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Pr which businesses do pay the BID assessment are not included in the BID boundaries map. These parcels are identified on the map that is currently in the PMC as Attachment 2. To be consistent with the intent and practice of the BID assessment levy, the PDA Advisory Board is recommending, and staff is supporting, an updated map reflecting the removal and addition of the identified parcels be placed in Chapter 5.28.040 to replace the existing BID boundaries map. Attachment 3 shows the proposed replacement map. Elimination of New Business Exemption The PDA annual assessment revenue in 2016 is budgeted at$66,000, which remains the same as in 2015. Currently, assessments are based on proximity to Main Street, with a minimum assessment of $50 and a maximum assessment of $350. The assessment formula — which has been used since 1996 — is based on the annual business license payment and is calculated as follows: • businesses located curbside and downstairs on Main Street are assessed at two times (2X) their business license; • businesses with a Main Street address located upstairs, or not curbside, are assessed at a rate of one and a half times (1'1X) their business license; • all other businesses (those located off Main Street) pay an amount equal to one times (1X) their business license. Non-profit businesses within the District are not assessed. There are no proposed changes in the formula for levying the assessment; however, the Advisory Board is recommending the new business exemption be eliminated, and staff supports this recommendation. PMC Chapter 5.28.100 waives payment of the BID assessment during a business's first year of operation within the downtown district. The Advisory Board is recommending this exemption be eliminated for two reasons. First, the PDA staff spends significant time and effort to support and promote a business that's new to the downtown — perhaps more so than in later years when the business is firmly established — such that the new business is receiving substantial value from the PDA's work but not paying for the benefit. Second, these businesses are often surprised when the BID assessment is applied for subsequent years despite acknowledgement during the business license application process at the onset of operation in the downtown district. Staff estimates the assessment revenues to be collected as a result of the elimination of the new business exemption to be approximately $4,000 annually— given that most new businesses will be assessed $50 in the first year—although the proposed change is not based on financial return to the City or PDA. The proposed change to the PMC would remove Section 5.28.100 and is reflected as follows: Page 4 of 5