APPROVED AS TO FORM AND LEGALITY
___________________________
CITY ATTORNEY’S OFFICE
OAKLAND CITY COUNCIL
RESOLUTION NO. ______________ C.M.S.
RESOLUTION MAKING A DETERMINATION REGARDING ANY
PROTESTS RECEIVED FOR THE LAUREL BUSINESS IMPROVEMENT
DISTRICT 2025 (LAUREL BID 2025), APPROVING THE LAUREL BID 2025 MANAGEMENT DISTRICT PLAN, APPROVING THE
ASSESSMENTS FOR THE LAUREL BID 2025, DIRECTING RECORDING
OF THE PROPOSED ASSESSMENT DISTRICT BOUNDARY
DESCRIPTION, ESTABLISHING THE LAUREL BUSINESS
IMPROVEMENT DISTRICT 2025, AND APPOINTING THE ADVISORY
BOARD FOR THE LAUREL BID 2025
WHEREAS, the City of Oakland (City) City Council enacted the Business Improvement Management District Ordinance (BIMD Ordinance) pursuant to Ordinance No. 12190 C.M.S. (1999), as codified in Chapter 4.48 of the Oakland Municipal Code, establishing the procedures for the formation of business improvement management districts; and
WHEREAS, the City Council approved a Neighborhood Business Improvement District Program (Program) pursuant to Council Resolution No. 75323 C.M.S., dated November 9, 1999, to provide technical and financial assistance to stakeholder groups of business and property owners in the City to assist in the formation of such districts; and
WHEREAS, under the BIMD Ordinance and with the assistance of the Program, the relevant property owners have duly petitioned to form the Laurel Business Improvement District 2025 (Laurel BID 2025) and have proposed the Laurel Business Improvement District Management District Plan for the operation of the District (District Plan) (Exhibit A); and
WHEREAS, the District Plan contains a detailed engineer’s report prepared by a registered professional engineer recognized by the State of California; and
WHEREAS, the District Plan was prepared in accordance with the provisions of Article XIII of the California Constitution and the BIMD Ordinance, and has been filed with the City Clerk for proceedings in formation of this district; and
WHEREAS, the District Plan, provides for enhanced cleaning, marketing, security and promotional activities and improvements of particular benefit to the properties located within the Laurel BID 2025 (as more specifically identified in the District Plan attached hereto); and
2 WHEREAS, the District Plan stipulates that the City shall be paid an administrative fee equal to three percent (3%) of the Laurel BID 2025 assessments collected, including penalties and interest, and will be divided equally between City’s Treasury Bureau and the Economic and Workforce Development Department to offset the cost of staffing support; and
WHEREAS, the City Council adopted on April 14, 2025 a Resolution of Intention to form the Laurel BID 2025 (Resolution No. 90684 C.M.S.) with the title of the Resolution of Intention as follows:
RESOLUTION:
1. DECLARING AN INTENTION TO FORM THE LAUREL BUSINESS
IMPROVEMENT DISTRICT 2025 (LAUREL BID 2025);
2. GRANTING PRELIMINARY APPROVAL OF THE LAUREL BID 2025 MANAGEMENT PLAN;
3. DIRECTING FILING OF THE PROPOSED LAUREL BID 2025
ASSESSMENT DISTRICT BOUNDARY DESCRIPTION WITH THE CITY
CLERK;
4. DIRECTING DISTRIBUTION OF A BALLOT TO ALL AFFECTED
PROPERTY OWNERS IN THE PROPOSED LAUREL BID 2025 TO
DETERMINE WHETHER A MAJORITY PROTEST EXISTS; AND
5. SCHEDULING A PUBLIC HEARING FOR JULY 1, 2025
; and
WHEREAS, notice was given to all interested parties that a Public Hearing would be held at 3:30 p.m. on July 1, 2025, at City Hall, One Frank H. Ogawa Plaza, Oakland California, in the City Council Chambers, to hear all public comments, protests, count the returned ballots as to the formation of the Laurel BID 2025, appoint the Advisory Board for the Laurel BID 2025, and take final action as to the formation of the Laurel BID 2025; and
WHEREAS, a copy of the preliminary report of the City Clerk is on file in the office of the City Clerk relating to the formation of the Laurel BID 2025; and
WHEREAS, on or before May 15, 2025, the following documents were mailed to each affected property owner in the proposed Laurel BID 2025: 1) the Resolution of Intention to form the Laurel BID 2025; 2) notice of the public hearing to take place at 3:30 p.m. on July 1, 2025 or as soon thereafter as the matter can be heard; 3) a ballot to vote on formation of the Laurel BID 2025; 4) and instructions on procedures for completion and return of ballots; and while no Chambers of Commerce or business organizations were known to be located within the proposed boundaries of the Laurel, courtesy copies of the Resolution of Intention and public notice were mailed to all city-wide Chambers of Commerce; and
3 WHEREAS, at the July 1, 2025 hearing the testimony of all interested persons for or against the establishment of the Laurel BID 2025, the boundaries of the Laurel BID 2025, or the furnishing of the specified types of improvements or activities was heard; now, therefore, be it
RESOLVED: That the City Council finds that a majority protest does not exist within the meaning of Oakland Municipal Code section 4.48.070.G because the ballots submitted in favor of the assessment exceed the ballots submitted in opposition to the assessment; and be it
FURTHER RESOLVED: That the City Council finds that the District Plan has been prepared in compliance with Chapter 4.48 of the Oakland Municipal Code, the laws of the State of California and the California Constitution; and be it
FURTHER RESOLVED: That the District Plan is approved and the assessments for the first year shall be as provided for in the District Plan and in the assessment roll contained in Appendix 1 of the District Plan; and be it
FURTHER RESOLVED: That the Laurel BID 2025 is hereby established pursuant to Chapter 4.48 of the Oakland Municipal Code with the boundaries as specified in the District Plan; and be it
FURTHER RESOLVED: That the name of the Business Improvement District shall be the Laurel BID 2025; and be it
FURTHER RESOLVED: That the reasons for the assessments and the types of the improvements and activities proposed to be funded and acquired by the levy of assessments on properties within the Laurel BID 2025 and the time period for which the proposed improvements are to be made are those specified in Section 3 of the District Plan; and be it
FURTHER RESOLVED: That the improvements and activities to be provided in the Laurel BID 2025 will be funded by the levy of annual assessments to pay for all improvements and activities within the area; and be it
FURTHER RESOLVED: That the revenue from the levy of assessments within the Laurel BID 2025 shall not be used to provide improvements or activities outside the district or for any purpose other than the purposes specified in the District Plan, including modifications, if any, by the City Council at the hearing concerning the establishment of the district as specified in this Resolution; and be it
FURTHER RESOLVED: That the boundaries of the Laurel BID 2025 and of each separate benefit zone within the district are delineated in Section 2 of the District Plan, including a map outlining each affected lot; and be it
FURTHER RESOLVED: That the proposed method and basis of levying the assessments to be levied against each property in the Laurel BID 2025 is based on building square footage, parcel square footage, and linear street frontage of each parcel located within the Laurel BID 2025, and the assessments proposed for each property are contained in Attachment 1 of the District Plan; and be it
4 FURTHER RESOLVED: That the assessments for the entire Laurel BID 2025 equal Two Hundred Sixty-Two Thousand Seven Hundred Eighteen dollars ($262,718) for the first year of the Laurel BID and the amounts chargeable to each parcel are as shown in Attachment A of the District Plan; and be it
FURTHER RESOLVED: That the assessments for the Laurel BID 2025 be booked into and disbursed from the Miscellaneous Trust Fund (7999), Treasury Operations Organization (08721), Pass Thru Assessments Account (24224), DP080 Administrative Project (1000007), Laurel BID Program (BIDL); and be it
FURTHER RESOLVED: That the Laurel BID 2025 shall be in existence for a period of twenty (20) years during which a maximum eight percent (8%) increase per year, beginning in year two, in the amount of the assessment on each property shall be allowable with City Council approval, as provided for in the District Plan; and be it
FURTHER RESOLVED: The assessment shall be attached to the property and collected with the annual county property taxes; and be it
FURTHER RESOLVED: That the City Council finds, determines and declares that the Laurel BID 2025 and each parcel therein is benefited by the improvements, maintenance, and activities funded by the assessment to be levied, including all expenses incurred incidentally thereto, upon the lots and parcels of real property in proportion to the estimated benefits to be derived as specified in the District Plan, and the engineer’s report included therein; and be it
FURTHER RESOLVED: That the City Administrator shall cause to be recorded a notice and map describing the assessment district pursuant to California Streets and Highways Code Division 4.5 (commencing with Section 3100); and be it
FURTHER RESOLVED: That properties in the Laurel BID 2025 shall be subject to any amendments to Chapter 4.48 of the Oakland Municipal Code (Oakland Business Improvement District Ordinance); and be it
FURTHER RESOLVED: The City Administrator is hereby authorized to enter into a contract with any nonprofit corporation comprised of the assessees themselves and designated by affected property owners to conduct or contract for the safety, cleaning, marketing, economic development, government/community relations, administration and management of the Laurel BID 2025 as provided for in the BIMD (Chapter 4.48); and be it
FURTHER RESOLVED: That the Board of Directors for the above designated non- profit corporation shall serve as the Advisory Board for the Laurel BID 2025 until further notice by the City Council as provided for in the BIMD; and be it
5 FURTHER RESOLVED: That the Advisory Board for the Laurel BID 2025 shall also have at least one member who is a business licensee within the Laurel BID 2025 who is not also a property owner within the Laurel BID 2025.
IN COUNCIL, OAKLAND, CALIFORNIA,
PASSED BY THE FOLLOWING VOTE:
AYES - BROWN, FIFE, GALLO, HOUSTON, RAMACHANDRAN, UNGER, WANG, AND
PRESIDENT JENKINS
NOES –
ABSENT –
ABSTENTION –
ATTEST:
ASHA REED
City Clerk and Clerk of the Council of the
City of Oakland, California
3424449v1/ SW
1 THE RENEWED AND EXPANDED LAUREL DISTRICT
COMMUNITY BENEFIT DISTRICT - 2025
(LDCBD)
MANAGEMENT DISTRICT PLAN
DECEMBER 9, 2024
Corporate Office 710 W. Ivy Street San Diego, CA 92101 888 356-2726 New England Office: 794 Purchase Street New Bedford, MA 02740 [email protected] www.newcityamerica.com Facebook: New City America, Inc.
