Chapter 5.40
FORTUNA BUSINESS IMPROVEMENT DISTRICT
Sections:
5.40.010 Establishment of district.
5.40.040 Residential exclusion.
5.40.070 Purposes of assessments.
5.40.080 Collection of benefit assessment.
5.40.010 Establishment of district.
A parking and business improvement district to be known as the “Fortuna Business Improvement District” (the “district”) is hereby established pursuant to the Parking and Business Improvement Area Law of 1989, Streets and Highway Code Section 36500 et seq. The boundaries of the district and of the three benefit core areas within the district shall be as set forth on Exhibit A attached to the ordinance codified in this chapter and on file in the city clerk’s office. (Ord. 2010-685 § 1; Ord. 2002-636 § 2; 90-550 § 1(A)).
5.40.020 Definitions.
For the purpose of calculating the amount of assessment owed, the following definitions shall apply:
“Fiscal year” means July 1st to June 30th of each year.
“Gross receipts” includes the total amount of the sale price of all sales and the total amount charged or received for the performance of any act or service, of whatever nature it may be, for which a charge is made or credit allowed, whether or not such act or service is done as a part of or in connection with the sale of materials, goods, wares or merchandise. Included in gross receipts shall be all receipts, cash, credits and property of any kind or nature, without any deduction therefrom on account of the cost of the property sold, the cost of the materials used, labor or service costs, interest paid or payable, or losses or other expenses whatsoever. Excluded from gross receipts shall be cash discounts allowed and taken on sales; credit allowed on property accepted as part of the purchase price and which property may later be sold; any tax required by law to be included in or added to the purchase price and collected from the consumer or purchaser; such part of the sale price of property returned by purchasers upon rescission of the contract of sale as is refunded either in cash or by credit; amounts collected for others where the business is acting as an agent or trustee to the extent that such amounts are paid to those for whom collected; that portion of the receipts of a general contractor which represent payments to subcontractors; provided, that such subcontractors are licensed under this chapter, and provided the general contractor furnished the collector with the names and addresses of the subcontractors and the amounts paid each subcontractor.
“Hospitality” businesses include all bars, restaurants, hotels, motels and RV parks.
“Professions” and “service” businesses include general office, attorney, architects, physicians and others in a medical/health service field, news and advertising media, printers, photographers, real estate brokers, builders, service stations, repairing and servicing businesses, renting and leasing businesses, laboratories (including dental and optical), hearing aid services, utilities, artists and designers, vending machine businesses, and other business not included in the “retail” category, as defined in this section.
“Retail businesses” include all businesses not covered by other definitions set forth in this section at least 50 percent of whose gross income is derived from “retail sales” as that is defined in the California Sales and Use Tax Law. The fact that a substantial part of its business consists of other than retail sales does not exclude the business from classification so long as such other business component does not account for more than 50 percent of such business gross income.
Wholesale and Manufacturing. “Wholesale” businesses are those that sell (something) in quantity usually, for resale. “Manufacturing” businesses are those that produce something from raw materials by hand or machinery. (Ord. 2002-636 § 2; Ord. 90-550 § 1(F)).
5.40.030 Benefit assessment.
All businesses, trades and professions located within the boundaries shown on Exhibit A attached to the ordinance codified in this chapter and found on file in the office of the city clerk, shall, commencing July 1, 1990, pay a benefit assessment in addition to the city business license fee, in the amounts identified in Exhibit B as amended on March 18, 2002, and attached to the ordinance codified in this chapter and found on file in the office of the city clerk.
The benefit assessment shall be payable annually during each fiscal year, as provided in FMC 5.40.080. (Ord. 2002-636 § 2; Ord. 94-595 § 2; Ord. 90-550 § 1(B)).
5.40.040 Residential exclusion.
No one shall be required to pay an assessment based on a residential use within the district. (Ord. 2002-636 § 2; Ord. 90-550 § 1(C)).
5.40.050 Advisory committee.
A. The authorized number of members of the advisory committee of the district shall be seven unless modified by an amendment of this chapter. The city council shall appoint the advisory committee and prioritize appointments such that the advisory committee is comprised of the following appointments:
1. Downtown core area, one representative;
2. Redwood Village Shopping Center core area, one representative;
3. Strongs Creek Plaza core area, one representative;
4. City council liaison, one representative;
5. Citywide, one representative;
6. Fortuna chamber of commerce, one representative;
7. One person nominated by the six representatives identified above.
B. The city council, in making appointments to the advisory committee, shall endeavor to make appointments so that the following categories of businesses are represented on the advisory committee:
1. Retail, three representatives;
2. Professional and service, two representatives;
3. Manufacturing/wholesale, one representative; and
4. Hospitality, one representative.
C. Each member of the advisory committee shall serve a two-year term and may be eligible for reappointment. The city council may stagger terms of the advisory committee members by resolution.
D. The advisory committee shall make recommendations and report to the city council on the general expenditure of revenues derived from the levy of assessments pursuant to this chapter, on the classification of businesses, as applicable, and on the method and basis of levying the assessments, among other responsibilities as may be directed by the city council or as required by law. (Ord. 2022-756 § 3; Ord. 2010-685 § 2; Ord. 2002-636 § 2; Ord. 97-610 § 2; Ord. 90-550 § 1(D)).
5.40.060 Allocation of funds.
A total of 62 percent of the funds raised within each of the three core areas identified in Exhibit A attached to the ordinance codified in this chapter and found on file in the office of the city clerk shall remain in such area. These funds shall be used to promote such area. The advisory committee shall appoint a subcommittee of no less than three persons from each individual core area to determine how the funds are spent within the core area and to promote the purposes of the district within the core area. The advisory committee shall act as the subcommittee until a subcommittee is appointed or in the event of a vacancy causing the number of subcommittee members to be less than three.
The funds raised within the citywide area and the remaining 38 percent of the funds raised within each of the three core areas shall be used to promote the entire community. The advisory committee shall determine how these funds are spent. (Ord. 2022-756 § 4; Ord. 2010-685 § 3; Ord. 2002-636 § 2; Ord. 90-550 § 1(E)).
5.40.070 Purposes of assessments.
The purposes for which the funds raised by said benefit assessment shall be devoted to the statutory purposes set forth in Section 36500 of the Act, or one or more of said purposes, which are as follows:
A. Promotion of public events which are to take place on or in public places in the district;
B. Decoration of any public place in the district;
C. Furnishing of music in any public place in the district;
D. The general promotion of business activities in the district;
E. Marketing to fill available space, recruiting and expansion of commercial enterprise. (Ord. 2002-636 § 2; Ord. 90-550 § 1(G)).
5.40.080 Collection of benefit assessment.
The benefit assessment authorized by the ordinance codified in this chapter shall be billed by the city as of July 1st of each fiscal year and shall be paid within 30 days thereafter. Each billing shall represent 100 percent of the annual assessment. It shall be unlawful for any person to transact and carry on any business in the city without first having paid the required Fortuna business improvement district assessment. This obligation shall be enforced by the city, pursuant to the provisions of Chapter 1.08 FMC. (Ord. 2003-640 § 1; Ord. 2002-636 § 2; Ord. 90-550 § 2).