Bid District Plan-final Amended Budget091611-2

8/4/2019 Bid District Plan-final Amended Budget091611-2

http://slidepdf.com/reader/full/bid-district-plan-final-amended-budget091611-2 1/14

Business Improvement

District Plan

For the

Business Alliance of Kingston

Kingston, NY

September 2, 2011



District Plan for the Kingston Business Improvement District

Page 2

CONTENTS

I. Map of District ......................................................................................................................................................... 3

II. Present and Proposed Uses of Property ....................................................................................................... 3

III. Proposed Services ................................................................................................................................................. 5

IV. Proposed Improvements .................................................................................................................................... 7

V. Proposed Sources of Financing ........................................................................................................................ 8

VI. Proposed Expenditures: Annual Budget .................................................................................................... 11

VII. Benefited Properties ........................................................................................................................................... 13

VIII. District Management Association ................................................................................................................. 13

IX. Rules and Regulations Applicable to the District ................................................................................... 14

Exhibits ...................................................................................................................................................................................... 14

I. Exhibit A: Map of district .................................................................................................................................. 14

II. Exhibit B: Letter of Authorization ................................................................................................................. 14

III. EXhibit C: Tax Blocks and Lots of Benefited Properties ...................................................................... 14




Page 3

I. MAP OF DISTRICT

The proposed Kingston Business Improvement District (KBID) is located in the City of Kingston, NY

and generally includes properties located along Broadway between Albany Avenue and Orchard

Streets in Midtown, and along Broadway between Spring and East Strand in the Rondout.

The District is further defined and delineated on the map annexed hereto as Exhibit A.

This plan (the “Plan”) was authorized by the City of Kingston Common Council on August 17th, 2011

and the resolution is annexed hereto as Exhibit B.

II. PRESENT AND PROPOSED USES OF PROPERTY

A. AREA PROFILE

The City of Kingston is located within the County of Ulster with a rich history that includes a short

stint as the former capital of New York State and the location of a thriving commercial hub at the

terminus of Rondout creek along the Hudson River. As of the 2000 census, there were 23,456

people, 9,871 households, and 5,498 families residing in the city.

The City of Kingston includes three historic districts. In the Uptown District, the “Stockade District”

once held the distinction as the former capital of New York State. Traveling south along Broadway

one encounters the “Chestnut Street Historic District” before arriving at the “Rondout -West Strand

Historic District .” The proposed Business Improvement District, with Broadway as its spine,

includes the “Rondout-West Strand Historic District”.

The proposed Business Improvement District is comprised of the following two distinct commercial

sub districts:

Midtown, centrally located along Broadway between Albany Avenue and McIntee Street.

The Midtown commercial sub-district is comprised of approximately 229 properties.

The Rondout, located along the terminus of Rondout Creek in the southeast quadrant of

the city continues along Broadway from McIntee Street to East Strand and the

waterfront. The Rondout commercial sub-district is comprised of a total of

approximately 124 properties.

While the City has experienced a certain level of disinvestment and in increase in vacancies over the

last few decades, the City of Kingston remains a diverse community whose “City in the Country”

identity continues to draw visitors and new residents alike. This identity, and the City’s proximity

to New York, has also helped attract a growing artist community.




Page 4

B. TRANSPORTATION PROFILE

The City of Kingston is very well served by regional transit, including the New York State Thruway,

a limited-service highway that deposits visitors via Interstate 587 connector to Midtown.

Commuter service is also available by bus to New York City via a bus terminal in the Uptown

district. About 10 miles away is the Rhinecliff-Kingston Amtrak station. U.S. Highway 9W runs

North-South through the City.

The Hudson River and Rondout Creek were once important commercial waterways, but now

provide the majority of their service to leisure boats.

C. COMMERCIAL PROFILE

The Midtown commercial district is characterized by a diverse mix of businesses, including a

number of businesses dedicated to the creative industries (i.e. ceramics, woodwork), restaurants,

particularly in the vicinity of the Ulster Performing Arts Centers. The Rondout commercial district’scommercial properties are characterized by more seasonal retail uses, including restaurants,

galleries, the Hudson River Waterfront Museum and the marina.

