COMMUNITY BUSINESS IMPROVEMENT DISTRICT (CBID)

THE COAST VILLAGE COMMUNITY BENEFIT IMPROVEMENT DISTRICT

MANAGEMENT DISTRICT PLAN

EXECUTIVE SUMMARY

(FULL COPIES OF THIS MANAGEMENT DISTRICT PLAN AND THE ENGINEER’S REPORT, IS AVAILABLE UPON REQUEST BY ANY PROPERTY, BUSINESS OWNER OR RESIDENT WITHIN THE PROPOSED CBID AREA, PLEASE E-MAIL MONICA@NEWCITYAMERICA.COM OR

CALL 888 356-2726 TO HAVE FULL COPY OF BOTH PLANS SENT TO YOU)

Final Plan – January 26, 2022

Prepared pursuant to the City of Santa Barbara’s Community Benefit Ordinance

(Santa Barbara Municipal Code Chapter 4.45)

prepared for the:

The Coast Village Association

City of Santa Barbara

Prepared by: New City America, Inc

 COAST VILLAGE CBID MANAGEMENT DISTRICT PLAN SUMMARY

The name of this proposed Community Benefit Improvement District (“CBID”) is the Coast Village Community Benefit Improvement District (“Coast Village CBID” or the “District”). The District is being formed in accordance with the recently adopted City of Santa Barbara’s Community Benefit Ordinance (Santa Barbara Municipal Code Chapter 4.45).

The levy of assessments on real property within the proposed District will fund physical, maintenance and operational improvements to individual parcel owners, with the intent to attract new customers, tenants, and increase business sales throughout the Coast Village District.

Coast Village CBID Steering Committee

For decades, the Coast Village Association and its predecessor community associations has led the effort to improve and enhance the experience and overall ambiance of working, visiting, shopping and residing in the Coast Village district. Its efforts have paid off well but are hindered by a lack of sustainable revenue to fund its ongoing activities and programs.

In the summer of 2020, the Coast Village Association hired New City America, a Southern California company that specializes in CBID and PBID investigations and formations. The purpose of this engagement was to investigate the likelihood of conceptual support for a new Coast Village District Community Benefit Improvement District. New City America conducted a survey to gauge support within the community for a new Special Benefit District for the Coast Village District property owners.

Priority Special Benefit Services/Survey

In September 2021, a survey was sent out to all the property owners in the proposed CBID area to ascertain their level of conceptual support for the services that would be funded through the establishment of a new Coast Village Improvement District (CVCBID). The survey results informed us of the priority services desired by the property owners and those special benefits have been incorporated into this plan and will be articulated in the plan as well as the Engineer’s report.

We received responses from over 50% of the property owners in the proposed district. In their responses to the survey, property owners prioritized the following special benefit services,

• First , the response prioritized f u n d i n g f o r marketing and promotions, social media and branding programs to attract new tenants & customers to the district.

• Second, property owners supported special events such as Holiday décor, street festivals etc. to improve the identity and bring positive attention to the Coast Village district.

• Third, property owners supported planting, trimming and maintenance of trees, flowers and shrubs throughout Coast Village.

• Fourth, property owners hoped to create a safer and more orderly environment in the public rights of way, beyond the efforts the City of Santa Barbara City staff is currently providing

Changes in Santa Barbara’s Coast Village District
The investigation of a new Coast Village District CBID centered on these 5 questions:

1. How to fund the programs that will make the Coast Village District brand become more positive in Southern California.

2. How to create greater demand for Coast Village District’s buildings resulting in greater rental rates and commerce to businesses and tenants, particularly in light of the devasting impact of the COVID 19 pandemic.

3. How to drive more tenants to the buildings in the Coast Village District and attract more customers and visitors to rebuild the retail and restaurant sectors here.

4. How to ensure that the public rights of way will become more beautiful and attractive and promote the culture and history of the Coast Village District.

5. How to fund and sustain the improvements needed to provide adequate lighting and landscaping as well as mitigation of the 101 realignment project and its impact on Coast Village Road and its businesses.