Exhibit A
2 TABLE OF CONTENTS I. Management District Plan Summary ...................................................................................3 II. The Laurel District CBD Boundaries .....................................................................................8 III. Renewed and expanded 20-year LDCBD Work Plan and Budget ..................................... 11 IV. Renewed and expanded LDCBD Assessment Formula ..................................................... 16 V. Publicly Owned Parcels ..................................................................................................... 20 VI. LDCBD District Governance............................................................................................... 20VII. Renewed and expanded Rules and Regulations ............................................................... 21 VIII. Implementation Timetable ............................................................................................... 21 Appendix 1: Year 1 CBD Assessment Roll .................................................................................. 22 Attachment 1: Certified Assessment
3 I. MANAGEMENT DISTRICT PLAN SUMMARY The Laurel District Community Benefit District (LDCBD or District) is a Property and Business Improvement District proposed to be renewed and expanded for a 20-year period by the Laurel District Association, who has professionally managed the district since 2005. Understanding that the timeline for formation in time for Fiscal Year 2025-2026 is upon us now, the Laurel District Association Renewal Committee felt that the time had come to renew this special benefits district and that the services provided by the District must be continued to support current businesses and potential new businesses, restaurants, and mixed-use development as the Laurel District continues to grow. We are now proposing a 20-year term since this will be the third time the district has been formed since its creation. The renewal process is time consuming, tedious and expensive. The newly amended enabling ordinance under the City of Oakland, has recently been updated to allow for a longer term, while retaining a provision that allows for an annual disestablishment if the district fails to successfully provide services supported by the district property owners. The purpose of renewing the LDCBD is to continue to provide and manage activities, services and improvements for the Laurel District, an important, historic, and beautiful East Bay Area business center, including cleaning services, demand creation, cultural events, public space development, marketing and promotion, social media, landscaping and beautification services, District administration services, programs, and improvements. The LDCBD is a benefit assessment district that will enable the LDCBD property owners and businesses, working as a unit, to fund needed property and business-related improvement programs, and services above what is provided by the City of Oakland and that benefit LDCBD property owners and businesses. Name: The name of the renewed and expanded property assessment district is the Laurel District Community Benefit District 2025, which we will refer to throughout the document as the LDCBD or District. Location: The renewed and expanded LDCBD is in the Laurel District of Oakland and will include parcels in the current Laurel District PBID with minor expansions on 35th Avenue running southward, including parcels on both sides of 35th Avenue, ending at the 580 freeway. (See map on page 9) Benefit Zones: There will be one benefit zone within the renewed and expanded LDCBD. Year 1 Annual Revenue Generation - 2026 Special Benefit first year revenues (assessments) $256,150 General Benefit $6,568 Total First Year Budget $262,718
4 Proposed First Year Laurel District Community Benefit District Budget - 2026 Category of Services Percentage of budget 1st Year Allocation (rounded off) Civil Sidewalks/Safety and Cleanliness 40% $102,000 District Identity and Placemaking 30% $ 77,000 Administration 25% $ 64,000 Contingency/Reserve 5% $ 13,150 Total 1st year Budget 100% $ 256,150 All services listed below are special benefits and supplemental to current City services. 1. CIVIL SIDEWALKS/SAFETY AND CLEANLINESS/BEAUTIFICATION 40% Examples of this category of special benefit services and costs may include, but are not limited to: Regular sidewalk and gutter sweeping Regular sidewalk power washing Private security or OPD overtime officers, and homeless outreach workers Personnel to manage in-house or contracted maintenance and/or security teams Beautification of the district Enhanced trash emptying (over and above city services) Timely graffiti removal, within 72 hours as necessary Installation and maintenance of planters throughout the district Streetscape improvements for walkability 2. DISTRICT IDENTITY AND PLACEMAKING 30%Examples of this category of special benefit services and costs may include, but are not limited to: Branding of the Laurel District so a positive image is promoted to the public-at-large and surrounding residents Web site and merchant directory maintenance and updates Business attraction Social media, public relations Enhancing the current holiday and seasonal decorations Banner programs Public art displays Public space design and improvements Events and programming to increase foot traffic and district awareness 3. ADMINISTRATION/PROGRAM MANAGEMENT- 25% Examples of this category of special benefit services and costs may include, but is not limited to: Staff and administrative costs, contracted or in-house Business and property owner support services and advocacy Directors and Officers and General Liability Insurance Government and public relations
5 Office related expenses, rent Financial reporting and accounting Compliance Legal work Grant writing 4. CONTINGENCY/CITY AND COUNTY FEES/RESERVE 5% Examples of this category of special benefit services and costs include, but is not limited to: Delinquencies, City/County fees Contingency Finance: The LDCBD is a Benefit assessment district consisting of real property (120 parcels and 101 property owners, and a few residential condominiums). No bonds shall be issued to fund LDCBD programs. Budget: LDCBD property assessment revenue for Year 1 is projected to be $ 256,150. The Assessment Engineer has determined that general benefits equate to 2½ % of the total adjusted LDCBD program costs resulting in a gross budget of $262,718 including $ 6,568 in general benefits. General benefit costs shall be derived from non-assessment revenue sources such as grants, program income, credits, interest, memberships, and other sources. The categories of services, activities, and improvements and their percentages represent the costs to be funded with a renewed and expanded assessment that District property owners will vote on by mail ballot pursuant to Section 4 of Article XIII D of the California Constitution (also , in the Winter or Spring of 2025. The data to be used for the assessment methodology in the final plan includes the following: 374,558 in gross building square footage 10,152 linear feet for the frontage 780,764 in gross lot square footage 22,670 in residential condo building square footage General Benefit: as defined by the Property and Business Improvement District Law of 1994 means for purposes of a property-based district, any benefit that is not a special benefit and the Law a particular and distinct benefit over and above general benefits conferred on real property located in the district or to the public at large.exclude general enhancement of property value uincludes 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
6 The general benefits of the renewed and expanded LDCBD for the first year will equal $6,568, representing 2½ % of the total District budget of $262,718. Annual Costs: Annual Costs to each property owner based upon their building square footage. In the case of residential condominiums, only building square footage. Method of Financing: The financing of the LDCBD is based upon the levy of special assessments on real properties that receive special benefits from the improvements and activities based upon which Benefit Zone they are located within. There will be four factors used in the determination of proportional costs to the parcels in the District. These four factors are: 1. Linear frontage (excluding alleys) 2. Lot size or the footprint of the parcel 3. Building square footage 4. Current & future residential condominiums that may be constructed within the District, (residential condominiums in the District will be assessed for their actual unit building square footage only) YEAR ONE ASSESSMENT RATES FOR THE RENEWED AND EXPANDED LAUREL DISTRICT Building Square Footage Annual Cost Lot Square Footage Annual Cost Linear Frontage Annual Cost $0.12 $0.15 $9.00 Annual Cap: Assessment rate increases are capped at a maximum of 8% per year, subject to approval by the LDCBD Owner Association Board of Directors and approval by resolution of the City Council of Oakland. The basis for any annual increase is conditioned upon increased costs of running the District, including, but not limited to, increases in labor costs, insurance costs, vehicle and gas costs, special projects, etc. The assessment budget may increase with the addition of new buildings within the District boundaries that increase the total number of properties assessed. Establishment: Establishment of the LDCBD is a four-step process. First, a Management District Plan must be endorsed by the LDCBD Renewal Committee and The Renewal Committee will submit it to the Board of the LDA for review and approval. Second, a petition signed by LDCBD property owners representing at least 30% of the total assessments to be levied must be submitted to the City. Based on the plan, property owners who will pay more than $76,845 in assessments to be levied must sign the petition submitted to the
7 City (including the City-owned properties in the District) to initiate proceedings to form the District. The petition must include a summary of the Management District Plan, as specified in Streets and Highways Code section 36621. The plan, which must include the content specified in Streets and Highways Code section 36622, must be filed with the City Clerk. Third, the City Council must adopt a resolution of intention expressing its intention to form the LDCBD. Fourth, a notice of the hearing must be mailed to affected property owners in accordance with Streets and Highways Code section 36623 and Section 4 of Article XIII D of the California Constitution. The protest and hearing proceeding must be overseen by the City of Oakland. The assessment must be supported by the Management District Plan and the report. After the hearing, if there is no majority protest (i.e., number of weighted ballots in support exceeds those opposed), the City Council may adopt a resolution of formation that constitutes the levy of assessment for the years referred to in the Management District Plan. Based upon this plan, $76,845 in petitions of support must be submitted to the City to initiate the mail balloting procedure as required for property assessment districts as per the Law. Returned ballots in support of the LDCBD formation must outweigh those in opposition based on the amount of assessment to be levied to each benefitting parcel. Duration: As allowed by the local enabling ordinance, the District will have a renewed term of twenty (20) years from January 1, 2026, to December 31, 2045. The renewed and expanded District operations are expected to begin on January 1, 2026. If the District is not renewed and expanded in 2045, the special benefit activities funded by the LDCBD will end on December 31, 2045. If the property owners desire to continue the CBD after the twenty-year period ends, they can renew the District under the same process to form the District, for a term up to 20-years. Furthermore, under the current enabling ordinance, if the district is not providing special benefits as per this plan, the property owners may initiate a disestablishment of the district annually, which, if the required petition threshold is met, may trigger a balloting process to disestablish the District.
8 II. LDCBD BOUNDARIES Boundaries: There are 120 parcels owned by 101 property owners in the proposed LDCBD 2026. The following text will define the boundaries of the renewed and expanded Laurel District CBD. Parcels in the commercial corridors of the LDCBD 2025 will include the following: Northern Boundary: The two parcels at the southeastern and southwestern corners of the intersection of Midvale Avenue and MacArthur Blvd. (Parcels 28-956-01 and 28-957-12) Southern Boundary: The two parcels at the southwestern and southeastern corners of the intersection of MacArthur Blvd. and High Street (Parcels 30-1982-123-1 and 30-1982-118-1). Eastern Boundary: Starting at the parcel at the southeastern corner of the intersection of Midvale Avenue and MacArthur Blvd (parcel 28-957-12), running southward to include all parcels on the east side of MacArthur from Midvale Avenue to the parcel at the southeastern corner of the intersection of MacArthur Blvd and High Street (parcel 30-1982-118-1). The eastern boundary will also include the parcel directly to the east of the parcel at the southeastern corner of the intersection of MacArthur and 35th Avenue, (parcel 28-957-34-44). Western Boundary: Starting at the parcel at the southwestern intersection of Midvale Avenue and MacArthur, (parcel 28-956-01) running southward on 35th Avenue to include all parcels on the west side of MacArthur Blvd up to 35th Avenue, continuing westward including the parcels from 35th Avenue and MacArthur on the west side of 35th Avenue ending at the 580 freeway, including the garden parcel at 28-952-14. Crossing the street to parcel 30-1980-01 at the 580 and 35th Avenue and continuing eastward to the southwestern intersection of 35th Avenue and MacArthur, continuing southward including the parcels on the west side of MacArthur terminating at the parcel at the southwestern intersection of High Street and MacArthur, (parcel 30-1982-123-1)
9 General Boundaries: The renewed and expanded LDCBD is located predominantly in the core area of The Laurel District and includes all parcels on each side of MacArthur Blvd from High Street to Midvale Avenue, as well as along the parcels at the intersection 35th Avenue and MacArthur westward to the 580 freeway. Boundary Description: The renewed and expanded LDCBD encompasses approximately 19 blocks in The Laurel District as detailed below. Benefit Zones: The LDCBD consists of one Benefit Zone. District Boundary Rationale: The LDCBD boundaries are comprised of the commercial core parcels as well as the commercial, mixed-use and multi-family parcels and residential condominium units throughout the District. Summation: A list of all parcels included in the renewed and expanded established LDCBD is shown in Appendix 1, attached to this report and identified by their respective A County assessor parcel numbers. The boundary of the renewed and expanded established LDCBD is shown on the map on page 9 of this plan. All identified parcels within the District boundaries shall be assessed to fund special benefit activities, services and improvements as outlined in this plan and the Report. All LDCBD-funded services, activities, and improvements provided within the District boundaries shall confer special benefits to assessed parcels. Each assessed parcel within the LDCBD will proportionately and specially benefit from the District funded activities, services, and improvements. These services, activities, and improvements are intended to improve commerce, employment, rents and occupancy rates, and investment viability of assessed parcels, and businesses and residents located on those parcels, within the LDCBD. The LDCBD confers special benefits on each individually assessed parcel by creating demand, improving aesthetics and marketing goods and services available from assessed parcels, and the businesses and residential parcels located on those parcels, within the District.
10 11
III. RENEWED AND EXPANDED 20-YEAR LDCBD WORK PLAN AND BUDGET Overview: The activities, services, and improvements to be funded by the LDCBD will include Civil Sidewalks, District Identity and Placemaking, Administration Services, and Contingency. The property uses of the properties within the District boundaries include a unique mix of retail, restaurant, services, mixed use, multi-family units and other commercial and residential uses. District-funded activities, services and improvements will provide special benefits as described below to assessed parcels and an array of land uses within the District boundaries. The purpose of this District is to fund activities, services and improvements to assessed parcels within the District boundaries above and beyond what is currently funded by tax revenues or other funding sources. The City of Oakland does not currently provide many of these supplemental programs and services. The projected special benefit cost allocation of the District assessment revenues for the 20-year District term, assuming an 8% maximum annual assessment rate adjustment, is shown in the Table on page 14 of this Plan. Work Plan Details: The special benefits to be provided by the LDCBD are all designed to contribute to the cohesive commercial, mixed use and residential fabric and to promote economic development within the District. The assessed parcels in the LDCBD will specially benefit from the District activities and improvements by increasing commerce, creating business and property demands, and improving economic development. The District goals are: to improve sanitation, beautification, landscaping, and to attract new businesses and retain existing businesses, and ultimately to increase commerce and improve the economic viability of each assessed parcel.
