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9.B. - Page 5 <br /> (i) It permits the Council to initiate proceedings to establish a district upon <br /> receipt of a petition signed by property owners who will pay at least 30% <br /> of the proposed assessments, rather than requiring that petitions be <br /> signed by owners who will pay at least 50% of the assessment; <br /> (ii) It provides that no one property owner may account for more than two - <br /> thirds of the 30% requirement, rather than providing that no one property <br /> owner may account for more than three - fifths of the 50% requirement; <br /> (iii) It permits districts to be established (and subsequently renewed) for <br /> periods of twenty years, in contrast to state law which allows only a five <br /> year initial period and ten year renewals; and <br /> (iv) It eliminates a restriction contained in the PBID Law that prohibits <br /> assessments from being levied on properties zoned solely for residential <br /> or agricultural use. <br /> The Ordinance also makes it clear (i) that assessments can be used to fund the <br /> formation costs of a district and (ii) that the City Council can choose to advance funds <br /> so that a district, once established, can begin operations before the collection of the <br /> assessment through the property tax system <br /> In order to avoid confusion with districts formed under one of the laws applicable <br /> statewide, districts established under the proposed Ordinance would be referred to as <br /> Community Benefit Improvement Districts. <br /> Only the procedural ordinance is before the Council at this point. If the property owners <br /> in the downtown area (or some other area) petition for the establishment of a <br /> Community Benefit Improvement District, the details of the proposed district (such as its <br /> boundaries, the amount of the proposed assessment, and the services to be funded) <br /> would be presented to the Council in a resolution of intention. If the Council chooses to <br /> adopt such a resolution of intention, then ballots would be sent to affected property <br /> owners. If the balloting shows approval of the assessment, then the Council would have <br /> the option, but not the obligation, to establish the proposed district. <br /> Typically, when a district is established, the local property owners create a non - profit <br /> corporation and the city contracts with that nonprofit to provide services. Under such an <br /> arrangement, the assessment district is a program of the city. The non - profit is merely a <br /> contractor hired by the city to administer that program. <br /> Benefits of CBDs <br /> • A CBID can be a unifying mechanism for all stakeholders in a business district <br /> or mixed use community to voluntarily work toward a common goal - that of a <br /> Page 5 of 9 <br />