1. Managing the Future of Downtown Santa Monica Project Update Progressive Urban Management Associates, Inc. Kristin Lowell Inc. March 25, 2008 Progressive Urban Management Associates, Inc. Kristin Lowell Inc. March 25, 2008

2. Why Develop a New Management Approach Now? New competition Ongoing concern with cleanliness, parking, infrastructure and street populations Create certainty & redefine city resources and commitment Opportunity to balance goals – real estate vs. community asset Refresh Bayside management model New competition Ongoing concern with cleanliness, parking, infrastructure and street populations Create certainty & redefine city resources and commitment Opportunity to balance goals – real estate vs. community asset Refresh Bayside management model

3. Property-Based Assessment District Progress through March of 2008 Framework developed in 2006-07, presented to City Council April 2007 Working Group & City of Santa Monica staff have reviewed emerging work program, budget and assessment scenarios since summer of 2007 Status report to City Council in January 2008 Responding to Council direction, open forums and an online survey were undertaken in February Progress through March of 2008 Framework developed in 2006-07, presented to City Council April 2007 Working Group & City of Santa Monica staff have reviewed emerging work program, budget and assessment scenarios since summer of 2007 Status report to City Council in January 2008 Responding to Council direction, open forums and an online survey were undertaken in February

4. Property-Based Assessment District Nearly 500 responses from online community survey… Top priorities: Reduce Homelessness (75%), Improve Parking (55%) and Enhance Cleaning (47%) Ambassadors Services: Work to Reduce Homelessness (55%), Serve as Witnesses (35%), Neighborhood Watch (33%) More than 88% of respondents thought the proposed services would improve downtown Of those responding as downtown property owners, businesses or residents, nearly 80% indicated that services would directly benefit them. Nearly 500 responses from online community survey… Top priorities: Reduce Homelessness (75%), Improve Parking (55%) and Enhance Cleaning (47%) Ambassadors Services: Work to Reduce Homelessness (55%), Serve as Witnesses (35%), Neighborhood Watch (33%) More than 88% of respondents thought the proposed services would improve downtown Of those responding as downtown property owners, businesses or residents, nearly 80% indicated that services would directly benefit them.

6. Property-Based Assessment District Maintenance Program To create budgets models, the City and Bayside have evaluated downtown maintenance, parking structures & alleys National contractor estimate for supplemental cleaning in remainder of downtown @ $1.3M annually Seven days a week, litter removal, machine sweeping, graffiti removal, landscaping, emergency cleaning, etc. All resources to be combined and jointly managed All work to be performed according to City standards Maintenance Program To create budgets models, the City and Bayside have evaluated downtown maintenance, parking structures & alleys National contractor estimate for supplemental cleaning in remainder of downtown @ $1.3M annually Seven days a week, litter removal, machine sweeping, graffiti removal, landscaping, emergency cleaning, etc. All resources to be combined and jointly managed All work to be performed according to City standards

7. Property-Based Assessment District Ambassador Program National contractor estimate for ambassadors deployed on foot & bicycle throughout downtown @ $1.2M annually Seven days a week averaging 15 hours per day Includes restroom attendants New for downtown Operating standards to be developed with City staff Ambassador Program National contractor estimate for ambassadors deployed on foot & bicycle throughout downtown @ $1.2M annually Seven days a week averaging 15 hours per day Includes restroom attendants New for downtown Operating standards to be developed with City staff

8. Property-Based Assessment District Homeless Outreach, Marketing & Special Projects Homeless programs supporting City or other established efforts Explore transportation alternatives Downtown urban design Marketing and promotions Create ability for bonding in the future Homeless Outreach, Marketing & Special Projects Homeless programs supporting City or other established efforts Explore transportation alternatives Downtown urban design Marketing and promotions Create ability for bonding in the future

9. Draft PBAD Budget Enhanced Maintenance$ 1,289,000 Ambassador Program$ 1,228,000 Downtown Marketing$ 400,000 Homeless Outreach$ 100,000 Special Projects$ 250,000 Administration$ 326,700 $ 3,593,700

