ACTION ALERT!

ACTION ALERT!

Community Board Hearing: DOT wants to negate SoHo zoning!

Please attend. Bodies Count! If you absolutely cannot attend, at least send us an email at info@sohoalliance.org to be forwarded to the appropriate agencies. *Please forward this to friends and neighbors.*

WHERE: NYU Meyer Building, 4 Washington Place, just west of Broadway, Room 122 (*ID Required to enter NYU) WHEN: Wednesday, March 9, 6:30 pm,

The Problem: The NYC Department of Transportation(DOT) is attempting to do an end-run around SoHo’s protective zoning.

The DOT, whose job is to regulate traffic, suddenly feels the need to be in the restaurant business. In a pilot program, it wants to introduce its latest fad, so-called pop-up “street cafes”, using SoHo as its Petri dish. Click here to see a photograph of what DOT has in mind.

The problem with these “street cafes” is that they do not go through the same rigorous review or enforcement as regular sidewalk cafes. Why? Because they are located in the street, inches from traffic, not on the sidewalk. Thus DOT craftily avoids the laws of the multiple agencies that regulate traditional sidewalk cafes, namely: the Departments of City Planning, Landmarks Preservation, and Buildings, as well as the Departments of Health and Consumer Affairs.

We are not taking a position on the merits of a cafe operating in the street inches from moving traffic. The problem with this DOT proposal is that it bypasses and strips residents of the protection of our zoning, buildings, landmarks, health and consumer laws that are meant to benefit us, while preserving our quality-of-life and character of our communities. If someone wants to amend the laws, the City has established procedures. DOT should follow the law like everyone else, not run amok.

In fact, on its website, DOT announces without shame that it is introducing this scheme “on a street where sidewalk cafes are not allowed due to zoning restrictions”. Can you believe such chutzpah?

Background on sidewalk cafes in SoHo: Sidewalk cafes are not permitted in SoHo. Sidewalk cafes are not permitted in any residential district in the city. They are permitted only in commercial or manufacturing zones. SoHo, although technically a manufacturing district, is, in fact, heavily residential, with well over 10,000 residents.

The City Planning Commission realizes this fact and enacted a prohibition on sidewalk cafes here at the insistence of SoHo activists back in 1976. Outdoor cafes may be pleasant on the Champ Èlysèes, but they are a big problem to people living near them in busy, congested neighborhoods. The City Planning Department agrees. Several times over the years, the restaurant industry has asked City Planning to change the zoning restriction here. To its credit, the agency has consistently listened to SoHo residents and refused to budge.

The Proposal: Now, for reasons unknown, the DOT is planning a pilot program to introduce several of these unregulated “street cafes” into our community: one on Crosby, one on West Broadway and another on Sullivan, plus others in nearby residential streets in Greenwich Village. Our community board already has more sidewalk cafes than any other district in the city! We are not lacking this amenity. Plenty of them abound. We have no idea what DOT’s motivation is.

Why is DOT so intent on busting our hard-earned zoning? Why is DOT so obsessed with turning SoHo into Times Square or Disneyland?

Is it because we defeated their silly proposal in 2008 to make Prince Street a pedestrian mall, before they realized such a plan would be best suited in Times Square and eventually moved it there? DOT cannot adequately repair our cobblestone streets, nor our intersections that are all crumbling, full of deep cracks and pits. But they can blatantly violate our zoning? What’s going on here?

These “street cafes” can operate till 1:00 a.m. on weekends, and midnight Sunday through Thursday. They are free to anyone to use and would be a big appeal to tourists. Watch the Michelin Guide advertise them to the tourists who will flock here this summer.