Of the approximately 460 commercial properties within the District, approximately three quarters

are classified as Non-Homestead (non-residential) properties, including a variety of businesses

such as plumbing, heating and industrial services. South of the CSX train tracks, Midtown is home to

the City’s government offices, as well as the Kingston Hospital. In the vicinity of the Kingston

Hospital are a small cluster of medical-related businesses and services, as well as a number of

restaurants primarily serving daytime employees.

D. RESIDENTIAL PROFILE

The mixed use nature of the Midtown and Rondout commercial districts means that there are a

number of solely residential properties integrated into the BID district – approximately one quarter

of benefitted properties. These include a mix of single, two-family and three-family residential

structures.

E. NON-PROFIT AND PUBLIC USES

There are a number of government facilities and non-profit cultural, social and religious institutions

within the BID boundaries. North of the CSX tracks is the Ulster Performing Arts Center. South of

the CSX tracks are City Hall, Kingston High School, YMCA, Kingston High School, and Kingston

Hospital.

F. DISTRICT ISSUES AND CONCERNS

There are two commercial sub-districts within the boundaries of the proposed Kingston Business

Improvement District. These are Midtown and the Rondout. In order to determine needs of each




Page 5

sub-district, the BAK led a needs assessment that included a survey, interviews with local

stakeholders, and facilitated discussions with four focus groups comprised of property owners,

business owners, residents and local artists. The goal was to determine the nexus of shared

concerns about current and future economic conditions and outline a set of programmatic tasks

that would form the basis of the set of services and improvements assumed by the KBID.

The assessment determined that there are a number of areas where maintenance, services and

improvement needs overlap, namely in the areas of general sanitation, security, commercial

vacancies, and access/transportation/parking. The need for substantial improvements to physical

infrastructure (streets, sidewalks, facades) was deemed most critical in the Midtown area. There is

also widespread recognition that Midtown sits at the most trafficked entrance to Kingston and

therefore has an outsized impact on public perception, which ultimately affects the rest of the City.

It was agreed that Midtown therefore more urgently requires a set of improvements to physical

infrastructure than the other two districts at this time. Issues of physical degradation contribute to

the sense of insecurity in Kingston and were important concerns that prompted the creation of the

BID.

III. PROPOSED SERVICES

A. SERVICES

The goal of the KBID is to maintain and enhance the economic viability of Kingston’s commercial

districts. To accomplish this goal, the KBID intends to provide a variety of services that are either

not provided or that are supplemental to services provided by the City of Kingston and other

agencies which service the business community. The services to be provided pursuant to this Plan

(the “Services”) may include any services required for the enjoyment and protection of the publicand the promotion and enhancement of the District, as set forth in Article 19-A General Municipal

Law.

The primary goals of the KBID are to 1) attract shoppers, visitors, employees and businesses to the

district, 2) improve the public perception of Kingston as a safe and friendly place to work, shop and

do business, and 3) work towards ensuring the business environment in Kingston remains

competitive vis-à-vis other similar communities.

Throughout the district, services would focus on sanitation, streetscape improvements and façade

improvements that address the aesthetics of the district and improve the sense of safety within the

district.

To accomplish this goal, the KBID may provide the following types of services in the first year of the

District’s operations:

1. Sanitation, Security & Streetscape




Page 6

The BID will establish a supplemental sanitation and area maintenance program to enhance the

physical appearance, cleanliness and sense of safety within the district. All services will be

supplemental to those services provided by the City of Kingston and may include, but not be limited

to: supplemental sweeping of sidewalks, curbs and gutters; maintenance of BID-sponsored

beatification efforts; and special problems related to the District’s cleanliness as may arrive.

Any sanitation and district maintenance program will supplement existing city, merchant and

property owner cleaning efforts. As such the BID will work closely with the City Department of

Public Works and local merchants and property owners. To insure success, the program will be

monitored through periodic surveys and inspections by the BID, maintenance of staff activity logs,

and on-going communication between all parties involved.