12 YEAR 1 RENEWED AND EXPANDED BUDGET (ASSESSMENT REVENUES/SPECIAL BENEFIT COSTS): Special Benefit Budget Category Analysis: The Management District Plan gives the property owners greater flexibility in determining the type and frequency of special benefits that will be annually allocated. Services that are needed one year may not be needed the next. funding are created and divided into four broad categories. 1. CIVIL SIDEWALKS/SAFETY AND CLEANLINESS/BEAUTIFICATION 40% Examples of this category of special benefit services and costs may include, but are not limited to: Regular sidewalk and gutter sweeping Regular sidewalk power washing Private security or OPD overtime officers, and homeless outreach workers Personnel to manage in-house or contracted maintenance and/or security teams Beautification of the district Enhanced trash emptying (over and above city services) Timely graffiti removal, within 72 hours as necessary Installation and maintenance of planters throughout the district Streetscape improvements for walkability 2. DISTRICT IDENTITY AND PLACEMAKING 30%Examples of this category of special benefit services and costs may include, but are not limited to: Branding of the Laurel District so a positive image is promoted to the public-at-large and surrounding residents Web site and merchant directory maintenance and updates Business attraction Social media, public relations Enhancing the current holiday and seasonal decorations Banner programs Public art displays Public space design and improvements Events and programming to increase foot traffic and district awareness 3. ADMINISTRATION/PROGRAM MANAGEMENT- 25% Examples of this category of special benefit services and costs may include, but is not limited to: Staff and administrative costs, contracted or in-house Business and property owner support services and advocacy Directors and Officers and General Liability Insurance Government and public relations Office related expenses, rent Financial reporting and accounting Compliance
13 Legal work Grant writing 4. CONTINGENCY/CITY AND COUNTY FEES/RESERVE 5% Examples of this category of special benefit services and costs include, but is not limited to: Delinquencies, City/County fees Contingency The categories of services and their percentages represent the service plan the District property owners will be voting on when the District comes up for a mail ballot, in the Spring of 2026. Proposed First Year Laurel District Community Benefit District Budget - 2026 Category of Services Percentage of budget 1st Year Allocation (rounded off) Civil Sidewalks/Safety and Cleanliness 40% $102,000 District Identity and Placemaking 30% $ 77,000 Administration 25% $ 64,000 Contingency/Reserve 5% $ 13,150 Total 1st year Budget 100% $ 256,150 Program and Activity Budget: Each identified assessed parcel within the LDCBD will be assessed the full amount of the proportionate special benefit conferred upon it based on the level of District funded services, activities and improvements provided. The projected District special benefit (assessment) cost allocation budget for Year 1 is shown in the Table above. The District shall adhere to the budget and Management District Plan during the term of the LDCBD. While some variation is permissible to account for unexpected circumstances, the funding allocated to each funding category expressed as a percentage of the total budget, shall not vary by Management District Plan. Any variation that exceeds 10% of the total budget shall be subject to review and approval by the District board and the City Council. Any surplus or unspent funds, per category, shall be accumulated year by year over the life of the LDCBD.
14 A 20-year projected LDCBD budget is shown in the following Table with 8% increase: YEAR 1-10 PROJECTED DISTRICT ASSESSMENT BUDGET SUMMARY (SPECIAL BENEFIT COSTS)Year Civil Sidewalks District Identity and Placemaking Administration Contingency Total % 40% 30% 25% 5% 100% 1 $ 102,000 $ 77,000 $ 64,000 $ 13,150 $ 256,150 2 $ 110,160 $ 83,160 $ 69,120 $ 14,202 $ 276,642 3 $ 118,973 $ 89,813 $ 74,650 $ 15,338 $ 298,773 4 $ 128,491 $ 96,998 $ 80,622 $ 16,565 $ 322,675 5 $ 138,770 $ 104,758 $ 87,071 $ 17,890 $ 348,489 6 $ 149,871 $ 113,138 $ 94,037 $ 19,322 $ 376,368 7 $ 161,861 $ 122,189 $ 101,560 $ 20,867 $ 406,478 8 $ 174,810 $ 131,964 $ 109,685 $ 22,537 $ 438,996 9 $ 188,795 $ 142,522 $ 118,460 $ 24,340 $ 474,116 10 $ 203,898 $ 153,923 $ 127,936 $ 26,287 $ 512,045 11 $ 220,210 $ 166,237 $ 138,171 $ 28,390 $ 553,009 12 $ 237,827 $ 179,536 $ 149,225 $ 30,661 $ 597,249 13 $ 256,853 $ 193,899 $ 161,163 $ 33,114 $ 645,029 14 $ 277,402 $ 209,411 $ 174,056 $ 35,763 $ 696,632 15 $ 299,594 $ 226,164 $ 187,980 $ 38,624 $ 752,362 16 $ 323,561 $ 244,257 $ 203,019 $ 41,714 $ 812,551 17 $ 349,446 $ 263,798 $ 219,260 $ 45,051 $ 877,555 18 $ 377,402 $ 284,901 $ 236,801 $ 48,655 $ 947,760 19 $ 407,594 $ 307,694 $ 255,745 $ 52,548 $ 1,023,580 20 $ 440,202 $ 332,309 $ 276,205 $ 56,751 $ 1,105,467 *Assumes 8% max assessment rate increase per year with no new buildings constructed. The Assessment Engineer (see (i.e., general benefits to assessed parcels within the District, the general public and surrounding parcels outside the LDCBD) of the renewed and expanded programs, services and improvements) represent 2 ½ % of the total benefits generated and in turn, 2 ½ % ($6,568) of the total adjusted costs of the LDCBD-funded improvements, activities and services provided. Total Year 1 adjusted costs are estimated at $262,718. General benefits are factored at 2 ½ % of the total adjusted costs (see Finding 2 in with special benefits set at 97.5%. Article XIII D Section 4(a) of the California Constitution limits the levy of property assessments to costs attributed to special benefits only. The 2 ½ % general benefit cost is computed to be $ 6,568 with a resultant 97.5% special benefit computed at $256,150. Based on current property data and land uses, this is the maximum amount of Year 1 revenue that can be derived from property assessments from the subject District. All general benefits will be funded from sources other than District assessments.
15 Year 1 Annual Revenue Generation - 2026 Special Benefit first year revenues (assessments) $ 256,150 General Benefit $6,568 Total First Year Budget $262,718 The renewed and expanded LDCBD assessment rates may increase annually for each individual parcel during the 20-year effective operating period not to exceed 8% per year, and not to exceed the reasonable cost of the proportional special benefits conferred on each assessed parcel. These rates will and of the Oakland City Council. Any accrued interest and delinquent payments will be expended within the budgeted categories. (Laurel District Association), which has managed the district effectively and efficiently since 2006, shall continue as the Owners Association and shall determine the percentage increase (ranging from 0-8%)to the annual assessment and the value of the special benefits conferred on each parcel each year. Director or staff shall communicate the annual increase to the City each year in which the District operates, Association and the City of Oakland. Bonds: No bonds are to be issued in conjunction with the renewed and expanded District. Pursuant to Section 36671 of the Streets and Highways Code, any funds remaining after the 20th year of operation will stay with the District upon renewal of the District or will be returned to owners if the District is not renewed in 2045. If the District is not renewed or is terminated, unexpended funds will be returned to the property owners in the same proportion in which they were collected. District assessments may be used to pay for the costs related to the renewal of the LDCBD at the time of renewal. Manner of Collection: Assessments for the County of Alameda Property Tax Year calendar year beginning January 1, 2026 and ending December 31, 2045, shall be collected at the same time and in the same manner as ad valorum taxes paid to the County of Alameda (Operation Years 2026 - 2045). The District assessments shall appear as a separate line item on the property tax bills issued by the Alameda County Tax Assessor.
16 IV. Renewed and Expanded Assessment Formula The LDCBD programs and services described in this Management District Plan will be funded through benefit assessments against real property in the LDCBD. Non-assessment revenues will fund the costs associated with general benefits conferred on assessed parcels within the District, the public at large and surrounding parcels outside of the LDCBD boundaries. The assessment formula has been developed to ensure that no parcel will be assessed an amount that exceeds the cost of the proportional special benefit that an assessed parcel derives from the activities, services, and improvements to be funded by the renewed and expanded assessments. The assessment rates are based on the anticipated benefit to be derived by each individual parcel within the LDCBD. lot size square footage , , and building square footage (Benefit unit . Based on the shape of the renewed and expanded LDCBD, as well as the nature of the District activities, services, and improvements, it is determined that all identified assessed properties will gain a direct and proportionate degree of special benefit based on the respective amount of lot size area, street frontage and building square footage. For the array of land uses within the District, the interactive application of lot size area, street frontage, and building square footage quantities are a common method of fairly and equitably spreading special benefit costs to parcels that receive District-funded services, activities, and improvements. Lot Size: is a direct measure of the current and future development capacity of each parcel and its corresponding impact or draw on District-funded activities. The targeted weight of this factor, land area, should generate approximately 46% of total first year District revenue. Street Frontage is a direct measure of the static utilization of each parcel and its corresponding impact or draw on District funded activities, many of which are linear in nature (i.e., Landscaping, Sanitation and Beautification). The targeted weight of this factor should generate approximately 36% of total District revenue. Building Square Footageis a direct measure of the current and future improvements to the land area of each parcel and its corresponding impact or draw on District funded activities. The targeted weight of this factor should generate approximately 18% of the total District revenue. Assessing for building square footage is an appropriate gauge of the impact of employees, visitors, shoppers, and clients on a specific parcel. Commercial Condominium (non-residential portion of mixed-use buildings) - Parcels Defined: buildings and assessed based on their actual building square footage, the footprint of land they cover or lot size of the commercial condominium, and the amount of direct primary street frontage on the exterior of the building.
17 Residential Condominium Unit Parcels Defined: Though there are currently less than 20 residential condominium units in the LDCBD, there will be more built in the next twenty years. When built, the building square footage will be defined as the livable building square footage within the walls of the condominium residential unit parcel. They are included in a special category to designate their unique special benefits relative to the other commercial parcels within the LDCBD. Unlike the other commercial parcels in the District, including commercially operated apartment buildings, residential condominium parcels are assessed for building square footage only, and are not assessed for linear frontage and lot square footage. These residential condominium individual parcels will be assessed for their building square footage only at the rate of $0.12 per square foot per year for the first year of the LDCBD, or possibly higher if assessments have been increased annually as provided in this plan and completed in future years. The rationale for assessing future residential condominiums only for the building square footage rate is provided below. Residential condominium parcels are assessed less than multi-unit, market rate apartment rental buildings due to special benefits required by each parcel as described below. The multi-unit apartment buildings are commercial properties in which the tenant and property owner have an economic relationship as opposed to residential condominium buildings where individual property owners obuildings can be bought or sold just as commercial buildings whereas residential condominium individual units are separately owned and must be individually bought and sold. Distinctions between residential apartment buildings with tenants and residential condominium building with individual parcel owners are explained as follows: The Davis Sterling Act establishes rules and regulations for residential condominium only have a possessory interest. Generally, residential condominium unit owners demonstrate greater care for their property and concerns about quality-of-life issues due to their investment in real estate. Residential owners have the right to vote on assessments in a Proposition 218 hearing, tenants do not have that right. Residential condominium owners are required to contribute to legally established Homeowners Associations to oversee building maintenance, tenants are not. Residential tenants may have their dwelling units sold or have their rent raised. The assessment methodology has been written to confer special benefits to future residential condominium individual assessed parcels since residential condominium owners have expectations about the care and maintenance of the building and its surroundings compared to the interest of residential tenants who have a possessory not an ownership interest.