Some basic questions: – The City charges $5000 for a sidewalk cafe permit. These streetside cafes pay no permit fee. Why does DOT support a free giveaway of our public spaces? – Who will control the behavior of people on the street? DOT has no enforcement officers. – Who would enforce closing hours or liquor violations? Not DOT. – Since these tables and chairs are open to the general public, what prevents people from hanging out in them for hours, lounging, drinking and disturbing us or our neighbors all day long? – What input has NYPD had in the process? Have the precincts and/or precinct councils been consulted? – Has DOT consulted any other City agency, or is it intent on running roughshod as a maverick agency? – How will Sanitation sweepers clean our street, since these structures will be blocking access? – Who will clean the trash the tourists leave behind, since anyone can use these streetside cafes? – Who compensates the residents for the loss of parking spots? – Will this program bring an onslaught of applications for, and proliferation of, pop-up cafes? Of all areas in the city, our community board already has almost unlimited options for public congregation in existing restaurants and cafes. Do we want to encourage more of this activity in SoHo? – Does this program provide an amenity that will service and appeal to the people who actually live and work in our neighborhoods? – Do our communities feel that this program will enhance their neighborhood or property values?

We need you to fight this DOT scheme. If these new “streetside cafes” are permitted, expect others to spring up. Expect further end-runs against our zoning.

DOT is presenting to the Transportation Committee of Community Board #2 this week. We need bodies present to convince the DOT functionaries that SoHo is completely opposed to this zoning end-run.

Please attend. Bodies Count! If you absolutely cannot attend, at least send us an email at info@sohoalliance.org to be forwarded to the appropriate agencies.

WHERE: NYU Meyer Building, 4 Washington Place, just west of Broadway, Room 122 (*ID Required to enter NYU) WHEN: Wednesday, March 9, 6:30 pm

