Plan for Renewal of the

Downtown Oklahoma City Business Improvement District

SECOND DRAFT/FINAL REPORT – 9-03-09

Contents

I. Plan Summary 1 II. Why Renew the Downtown BID? 4 III. Service Area Boundaries & Map 5 IV. Plan for Improvements & Services 7

a. Process for forming the plan b. Improvements & services

1. Downtown-wide marketing & image enhancement 2. Sub-district maintenance & marketing

V. BID Budgets & Assessments 12

a. Program budget b. Methodology & calculation of assessments

VI. BID Governance & Program Management 16

Prepared for the Downtown Oklahoma City BID Downtown Oklahoma City, Inc.

City of Oklahoma City by

Progressive Urban Management Associates, Inc.

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I. BID RENEWAL PLAN SUMMARY

The Downtown Oklahoma City Business Improvement District (“BID”) was formed in 2001 by the City in response to a petition initiated by downtown property owners. The BID is a self-imposed and self-governed property assessment that raises approximately $1,150,000 annually for downtown improvements, primarily enhanced maintenance and marketing. The initial 10-year term of the BID sunsets at the end of June 2011. To explore the renewal and expansion of the BID, a strategic planning process was completed in the fall of 2008 and spring of 2009. Facilitated by the Denver-based firm of Progressive Urban Management Associates, the planning process included substantial stakeholder outreach and a review of market conditions. Participants included more than 75 downtown property and business owners that attended small group meetings, and an additional 120 stakeholders (mostly downtown residents) responded to an online survey. From this process, and subsequent plan review meetings with the BID board of directors, downtown property owners, businesses and civic leaders, the following plan was developed to guide the renewal of the BID. Name Downtown Oklahoma City Business Improvement District

Objectives Primary reasons for renewing the BID include: • The BID is a private sector champion for downtown improvement efforts • The BID is critical for keeping downtown clean, safe and attractive • The BID helps to unify downtown interests, strengthening our collective influence • The BID is an investment that helps to protect property values and sales • In an uncertain and volatile economic climate, the BID is something we can control

and helps create stability in the downtown market.

Existing Boundaries The existing BID boundary generally encompasses about 100 blocks, including an area bounded by North Walker Avenue to the West, 10th Street to the north, Interstate 235 to the east and Interstate 40 to the south.

Proposed Expanded Boundaries

About 2 blocks are proposed to be added to the BID, including the Film District along Sheridan between Dewey and Shartel.

Sub-Districts Three sub-districts, or “benefit zones”, exist within the BID. Each zone receives a different level of service and benefit from the BID, and each zone pays a different assessment rate. The zones include:

Service Level I: (downtown-wide marketing & image enhancement only) Service Level II: (service level I plus street level maintenance) Service Level III: (service level II plus maintenance or marketing of a district amenity) • Maintenance and Security for the Central Business District Underground • Marketing Support for the Bricktown Association and Enhanced Maintenance of

the Bricktown Canal • Automobile Alley Marketing A map of the BID boundaries and benefit zones is provided on page 6.

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Improvements & Services

Service Level I Downtown-Wide Marketing & Image Enhancement services include: • Consumer marketing to increase downtown’s visibility and help enhance sales • Investor marketing to attract new investment, including new housing development • Special events to attract visitors to downtown • Street furniture and other amenities to make downtown more attractive. • Ambassadors to make downtown more welcoming. • Community development is proposed as a new service to help attract small

business tenants to downtown retail and office spaces. • Amenities to enhance downtown for residents. Service Level II adds enhanced sidewalk sweeping and landscape maintenance.

