SUBJECT: Status of the Downtown Enhancement Commission

Background:

The Downtown Business Area Enhancement District Commission (DEC) was formed by the City Council in 1993, replacing the Board of Parking Place Commissioners which oversaw operation of the Vehicle Parking District (VPD).

The DEC was established to expand the range of Commission activities to include promotion and economic revitalization of the entire downtown area. This expanded role included the planning and implementation of physical enhancements within the district (The Downtown Improvement Project); supporting businesses in the downtown through various promotional activities; and to provide policy direction for the downtown to benefit businesses, including direction on the parking in-lieu fee program.

Since its inception, the DEC has played an integral role in the formulation of plans for improving the physical appearance of downtown. Throughout the design and implementation of the DIP the Commission served as a sounding board for business related concerns, and a consensus builder helping to obtain community support for the project. Additionally, the Commission has promoted downtown business development through its recommendations regarding relaxed parking requirements, parking in-lieu fees, and general support and advocacy of new development activity.

Analysis:

The DEC has successfully completed its original and primary mandate by spearheading the physical enhancement of Pier Avenue. While further steps remain to implement enhancements to upper Pier Avenue and Hermosa Avenue, the remaining issues relate to construction/contracting and financing which are primarily City Council decisions. The tasks of promotion and consensus building relating to these projects have been completed.

Another task envisioned for the DEC, that of promotion and business support including the provision of seed money for special events, such as FirstNight , St. Patrick's Day Parade, and the Film Festival, have been achieved. However, due to limited resources (budgeting decision of Council relating to the priority of completing the DIP) some of the broader promotional objectives were not achieved. Many of the promotional activities may actually be more effectively carried out by the private sector than a public commission.

With respect to business advocacy the Community Development Department and all City Staff have taken on a new, more business friendly approach, as evidenced by the scope of reinvestment in the downtown over the last three years. This day-to-day interaction and support has minimized the need for Commission involvement in this area. Staff time and resources are also constrained due to the pace of development activity, and the project management style of operation which has been used to manage downtown revitalization (i.e. Hotel, Parking Structure, Bijou, etc.).

Recommendation:

In light of the scope of positive changes in the downtown, the City Council may wish to consider whether the DEC has accomplished it's primary objectives. The terms of three of the Commissioners will expire in Septermber and now may be the appropriate time to consider whether the private sector should take over the remaining promotional responsibilities of the Commission.

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