DOA Management Plan

8/6/2019 DOA Management Plan

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FINALPLAN

MANAGEMENTDISTRICTPLAN FOR THEDOWNTOWN OAKLAND

COMMUNITY BENEFITDISTRICT

OAKLAND,CALIFORNIAPrep ared pursuant to the City of Oak land s

Business Improve me nt Manag ement Distric t Ordinanc e of 1999# 12190, Under Munic ipa l Cod e Chapter 4.48

for the Downtown Oakland Business and Property Owners

Prepared for:

The Oak land City Counc ilThe Com munity Econom ic Developm ent Agency - City of Oakland

by

Marco Li Mandri, PresidentNEW CITY AMERICA INC.

(888)356-2726

JUNE18,2008

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DOWNTOWN OAKLANDMANAGEMENTDISTRICTPLAN FOR THENEW


FINALPLANJUNE 2008

(Formed under the Business Improvem ent Managem ent Distric tOrdinanc e # 12190, Chapter 4.48City of Oakland Munic ipal Code )

SECTION 6 - MANAGEMENTDISTRICTPLAN,DOWNTOWN OAKLAND COMMUNITY BENEFITDISTRICTPLAN

1. MAP OF THEDISTRICT

2. NAME OF THE PROPOSED DISTRICT

3. DESCRIPTION OF BOUNDARIES OF THE DISTRICT

4. THE IMPROVEMENT AND ACTIVITIES PROPOSED EACH YEAR

5. TOTAL ANNUAL AMOUNT PROPOSED TO BE EXPENDED FOR IMPROVEMENT,

MAINTENANCE AND OPERATIONS

6. THE PROPOSED SOURCE(S) OF FINANCING INCLUDING THE PROPOSED METHODAND BASIS OF LEVYING THE ASSESSMENTS

7. THE TIME AND MANNER OF COLLECTING THE ASSESSMENTS TERM ANDDISESTABLISHMENT PROCEDURES

8. ADVISORY BOARD AND MANAGEMENT OF THEDISTRICT

9. ENGINEERSREPORT

APPENDIX:

PARCEL LIST

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DOWNTOWN OAKLAND COMMUNITY BENEFITDISTRICT(CBD)MANAGEMENTDISTRICTPLANEXECUTIVESUMMARY

In the summer of 2007, business and property owners in Downtown determined

that they wa nted to improve Downtow n Oa kland. With ove r 20,000 em ployeesworking in and a round City Ha ll, the Fed eral Center and Sta te Build ing ,Downtown Oakland needs additional services that the City does not have theability to p rovide. In response to this situa tion, the Downtown p rop erty ownerspoo led their funds to hire New City Americ a , Inc . to investiga te a nd form a new Dow ntown Oa kland Co mm unity Benefit Distric t . This Ma na gem ent Distric tPlan is the result of tha t 8 month e ffort.

The intent o f this effort is to imp rove the pub lic rights of wa y for all who work, live ,c onduc t b usiness, rent p rop erty in, or visit Downtown.

Downtown Oakland business and property owners have not been organizedinto a c ohesive, effec tive g roup for a very, very long time . The e ffort to fo rm thisCBD is c onsistent w ith wha t business and prop erty owners have done throug houtOa kland and San Franc isc o o ver the p ast five ye a rs.

Currently, simila r Business Improve ment Distric ts or Community Bene fit Distric tsare operating in Rockridge, Lakeshore, Montclair, Fruitvale, Laurel,Tem esc a l/ Teleg raph and the Korea town/ Northga te d istric ts. Efforts a re c urrent lyunderway in Lake Merritt/Uptown and under consideration in several otherc om me rc ia l c orridors and ne ighborhood s of Oa kland .

The issues of sec urity, ma intenanc e o f orde r, c leanliness and sa fety a repa ramo unt to a ll who w ork in, conduc t b usiness in and visit Downtow n Oa kland.Ma ny of us ha ve see n the ima ge o f this d istrict, as we ll as the ima ge o f Oa kland ,as a w hole, ta rnished by rec ent events dep ic ting a troub led , dangerous a rea .

These a re issues tha t cannot be resolved by the City of Oa kland a lone, butra ther must be hand led a t the community leve l. The proposed Dow ntow nOakland CBD would be funded through an assessment levied on each andevery parc el in the bound aries of the d istric t. Affec ted prop erty owne rs, throug h

the Dow ntow n Oa kland CBD Stee ring Com mittee, has dete rmined the exac tc osts of fund ing these spec ia l benefit servic es.

All properties, public, private, commercial, residential and non-profit would beincluded in this new assessment district and all will be required to participatefinanc ia lly up on ap proval.

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Prioritized Spec ial Benefits Preferred by Supporters of District:

In October 2007, a mailed survey was sent to all property owners in the studyarea for the Dow ntown Com munity Bene fit Distric t. The fo llow ing spec ial benefitservices were prioritized by p roperty owners as a result of this survey:

# 1. Fund ing sec urity servic es for Downto wn Oa kland o ver and above theOakland Police Department;

# 2 Fund ing spec ia l bene fit servic es tha t p rov ide amb assador servic es toc rea te a sa fer wa lking environm ent in the p ub lic rights of way;

# 3 Altering the med ia po rtrayal of Oa kland to a more positive ima ge whic hwill imp ac t p rop erty values in the area ;

# 4 Sponsoring prope rty ow ner funded events tha t will imp rove the identity ofDow ntown Oakland , as well as b ring p ositive at tention to the d istric t;

Purpose o f new distric t:Oakland is the largest City in the East Bay and the focal point of transportationlinkages throughout the reg ion. Daily, it is the w orkp lac e fo r tens of tho usand s ofpriva te a nd pub lic employees tha t serve this vita l c ore a rea .

Downto wn Oa kland is the hub of c om merc e for the entire East Bay c onsisting ofthe City/Sta te/ Fed eral build ings, Frank Ogawa Plaza , City Ce nter, CloroxCorporate Headquarters, University of California Office of the President, theDowntown Ma rriott, the restored Old Oa kland b loc ks, the Tribune Build ing , theRotund a Build ing , the Union Bank build ing , the Press build ing , grea t a rc hitec tura lbuildings along the east side of Broadway and a great mix of small and large

build ings a like.

Downtown Oakland is also the center of LEED certified buildings within thereg ion, with ma ny new d eve lop me nts p lanned by the Shorenstein Comp any,SKS Inve stments, along with histo ric restora tion p rojec ts of o lde r office build ingsinto lofts and residential c ondos. Downtown Oa kland still ma inta ins a g rea taccumulation of historically significant architectural masterpieces, rivaling thebuild ings found throug hout Downto wn San Franc isc o a nd the Broa dwa yCo rridor in Downtown Los Ange les.

The primary need for this CBD or spec ial services d istric t is to respond effec tivelyto the issue of crime, disorder and the problematic image of DowntownOakland.

Ma rket ra te, new residential land uses have not b een built yet in the Downto wnCBD distric t, but they are no t far off. The d esirab ility of loc a ting a business orresidential complex in Downtown is growing, but Downtown Oakland suffers aseve re image p rob lem . Currently, mo st of Downtow n is a 5 da y pe r we ek, 40

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hour per week district, with most businesses closing down on the weekend andin the evening hours.

The Downtown CBD see ks to reverse this poo r image and bring life into thed istrict. The CBD see ks to exped ite the rev ita liza tion p roc ess and beg in the

turnaround o f the p ercep tion of this a rea . Through the prop osed assessme ntsgene ra ted in the d istric t, spec ial bene fits will be used fund servic es over andabove those c urrently provided b y the City of Oa kland . The CBD will a lso ha vea Distric t Ma nage ment non-profit c orpora tion w hic h will ove rsee and d irec t thea lloc a tion o f those fund s to m aximize the d elivery of add itiona l services.

The spec ia l bene fits funde d b y the Downtow n Oa kland CBD would include , butnot b e limited to:

1. Reg ular sidew a lk swe ep ing / c lea ning and stea m c lea ning of sidew alks;System atic trash emp tying, distribution o f ma ny mo re t rash c ans tha n

wha t c urrently exists in the d istric t;2. Working w ith BART PD, OPD, AC Transit and other loc a lly based sec urityfirms to c oo rd ina te a ll sec urity need s throughout the d istric t;

3. Fund ing experienc ed sec urity servic es to pa trol the d istrict six da ys perwee k, in e ight hours shifts, 12 noo n 8:30 p.m.

