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CommunityDevelopment Highlights 2012 0417
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CommunityDevelopment Highlights 2012 0417
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5/15/2012 3:26:02 PM
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CM City Clerk-City Council
CM City Clerk-City Council - Document Type
Committee Highlights
Document Date (6)
4/17/2012
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_CC Agenda 2012 0521 CS+RG
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advertising including a "Shop Downtown First Campaign" as well as streetscape beautification and <br />seasonal decorations. A BID Formation Committee worked on the creation and outreach materials <br />as well as gathering community support. <br />In July, 2000 the City Council unanimously authorized the City Manager to execute an agreement <br />with the Downtown Association for the administration of the Downtown San Leandro Business <br />Improvement District. The City of San Leandro conducted the required public hearing process and <br />did not receive the 50% protest votes by the downtown businesses required to stop the formation of <br />the BID. However, collection of the BID assessment was never approved by the City Council. <br />With the elimination of Redevelopment funding and the value of enhanced marketing, maintenance <br />and security having been proven over the past five years, City staff has been in discussion with the <br />Downtown Association and select property owners who would like to explore the creation of a <br />Property-Based Business Improvement District (PBID). The Downtown Association Executive <br />Board and property owners have requested the City's assistance in the creation of a PBID. <br />A PBID functions very much like a BID and is a special benefit assessment district created to raise <br />funds within a specific geographic area. However, rather than assessing the businesses through the <br />business license renewal or special fee, the funds are raised through a property tax assessment. <br />Assessments are collected by the County along with the semiannual property tax bills and funds are <br />transferred first to the City and then to the non - profit corporation or "owners association" which <br />will manage the funds. The non - profit corporation is normally comprised of the property owners <br />paying into the district. The PBID format eliminates the need for the City to collect the assessment <br />through business licenses and is recommended over a BID because: <br />• PBIDs engage property owners — stakeholders that tend to have a long term investment and <br />community improvement goals; <br />• PBIDs are administered more efficiently with a smaller and more stable base of ratepayers; <br />• PBID assessments are collected through property tax bills and carry the same enforcement <br />mechanisms; <br />• All classes of property within a PBID must participate, including commercial, government, <br />residential, non - profits and mixed -use; <br />• PBIDs can offer different levels of services by geographic benefit zones and can raise more <br />revenue than traditional BIDs; <br />• The PBID petition and mail ballot processes require majority support from property owners <br />— this provision compels greater involvement and creates a strong mandate for new services. <br />The process of establishing a PBID requires the formation of a Steering Committee of local <br />property and business owners who would work with the City selected consultant to create a PBID <br />Management District Plan (Management Plan). The Management Plan outlines the special benefit <br />services to be funded, the term of the district, the boundaries, and the assessment methodology and <br />identifies a formula for determining the costs to each property owner, as well as the management <br />structure of the district. Once the Management Plan has been approved by consensus of the <br />Steering Committee, a petition is circulated to property owners. If this petition demonstrates a 50% <br />weighted support' of the property owners for the Management Plan the Steering Committee can <br />request that the City Council adopt a "Resolution of Intent" and begin the public hearing process. <br />1 Weighted Support is usually based upon one or more of the following criteria: lot size; building square footage; linear <br />frontage on a main commercial corridor; and /or the use of the property and the specific zoning restrictions in place <br />
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