Dallas Public Improvement Districts (PID) Overview and Update

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2 Dallas Public Improvement Districts (PID) Overview and Update Economic Committee September 6,

3 Dallas PID Overview - Purpose Review PID governance, operating parameters, management and reporting. Provide the Economic Committee with a brief overview of the nine PIDs including: 2011 Assessment Rates; 2012 Budgets; and review of updated PID Service Plans for Request Economic Committee approval for Council action to call for a public hearing, adopt 2012 Service Plans for the nine PIDs, and set PID 2011 Assessment Rates. 2

4 Dallas PID Policy Governance PIDs are governed by state law and specifically by the City of Dallas PID Policy (originally adopted in December 2005 and last amended on October 28, 2009). Individual PIDs are governed by property owner elected boards and managed by a specifically formed non-profit organization or homeowners association. State law requires that City Council annually adopt an updated PID Service Plan, hold a public hearing and set the PID assessment rate for each district for the upcoming year. 3

5 Dallas PID Policy Creation/Operating Parameters To create a PID, property owners petition the City Council to adopt a special assessment on all property within PID boundaries for the purpose of improving services and infrastructure with the PID boundaries. In new and renewing PIDs, the City requires that Owners representing at least 60% of the value and 60% of all record Owners or 60% of land area support the creation of a new or renewing PID. In Single-Family PIDs, the City requires that Owners representing at least 66.7% of the value and 66.7% of all record Owners or 66.7% of land area support the creation of a new PID. A single-family district is defined as areas with a minimum of 30% of land area dedicated to detached single-family housing in established areas (defined as at least 80% of all single-family lots being developed). 4

6 Dallas PID Policy Creation/Operating Parameters (cont.) In Dallas, PIDs are authorized for a period of five (5) to seven (7) years with the option of renewal. The renewal process requires preparing a budget, service plan and assessment plan for the district and having property owners sign a petition supporting renewal of the PID. A PID application for creating or renewing a PID shall include a section that clearly identifies the benefit of the PID to the affected property owners and to the city as a whole, an assessment plan, and also evidence of insurance. PID applications include a map and a legal or clear description of the property included in the District. 5

7 Dallas PID Policy Creation/Operating Parameters (cont.) PIDs are required to be self-sufficient and not adversely impact ordinary service delivery of the City. PIDs in Dallas will be allowed to fund any item provided by state law. Most of the PIDs are in mixed-use districts but the PID policy allows for the establishment of PIDs in residential districts like Prestonwood. The PID Policy does NOT allow the creation of PID Districts in undeveloped subdivisions. 6

8 Dallas PID Policy Creation/Operating Parameters (cont.) PID assessments will be based on a set rate applied to total property value. The maximum PID assessment in Dallas shall be $0.15 per $100 valuation. PID petitions will be due on April 1 st annually for approval by October 1 st. Signatures for PID petitions must be gathered between October 1 and April 1 prior to the submission of the petition. 7

9 Dallas PID Policy Creation/Operating Parameters (cont.) Administrative expenses, including costs for day to day City Staff administration, for a PID are limited to 15% of the total budget in any year. A PID Service Plan shall contain procedures for the termination of the PID without imposing unintended costs on the City of Dallas. A PID cannot be dissolved without a petition from property owners and must be sufficient as for creation or renewal in accordance with Chapter 372, Section (b). 8

10 Dallas PID Policy Management and Reporting All PID management entities are required to: Submit quarterly reports on activities, expenditures and M/WBE participation Have an independent annual audit Hold an annual open meeting with at least 2 weeks notice to all property owners for input on the budget and service plan Allow City representatives to attend regular board meetings 9

11 Dallas PID Policy City Staff PID Oversight Cost Beginning in 2012, City Staff s PID oversight cost will be charged to the PIDs: Costs related to the annual Assessment Rate and Service Plan approval process (including required Dallas Morning News legal notice and mailing to property owners) Cost of PID oversight (including City staff time for attending meetings, reviewing reports, preparing tax rolls, etc.) This allows the PID monitoring process to be budget neutral for the City. 10

12 Dallas PID Policy City Staff PID Oversight Cost (cont.) The following table shows the approximate cost estimate for each PID (subject to changed based on actual costs): PIDs Dallas Morning News publication cost Estimated City staff administrative expenses Mailing cost Total estimated cost FY Deep Ellum PID $1,400 $2,700 $381 $4,481 DID $1,400 $4,003 $1,698 $7,101 Knox (new PID ) $1,400 $2,700 $53 $4,153 Lake Highland $1,400 $3,670 $874 $5,944 Oak Lawn $1,400 $1,277 $44 $2,721 Prestonwood $1,400 $3,579 $918 $5,897 Southside $1,400 $2,224 $118 $3,742 Uptown $1,400 $3,708 $2,226 $7,334 Vickery Meadow $1,400 $3,416 $2,177 $6,993 11

