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City of Leavenworth
Parking and Business Improvement Area Survey
Subject: PBIA Survey
Dear Business Owner:
In early 1998 several business owners approached the City to discuss forming a "Parking and Business Improvement Area" (PBIA). A PBIA is a special district formed by businesses to make improvements to an area using money collected from the businesses that would benefit. Some of the original projects discussed by Leavenworth business owners looking into a PBIA in 1998 included downtown sidewalks improvements, constructing parking lots, street lighting and increasing downtown security.
We know what you're thinking: another tax! But give us a minute and see if we can sell you on this one. You as a business owner have the ultimate decision in whether a PBIA is formed.
Under Washington law, PBIA funds can only be spent on projects which the business owners approve when they form the PBIA. The City can not spend the money on such things as improving residential streets or funding the operation of the community swimming pool. State law requires that the money be spent on you, the business owner.
Why is the City involved in all of this? Well, Washington law requires that if enough business owners are in favor of forming the PBIA, a City Council must formally "create" the PBIA and collect the assessments from businesses. One of the advantages of a city collecting assessments is that a city can borrow money for larger projects "cheaper" than you can as a private business. For example, right now the City can borrow money at a rate of about 5.5% interest. That's pretty good, and you save in the long run.
But first, more about those assessments.
Assessments
Washington law allows several criteria to be considered in establishing PBIA assessments: (1) business and operating taxes; (2) square footage of the business; (3) number of employees; (4) gross sales; and (5) degree of benefit received from the improvement. A list of assessment formulas from other cities is included in this letter so you can get an idea of what has been done elsewhere.
What is my part as a business owner?
This is where we need your help. As part of the proposed project to renovate one of the fruit warehouses for a civic center for conventions and performing arts, the community will have to construct a parking facility for over 300 cars. Although the lodging tax fund can afford $1.5 million of the cost to purchase and renovate the fruit warehouse without jeopardizing Leavenworth's advertising program, additional money is needed for the parking. The bottom line: no parking, no civic center.
Think about it for a minute: visitors using the civic center would use the parking facility, and when the civic center is not being used, tourists could park at the facility. Either way, it means visitors to your business. (Yes, we may charge for parking in the facility to help reduce your share of paying for it.) Still interested? Keep reading.
Survey
In order to find out if a PBIA is feasible, we need to know more about your business. The plan is to collect information from ALL the businesses in the City, and then draft some assessment formulas for you to review. Once you see the draft assessments, you can decide whether to support the PBIA or call City Hall and say you're not interested in giving them any more money.
Please take a few minutes and complete the enclosed survey and return it to City Hall by September 15. As an incentive to complete the survey, one completed survey will be drawn at random and awarded a $50.00 gift certificate to the winner's choice of any restaurant or other business in the City.
Please feel free to call either the City or the Chamber if you have any questions, and thank you in advance for your help in improving our community.
Sincerely
Bill Bauer Sandy Owens
Mayor Chamber President
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PARKING AND BUSINESS IMPROVEMENT AREA (PBIA) SURVEY QUESTIONNAIRE |
Please complete this survey and return it to City Hall (700 Highway 2 or Post Office Box 287). The information will be used to draft preliminary PBIA assessment formulas for you to review. If a PBIA is approved by you and your fellow businesses, the information you provide in this survey will be verified at a later date (probably by an independent accounting firm). Thank you for your help.
1. Business Name:
2. Person Completing the Survey (in case we have questions):
3. Business Street Address:
4. Business Mailing Address (if different than above):
5. Business Phone Number:
6. Type of Business:
_ Retail Store (Examples: Apparel, appliances, bakeries, toys, bookstores, gas stations, florists, sporting goods, gifts, jewelry)
_ Grocery Store
_ Personal Service (Examples: Beauty salons, day care, banks, printers, photographic studios, shoe repair, secretarial services)
_ Professional Office (Examples: Lawyers, doctors, dentists, engineers, accountants)
_ Manufacturing/Wholesale
_ Hotel/motel
_ Restaurant
_ Other (please describe):
7. Square footage of your business:
8. Number of rooms (for hotels/motels):
9. Is there anything "unique" about your business that we should know about when drafting formulas (such as a combination business of hotel/motel and retail store)?
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SAMPLE PBIA ASSESSMENT FORMULAS |
GROSS SQUARE FOOTAGE (CITY OF REDMOND)
10. Retail space: $.20 per square foot annually ($200.00 per 1,000 square feet). Examples: Apparel, appliances, bakeries, toys, bookstores, gas stations, florists, sporting goods, gifts, jewelry.
11. Service space: $.15 per square foot annually ($150.00 per 1,000 square feet) Examples: Beauty salons, day care, banks, printers, photographic studios, shoe repair, secretarial services.
12. Professional service space: $.10 per square foot annually ($100.00 per 1,000 square feet). Examples: Lawyers, doctors, dentists, engineers, accountants.
13. Manufacturing/wholesale space: $.05 per square foot annually ($50.00 per 1,000 square feet)
14. Businesses would pay a minimum charge that is calculated a 1,000 square feet (i.e. a retail space of 500 square feet would still pay $200.00 per year minimum).
GROSS SQUARE FOOTAGE (CITY OF AUBURN)
Retail businesses: $150.00 per 1,000 sf. up to a maximum of $1,500 per year
Service businesses: $50.00 per 1,000 sf. up to maximum of $1,200 per year
Special Combined Rate: $100 per 1,000 sf. for businesses with a fifty percent split
TENANT/PROPERTY OWNERS (CITY OF SPOKANE)
Tenants Zone 1A Zone 1B Zone 2
Retail (Ground level) $.22/sq. ft. $.12/sq. ft. $.10/sq. ft.
Office (Ground level) $.12/sq. ft. $.11/sq. ft. $.09/sq. ft.
Retail (Upper level) $.09/sq. ft. $.08/sq. ft. $.07/sq. ft.
Commercial Parking $3.00/space $2.50/space $2.00/space
Theaters $3.00/seat $2.50/seat $2.00/seat
Apartments $4/unit $3.50/unit $3.00/unit
Property Owners Zone 1A/1B Zone 2
Private Property $1.10/$1,000 assessed value $.70/$1,000 assessed value
Non-Profit $.60/$1,000 assessed value $.40/$1,000 assessed value
Hotel/Motel $20.00 per room
SQUARE FOOTAGE/SPACES/ROOMS (CITY OF SEATTLE)
Business space (ground floor): $.10 per square foot
Hotels/Motels: $10.00 per room
Apartments: $5.00 per apartment
Commercial parking facilities: $5.00 per space
SQUARE FOOTAGE (CITY OF BOTHELL) ZONE A ZONE B
300-700 sq. ft. $20/mo $16/mo
701-1000 sq. ft. $35/mo $28/mo
1001-2000 sq. ft. $50/mo $40/mo
2001-5000 sq. ft. $65/mo $52/mo
5001-10000 sq. ft. $80/mo $64/mo
LINEAL FOOTAGE (CITY OF EVERETT)
North/south frontage: $12.00 per lineal front foot per year
East/west frontage $12.00 per lineal front foot "factor"
SQUARE FOOTAGE (CITY OF POULSBO)
Retail: $300.00 per 1,000 sq. feet
Non-retail $180.00 per 1,000 sq. feet