4. Providing funding for enhanced landscaping and beautificationefforts;

5. Quick remova l of g ra ffiti;6. Inc rea sing reta il c om me rc e in the d istric t, particula rly along Broa dway;7. Fund ing b usiness a ttrac tion strateg ies;8. Monitoring the entrance and exits of the 12th Stree t BART as demand

requires.9. Develop ment and m aintenanc e of dynamic public spa c es or squa res

to a llow em ployee s and visitors to enjoy the area ;10. Provide a mb assador servic es to c rea te a sa fer wa lking environme nt for

day and evening a c tivities.11. Branding the district through new programs and partnering with other

groups for holida y eve nts;12. Taking advantage of the d istric t s unique reg iona l transportation

connections13. Creating a g ree n stree t ima ge in Dow ntow n. This might inc lude

bette r uniforme d landsc aping with trees, hang ing p lants and sidew alkplanters which w ould be ma intained by the distric t ma intenanc e c rew ;

14. Partnering with the Lake Merritt/Uptown CBD and any of the CBDs tobe formed in the general Dow ntown a rea to d etermine best prac ticesand mutua l contrac tors for co st e ffic ienc ies;

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The d istric t is envisioned to be estab lished for 10 yea rs c om me nc ing Janua ry 1,2009. Provisions for annua l d isesta b lishment are ava ilab le if the p roperty ow nersno longer de sire to fund the spec ia l servic es a rticulated in this p lan.

Property Variables to Be Assessed :

Three prop erty va riab les will be used to fund the spec ial benefit servic es of thed istric t. Those va riab les will inc lud e: lot or pa rc el size, build ing squa re foo ta ge,and linea r fronta ge. In ad d ition, b ene fit zone s will be used to d ete rmine thefreq uenc y of be nefits rec eived. There w ill be a p rima ry benefit zone and asec ond ary benefit zone .

Two excep tions to this me thodolog y will be:

1. Single family residential pa rc els will not be assessed for linear frontage orlot size. This residentia l assessment m ethodology a pp lies to a ll sing le fa milyresidential unit parcels, or condos that currently do not exist, but may be builtwithin the term of the d istric t. These single family residentia l unit pa rc elassessme nts will fund enhanc ed bea utific a tion gea red to the residents as well asevening security needs, seven day per week, spot sidewalk cleaning,placement of pet waste receptacle stations and other special benefit servicesdesired by the new c ond o owne rs of the CBD.

Ground floor or commercial/retail uses or commercial condos on the groundfloor of a residential condo building, will be assessed similar to all other

c om me rc ia l properties, that is, for the c om me rc ia lly used lot size, linea r frontageand ac tual building squa re foota ge .

2. Parking square foo tage within the wa lls of a build ing on a sing le parc el,that predominantly serves the tenant needs of that building, will have therelevant building square footage devoted to parking subtracted from theove ra ll build ing square foo tage o f the b uild ing .

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Total First Yea r Budget for the Downtown CBD:The follow ing data forms the basis for p roperty a ssessments in the first year of theprop osed CBD:

Property

Variable

Benefit Zone 1

Tota l Square orLinea r Footag e

Benefit Zone 2

Tota l Square orLinea r Foo tag e

Amount

Generated fromProperty

Variable, Zone 1

Amount


Variable, Zone 2

BuildingSquare

Footage

3,676,188 sq .feet

1,928,447 sq feet $ 264,355.00 $ 112,641.00

Pa rc el Lot

Size

1,053,717 sq .

feet

340,526 sq . feet $ 144,918.00 $ 46,832.00

LinearFrontage

15,604 linea rfeet

4,589 linear feet $ 255,593.00 $ 64,769.00

Sing le

FamilyResidentialUnit Parcels

0 sq . feet 0 sq . feet $ 00.00 $ 00.00

Sub - Tota l $ 664,866.00 $ 224,242.00

Prope rty Variab le Tota l Square or Linea rFoo tag e, both Bene fit Zones

Amount Generated fromBoth Benefit Zones

Building Squa re

Footage

5,604,635 sq . feet $ 376,995.00

Parcel Lot Size 1,394,243 sq . feet $ 191,750.00

Linear Frontage 20,193 linea r feet $ 320,363.00Sing le FamilyResidential

Unit Parcels

0 sq . feet $ 00.00

Tota l $ 889,108.00

Benefit Zones:There w ill be two bene fit zone s in the Downto wn Oa kland Comm unity Bene fitDistric t.

Zone 1 is anticipated to derive the greatest benefit from the assessments

gene ra ted from the d istric t. These pa rc els will bene fit from the bea utific a tionfunding, have greater freq uenc y of side wa lk sweep ing and stea m c lea ning andfrom the district identity services funded from the districts special benefitservices.Zone 1 pa rc els inc lud e a ll of tho se:

betw een Broa dway and Franklin Stree t, north of 9th Street, up to 17thStreet;

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a ll of the p arc els ea st of San Pab lo Avenue, up to Franklin Stree t, south of17th Street;

a ll of the p a rc els betw een 16th and both sides of 17th Stree t, be twe en ClayStree t a nd Broa dwa y;

all of the parcels south of 11th Street, up to 8th Stree t, betw een

Washingto n Stree t and Broa dway, within the b oundaries of the d istric t;

Zone 2 is anticipated to derive less special benefit from the assessmentsgene ra ted from the d istric t. These pa rc els will a lso benefit from thebeautification funding, have a lesser frequency of sidewalk sweeping andsteam cleaning and do not require as many services from the district identityc om ponent of the d istric t. Zone 2 inc ludes those p arc els defined by:

The Shorenste in Com pany, Clorox Corpo ra tion, Brandywine Rea lty a ndRReef complexes fronting along the west side of Broadway from 11th

Street no rth to 14th

Stree t, and running w estward a lmo st to Clay Stree t,and; Oakland City Hall, the entire Frank Ogawa Plaza and the City

Ad ministra tive Build ing a t 250 Frank Og awa Plaza and Clay Stree tGarage;

Apportionment of Property Variables to Fund Various Special Benefit Services byBenefit Zone :100% of the linea r fronta ge assessme nts ($ 320,363.00) and a ll of the parc el or lotsize assessments ($191,750.00) will fund the Sidewalk Operations, Beautificationand Order services. 100% of the lot size a ssessments will be equa lly apportioned

to all parcels throughout the district to pay for first year special benefit securityservices. Linea r fronta ge assessments will pay for sidewalk c leaning a t varyingfrequencies in Benefit Zones 1 and 2 and will be apportioned based upon thefreq uenc y of services app lied based upon the two bene fit zones.

Build ing assessments will fund the fo llowing servic es:

a . Ten p er c ent o f the d istric t b uild ing assessments ($ 39,887), will be usedto fund the equipment needs of the Sidew alk Ope ra tions,Beautification and Order component of the budget throughout the

entire d istric t;b . Building assessment will also fund District Identity special benefit

services, with Benefit Zone 1 paying 85% of the first yea r distric t identitycosts, ($90,000), and Benefit Zone 2 paying 15% of the District Identityservices;

c . The ba lanc e of b uild ing assessments ($247,108) will fund theadministrative and contingency components of the budget and willbe a pportioned eq ua lly to a ll build ing square foo tage in Bene fit Zone 1and 2.

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Annual First Yea r Cost and Budget:The a nnua l first yea r bud get is $ 889,108.00. Eac h pa rc el has bee n ana lyzed todetermine proper category of use and therefore benefit as it applies to theservic es of ea c h benefit zone. The summa ry of the 2009-19 op erating bud getfor the Downtow n Oa kland CBD inc ludes the ten year p rojec tion, is p rovided in

this p lan.

FIRSTYEARANNUAL BUDGETBY CATEGORY OFSPECIAL BENEFITSERVICES

PROGRAM OR ACTIVITY FUNDED BY THEDOWNTOWN OAKLAND


APPROXIMATE% OF FIRST

YEAR ANNUALBUDGET

ESTIMATED ANNUALCOSTS(FIRSTYEAR FUNDING SOURCE)

Sidewa lk Op erations, Bea utific a tionand Order

62% $ 552,000.00

(100% of the Linear fronta ge

and 100% of the Lot Size

assessments, plus approx.

10% of the Build ing squa re

footage assessments)

Distric t Identity and Signage 10% $ 90,000.00(Build ing Squa re Foo ta ge

assessments, Benefit Zone 1

pays for 85% of these

services)

Enha nc ed Residential Bea utific a tion

and Evening Sec urity (fo r future usewhen c ondos are b uilt in the d istric t)

0% $ 00.00

(Single Family ResidentialUnit Parcel assessments)

Administration/CorporateOperations

20% $ 180,000(Build ing square foo ta ge

assessments)

Conting enc y/ City Fees/ Reserves 8% $ 67,108.00(Build ing square foo ta ge

assessments)

OTAL 100% $ 889,108.00

Annua l Costs (First Yea r)The first yea r annua l c osts, by prop erty variab le, to fund the spec ia l benefitservic es of the prop osed Downtow n Oakland Comm unity Bene fit Distric t a re asfollows.

Property owners and organizations that funded the formation and advance

services programs of the CBD shall be entitled to be repaid for their verified

c ontributions during the first o ne or two yea rs of the d istric t, from the assessment

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d istric t revenues. Ad vanc e spec ia l servic es and forma tion funding sha ll not

exce ed 25% of the first yea r assessment reve nues.