Service Level III Sub-District Maintenance & Marketing includes: • Maintenance of the Underground tunnel system in the CBD • A contribution to the maintenance of the Bricktown Canal • Marketing support for Automobile Alley and the Bricktown Association

Budget The first year budget of the renewed BID is estimated at $1,350,000, The projected first year budget follows:

 Service Level I Downtown-Wide Marketing, Image Enhancement & Staff

$ 675,000

Community Development ( ½ BID, ½ City) $ 50,000 Total Service Level I Downtown-Wide $ 725,000 Total Service Level II Street Level Maintenance $ 225,000 District-Specific Service Level III Amenities: Total Underground Maintenance

$ 150,000

Total Bricktown Canal Maintenance $ 80,000 Bricktown Association Marketing $ 130,000 Automobile Alley Marketing $ 40,000 Total BID $ 1,350,000

Cost The BID is structured so that property owners will only pay for services and improvements

that are relevant to and benefit their property. The existing assessment methodology, based upon a combination of assessed value and lot frontage, will continue to be used. Based upon property location within eight zones of benefit, estimated first year assessments are: Benefit Zone Estimated Annual

Assessment per Dollar of Assessed Value

Estimated Annual Assessment per Foot of

Lot Frontage Service Level I 0.0074 $ 1.19 Service Level II 0.0074 $ 3.31 Service Level III: Bricktown Marketing & Canal Maintenance Bricktown on the Canal Bricktown off of the Canal

0.0169 0.0169

$ 12.70 $ 2.29

 

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Service Level III continued… Estimated Annual Assessment per Dollar

of Assessed Value

Estimated Annual Assessment per Foot of

Lot Frontage Underground Maintenance CBD with Underground access CBD no Underground access

0.0074 0.0074

$ 32.92 $ 6.15

Automobile Alley Marketing Automobile Alley on Broadway Automobile Alley off of Broadway

0.0190 0.0190

$ 3.31 $ 1.19

Treatment of Owner-Occupied Residential Properties

Due to diminished benefits from BID services, owner-occupied residential properties within the BID will pay a reduced assessment rate equal to one half the assessment on assessed value and the full amount of lot frontage. Rental residential properties are considered income producing properties and are assessed at full assessment rates.

Annual Adjustment Cap

An annual adjustment cap is proposed to provide limits on increases in future annual budgets and assessments. An annual adjustment cap of 5% is suggested to accommodate annual program needs and/or changes in the annual consumer price index. Exceptions will be made for new improvements, such as the need to maintain new enhanced streetscape as it is installed.

City Participation The Oklahoma Improvement District statute requires all local and state government entities to pay their applicable share of BID assessments. The City will also provide a supplemental grant to support the Community Development activity, matching BID assessments up to $50,000 per year.

Duration The renewed BID will have a 10-year term beginning July 1, 2011. After 10 years, the district formation process must be repeated for the district to continue.

District Formation The BID may be formed by the Oklahoma City City Council upon submission of petitions that demonstrate support from ratepayers.

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II. Why Continue the Downtown BID? During the process to renew the BID, nearly 200 downtown property owners, businesses, residents and civic officials have provided opinions on why the continuation of the BID is important to Downtown Oklahoma City. Predominant themes have included: • The BID is an important private sector champion for downtown improvement efforts.

The BID is critical to maintaining civic focus on improving downtown. Unlike city government and other civic organizations, the BID is first, foremost and solely focused on downtown. It was characterized by one property owners as an “urban warrior”, working to advance downtown’s collective interests in a variety of ways.

• The BID is critical for keeping downtown safe, clean and attractive. Most downtown property owners, businesses, employees, residents and visitors observe that the area is generally safe and clean. The BID, through providing supplemental maintenance and deploying extra “eyes and ears” on the streets, helps to maintain a stable environment. Through advocacy efforts, the BID also works with the City to ensure that essential services are maintained throughout downtown.

• The BID helps to unify downtown interests, strengthening our collective influence. The BID provides a unified voice for several hundred property owners and businesses throughout downtown. The private sector can thereby be a more influential partner in affecting policies and issues that impact downtown. Having a unified downtown organization is particularly important in Oklahoma City, which has a history of small groups and sub-districts that do not always work together.

