Chapter 5.06
COOPERATIVE RETAIL MANAGEMENT BUSINESS REAL PROPERTY IMPROVEMENT DISTRICT

Sections:

5.06.010    Purpose of provisions.

5.06.020    Cooperative retail management business real property improvement district.

5.06.030    Business improvement assessments.

5.06.040    Assessment rate – Formula for assessment.

5.06.050    Revenue use.

5.06.060    Businesses subject to assessment.

5.06.070    Assessments – Semiannual installments.

5.06.080    Late payment penalties.

5.06.090    Collection and enforcement.

5.06.100    Administrative regulations and determinations – Appeal.

5.06.110    Individual or joint and several liability.

5.06.120    Continued application.

5.06.010 PURPOSE OF PROVISIONS.

This chapter is adopted in order to generate revenue for the exclusive purpose of promoting business in the cooperative retail management business real property improvement district. Revenue generated from the levy of assessments provided for in this chapter shall be used within the cooperative retail management business real property improvement district only, and shall not be used to provide improvements or activities outside the district, or for any purpose other than the purposes specified in the resolution of intention, or as may be modified by the city council at the public hearing concerning the establishment of the district.

(Ord. 94-06 § 1 (part), 1994).

5.06.020 COOPERATIVE RETAIL MANAGEMENT BUSINESS REAL PROPERTY IMPROVEMENT DISTRICT.

There is established a business improvement district designated as the “Cooperative Retail Management Business Real Property Improvement District” within the area bounded as set forth in the diagram included in this chapter.*

*    The diagram referred to in this section is on file in the office of the city clerk.

(Ord. 94-06 § 1 (part), 1994).

5.06.030 BUSINESS IMPROVEMENT ASSESSMENTS.

An annual assessment, which shall be in addition to any general business license tax of the city of Santa Cruz, shall be imposed upon all persons in the business of owning business real property, as defined in Section 5.06.060, within the cooperative retail management business real property improvement district. The assessment is based on the degree of benefit derived by said businesses. The assessment shall be levied to pay for all improvements and activities within the cooperative retail management business property improvement district. The annual assessments will be collected in two semiannual installments by the finance department of the city.

(Ord. 94-06 § 1 (part), 1994).

5.06.040 ASSESSMENT RATE – FORMULA FOR ASSESSMENT.

The formula to be employed in order to determine the amount of each assessee’s assessment shall be as follows: each business real property owner in the district shall be assessed at a rate which shall, from time to time, be set by resolution of the city council.

(Ord. 96-17 § 1 (part), 1996: Ord. 94-06 § 1 (part), 1994).

5.06.050 REVENUE USE.

The revenue generated from the assessments shall be used to finance:

(1)    A hospitality program which will help promote a clean, safe, and friendly atmosphere for downtown shoppers, employees, and visitors through the provision of information regarding services, attractions, directions and businesses in the Pacific Avenue downtown area. The hospitality program, through the placement of hospitality workers on Pacific Avenue, downtown side streets and alley ways, will enhance property security by deterring vandalism, graffiti, and other acts against real property in the cooperative retail management business real property improvement district, thereby improving the public perception of the city’s downtown area and enhancing the safety and security of those who live, work and conduct business in the downtown area;

(2)    The establishment of a cooperative retail management association which will, among other things, determine and encourage the use of common hours among downtown businesses so as to enhance sales productivity, thereby increasing the rental revenues generated by the downtown business real properties and increasing the value of those properties; and

(3)    The maintenance of planters and plantings installed in the private space between downtown business real property parcels and the public right-of-way along Pacific Avenue, downtown side streets and alley ways, which will serve to enhance the appearance and value of downtown business real properties.

(Ord. 96-17 § 1 (part), 1996: Ord. 94-06 § 1 (part), 1994).