First Year Annual Costs for the Downtown CBD by Benefit Zone

Property Variable First Yea r Annual CostBenefit Zone 1

First Year Annua l Cost,Benefit Zone 2

Build ing Squa re Foota ge(Non-residential)

$ 0.07191 per squa re foot $ 0.05841 per squa re foo t

Lot or Parc el size $ 0.13753 per squa re foot $ 0.13753 per squa re foot

Linea r Fronta ge $ 16.38 per linear foot $ 14.114 per linear foo t

Single Family Reside ntia lUnit Parc el - build ingsquare foota ge only

$ 0.30 pe r square foo t o flivable residential buildingspace

$ 0.30 pe r square foo t o flivab le resident ia lbuild ing spac e

A commercial property owners assessment, regardless of Benefit Zone, isdetermined by adding the linear frontage costs plusthe lot size costs plusthebuild ing size c osts. In la ter yea rs of the term of the Dow ntown C BD, when theyhave been constructed in the district and added to the database, a singlefamily residential unit parcel property owners assessment will be determined bymultip lying the livab le build ing square foo tage by the prop osed assessment.

Administration:The d istric t sha ll be m anage d by a yet-to-be-formed non-profit c orpora tiondistric t ma nag eme nt c orpo ra tion c alled the Downtown Oa kland Assoc iation ofOa kland . The new Board of Direc tors will c onsist of p roperty ow ners, businessesand residents who are a ssessed within the d istric t. This entity sha ll ente r into acontract with the City of Oakland to administer the district on behalf of allproperty owners.

Com me ncem ent, Termination and Disestablishment:The d istric t s first a ssessments will be c ollec ted with 2008-09 prop erty tax cyc le,with the first insta llme nts due in Dec em ber 2008. The d istric t would c om me nc eopera tions Janua ry 1, 2009 and expire on Dec ember 31, 2018. Provisions in thelocal enabling ordinance provide for annual disestablishment procedures,

based upon the same method tha t estab lishes the d istric t.

Establishment Proc ess:The d istric t is estab lished pursuant and in ac c orda nc e w ith the loc a l ena b lingordinance, as well as assessment mail ballot procedures as laid out in the 218Om nibus Ac t of 1998.

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A p etition rep resenting a minimum o f 30% of those p rop erty assessme nts whichwill pay into the district, or $ 266,732.00, will be submitted to the City in mid April,trigg ering the a ssessme nt ba lloting p roc ed ure. Onc e the ba llots a re ma iled out,the Downtown Oakland CBD will be established if the weighted majority ofreturn b a llots end orse the CBDs forma tion.

Annual Adjustments:The Boa rd of Direc tors of the new District Mana gem ent C orpo ra tion will beg iven the o p tion to inc rea se the assessments annua lly based upon the A lamedaCounty regional Consumer Price Index published indicator orby an am ount notto excee d 5% from the p rev ious yea r s assessme nts. The Downtown OaklandCBD Management Corporation shall have the right to shift priority services

withinthe five spec ia l bene fit c a teg ories as they feel ap p rop ria te a nd a s long astho se shifts in services remains c onsistent w ith the intent o f the p lan. The Distric tMa nagement Corporation Boa rd sha ll also have the right to shift up to 10% pe r

yea r from c a tegory to c ate go ry, ea c h yea r, as need s c hang e w ith the p rioritiesof spec ia l bene fits.

The rec om mendations for any increase sha ll be submitted to the City Counc iland such increases will be implemented upon approval of the Oakland CityCouncil.

First Installment of Assessments:The Dow nto wn Oa kland CBD assessments appea r for the first time on the 2008-09 p roperty tax b ills. The a ssessments are c ollec ted w ith the p roperty tax b illsdistributed by the Alameda County tax assessor. Once collected with the

County property tax bills, the assessments for the Downtown Oakland CBD willbe sent to the C ity of Oakland. The City of Oa kland the n enters into a c ontrac twith the d esigna ted Distric t Ma nage ment Co rporation of p rop erty ow ners withinthe Downtown Oakland CBD to manage the district and deliver special benefitservices to the assessed property owners.

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DOWNTOWN OAKLAND COMMUNITY BENEFITDISTRICTMANAGEMENTPLAN - 2008

1. MAP OF THEDISTRICT:

A ma p of the p rop osed Downtow n Oa kland C BD is found o n pag e 14.

2. NAME OF THEPROPOSED DISTRICT:The name of the prop osed spec ia l benefits d istric t is the Downto wn Oa klandCo mmunity Benefit Distric t o f 2008 .

3. DESCRIPTION OF THE BOUNDARIES OF THEDISTRICT

Boundaries: The follow ing text will de fine the bound aries of the Downto wnOa kland Comm unity Benefit Distric t:

Northern Boundary: All parc els on both sides of 17th Street sta rting a tthe ea stern side o f the inte rsec tion of 17th Stree t and San Pab lo Avenueand running eastward to the western side of the intersection of 17thStree t and Franklin;

Southern Bound ary: The parc els on the north side of 8th Streetbetween the eastern side of the intersection of 8th Street a nd

Washingto n Stree t running e astward to the western side o f theintersection of Broadway and 8th Stree t. Then moving up one bloc knorth and beginning at the northeastern corner of the intersection ofBroa dw ay a nd 9 th Stree t, running e astward a long the north side o f 9thStree t to the end of the Ma rriot Courtya rd pa rc el.

Western Boundary: All of the pa rc els on the ea stern side of theintersec tion of San Pab lo Avenue, 17th Street, and Clay Street, runningsouthward a long the east side o f Clay Stree t to the C ity parkinggarage a t the northea stern pa rc el of the intersec tion o f 14th Street andClay Stree t. The w estern bo und ary then runs a long the w estern side o fthe parcels fronting along the west side of Broadway at theintersection of 14th Stree t a nd Broa dwa y, running southward to theparc el at the northwestern co rner of the intersec tion o f Broa dwa y and11th Street;

Easte rn Bound ary: All of the parcels beginning at the southwestc orner pa rc el of the intersec tion o f 11th St. and Franklin Street, running

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northward a long the w est side o f Franklin Stree t to b oth c orner pa rc elsa t the western side o f the intersec tion of Franklin Stree t a nd 17th Street.

Distric t Boundary Rationa le:

The p rop erty uses within the bound aries of the Downto wn Oa kland Comm unityBenefit District are a mix of office, retail, entertainment, educational,ec umenica l, c ivic , go vernmenta l and pa rking. Servic es and imp roveme ntsprovided by the Distric t a re prima rily d esigned to p rovide spec ia l benefits to a llpa rc els based upon the ir loc a tion w ithin the b ene fit zones of the d istric t.

Future single family residential unit parcels will fund enhanced beautificationand evening security special benefit services which will be responsive to theirda ily need s.

Table 3 - AStree ts and Ad dress Series for Parce ls inc luded in theDowntown Oa kland Com munity Benefit Distric t

The fo llow ing c ha rt has bee n inc luded to m ake it ea sier for property owners inthe prop osed District to ident ify their parc els.

Street Ad dress Series

8th Street 466 478

9th Street 467 492

10th Street 469 493

E. 12th Street 412

13th Street 401 428

14th Street 405 505

15th Street 401 449

16th Street 510 551

17th Street 426 540

Broadway 801 1701

Frank Og awa Plaza 1 350

Franklin Street 1111 1701

San Pab lo Avenue 1601 1728

Telegraph Avenue 1611 1701

Washing ton Stree t 806 922

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1414


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4. THEIMPROVEMENT AND ACTIVITIESPLANNED FOR EACH YEAR

Based upon fall 2007 survey results of the Downtown Oakland property owners,and estima ted c osts and servic es, the prop osed spec ia l bene fits funded by theDowntown Oakland Comm unity Bene fit Distric t a re as follow s: (These aresugge sted prog rams or projec ts to b e funded by the g enera l line items)

Distric t Imp rovem ent and Ac tivity PlanAll of the improvements and activities detailed below, are provided only toproperties defined as being within the boundaries of the District and providespec ia l bene fit to the p rop erty owners of those p rop erties within the Distric t. Noimprovements or activities are provided to properties outside the Districtbound aries. All benefits derived from the assessments outlined in thisMa nagement Distric t Plan fund servic es d irec tly b ene fiting the prop erty ownersin this specialized district.

All benefits derived from the assessments outlined in the Management DistrictPlan a re for servic es direc tly b ene fiting the prop erty, business ow ners and futureresidents within this a rea and support increa sed sec urity, c lea nliness, com me rc e,business attraction and retention, improved district identity, and specializedbea utifica tion servic es.

All services, projects, security, maintenance, beautification andprofessional/administration services are provided solely to properties within theDistric t. No services will be provided to no n-assessed p arc els outside o f the

Distric t b ound aries.