• The BID is an investment that helps improve property values and sales. The bottom line for the BID is that it is a collective investment in downtown that works to improve property values and sales. BIDs are common in downtowns throughout the country, and they have become essential tools in the downtown development toolbox. In Oklahoma City, the ability to provide supplemental marketing and maintenance services helps enhance downtown as a destination for jobs, visitors and new investment.

• In a volatile economic climate, the BID is something we can control. The BID renewal process is occurring during an unprecedented national economic recession. During this time, the BID can be part of an overall economic development strategy for downtown, providing resources to stabilize the environment, market to consumers, attract investors and hold special events to make downtown fun and vital. A new community development activity is proposed to help retain and recruit small business tenants to storefronts and office space. The BID is a flexible tool that we can control locally. Decisions are made by the BID board, a group of property and business owners working in our collective interest.

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III. Service Area Boundaries and Map The existing BID boundary encompasses about 100 blocks, including an area bounded generally by North Walker Avenue to the west, 10th Street to the north, Interstate 235 to the east and Interstate 40 to the south. The existing BID contains eight different sub-districts or “benefit zones”. The sub-districts relate to specific character districts within downtown and/or to amenities that provide benefits within limited geographic areas, including Central Business District, Central Business District/Underground, Bricktown, Bricktown/Canal, Automobile Alley, Automobile Alley/Broadway, Cultural and Civic District and Deep Deuce. Expansion Areas: In the BID renewal process, options for expanding the BID boundaries were evaluated. Expansion areas needed to demonstrate property owner support for the BID, plus a compelling need for BID services. Plus, a cost analysis was performed to ensure that the BID could effectively service expansion areas. Three areas that collectively add about 2 blocks: • The northeast section of Bricktown that is adjacent to Interstate 235 • The Film district, encompassing three blocks centered along Sheridan between Dewey and Shartel Service Areas: The BID will be configured in three “service areas”, or “benefit zones”, that correspond with specific activities and improvements. Converting from character districts to service areas more accurately defines the specific services provided within each zone, plus aims to advance the goal of a more unified downtown that is managed and marketed with support from the BID. A summary of the service areas, services provided and the prior BID sub-districts that are encompassed in the services areas in provided below. Service Area Services Provided Character Districts Affected Service Area 1 Downtown-wide marketing & image enhancement Automobile Alley, Deep Deuce Service Area 2 All services from Service Area 1 plus:

Street level maintenance Automobile Alley/Broadway, Cultural, Film, Midtown Plaza

Service Area 3 All services from Service Area 2 plus: 1. Underground security & maintenance 2. Bricktown canal maintenance & marketing 3. Automobile Alley association marketing

1. Central Business District 2. Bricktown 3. Automobile Alley

A map of the proposed service areas is provided on the following page. A map of character districts affected is provided in the Appendix.

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Map of the Proposed Downtown Oklahoma City BID by Service Zones

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Plan for Improvements and Services A. Process to Form the BID Renewal Plan To determine the most effective strategic direction for the future of the BID, P.U.M.A. undertook a comprehensive review of internal organizational documents, operating practices and external market forces in late 2008. This included on-site research, forums and one-on-one interviews with key downtown stakeholders, and an online survey distributed to downtown residents, businesses, property owners and other individuals with an interest in the future of downtown Oklahoma City. Stakeholder Interviews: More than 75 downtown stakeholders were engaged in an initial series of roundtable discussions, including property and business owners, residents, the DOKC, Inc. and BID Boards and the Automobile Alley and Bricktown Boards. Participants were asked about improvements and investments which need to occur to advance downtown. The priorities for downtown Oklahoma City that emerged from the stakeholder focus groups include: IMPROVEMENT PRIORITIES FOR DOWNTOWN OKLAHOMA CITY Increase Residential Pedestrian Walkability Expand Retail Options Improved Transit Increase/Improve Management of Parking Promote Development Organizational roles were also probed in the stakeholder focus groups, with specific questions focusing on how DOKC, Inc., financed through the BID, could be positioned to implement priority projects and programs for Downtown. The following key roles emerged: DOKC/BID ORGANIZATIONAL ROLE Research and Development Champion for Downtown – “Urban Warrior” Continue Clean Team Tangible Visible Improvements to Create Atmosphere Marketing and Special Events to Promote Downtown Community Development – Fill in the Gaps! Respond to Changing Market Dynamics Stakeholder Survey: Following the initial on-site visit, P.U.M.A. conducted an online survey to downtown stakeholders to assess overall satisfaction with DOKC, Inc. and BID’s activities and to probe their priorities for downtown improvements and investments. A response of 121 individuals was received to the survey, with the respondents falling into the following categories: DOWNTOWN INTEREST % OF RESPONDENTS Downtown Residential Renter 41.1% (44) Downtown Residential Property Owner 22.4% (24) Downtown Commercial Property Owner 17.8% (19) Downtown Business Owner 11.2% (12) Government 5.6% (6) Charitable/Non-Profit 2.8% (3)

