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49 <br /> compared to other financial institutions which are not <br /> permitted by law to participate . Mr. Green suggested' <br /> that Fireside would probably be willing to donate to the <br /> Improvement Area but objects to being part of it, and <br /> advised that those he represents wish to withdraw . <br /> Richard Koral, Castle Realty, 2602 Broadway, advised <br /> that he had instigated the requested withdrawal since <br /> he does not believe he benefits from the activities con- <br /> ducted for retail stores and that only three such, stores <br /> are now located in the subject Block. Mr. Koral sug- <br /> gested that City employees should, not be used to collect <br /> the fees and administer the funds of the Area . It was <br /> explained that the State Streets and Highways Code pro- <br /> vides that the fee be collected by the City and that the <br /> business license tax be the basis for determinationāˆŽ of <br /> the fee ; the funds are collected by the City and turned <br /> over to the Downtown Association to administer for the <br /> Area, while the City provides the audit function'. <br /> Discussion followed and Mr. Koral replied to questions <br /> concerning possible benefits accruing to any business <br /> located on Broadway by increased retail store traffic ; <br /> benefits to non-retail business from the employees of <br /> retail stores located in the area ; possible inequities <br /> in the formula for determining appropriate fees ; the <br /> lack of success experienced by similar districts which <br /> attempted to operate on voluntary donations of funds; <br /> the business categories anticipated when the Improvement <br /> Area was established; and the fact that Mr. Koral did not <br /> discuss his problems with the Downtown Association be- <br /> fore approaching the Council with the request for with- <br /> drawal. <br /> In response to question, City Attorney Schricker advised <br /> that at, Mr. Koral ' s request he had told him only about <br /> the technique available if a block wished to withdraw <br /> from the Improvement Area . <br /> Norm Kaufman, 2205 Broadway, Formerly 2650 Broadway, <br /> disagreed with comments made by Mr. Koral, stating that <br /> merchants in the 2600 Block do benefit from District <br /> activities . Mr. Kaufmann, stated that the parade and <br /> bicycle races could not be conducted' on the 2600 Block <br /> because El Camino Real is a State highway and traffic <br /> cannot be interrupted there . He reported' that downtown <br /> businessmen had believed inclusion of the subject Block <br /> in the City Downtown beautification project might en- <br /> courage the proprietors of businesses in the Block to <br /> become more active in their own behalf. Mr. Kaufman <br /> recommended that the withdrawal request be postponed <br /> until the City project for Broadway is completed and <br /> District members can get together to work out any <br /> special problems that might exist for those in the 2600 <br /> Block . <br /> Dread J. Rhymes, 2650 Broadway, Redwood Pastry Shop, sug- <br /> gested the 2600 Block is a slum and an unsafe area and he <br /> regrets moving there . Mr. Rhymes stated he favors a mer- <br /> chants association for the downtown area, but does not <br /> wish to be forced to contribute to a district which he <br /> -3- <br /> ± Reg.Mtg. <br /> 6/23/75 <br />