The to ta l imp rove me nt and ac tivity p lan b udge t for 2009, which is fundedentirely by p roperty a ssessments, is p rojec ted a t $ 889,108.00.

The Downtown Oa kland Co mm unity Bene fit Distric t Stee ring Co mm ittee ha sprioritized the follow ing c a teg ories of spec ia l benefit services for the new Distric t.The c a teg ories of spec ia l benefit servic es provide enough c la rity to p rop ertyowners to understand the intent of the budget category, however give theDistric t Manage ment Corpora tion the flexibility it needs to a lloc a te the servic esbased upon the changing needs of the district from year to year within each

budg eted c ategory.

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SIDEWALK OPERATIONS ,BEAUTIFICA TION, ORDER : $ 552,000 62%Examp les of these spec ia l benefit servic es and c osts inc lude, but a re not limitedto :

Priva te sec urity over and above those servic es c urrently p rov idedby the Oa kland Polic e Departme nt, BART Polic e, Alame da County

Transit, and the A lame da Co unty Sheriffs Dep artment; Reg ula r sidew alk and gutte r swe ep ing

Reg ular sidew alk stea m c lea ning Spot stea m c lea ning a s nec essa ry Bea utific a tion throug hout the d istrict Enhanc ed trash emp tying Rem ova l of bulky items as nec essa ry

Timely g ra ffiti rem ova l, w ithin 24 hours as nec essary Tree a nd ve ge tation maintenanc e Parking assista nc e

Spec ia l events Planning of new outdoor pub lic spa c es

Ma intenanc e ve hic le a nd eq uipm ent c osts (if done in house)

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TABLE4A

SPECIALBENEFITSOBOSERVICESBROKEN DOWN BY FREQUENCY BY BENEFITZONE

Spec ial BenefitCategory/ Item - %

Number ofemployees/

contractors

Benefit Zone1 Frequenc y

Benefit Zone2 Freq uenc y

First YearCosts

SOBO 62%a. Priva te Sec urity

b . Sidewa lk swee p ing,graffiti remo val, do g ba gmaintenance, steamcleaning,

c . Reg ular trash remo va l

d . Land sc ap er andmaintenance

e. Banner insta lla tion a ndmaintenance

f. Sup ervision of SOBOServices

g. Pub lic rights of w ayconsulting services

h. Ge neral Liab ility andvehicle insurance,Vehic le a nd m ac hinery,maintenance, materials,eq uipme nt and supp lies,plant ma terial

2

see atta c hed

see atta c hed

see atta c hed

6 days pe rweek

6 days

6 da ys

6 days

Quarterly

6 days

As need ed

6 days perweek

5 da ys

5 da ys

5 da ys

Quarterly

5 da ys

As need ed

$ 192,000(Funded by

Lot Size)

$ 320,000(Funded by

LinearFrontage

ba sed upo nBenefit Zone

frequencies.Includesservicesb g)

$ 40,000(funded by

BuildingSquarefootage

costs fromboth Bene fit

Zones)

Sub-total for SOBO $ 552,000

Enhanc ed Residential Bea utific ation/ Sec urity: (For Future Residential)

$ 00.00 0%

Examples of these future special benefit services and costs include, but are notlimited to:

Enhanced beautification around blocks with predominantly single familyresidential unit pa rc el deve lop me nt. Suc h enhanc ed servic es wo uldinclude regular security sweeps and evening monitoring, in addition to

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insta lla tion of ad d itiona l hang ing plants, intensive sidew alk landsc ap ing,extra trash c ans, do g wa ste d istribution b oxes;

DISTRICTIDENTITY: $ 90,000 10%Examp les of these spec ia l benefit servic es and c osts inc lude, but a re not limited

to : Web site de velop ment and upda ting; Spec ial Events Holida y d ec orations Brand ing o f Dow ntow n Banner programs Pub lic a rt d isp lays Log o d evelop ment Public spac e d esign and w ork Signage Sea sona l ornam enta l p lantings and other spec ial p rojec ts a round FrankOg awa Plaza

TABLE4B

SPECIALBENEFITDISTRICTIDENTITY SERVICESBROKEN DOWN BY COSTSPERBENEFITZONE

Spec ial BenefitCategory/ Item - %

Benefit Zone 1Frequency

Benefit Zone 2Frequency

First YearCosts

District Ide ntity 10% 85% costs 15% c ostsa. Web site;b . Spec ial Events

c . Holida y de c orations;d . Branding;e. Banne r programf. Pub lic a rtg . Logo developmenth. Public spa ce de sign worki. Signa ge

j. Sea sona l ornam enta lplantings and othe r spe c ialp rojec ts a round FrankOgawa Plaza

k. Other$ 76,000 $ 14,000

(Fund ed ent irelyfrom Building

Squa re foota geassessmentslevied at tw orate s for BenefitZones 1 and 2)

Sub-total DISI $ 90,000

Ad ministration and Corporate Operations: $ 180,000 20%Examples of these spec ia l benefit servic es and c osts inc lude, but a re not limitedto :

Sta ff and administra tive c osts Insurance Office related expenses, rent

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Financial reporting Accounting Leg a l wo rk

Administrative services and costs are provided to, and apportioned equally

among the b uild ing square foo tage of a ll of the parc els in the d istric t.

CONTINGENCY/ CITY AND COUNTY FEES/ RESERVE: $67,108 8%Examples of these spec ia l benefit servic es and c osts inc lude, but a re not limitedto :

Delinquencies City Fee s

County fees Reserves Spec ia l projec ts

Contingenc y/Reserve costs a re a pportioned eq ua lly am ong the b uild ing squarefoo tage o f a ll of the p a rc els in the d istric t

TABLE4C

CATEGORIES OFSPECIALBENEFITSERVICESFIRSTYEAR

PROGRAM OR ACTIVITY FUNDED BY THE

DOWNTOWN OAKLANDCOMMUNITY BENEFITDISTRICT

APPROXIMATE

% OF FIRSTYEAR ANNUAL

BUDGET

ESTIMATED ANNUALCOSTS


62% $ 552,000.00

Distric t Identity and Signage 10% $ 90,000.00

Enha nc ed Residential Bea utific a tionand Evening Sec urity (fo r future usewhen c ondos are b uilt in the d istric t)

0% $ 00.00


20% $ 180,000

Contingenc y/City a nd County

Fees/ Reserves

8% $ 67,108.00

OTAL 100% $ 889,108.00

Reserve for Slow Payments:A percent of the budget is held in reserve to offset delinquent and/or slowpa yment from both p ublic and private p rop erties.

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City and County Fees:Assessme nts are b udgeted in order to fund the expenses c harge d by the C ity ofOakland and Alameda County for collection and distribution of the CBDassessments.

Reserves:Reserves are budgeted for those funds that remain from the 8% set aside, thatare over and above those that have not been collected and are over andabove the c ity fees. These reserves sha ll be c arried forwa rd from yea r to yea r,or may b e rea lloc ate d to the d esigna ted bud ge tary c a tegories found w ithin theManagement District Plan.

Repayment of Formation and Advanced Services Funds from First YearAssessments:Property owners who advanced funds for the formation of the Downtown

Oakland CBD, as well as the funds for any advanced special benefit servicesprior to the receipt of the first assessment installment shall be entitled to be fullyrep a id for any verifiab le c ontributions to the CBD effort. Those reimbursem entsshall be paid by the District Management Corporation out of the first year orsec ond yea r rec eipts. The amo unt of reimb ursab le funds should not exce ed$100,000 for formation costs and advanced special benefit funded prior toDecemb er 31st, 2008.

Ten Yea r Ope rating Budg et:

A projected ten-year operating budget for the proposed Downtown OaklandCo mm unity Bene fit District is p rov ided below . The p rojec tions a re based upon

the follow ing assumptions:

Assessments will be subject to changes in the Alameda County ConsumerPrice Index (CPI), with annual increases not to exceed 5% per year.Increases will be determined by the District Management CorporationBoard of Directors and in no case shall annual increases exceed 5% peryear.

Assessme nts for spec ific p rog rams ma y be rea lloc a ted from year-to-yea r amo ngDistric t a c tivities within a 10% range within eac h b udge t line item and ma y not

exce ed 10% of the tota l budge t for a ll p rog rams and ac tivities. Cha nge s basedupon District needs and changed services must be approved by the OaklandCity Council.