18 Data generated from County records and validated by request of owner verification by mailLot Square Footage 780,764 Linear Frontage 10,152 Building Square Footage 374,558 Residential Condominiums Sq. Ft. 22,670 YEAR 1 PROJECTED LDCBD ASSESSMENT REVENUE Lot Sq. Ft. Assessment Linear Frontage Assessment Building Square Footage Assessment Residential Condo Total Revenue $117,115 $ 91,368 $ 44,945 $2,720 $256,150 % of Total 46% 36% 17.5% .05%100% The number of Benefit Units for each identified benefiting parcel within the renewed and expanded LDCBD was computed from data extracted from the Alameda County Assessor records and maps as well as property verification forms mailed out to each parcel owner in the renewed and expanded District. These data sources delineate current land uses, property areas and dimensions of record for each tax parcel. The assessment formula for the Renewed and expanded established LDCBD is as follows: Assessments = Land Area (Unit A) Sq Ft x Unit A Rate, plus Street Frontage (Unit B) Lin Ft x Unit B Rate, plus Building Square footage (Unit C) Sq ft x Unit C rate YEAR 1 Assessment Rates Lot Square Footage Assessment Unit A Linear Frontage Assessment Unit B Building Square Footage Assessment Unit C Residential Condominium Bldg. Square footage Assessment $ 0.15 per square foot $9.00 per linear foot $0.12 per square foot $.12 per square foot
19 Changes to Frontage, Building or Lot Parcel Size: Any size changes to the building or lot square footage will increase or decrease the assessment levied on that parcel from year-to-year. All three land adjustments including, but not limited to lot splits, consolidations, subdivisions, street dedications, and right-of-way setbacks shall have their assessment adjusted upon final City approval of such parcel adjustments. Other Future Development: Other than future maximum rates with the frontage, building or parcel size assessment methodology delineated in this report, per State law (Government Code Section 53750), future assessments may be adjusted for any given parcel if such an adjustment is attributable to events other than an increased rate or revised methodology, such as a change in the density, intensity, or nature of the use of land. Any change in assessment formula methodology or rates other than as described in this Plan would require a new Proposition 218 proceeding to approve any such changes. LDCBD 10-year Maximum Assessment Rates 8% Year Lot Square Foot Assessment Linear Frontage Assessment Building Square Footage Assessment Residential CondominiumY1 $ 0.150 $ 9.000 $ 0.120 $ 0.120 Y2 $ 0.162 $ 9.720 $ 0.130 $ 0.130 Y3 $ 0.175 $ 10.498 $ 0.140 $ 0.140 Y4 $ 0.189 $ 11.337 $ 0.151 $ 0.151 Y5 $ 0.204 $ 12.244 $ 0.163 $ 0.163 Y6 $ 0.220 $ 13.224 $ 0.176 $ 0.176 Y7 $ 0.238 $ 14.282 $ 0.190 $ 0.190 Y8 $ 0.257 $ 15.424 $ 0.206 $ 0.206 Y9 $ 0.278 $ 16.658 $ 0.222 $ 0.222 Y10 $ 0.300 $ 17.991 $ 0.240 $ 0.240 SAMPLE LDCBD FIRST YEAR ANNUAL ASSESSMENT CALCULATION EXAMPLE: A 5,000 sq. ft. lot with 50 linear feet of street frontage in The Laurel District, and a 2,500 square foot building Lot size square footage: 5,000 x $0.15 cents per square foot = $750.00 plus Linear Frontage: 50 linear feet x $9.00 per linear foot = $450.00 plus Building Square Footage 2,500 x $0.12 cents per square foot = $ 300.00 equals TOTAL YEAR 1 ASSESSMENT: $1,500.00 Cost Per Month: $125.00 Cost Per Day: $4.11 Residential Condominium Assessments in the LDCBD:
20 Actual Building square footage of the Residential Condo x $0.12 per year x condobuilding square footage = Annual Assessment Example, a 1,000 square foot residential condominium x $.12 = $ 120.00 per year or TOTAL YEAR 1 ASSESSMENT: $120.00 Cost Per Month: $10.00 Cost Per Day: $0.0328 V. Publicly Owned Parcels Proposition 218 states parcels within a District that are owned or used by any agency, the State of California or the United States shall not be exempt from assessment unless the agency can demonstrate by clear and convincing evidence that those publicly owned parcels in fact There are no publicly owned parcels within the District, all of which are identified as assessable and for which special benefit services will be provided. VI. LDCBD GOVERNANCE The governance or management of a LDCBD requires private nonprofit entity under contract with the City to carry out the LDCBD improvements, maintenance and activities in the Management District Plan. The statute and enabling ordinance require that the owners associations carry out specific additional functions. This includes preparation of an annual report to the City Council on the LDCBD activities for the past fiscal year and those renewed and expanded for the next fiscal year. The oassociation may also recommend to the City Council, from time to time, changes to the LDCBD boundaries, assessment formula, or LDCBD activities, services, and improvements. These changes are all subject to public notification and, in some cases, petition/balloting requirements. The LDCBD is currently managed by its Owners Association, Laurel District Association, (LDA), which has managed the District since 2006. The Board of the LDA shall serve as volunteers on the Board of Directors which shall enter into a disbursement agreement with the City to administer the District services on a day-to-day basis. California Brown Act open meetings and records provisions as well as public records statutes. Disestablishment: Under the current enabling ordinance, and Section 36600 of the California Streets and Highway Code, if the CBD or PBID is not providing special benefits as per this plan, the property owners may initiate a disestablishment of the District annually, which, if the required petition threshold is met, may trigger a balloting process to disestablish the District.
21 VII. RENEWED AND EXPANDED RULES AND REGULATION APPLIED TO THE DISTRICT There are no specific rules or regulations applied to the LDCBD or its Owners Association. VIII. IMPLEMENTATION TIMETABLE The table below provides a rough timeline for the establishment of the LDCBD. Task Estimated Timeline Submittal of the renewed and expanded Management District Plan to City staff Early November 2024 Mail out petitions and summary of management plan to all property owners December 2024 Submittal of the E Late December 2024 Work on petition drive, holding public meetings as needed December January 2025 Submit 30% threshold of weighted petitions to the City January February 2025 The Oakland City Council adopts resolution of intention expressing its intention to form the LDCBD. March April 2025 Ballots mailed out by City Clerk including package of materials and public hearing date April May 2025 Public Hearing held, testimony given, ballots opened and counted by City Clerk; if there is no majority protest, Council adopts a resolution of formation May June 2025 First assessments from the renewed and expanded LDCBD January 2026
22 APPENDIX 1 YR 1 ASSESSMENT ROLLAPN Annual Assessment 028 -0952-014-00 $3,795.45 028 -0955-002-01 $1,434.00 028 -0955-003-04 $4,598.52 028 -0955-006-05 $2,252.37 028 -0956-001-00 $2,491.20 028 -0956-002-00 $755.40 028 -0956-006-04 $4,305.45 028 -0956-013-03 $3,799.80 028 -0956-025-00 $113.16 028 -0956-026-00 $129.96 028 -0956-027-00 $115.56 028 -0956-028-00 $89.64 028 -0956-029-00 $110.88 028 -0956-030-00 $129.96 028 -0956-031-00 $115.56 028 -0957-012-00 $2,076.75 028 -0957-034-00 $189.24 028 -0957-035-00 $182.76 028 -0957-036-00 $182.76 028 -0957-037-00 $182.76 028 -0957-038-00 $182.76 028 -0957-039-00 $182.76 028 -0957-040-00 $1,770.39 028 -0957-041-00 $190.32 028 -0957-042-00 $199.32 028 -0957-043-00 $240.24 028 -0957-044-00 $182.76 030 -1898-008-01 $4,867.92 030 -1898-011-00 $1,112.76 030 -1898-012-00 $1,325.82 030 -1898-013-00 $1,313.25 030 -1898-014-00 $1,231.20 030 -1903-011-00 $1,912.29 030 -1903-012-01 $2,349.51 030 -1903-014-00 $342.00 030 -1903-015-01 $3,398.10 030 -1907-012-00 $1,892.01 030 -1907-013-00 $924.15
23 030 -1907-014-00 $1,243.95 030 -1907-015-00 $1,230.45 030 -1907-016-00 $1,198.05 030 -1907-017-00 $3,160.56 030 -1912-012-00 $2,030.10 030 -1912-013-00 $900.00 030 -1912-014-00 $1,404.00 030 -1912-015-00 $1,611.48 030 -1912-019-01 $6,848.43 030 -1917-012-00 $1,768.05 030 -1917-013-00$903.27 030 -1917-014-00 $1,249.14 030 -1917-015-00 $1,249.14 030 -1917-016-00 $798.90 030 -1917-017-00 $1,121.04 030 -1917-018-00 $2,721.87 030 -1980-001-00 $4,465.20 030 -1980-020-01 $4,784.25 030 -1980-021-00 $306.00 030 -1980-022-00 $315.00 030 -1980-023-00 $288.00 030 -1980-055-00 $4,077.66 030 -1980-057-00 $3,438.00 030 -1980-058-01 $3,181.35 030 -1980-059-00 $11,251.44 030 -1980-060-00 $1,617.60 030 -1980-061-00 $1,515.96 030 -1980-062-00 $1,140.00 030 -1980-063-00 $2,391.60 030 -1980-132-01 $3,480.00 030 -1980-134-02 $2,236.95 030 -1980-135-00 $1,296.00 030 -1980-136-00 $1,260.00 030 -1980-137-00 $1,351.74 030 -1980-138-00 $1,283.34 030 -1980-139-00 $1,920.00 030 -1980-140-00 $1,632.00 030 -1980-141-00 $1,468.80 030 -1980-142-02 $2,274.00 030 -1980-144-00 $2,160.00 030 -1980-163-00 $1,127.25 030 -1980-164-00 $4,195.71 030 -1981-059-01 $2,100.00 030 -1981-060-00 $1,497.00 030 -1981-061-00 $1,250.16 030 -1981-063-01 $5,100.96 030 -1981-064-00 $17,658.96 030 -1981-065-00 $870.45
24 030 -1981-066-00 $1,201.05 030 -1981-067-00 $854.25 030 -1981-068-00 $870.00 030 -1981-069-00 $600.45 030 -1981-070-00 $894.96 030 -1981-091-00 $2,274.84 030 -1981-092-00 $819.90 030 -1981-093-00 $2,799.42 030 -1981-094-00 $2,490.93 030 -1981-097-00 $3,730.50 030 -1981-098-01$3,378.66 030 -1981-099-00 $2,093.64 030 -1981-113-00 $2,310.45 030 -1981-114-00 $2,458.86 030 -1981-115-00 $894.54 030 -1981-116-00 $2,238.60 030 -1981-117-00 $3,591.27 030 -1981-118-00 $1,200.00 030 -1981-119-00 $1,434.30 030 -1981-128-00 $1,668.12 030 -1981-129-00 $2,880.00 030 -1981-130-02 $2,901.93 030 -1981-131-00 $1,632.15 030 -1981-132-00 $1,176.00 030 -1981-133-00 $3,379.50 030 -1981-135-00 $4,294.50 030 -1981-150-01 $4,532.16 030 -1981-151-00 $1,447.17 030 -1981-152-00 $3,061.65 030 -1981-154-01 $2,079.00 030 -1981-155-00 $1,000.26 030 -1981-157-00 $4,936.53 030 -1982-118-01 $3,881.22 030 -1982-123-01 $8,100.60 TOTAL $256,149.96 0 RENEWED & EXPANDED LAUREL DISTRICT COMMUNITY BENEFIT DISTRICT Being Renewed for a 20-year Term Pursuant to Business Improvement Management District Ordinance of 1999 # 12190, Under Municipal Code Chapter 4.48 Prepared by Edward V. Henning California Registered Professional Engineer # 26549 Edward Henning & Associates December 16, 2024 v 1.1
LAUREL DISTRICT CBD
1 To Whom It May Concern: I hereby certify to the best of my professional knowledge and experience that each of the identified benefiting properties located within the proposed Laurel District Community Benefit District ("LDCBD") being renewed and expanded for a 20 year term will receive a special benefit over and above the benefits conferred on the public at large and that the amount of the proposed assessment is proportional to, and no greater than the benefits conferred on each respective property.
Introduction California Constitution to support the benefit property assessments to be levied within the proposed LDCBD in the City of Oakland, California being renewed and expanded for a 20 year term. The discussion amounts levied and special benefits conferred on real properties within the proposed LDCBD.