10. Property-Based Assessment District Assessment Methodology Different weighting between Promenade, remainder of Bayside/Ocean and remainder of Downtown Acknowledges differences in values, frequency of services Adjusted rate for residential & government – pay for maintenance & ambassadors only Adjusted rate for non-profits Assessment applied to building or lot square footage, whichever is greater Assessment Methodology Different weighting between Promenade, remainder of Bayside/Ocean and remainder of Downtown Acknowledges differences in values, frequency of services Adjusted rate for residential & government – pay for maintenance & ambassadors only Adjusted rate for non-profits Assessment applied to building or lot square footage, whichever is greater

11. PBAD Assessment Estimates Annual RatesBuilding or Lot Sq. Ft. Promenade$ 0.767 Bayside/Ocean$ 0.384 Downtown East$ 0.192 Res/Exempt: Bayside$ 0.273 Res/Exempt: Downtown$ 0.137 Public Parking Structures$ 0.137 Non-Profits: Bayside$ 0.137 Non-Profits: Downtown$ 0.068

12. PBAD Governance Bayside as the Governing Board (13 members) Develop budgets, adjust annual assessments, oversight for day-to-day service delivery One-half City Council appointed (6 appointees) One-half Property-owner appointed (6 appointees) One City Manager or designee Goal is to have a mix of downtown property owners, downtown businesses, downtown and Santa Monica residents, and representation from each zone Bayside as the Governing Board (13 members) Develop budgets, adjust annual assessments, oversight for day-to-day service delivery One-half City Council appointed (6 appointees) One-half Property-owner appointed (6 appointees) One City Manager or designee Goal is to have a mix of downtown property owners, downtown businesses, downtown and Santa Monica residents, and representation from each zone

13. PBAD Relation to Existing BIDs Existing CBD business license BID would be eliminated Existing Bayside business license BID would be modified – reduce assessment rate, expand boundaries to include Santa Monica Place Duration – 20 years with a district vote required to extend assessments beyond year 10 Existing CBD business license BID would be eliminated Existing Bayside business license BID would be modified – reduce assessment rate, expand boundaries to include Santa Monica Place Duration – 20 years with a district vote required to extend assessments beyond year 10

14. PBAD Endorsements Working Group Bayside Board of Directors “Supporters of the Downtown PBAD” Working Group Bayside Board of Directors “Supporters of the Downtown PBAD” SUPPORTERS OF THE DOWNTOWN PROPERTY BASED ASSESSMENT DISTRICT Allen Freeman, JSM Barbara Bryan, Interactive Café Barbara Tenzer, Tenzer Commercial Brokerage Bill Tucker, Tucker Investment Group Bruria Finkle, Artist and SM Resident Chris Jones, Holiday Inn at the Pier David Khedr, Khedr Management Group Dr. Alan Mont, Property Owner Ellis O'Connor, Fairmont Miramar Hotel Eric and Crystin Sedman, Property Owners Ernie Kaplan, Century Commercial Jan Sweetnam, Federal Realty Janet Morris, Property Owner, Greater Promenade Association Jennifer Hranilovich, BDC Vice Chair and SM Resident John Warfel, Metropolitan Pacific Judy Abdo, SM Resident and Former mayor Kelley Wallace, Above the Fold Newstand LaRae Mardesic-Bechmann, Chrysalis Michael Farzam, Ocean View Hotel, Travelodge/Pacific Sands Motel Randy Brant, Macerich Rick Stoff, Chrysalis Rob Rader, BDC Boardmember, SM Resident Todd Flora, BDC Boardmember & SM Resident Wally Marks, Jr., Walter Marks Realty And more to come…

15. PBAD Next Steps… Petition campaign to secure property owner support (spring 2008) Mail ballot to approve assessments (summer 2009) City Council ordinance to create district (summer 2008) PBAD begins new services (January 1, 2009) Petition campaign to secure property owner support (spring 2008) Mail ballot to approve assessments (summer 2009) City Council ordinance to create district (summer 2008) PBAD begins new services (January 1, 2009)

16. Managing the Future of Downtown Santa Monica Project Update Progressive Urban Management Associates, Inc. Kristin Lowell Inc. March 25, 2008 Progressive Urban Management Associates, Inc. Kristin Lowell Inc. March 25, 2008