Business Improvement District Plan

For the

Business Alliance of Kingston

Kingston, NY September 2, 2011

District Plan for the Kingston Business Improvement District CONTENTS I. II. III. IV. V. VI. VII. Map of District......................................................................................................................................................... 3 Present and Proposed Uses of Property....................................................................................................... 3 Proposed Services ................................................................................................................................................. 5 Proposed Improvements .................................................................................................................................... 7 Proposed Sources of Financing ........................................................................................................................ 8 Proposed Expenditures: Annual Budget .................................................................................................... 11 Benefited Properties........................................................................................................................................... 13

VIII. District Management Association ................................................................................................................. 13 IX. Rules and Regulations Applicable to the District ................................................................................... 14

Exhibits ...................................................................................................................................................................................... 14 I. II. III. Exhibit A: Map of district .................................................................................................................................. 14 Exhibit B: Letter of Authorization ................................................................................................................. 14 EXhibit C: Tax Blocks and Lots of Benefited Properties ...................................................................... 14

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District Plan for the Kingston Business Improvement District 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 Citys proximity to New York, has also helped attract a growing artist community.

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District Plan for the Kingston Business Improvement District 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 districts commercial 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 Citys 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

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District Plan for the Kingston Business Improvement District 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 Kingstons 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 public and 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--vis other similar communities. Throughout the district, services would focus on sanitation, streetscape improvements and faade 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 Districts operations: 1. Sanitation, Security & Streetscape

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District Plan for the Kingston Business Improvement District 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 Districts 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 in the 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 Districts special assessment, 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.

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District Plan for the Kingston Business Improvement District

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 BIDs 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:

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District Plan for the Kingston Business Improvement District sidewalk plantings, trees, shrubs, flowers in containers or at grade, that enhance aesthetics and appearance Faade/storefront improvements that enhance aesthetics and appearance Exterior building lighting to enhance security The creation and installation of improved directional signage to parking, individual sub 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.

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District Plan for the Kingston Business Improvement District 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 Law and 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 propertys 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

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

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District Plan for the Kingston Business Improvement District 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 propertys 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.

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District Plan for the Kingston Business Improvement District 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 Benefitted Properties 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 Sources of 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:

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District Plan for the Kingston Business Improvement District 1. First Year Budget -Services Security guard Sanitation Marketing and Promotion Streetscape Maintenance BID manager BID maintenance supervisor Labor overhead Other Support Exp Total $50,000 $46,000 $12,000 $10,000 $40,000 $20,000 $15,000 $6,000 $199,000 25% 23.12% 6.03% 5.03% 20.10% 10.05% 7.54% 3.02% 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 DMAs debt service obligations for the Contract Year in question. Subject to the DMAs 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

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District Plan for the Kingston Business Improvement District 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 Districts 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 BIDs 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

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District Plan for the Kingston Business Improvement District 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 its mission 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 DI STRICT

II.

EXHIBIT B: LETTER OF AUTHORIZATION

III.

EXHIBIT C: TAX BLOCKS AND LOTS OF BENEFITED PROPERTIES

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