2. Marketing & Promotion

Promotional services may include, but will not be limited to promotion of local commercial

opportunities and will be designed to attract, retain and stabilize and expand business activities inthe area. These activities may include, but shall not be limited to: publication of newsletters, a

Kingston business directory and destination brochures, print, broadcast and/or internet

promotions, institutional advertising, public relations campaigns for holidays and season activities,

the creation and installation of promotional signage; tourism assistance and special promotions.

The marketing and promotional program is designed to supplement and support existing efforts

and will be monitored through periodic surveys and on-going oversight by local merchants and

property owners. Efforts will be made to promote shopping in the district to both local residents as

well as shoppers throughout the region.

3. Administrative Management

The District will be managed and administered by a District Management Association (DMA), to be

established as a not-for-profit corporation. The DMA will be responsible for carrying out the

activities prescribed in this plan and conducting activities to promote and support eh District.

Management of the District entails securing, overseeing and monitoring all supplemental services

to be undertaken in the District as specified herein. Additional responsibilities may include, but

need not be limited to: budgeting, fiscal coordination, identifying and apply for any public or private

funds available to support District operations and/or to offset the District’s specialassessment,

business advocacy, and periodic reporting as necessary to City and State agencies.

Administration of the District will be by salaried staff which may include but will not be limited to:

an Executive Director, staff directors, secretary and other special staff and/or consultants that the

Board of Directors may deem necessary from time to time, such as accountants and legal advisors,

with fringe benefits and expenses. Administrative costs may also include office rental and

equipment, office supplies including telephones, and insurance.




Page 7

4. Additional Services

Subject to any approvals and controls that may be required by any city agency having jurisdiction

thereof, and in addition to the approval of the Board of Directors of the BID, as defined below, in

subsequent years, the District may provide such additional services as are permitted by law.

B. IMPLEMENTATION SCHEDULE

Implementation of BID Services will be authorized through a contract between the City of Kingston

and the DMA. The Contract will define the responsibilities of the DMA and provide for the levy and

collection, by the City of Kingston, of the special assessments to finance the BID’s operations. It is

anticipated that the Kingston BID will commence most services during the first Contract Year (each

year of the Contract term between the parties constitutes a “Contract Year”). The services may be

phased in over time as revenues are generated.

C. GENERAL PROVISIONS

All services shall be in addition to (and not in substitution for) required and customary municipal

services provided by the City of Kingston) on a city-wide basis.

All Services need not be performed in every Contract Year.

The staff and/or subcontractors of the DMA may render such administrative services as are needed

to support performance of the Services.

In the event that in any given Contract Year the sources of funding (as same are described in Section

V of this Plan) do not in the aggregate produce revenues equal to the Total Annual Budget Amount

(hereinafter defined), the DMA may, subject to the Contract, forego providing one or more or all

services in order to have revenues sufficient to pay the debt service required in the Budget

(hereinafter defined) for such Contract Year.

IV. PROPOSED IMPROVEMENTS

D. IMPROVEMENTS

The improvements (the “Improvements”) to be provided pursuant to this Plan may include, but are

not limited to, the following, provided that any Improvements that require review and approval by

an appropriate City agency shall be submitted to that City agency prior to undertaking any

Improvement.

Improvements refer to capital investments to enhance, beautify and improve the sense of security

within the district, including the following proposals, but not limited to:




Page 8

sidewalk plantings, trees, shrubs, flowers in containers or at grade, that enhance

aesthetics and appearance

Façade/storefront improvements that enhance aesthetics and appearance

Exterior building lighting to enhance security

The creation and installation of improved directional signage to parking, individualsub districts and other district amenities

Open space enhancements

The BID does not anticipate making any Improvements in the first year of operation. The BID may

make Improvements in subsequent years.

E. IMPLEMENTATION SCHEDULE

The Improvements shall be implemented on an as needed basis after the appropriate planning,

design and approvals are completed and secured.

F. GENERAL PROVISIONS

All Improvements shall be in addition to and not in substitution for required and customary

municipal improvements provided by the City on a citywide basis.

The staff and/or subcontractors of the DMA may render such administrative services as are needed

to support construction of the Improvements.