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TABLE4D

DOWNTOWN OAKLAND COMMUNITY BENEFITDISTRICT10YEARBUDGETPROJECTION

Projected Bud get 2009 2010 2011 2012 2013

Sidewa lk Op erat ions &Bea utifica tion (61%) $552,000.00 $579,600.00 $608,580.00 $639,009.00 $670,959.45

DISI (10%) $90,000.00 $94,500.00 $99,225.00 $104,186.25 $109,395.56Enhanced ResidentialSpec ial Bene fitServices $0.00 $0.00 $0.00 $0.00 $0.00Administrative andCo rpo rate Relations(20%) $180,000.00 $189,000.00 $198,450.00 $208,372.50 $218,791.13

Contingency/ Reserve(9%) $67,108.00 $70,463.40 $73,986.57 $77,685.90 $81,570.19

Total (100%) $889,108.00 $933,563.40 $980,241.57 $1,029,253.65 $1,080,716.33

Projected Bud get 2014 2015 2016 2017 2018

Sidewa lk Op erat ions &Bea utifica tion (61%) $704,507.42 $739,732.79 $776,719.43 $815,555.40 $856,333.18

DISI (10%) $114,865.34 $120,608.61 $126,639.04 $132,970.99 $139,619.54Enhanced ResidentialSpec ial Bene fit

Services $0.00 $0.00 $0.00 $0.00 $0.00Administrative andCo rpo rate Relations(20%) $229,730.68 $241,217.22 $253,278.08 $265,941.98 $279,239.08Contingency/ Reserve(9%) $85,648.70 $89,931.14 $94,427.70 $99,149.08 $104,106.53

Total (100%) $1,134,752.15 $1,191,489.75 $1,251,064.24 $1,313,617.45 $1,379,298.33

*Assumes a 5% yea rly inc rea se on all bud get items. Note : Any ac c rued interestor delinquent pa yments will be e xpe nde d in the a bo ve c atego ries.

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22

5. TOTAL ANNUAL AMOUNT PROPOSED TO BE EXPENDED FOR IMPROVEMENT,MAINTENANCE AND OPERATIONS, DISTRICT IDENTITY, ADMINISTRATION ANDCONTINGENCY/ RESERVE

Budget:The first yea r annua l bud get is p rojec ted to be $ 889,108.00. Annua l ad justmentsof up to a ma ximum of 5% over the prev ious yea r s g ross assessme nt a mo unt a reallowable, subject to the approval of the Downtown Oakland CommunityBene fit Distric t, and c ond itiona l upon a pprova l of the Oa kland City Counc il.

Eac h p arce l has be en a nalyzed to d etermine p rop er ca tegory of use a ndtherefore bene fit and p lac ement in the two b ene fit zones. (Parking squarefootage within the walls of a building on a single parcel, that predominantlyserves the tenant needs of that building will have the relevant building squarefootage devoted to parking subtracted from the overall building square

foota ge of the b uilding.)


23/39

Downtown Oakland

Community Benefit DistrictTotal Budget $889,108.00

Contingency,

$67,108, 8%

Design, Identity,

Signage,

$90,000, 10%

Sidewalk

Operations,Beautification,

and Order

$552,000, 62%

Administration,

$180,000, 20%

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6. THE PROPOSED SOURCE(S) OF FINANCING INCLUDING THE PROPOSED METHODAND BASIS OF LEVYING THE ASSESSMENTS

Method o f Financ ing:This me thod of financ ing the spec ia l servic es is based upon the levy ofassessments on real property that benefits from proposed improvements andac tivities. This rep resents a benefit assessment d istric t as defined in theCa lifornia Stree ts and Highway Code. Assessed va lua tion cannot be used as thebasis for special benefits assessments due to the introduction of Proposition 13into the sta te c onstitution in 1978.

Three prop erty va riab les will be used to fund the spec ial benefit servic es of thed istric t. Those va riab les will inc lud e: lot or pa rc el size, build ing squa re foo ta ge,and linea r fronta ge. In ad d ition, b ene fit zone s will be used to d ete rmine thefreq uenc y of be nefits rec eived. There w ill be a p rima ry benefit zone and a

sec ond ary benefit zone .

Two excep tions to this me thodolog y will be:

1. Single family residential pa rc els will not be assessed for linear frontage orlot size. This residentia l assessment m ethodology a pp lies to a ll sing le fa milyresidential unit parcels, or condos that currently do not exist, but may be builtwithin the term of the d istric t. These single family residentia l unit pa rc elassessme nts will fund enhanc ed bea utific a tion gea red to the residents as well asevening security needs, seven day per week, spot sidewalk cleaning,

placement of pet waste receptacle stations and other special benefit servicesdesired by the new c ond o owne rs of the CBD.

Ground floor or commercial/retail uses or commercial condos on the groundfloor of a residential condo building, will be assessed similar to all otherc om me rc ia l properties, that is, for the c om me rc ia lly used lot size, linea r frontageand ac tual building squa re foota ge .

2. Parking square foo tage within the wa lls of a build ing on a sing le parc el,that predominantly serves the tenant needs of that building, will have therelevant building square footage devoted to parking subtracted from the

ove ra ll build ing square foo tage o f the b uild ing .

Land use c hanges will lea d to c ha nges in the a ssessme nt formulation p er pa rc el.As the district transitions to a mixed-use community, the assessmentmethodology wil l accommodate these changes by generating additionalrevenues to m itiga te the imp ac t of the se ne w residents and businesses.

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A Community Benefit District is a practical pay as you go funding tool whicha llow s p rop erty owners in a g iven designa ted area to b e a ssessed , as pa rt of theproperty tax collection tax process, to pay for supplemental or special benefitservic es . These spec ia l servic es a re those, which a re no t norma lly prov ided bythe City of Oakland . CBDs are ofte n assoc iated w ith very visib le and ta ng ible

program elements that, in turn, can produce very significant changes in thec harac ter and ima ge of the d istric t.

Assessment Methodolog yIn order to ascertain the correct assessment methodology to equitably applybenefits to each parcel for property related services as proposed to beprovided by the District, these c osts ma y be mea sured by linear fee t of stree tfrontage, square feet of parcel size (lot size) and square feet of building size oras a sing le family residential unit parc el.

Spec ia l c irc umstanc es suc h a s whether the p a rc el is acommercial/retail/entertainment, or whether the parcels use is as a singlefamily residential unit parcel, are carefully reviewed relative to the specificdistinct type of programs and improvements to be provided by the District inorder to determine appropriate levels of assessments or percentage values tobe assigned to ea c h type of a ssessme nt va riab le.

During the first yea r of operation, forty five p er cent o f the District s revenues willbe generated from the building square footage; thirty five per cent of theDistrict revenues will be generated from the linear frontage property variable;twenty per cent of the District revenues will be generated from parcel square

foo tage o r lot size. No revenues a re g enerate d from the sing le fa mily residentialunit parcels during the first year because no such land uses currently exist in thedistrict.

Stree t Frontage Defined :Properties are a ssessed for a ll street fronta ges. Properties with more than onestreet frontage, such as corner lots or whole block parcels are assessed for thesum of all of the pa rc els stree t fronta ge . Linea r front foo tage d a ta wasob ta ined from the County Assessors pa rc el ma ps and c onfirme d by the C ity ofOakland.

Building Square Footage Defined :Building square footage is defined as gross building square footage asdete rmined b y the outside mea surem ents of a build ing . Build ing squarefoota ge da ta wa s ob tained by the County Assessors offic e a nd c onfirmed bythe City of Oa kland. Pa rking square foo tage within the wa lls of a b uild ing on asingle parcel that predominantly serves the tenant needs of that building willhave the releva nt building squa re foo tag e d evoted to p a rking subtrac ted fromthe overall build ing square foo tage o f the build ing.

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Lot Square Foo tag e Defined :Lot square foo tage is defined a s the to ta l amo unt of a rea within the b orders ofthe p a rc el. The b orders of a parc el are defined on the County Assessors parc elma ps and c onfirmed by the C ity of Oakland .

Single Family Residential Unit Parcels:Single fa mily residentia l unit pa rc els, which c urrently do not exist in the d istric t,will be defined as the livable building square footage within the walls of theind ividua l parc els of the new multi-unit cond o c omp lexes. Unlike the othercommercial parcels in the district, condo complexes (whether tenants inc om mo n o r condos), are assessed for livab le build ing square foo tage only, andnot assessed for linear frontage a nd lot square foo ta ge. This da ta wa s ob ta inedby the Co unty Assessor s office .

Ground floor or commercial/retail uses or commercial condos on the ground

floor of a residential condo complex will be assessed as all commercialp rop erties, that is, for the c om me rc ia lly used lot size, linear fronta ge a nd build ingsquare foo tag e.

Calculation of Assessme ntsThe p rop ortiona te spec ia l bene fit derived by ea c h identified pa rc el sha ll bedetermined in a relationship to the entirety of the improvement or themaintenance and operation expenses of an improvement or for the cost ofproperty service being provided. Per California Constitutional AmendmentArtic le XIII D, Sec tion 2(i), Spec ial Benefit , means a particular and d istinc tbe nefit over and abo ve g enera l benefits c onferred on a rea l prope rty loc ate d

in the d istric t or to the pub lic a t la rge .