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An additional 26 individuals responded to the survey, most of them downtown employees or residents of Oklahoma City with an interest in seeing downtown Oklahoma City continue to grow. The survey also probed which Downtown Oklahoma district respondents were from: SURVEY RESPONDENTS BY DISTRICT % OF RESPONDENTS Arts District 43.6% (44) CBD 22.8% (23) Deep Deuce 16.8% (17) Automobile Alley 15.8% (16) Bricktown 11.9% (12) Midtown 11.9% (12) Film District 2.0% (2) In assessing the current state of Downtown Oklahoma city, respondents were asked to determine whether several characteristics of Downtown had become better, worse or had seen no change in the past twelve (12) months. The following characteristics were those that respondents noted had seen the most improvement: MOST IMPROVED CHARACTERISTICS OF DOWNTOWN OKC IN THE LAST 12 MONTHS Overall Characteristic Non-Resident Resident 1 TIE (87.5%) Appearance of Downtown 1 (90.8%) 3 (80.9%) 1 TIE (87.5%) Image 2 (88.9%) 1 (87.3%) 3 (82.4%) Events and Entertainment 5 (83%) 2 (84.1%) 4 (79.6%) Overall Vitality 4 (84.6%) 4 (76.2%) 5 (77.5%) Business Growth 3 (85.2%) 6 (69.9%) Note: Residents ranked Visitor Activity as the #5 most improved characteristic. Survey respondents were then asked which current BID services should receive more emphasis. Survey respondents ranked the following as the top priorities: CURRENT BID SERVICES WHICH SHOULD RECEIVE MORE EMPHASIS

Overall Service Non-Resident Resident 1 Events/Entertainment (Downtown in December,

SoundBites in the Park, etc.) 1 1

2 Efforts to End Homelessness 2 3 3 Economic Initiatives 3 2

When asked to grade the efforts of DOKC, Inc. funded by the BID, 64.2% of respondents gave the organization a solid “B” grade. The following chart shows a breakdown of responses: GRADING DOKC, INC. EFFORTS FUNDED BY THE BID “A” – Services are excellent and I’m very satisfied. 15.8% (19) “B” – Services are good but there is room for improvement. 64.2% (77) “C” – Services are fair and there is much room for improvement. 9.2% (11) “D” – Services are poor and I am dissatisfied 0% “F” – Services are very poor and the BID has been a failure. 3.3% (4) “I” – Incomplete. I don’t know if services are good or poor. 7.5% (9) When asked to use three brief words to summarize their vision for downtown Oklahoma City as they look five years into the future, the following words were most frequently noted:

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Multicultural Vibrant Active

Attractive Alive Urban Dynamic Accessible Clean

To achieve this vision, stakeholders were asked which services the BID should be undertaking to improve downtown Oklahoma City. The following demonstrates their response: SERVICES THE BID SHOULD UNDERTAKE IN THE FUTURE TO IMPROVE DOWNTOWN Overall Service Non-Resident Resident 1 (81.4%) Improve and maintain the pedestrian environment,

including lighting, landscaping, public art, gateways, wayfinding signage, etc.