V. PROPOSED SOURCES OF FINANCING

A. SOURCES OF FUNDING: GENERAL

The proposed sources of funding are for all (i) Services, (ii) proceeds derived from indebtedness

permitted pursuant to paragraph B herein below, and (iii) administrative costs necessary to

support the program contemplated under this Plan, and (iv) Improvements shall be the sources of

funding described in paragraphs B through F (inclusive). Subject to requirements of law, the DMA

may apply all monies derived from the sources of funding permitted herein toward funding any

expenditure permitted under this Plan.

B. SOURCE OF FUNDING: ASSESSMENTS

The DMA may enter into a Contract (hereinafter defined) with the City of Kingston for the purpose

of having the City levy and collect, and then disburse to the DMA, assessments with respect to the

Benefited Properties in exchange for the rendering of Services and Improvements by the DMA. Such

assessments, as described herein, shall be defined as “Assessments”.




Page 9

1. General

To defray the cost of Services and Improvements in the District, all real property in the District shall

be assessed in proportion to the benefit such property receives from the Services and

Improvements. Each property will be assessed an amount determined by the DMA, that when

totaled together with the amounts for other properties in the District, shall yield an amount

sufficient to meet its annual budget. Each individual assessment shall be calculated pursuant to the

assessment formula set forth below multiplied by the percentage for the type of property in

question. The assessment amount may not be greater than that allowed pursuant to Article 19-A of

the New York State Municipal Law, however, in any given year, the DMA may elect to assess

properties at a lower rate.

2. Specific Formula

Each year, each property will be assessed at a rate determined by the DMA, which may be less than,

but not greater than, that allowed pursuant to Article 19-A of the New York State Municipal Lawand yielding an amount sufficient to meet its annual budget. In general, the BID levy for all

commercial properties will be applied on the total assessed value of the property within the

boundaries of the District. The assessed value of each property shall be defined as the amount

reflected in the most recent City tax rolls. Tax Exempt and Publically Owned Properties such as

churches, government agencies and not-for-profit owned properties, shall be exempt from the

assessment. Solely residential properties shall be assessed at $1.00 per year.

Specific classes of property and the formulas for their assessment are as follows:

Class A: Non-Homestead Properties

All properties, commercial in nature, defined as “Non-homestead class” pursuant to Article 19,

Section 1901 of the New York State Real Property Tax Law shall constitute Class A Property.

The BID levy or assessment for Class A Property will be calculated at a rate based on each

property’s total assessed value as shown on the most recent tax roll of the City of Kingston. The BID

assessment can be no more than that allowed pursuant to Article 19-A of the New York State

Municipal Law in any given year. Accordingly, the maximum BID levy in any year will be

determined by the following formula:

BID Assessment =

(20% x Municipal Non-Homestead Tax Rate) x (Full Taxable Non-Homestead Assessment)1

1 Annually, both the Municipal Non-Homestead Tax Rate and the Full Taxable Non-Homestead Assessment will be based on the most recent year’s rate and assessment.




Page

10

In any given year, the BID may elect to assess each property at less than the permitted full

assessment allowed as defined above. Accordingly the BID has elected that in the first Contract

Year, the Class A Property Rate shall be charged at less than the full BID assessment allowed; it will

be calculated at a rate of .002298 of each property’s total assessed value.

Class B: Homestead Properties

All properties, residential in nature, defined as “Homestead class” pursuant to Article 19, Section

1901 of the New York State Real Property Tax Law shall constitute Class B properties. These

properties are to be assessed at a total sum of $1.00 per year.

Class C: Tax Exempt and Publically Owned

Properties devoted to public and/or Not-for-Profit uses, including municipal parking facilities, and

which are exempt from taxes shall constitute Class C Property and shall not be assessed.

C. SOURCES OF FUNDING: ADDITIONAL

Grants and Donations

The DMA may accept grants and donations from private institutions, the City, County, State and

Federal governments, or other public entities, individuals, and other not-for-profit organizations.

Borrowing

Subject to subparagraphs 2 and 3 immediately herein below, the DMA may borrow money from

private lending institutions, the City, other public entities, individuals or other not-for-profit

organizations for the purpose of funding operations or financing the costs of improvements.