December 16, 2024 3/31/26
LAUREL DISTRICT CBD
2 Background The LDCBD is a is a property-based benefit assessment type district being renewed and expanded for a 20 year term pursuant to Business Improvement Management District Ordinance of 1999 # 12190, Under Municipal Code Chapter 4.48 , modeled after Section 36600 et seq. of the California Streets and Highways Code (as amended), also known as the Property and Business Improvement District Law of property and business improvement PBID , district program costs are to be distributed amongst all identified benefiting properties based on the proportionate amount of special program benefit each property is projected to derive from the assessments levied. Only those properties expected to derive special benefits from CBD funded programs and activities may be assessed and only in an amount proportionate to the special benefits expected to be conferred on each assessed property. Supplemental Article XIIID Section 4(b) California Constitution Procedures and Requirements Proposition 218, approved by the voters of California in November of 1996, adds a supplemental array of procedures and requirements to be carried out prior to levying a property-based assessment like the LDCBD. These requirements are in addition to requirements imposed by State and local assessment California Constitution (hereinafter Article XIIID). Since Article XIIID provisions will affect all subsequent calculations to be made in the final assessment formula for the LDCBD, these supplemental requirements will be taken into account. The key provisions of Article XIIID along with a description of how the LDCBD complies with each of these provisions are delineated below. (Note: All section references below pertain to Article XIII D of the California Constitution):
LAUREL DISTRICT CBD
3 Finding 1. Boundaries The renewed and expanded district is to be named the Laurel District Community Benefit District (LDCBD). The proposed renewed and expanded LDCBD is located in the Laurel Business District of Oakland and runs one parcel deep along both sides of MacArthur Boulevard from just south of High Street north to Midvale Avenue and along 35th Avenue from just east of MacArthur Boulevard west to the 580 Freeway. The LDCBD encompasses about 20 blocks and includes 120 parcels, all of which are assessed. See the LDCBD map in Appendix 2 of this Report. District Boundary Description The LDCBD boundaries are comprised of commercial and mixed-use zoned parcels with an array of commercial (retail, service, banks, restaurants/bars/cafes) as well as multi-family rental and condominium residential land uses. The LDCBD is surrounded almost entirely by single family and other lower density residential uses that would not benefit from the LDCBD programs and services and thus, are not included in the LDCBD. Northern Boundary: The two parcels at the southeastern and southwestern corners of the intersection of Midvale Avenue and MacArthur Blvd. (APNs 28-956-01 and 28-957-12) Southern Boundary: The two parcels at the southwestern and southeastern corners of the intersection of MacArthur Blvd. and High Street (APNs 30-1982-123-1 and 30-1982-118-1). Eastern Boundary: Starting at the parcel at the southeastern corner of the intersection of Midvale Avenue and MacArthur Blvd (APN 28-957-12), running southward to include all parcels on the east side of MacArthur from Midvale Avenue to the parcel at the southeastern corner of the intersection of MacArthur Blvd and High Street (APN 30-1982-118-1). The eastern boundary will also include the parcel directly to the east of the parcel at the southeastern corner of the intersection of MacArthur and 35th Avenue, (APN 28-957-34-44). Western Boundary: Starting at the parcel at the southwestern intersection of Midvale Avenue and MacArthur, (APN 28-956-01) running southward on 35th Avenue to include all parcels on the west side of MacArthur Blvd up to 35th Avenue, continuing westward including the parcels from 35th Avenue and MacArthur on the west side of 35th Avenue ending at the 580 freeway, including the garden parcel APN 28-952-14. Crossing the street to APN 30-1980-01 at the 580 and 35th Avenue and continuing eastward to the southwestern intersection of 35th Avenue and MacArthur, continuing southward including the parcels on the west side of MacArthur terminating at the parcel at the southwestern intersection of High Street and MacArthur, (APN 30-1982-123-1) All identified parcels within the above-described boundaries and shall be assessed to fund supplemental special benefit programs, services and improvements as outlined in the Management District Plan (the and in this . All LDCBD funded services, programs and improvements provided within the above-described boundaries shall confer special benefit to identified assessed parcels inside the LDCBD boundaries and none will be provided outside of the
LAUREL DISTRICT CBD
4 LDCBD. Each assessed parcel within the LDCBD will proportionately specially benefit from the LDCBD funded Civil Sidewalks/ Safety/Cleanliness, District Identity-Placemaking, Administration and Contingency as described in mbeginning on page 11 of this Report. These services, programs and improvements are intended to improve commerce, employment, rents, livability and commercial and residential occupancy rates of parcels and businesses within the LDCBD by reducing litter and debris, deterring crime, marketing the available goods and services and installing beautification elements, each considered necessary in a competitive properly managed mixed-use business district. All LDCBD funded services programs and improvements are considered supplemental, above normal base level services provided by the City of Oakland and are only provided for the special benefit of assessed parcels within the boundaries of the LDCBD. A list of all parcels included in the proposed LDCBD is shown as Appendix 1, attached to this Report with their respective Alameda County assessor parcel number. The boundary of the proposed LDCBD and parcels within it are shown on the map of the LDCBD attached as Appendix 2 to this Report. . Finding 2. on parcel(s). Only special benefits are assessable. QUANTITATIVE BENEFIT ANALYSIS As stipulated in Article XIIID, assessment district programs and activities confer a combination of general and special benefits, but the only program benefits that can be funded through property assessments are benefit to the public in general resulting from the improvement, activity, or service to be provided by the Article XIIID means a distinct benefit over and above general benefits conferred on real property located in the district. The property uses within the boundaries of the LDCBD that will receive special benefits from LDCBD funded programs and services are currently an array of commercial retailers, service stores, banks, a mix of restaurants/bars/cafes and residential rental units and condominiums. Services, programs and improvements provided and funded by the LDCBD are primarily designed to provide special benefits as described below to identified assessed parcels and the array of land uses within the boundaries of the LDCBD. The proposed LDCBD programs, improvements and services and Year 1 budget allocation are as follows: Year 1 - LDCBD Special Benefit Cost Allocations (Assessment Revenue Only) Civil Sidewalks-Safety-Cleanliness District Identity - Placemaking Administration Contingency TOTAL 39.8204% 30.0605% 24.9854% 5.1337% 100.00% $102,000 $77,000 $64,000 $13,150 $256,150 Assessed parcels are conferred proportionate special benefits from all LDCBD funded programs, services and improvements which are intended to attract more customers, users, visitors, employees, tenants and
LAUREL DISTRICT CBD
5 investors. LDCBD programs, services and improvements are designed to increase business volumes, sales transactions, occupancies, livability and rental income. These programs, services and improvements are designed to improve commerce and aesthetic appeal for owners, tenants, patrons, residents, visitors and employees of these parcels within the LDCBD by reducing litter and debris, deterring crime, marketing the available goods and services and installing beautification elements, each considered necessary in a competitive properly managed mixed-use business district. These benefits are particular and distinct to each and every identified and assessed parcel within the LDCBD and are not provided to non-assessed parcels outside of the LDCBD. These programs, services and improvements will only be provided to each individual assessed parcel within the LDCBD boundaries and, in turn, confer proportionate special benefits to each assessed parcel. In the case of the LDCBD, the very nature of the purpose of this CBD is to fund supplemental programs, services and improvements to assessed parcels within the LDCBD boundaries above and beyond what is being currently funded either via normal tax supported methods or other funding sources. All benefits derived from the assessments to be levied on assessed parcels within the LDCBD are for services, programs and improvements directly and specially benefiting each individual assessed parcel within the LDCBD. No LDCBD funded services, activities or programs will be provided outside of the LDCBD boundaries. While every attempt is made to provide LDCBD services and programs to confer special benefits only to those identified assessed parcels within the LDCBD, Article XIIID stipulates that general benefits exist (either by design or unintentional) in all assessment districts and that a portion of the program costs must be considered attributable to general benefits and assigned a value. General benefits cannot be funded by assessment revenues. Empirical assessment engineering analyses throughout California have found that general benefits within a given assessment district tend to range from 2-6% of the total costs. A majority of assessment districts in California for which this Assessment Engineer has provided assessment engineering services in conformance with Article XIIID have used the composite district overlay determinant method of computing general benefits which will be used for the LDCBD. This method of computing the value of general benefit involves a composite of three distinct types of general benefit general benefit to assessed parcels within the LDCBD, general benefit to the public at large within the LDCBD and general benefit to parcels outside the LDCBD. General Benefit Assessed Parcels within the LDCBD LDCBD funded programs are narrowly designed and carefully implemented to specially benefit the assessed LDCBD parcels and are only provided for the special benefit to each and every assessed parcel within the LDCBD. It is the opinion of this Engineer, based on over 30 years of professional assessment engineering experience, that nearly 100% of benefits conferred on the 120 assessed parcels within the LDCBD are distinct and special but in the case of the LDCBD, it is projected that there are 0.25% general benefits conferred on these parcels. This high ratio of special benefits to general benefits is because the LDCBD funded programs and services are specially geared to the unique needs of each parcel within the LDCBD and are directed specially only to these parcels within the LDCBD. This concept is further reinforced by the proportionality of special benefits conferred on each parcel within the LDCBD as determined by the special benefit assessment formula as it is applied to the unique and varying property characteristics of each parcel. The computed 0.25% general benefit value on the 120 assessed parcels
LAUREL DISTRICT CBD
6 within the LDCBD equates to $640 or (.25% x $256,150). General Benefits Outside Parcels While LDCBD programs and services will not be provided directly to parcels outside the LDCBD boundaries, it is reasonable to conclude that LDCBD services may confer an indirect general benefit on parcels adjacent to the LDCBD boundaries. An inventory of the LDCBD boundaries finds that the LDCBD is immediately surrounded by 111 parcels. Of these, 1 is a commercial zoned parcel with commercial uses, 107 are residentially zoned parcels with residential uses and 3 are public or non-profit owned parcels with public or non-profit uses. The 111 parcels directly outside the LDCBD boundaries can reasonably be assumed to receive some indirect general benefit as a result of LDCBD funded programs, services and improvements. Based on over 30 years of assessment engineering experience, it is the opinion of this Engineer that a benefit factor of 1.0 be attributed to the 120 assessed parcels within the LDCBD, a benefit factor of 0.05 be attributed to general benefits conferred on the 1 commercial parcel located adjacent to or across the street from assessed parcels within the LDCBD, a benefit factor of 0.015 be attributed to general benefits conferred on the 107 residential parcels and uses located adjacent to or across the street from assessed parcels within the LDCBD and a benefit factor of 0.015 be attributed to general benefits conferred on the 3 public or non-profit owned parcels and uses located adjacent to or across the street from assessed parcels within the LDCBD. The cumulative dollar value of this general benefit type equates to $3,627 ($107 + $3,520) as delineated in the following Table: Parcel Type Quantity Benefit Factor Benefit Units Benefit Percent Benefit Value Assessed Parcels Inside BID 120 1.000 120.00 98.6031% $256,150 Commercial Perimeter Parcels Outside BID 1 0.050 0.05 0.0411% $107 Other Perimeter Parcels Outside BID 110 0.015 1.65 1.3558% $3,520 TOTAL 121.70 100.00% $259,777 General Benefit - Public At Large While the LDCBD funded programs are narrowly designed and carefully implemented to specially benefit the assessed LDCBD parcels and are only provided for the special benefit to each and every assessed parcel within the LDCBD, these programs also provide general benefits to the public at large within the LDCBD. For the proposed LDCBD activities, assessment engineering experience in California has found that generally over 95% of people moving about within similar district boundaries are engaged in business related to assessed parcels and businesses contained located within Based on experience curves and the nature of the proposed LDCBD funded programs and over 30 years of assessment engineering experience, it is the opinion of this Assessment Engineer that districtwide general benefit factors for each of the LDCBD funded special benefit program element costs that provide a general benefit to the public at large are as shown in the Table below. These factors are applied to each program element cost in order to compute the dollar and percent value of districtwide general benefits to the public at large. The total dollar value of this general benefit type, public at large, equates to $2,301 as