1 (77.8%) 1 (79.4%)

2 (64.6%) Improve the downtown retail and business mix through community development assistance

2 (66%) 2 (65.1%)

3 (55.8%) Promote downtown through events 4 (51.9%) 3 (53.2%) Note: Non-Residents ranked Strategy to end homelessness, panhandling as #3. When asked if stakeholders would support BID renewal if these services were provided, 78% of respondents said YES. Additionally, more than 70% of respondents said they would definitely or probably be willing to pay new or increased BID assessments for new services, as the following chart demonstrates: Willing to pay increased BID assessments? Non-Residents Residents Definitely/Probably YES 66.7% 77.5% Don’t Know 25.9% 14.5% Definitely/Probably NO 7.4% 8% Survey respondents were then asked about the one most important service they’d be willing to pay for. The top priority overall and for non-resident respondents was: Improve and maintain the pedestrian environment, including lighting, landscaping, public art, gateways,

wayfinding signage, etc. The second highest priority (and top priority for resident respondents) was: Improve the downtown retail and business mix through community development assistance.

The results from the preceding surveys and discussions led to the design and development of the following improvement and service plan.

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B. Plan for Improvements & Services Based upon the response to one-on-one interviews, roundtable discussions, online survey responses, periodic workshops with the BID board of directors and respect for rapidly changing economic conditions, the Plan for Improvements and Services for the renewed BID is based upon the following objectives: • Continue Core Services of the BID: There is strong support to continue the core services of the BID, namely

downtown-wide marketing and image enhancement and the localized maintenance of sidewalks and amenities, such as the Underground and Bricktown Canal.

• Add New Community Development Services: Responding to both stakeholder priorities and a increasingly

challenging economic climate, the introduction of community development services is recommended. Community development activities would focus on the retention, attraction and incubation of small businesses that can occupy storefronts and office spaces throughout downtown.

• Allow Flexibility to Add Services During the Next Term of the BID: The BID will need to respond to several

changes anticipated in downtown over the next ten years, including: Installation of enhanced streetscape that will require supplemental maintenance from the BID; Development of the Devon Energy Tower that will create both new demands for BID services and a revenue

source to help finance them; Additional residential development and a new constituency residing within the boundaries of the BID.

Service Level I: Downtown-Wide Marketing & Image Enhancement The BID provides a core set of services that are designed to benefit property owners throughout the BID. These services include: • Marketing & Special Events to improve downtown’s image and attract visitors to improve sales and commerce.

The BID funds a variety of marketing initiatives, including market research, decorative banners, media relations, retail promotions, parking promotions and efforts to promote living options within downtown. The BID also provides partial support (additional funding is secured through sponsorships) for downtown special events, including Downtown In December and smaller community-scaled music and entertainment productions.

• Safe & Friendly programs aim to make downtown more inviting and hospitable. The BID works with the City to

maximize police deployment in the downtown and helps support an ambassador program. NEW -- Responding to stakeholder priorities in the BID renewal process, new efforts will be placed on developing business/social service partnerships to reduce the incidence of homelessness in downtown.

• Streetscape Enhancements: A variety of improvements funded by the BID aim to make downtown more safe

and attractive, including: Street furniture, including trash receptacles, cigarette butt containers, benches and kiosks District identify markers and banners Migratory bird control to decrease bird waste and similar maintenance problems

• Advocacy and Leadership on a variety of policies and issues that affect the downtown. The BID helps support

a professional staff that works with the City, Chamber, parking authority and other agencies to advance downtown interests.

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• NEW – Community Development services are proposed to retain, attract and incubate small businesses that can occupy storefronts and office spaces throughout the downtown. This new activity responds to priorities evidenced by stakeholders in the BID renewal survey process and to an increasingly challenging economic environment. The proposed community development activity for the BID has been designed in concert with the Oklahoma City Chamber of Commerce and the City to augment and complement economic development activities that are already being managed by these agencies. Until the economic climate stabilizes, the City has offered to match BID assessments up to $50,000 per year to support the new community development activity.