13 Dallas PID Policy Special Purpose PIDs Special Purpose PIDs may be requested by the City Manager s Office to address unique issues. These PIDs in Dallas will be allowed to fund any item provided by state law. These Districts may be used to address special facility, tourism or beautification issues or as part of a settlement of a legal matter. City is currently investigating the creation of a PID to support tourism efforts undertaken by the Dallas Convention and Visitors Bureau. See appendix 1- Tourism Public Improvement District. Administrative expenses in these districts shall not exceed 10% of the total budget in any year. To date, no Special Purpose PID have been created. 12

14 Dallas PID Overview Current Districts Dallas now has nine Public Improvement Districts (PIDs) Deep Ellum PID DID Dallas Downtown Improvement District Knox Street PID Lake Highlands PID Oak Lawn Hi Line PID Prestonwood PID Southside PID Uptown PID and Vickery Meadow PID See appendix 2 Public Improvement District Summary 13

15 Dallas PID Overview Valuation/Assessment Rates Property value changes in the PID districts varied from last year. Five of nine PIDs valuations declined. Downtown Improvement District, Knox Street PID, Uptown PID and Vickery Meadow PID increased in the total property value over last year. PID Name % Change in property valuation Deep Ellum PID -2.20% DID 2.50% Knox Street PID 0.70% Lake Highlands PID -6.40% Oak Lawn-Hi Line PID -6.00% Prestonwood PID -4.50% Southside PID -8.40% Uptown PID 0.30% Vickery Meadow 1.20% 14

16 Dallas PID Overview Valuation/Assessment Rates PID assessment rates have remained stable. Eight of nine PIDs will keep the same assessment rate as last year. Prestonwood PID assessment rate will increase from $ per $100 of appraisal value in 2010 to $ in 2011, an increase of 9.2% to maintain the funding level needed to support PID activities and offset declining property values. The nine PIDs will collect an estimated $7.5 million in assessment revenue to provide a range of enhanced services and improvements next year that the City would not otherwise fund due to limited City resources. 15

17 Dallas PID Overview Miscellaneous Expiration dates based on date of formation or last renewal. Number of property owners range from a low of 49 (Oak Lawn- Hi Line) to 2,470 (Vickery Meadow). Many Service Plan budgets focus on public safety, other common budget line items include: park and infrastructure improvements and business promotion/marketing. Dallas Downtown Improvement District is only PID where City owned properties are assessed. The City agreed to the assessment based on benefits received by the many City owned facilities in the downtown area. 16

18 DID City Owned Property Property owned by the City of Dallas in other PIDs is not subject to assessment. In the Downtown Improvement District for each City owned property an assessment is paid based on its market value. DID Assessment for City Owned Property 2003 $176, $191, $194, $209, $278, $745, $628, $575, $578,576 (Con. Hotel:$184,719) 17

19 DID City Owned Property (cont.) DID benefits to the City: Services/improvements: DPD supplemental security services Homeless court/case management Trash collection and public area maintenance Median improvements, landscaping, tree replacement Banners and holiday tree lighting Provides leadership to help address issues such as loitering, parking, and retail recruitment; coordination with DPD; the Downtown 360 Plan; trolley planning; marketing; and signage/wayfinding. Direct benefits to the City from the DID exceed the cumulative assessment paid by 3:1. 18

20 Dallas PID Overview District Comparison Chart Deep Ellum Downtown Knox Street Lake Highlands Expiration Accounts Value $143,541,170 $3,853,755,630 $120,601,230 $186,725,100 Assessment $172,249 $4,585,969 $180,901 $242,742 Change in value -2.2% 2.5% 0.7% -6.4% Oak Lawn-Hi Line Prestonwood $100,173,300 $347,888,520 $150,259 $323, % -4.5% Budget Park Impvmts., L/S Svcs. 25% Public Safety 44% Public Safety 11% Public Safety 51% Professional Svcs. 3% Capital Improvements 12% Capital Improvements 20% Improvements 19% Promotion 51% Park Impvmts. L/S Services 20% Promotion 55% Promotion 13% Capital Improvements 0% Communication/ Events 14% Audit/Insurance 4% Audit/Insurance 7% Audit/Insurance 7% Administration 10% Administration 10% Administration 10% Administration 14% Public Safety 41% Public Safety 90% Improvements 45% Administration 3% Promotion 1% Audit/Insurance 7% Audit/Insurance 6% Administration 7% Expiration Accounts Value Assessment Change in value Budget South Side Uptown Vickery Meadow $73,867,780 $2,756,289,540 $696,298,916 $104,338 $1,240,330 $482, % 0.3% 1.2% Safety & Security 46% Services (incl safety) & Promotion 40% Community Service 11% Maintenance 12% Capital Improvements 27% Property Standards 14% Business Promotion 13% Maintenance/Park Improvements 17% Safety & Security 50% Administration 12% Contingency and Reserve Park Lane 4% Improvements, Services 10% Audit/Insurance 6% Administration 11% Promotion 2% PID Renewal Fee 11% PID Renewal Fee 1% Economic Devel 2% Administration 11% Note: Total assessment values are based on properties assessed in the PIDs. 19