DISTRICT PLAN FOR THE SOHO BUSINESS IMPROVEMENT DISTRICT

DISTRICT PLAN FOR THE
SOHO
BUSINESS IMPROVEMENT DISTRICT

http://www.sohoalliance.org/documents/SoHoDistrictPlan-Final 11_2010.pdf

DISTRICT PLAN FOR THE
SOHO
BUSINESS IMPROVEMENT DISTRICT
In
The City of New York
Borough of Manhattan
Prepared pursuant to
Section 25-405(a) of Chapter 4 of Title 25
of the Administrative Code of the City of New York
TABLE OF CONTENTS
Section Description Page
I. Map of the District 1
II. Present Uses of District Property and District Profile 2
III. Proposed Services 3
IV. Proposed Improvements 5
V. Proposed Sources of Funding 6
VI. Proposed Expenditures: Annual Budget 11
VII. Benefited Properties 13
VIII. District Management Association 13
IX. User Rights 14
X. Regulations 15
XI. Glossary of Terms 16
Listing of Exhibits
Exhibit I – District Map Boundaries and Benefited Properties
Exhibit II – Plan Preparation Authorization
Exhibit III – Community Maps
A. Land Use Map
B. NYPD – Precincts 1 & 5 Map
C. New York City Council District Map
D. Manhattan Community District 2 Map
E. NYS Assembly & NYS Senate District Maps
F. Congressional District Maps
Exhibit IV – Tax Blocks and Lots of Benefited Properties
1
INTRODUCTION
This District Plan describes the proposed SoHo Business Improvement District,
the sources of funding, the first year budget and budget allocations, as well as the
general guidelines pursuant to local and state law.
I. MAP OF THE DISTRICT
Geographically, the proposed SoHo Business Improvement District (the
“District”) is located in Lower Manhattan (zip codes 10012 & 10013) and is comprised of
an area of approximately 12 block-fronts, or approximately 280 taxlots. The District is
broadly defined by the east and west side of Broadway from the north side of Canal
Street to the south side of East Houston. The District is further defined and delineated
on the map annexed hereto as Exhibit I.
Mayor Michael R. Bloomberg, by a resolution dated October 12, 2010, a copy of
which is annexed hereto as Exhibit II, has approved preparation of the this plan (the
“Plan”) pursuant to authority granted by Chapter 4 of Title 25 of the Administrative Code
of the City of New York (the “Law”) for the District.
II. PRESENT USES OF DISTRICT PROPERTY AND DISTRICT PROFILE
A. Area Profile
The District, located within the SoHo neighborhood, generally contains five- to
twelve-story loft buildings, many with upper floor commercial uses ranging from small
service-oriented firms to art galleries to large companies such as Scholastic Corporation
who occupies a full building and leases additional space throughout the District. Many
loft buildings have upper floors that were converted to Joint-Live-Work-Quarters-for-
Artists (JLWQAs), while new developments have introduced residential condominium
units to the District. Ground floor retail establishments occupy most of the District’s
properties. The history of the SoHo neighborhood summarized below represents an
effort to meet the challenges associated with balancing the area’s industrial past and its
vibrant, mixed-use present and future.
The District reflects the M1-5B zoning designation and the SoHo–Cast Iron
Historic District designated by the NYC Landmarks Commission in August 1973. Many
of the structures within the SoHo-Cast Iron Historic District were built in the post Civil
War era as store and loft buildings which were occupied by a variety of commercial
establishments into the early 20th century. A major change in occupancy occurred after
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World War Two, as textile firms began to relocate, and printing firms and storage uses
moved into the large SoHo buildings. By the 1960’s, many artists established studio
space and living quarters in the loft buildings, and by the late 1970s, the trend towards
increasing rents and real estate values as well as new residential developments had
begun to take place. Today, the District still maintains the essence of its early industrial
history, even as it continues to evolve into one of the City’s most attractive and popular
residential neighborhoods and shopping destinations.
The District is located within Manhattan Community Board 2, and the area is
represented by a New York City Council member from District 1. The area is also
represented by the public officials associated with the US Senate, the US Congressional
District #8, the New York State Assembly Districts #66 and the New York State Senate
Districts #25. Additionally, the NYPD Precincts #1 & #5 covers the District. (See
Exhibit III).
B. Commercial Office and Retail Use
There are over 130 retail uses within the District, of which approximately 65% are
apparel and accessories type stores with the remaining storefronts occupied by a mix of
personal services, general merchandise, health and beauty, and food stores as well as
a limited number of eating and drinking establishments. The commercial buildings
within the District provide office space for over 800 companies.
C. Not-For-Profit & Public
The District contains one, publically owned parcel. It is a triangular-shaped
parcel at the southeast corner of Broadway and East Houston Street. The NYC Transit
Authority has jurisdiction over the property.
D. Residential
The District contains approximately 146 residential condominium units as well as
several mixed-use buildings with either co-operative residential units or Joint-Live-Work-
Quarters–for-Artists dwelling units on the upper floors.
E. Transportation Access
The District is directly served by subway and bus transportation along Broadway.
The MTA bus line M5 has several stops along Broadway and the “Broadway Local- R”
subway has stations Prince Street and then at Canal Street.
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III. PROPOSED SERVICES
