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AUTO CENTER BUSINESS IMPROVEMENT DISTRICTANNUAL ASSESSMENT &BID FUNDING AGREEMENTCity CouncilAugust 15, 2023Community and Economic Development DepartmentFinance Department RiversideCA.gov2
RIVERSIDE AUTO CENTER•Riverside Auto Center features 25 dealerships and 32 brands, and offers over 8,000 new and used vehicles•Rivals Ontario Auto Center as largest in Inland Empire•Riverside Auto Center features a large electronic sign along the 91 Freeway 7/31/2023
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BUSINESS IMPROVEMENT DISTRICT (BID)•July 26, 2011 – City Council approved formation of Auto Center Business Improvement District•Included 13 businesses•Additional $8,000 assessment on Business Tax renewal•Riverside New Car Dealers Association appointed BID advisory board•2021 – 4 additional businesses added to BID•Assessment adjusted to $6,100 per business RiversideCA.gov4
DISTRICT LEVY•No proposed changes to BID boundaries•Activities and improvements include advertising, installation and maintenance of a new Auto Center electronic sign, property maintenance•Each BID business will be assessed $6,100 per year as an additional assessment on business tax renewal•Auto Center BID representative will be present at public hearing 7/31/2023
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BID FUNDING AGREEMENT•2011 – City, Redevelopment Agency, and Riverside New Car Dealers Association entered into BID Funding Agreement•RDA agreed to pay RNCDA $1,000,000 over 10 years •August 2015 – new Agreement between City and RNCDA executed for Display on Riverside Auto Center Sign•City receives 15% of advertising time on sign for annual amount of $100,000•Agreement expires September 1, 2023 RiversideCA.gov6
RETURN ON CITY INVESTMENT•City is allotted 15% of daily advertising on Auto Center electronic display sign•Recent ads:–The Cheech–311 Mobile App–Explore Riverside–City job opportunities
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RETURN ON CITY INVESTMENT•Auto Center sign is viewed over 500,000 times per week•Valuation of City’s time on sign is approximately$170,000 based on standard rates for ads on digitalbillboards RiversideCA.gov8
ECONOMIC IMPACT•Autos and Transportation sector accounts for about 25% of sales tax dollars collected annually•FY 22/23 sales tax from sector estimated at $22.5 million•Autos and Transportation sector accounts for about 19% of Measure Z tax, about $16 million 7/31/2023
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CONTINUED INVESTMENT•Proposed 5-year agreement for $100,000 per year•$103,700 in projected revenue from District levy•City match funds for District levy in exchange foradvertising time on electronic sign display RiversideCA.gov10
Strategic Priority 3 – Economic Opportunity Goal 3.1 – Facilitate partnerships and programs to develop, attract and retain innovative business sectors.Cross-Cutting Threads
STRATEGIC PLAN ALIGNMENT
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That the City Council:1. Receive and approve the annual report of theRiverside New Car Dealers Association acting in itscapacity as the advisory board to the Auto CenterBusiness Improvement District;2. Adopt a Resolution declaring the City of Riverside’sintent to levy an annual assessment within the AutoCenter Business Improvement District beginningSeptember 1, 2023, and ending August 31, 2024;3. Set a public hearing for September 5, 2023, at 3:00p.m. on the levy of the proposed assessment;RECOMMENDATIONS RiversideCA.gov12
4. Approve an Agreement with the Riverside New Car DealersAssociation for Business Improvement District Funding for a five-year term through June 30, 2028, payable in an annual amountof $100,000 for a total amount of $500,000;5. Authorize the City Manager, or designee, to execute theAgreement for Business Improvement District Funding, includingmaking minor and non-substantive changes; and6. With at least five affirmative votes, authorize the Chief FinancialOfficer, or designee, to record a supplemental appropriationfrom the General Fund undesignated balance in the amount of$100,000 to the Finance Department Development Agreementsaccount.RECOMMENDATIONS