• NEW - Projects for the Residential Constituency: As the residential constituency grows and they become

ratepayers into the BID, projects to benefit this new group of stakeholders and/or a partnership with Urban Neighbors on projects should be considered. Examples of projects could include development of green space and a dog park, development of a shared bike program, working with residents on the railroad quiet zone, developing more programming and activation in outdoor spaces for residents to enjoy and partnering on advocacy efforts relating to resident needs.

Service Level II Sidewalk Maintenance • Sidewalk Maintenance: The BID contracts for enhanced sidewalk maintenance that is provided in the Central

Business District, Bricktown, Culture and Arts benefit sub-districts, plus along Broadway in the Automobile Alley sub-district. The supplemental Clean Team provides additional sidewalk sweeping, power washing, trash collection and weed control.

NEW – As enhanced streetscape is installed throughout downtown, supplemental maintenance services will be adjusted accordingly. Nearly $100 million in enhanced streetscape is planned as part of previously approved bond issues and the proposed Devon Energy Tower tax increment financing district. As new streetscape is installed, properties that are within the service area affected by streetscape improvements will pay an additional frontage assessment to contribute to the maintenance of the new improvements.

Service Level III Sub-District Maintenance & Marketing The BID will continue to fund enhanced maintenance services for a variety of localized improvements throughout downtown, including: • Underground Maintenance and Security: The BID provides maintenance, systems upgrades and security for

the Underground system of pedestrian tunnels within the Central Business District sub-district. This function will continue through the renewed term of the BID. Assessments to support Underground maintenance and security are limited to properties within the Central Business District sub-district.

• Bricktown Canal Maintenance: The BID contributes to City efforts to provide enhanced maintenance for the

Bricktown Canal. As envisioned in the original BID plan in 2000, BID ratepayers were to pay one-half of sidewalk and landscape maintenance costs along the Canal. For the renewed term of the BID, the existing BID contribution to Canal maintenance costs will priced to allow private contractors to provide sidewalk and landscape maintenance. A 2009 estimate on these services amounts to $80,000 per year.

• Sub-District Marketing: The BID currently collects an assessment within the Automobile Alley sub-district to

support marketing and improvements determined by the Automobile Alley Association. For the renewed BID, the Automobile Alley Association will continue the same arrangement and an administrative fee will be added to compensate the BID’s management organization for the accounting and administration of these funds. The Bricktown Association will also receive administrative and marketing support from a new assessment to be placed on Bricktown properties.

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IV. BID Budget & Assessments A. Program Budget For the renewed BID, the budget has been designed to respect the following objectives and constraints: • Respect the Economic Climate: The BID is being renewed in the midst of a severe national economic

recession and a period of profound uncertainty. While there appears to be broad support for the BID, and evidence of some appetite for increased assessments, any adjustments will need to be modest.

• Capitalize Programs for Success: Compared to BIDs in other cities, the Downtown Oklahoma City BID is

under-capitalized for several of its initiatives. Budgets should ensure that there are sufficient resources to create visibly successful programming.

• Allow for Flexibility to Respond to Future Needs & Opportunities: As new streetscape improvements are

installed throughout downtown, the new BID will need to generate additional assessments to maintain them. Also, as the economy improves, property owners may want to increase their investment in BID services as part of an overall economic enhancement strategy.

The projected Year 1 budget for the new BID, as compared to the current FY2009 budget, is provided below. Improvements & Services Existing – FY2009 Proposed – FY2011 Service Level I: Downtown-Wide Marketing & Image Enhancement

Marketing, Image Enhancement, Safety & Advocacy 610,000 675,000 Community Development (1/2 to be funded by City) 0 50,000 Total Service Level I: Downtown-Wide Marketing & Image Enhancement

610,000

725,000

Service Level II: Street Level Maintenance

Street Level Maintenance 180,000 225,000 Total Service Level II: Street Level Maintenance