LAUREL DISTRICT CBD
7 delineated in the following Table: A B C EProgram Element Dollar Allocation General Benefit Percent General Benefit Factor General Benefit Value (A x C)Civil Sidewalks-Safety-Cleanliness $102,000 1.50% 0.0150 $1,530 District Identity-Placemaking $77,000 0.50% 0.0050 $385 Administration $64,000 0.50% 0.0050 $320 Contingency $13,150 0.50% 0.0050 $66 Total $256,150 $2,301 Composite General Benefit Based on the general benefit values delineated in the three sections above, the total value of districtwide general benefits conferred on assessed parcels within the LDCBD, on parcels outside the LDCBD, and on the public at large, equates to $6,568 ($640 + $3,627 + $2,301) or 2.5% of the total Year 1 program costs. This leaves a value of 97.5% assigned to special benefit related costs. The districtwide general benefit value of $6,568 when added to the special benefit value of $256,150 (Year 1 2026 assessments) equates to a total Year 1 2026 program cost of $262,718. Remaining costs that are attributed to districtwide general benefits will need to be derived from other non-assessment sources such as grants, underwritings, event proceeds and sponsorships. The program special benefit related cost allocations of the LDCBD assessment revenues for Year 1 2026 are shown in the Table on page 13 of this Report. The projected program special benefit related cost allocations of the LDCBD assessment revenues for Years 1-20 of the LDCBD, assuming an 8% maximum annual assessment rate increase, are shown in the Table on page 14 of this Report. A breakdown of projected special and districtwide general benefits for Years 1-20 for each program element is shown in the following Table: Year 1 - 2026 Special + Districtwide General Benefits YR PROGRAM CATEGORYSPECIAL BENEFIT ASSESSMENT COSTS GENERAL BENEFIT NON-ASSESSMENT COSTS TOTAL ADJUSTED COSTS % OF TOTAL 1 Civil Sidewalks-Safety-Cleanliness $102,000 $2,616 $104,616 39.8204% District Identity - Placemaking $77,000 $1,974 $78,974 30.0605% Administration $64,000 $1,641 $65,641 24.9854% Contingency $13,150 $337 $13,4875.1337% Total $256,150 $6,568 $262,718 100.0000% 2 Civil Sidewalks-Safety-Cleanliness $110,160 $2,825 $112,985 39.8204% District Identity & Placemaking $83,160 $2,132 $85,292 30.0605%
LAUREL DISTRICT CBD
8 Administration $69,120 $1,772 $70,892 24.9854% Contingency $14,202 $364 $14,5665.1337% Total $276,642 $7,093 $283,735 100.0000% 3 Civil Sidewalks-Safety-Cleanliness $118,973 $3,051 $122,024 39.8204% District Identity & Placemaking $89,813 $2,303 $92,116 30.0605% Administration $74,650 $1,914 $76,564 24.9854% Contingency $15,338 $393 $15,7315.1337% Total $298,774 $7,661 $306,435 100.0000% 4 Civil Sidewalks-Safety-Cleanliness $128,491 $3,295 $131,786 39.8204% District Identity & Placemaking $96,998 $2,487 $99,485 30.0605% Administration $80,622 $2,067 $82,689 24.9854% Contingency $16,565 $424 $16,9895.1337% Total $322,676 $8,273 $330,949 100.0000% 5 Civil Sidewalks-Safety-Cleanliness $138,770 $3,559 $142,329 39.8204% District Identity & Placemaking $104,758 $2,686 $107,444 30.0605% Administration $87,072 $2,232 $89,304 24.9854% Contingency $17,890 $458 $18,3485.1337% Total $348,490 $8,935 $357,425 100.0000% 6 Civil Sidewalks-Safety-Cleanliness $149,872 $3,844 $153,716 39.8204% District Identity & Placemaking $113,139 $2,901 $116,040 30.0605% Administration $94,038 $2,411 $96,449 24.9854% Contingency $19,321 $495 $19,8165.1337% Total $376,370 $9,651 $386,021 100.0000% 7 Civil Sidewalks-Safety-Cleanliness $161,862 $4,152 $166,01439.8204% District Identity & Placemaking $122,190 $3,133 $125,323 30.0605% Administration $101,561 $2,604 $104,165 24.9854% Contingency $20,867 $535 $21,4025.1337% Total $406,480 $10,424 $416,904 100.0000% 8 Civil Sidewalks-Safety-Cleanliness $174,811 $4,484 $179,295 39.8204% District Identity & Placemaking $131,965 $3,384 $135,34930.0605% Administration $109,686 $2,812 $112,498 24.9854% Contingency $22,536 $578 $23,1145.1337% Total $438,998 $11,258 $450,256 100.0000% 9 Civil Sidewalks-Safety-Cleanliness $188,796 $4,843 $193,639 39.8204% District Identity & Placemaking $142,522 $3,655 $146,177 30.0605%
LAUREL DISTRICT CBD
9 Administration $118,461 $3,037 $121,49824.9854% Contingency $24,339 $624 $24,9635.1337% Total $474,118 $12,159 $486,277 100.0000% 10 Civil Sidewalks-Safety-Cleanliness $203,900 $5,230 $209,130 39.8204% District Identity & Placemaking $153,924 $3,947 $157,871 30.0605% Administration $127,938 $3,280 $131,218 24.9854% Contingency $26,286 $674 $26,9605.1337% Total $512,048 $13,131 $525,179 100.0000% 11 Civil Sidewalks-Safety-Cleanliness $220,212 $5,648 $225,860 39.8204% District Identity & Placemaking $166,238 $4,263 $170,501 30.0605% Administration $138,173 $3,542 $141,715 24.9854% Contingency $28,389 $728 $29,1175.1337% Total $553,012 $14,181 $567,193 100.0000% 12 Civil Sidewalks-Safety-Cleanliness $237,829 $6,100 $243,929 39.8204% District Identity & Placemaking $179,537 $4,604 $184,141 30.0605% Administration $149,227 $3,825 $153,052 24.9854% Contingency $30,660 $786 $31,4465.1337% Total $597,253 $15,315 $612,568 100.0000% 13 Civil Sidewalks-Safety-Cleanliness $256,855 $6,588 $263,443 39.8204% District Identity & Placemaking $193,900 $4,972 $198,872 30.0605% Administration $161,165 $4,131 $165,296 24.9854% Contingency $33,113 $849 $33,9625.1337% Total $645,033 $16,540 $661,573 100.0000% 14 Civil Sidewalks-Safety-Cleanliness $277,403 $7,115 $284,518 39.8204% District Identity & Placemaking $209,412 $5,370 $214,782 30.0605% Administration $174,058 $4,461 $178,519 24.9854% Contingency $35,762 $917 $36,6795.1337% Total $696,635 $17,863 $714,498 100.0000% 15 Civil Sidewalks-Safety-Cleanliness $299,595 $7,684 $307,279 39.8204% District Identity & Placemaking $226,165 $5,800 $231,965 30.0605% Administration $187,983 $4,818 $192,801 24.9854% Contingency $38,623 $990 $39,6135.1337% Total $752,366 $19,292 $771,658 100.0000% 16 Civil Sidewalks-Safety-Cleanliness $323,563 $8,299 $331,862 39.8204% District Identity & Placemaking $244,258 $6,264 $250,522 30.0605%
LAUREL DISTRICT CBD
10 Administration $203,022 $5,203 $208,225 24.9854% Contingency $41,713 $1,069 $42,7825.1337% Total $812,556 $20,835 $833,391 100.0000% 17 Civil Sidewalks-Safety-Cleanliness $349,448 $8,963 $358,411 39.8204% District Identity & Placemaking $263,799 $6,765 $270,564 30.0605% Administration $219,264 $5,619 $224,883 24.9854% Contingency $45,050 $1,155 $46,2055.1337% Total $877,561 $22,502 $900,063 100.0000% 18 Civil Sidewalks-Safety-Cleanliness $377,404 $9,680 $387,084 39.8204% District Identity & Placemaking $284,903 $7,306 $292,209 30.0605% Administration $236,805 $6,069 $242,874 24.9854% Contingency $48,654 $1,247 $49,9015.1337% Total $947,766 $24,302 $972,068 100.0000% 19 Civil Sidewalks-Safety-Cleanliness $407,596 $10,454 $418,050 39.8204% District Identity & Placemaking $307,695 $7,890 $315,585 30.0605% Administration $255,749 $6,555 $262,304 24.9854% Contingency $52,546 $1,347 $53,8935.1337% Total $1,023,586 $26,246 $1,049,832 100.0000% 20 Civil Sidewalks-Safety-Cleanliness $440,204 $11,290 $451,494 39.8204% District Identity & Placemaking $332,311 $8,521 $340,832 30.0605% Administration $276,209 $7,079 $283,288 24.9854% Contingency $56,750 $1,455 $58,2055.1337% Total $1,105,474 $28,345 $1,133,819 100.0000% LDCBD WORK PLAN Overview The services, programs and improvements to be funded by the LDCBD include Civil Sidewalks-Safety-Cleanliness, District Identity-Placemaking, Administration and Contingency. The property uses within the boundaries of the LDCBD that will receive special benefits from LDCBD funded programs, services and improvements are currently an array of commercial retailers, service stores, banks, financial centers, a mix of restaurants/bars/cafes and multi-family residential and condominium units. Services, programs and improvements provided and funded by the LDCBD are primarily designed to provide special benefits as described below to identified assessed parcels within the boundaries of the LDCBD. These special benefits are particular and distinct to each and every identified assessed parcel within the LDCBD and are not provided to non-assessed parcels outside of the LDCBD. These programs, services and improvements will only be provided to each individual assessed parcel within the LDCBD boundaries
LAUREL DISTRICT CBD
11 The very nature of the purpose of the LDCBD is to fund supplemental programs, services and improvements to assessed parcels within the LDCBD boundaries above and beyond the base line services provided by the City of Oakland. The City of Oakland does not provide these supplemental programs and services. All benefits derived from the assessments to be levied on assessed parcels within the LDCBD are for services, programs and improvements directly benefiting each individual assessed parcel within the LDCBD. No LDCBD funded services, activities or programs will be provided outside of the LDCBD boundaries. The program special benefit cost allocations of the LDCBD assessment revenues for Year 1-2026 are shown in the Table on page 13 of this Report. The projected program special benefit cost allocations of the LDCBD assessment revenues for the 20-year term of the LDCBD, assuming an 8% maximum annual assessment rate increase, are shown in the Table on page 14 of this Report. WORK PLAN DETAILS The services to be provided by the LDCBD (i.e. Civil Sidewalks-Safety-Cleanliness, District Identity-Placemaking, Administration and Contingency) are all designed to contribute to the cohesive urban fabric to ensure economic success and vitality of each assessed parcel within the proposed LDCBD. The assessed parcels in the LDCBD will specially benefit from the LDCBD programs in the form of increasing commerce and improving economic success, livability and vitality through meeting the LDCBD Goals: to improve cleanliness, safety, beautification, landscaping and to attract and retain businesses and services, generate more pedestrian and visitor traffic and to increase commerce and improve the economic viability of each individual assessed parcel. Assessed parcels are conferred proportionate special benefits from all LDCBD funded programs, services and improvements which are intended to attract more customers, users, visitors, employees, tenants, residents and investors. LDCBD programs, services and improvements are designed to increase business volumes, sales transactions, occupancies and rental income. These programs, services and improvements are designed to improve commerce, livability and aesthetic appeal for owners, tenants, patrons, residents, visitors and employees of these parcels within the LDCBD by reducing litter and debris, deterring crime, marketing the available goods and services and installing beautification elements, each considered necessary in a competitive properly managed business district. These benefits are particular and distinct to each and every identified and assessed parcel within the LDCBD and are not provided to non-assessed parcels outside of the LDCBD. These programs, services and improvements will only be provided to each individual assessed parcel within the LDCBD boundaries The following programs, services and improvements are proposed by the LDCBD to specially benefit each and every individually assessed parcel within the LDCBD boundaries. LDCBD services, programs and improvements will not be provided to parcels outside the LDCBD boundary. 1. CIVIL SIDEWALKS/SAFETY AND CLEANLINESS/BEAUTIFICATION 40% Examples of this category of special benefit services and costs may include, but are not limited to: Regular sidewalk and gutter sweeping
LAUREL DISTRICT CBD
12 Regular sidewalk power washing Private security or OPD overtime officers, and homeless outreach workers Personnel to manage in-house or contracted maintenance and/or security teams Beautification of the district Enhanced trash emptying (over and above city services) Timely graffiti removal, within 72 hours as necessary Installation and maintenance of planters throughout the district Streetscape improvements for walkability 2. DISTRICT IDENTITY AND PLACEMAKING 30% Examples of this category of special benefit services and costs may include, but are not limited to: Branding of the Laurel District so a positive image is promoted to the public-at-large and surrounding residents Web site and merchant directory maintenance and updates Business attraction Social media, public relations Enhancing the current holiday and seasonal decorations Banner programs Public art displays Public space design and improvements Events and programming to increase foot traffic and district awareness 3. ADMINISTRATION/PROGRAM MANAGEMENT- 25% Examples of this category of special benefit services and costs may include, but is not limited to: Staff and administrative costs, contracted or in-house Business and property owner support services and advocacy Directors and Officers and General Liability Insurance Government and public relations Office related expenses, rent Financial reporting and accounting Compliance Legal work Grant writing 4. CONTINGENCY/CITY AND COUNTY FEES/RESERVE 5% Examples of this category of special benefit services and costs include, but is not limited to: Delinquencies, City/County fees Contingency In summary, all LDCBD funded services, programs and improvements described above confer special benefits to identified assessed parcels inside the LDCBD boundaries and none will be provided outside of the LDCBD. Each assessed parcel within the LDCBD will proportionately specially benefit from Civil Sidewalks-Safety-Cleanliness, District Identity-Placemaking, Administration and Contingency. These services, programs and improvements are intended to improve commerce, employment, rents, livability and occupancy rates of assessed parcels within the LDCBD by reducing litter, deterring crime, marketing
