CommunityDevelopment Highlights 2012 0417

Home

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