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CITY OF SAN LEANDRO <br />MEMORANDUM <br />Date: April 12, 2012 <br />To: Community Development Committee <br />From: Chris, Zapata City Manager <br />Via: Luke Sims, Community Development Director <br />Cynthia Battenberg, Business Development Manager <br />By: Tim Ricard, Business Development Specialist <br />Subject: ISSUANCE OF A REQUEST FOR PROPOSALS FOR ASSISTANCE IN THE <br />ESTABLISHMENT OF A DOWNTOWN PROPERTY -BASED BUSINESS <br />IMPROVEMENT DISTRICT <br />RECOMMENDATION <br />City staff is recommending the Committee direct staff to issue of an RFP for a consultant to assist in <br />the establishment of a Property-Based Business Improvement District (PBID) in Downtown San <br />Leandro. A PBID would provide a reliable and on -going funding source for the enhanced security, <br />maintenance and marketing of Downtown San Leandro and replace funding previous provided by <br />the San Leandro Redevelopment Agency. <br />BACKGROUND AND ANALYSIS <br />A Business Improvement District (BID) is a defined area within which businesses pay an additional <br />tax or fee in order to fund improvements and programs within the district's boundaries. BID <br />parameters follow: <br />• A BID is initiated by local merchants. It is not a program or funding mechanism of the City, <br />although the City plays a role in its creation. <br />• It cannot be formed if a ma j ority of the businesses oppose it. <br />• It must be re- approved by the members themselves on an annual basis. <br />• The funds collected can only be used for projects within the district. <br />• It can be dis- established at the will of the members. <br />The City of San Leandro and the San Leandro Downtown Association went through the process of <br />creating a BID in in 1999 -2000. In October 1999, the City Council adopted Ordinance No. 99 -030 <br />establishing the San Leandro Business Improvement District to levy a benefit assessment on all <br />businesses, trades, professions, and vendors within the District, the proceeds to be used for the <br />benefit of the businesses in the Downtown area. The ordinance required that a non - profit board of <br />directors be chartered to represent the business community in the implementation of District <br />programs and services. <br />The Downtown Association became chartered as a non - profit 501 (c) (6) corporation, modifying <br />and enhancing their bylaws to reflect the requirements of the District ordinance. The proposed <br />Downtown BID would have raised approximately $50,000 annually from approximately 420 <br />downtown businesses at a rate of $50 to $500 a year per business. These funds were budgeted to be <br />used for the development and implementation of a commercial marketing program, local market <br />