No assessment shall be imposed on any parcel, which exceeds the reasonablecost of the proportional special benefits conferred upon that parcel. Onlyspecial benefits are assessable and these benefits must be separated from anygeneral benefits. A general benefit is defined as a benefit to properties in thesurrounding community or a benefit to the public in general resulting fromimp rove ment, ac tivity o r service to be provided by the assessme nt levied .

The spec ial benefits funded by this new District w ill be over and above e xisting

City of Oakland baseline service levels (see appendix), in the district and willserve to increase tenancies, increase commerce, increase economic viabilityand fund a system of cleanliness and beautification over and above currentservice levels.

All benefits derived from the assessment outlined in the Management DistrictPlan (MDP) fund only services directly benefiting the property owners in thisspec ia lized Distric t in ma intenanc e a nd sec urity, as well as inc rea sed c om me rc e

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and all the other goals and objectives of the Downtown Oakland CommunityBene fit Distric t.

Properties are assessed as defined on the county assessors most current parcelmaps.

The preced ing me thodology is ap plied to the d ata ba se of p arce ls within theDistrict. The proc ess for co mp iling the prop erty da ta base inc ludes the follow ingsteps:

A report wa s subm itted to the City of Oa kland using the d a ta ob tainedfrom the Co unty o f Alam ed a s Assessors office.

A list o f p rop erties to be inc luded within the Downto wn Oa kland CBD isprovided in append ix of this rep ort.

A p rop erty verifica tion form, as we ll as a parking verific a tion form were

ma iled to eac h property ow ner in the d istric t to d ete rmine whe ther thedata from the County was accurate, as well as to ascertain theamount of building square footage that was allocated to tenantpa rking needs.

The b asis of fund ing sha ll be through spec ial be nefit assessme nts levied on rea lp roperty throug hout the Distric t. The ra tes of assessment va ry by thepropo rtiona te a mount of spec ial bene fit rec eived by eac h pa rc el. A d eta iledexplana tion of the spec ia l bene fit a ssessment ra tiona le is ma de in the a ttac hedEng ineer s Report.

Table 6-A

First Year Annual Costs for the Downtown CBD by Benefit Zone

Property Variable First Yea r Annual CostBenefit Zone 1

First Year Annua l Cost,Benefit Zone 2

Build ing Squa re Foota ge(Non-residential)

$ 0.07191 per squa re foot $ 0.05841 per squa re foo t

Lot or Parc el size $ 0.13753 per squa re foot $ 0.13753 per squa re foot

Linea r Fronta ge $ 16.38 per linear foot $ 14.114 per linear foo t

Single Family Reside ntia lUnit Parc el - build ingsquare foota ge only

$ 0.30 pe r square foo t o flivable residential buildingspace

$ 0.30 pe r square foo t o flivab le resident ia lbuild ing spac e

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The Ca lc ulation o f Assessme nt for ea c h Bene fit Zone 1 c om me rc ia l or pub lic lyow ned pa rc el in the Downto wn Oa kland CBD is as follow s:

Tota l Street Fronta ge X $16.38 pe r linea r footplus

Tota l Lot Squa re Foota ge X $0.13753 per Squa re Footplus

Tota l Build ing Squa re foota ge X $0.07191 pe r Squa re Footequals

TOTAL PARCEL ASSESSMENT

The Ca lc ulation o f Assessme nt for ea c h Bene fit Zone 2 c om me rc ia l or pub lic lyow ned pa rc el in the Downto wn Oa kland CBD is as follow s:

Tota l Stree t Frontage X $14.114 pe r linea r foot

plusTota l Lot Squa re Foota ge X $0.13753 per Squa re Foot

plus

Tota l Build ing Squa re foota ge X $0.05841 pe r Squa re Footequals

TOTAL PARCEL ASSESSMENT

All p riva tely and pub licly owned prop erty in the d istrict will be assessed using theabove calculation, with the exception of single family residential unit parcels,which a re defined p reviously.

Multi unit residential single family residential unit buildings built on commerciallyzoned pa rc els a re a ssessed as a sep ara te c a teg ory. These sing le fa milyresident ia l unit p a rc els will be assessed for their build ing squa re foo tage only a tthe rate of $.30 per squa re foo t for the first yea r of the Distric t. These residentsreceive special benefits from clean and safe services but not other programsdesigned to a ttrac t and reta in businesses. They rec eive a red uc ed assessme ntwhich is proportionate to the level of special benefit received. A detailedexplanation of their special benefit and the rationale for this assessment isprov ided in the a tta c hed Eng inee r s Rep ort. The C a lc ulation o f Assessme nt foreach Residential Unit in the CBD is as follows:

Tota l Single Family Residential Unit Parc el X $0.30 per Squa re FootEquals

TOTAL SINGLE FAMILY RESIDENTIAL UNIT ASSESSMENT

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Table 6 BDataba se And Reve nue Generated from Prop erty Variables for the

Downtown Oakland CBD per Benefit Zone

Property

Variable

Benefit Zone 1

Tota l Square orLinea r Footag e

Benefit Zone 2

Tota l Square orLinea r Foo tag e

Amount


Variable, Zone 1

Amount


Variable, Zone 2

BuildingSquare

Footage

3,676,188 sq .feet

1,928,447 sq feet $ 264,355.00 $ 112,641.00

Pa rc el Lot

Size

1,053,717 sq .

feet

340,526 sq . feet $ 144,918.00 $ 46,832.00

LinearFrontage

15,604 linea rfeet

4,589 linear feet $ 255,593.00 $ 64,769.00

Sing le

FamilyResidentialUnit Parcels

0 sq . feet 0 sq . feet $ 00.00 $ 00.00

Sub - Tota l $ 664,866.00 $ 224,242.00

Prope rty Variab le Tota l Square or Linea rFoo tag e, both Bene fit Zones

Amount Generated fromBoth Benefit Zones

Building Squa re

Footage

5,604,635 sq . feet $ 376,995.00

Parcel Lot Size 1,394,243 sq . feet $ 191,750.00

Linear Frontage 20,193 linea r feet $ 320,363.00Sing le FamilyResidential

Unit Parcels

0 sq . feet $ 00.00

Tota l $ 889,108.00

Benefit Zones:There w ill be two bene fit zone s in the Downto wn Oa kland Comm unity Bene fitDistric t.

Zone 1 is anticipated to derive the greatest benefit from the assessments

gene ra ted from the d istric t. These pa rc els will bene fit from the bea utific a tionfunding, have greater freq uenc y of side wa lk sweep ing and stea m c lea ning andfrom the district identity services funded from the districts special benefitservices. Zone 1 pa rc els inc lude a ll of those:

betw een Broa dway and Franklin Stree t, north of 9th Street, up to 17thStreet;

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a ll of the p arc els ea st of San Pab lo Avenue, up to Franklin Stree t, south of17th Street;

a ll of the p a rc els betw een 16th and both sides of 17th Stree t, be twe en ClayStree t a nd Broa dwa y;

all of the parcels south of 11th Street, up to 8th Stree t, betw een

Washingto n Stree t and Broa dway, within the b oundaries of the d istric t;

Zone 2 is anticipated to derive the lesser special benefit from the assessmentsgene ra ted from the d istric t. These pa rc els will a lso benefit from thebeautification funding, have a lesser frequency of sidewalk sweeping andsteam cleaning and do not require as many services from the district identityc om ponent of the d istric t. Zone 2 inc ludes those p arc els defined by:

The Shorenste in Com pany, Clorox Corpo ra tion, Brandywine Rea lty a ndRReef complexes fronting along the west side of Broadway from 11th

Street no rth to 14th

Stree t, and running w estward a lmo st to Clay Stree t,and; Oa kland City Ha ll, the full Frank Og awa Plaza and the City Administra tive

Build ing a t 250 Frank Ogawa Plaza and Clay Stree t Ga rage.

Apportionment of Property Variables to Fund Various Special Benefit Services byBenefit Zone :

100% of the linea r fronta ge assessme nts ($ 320,363.00) and a ll of the parc el or lotsize assessments ($191,750.00) will fund the Sidewalk Operations, Beautificationand Order services. 100% of the lot size a ssessments will be equa lly apportioned

to all parcels throughout the district to pay for first year special benefit securityservices. Linea r fronta ge assessments will pay for sidewalk c leaning a t varyingfrequencies in Benefit Zones 1 and 2 and will be apportioned based upon thefreq uenc y of services app lied based upon the two bene fit zones.

Build ing assessments will fund the fo llowing servic es:

a . Ten p er c ent o f the d istric t b uild ing assessments ($ 39,887.00), will be usedto fund the e quipment nee ds of the Sidew a lk Operations, Bea utific a tionand Order c omponent o f the budg et throug hout the entire d istric t;

b . Building assessment will also fund District Identity special benefit services,with Benefit Zone 1 paying 85% of the first year district identity costs,($90,000), and Benefit Zone 2 paying 15% of the Distric t Identity services;

c . The ba lanc e of b uild ing assessments ($247,108.00) will fund theadministrative and contingency components of the budget and will beapportioned equally to all building square footage in Benefit Zone 1 and2.