180,000

225,000

Service Level III: Sub-District Maintenance & Marketing

Underground Maintenance & Security 138,000 150,000 Bricktown Canal Maintenance 180,000 80,000 Bricktown Marketing 0 130,000 Automobile Alley Marketing 42,000 40,000 Total Service Level III: Sub-District Maintenance & Marketing

360,000

400,000

TOTAL BID

1,150,000

1,350,000

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B. Methodology & Calculation of Assessments Property and business owners and other downtown stakeholders have emphasized that an assessment formula for the Downtown BID continue to be fair, balanced and commensurate with the special benefits received. An added objective of the renewal process was to try to simplify the formula’s complexity; however, the layering and sub-districting of services from the original BID has been reaffirmed in the renewal process, leading to a similar assessment methodology. The assessment method will continue to be based upon the following parameters: • Benefits Received: BID services are differentiated between those that provide uniform benefit to all ratepayers

(i.e. “Downtown-wide”) and localized benefit to selected sub-districts (i.e. “Benefit Zone”). • Cost Allocation of Services: Services that provide uniform benefit to all ratepayers are distributed equally to

all ratepayers. Services with localized benefit are allocated within defined geographic sub-areas, or “benefit zones”.

• Benefit Zones: The pre-existing eight areas of benefit will continue within the Downtown BID. Each zone will be assessed for the cost of direct services that it receives. The following chart illustrates the service delivery for each specific zone:

Benefit Zone

Downtown-Wide

Services

Street Level Maintenance

Underground Maintenance

Bricktown Canal

Bricktown Marketing

Auto Alley Marketing

Service Level I Deep Deuce Yes No No No No No Auto Alley Yes No No No No Yes Service Level II Culture/Arts District Yes Yes No No No No Auto Alley/Broadway Yes Yes No No No Yes Service Level III CBD Yes Yes Yes – 25% No No No CBD/Underground Yes Yes Yes – 75% No No No Bricktown Yes Yes No Yes – 67% Yes No Bricktown/Canal Yes No No Yes – 33% Yes No • Affirmation of Assessed Value and Frontage: Assessed value and frontage will continue to be used as the

primary variables for calculating assessments in the Downtown Oklahoma City BID. Methods of assessment for specific services follow:

Method of Assessment

Improvement or Service

Rationale

75% Assessed Value; 25% Lot Frontage

Downtown-Wide Marketing & Image Enhancement

Services are intended to upgrade the overall image, economic vitality and appearance of downtown. Image and economic vitality benefits property occupancy and appreciation (assessed value), appearance improvements are concentrated on sidewalks (frontage).

100% Lot Frontage Street Level Maintenance Services

A uniform standard of cleanliness in public areas will provide a direct benefit to the sidewalk and frontage of all properties.

Lot Frontage: 75% Direct Benefit; 25% Indirect Benefit

Underground Maintenance & Security

Properties with direct access to the Underground pay for direct benefits. Properties in the same benefit zone but without direct access pay for indirect benefits.

Lot Frontage: 33% Direct Benefit;

Bricktown Canal Maintenance

Properties adjacent to Canal pay for direct benefit. Properties in the same benefit zone but not adjacent to Canal pay for

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67% Indirect Benefit indirect benefits. 100% Assessed Value Auto Alley & Bricktown

Marketing Services intended to promote and enhance image of sub-district. Properties in benefit zone pay for direct benefits.

Based upon the preceding methodology, the cost of improvements and services are allocated to the assessed value and linear lot frontage of properties within each zone. Estimated assessments on assessed value and linear feet of frontage for each service follow: Benefit Zone

