Chapter 5.05
CHULA VISTA AUTO PARK BUSINESS IMPROVEMENT DISTRICT
Sections:
5.05.010 Title.
5.05.020 Chula Vista Auto Park Business Improvement District location.
5.05.030 Purpose.
5.05.040 Services and programs.
5.05.050 Assessment calculation.
5.05.060 Summary of assessments.
5.05.070 Eligible businesses.
5.05.080 Findings.
5.05.090 Future amendments.
5.05.100 Annual review.
5.05.110 Advisory Board.
5.05.120 Effective date.
5.05.010 Title.
Pursuant to California Streets and Highways Code Section 36500 et seq. (the “Law”), a parking and business improvement area is hereby established, to be known as the “Chula Vista Auto Park Business Improvement District,” herein called “District.” (Ord. 3125 § 1, 2009).
5.05.020 Chula Vista Auto Park Business Improvement District location.
The area to be included in the District includes the Chula Vista Auto Park business community area, generally described as the commercial properties along Main Street/Auto Park Drive between Interstate 805 and Nirvana Avenue, within the following address ranges:
|
Auto Park Drive/Main Street |
505 – 4555 |
|
Auto Park Place |
1860 – 1890 |
|
Brandywine Avenue |
1669 – 1690 |
|
Main Court |
1810 – 1820 |
A map depicting the District is attached and incorporated into Ordinance No. 3125 as “Exhibit A.” (Ord. 3125 § 1, 2009).
5.05.030 Purpose.
The purpose of forming the District as a parking and business improvement area under the Business and Improvement Area Law is to provide revenue to defray the costs of services and programs which will benefit businesses in the area. (Ord. 3125 § 1, 2009).
5.05.040 Services and programs.
The improvements and activities to be provided in the District will be funded by the levy of assessments. The revenue generated by the assessments to be levied may be utilized for some or all of the following services and programs:
A. The construction and maintenance of the new vehicle dealers freeway sign will be included as a service or program funded by the proposed BID. The BID new vehicle dealers within the BID will participate in the design, operations and maintenance of the new freeway sign;
B. Pay for marketing and advertising to promote the area as a destination point;
C. Banner program for area to promote the District;
D. Organizational operations and staff; and
E. Day-to-day administration of and staff for the District. (Ord. 3125 § 1, 2009).
5.05.050 Assessment calculation.
All businesses operating in the above-described area will be assessed a share of the costs of the aforementioned services and programs as determined by the following formula:
A. Base Amount. In the first six months of adoption of the ordinance codified in this chapter, there will be a mandatory minimum payment from each affected transportation dealer in the amount of $3,000 per month per business. Car dealers/owners with separate brands pay on the basis of each business license taken out by City for first six months of assessment district.
B. After six months of adoption of the District, the three-tiered system with minimums and maximums is applied.
C. Tiered system is based upon the fact that all dealers, regardless of type and style of vehicle, pay a base assessment of $3,000 per month.
1. Any sales above $24,000,001 in annualized sales, after the first six months of the district, will pay at a rate of 0.0015 of the average quarterly sales ($24,000,000 in sales per year times 0.0015 equals $36,000 per year).
2. Maximum Amount. The maximum amount any dealer can pay is $6,000 per month – therefore annualized sales above $48,000,001 per year are capped at $6,000 per month. (Ord. 3125 § 1, 2009).
5.05.060 Summary of assessments.
The assessments to be imposed for those District businesses are as follows:
|
Annual Taxable Sales (1%) per dealer |
Factor |
Annual Assessment |
Monthly Charge (Divided by 12) |
|
$10,000,000 |
.0015 |
$36,000.00 Minimum |
$3,000.00 |
|
$20,000,000 |
.0015 |
$36,000.00 Minimum |
$3,000.00 |
|
$24,000,000 |
.0015 |
$36,000.00 Minimum |
$3,000.00 |
|
$30,000,000 |
.0015 |
$45,000.00 |
$3,750.00 |
|
$35,000,000 |
.0015 |
$52,500.00 |
$4,375.00 |
|
$40,000,000 |
.0015 |
$60,000.00 |
$5,000.00 |
|
$45,000,000 |
.0015 |
$67,500.00 |
$5,625.00 |
|
$48,000,000 |
.0015 |
$72,000.00 |
$6,000.00 |
|
$52,000,000 |
.0015 |
$72,000.00 |
$6,000.00 |
|
$60,000,000 |
.0015 |
$72,000.00 |
$6,000.00 |
The above-described assessment is an annual charge and shall be levied, collected and enforced in the same manner, at the same time, and with the same penalties and interest as in the case of the business license. For those businesses taxed for other than an annual tax period, the City shall determine the assessment to be levied upon issuance of the City business tax certificate.
The total assessment collected from any business under the provisions of this chapter shall not exceed $6,000 per month. (Ord. 3125 § 1, 2009).
5.05.070 Eligible businesses.
The following businesses, as identified by the North American Industrial Codes (NAIC), shall be subject to the Chula Vista Auto Park Business Improvement District:
Those NAIC Code numbers will include:
|
Primary Type of Business |
NAIC Code – 2007 |
|
New Car Dealers |
441110 |
|
Used Car Dealers |
441120 |
|
New Recreational Vehicle Dealers |
441210 |
|
All Other New Motor Vehicle Dealers |
441229 |
Each new transportation sales business license holder, as defined by the NAIC code numbers in this section, within the confines of one common lot is considered one separate entity for assessment purposes, including those situations when a single person or corporation owns multiple new vehicle dealerships. For example, if one entity has two or more dealerships on site and has a separate business license for each dealership, that entity would be assessed on each business license issued. If, on the other hand, an entity has multiple dealerships on site and only has one business license for all of the dealerships, then that entity would be assessed on only one business license. (Ord. 3125 § 1, 2009).
5.05.080 Findings.
The Council hereby finds and determines that the public convenience and necessity require the establishment of the District and that all of the businesses lying within the area will be benefited by the improvements and activities funded by the assessments proposed to be levied. (Ord. 3125 § 1, 2009).
5.05.090 Future amendments.
All of the businesses in the area established by this chapter shall be subject to any amendments to the provisions of the Parking and Business Improvement Area Law of 1989, codified as California Streets and Highways Code Section 36500 et seq. (Ord. 3125 § 1, 2009).
5.05.100 Annual review.
All of the assessments imposed pursuant to this chapter shall be reviewed by the City Council annually. (Ord. 3125 § 1, 2009).
5.05.110 Advisory Board.
Principal office holders of the following representative businesses shall make up the District Advisory Board pursuant to California Streets and Highways Code Section 36530:
|
Business |
|
Fuller Ford |
|
Fuller Honda |
|
McCune Chrysler, Jeep, Dodge |
|
People’s Chevrolet |
|
Chula Vista Toyota |
(Ord. 3125 § 1, 2009).
5.05.120 Effective date.
This chapter shall take effect and be in force on March 20, 2009, and no business license for commercial activities inconsistent with the provisions of this chapter shall be issued unless application therefor was made prior to the date of adoption of the ordinance codified in this chapter. (Ord. 3125 § 1, 2009).