LAUREL DISTRICT CBD
13 the available goods and services and installing physical improvements, each considered necessary in a competitive properly managed mixed-use business district. All LDCBD funded services programs and improvements are considered supplemental, above normal base level services provided by the City of Oakland and are only provided for the special benefit of each and every assessed parcel within the boundaries of the LDCBD. WORK PLAN BUDGET Each identified assessed parcel within the LDCBD will be assessed the full amount of the proportionate special benefit conferred upon it based on the level of LDCBD funded services provided. The projected LDCBD program special benefit (assessments) allocation budget for Year 1-2026 is shown in the following Table: LDCBD Year 1-2026 Special Benefit Assessment Budget by Zone Civil Sidewalks-Safety-Cleanliness District Identity - Placemaking Administration Contingency TOTAL 39.8204% 30.0605% 24.9854% 5.1337% 100.00%$102,000 $77,000 $64,000 $13,150 $256,150 In order to carry out the LDCBD programs outlined in the previous section, a Year 1-2026 assessment budget of $256,150 is projected. Since the LDCBD is being proposed for a 20-year term, projected program costs for future years (Years 2-20) are set at the inception of the LDCBD. While future inflationary and other program cost increases are unknown at this point, a maximum annual increase of 8% per year, commensurate to special benefits conferred on each assessed parcel, is incorporated into the projected program costs and assessment rates for the LDCBD. Funding carryovers, if any, may be reapportioned the following year for related programs, services and improvements in accordance with the Plan. Detailed annual budgets will be prepared by the Property the Annual Report for and approval. It is recognized that market conditions may cause the cost of providing goods and services to fluctuate from year to year for the proposed LDCBDto reallocate any budget line item within the budget categories in the Management District Plan subject . Any proposed variation that exceeds 10% us or unspent funds, per category, shall be accumulated year to year over the life of the LDCBD. Such reallocation will be included in the Annual Report for approval by the City of Oakland City Council pursuant to related City policies. Any accrued interest or delinquent payments may be expended in any budget category in accordance with the Management District Plan. A 20-year projected LDCBD special benefit budget is shown in the following Table:
LAUREL DISTRICT CBD
14 YEAR 1-20 PROJECTED LDCBD ASSESSMENT BUDGET SUMMARY (Special Benefits) (Assumes 8% max rate increase per year) YR Civil Sidewalks-Safety-CleanlinessDistrict Identity - Placemaking Administration Services Contingency TOTAL 39.8204% 30.0605% 24.9854% 5.1337% 100.00% 1 $102,000 $77,000 $64,000 $13,150 $256,150 2 $110,160 $83,160 $69,120 $14,202 $276,642 3 $118,973 $89,813 $74,650 $15,338 $298,774 4 $128,491 $96,998 $80,622 $16,565 $322,676 5 $138,770 $104,758 $87,072 $17,890 $348,490 6 $149,872 $113,139 $94,038 $19,321 $376,370 7 $161,862 $122,190 $101,561 $20,867 $406,480 8 $174,811 $131,965 $109,686 $22,536 $438,998 9 $188,796 $142,522 $118,461 $24,339 $474,118 10 $203,900 $153,924 $127,938 $26,286 $512,048 11 $220,212 $166,238 $138,173 $28,389 $553,012 12 $237,829 $179,537 $149,227 $30,660 $597,253 13 $256,855 $193,900 $161,165 $33,113 $645,033 14 $277,403 $209,412 $174,058 $35,762 $696,635 15 $299,595 $226,165 $187,983 $38,623 $752,366 16 $323,563 $244,258 $203,022 $41,713 $812,556 17 $349,448 $263,799 $219,264 $45,050 $877,561 18 $377,404 $284,903 $236,805 $48,654 $947,766 19 $407,596 $307,695 $255,749 $52,546 $1,023,586 20 $440,204 $332,311 $276,209 $56,750 $1,105,474 The LDCBD assessments may increase for each individual parcel each year during the life of the LDCBD, but not to exceed 8% per year, commensurate to special benefits received by each assessed parcel, and Annual Report and adopted by the City of Oakland City Council. Any accrued interest and delinquent payments will be expended within the budgeted categories. The LDCBD) shall determine the percentage increase, if any, to the annual assessment, not to exceed 8% per year. the annual increase to the City each year in which the LDCBD operates at a time determined in the City of Oakland. No bonds are to be issued in conjunction with the proposed LDCBD. Pursuant to the Ordinance, any funds remaining after the 20-Year term will be rolled over into the renewal budget or returned to stakeholders in accordance with the Ordinance. If the LDCBD is terminated for any reason or disestablished, unencumbered/unexpended funds will be returned to the property owners in accordance with the Ordinance.
LAUREL DISTRICT CBD
15 Finding 3. in relationship to the entirety of the..........cost of public improvement(s) or the maintenance and operation expenses...........or the cost of the property related service being provided.Each identified assessed parcel within the LDCBD will be assessed based on property characteristics unique only to that parcel. Based on the specific needs and corresponding nature of the program activities to be funded by the proposed LDCBD (i.e. Civil Sidewalks-Safety-Cleanliness, District Identity-Placemaking, Administration and Contingency), it is the opinion of this Assessment Engineer that the assessment factors on which to base assessment rates relate directly to the proportionate amount of building area, land area and street frontage of each parcel except as noted herein within one benefit zone. The calculated assessment rates are applied to the actual assessed factor quantities of each parcel and thereby are proportional to each and every other identified assessed parcel within the LDCBD as a whole. Larger parcels and those with larger buildings and/or street frontage are projected to impact the demand for services and programs to a greater extent than smaller parcels or smaller buildings or street frontages and thus, are assigned a greater proportionate degree of assessment program and service costs. The proportionality is further achieved by setting targeted formula component weights for the respective parcel by parcel identified property attributes. The proportionate special benefit cost for each parcel has been calculated based on proportionate formula components and is listed in the Plan and this Report. The individual percentages (i.e. proportionate relationship to the total special benefit related program and activity costs) are computed by dividing the individual parcel assessment by the total special benefit program related costs. Finding 4. Not only are the proposed program costs reasonable due to the benefit of group purchasing and contracting which would be possible through the proposed LDCBD, they are also considerably less than other options considered by the LDCBD Formation Advisory Committee. The actual assessment rates for each parcel within the LDCBD directly relate to the level of service and, in turn, special benefit to be conferred on each parcel based on the respective amount of building area, land area and street frontage of each parcel except as noted herein within one benefit zone. Finding 5. Article XIIID states California or the United States shall not be exempt from assessment unless the agency can demonstrate by clear and convincing evidence that those publicly-owned parcels in f There are currently no publicly owned parcels within the boundaries of the proposed LDCBD. It is the opinion of this Assessment Engineer that there is no clear and convincing evidence that any future publicly
LAUREL DISTRICT CBD
16 owned parcels would not receive proportionate special benefits and thus, would not be exempt from assessments nor assessed differently than privately owned parcels. Finding 6. to be levied within the proposed LDCBD. Finding 7. calculated (along with) the total amount thereof chargeable to the entire district, the duration of such payments, the reason for such assessment and the basis upon which the amount of the proposed The individual and total parcel assessments attributable to special property benefits are shown in Appendix 1 to the Plan and this Report. The proposed LDCBD and resultant assessment levies will continue for 20 years unless disestablished. The reasons for the proposed assessments are outlined in Finding 2 above as well as in the Plan. The calculation basis of the proposed assessment is attributed to building area, land area and street frontage of each parcel except as noted herein within one benefit zone. Assessment Formula Methodology Step 1. Background Generic Assessment Formula Development The method used to determine special benefits derived by each identified assessed property within a CBD begins with the selection of a suitable and tangible basic benefit unit. For property related services, such as those proposed in the LDCBD, the benefit unit may be measured in building size in square feet, parcel land area in square feet or parcel street frontage in linear feet or any combination of these factors. Factor quantities for each parcel are then measured or otherwise obtained. From these figures, the amount of benefit units to be assigned to each property can be calculated. Special circumstances such as unique geography, land uses, development constraints etc. are carefully reviewed relative to specific programs and improvements to be funded by a CBD in order to determine any levels of different benefit that may apply on a parcel-by-parcel or categorical basis. Based on the factors described above such as geography and nature of programs and activities proposed, an assessment formula is developed which is derived from a singular or composite benefit unit factor or factors. Within the assessment formula, different percentage of values based on their relationship to programs/services to be funded. Next, all program and activity costs, including incidental costs, administration and ancillary program costs, are estimated. It is noted, as stipulated in Article XIIID Section 4(b) of the California Constitution, and now required of all property-based assessment districts, indirect or general benefit related costs may not be incorporated into the assessment formula and levied on the district properties; only direct or
LAUREL DISTRICT CBD
17 related costs may be used. Indirect or general benefits, if any, must be identified and, if addition, Article XIIID Section 4(b) of the California Constitution also no longer automatically exempts publicly owned property from being assessed unless the respective public agency can provide clear and convincing evidence that their property does not specially benefit from the programs and services to be funded by the proposed special assessments. If special benefit is determined to be conferred upon such properties, they must be assessed in proportion to special benefits conferred in a manner similar to privately owned property assessments. (See page 16 of this Report for discussion regarding publicly owned parcels within the LDCBD). From the estimated program costs, the the total amount of estimated program costs by the total number of benefit units. The amount of assessment for each parcel can be computed at this time by multiplying the Unit Cost times the number of Benefit are allocated proportionately CBD. The method and basis of spreading program costs varies from one CBD to another based on local geographic conditions, types of programs and activities proposed, and size and development complexity of the district. CBIDs may require secondary benefit zones to be identified to allow for a tiered assessment formula for variable or stepped-down benefits derived based on general land use differentials or levels of services required or programmed to be provided. LDCBD Assessment Formula Based on the specific needs and corresponding nature of the program activities to be funded by the proposed LDCBD (i.e. Civil Sidewalks-Safety-Cleanliness, District IdentityPlacemaking, Administration and Contingency) it is the opinion of this Assessment Engineer that the assessment factors on which to base assessment rates relate directly to the proportionate amount of building area, land area and street frontage of each parcel except as noted herein within one benefit zone. combined function of gross building square footage (Benefit , parcel land square footage , street frontage and residential . Based on the shape of the proposed LDCBD, as well as the nature of the work program, it is determined that all identified properties will gain a direct and proportionate degree of special benefit based on the respective amount of building area, land area and street frontage of each parcel except as noted herein within one benefit zone. It is noted and explained in more detail on page 18 under condominiums will be assessed based only on interior building pad square footage of each unit. The interaction of building area, land area and street frontage quantities is a common method of fairly and equitably spreading special benefit costs to the beneficiaries of CBD funded services, programs and improvements. These factors directly relate to the proportion of special benefit each assessed parcel will receive from LDCBD funded activities, programs and improvements. Building Area (Benefit Units A & D) is a direct measure of the static utilization of each parcel and its corresponding impact or draw on LDCBD funded activities. The combined targeted revenue weight of Building Area (Units A & D) is about 20% and will actually generate 18.6091% of the overall assessment revenue