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Table 6 C

First Yea r Annua l Budget By Categ ory o f Spec ial Benefit Servic es

PROGRAM OR ACTIVITY FUNDED BY THE

DOWNTOWN OAKLANDCOMMUNITY BENEFITDISTRICT

APPROXIMATE

% OF FIRSTYEAR ANNUAL

BUDGET

ESTIMATED ANNUALCOSTS

(FIRSTYEAR FUNDING SOURCE)


62% $ 552,000.00(100% of the Linear fronta ge

and 100% of the Lot Size

assessments, p lus 10% of the

Build ing square foo ta ge

assessments)

Distric t Identity and Signage 10% $ 90,000.00(Build ing Squa re Foo ta ge

assessments, Benefit Zone 1

pays for 85% of these

services)

Enha nc ed Residential Bea utific a tionand Evening Sec urity (fo r future usewhen c ondos are b uilt in the d istric t)

0% $ 00.00(Single Family Residential

Unit Parcel assessments)


20% $ 180,000

(Build ing square foo ta ge

assessments)

Contingenc y/City and County

Fees/ Reserves

8% $ 67,108.00

(Build ing square foo ta geassessments)

OTAL 100% $ 889,108.00

Maximum AssessmentAssessme nts will be sub jec t to c hanges in the Alamed a Co unty Consumer PriceIndex (CPI), for all urban consumers, annual increases not to exceed 5% peryear. Increases will be determined by the CBD new district management non-profit co rporation and ma y vary betw een 0 and 5% in any given yea r. Thefollowing projec tions illustrate a po tentia l 5% annua l increase. The

recommendations for any increase shall be submitted to the City Council andsuc h inc rea ses will be imp lemented upon a pprova l of the Oakland City Counc il.

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Table 6 - DMaximum Assessments by Property Va riable Benefit Zone 1

Projected Assessment 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Linear Feet $16.38 $17.20 $18.06 $18.96 $19.91 $20.91 $21.95 $23.05 $24.20 $25.41

Lot SquareFootage $0.13753 $0.14 $0.15 $0.16 $0.17 $0.18 $0.18 $0.19 $0.20 $0.21BuildingSquareFootage $0.0719 $0.08 $0.08 $0.08 $0.09 $0.09 $0.10 $0.10 $0.11 $0.11ResidentialBuildingSquareFootage $0.30 $0.32 $0.33 $0.35 $0.36 $0.38 $0.40 $0.42 $0.44 $0.47

Table 6 - DMaximum Assessments by Property Va riable Benefit Zone 2

Projected Assessment 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Linear Feet $14.114 $14.82 $15.56 $16.34 $17.16 $18.01 $18.91 $19.86 $20.85 $21.90

Lot SquareFootage $0.13753 $0.14 $0.15 $0.16 $0.17 $0.18 $0.18 $0.19 $0.20 $0.21BuildingSquareFootage $0.05841 $0.06 $0.06 $0.07 $0.07 $0.07 $0.08 $0.08 $0.09 $0.09ResidentialBuildingSquareFootage $0.30 $0.32 $0.33 $0.35 $0.36 $0.38 $0.40 $0.42 $0.44 $0.47

Budge t AdjustmentsAnnual budget surpluses, if any, will be rolled into the following years budget.Assessments will be set annually, within the constraints of the CPI or land usechanges. Revenues from the delinquent accounts may be expended in theyear they are received. If the District is not renewed any remaining funds will bereturned to p rop erty ow ners in the p rop ortion b y wha t they were rec eived.

Government AssessmentsThe Downto wn Oa kland CBD Management Plan a ssumes tha t the City ofOakland and other government entities will pay assessments for the publicprop erty within the bound aries of the Distric t. Artic le XIII D, Sec tion 4 of theCalifornia Constitution was added in November of 1996 to provide for thesepayments.

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Parc els ow ned by the City of Oa kland, the Sta te of C a lifornia , the Bay AreaRapid Transit District and the Co unty o f Alam ed a sha ll rec eive benefits,commensurate with the assessments paid into the Downtown Oakland CBD.The p ub lic ly owned pa rc els a re p resumed to b ene fit eq ua lly to the p riva telyowned pa rc els.

Table 6 EGovernment Owned Parcels in the Downtown Oak land CBD

APN Leg a l Ow ner Site # Site StreetAnnual

AssessmentPercent

003 0065 009 02 City Of Oa kland 551 16th Stree t $24,667.20 2.77%

003 0067 001 00 City Of Oa kland 1 Frank H Og awaPlaza

$28,719.48 3.23%

003 0067 002 00 City Of Oa kland City Hall Plaza $10,891.20 1.22%

008 0619 008 01 City Of Oa kland 150 Frank H Og awaPlaza $27,296.71 3.07%

008 0620 014 04 City Of Oa kland 1630 San Pab lo Ave nue $3,365.02 0.38%

Tota l $94,939.60 10.68%

001 0201 010 00 Red eve lopm ent Ag enc y City OfOakland

822 Washing ton Stree t $2,696.86 0.30%


12th Street $4,076.94 0.46%


524 16th Street $2,149.54 0.24%


540 17th Street $21,515.06 2.42%

Tota l $30,438.39 3.42%

002 0098 003 00 SF Bay Area Rap id Transit Distric t 11th Street $792.11 0.09%

7. THE TIME AND MANNER OF COLLECTING THE ASSESSMENTS TERM OF THEDISTRICT

Petition Drive :The Oa kland Business Imp roveme nt Maintena nce Distric t m a il ba llot p roc eed ing

is triggered with a successful petition drive by more than 30% of the propertyowners who must payinto the d istric t o r $266,732.00 of w eighted sup port. Thesepetitions demonstrate stakeholder support for the district and trigger aProposition 218 mail ba llot p roc ed ure. The Community Benefit Distric t will beestablished and function for a maximum of 10 years and must be re-establishedthrough a similar petitioning and balloting process at the end of its pre-designated life.

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The Downtown Oa kland Co mm unity Bene fit Distric t Stee ring Co mm ittee ha selected to establish the district for the maximum period of 10 Yearsc om me nc ing January 1, 2009. This has bee n do ne to save on the c osts andtime required to re-esta b lish the d istric t w ithin 4 - 5 years.

Due to its long term nature, (10 years), the local enabling ordinance allows forthe g row th of landsc ap ing, its ma intenanc e a s we ll as ec onom ic de velop mentstra teg ies related to revitaliza tion tha t create a mo re pe rma nent imp rove me ntto the a rea . If there is deb t ag a inst the District, the Distric t cannot bed isestab lished, until a ll of the d eb t has bee n rep a id. All financ ia l ob liga tions inthe form of b ond s or loa ns for c apital imp rove ments must be p a id off be fore thed istrict c an b e d isestab lished .

Exemptions:Consistent with Article XIII(d) of the state constitution, it has been determined

that all parcels within the proposed district will derive special benefits from thed istrict. Therefo re, no pa rc els will be exemp ted from p ayme nt into theDowntown Oa kland Comm unity Benefit Distric t, reg ard less of use or ow nership.

Time and Manner for Collec ting AssessmentsAs provided by ord inanc e, the Downtow n Oa kland CBD assessment will appea ras a separate line item on annual property tax bills prepared by the County ofAlamed a Tax Assessor. The a ssessments sha ll be c ollec ted a t the same time andin the same ma nner as for the a d valorem prope rty tax pa id to the County ofAlamed a. These assessments sha ll p rovide fo r the same lien priority andpena lties for delinquent p ayment as is p rovide d for the a d va lorem p rop erty tax.

However, assessments may be billed directly by the City for the fiscal year ofop eration and then by the County for a ll subseq uent yea rs. Any de linquentassessments owed for the first year will be added to the property tax roll for thefollow ing yea r. The prop erty ow ner me ans any person show n as theowner/taxpayer on the last equalized assessment roll or otherwise known to bethe ow ner/ta xpayer by the City. Tax-exemp t pa rc els who a re not sub jec t toproperty taxes shall not be exempted from payment into the assessment district.These p arc els will be b illed d irec tly by the City of Oa kland for the ir assessmentobligation.

Disestablishment:Local ordinance provides for the disestablishment of the CBD pursuant to anannua l review p roc ess. Eac h year tha t the Dow ntown Oa kland CBD is inexistence, there will be a 30-day period during which the property owners willhave the o pportunity to req uest d isestab lishment o f the d istrict. This 30-da yperiod begins each year on the anniversary date that the district was firstestablished by the City Council. Within that 30-da y period , if a written p etition issubmitted by the owners of real property who pay 30% or more of the

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assessments levied , the CBD may be c onside red for d isesta b lishment. The C ityCouncil will hold a public hearing on disestablishing the CBD prior to actuallydoing so. (Sec tion 4.48.220)

8. ADVISORY BOARD AND MANAGEMENT OF THEDISTRICT:

The Dow ntow n Oa kland CBD Management Corporation is charged with theday-to-da y op erations of the Manage ment Distric t. The entity will inc lude a llp rop erty owners paying into the d istrict a nd inc lude representa tion from businessowners and various sec tors of the assessment distric t. The no n-profit corpora tionshould be set up as a public benefit corporation and file for application to theIRS onc e the d istric t has been adop ted by the C ity Counc il of Oa kland.

