AGENDA #1g

MEMORANDUM

TO:                  Mayor and Town Council

FROM:            W. Calvin Horton, Town Manager

SUBJECT:       Use of Downtown Service District Fund

DATE:             March 22, 2004

INTRODUCTION

The purpose of tonight’s forum is to receive citizen comments on potential uses of Downtown Service District funds.

 

BACKGROUND

 

In July 1989, the Council established a Downtown Service District in response to requests from downtown business and property owners for enhanced promotional activities and supplemental services.  The Downtown Service District includes most properties with Town Center -1 and -2 zoning.  The Council has excluded property used only for residential services.

 

State law allows either the Town or an organization under contract with the Town to provide the supplemental municipal services funded from service district taxes.  Currently, the non-profit Chapel Hill Downtown Commission, Inc., provides services funded from the Downtown Service District tax through a performance agreement with the Town (Attachment 1).

 

The Council has set aside $10,000 of the current year’s $70,000 revenues.  The Council has not yet determined how these funds are going to be used.

 

The Mayor’s Downtown Steering Committee is working on further recommendations that would affect the use of the Downtown Service District funds.  A separate report will be forthcoming.

 

DISCUSSION

 

The present Downtown Service District tax rate is 6.2 cents per $100 of property value.

 

The current year (2003-04) tax levy is $70,000, based on a net tax base of $113,000,000.  We predict the same for the 2004-05 fiscal year.  We project revenue to be approximately $70,000 for both 2003-04 and 2004-05.

 

SERVICES

 

The Downtown Commission proposes to continue operations and to provide services to include the following:

 

• Marketing and promotion of the downtown.
• Operation of a Welcome Center.
• “Branding” campaign, including logo, slogan, and media campaign.
• Production of promotional materials, including brochures, a business directory, and newsletters.
• Assistance and communication to downtown businesses.
• Supplemental sidewalk cleaning.

 

DISTRICT BOUNDARY

 

We know of no boundary changes that are necessary at this time.  A map of the District is included in Attachment 2.

 

RECOMMENDATION

 

We recommend that the Council refer comments from tonight’s forum to the Manager for consideration in development of a budget proposal.

 

ATTACHMENTS

 

1.      2003 Downtown Commission Performance Agreement (p. 3).

2.      Downtown Service District Map, March 3, 2003 (p. 7).