A. Description of Services
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. The Services will supplement the municipal services
that are provided by the City to the District, and shall not take the place of services
provided by the City on a city wide basis. The Services shall be performed under the
direction of the SoHo District Management Association (hereafter, the “DMA”). The
Services shall include, but not be limited to, the following:
1. Sanitation and Graffiti Removal
Sanitation services may include, but shall not be limited to, the sweeping and
cleaning of sidewalks and curbs, graffiti removal and maintenance of trash
receptacles within the District. Sanitation services will be performed with the
cooperation of the NYC Department of Sanitation.
2. Public Safety and Visitor Services
Public Safety services may include, but shall not be limited to, unarmed patrol of
the District or designated to specific areas of concern. A licensed and bonded
company would provide public safety services under a contract with the SoHo
DMA and work in conjunction with the local NYPD Precinct. Visitor services may
include, but shall not be limited to, highly visible “ambassadors” to welcome,
inform and guide visitors, information kiosks, Wi Fi internet access to encourage
visitors to stay in the district, and “visitor training” designed for retailers to
increase their knowledge of area attractions, restaurants, and events.
3. Marketing, Promotion & Advertising
Promotional services may include, but will not be limited to, promotion of local
commercial opportunities and will be designed to attract, retain, and expand
business activities in the area. These activities may include, but shall not be
limited to: print and/or broadcast promotions, institutional advertising, special
events, installation of decorative holiday lighting, an interactive BID website and
destination brochure, and development of relationships with the area’s cultural
and tourist destinations.
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4. Social Services
Social service initiatives may include, but not be limited to, providing support to
not-for-profit entities that provide programming and services that contribute to the
implementing the goals and objectives of the District. More specifically, support
may be provided to a not-for-profit entity that participates in a joint project that
provides a service that benefits the district, such as, installation and maintenance
of a planting plan, or preparing and distributing promotional materials and
providing assistance for a special event.
5. Technical Services
Other Programs and Technical Services may include, but not be limited to,
engaging the services of consultants and professionals to undertake planning
and technical studies in an effort to guide and develop effective projects for the
District.
6. General & Administration
The administration of the District shall be by salaried staff which may include, but
not be limited to: Executive Director, Project Manager and any other special staff
and/or consultants that the Board of Directors may deem necessary from time to
time, such as communications professionals, and others with specialized
technical knowledge and abilities. Administrative costs may also include officerelated
expenses such as rent, telephone, insurance, supplies, fringe benefits
and other ordinary, necessary, and reasonable services and supplies.
7. 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 District Management Association, in subsequent years, the
District may provide such additional services as are permitted by law.
B. Implementation
1. It is anticipated that the District Management Association will commence
most services during the first Contract Year (hereafter defined).
5
C. General Provisions
1. All Services shall be in addition to (and not in substitution for) required and
customary municipal services provided by The City of New York (the
“City”) on a city-wide basis.
2. All Services need not be performed in every Contract Year.
3. The staff and/or subcontractors of the District Management Association
may render such administrative services as are needed to support
performance of the Services.
4. 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 (hereafter
defined) for such Contract Year, the District Management Association
may, subject to the Contract (hereafter defined), forego providing one or
more or all Services in order to have revenues sufficient to pay the debt
service (if any) required in the Budget (hereafter defined) for such
Contract Year.
IV. PROPOSED IMPROVEMENTS
A. Description of 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 and to the affected Community Board(s) prior to undertaking any
Improvement.
1. Street and sidewalk amenities to identify, enhance and beautify the District
as well as improve pedestrian circulation and safety, including, but not
limited to:
a. Information kiosks and boards;
b. Street identification and way-finding signs
c. Advocate for muni-meters where necessary;
d. Litter cans.
6
2. Capital Improvement Projects
Capital improvement projects, may include but not be limited to, storefront and or
façade improvement projects that address issues of signage, pedestrian area
lighting, among others. When necessary, the BID will assist and act as a liaison
to governmental agencies that have jurisdiction, particularly NYC Landmarks
Commission, as the SoHo BID area properties are located within the SoHo-Cast
Iron Historic District. Capital improvement projects may also include, but not be
limited to physical streetscape improvements within the District.
B. Implementation Schedule
The Improvements may be implemented on an as-needed basis.
C. General Provisions
