Title
Resolution of Intention to Renew the 16th Street (Midtown Zone C) Property and Business Improvement District No. 2025-03
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FileID
File ID: 2025-01108
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Location
Location: District 4
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Recommendation
Recommendation: Adopt a Resolution of Intention to renew the 16th Street (Midtown Zone C) Property and Business Improvement District No. 2025-03 (District) and set the time and place of a Public Hearing for July 29, 2025.
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Contact
Contact: Susanne Tam, Development Project Manager, (916) 808-7535 stam@cityofsacramento.org; Eric Frederick, Special Districts Manager, (916) 808-5129, efrederick@cityofsacramento.org; Department of Finance
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Presenter
Presenter: None
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Attachments
Attachments:
1-Description/Analysis
2-Schedule of Proceedings
3-Resolution of Intention
4-Exhibit A, Management District Plan and Engineer’s Report
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Description/Analysis
IssueDetail
Issue Detail: The District is a benefit assessment district intended to improve the 16th Street commercial area, as shown on the District map in Exhibit A to the attached Resolution. The District levies assessments on property owners within the District to fund services that improve the 16th Street area. The District was initially formed by the City Council in 2020 under the California Property and Business Improvement Law of 1994. The current District is set to expire on December 31, 2025, and the property owners within the District have proposed to renew the District for a new ten-year term with the submission of signed petitions representing over 50% of the assessments proposed to be levied in the District. The City Manager’s designee submitted petitions for renewal on behalf of the five City-owned properties in the District (pursuant to Council authorization provided on May 27, 2025). The renewed District would provide maintenance, safety, placemaking, capital improvements, mobility, advocacy, and communication services over and above those provided by the City.
The total District assessment budget for the first year of the renewed term would be approximately $334,715. The service area includes 109 assessed properties. Annual assessment rates are based on special benefits received as defined by the Management District Plan and Engineer’s Report (collectively, the MDP), included as Exhibit A to the attached Resolution. Assessments will be subject to an annual increase of up to 6% per year. These special benefits have been calculated based on an allocation of program costs and a calculation based on parcel type, parcel square footage, and building square footage. The attached MDP details the services provided by the District and the special benefits conferred on property owners in the District area that justify the stated assessment amounts.
Approval of the Resolution of Intention to renew the District will set the time and place for the Public Hearing on renewal of the District, state the new proposed assessment for the renewal term, and will authorize City staff to mail notices to all property owners within the District.
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PolicyConsiderations
Policy Considerations: The recommended actions in this report are in accordance with the California Property and Business Improvement District Law of 1994 (California Streets and Highways Code section 36600 et seq.) and City Code Chapter 3.44.
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EconomicImpacts
Economic Impacts: None.
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EnvironmentalConsiderations
Environmental Considerations: Renewal of the District creates a funding mechanism for maintenance and other services and does not have a significant impact on the environment. Accordingly, renewal of the District does not in itself constitute a project under California Environmental Quality Act (CEQA) and is therefore exempt from review pursuant to CEQA Guidelines section 15378(b)(4).
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Sustainability
Sustainability: Not applicable.
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Commission/Committee Action
Commission/Committee Action: None.
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RationaleforRecommendation
Rationale for Recommendation: The actions in the recommended Resolution will allow the City to support the renewal of the District. District services will be above what the City currently provides, and will include services such as graffiti removal, cleaning of sidewalks and bulb-outs, camera monitoring services, planning, design and management of public spaces, and advocacy to attract visitors to assessed parcels.
The Midtown Association, which is a nonprofit entity that serves as the governing body of the District, serves as a key partner to the City’s economic development efforts. In addition, the Midtown Association has the potential to serve as a critical partner in identifying both business needs and opportunities, as it will in many instances be the first entity contacted by local businesses.
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FinancialConsiderations
Financial Considerations: Financing is provided by the levy of assessments upon properties that benefit from improvements and services. There are 109 assessed parcels in the District service area. The total District budget for the first year of the renewal will be approximately $334,715. If the District is renewed, the City will continue to participate as a property owner. City-owned property will have a total first year annual assessment of approximately $45,608. Assessment payments for the City-owned properties would continue to be funded by the General Fund. Future increases in the District’s assessment rates are capped at 6% annually and are based on the actual annual increase in costs.
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LocalBusinessEnterprise
Local Business Enterprise (LBE): Not applicable.
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