21 Recommended Next Steps Economic Committee Recommendation for Council approval of: Call for Public Hearing (to be held on September 28) to receive comments concerning the annual assessment rate for the nine PIDs at the September 14, 2011 Council meeting. Hold public hearing and at close of hearing set 2011 Assessment Rate and adopt 2012 Service Plan for the nine PIDs on September 28,

22 Appendix 1 Tourism Public Improvement District 21

23 Tourism Public Improvement District - Creation/Operating Parameters A Tourism PID (TPID) is a Public Improvement District composed solely of hotels, focused on marketing, promotional activities, improving transit connections, attracting conventions, group meetings and increasing hotel activities within Dallas. A TPID has been suggested by Dallas area hotels to allow: sufficient incentives to encourage organizations to bring large conferences, conventions, and meetings to Dallas enhanced marketing and incentive program to increase hotel stays within the city The City is currently investigate the process to create TPID, final draft will be presented to the City Council for approval soon. The TPID assessment would be based on two percent assessment on hotel room-nights sold at Dallas hotels with 100 or more rooms. No additional cost to the City for creation/operating the TPID. 22

24 Appendix 2 Public Improvement Districts Summary 23

Deep Ellum PID Annual Plan Summary Deep Ellum Expiration 12-31-2013 Accounts 420 Value $143,541,170 Assessment $172,249 Change in value -2.2% Budget Park Impvmts., L/S Svcs. 25% Professional Svcs.

25 Deep Ellum PID Annual Plan Summary Deep Ellum Expiration Accounts 420 Value $143,541,170 Assessment $172,249 Change in value -2.2% Budget Park Impvmts., L/S Svcs. 25% Professional Svcs. 3% Promotion 51% Major Service Provided: Trash removal/cleanup of trash Installation/Maintenance of Enhanced Lighting & Signage Promotional Events (Arts Festival, Pet Parade, DART station opening event) Weekend Event Security Capital Improvements 0% Audit/Insurance 7% Administration 14% 24

Dallas Downtown Improvement District (DID) - Annual Plan Summary Expiration Accounts Value Assessment Change in value Downtown 12-31-2013 1901 $3,853,755,630 $4,585,969 2.

26 Dallas Downtown Improvement District (DID) - Annual Plan Summary Expiration Accounts Value Assessment Change in value Downtown $3,853,755,630 $4,585, % Budget Public Safety 44% Capital Improvements 12% Park Impvmts. L/S Services 20% Communication/ Events 14% Administration 10% Major Service Provided: Public Safety top priority (patrols bikes for DPD). Crime down 10%; Private donations received for the purchase of 89 security cameras. Landscape planting, trash & graffiti removal. Promotional event includes: Did you know postcard campaign, e-newsletters, website upgrades, support/sponsor downtown events 25

Knox Street Improvement District - Annual Plan Summary Expiration Accounts Value Assessment Change in value Knox Street 12-31-2017 59 $120,601,230 $180,901 0.

27 Knox Street Improvement District - Annual Plan Summary Expiration Accounts Value Assessment Change in value Knox Street $120,601,230 $180, % Budget Public Safety 11% Capital Improvements 20% Promotion 55% Audit/Insurance 4% Administration 10% Knox Street PID is a new PID started operating from January 1, 2011 (created on June 23, 2010). Major Service Provided: Enhance security Primary purpose is to enhance aesthetics of the area by enhancing the pedestrian lighting, maintaining sidewalks. Promote this area as an attractive retail destination. 26

Lake Highlands PID - Annual Plan Summary Expiration Accounts Value Assessment Change in value Lake Highlands 12-31-2014 976 $186,725,100 $242,742-6.

28 Lake Highlands PID - Annual Plan Summary Expiration Accounts Value Assessment Change in value Lake Highlands $186,725,100 $242, % Budget Public Safety 51% Improvements 19% Promotion 13% Audit/Insurance 7% Administration 10% Major Service Provided: Enhance Security Landscape Enhancement & Maintenance Graffiti removal 27

Oak Lawn-Hi Line PID - Annual Plan Summary Oak Lawn-Hi Line Expiration 12-31-2016 Accounts 49 Value $100,173,300 Assessment $150,259 Change in value -6.