How can a new CBID benefit property owners in Coast Village District?
In summary, a Coast Village CBID is a Special Benefits Assessment District. It is allowable in the state constitution that provides for the levy of assessments on benefitting property owners with the purpose of funding special benefit services that convey these benefits to the property owners within the proposed district boundaries. The special benefit services to be funded through this plan include:

• Private security as well as working with the City and County to concentrate services for the unhoused population in and around Coast Village.

• Sidewalk cleanliness

• Increase the trimming and replacement of damaging trees and landscaping

• Install/improve decorative amenities such as street furniture/fixtures/equipment/lighting

• Promote and enhance the brand/image of Coast Village

• Manage events n and around the district

• Create a strong social media presence, and facilitate public relations for Coast Village businesses

• Provide parking directional services and other mobility related features

• Promote public space development and placemaking for community gathering

METHOD OF FINANCING
The financing of the Coast Village CBID is accomplished through 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. See Section 4 for assessment methodology and compliance with Article XIII D of the California State Constitution. There are five factors used in the determination of proportional costs to the parcels in the District. These five factors are:

• Linear frontage, on all sides of the parcel (excluding alleys)

• Lot size or the footprint of the parcel

• Building square footage.

• Current and future residential condominiums that will be constructed within the District

• Location within one of the two geographic benefit zones of the district

In addition, other factors will be used to determined assessments based upon the anticipated benefit for specific land uses:

1. Residential condominiums will be assessed for their specific parcel building square footage only.

2. All private, public and tax-exempt owned and operated parcels will be assessed for linear frontage, building square footage and lot size;

3. Mixed use residential uses (not including residential condominiums), including apartments, will pay a reduced building assessment, based upon the services those property owners shall receive in their mixed-use developments. The majority land use of these single parcel mixed use developments will be assessed for their building square footage at a lower rate due to the fact that the bulk of the building square footage is not commercial, but rather residential, which will receive special benefits, albeit at a lesser level. The mixed use residential parcels will still pay the same Benefit Zone 1 assessments for linear frontage and lot square footage, as commercial property owners.

Data and Benefit Zones
There are 115 individual parcels owned by 94 property owners in the proposed Coast Village Community Benefit Improvement District.

The data that was obtained from Santa Barbara County as well as input from the various property owners in Coast Village District have yielded the following information which is to be used as the basis for the generation of revenue to fund the special benefits outlined in this Management Plan. That data, as of June 1st, 2021, is as follows:

Broken down by benefit zone:

Boundaries:
The following description summarizes the two different Benefit Zones within the proposed Coast Village Community Benefit Improvement District. Both of the Benefit Zones are predominantly geographically based. In general and the Benefit Zone boundaries are proposed as follows:

Zone 1: Core Area: on the east side, commencing at Olive Mill Road and heading westward including parcels on both sides of Coast Village Road between the 101 Freeway on the south and Hot Springs Road on the west. Parcels on Coast Village Circle facing the 101 freeway with no frontage along Coast Village Road will instead be included in Benefit Zone 2 assessment rates since they will not receive the same benefit as parcels fronting directly onto Coast Village Road.

Zone 2: Peripheral area: on the far west side of the district on the south side of the 101 freeway beginning at Cabrillo Road on the east and ending at parcel # 391-001-000 on the west, which include those parcels north of Highway 101 which do not front along Coast Village Road.

Costs:
The costs per parcel are based upon the five factors listed on Page 7 above. The Benefit Zones are determined by the anticipated special benefits that a parcel will receive based upon its proximity to the core of the district along Coast Village Road, as well as the frequency of special benefit services that that parcel will be receiving. All assessments must be proportional the special benefits received.

Proposed First Year Coast Village District CBID Budget - 2022

First Year Annual Costs Per Benefit Zone/Coast Village CBID
Assessments are a sum of the proposed building square footage, lot size and linear frontage per parcel

DISTRICT IMPROVEMENT AND ACTIVITY PLAN

Explanation of Special Benefit Services
All of the improvements and activities detailed below are provided only to properties within the boundaries of the Coast Village CBID, as the improvements and activities will provide special benefits to the owners of these properties.