LAUREL DISTRICT CBD
18 Land Area (Benefit Unit B) is a direct measure of the current and future development capacity of each parcel and its corresponding impact or draw on LDCBD funded activities. The targeted revenue weight of Land Area (Unit B) is about 45%. Unit B will actually generate 45.7211% of the overall assessment revenue. Street Frontage (Benefit Unit C) LDCBD funded activities. The targeted revenue weight of Street Frontage (Unit C) is about 35%. Unit C will actually generate 35.6697% of the overall assessment revenue. Special Assessment Circumstances 1. Residential Condominiums Residential condominium parcels will be assessed as a separate category. It is the opinion of this Assessment Engineer that residential condominium parcels will proportionately specially benefit from LDCBD funded programs and activities, but differently than commercial parcels and other residential parcels with multiple units on them. As such, based on the development configuration of such units which are generally multi floor buildings with no direct land or street frontage, the assessments for residential condominiums shall be assessed based solely on the internal building area of each residential condominium unit at the rate of $0.12 per square foot of internal building pad area, subject to any approved annual rate increases. 2. Commercial and Mixed-Use Condominiums While no mixed-use condominiums currently exist within the LDCBD, ground floor commercial condominiums within the LDCBD shall be assessed based on actual land area covered, condominium building area and direct street frontage for each unit. Because such uses are typically developed as part of a multi-floor mixed-use complex, special methodologies are needed to address the levy of assessments on such land uses as follows: Multi-Floor Commercial Only Condominiums (Upper Floors) - Building area assessed at respective building area rate and pro-rated for land area and street frontage based on quantities of the whole complex Multi-Floor Mixed-Use Condominiums - Commercial condo (See above for ground floor and upper floor locations) - Residential condo (See # 1 above)
LAUREL DISTRICT CBD
19 Changes to Building and/or Parcel Size Any changes in building or parcel size as a result of new construction, demolitions, land adjustments including but not limited to lot splits, consolidations, subdivisions, street dedications, right of way setbacks shall have their assessment adjusted upon final City approval of such building and/or parcel adjustments. Other Future Development Other than future maximum rates and the assessment methodology delineated in this Report, future assessments may increase for any given parcel if such an increase is attributable to events other than an increased rate or revised methodology, such as a change in the density, intensity, or nature of the use of land. Any change in assessment formula methodology or rates other than as stipulated in this Report would require a new Article XIIID ballot procedure in order to approve any such changes. Step 2. Quantify Total Basic Benefit Units Considering all identified specially benefiting parcels within the LDCBD and their respective assessable benefit units, the cumulative quantities by factor and zone are shown in the following Table: Year 1 2026 - Assessable Benefit Units BLDG AREA (SF) LAND AREA (SF) STREET FRONTAGE (LF) R-CONDO BLDG AREA (SF) # OF ASSESSABLE PARCELS 374,558 780,764 10,152 22,670 120 Considering all identified specially benefiting parcels within the LDCBD and their respective assessable benefit units, the cumulative assessment revenue by factor are shown in the following Table: Year 1 2026 - Assessment Revenue BLDG ASSMT $ LAND ASSMT $ STREET FRONTAGE ASSMT REVENUE R-CONDO BLDG ASSMT REVENUE TOTAL ASSMT REVENUE $44,946.96 $117,114.60 $91,368.00 $2,720.40 $256,149.96 17.5471% 45.7211% 35.6697% 1.0620% 100.00% Step 3. Calculate Benefit Units for Each Property. The number of Benefit Units for each identified benefiting parcel within the proposed LDCBD was computed from data extracted from County Assessor records and maps. These data sources delineate current land uses, property areas and dimensions of record for each tax parcel. While it is understood that this data does not represent legal field survey measurements or detailed title search of recorded land subdivision maps or building records, it does provide an acceptable basis for the purpose of calculating
LAUREL DISTRICT CBD
20 property-based assessments. All respective property data being used for assessment computations will be provided to each property owner in the LDCBD for their review. If a property owner believes there is an quantities, the LDCBD may confirm the data with the Alameda County LDCBD LDCBD assessment may be corrected. Step 4. Determine Assessment Formula In the opinion of this Assessment Engineer, the general assessment formula for the proposed LDCBD as shown in the Year 1 Assessment Rate Table above is as follows: Assessment = Building Area (Unit A) Sq Ft x Unit A Rate Land Area (Unit B) Sq Ft x Unit B Rate, plus Street Frontage (Unit C) Lin Ft x Unit C Rate OR Residential Condominium Building Area (Unit D) Sq Ft x Unit D Rate Assessment Formula Unit Rates Based on figures from the Assessable Benefit Units Table above, the assessment rates for each factor and zone are shown as calculated below: Building Area Rate (Unit A) ($256,149.96 x 17.5471%) / 374,558 assessable building area units = $0.12/sq ft building area Land Area Rate Rate B (Unit B) ($256,149.96 x 45.7211%) / 780,764 assessable land area units = $0.15/sq ft land area Street Frontage Rate (Unit C) ($256,149.96 x 35.6607%) / 10,152 assessable street frontage units = $9.00/ LF street frontage Condo Building Area Rate (Unit D) ($256,149.96 x 1.0620%) / 22,670 assessable condo building units = $0.12/sq ft building area
LAUREL DISTRICT CBD
21 YEAR 1 2026 Assessment Rates BLDG ASSMT RATE ($/SF) LAND ASSMT RATE ($/SF ) STREET FRONTAGE ASSMT RATE ($/LF) R-CONDO BLDG ASSMT RATE $0.12 $0.150 $9.00 $0.12 The complete Year 1 2026 assessment roll of all parcels to be assessed by the LDCBD is included in this Report as Appendix I. Step 5. Estimate Total LDCBD CostsThe total projected 20-year LDCBD special benefit costs for 2026 2045 are shown in the Table on page 14 of this Report assuming a maximum 8% increase per year. Step 6. Separate General Benefits from Special Benefits and Related Costs (Article XIIID) Total Year 1 special and districtwide general benefit related costs are estimated at $262,718. Districtwide general benefits are factored at 2.5% of the total benefit value (see Finding 2 of this Report) with special benefits set at 97.5%. Article XIIID limits the levy of property assessments to costs attributed to special benefits only. The 2.5% general benefit value is computed to be $6,568 with a resultant 97.5% special benefit limit computed at $256,150. Based on current property data and land uses, this is the maximum amount of Year 1 - 2026 revenue that can be derived from property assessments from the subject District. All program costs associated with district-wide and site/activity specific general benefits will be derived from sources other than LDCBD assessments. Step 7. With a YR 1 - 2026 assessment revenue portion of the budget set at $256,150 (special benefit only), the Unit Costs (rates) are shown earlier in Step 4. The LDCBD is proposed for a 20-year term. An annual inflationary assessment rate increase of up to 8%, commensurate to special benefits received by each assessed parcel, may be imposed for future year assessments, on approval by the LDCBD Association. The maximum assessment rates for years 1-20 (2026-2045) are shown in the Table below. The assessment rates listed constitute the maximum assessment rates that may be imposed for each year of the 20-year LDCBD term. LDCBD Maximum Assessment Rates - Years 1-20 (Includes an 8%/Yr. Max Increase) YEAR BLDG ASSMT RATE ($/SF) LAND ASSMT RATE ($/SF ) FRONTAGE ASSMT RATE ($/LF) R-CONDO BLDG ASSMT RATE ($/SF) 1 $0.1200 $0.1500 $9.0000 $0.1200 2 $0.1296 $0.1620 $9.7200 $0.1296
LAUREL DISTRICT CBD
22 3 $0.1400 $0.1750 $10.4976 $0.1400 4 $0.1512 $0.1890 $11.3374 $0.1512 5 $0.1633 $0.2041 $12.2444 $0.1633 6 $0.1764 $0.2204 $13.2240 $0.1764 7 $0.1905 $0.2380 $14.2819 $0.1905 8 $0.2057 $0.2570 $15.4245 $0.2057 9 $0.2222 $0.2776 $16.6585 $0.2222 10 $0.2400 $0.2998 $17.9912 $0.2400 11 $0.2592 $0.3238 $19.4305 $0.2592 12 $0.2799 $0.3497 $20.9849 $0.2799 13 $0.3023 $0.3777 $22.6637 $0.3023 14 $0.3265 $0.4079 $24.4768 $0.3265 15 $0.3526 $0.4405 $26.4349 $0.3526 16 $0.3808 $0.4757 $28.5497 $0.3808 17 $0.4113 $0.5138 $30.8337 $0.4113 18 $0.4442 $0.5549 $33.3004 $0.4442 19 $0.4797 $0.5993 $35.9644 $0.4797 20 $0.5181 $0.6472 $38.8416 $0.5181 Step 8. Spread the Assessments The resultant assessment spread calculation results for each parcel within the LDCBD are shown in the Plan and this Report and were determined by applying the LDCBD assessment formula to each identified benefiting property. Miscellaneous LDCBD Provisions Time and Manner of Collecting Assessments: Assessments shall be collected at the same time and in the same manner as ad valorum taxes paid to Alameda County. The LDCBD assessments shall appear as a separate line item on the property tax bills issued by Alameda County. The City of Oakland is authorized to collect any assessments not placed on the County tax rolls, or to place assessments, unpaid delinquent assessments, or penalties on the County tax rolls as appropriate to implement the Plan. Bonds: No bonds are to be issued in conjunction with the proposed LDCBD. Duration: As allowed by the Ordinance, the LDCBD will have a 20-year operation term, beginning January 1, 2026 and ending December 31, 2045. At that time, the LDCBD may be renewed again in accordance with the Ordinance.
LAUREL DISTRICT CBD
23 APPENDIX 1 LDCBD YR 1 2026 ASSESSMENT ROLL
24 APN Year 1 Assessment 028 -0952-014-00 $3,795.45 028 -0955-002-01 $1,434.00 028 -0955-003-04 $4,598.52 028 -0955-006-05 $2,252.37 028 -0956-001-00 $2,491.20 028 -0956-002-00 $755.40 028 -0956-006-04 $4,305.45 028 -0956-013-03 $3,799.80 028 -0956-025-00 $113.16 028 -0956-026-00 $129.96 028 -0956-027-00 $115.56 028 -0956-028-00 $89.64 028 -0956-029-00 $110.88 028 -0956-030-00 $129.96 028 -0956-031-00 $115.56 028 -0957-012-00 $2,076.75 028 -0957-034-00 $189.24 028 -0957-035-00 $182.76 028 -0957-036-00 $182.76 028 -0957-037-00 $182.76 028 -0957-038-00 $182.76 028 -0957-039-00 $182.76 028 -0957-040-00 $1,770.39 028 -0957-041-00 $190.32 028 -0957-042-00 $199.32 028 -0957-043-00 $240.24 028 -0957-044-00 $182.76 030 -1898-008-01 $4,867.92 030 -1898-011-00 $1,112.76 030 -1898-012-00 $1,325.82 030 -1898-013-00 $1,313.25 030 -1898-014-00 $1,231.20 030 -1903-011-00 $1,912.29 030 -1903-012-01 $2,349.51 030 -1903-014-00 $342.00 030 -1903-015-01 $3,398.10 030 -1907-012-00 $1,892.01 030 -1907-013-00 $924.15 030 -1907-014-00 $1,243.95 030 -1907-015-00 $1,230.45 030 -1907-016-00 $1,198.05 030 -1907-017-00 $3,160.56 030 -1912-012-00 $2,030.10 030 -1912-013-00 $900.00 030 -1912-014-00 $1,404.00 030 -1912-015-00 $1,611.48 030 -1912-019-01 $6,848.43 030 -1917-012-00 $1,768.05 030 -1917-013-00 $903.27 030 -1917-014-00 $1,249.14 030 -1917-015-00 $1,249.14 030 -1917-016-00 $798.90 030 -1917-017-00 $1,121.04 030 -1917-018-00 $2,721.87 030 -1980-001-00 $4,465.20 030 -1980-020-01 $4,784.25 030 -1980-021-00 $306.00 030 -1980-022-00 $315.00 030 -1980-023-00 $288.00 030 -1980-055-00 $4,077.66 030 -1980-057-00 $3,438.00 030 -1980-058-01 $3,181.35 030 -1980-059-00 $11,251.44 030 -1980-060-00 $1,617.60 030 -1980-061-00 $1,515.96 030 -1980-062-00 $1,140.00 030 -1980-063-00 $2,391.60 030 -1980-132-01 $3,480.00 030 -1980-134-02 $2,236.95 030 -1980-135-00 $1,296.00 030 -1980-136-00 $1,260.00 030 -1980-137-00 $1,351.74 030 -1980-138-00 $1,283.34 030 -1980-139-00 $1,920.00 030 -1980-140-00 $1,632.00 030 -1980-141-00 $1,468.80 030 -1980-142-02 $2,274.00 030 -1980-144-00 $2,160.00 030 -1980-163-00 $1,127.25 030 -1980-164-00 $4,195.71 030 -1981-059-01 $2,100.00 030 -1981-060-00 $1,497.00 030 -1981-061-00 $1,250.16 030 -1981-063-01 $5,100.96 030 -1981-064-00 $17,658.96 030 -1981-065-00 $870.45 030 -1981-066-00 $1,201.05 030 -1981-067-00 $854.25 030 -1981-068-00 $870.00 030 -1981-069-00 $600.45 030 -1981-070-00 $894.96 030 -1981-091-00 $2,274.84 030 -1981-092-00 $819.90 030 -1981-093-00 $2,799.42 030 -1981-094-00 $2,490.93 030 -1981-097-00 $3,730.50 030 -1981-098-01 $3,378.66 030 -1981-099-00 $2,093.64 030 -1981-113-00 $2,310.45 030 -1981-114-00 $2,458.86 030 -1981-115-00 $894.54 030 -1981-116-00 $2,238.60 030 -1981-117-00 $3,591.27 030 -1981-118-00 $1,200.00 030 -1981-119-00 $1,434.30
LAUREL DISTRICT CBD
25 030 -1981-128-00 $1,668.12 030 -1981-129-00 $2,880.00 030 -1981-130-02 $2,901.93 030 -1981-131-00 $1,632.15 030 -1981-132-00 $1,176.00 030 -1981-133-00 $3,379.50 030 -1981-135-00 $4,294.50 030 -1981-150-01 $4,532.16 030 -1981-151-00 $1,447.17 030 -1981-152-00 $3,061.65 030 -1981-154-01 $2,079.00 030 -1981-155-00 $1,000.26 030 -1981-157-00 $4,936.53 030 -1982-118-01 $3,881.22 030 -1982-123-01 $8,100.60 TOTAL $256,149.96 26 APPENDIX 2 LDCBD BOUNDARY MAP
LAUREL DISTRICT CBD
27