29 Oak Lawn-Hi Line PID - Annual Plan Summary Oak Lawn-Hi Line Expiration Accounts 49 Value $100,173,300 Assessment $150,259 Change in value -6.0% Budget Public Safety 41% Improvements 45% Promotion 1% Audit/Insurance 6% Administration 7% Major Service Provided: Enhanced public safety/security Promotion of District Maintain enhanced public improvements Litter & Graffiti removal Landscape Enhancement & Maintenance 28

Prestonwood PID - Annual Plan Summary Expiration Accounts Value Assessment Change in value Prestonwood 12-31-2018 1031 $347,888,520 $323,536-4.

30 Prestonwood PID - Annual Plan Summary Expiration Accounts Value Assessment Change in value Prestonwood $347,888,520 $323, % Budget Public Safety 90% Administration 3% Audit/Insurance 7% Prestonwood PID was renewed on June 22, 2011 Major Service Provided: Primary purpose to enhance security 24/7 security patrols 29

South Side PID - Annual Plan Summary Expiration Accounts Value Assessment Change in value South Side 12-31-2012 133 $73,867,780 $104,338-8.

31 South Side PID - Annual Plan Summary Expiration Accounts Value Assessment Change in value South Side $73,867,780 $104, % Budget Safety & Security 46% Maintenance 12% Business Promotion 13% Administration 12% Audit/Insurance 6% PID Renewal Fee 11% Major Service Provided: 50% of budget for public courtesy patrol for the 100 acre district. New business recruitment Bark Park maintenance. 30

Uptown PID - Annual Plan Summary Expiration Accounts Value Assessment Change in value Budget Uptown 12-31-2012 2250 $2,756,289,540 $1,240,330 0.

32 Uptown PID - Annual Plan Summary Expiration Accounts Value Assessment Change in value Budget Uptown $2,756,289,540 $1,240, % Services (incl safety) & Promotion 40% Capital Improvements 27% Maintenance/Park Improvements 17% Contingency and Reserve 4% Administration 11% PID Renewal Fee 1% Major Service Provided: Landscaping, tree care, street & sidewalk sweeping, trash cans & graffiti removal Off-duty police, trolley operations, marketing and promotion. Gateway markers, walking trails- Katy Trail maintenance, parks maintenance. 31

Vickery Meadow PID - Annual Plan Summary Expiration Accounts Value Assessment Change in value Vickery Meadow 12-31-2014 2413 $696,298,916 $482,993 1.

33 Vickery Meadow PID - Annual Plan Summary Expiration Accounts Value Assessment Change in value Vickery Meadow $696,298,916 $482, % Budget Community Service 11% Property Standards 14% Safety & Security 50% Park Lane Improvements, Services 10% Promotion 2% Economic Devel 2% Administration 11% Major Service Provided: Landscaping, Litter Removal, & Graffiti Abatement Maintenance of Common Areas Community Enrichment Activities, Youth Activities, & Special Events Marketing & Promotional Activities Neighborhood Planning Security Patrol, & Crime Prevention 32

34 Appendix 2 - PID Assessment Rates by PID since 2000 PID Name Deep Ellum PID N/A $ $ $ $ $ $ $ $ $ $ $ DID - Premium $ $ $ $ $ $ $ $ $ $ $ DID - Standard $ $ $ $ $ $ N/A N/A N/A N/A N/A N/A Knox Street PID N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A $ $ Lake Highlands PID N/A N/A N/A N/A N/A N/A N/A N/A $ $ $ $ Oak Lawn-Hi Line PID N/A N/A N/A N/A N/A N/A N/A N/A N/A $ $ $ Prestonwood PID $ $ $ $ $ $ $ $ $ $ $ $ Southside -Premium N/A N/A N/A N/A N/A $ $ $ $ $ $ $ Southside - Standard N/A N/A N/A N/A N/A $ $ $ $ $ $ $ Uptown PID - Premium $ $ $ $ $ $ $ $ $ $ $ $ Uptown PID - Standard $ $ N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A Vickery Meadow - Premium $ $ $ $ $ $ $ $ $ $ $ $ Vickery Meadow - Standard $ $ $ $ $ $ $ $ $ $ $ $ Note: The PID maps included in the briefing are for informational purposes only and may not have been prepared for or be suitable for legal, engineering, or surveying purposes. It does not represent an on-the-ground survey and represents only the approximate relative location of property boundaries. 33

Dallas Public Improvement Districts (PIDs) Overview and Update

Dallas Public Improvement Districts (PIDs) Overview and Update Dallas PID Overview - Purpose Review PID governance, operating parameters, management and reporting. Provide the Economic Development Committee