Mana gement Corpo ration and the Advisory Board:The final ma nagement struc ture w ill inc lude the Downto wn Oa kland CBD

assessed property owners who will organize themselves into a new non-profitcorporation whose Board will serve in the capacity of the contractedma nage ment co rpo ration.

Per local ordinance the Oakland City Council will also appoint an advisoryboa rd fo r the d istric t.

The City Co unc il ma y d esigna te existing a dvisory bo ards or

commissions to serve as the advisory board for the district or may

c rea te a new a dvisory bo ard for that p urpo se. At lea st one

member of the advisory board shall be a business licensee within

the d istric t w ho is not a lso a prop erty owner within the d istric t...The

advisory board shall cause to be prepared a report of each fiscal

year for which assessments are to be levied and collected to pay

the costs of the improvements and activities described in the

report. (Sec tion 4.48.190)

The Advisory Boa rd sha ll me et a t lea st onc e p er year to a dvise the City Counc iland prepare and submit an annual report regarding public activities within thedistrict.

The p rop osed Downtown O akland Co mm unity Bene fit Distric t will beadministered by a yet to be formed non-profit corporation comprised of allp rop erty ow ners within the distric t. Ac c om mo da tions should be m ade on theBoard of Directors to include large and small commercial, residential, retail andecumenical property owners, and government representatives from each landuse, as well as business tena nts based in the d istric t.

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Property owners will be responsible for the payment of assessments into the newspecial benefits district although some assessments may be passed ontobusiness or residentia l tenants. Thus the ne wly forme d m ana gem ent c orpo ra tionshould acknowledge those paying indirectly into the district and endeavor toinc lud e their interests when it d evelop s polic y.

Once the district hasbeen established, steps will be taken to establish this newcorporation and enter into a contract for administration with the City ofOakland.

The m ana ge ment corpo ration, onc e formed , will c rea te a number of polic ieswhich will he lp the Boa rd o f Direc tors to effec tively mana ge the d istrict. Suc hpolic ies ma y inc lude, but not be limited to : a d ec ision making p olic y, use ofbanner policy, special event underwriters policy and an economic hardshippolicy.

The Ad visory Boa rd submits its rep ort annua lly to the City Counc il on a da tedesignated by the City. The Ma nagement Co rporation sha ll a im to m ee t thefollow ing o perationa l ob jec tives for the Dow ntow n Oa kland CBD:

Create and manage programs that best respond to the top priorities ofDowntow n Oa kland CBD stakeholde rs;

Maximize coordination of the City government to avoid duplication ofservic es and to leverag e resources;

Deliver services through a cost-effective, non-bureaucratic and easy toaccess organizational structure;

Provide ac c ounta b ility and responsiveness to those w ho p ay.

Work with adjacent CBDs including the Koreatown and LakeMe rritt/ Uptown CBDs to maximize servic es and effic ienc ies and see k joint

op portunities in administrat ion, and the delivery of servic es.

9. ASSESSMENTENGINEERSREPORT

Property owners in the Downtown Oakland CBD have emphasized that anassessment formula for the CBD be fair, balanced and commensurate withspec ia l bene fits rec eived.

NEW C ITY AMERICA has c ontrac ted with Ed Henning a nd Assoc ia tes to c om pile therequired engineers report under the guidelines of Proposition 218, Article XIIID ofthe Ca lifornia Sta te Co nstitution.

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38

In preparing the engineers report for the Downtown Oakland CBDManagement District Plan, the engineer concluded that the special benefit toeach parcel in the various benefit zones was found to be proportional to theprope rty variable a nd their appo rtionme nt.

An Eng ineers rep ort for the CBD is p rov ided in the Ap pend ix.

APPENDIX ILIST OF PARCELS TO BE ASSESSED

APN ASSESSMENT001 0201 001 00 $3,316.58

001 0201 002 00 $3,457.28

001 0201 003 00 $3,555.14001 0201 004 00 $4,876.09

001 0201 005 00 $1,874.06

001 0201 006 00 $3,072.07

001 0201 007 00 $2,976.20

001 0201 008 00 $753.33

001 0201 009 00 $1,506.65

001 0201 010 00 $2,696.86

001 0201 011 00 $2,563.24

002 0047 003 00 $4,518.42

002 0047 004 00 $310.39

002 0047 005 00 $1,506.65

002 0047 006 00 $2,255.99002 0047 007 00 $6,042.79

002 0047 008 00 $6,022.55

002 0047 009 00 $3,811.04

002 0047 010 00 $3,195.99

002 0047 011 00 $4,892.65

002 0047 012 00 $34.11

002 0047 013 00 $630.79

002 0051 001 00 $9,714.12

002 0051 002 00 $6,459.92

002 0051 003 00 $6,034.74

002 0051 004 00 $9,207.51

002 0051 005 00 $13,795.51002 0051 006 02 $9,905.67

002 0051 013 01 $29,540.00

002 0053 001 00 $32,095.38

002 0053 002 00 $10,684.69

002 0053 003 01 $6,183.27

002 0053 005 00 $2,826.48

002 0053 006 00 $3,770.94

002 0053 007 00 $6,761.72

002 0053 008 00 $2,173.97

002 0094 001 00 $26,695.87

002 0095 001 00 $25,886.02

002 0096 001 00 $0.00002 0096 003 00 $19,029.67

002 0097 001 00 $25,965.61

002 0097 023 00 $15,475.06

002 0097 024 00 $16,192.39

002 0097 042 00 $50,808.93

002 0097 044 00 $44,865.02

002 0097 045 00 $4,076.94

002 0098 002 00 $41,192.48

002 0098 003 00 $792.11

003 0065 001 00 $1,327.52

003 0065 002 00 $8,698.99

003 0065 007 02 $2,580.46003 0065 009 02 $24,667.20

003 0067 001 00 $28,719.48

003 0067 002 00 $10,891.20

008 0619 001 01 $9,493.51

008 0619 004 01 $43,294.67

008 0619 008 01 $27,296.71

008 0619 009 01 $3,428.60

008 0620 001 00 $2,993.57

008 0620 002 00 $1,112.88

008 0620 003 00 $969.54

008 0620 004 00 $2,255.55

008 0620 005 00 $13,795.75008 0620 006 00 $4,469.57

008 0620 007 00 $1,148.04

008 0620 009 03 $2,149.54

008 0620 009 07 $6,493.27

008 0620 010 00 $6,226.99

008 0620 011 06 $991.96

008 0620 014 04 $3,365.02

008 0620 019 00 $7,538.18

008 0621 001 00 $8,501.58


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008 0621 002 00 $1,496.13

008 0621 003 00 $1,319.42

008 0621 004 00 $1,171.62

008 0621 005 00 $897.15

008 0621 006 00 $3,807.26

008 0621 007 00 $2,694.10

008 0621 008 04 $1,265.82008 0621 008 06 $9,624.74

008 0621 008 07 $4,522.55

008 0621 009 00 $5,361.20

008 0621 010 00 $4,785.99

008 0621 011 00 $16,485.38

008 0622 001 02 $89.02

008 0622 001 03 $1,105.17

008 0622 001 04 $690.40

008 0622 001 05 $6,139.39

008 0622 002 00 $5,382.18

008 0622 003 00 $2,039.17

008 0622 004 00 $2,894.88008 0622 005 01 $14,549.28

008 0622 007 00 $3,626.21

008 0622 008 01 $3.71

008 0622 008 02 $61.48

008 0622 008 03 $6.46

008 0622 008 04 $4,135.60

008 0622 012 01 $0.00

008 0622 012 02 $0.00

008 0622 012 03 $0.00

008 0622 012 04 $0.00

008 0622 012 05 $0.00

008 0622 012 06 $0.00008 0622 012 07 $13,539.22

008 0622 013 00 $3,256.84

008 0623 007 00 $4,651.30

008 0623 008 00 $7,431.09

008 0623 009 00 $1,478.71

008 0623 010 00 $4,417.17

008 0640 011 00 $5,200.90

008 0640 012 00 $2,679.13

008 0640 013 00 $1,319.99

008 0640 014 00 $1,747.91

008 0640 015 00 $1,196.29

008 0640 016 00 $1,072.72008 0640 017 00 $6,209.27

008 0641 005 00 $3,875.86

008 0641 006 01 $6,233.37

008 0641 008 05 $21,515.06

008 0641 011 01 $2,716.39

DOA Management Plan

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