The use of monies received by the DMA from the City or any other public entity, whether in the

form of a grant or as proceeds from a loan, shall be subject to: (i) all statutory requirements

applicable to the expenditure and use of such monies, and (ii) any contractual requirements

improved by the City (whether pursuant to the Contract or otherwise) or by any other public entity,

as the case may be.

Any loans, which the DMA may enter into as borrower, shall be subject to Section VI (“Proposed

Expenditures: Annual Budgets”) of this Plan.

Charges for User Rights

The DMA may undertake or permit commercial activities or other private uses of the streets or

other parts of the District in which the City has any real property interest (the “User Rights”)

provided, however, that (i) the User Rights to be so undertaken or permitted by the DMA shall have

been set forth in this Plan or authorized for licensing or granting by the City to the DMA.




Page

11

Other

The DMA may derive revenues from any other sources of funding not heretofore mentioned and

which are permitted by law.

The amounts, exclusive of debt service, assessed and levied in a given year against the BenefittedProperties as Assessments may not exceed 20% of the total general City taxes levied in that year

against the Benefitted Properties.

D. ASSIGNMENT OF FUNDING

The DMA may assign revenues from the sources of funding described in paragraphs A, B, and C of

this Section V for the purposes of securing loans which the DMA enters into pursuant to paragraph

D of this Section V, provided such assignments are subject to the requirements of Section VI

(“Proposed Expenditures”) of this Plan.

VI. PROPOSED EXPENDITURES: PROJECTED ANNUAL BUDGET

A. TOTAL ANNUAL EXPENDITURES

The total amount proposed to be expended by the DMA in accordance with the approved Plan for

Services in the first year of the Districts operations is approximately $200,000, as more fully set

forth in subsection B of this Section VI (“Proposed Expenditures”).

The annual amount, and use, of funds to be raised and expended by the DMA in subsequent years

shall not be greater than the aggregate amount of all monies which the DMA may collect for the

Contract Year in question from all funding sources permitted under Section V (“Proposed Sourcesof Financing”) of this Plan.

During the lifetime of this BID, the maximum or total cost (amount) of funds to be expended on

capital improvements, if the BID decides to undertake any improvements, shall not exceed

$1,000,000.

B. PROJECTED ANNUAL BUDGET

It is estimated that the annualized budget of proposed expenditures to be made during the first

Contract Year is as follows:




Page

12

1. First Year Budget -Services

Security guard $50,000 25%

Sanitation $46,000 23.12%

Marketing and Promotion $12,000 6.03%Streetscape Maintenance $10,000 5.03%

BID manager $40,000 20.10%

BID maintenance supervisor $20,000 10.05%

Labor overhead $15,000 7.54%

Other Support Exp $6,000 3.02%

Total $199,000 100.00%

Improvements are not anticipated during the first Contract Year.

2. Subsequent Budgets

The DMA shall establish for each Contract Year after the first Contract Year, a proposed budget of

expenditures. Such proposed budgets shall (with respect to the Contract Years to which they

respectively apply): (i) reasonably itemize the purpose for which monies are proposed to be

expended by the DMA; (ii) specify the amount, if any, proposed to be expended by the DMA for debt

service; and (iii) set forth the total amount proposed to be expended (the “Total Annual Budget

Amount”). A proposed budget, whether for the First Contract Year or for a subsequent Contract

Year, shall be referred to as a “Budget.”

C. GENERAL PROVISIONS

The DMA shall make no expenditure other than in accordance with and pursuant to: (i) a Budget for

which a Total Annual Budget Amount has been approved by the Mayor and the City Council and the

Directors of the DMA, (ii) any provisions in the Contract providing for the satisfaction of

outstanding obligations of the DMA; or (iii) any provision sin in the Contract providing for the

expenditure of amounts provided for in the Budget, but not expended in the previous Contract Year.

The Total Annual Budget Amount shall not exceed the maximum total and annual amount which the

DMA may expend for the contract year in question pursuant to paragraph A of this Section VI.

The Total Annual Budget Amount shall not be less than the amount needed to satisfy the DMA’s

debt service obligations for the Contract Year in question.

Subject to the DMA’s need to satisfy its debt service obligations for the Contract Year in question,

the DMA may revise itemizations within any Budget.