The City will continue to provide general benefit services from the general fund in the CoastVillageDistrict which will include public safety programs, street sweeping, tree trimming, roadwork repairs, sidewalk repair, trash collection of public refuse containers, etc. The frequency of these general benefits may change from year to year and time to time basedupon budget constraints. However, City general benefits will not be withdrawn from CoastVillage District unless they are withdrawn by an equal frequency City wide. The CBID funded special benefits will not replace City funded general benefits, but rather will provide special benefits to parcel owners over and above the general benefits provided by the City of Santa Barbara.

All services funded by the assessments outlined in the Management District Plan are intended tospecifically benefit the properties within the District to support increased commerce, businessattraction and retention, to retain and increase commercial property rentals, , enhance safety andcleanliness in the District, improve Districtidentity, and eventually fund specialized beautification and enhanced services for the property owners, businesses, visitors and residents within the District.

Special Benefit Budget Category Analysis
This Plan gives property owners greater flexibility in determining the type and frequency ofspecialbenefit services that will be allocated on a year-to-year basis. As Santa Barbara’s Coast Village District evolves, services that are needed one year may not be needed thenext. Therefore, “bundles” or categories of special benefit funding have been created anddivided into five broad categories – Civil Sidewalks, District Identity and Placemaking, Capital Improvements/TrafficManagement, Administration and Contingency. The bundles are allocated funding percentages with theflexibility to prioritize or minimize a service within each bundle.

The bundles or categories of services and their percentages represent the service plan the CoastVillage District property owners will be voting on when the Coast Village District CBID comes up for a mail ballot later in the Winter of 2022.

The proposed “bundles” of special benefit services are listed below and are supplementalto current City services.

CIVIL SIDEWALKS:
Examples of this category of special benefit services and costs may include, but are not limited to:

• Beautification of the district

• Tree and vegetation maintenance (over and above city services)

• Maintenance of existing and new public spaces

• Installation of and maintenance of landscaping throughout the district

• Periodic sidewalk and gutter sweeping

• Periodic sidewalk steam cleaning

• Enhanced trash emptying (over and above city services)

• Organization and oversight of trash collection

• Timely graffiti removal, within 24 hours as necessary

• Possible hiring of contracted professional case workers to respond to the needs ofthe unhoused population in and around Coast Village Road

• Personnel to manage the in-house or contracted maintenance and/or landscapingteams.

• Farmers market assistance

DISTRICT IDENTITY AND PLACEMAKING:
Examples of this category of special benefit services and costs may include, but are notlimited to:

• Web site development and updating

• Social media, public relations firm

• Holiday and seasonal decorations

• Events such as the Taste of Coast Village

• Branding of the Coast Village CBID properties so a positive image ispromoted to the public including the development of a new logo

• Banner programs

• Public art displays

• Public space design and improvements

• Personnel to manage the in-house or contracted public relations, web sitemaintenance or social media contractors

• Refurbishment of street signs and monuments

ADMINISTRATION/PROGRAM MANAGEMENT
Examples of this category of special benefit services and costs may include, but is not limitedto:

• Staff and administrative costs, contracted or in-house

• Directors and Officers and General Liability Insurance

• Office related expenses

• Rent

• Financial reporting and accounting

• Legal work

CAPITAL IMPROVEMENTS/TRAFFIC MANAGEMENT
Examples of this category of special benefit services and costs may include, but is not limitedto:

• Mitigating the impacts on Coast Village Road as Highway 101work begins to impact traffic and circulation

• In cooperation with City of Santa Barbara Traffic Control department thepossible hiring of traffic control officers (approved by the City) to helpfacilitatetraffic on days with heavy vehicular density on Coast Village Road

• Facilitating valet services for busy nights on Coast Village Road

• Rental of parking lots for convenient parking for visitors on the weekendsor busyholidays

CONTINGENCY/CITY AND COUNTY FEES/RESERVE
Examples of this category of special benefit services and costs include, but is not limited to:

• Delinquencies, City/County fees, reserves, capital project improvements.