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Action 4.8: Explore Establishing a Downtown Business Improvement District The San Leandro Downtown Business Association is a voluntary organization. with members paving $50 in dues each vear. Because of this membership structure, the DBA raises relatively little in the way of operating funds (approximately $I,000-2,000 per year) and subsequenth, is very dependent on the City for financial and in -kind support. Examples of City support include provision of a free informational booth at the Cit\- sponsored Farmer's Market and City support of the Miracle on E. 14th Street, including installation of street decorations, organization of events, and advertising. A new program will include City coordination of a monthly joint newspaper advertising campaign. While the City's efforts to assist the downtown are important, they are still relatively minimal compared to what might be accomplished with the formation of a downtown Business Improvement District (BID). A (BID) is a mechanism that merchants can use to strengthen the downtown retail environment even further. Through the financing and management functions of a BID. downtown San Leandro merchants can enjoy many of the benefits of locating in a managed shopping center. while still retaining their downtown locations. The key characteristic of the BID is that businesses within the BID are assessed an annual levy, which is used to pad for BID activities that benefit all businesses within the area. This often involves joint marketing campaigns, enhancing service levels for downtown services such as street sweeping. litter and graffiti clean-up, and police patrol; recruitment of neH businesses. investments in street furniture and parking facilities; and downtown management/coordination functions. In cooperation with the Chamber of Commerce and the Downtown Business Association. the City should explore the possibility of establishing a BID. which might be paired with incentives to downtown businesses such as providing matching funds from the Economic Development Agency or Redevelopment Agency. In addition. the City could tailor a package of business incentives to meet the needs of downtown merchants. Roles and Responsibilities. The responsibility for this process should be shared between the Downtown Business Association and City Economic Development Staff. City staff should take the role of providing technical assistance on BID formation, while the DBA should be enlisted to help educate businesses about the potential benefits of BID formation and to collect feedback from businesses about the types of services that are desired and the level of annual assessments that would be acceptable. Priority: MEDIUM Costs and Sources of Funding. Costs for initial organization and BID establishment will van depending on the district formation strategy and the initial support of the business owners to the concept. In -kind staff time and efforts of a volunteer district formation 2 7 66