ADMINISTRATIVE REPORT

CC File No. 8307
Meeting Date: November 30, 2004

TO:

Vancouver City Council

FROM:

Director of City Plans

SUBJECT:

Approval of Council Initiative - Commercial Drive BIA Renewal

RECOMMENDATION

A. THAT Council re-confirm the Commercial Drive Business Society as sponsor for the Commercial Drive BIA.

B. THAT Council approve the commencement of a Council Initiative to re-establish (renew) the Commercial Drive BIA, for a second five-year term commencing April 1, 2005; AND THAT Council forward the application of the Commercial Drive Business Society to a hearing of the Court of Revision.

C. THAT the City notify property owners and tenants within the area, outlined in Appendix A (LIMITED DISTRIBUTION - ON FILE IN CITY CLERK'S OFFICE) of the proposed BIA renewal and levy.

D. THAT Council approve a 5 year (2005 -2010) funding-ceiling of $1,290,375 for the Commercial Drive BIA, subject to Council approval of the renewal at the Court of Revision.

GENERAL MANAGER'S COMMENTS

COUNCIL POLICY

Council policy for the renewal of a BIA was approved on July 30, 1992 as follows:

A BIA is renewed (re-established) by Council Initiative process; property owners and commercial tenants receive notification of the Initiative. The renewal generally will not be approved if one third or more of the owners, representing one third of the assessed property value, or one third of the tenants, counted separately, are in opposition.

Section 462 of the Vancouver Charter was amended on September 23, 1998 to permit BIA renewal terms of up to 20 years. Council has exercised its authority under the amendment by approving ten year renewal terms for the Mount Pleasant and Downtown Vancouver BIAs.

PURPOSE

The Commercial Drive BIA was approved in 2000 for an initial 5-year term which expires March 31, 2005. The BIA must now be re-established (renewed) for a further term to continue to operate. The Commercial Drive Business Society (CDBS) has completed the first step in the BIA renewal process. The purpose of this report is to commence the second step, which is to re-confirm the CDBS as BIA sponsor, to approve a Council Initiative to renew the BIA, to forward the renewal application to the Court of Revision, and to approve the proposed 5 year funding ceiling.

BACKGROUND

The Commercial Drive BIA was one of five BIAs established under the Council Initiative process in 2000, along with the Chinatown, Fraser Street*, Marpole and Strathcona BIAs. The Commercial Drive Business Society wishes to renew the BIA for a second 5 year term (April 1, 2005 - March 31, 2010). No boundary changes are proposed at this time.

*The Fraser Street BIA has been inactive, has not received funding, and will not be renewed.

DISCUSSION

The BIA boundary comprises Commercial Drive between Venables and Grandview Cut. A map of the boundary is attached as Appendix A.

The CDBS proposes a Year 1 renewal budget of $242,600, representing an annual levy rate of $2.48 per $1,000.00 of assessed property value. A copy of the proposed budget is attached for information as Appendix B (LIMITED DISTRIBUTION - ON FILE IN CITY CLERK'S OFFICE). If Council approves the Commercial Drive BIA renewal at the Court of Revision, staff will report back for approval of the Year 1 budget along with all of the other BIAs' 2005 - 2006 budget requests.

The proposed funding-ceiling of $1,290,375 is the maximum amount that may be levied over the Commercial Drive BIA renewal term, and reflects an increase of 133.5% over the previous 5 year ceiling.

Membership Outreach Activities

BIA outreach began in April 2004 with a door-to-door membership drive, resulting in the addition of 163 new CDBS memberships, a 64% increase. As a measure of general support for the BIA, the CDBS counts 255 out of 442 BIA property owners and merchants (57.7% of total) as members of the Society.

In May, correspondence regarding BIA renewal was sent to all 442 property owners and business tenants within the BIA (139 property owners and 303 tenants). The enclosed materials included background information about BIAs, an explanation of the BIA renewal process, and an overview of BIA accomplishments over the current 5 year term. The package also included a Renewal survey asking respondents to priorize BIA activities for the proposed renewal period. A total of 44 survey responses were received (10% of total property owners and business tenants). The survey results provided input for development of the Renewal proposal and budget.

On July 12 2004, the CDBS held a renewal outreach meeting for property owners and businesses to discuss renewal issues. A total of about 30 people attended the meeting, including CDBS Directors, and the City's BIA Coordinator, who explained the BIA renewal process. The meeting was an opportunity for the CDBS to augment survey returns by polling each survey question by show of hands. CDBS committee chairs outlined proposed programs, and introduced 2005-2010 budget allocations for discussion. There was no evidence of opposition to the proposed renewal.

In late August, the CDBS formally notified all of the property owners and business tenants of its upcoming September annual general meeting (AGM). The AGM package included a brochure highlighting the results of the survey and outreach meeting. Two alternative renewal budgets (`visionary' vs. `status quo') were put forward for consideration. The CDBS AGM was held on September 28, 2004. 38 voting members (8.6% of total property owners and business tenants) were in attendance at the AGM, including 8 property owners (5.8% of total owners) and 30 business tenants (9.9% of total tenants). Two proxies were also exercised. BIA renewal, a new 5-year funding ceiling, and 2005-2006 budget were approved unanimously. The approved budget and 5-year funding levels endorse the CDBA `visionary' budget, which proposes an approximate doubling of BIA expenditures over the renewal term.

Based on the AGM results and member input received to date, the CDBS believes that the 2005-2010 renewal programs, the proposed 5-year funding ceiling, and the Year-1 budget are generally supported. The CDBS formally applied to the City for renewal of its mandate on November 4, 2004. A copy of their application letter, a further letter outlining their outreach process, and documentation of their outreach material, is attached as Appendix C (LIMITED DISTRIBUTION - ON FILE IN CITY CLERK'S OFFICE).

Staff Comments - Membership Outreach and Support

Staff are satisfied that the CDBS has notified all commercial property owners and tenants within the proposed renewal area. The CDBS generated a reasonable return rate for its Renewal survey (10%). The relatively high level of support for the association (57.7% of all property owners and merchants are CDBS members) suggests general support for BIA renewal, as does the unanimous renewal vote at the Annual General Meeting. Although fewer than 10% of BIA property owners and businesses were represented at the meeting, the number in attendance was well above the required quorum of 15 present in person, and better than average for BIAs. As the participation rate at BIA AGMs is generally low, AGM results are not necessarily an indicator of general property owner/merchant support for renewal.

The CDBS reports that as of the date of this report, no property owners or businesses have contacted the BIA to express opposition to the renewal proposal. Staff have received no telephone calls or correspondence from individuals expressing opposition or concern regarding the renewal proposal.

CONCLUSIONS

The Commercial Drive Business Society is requesting that Council consider approval of its proposed 5 year renewal term and 5 year funding ceiling of $1,290,375, and has asked that their application be forwarded by way of Council Initiative to a Court of Revision. The results of CDBS outreach activities indicate minimal opposition at this stage in the process. If Council approves the Commercial Drive BIA renewal at the Court of Revision, staff will report back for approval of the Year 1 budget along with all of the other BIAs' 2005 - 2006 budget requests.

LINK TO APPENDICES A, B AND C

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