In the event that in any given Contract Year the sources of funding do not in the aggregate produce

revenue equal to the Total Annual Budget Amount for such contract Year, the DMA may, subject to

the Contract, forego some or all of the non-debt service expenditures as are provided for in the




Page

13

Budget in question in order to have revenues sufficient to pay the debt service provided for in such

Budget.

VII. BENEFITED PROPERTIES

The provision of Services and Improvements shall benefit all properties within the District (the

“Benefited Properties”). The Benefited Properties are described by the tax blocks and lots listed in

Exhibit X herein and as found on the District Map.

VIII. DISTRICT MANAGEMENT ASSOCIATION

The District Management Association (DMA) established as the Kingston Business Improvement

District will be incorporated under Section 402 of the New York State Not-for-Profit Law. The DMA

is organized for the purpose of executing the activities prescribed in this plan and conducting

activities to promote and support the District. Management of the District entails securing,

overseeing and monitoring all supplemental services to be undertaken in the District as specified

herein. Additional responsibilities may include, but need not be limited to: budgeting, fiscal

coordination, indentifying and applying for any public or private funds available to support District

operations and/or to offset the District’s special assessment, business advocacy, and periodic

reporting as necessary to City and State agencies.

Management of the District may be accomplished by hiring of staff and/or consultants, by

subcontracting management services to a local organization, or by volunteerism from the BID’s

Board of Directors or membership (hereinafter defined in Section VIII). Special staff or consultants

that may need to be hired include, but need not be limited to: a BID Manager, promotion specialists,

economic development and planning consultants, accountants, and legal counsel.

The DMA will be organized exclusively for the purposes as specified in Section 501 © of the Internal

Revenue Code of 1986, as amended.

The DMA will have four classes of voting membership and one class of non-voting membership. The

voting classes are composed of (i) owners of record of real property located within the District; (ii)

retail and commercial tenants leasing space within the District; (iii) residential tenants leasing

space within the District; (iv) public representatives which shall included one member appointed

by public representatives pursuant to Article 19a. The non-voting class may include a community

representative and others with an interest in the welfare of the District, including not-for-profit

institutions serving the District.

Each voting class will elect members of its own class to the Board of Directors in the manner

prescribed by the by-laws of the Corporation. The Board of Directors will include representatives of

the owners of record of real property within the District (which shall constitute of a majority of the

Board); the representatives of commercial tenants lasing space within the District; representatives

of residential tenants leasing space within the District; and one members appointed by each of the

following public officials: the Chief Executive Officer, Chief Financial Officer and a representative of




Page

the City legislative body. It is the intent of the KBID that the Board of Directors includes owners of

record who operate for-profit, commercial businesses within the District.

IX. RULES AND REGULATIONS APPLICABLE TO THE DISTRICT

The rules and regulations proposed for governing the operation of the District and the provision of

Services and Improvements by the DMA (the “Regulations”) are set forth below:

The DMA shall obligate itself to provide the Services and Improvements in a Contract or Contracts

into which both the City and the DMA shall enter (collectively the “Contract”) for a specified term.

Each year of the Contracts shall be defined as a “Contract Year.” The City shall, pursuant to the

terms, conditions and requirements of the Contract, levy and collect, and then disburse to the DMA,

the Assessments. Such disbursements shall be mad in accordance with general procedures for the

payment of other City expenditures.

The DMA shall provide an annual report of its activities, goals and achievements in relation to itsmission as it has been set forth in this Plan. This will be submitted to the Mayor and the City Council

and copies will be available upon request.

The DMA may let sub-contracts for the performance of supplemental services and improvements

subject to the applicable provisions of law and contracts within the City.

EXHIBITS

I. EXHIBIT A: MAP OF DISTRICT

II. EXHIBIT B: LETTER OF AUTHORIZATION

III. EXHIBIT C: TAX BLOCKS AND LOTS OF BENEFITED PROPERTIES

Date post:	07-Apr-2018
Category:	Documents
Upload:	daily-freeman
View:	218 times
Download:	0 times

Bid District Plan-final Amended Budget091611-2

Documents