Downtown-Wide

Services

Street Level Maintenance

Underground Maintenance

Bricktown Canal

Bricktown Marketing

Auto Alley Marketing

Service Level I 0.0074 val $1.19 foot

No No No No No

Service Level II 0.0074 val $1.19 foot

$ 2.12 foot

No No No No

Service Level III CBD 0.0074 val

$1.19 foot

$ 2.12 foot

$ 2.84 foot No No No

CBD/Underground 0.0074 val $1.19 foot

$ 2.12 foot

$ 29.61 foot

No No No

Bricktown 0.0074 val $1.19 foot

$ 2.12 foot

No $ 2.29 foot

0.0095 val

No

Bricktown/Canal 0.0074 val $1.19 foot

No No $ 12.70 foot

0.0095 val

No

Automobile Alley 0.0074 val $1.19 foot

No, except Broadway

No No No 0.0116 val

The resulting projected annual assessments for the renewed BID follow: Estimated Annual

Assessment per Dollar of Assessed

Value

Estimated Annual Assessment per Foot

of Lot Frontage

Service Level I 0.0074 $ 1.19 Service Level II 0.0074 $ 3.31 Service Level III: Bricktown Marketing & Canal Maintenance Bricktown on the Canal Bricktown off of the Canal

0.0169 0.0169

$ 12.70 $ 2.29

Underground Maintenance CBD with Underground access CBD no Underground access

0.0074 0.0074

$ 32.92 $ 6.15

Automobile Alley Marketing Automobile Alley on Broadway Automobile Alley off of Broadway

0.0190 0.0190

$ 3.31 $ 1.19

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Assessment Adjustments • Owner-Occupied Residential Properties: Owner-occupied residential properties will pay the full rate for

frontage and a one-half the rate on assessed value. Owner-occupied residential properties will receive the full benefit from street level services that are assessed by frontage, and a reduced benefit from marketing and image enhancement services that are more likely to fully benefit commercial properties. Rental residential properties are considered income-producing and will be assessed at the full rate.

• Annual Assessment Adjustments: Annual budgets and/or rates of assessment may be adjusted for annual

changes in the Oklahoma City Consumer Price Index or other program needs up to a yearly maximum of 5%. Actual budget and/or assessment rate adjustments may include any amount less than 5%. The following services will be exempt from the 5% limit, allowing for adjustments as needed:

Automobile Alley marketing budgets will be determined annually by the Automobile Alley Association board of directors, subject to approval by the BID board.

Bricktown Association marketing budgets will be determined annually by the Bricktown Association board of directors, subject to approval by the BID board.

As new streetscape is installed, appropriate street level maintenance assessments will be applied to areas that benefit from new streetscape. Additional frontage assessments to maintain new streetscape will not exceed $5.00 per liner foot.

• Term of the District: The renewed Downtown Oklahoma City will have a ten year term beginning on July 1,

2011 and ending on June 30, 2021. At the end of ten years, the BID must be renewed through the development of a new business plan, demonstration of support from ratepayers and approval by the Oklahoma City City Council.

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V. Governance Oversight of the BID is provided by the BID Advisory Board, which provides strategies for managing and providing enhanced services within the BID. The BID Advisory Board makes recommendations to the board of directors of Downtown Oklahoma City Inc. (DOKC) which is responsible for the day-to-day management of programs. Program management by DOKC allows for BID assessments to: • Leverage other funds (i.e. event sponsorships, grants, earned income) to maximize the impact of BID programs, • Be managed efficiently and cost-effectively through one umbrella downtown organization, • Strengthen the influence of downtown property and business owners by having one unified voice. The procedural guidelines governing the BID Advisory Board create two types of board members, including: • Type I voting members are chosen as representatives of sub-districts within the BID. Two members from each

sub-district (i.e. Cultural and Arts, Automobile Alley, Bricktown, Deep Deuce and the Central Business District) are required.

• Type II non-voting ex-officio members include the president of DOKC, the County Commissioner representing the downtown area and up to two city officials.

Currently, the board has 15 Type 1 members and 4 Type II ex-offcio members. For the renewed BID, two additional voting representatives are recommended to be added and/or incorporated into the existing representational structure, including: • A ratepayer representative from the Film District (can be a representative from the Cultural & Arts district) • A ratepayer representative that is a full-time owner-occupant resident (can be a representative from any sub-

district)

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Appendix: Map of Downtown Oklahoma City Character Districts & BID Boundaries

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