5.06.060 BUSINESSES SUBJECT TO ASSESSMENT.

The assessments imposed by this chapter shall be levied and collected from all persons or entities engaged in the business of owning business real property with frontage in the cooperative retail management business real property improvement district. Business real property is any improved or unimproved property leased, rented, held or otherwise used by the owner in a business or in any fashion to generate income.

(Ord. 96-17 § 1 (part), 1996: Ord. 94-06 § 1 (part), 1994).

5.06.070 ASSESSMENTS – SEMIANNUAL INSTALLMENTS.

The annual assessment imposed by this chapter is payable in two equal semiannual installments by the person who is liable for the assessment when the assessment is due. The assessment shall be imposed no more than two times per year with respect to any particular business real property. The first installment shall be due and payable in full on July 1st of each year. The second installment shall be due and payable on January 1st of each year. If an installment due date falls on a Saturday, Sunday, or holiday observed by the city of Santa Cruz, then the installment payment is due on the next business day. The first assessment will be due July 1, 1994.

Period

Due Dates

July – December

July 1st

January – June

January 1st

(Ord. 94-06 § 1 (part), 1994).

5.06.080 LATE PAYMENT PENALTIES.

If any assessment installment is not paid within thirty days after the due date, a ten percent penalty shall be added to the assessment installment, and if the assessment installment is not paid within sixty days after the due date, a twenty percent penalty shall be added.

(Ord. 94-06 § 1 (part), 1994).

5.06.090 COLLECTION AND ENFORCEMENT.

The director of finance may adopt such billing procedures as are appropriate for the prompt and effective collection of the cooperative retail management business property improvement district assessment. Collection of delinquent assessment installment payments may be made and enforced by the same procedures employed by the city for the collection and enforcement of the city’s business license tax, or by any other procedure provided or permitted by law.

(Ord. 94-06 § 1 (part), 1994).

5.06.100 ADMINISTRATIVE REGULATIONS AND DETERMINATIONS – APPEAL.

(a)    Administrative Regulations. The director of finance may adopt regulations consistent with the provisions of this chapter, whenever necessary or convenient, for the proper administration of the chapter.

(b)    Administrative Determinations. The director of finance, or the director’s authorized representative, shall have the administrative authority to review assessments which are contested by the person or party who is liable for the assessment payment. The contestant must notify the director of finance, or the director’s authorized representative, in writing within ten days of the assessment billing due date, that the assessment is being contested. The written notice shall set forth each and every legal and factual basis upon which the contestant relies in contesting the assessment and the contestant shall provide any pertinent documentation with the notice. The director of finance shall provide a written determination on the assessment contest within fifteen days of receipt of the contestant’s written notice.

(c)    Appeal. Any assessee aggrieved by any decision of the director of finance or the director’s authorized representative with respect to the amount of any assessment and/or penalties, may appeal to the city council in accordance with the provisions of Chapter 1.16 of the Santa Cruz Municipal Code.

(Ord. 94-06 § 1 (part), 1994).

5.06.110 INDIVIDUAL OR JOINT AND SEVERAL LIABILITY.

Individual or joint and several liability for payment of the assessments shall be as follows:

(a)    If the assessee is a corporation, the corporation shall be individually liable for payment of the assessments;

(b)    If the assessee is a limited or general partnership, then the partnership and each of the general partners shall be jointly and severally liable for payment of the assessments;

(c)    If the assessee is an individual doing business as a sole proprietor, then such individual shall be individually liable for the assessment;

(d)    If the assessee is any other form of business organization, then any individual or entity who may ordinarily be held responsible for the debts of such business organization shall be liable for the assessment, either individually, or jointly and severally, as may be appropriate under the circumstances.

(Ord. 94-06 § 1 (part), 1994).

5.06.120 CONTINUED APPLICATION.

The provisions of this chapter shall continue to apply to the Cooperative Retail Management Business Real Property Improvement District with the modified boundaries and increased assessments approved and levied by the city council for the district’s fiscal year 2024.

(Ord. 2023-09 § 1, 2023).