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Venice Update

News of Venice, CA and Marina del Rey CA

Some Prospective BID Members Upset with BID Assessment; BID Assessment Questions Answered

Not everyone is happy with the Business Improvement District (BID) that is in the process of being formed for commercial and industrial property owners on the ocean front from Rose to Venice Blvd and the properties around 3rd and parts of Abbot Kinney.  (See John Okulick’s letter below.)  The BID does not include residentially-zoned property owners or local business owners.

At present the  owners have 51 plus percent of owners agreeing to  the BID via a petition and are awaiting a ballot count which will be announced by the City Clerk.  If 51 percent plus agree with the ballot, then a self-assessment will occur and a BID group board will be selected.

Assessment, which many do not like, was explained to Venice Update after questions were posed.  Explanations were just increased and story updated.   Perhaps, the explanations below will clarify some of the questions property owners have.  If there are other questions, ask under comments.  Update will get answers.

Taxation venice_000001

How is assessment determined?  Is it a percentage of square footage of property, or value of such, or the frontage of such?  

Assessment methodology: There are two benefit zones in the District. In Zone 1, assessable commercial, industrial and government-owned parcels shall be assessed $0.08 per square foot (SF) of building, $0.11 per SF of lot, and $29 per linear foot (LF) of frontage. In Zone 2, assessable commercial, industrial and government-owned parcels shall be assessed at $0.08 per square foot (SF) of building, $0.11 per SF of lot, and $14.50 per LF of frontage. The higher rate in Zone 1 corresponds to a higher rate of services in Zone 1.

Assessment will be 100 percent of commercial/industrial property owners in map. No residential. 

To be more precise: By law, zoning dictates eligibility for BID assessment, not use.   In the City of Los Angeles, only R4 and R5 zoned residential properties may be assessed (higher density properties that often have mixed use.) There are no R4 and R5 properties within the proposed Venice BID, so there are no assessed residential zoned parcels. There are commercial and industrial zoned parcels with partial or wholly residential uses that are assessed.

Do you have any idea how much each will pay and will it be annually or monthly and will it go directly to BID or via government hands from tax assessment? Then where does this money go? — Bank account for the BID?  

Assessments vary as described above in the methodology question.

In the first year, the full annual assessment will be billed by the City of Los Angeles, most likely in the fall of 2016. In subsequent years, the assessment will appear as a separate line item on the LA County Assessor property tax bill (property taxes are billed in two annual installments.)  The Assessor passes through the funds to the City of Los Angeles. The City contracts with a non-profit owners’ association to operate the BID. The City provides fiscal and administrative oversight and disburses funds to the BID to pay for BID services. The BID owners’ association shall establish a bank account solely for BID assessment revenue. If the BID has any other funds (e.g. donations, grant funds) those shall be kept separate from assessment revenue.

Will the BID people have a governing group and how will it be set up—pres, vp or board of 5, etc. 

If the BID is formed, a process will be established for forming a board of directors comprised of property owners in the BID. The Board should include a diverse range of owners with different uses, hours of operation, interests, etc.

Do you have any idea what the mission of the Venice BID is?  Any ideas regarding what they plan to do?

Clean & Safe Programs                                                                         73%

Examples include: bicycle, Segway, vehicular or foot patrols, sidewalk sweeping, pressure washing, landscaping, trash removal, graffiti/poster/sticker/gum removal and other related activities

District Identity & Special Projects                                                     7%

Examples include: Website, newsletter, promotional efforts, outreach programs

Administration & Management                                                           20%

Examples include: Personnel costs, city fees, formation costs, legal, accounting, insurance, office space, office supplies and equipment

Proposed BID

The red and blue areas within the black lines are the commercial and industrial properties involved.  These owners will comprise the  BID membership.

Comments (3)

  1. Paul

    The BID project positive effects will be a great improvement to everyone in Venice.

    • john okulick

      Taxing Westminister school, Venice Public library, and median strips, park areas for buisness improvent is criminal. Carl Lambert & Bonin have initiated this tax with no public input. Lambert has given money to Bonin and is being litigated by the city for converting rent stabilized apartments to a hotel illegally.
      Abbott Kinney has opted out. Do you want criminals legislating your city?

  2. Martha Hertzberg

    The goal of the BID is to clean up the Boardwalk–sounds good, but on close inspection the idea has terribly negative consequences for adjacent walk street residents. Maybe that’s why they didn’t want any of us knowing about their plans.

    1. The BID gives BID leaders dictatorial type power that can’t be easily rescinded.

    2. Boardwalk businesses want the homeless off the Boardwalk–efforts to do this are unfair, they are also likely to encourage the homeless to move up the walk streets where BID security won’t bother them. The Boardwalk merchants will have solved their homeless problem and put it on the doorstep of families.

    3. The BID will push for nighttime carnival type activity at the Boardwalk–imagine kids doing drugs up the walk streets through the night as they do now during the day, hiding from police, imagine performers making noise into the night–something we currently don’t have, and of course forget parking on Pacific Ave.

    4. There has been ZERO effort by Bonin’s office to inform residents–at the same time, he gerrymandered BID boundaries to include enough City owned property to give the CITY an over-sized voice in the BID election. Residents’ tax dollars will be supporting business interests and greater business profits. At the same time, the harmful fallout from their plans will fall on the adjacent walk street residents.

    5. People familiar with BID power (which resides only with BID leadership) in other parts of the City are well aware that adjacent residents suffer. It is terribly paternalistic to suggest that BID leaders know what’s best for us and that we should simply trust them to make rules for us. Last I looked the U.S. (and that includes Venice) was still a democracy. Residents need a say in something that will so dramatically impact our every day lives.

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