1. 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, benchmarks for which are presently being studied and
recorded.
2. The staff and/or sub-contractors of the District Management Association
may render such administrative services as are needed to support
construction and installation of the Improvements.
V. PROPOSED SOURCES OF FUNDING
A. Sources of Funding: General
The proposed sources of funding are for all (i) Services and Improvements, (ii)
proceeds derived from indebtedness permitted pursuant to paragraph D 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 SoHo District Management
Association may apply all monies derived from the sources of funding permitted herein
toward funding any expenditure permitted under this Plan.
7
B. Sources of Funding: Assessments
The District Management Association may enter into Contract (hereinafter
defined) with the City for the purpose of having the City levy and collect, and then
disburse to the District Management Association, assessments with respect to the
Benefited Properties (hereafter defined, in exchange for the rendering of Services and
Improvements by the District Management Association. A list of the Benefited
Properties is attached hereto as Exhibit IV. Such assessments, as described in
paragraphs 1, 2, and 3 herein below, shall be defined as “Assessments”.
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 District Management Association, 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 times the
percentage for the type of property in question.
All taxable real property within the District, except any site and building thereon
devoted to entirely residential use, will be assessed each fiscal year according to
a assessment formula that is based on a Flat Rate, Broadway Front Footage
rate, side Street Front Footage (where applicable), and an Assessed Value rate
for each BID Class.
2. Classes of Properties
Class A –Wholly Commercial Use
All properties with entirely commercial use shall constitute Class A properties.
Class A properties shall be assessed based on a BID Assessment Formula equal
to: [Base Rate + (Property Front Footage * Front Footage Rate) + (Property Side
Street Footage * Side Street Frontage Rate) + (Property Assessed Value *
Assessed Value Rate)].
8
Class ACG –Commercial Condo- Ground Floor Unit
All ground floor commercial condominium units as defined by the property
condominium plan shall constitute Class ACG properties. Class ACG properties
shall be assessed based on a BID Assessment Formula equal : [Base Fee +
(Property Front Footage * Front Footage Rate) + (Property Side Street Footage *
Side Street Frontage Rate) + (Property Assessed Value * Assessed Value
Rate)].
Class ACC –Commercial Condo Use – Upper Floor or Below Grade Unit
All upper floor and below grade commercial condominium units as defined by the
property condominium plan shall constitute Class ACC properties. Class ACC
properties shall be assessed based on a BID Assessment Formula equal to :
[Base Fee + (Property Assessed Value * Assessed Value Rate)].
Class B –Ground Floor Commercial Use and Upper Floor Residential Use
All properties with ground floor commercial use and upper floor residential use
shall constitute Class B properties. Class B properties shall be assessed based
on a BID Assessment Formula equal to : [Base Fee + (Property Front Footage *
Front Footage Rate) + (Property Side Street Footage * Side Street Frontage
Rate) + (Property Assessed Value * Assessed Value Rate)].
Class C – Privately-Held Vacant Land
All privately-held, unimproved (vacant land) properties shall constitute Class C
properties. Class C properties shall be assessed based on a BID Assessment
Formula equal : [Base Fee + (Property Front Footage * Front Footage Rate) +
(Property Side Street Footage * Side Street Frontage Rate) + (Property
Assessed Value * Assessed Value Rate)].
Class D – Tax Exempt and Publically-owned
All properties with designated as “tax-exempted” by the NYC Department of
Finance will be exempt from the assessment and constitute Class E properties.
9
Class E – Residential Use Only
All properties that contain only residential uses shall constitute Class R
properties. These properties are to be assessed at a total sum of $1.00 per year.
3. Limitation on Assessment
The amounts, exclusive of debt service, assessed and levied in a given year
against the Benefited Properties as Assessments may not exceed 20% of the
total general City taxes levied in that year against the Benefited Properties.
4. Specific Formula
All properties as classified in the most recent New York City tax rolls and as
described in BID Classes will be assessed based on the formula specified above
for each BID Class. However, in order to reflect the relationship among the many
variables (ie, Total Budget, Base Fee, Front Footage, Side Street footage ,
Assessed Value, BID Class), the following defines how each rate is determined.
Base Fee: Base fee is defined as a flat annual fee of $250. The flat fee is
assigned to all BID Classes, except for BID Classes D & E.
Front Footage (FF) Rate: The front footage rate is assigned to all BID Classes,
except for BID Classes ACC, D & E. This rate is the result of the following
calculation:
[(TOTAL ANNUAL BUDGET – Class A Base Fee Sum – Class ACG Base Fee Sum –
Class ACC Base Fee Sum – Class B Base Fee Sum – Class C Base Fee Sum –
Class E Base Fee Total) *40%]
[Class A FF + (40% * Class A SSF) + Class ACG FF + (40% * Class ACG SSF) + Class
B FF+ (40%*Class B SSF) + Class C FF + (40%*Class C SSF)]
Side Street Footage (SSF) Rate: The Side Street Footage rate assigned to all
BID Classes, except for BID Classes ACC, D & E. This rate represents 40% of
the Front Footage Rate as calculated above.
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Assessed Value (AV) Rate for BID Classes A, ACG, & ACC: The Assessed
