3134016010 7,500 5,600 1 $637.50 $924.00 $1,561.50 COM 212 3134016011 15,000 6,139 1 $1,275.00 $1,012.94 $2,287.94 COM 213 3134016012 6,750 3,330 2 $303.75 $316.35 $620.10 COM 214 3134016014 7,500 1,972 2 $337.50 $187.34 $524.84 COM 215 3134016015 8,850 626 2 $398.25 $59.47 $457.72 COM
216 3134016016 8,850 360 2 $398.25 $34.20 $432.45 COM
217 3134016017 8,850 4,366 2 $398.25 $414.77 $813.02 COM 218 3134016018 17,699 7,775 2 $796.46 $738.63 $1,535.08 COM 219 3134016019 17,509 4,600 2 $787.91 $437.00 $1,224.91 COM 220 3134016022 2,850 0 2 $128.25 $0.00 $128.25 COM
221 3134016023 29,550 22,376 1 $2,511.75 $3,692.04 $6,203.79 COM 222 3134016024 26,501 9,816 2 $1,192.55 $932.52 $2,125.07 COM 223 3134016900 7,500 0 2 $337.50 $0.00 $337.50 COM
224 3134017010 8,848 0 2 $398.16 $0.00 $398.16 COM
225 3134017011 17,628 8,275 2 $793.26 $786.13 $1,579.39 COM 226 3134019010 8,869 3,312 2 $399.11 $314.64 $713.75 COM 227 3134019021 17,712 5,432 2 $797.04 $516.04 $1,313.08 COM 228 3134020008 26,414 13,275 2 $1,188.63 $1,261.13 $2,449.76 COM 229 3134020027 1,794 0 2 $80.73 $0.00 $80.73 COM
230 3134020036 9,457 3,954 2 $425.57 $375.63 $801.20 COM 231 3138001906 43,141 0 2 $1,941.35 $0.00 $1,941.35 COM 232 3138001909 74,432 0 2 $3,349.44 $0.00 $3,349.44 COM 233 3138001910 20,871 0 2 $939.20 $0.00 $939.20 COM
234 3138019021 1,407 0 2 $63.32 $0.00 $63.32 COM
235 3138019022 20,839 6,100 2 $937.76 $579.50 $1,517.26 COM 236 3138019809 64,273 0 2 $2,892.29 $0.00 $2,892.29 COM 237 3138019905 74,295 0 2 $3,343.28 $0.00 $3,343.28 COM Total $334,978.45

September 16, 2022
Downtown Lancaster PBID Management District Plan Page 42 Mixed Use Parcels

Map
Key

AIN ASSESSED

LOT SIZE

ASSESSED

BLDG SIZE

ZONE LOT
ASMT
BLDG
ASMT

ASSESSMENT TYPE
107 3134009032 1,114 1,912 1 $94.69 $315.48 $410.17 COM 107 3134009032 23,420 40,140 1 $995.35 $3,311.55 $4,306.90 APART

September 16, 2022
Downtown Lancaster PBID Management District Plan Page 43 APPENDIX 4 – TOTAL ESTIMATED MAXIMUM COST OF

IMPROVEMENTS AND ACTIVITIES

The estimated maximum cost of the line items below was developed based on the estimated costs of providing services in the renewed District. The costs below are estimated, the actual line-item costs will fluctuate. The table below shows expenditures from assessment and non -assessment funds.

Assessment funds are governed by Section V. There is no limit on reallocation of non -assessment funds by the Owners’ Association. The total maximum budget may exceed the maximum listed in this table if parcel ownership changes result in parcels being assessed at a higher rate due to a higher estimated benefit.

Fiscal
Year Clean & Safe
Marketing
and
Promotions
Admin &
Advocacy Contingency Total
2024 $308,501.48 $6,851.72 $13,711.01 $13,711.01 $342,775.22 2025 $317,756.52 $7,057.27 $14,122.34 $14,122.34 $353,058.47 2026 $327,289.22 $7,268.99 $14,546.01 $14,546.01 $363,650.23 2027 $337,107.90 $7,487.06 $14,982.39 $14,982.39 $374,559.74 2028 $347,221.14 $7,711.67 $15,431.86 $15,431.86 $385,796.53 2029 $357,637.77 $7,943.02 $15,894.82 $15,894.82 $397,370.43 2030 $368,366.90 $8,181.31 $16,371.66 $16,371.66 $409,291.53 2031 $379,417.91 $8,426.75 $16,862.81 $16,862.81 $421,570.28 2032 $390,800.45 $8,679.55 $17,368.69 $17,368.69 $434,217.38 2033 $402,524.46 $8,939.94 $17,889.75 $17,889.75 $447,243.90 Total $3,536,623.75 $78,547.28 $157,181.34 $157,181.34 $3,929,533.71

September 16, 2022
Downtown Lancaster PBID Management District Plan Page 44 APPENDIX 5 – SERVICES BY ZONE

The table below illustrates the planned improvements and activities to be provided in each zone of the District. Improvements and activities to be provided in each zone may be adjusted as needed over the life of the District, as determined by the Association’s Board.

Service Category Zone 1 Zone 2
Clean & Safe
• BLVD Ambassador Service
• Sheriff/Public Safety Patrols
• District Wide Maintenance & Beautification
• Power Washing
• Landscape Services
• Lighting Improvements
• Smart Trash Compactors

✓
✓
✓
✓
✓
✓
✓

✓
✓
✓

✓
Marketing & Promotions (If applicable)
• Comprehensive Marketing Program
• Cultural District Designation
• City of Lancaster Application - BLVD Tab
• Wi-Fi
• Downtown Special Events

✓
✓
✓
✓
✓

✓
✓
✓

Administration & Advocacy
• Business Assistance Program
• Leasing Support

✓
✓

✓

Contingency / Reserve ✓ ✓

September 16, 2022
Downtown Lancaster PBID Management District Plan Page 45 APPENDIX 6 – MAP

Lancaster City CouncilApril 11, 2023

Lancaster City Council
April 11, 2023