Value rate assigned to all BID Classes, except for BID Classes C, D & E. The
assessed value rate calculated for BID Classes A, ACG, & ACC as follows:
[(TOTAL ANNUAL BUDGET – Class A Base Fee Sum – Class ACG Base Fee Sum –
Class ACC Base Fee Sum – Class B Base Fee Sum – Class C Base Fee Sum –
Class E Base Fee Total) *60%]
[Class A AV + Class ACG AV + Class ACC AV+ (90%*Class B AV)]
Assessed Value (AV) Rate for BID Class B: The Assessed Value rate
assigned to BID Class B represents 90% of the Assessed Value rate for BID
Classes A , ACG, & ACC as calculated above..
C. Source of Funding: Grants and Donations
The District Management Association may accept grants and donations from
private institutions, the City, other public entities or individuals and other not-for-profit
organizations.
D. Source of Funding: Borrowings
1. Subject to subparagraphs 2 and 3 immediately hereinbelow, the District
Management Association may borrow money from private lending
institutions, the City, other public entities or [individuals] for the purpose of
funding operations, or financing the cost of improvements.
2. The use of monies received by the District Management Association from
the City or from 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 expenditures and use of such monies, and (ii) any
contractual requirements imposed by the City (whether pursuant to the
Contract or otherwise) or by any other public entity, as the case may be.
3. Any loan which the District Management Association may enter into as a
borrower shall be subject to Section VI of this Plan.
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E. Source of Funding: Charges for User Rights
Subject to the approval and control of the appropriate City agency, the District
Management Association may, in accordance with Section IX of this Plan, impose
charges as consideration for the sub-granting or sub-licensing of user rights (hereafter
defined) as such charges and user rights are described in Section IX of the Plan.
F. Source of Funding: Other
The District Management Association may derive revenues from any other
sources of funding not heretofore mentioned and which are permitted by law.
G. Assignment of Funding
The District Management Association may assign revenues from the sources of
funding described in paragraphs B, C, D, E, and F of this Section V for the purpose of
securing loans which the District Management Association obtains pursuant to
paragraph D of this Section V, provided, however, such assignments are subject to the
requirements of Section V of this Plan.
VI. PROPOSED EXPENDITURES: ANNUAL BUDGET
A. Total Annual Expenditures and Maximum Cost of Improvements
The total amount proposed to be expended by the District Management
Association for Improvements, if any, Services and operations for the First Contract
Year is $700,000, as more fully set forth in Subsection B of this Section VI.
The total amount proposed to be expended by the District Management
Association for any subsequent Contract year, shall not be greater than the aggregate
amount of all the monies which the District Management Association may collect for the
Contract Year in question from all funding sources permitted under Section V of the
Plan.
During the existence of the BID, the maximum cost of improvements, if any, will
not exceed $5,000,000.
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B. Annual Budget
1. First Year Budget – It is anticipated that the budget of proposed expenditures
to be made during the first Contract year is as follows:
a. Services
Sanitation and Graffiti Removal $ 160,000
Public Safety and Visitor Services $ 110,000
Marketing, Promotion & Advertising $ 50,000
Holiday Lighting $ 35,000
Social Services $ 10,000
Other Programs & Services/Consultants $ 40,000
General and Administrative $ 250,000
b. Improvements
Physical Streetscape & Storefront Improvements $ 45,000
TOTAL FIRST CONTRACT YEAR BUDGET $ 700,000
2. Subsequent Budgets
The District Management Association 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 District Management
Association; (ii) specify the amount, if any, proposed to be expended by
the District Management Association 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
subsequent Contract Year, shall be referred to as a ”Budget”.
C. General Provisions
1. The District Management Association shall make no expenditures other
than in accordance with and pursuant to: (i) a Budget for which a Total
Annual Budget amount has been approved by the City and the Board of
Directors of the District Management Association, (ii) any provisions in the
Contract providing for the satisfaction of outstanding obligations of the
13
District Management Association; or (iii) any provisions in the Contract
providing for the expenditure of amounts provided in the Budget for, but
expended in, a previous Contract Year.
2. The Total Annual Budget Amount shall not exceed the maximum total and
annual amount which the District Management Association may expend
for the Contract Year in question pursuant to Paragraph A of this Section
VI.
3. The Total Annual Budget Amount shall not be less than the amount
needed to satisfy the District Management Association’s debt service
obligations for the Contract Year in question.
4. Subject to the District Management Association’s need to satisfy its debt
service obligations for the Contract Year in question, the District
Management Association may revise the itemizations within any Budget.
5. In the event that in any given Contract Year the sources of funding do not
in the aggregate produce revenues equal to the Total Annual Budget
Amount for such Contract Year, the District Management Association may,
subject to the Contract, forego some or all of the non-debt service
expenditures as are provided for in the Budget in question in order to have
revenues sufficient to pay the debt service provided for in such Budget.
VII. BENEFITED PROPERTIES
The providing of Services and Improvements shall benefit all properties within the
District (the “Benefited Properties”). The Benefited Properties are described, in the
alternative, by the following: the District Map or the tax block and lots indicated in
Exhibit IV hereto.
VIII. DISTRICT MANAGEMENT ASSOCIATION
The District Management Association, a not-for-profit corporation incorporated
under Section 402 of the New York State Not-For-Profit Corporation law and is named
the SoHo Business Improvement District Management Association and has been
established as the SoHo District Management Association, Inc. The corporation is
organized for the purpose of executing the responsibilities of a District Management
Association as set forth in the Law. Furthermore, the District Management Association
will carry out the activities prescribed in the Plan and will promote and support the
District.
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The District Management Association is organized exclusively for charitable and
educational purposes as specified in Section 501 c (3) of the Internal Revenue code of
1986, as amended.
The District Management Association 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)
commercial tenants leasing space within the District; (iii) residential tenants, including
proprietary leases, leasing space within the District, if any, and (iv) elected public
officials.
The non-voting class shall include community board representatives, and may
include others with an interest in the welfare of the District. Each voting class will elect
members to the Board of Directors in the manner prescribed by the by-laws of the
District Management Association.
The Board of Directors of the District Management Association includes the
representatives of owners of record of real property within the District (which shall
constitute a majority of the Board), the representatives of both commercial and
residential tenants (including proprietary leases) leasing space in the buildings within
the District, and one member appointed by each of the following public officials: the
Mayor of the City; the Comptroller of the City, the Borough President of the Manhattan
and the City Council member representing the District, or if more than one City Council
member represents portions of the District, then by the Speaker of the City Council.
IX. USER RIGHTS
A. User Rights: General
The District Management Association 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 the User Rights to be so undertaken or permitted by the District
management Association shall have been: (i) set forth in this Plan or authorized
for licensing or granting by the City council, and/or (ii) licensed or granted to the
District Management Association by the City, pursuant to the contract and/or (iii)
authorized by the appropriate City agency having jurisdiction thereof. Once so
granted or licensed, the user Right(s) in question shall be undertaken or
permitted by the District Management Association in such a manner as to
conform to the requirements, if any, set forth in this Plan, or the aforesaid Local
Law with respect to User Right(s), and conform to the requirements authorized
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by the appropriate City agency having jurisdiction thereof. Such requirements
may include but shall not be limited to: (i) requirements as to what consideration
the District Management Association shall pay to the City for the grant and/or
license in question; (ii) requirements as to whether and how the District
Management Association may permit other persons to undertake the User
Right(s) in question pursuant to a sub-grant or sub-license; (iii) requirements as
to what charges the District Management Association may impose upon other
persons as consideration for such sub-grant or sub-license; and (iv) requirements
as to the general regulation of the User Right(s) by whomsoever undertaken.
B. User Rights: Proposed
Subject to the approval of the appropriate City agency and/or subject to any
requirements set forth in any Contract, the District Management Association may
undertake or permit the following User Rights, subject to the requirements of this
Contract, such as information and promotion kiosks, newsstands, street fairs,
and media productions.
X. REGULATIONS
The rules and regulations proposed for governing the operation of the District
and the provision of Services and Improvements by the District Management
Association (the “Regulations”) are set forth hereinbelow.
1. The District Management Association shall obligate itself to provide the
Services and Improvements in a Contract or Contracts into which both the
District Management Association and the City shall enter (collectively, the
“Contract”) for a specified term (each year of the contract term to 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 District Management Association the Assessments. Such
disbursements shall be made in accordance with general procedures for
the payment of other City expenditures.
2. The District Management Association shall comply with all terms,
conditions and requirements (i) elsewhere set forth in the Plan, and (ii) to
be set forth in the Contract and in any other contracts into which both the
District Management Association and the City may enter and (iii) shall
comply with all terms, conditions and requirements set forth in writing by
the appropriate City agency which is required to give its approval.
3. The District Management Association shall let any sub-contracts that it
intends to enter into in connection with providing the Services and
Improvements.