Title
Public Hearing on Renewal of 16th Street (Midtown Zone C) Property and Business Improvement District No. 2025-03 [Noticed 06/11/2025; Published 07/18/2025]
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FileID
File ID: 2025-01349
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Location
Location: District 4
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Recommendation
Recommendation: Conduct a public hearing and upon conclusion, pass a Motion approving the proposed assessment and proposed activities and improvements for the 16th Street (Midtown Zone C) Property and Business Improvement District (District) renewal, and directing the City Clerk to: a) tabulate the assessment ballots submitted and not withdrawn before the hearing is closed; and b) bring back this matter on August 12, 2025, with the tabulation results, for Council’s adoption of the District renewal.
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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: Susanne Tam, Development Project Manager, stam@cityofsacramento.org, (916) 808-7535, Department of Finance
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Attachments
Attachments:
1-Description/Analysis
2-Schedule of Proceedings
3-District Map
4-Management District Plan
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Description/Analysis
IssueDetail
Issue Detail: The 16th Street (Midtown Zone C) Property and Business Improvement District (District) is a benefit assessment district intended to improve the 16th Street area, as shown in the District map included as Attachment 3. The District was initially formed in 2020 and the current District term is set to expire on December 31, 2025. Property owners representing over 50% of the affected parcels within the District submitted petitions to the City requesting renewal of the District for a ten-year term that would run through December 31, 2035. The renewed District would provide maintenance, safety, placemaking, capital improvements, mobility, advocacy, and communication services over and above those provided by the City.
On June 10, 2025, Council adopted a Resolution of Intention (Resolution No. 2025-01108),
directing the City Clerk’s Office to mail assessment ballots and notices of public hearing to the owners of real property within the proposed District and setting July 29, 2025, as the date for a public hearing on the proposed District and assessment. Public Hearing notices were mailed to all affected property owners on June 11, 2025.
At the conclusion of the hearing, staff recommends that Council approve the proposed assessment and proposed activities and improvements shown in the Management District Plan attached to this staff report as Attachment 4, and direct the City Clerk to tabulate the assessment ballots submitted and not withdrawn to determine whether there is a majority protest against the assessment (i.e., a majority protest exists if the assessment ballots submitted, and not withdrawn, in opposition to the proposed assessment exceed the assessment ballots submitted, and not withdrawn, in its favor, weighting those assessment ballots by the amount of the proposed assessment to be imposed upon the identified parcel for which each assessment ballot was submitted). If there is no majority protest from ballots submitted and not withdrawn, staff will recommend that the Council adopt a resolution declaring the results of the ballot proceeding and renewing the District for a new ten-year term at the Council meeting on August 12, 2025.
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PolicyConsiderations
Policy Considerations: The recommended actions in this report are in accordance with the California Property and Business Improvement District (PBID) 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: Not applicable.
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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: Not applicable.
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RationaleforRecommendation
Rationale for Recommendation: The public hearing is a required step in the renewal process and its completion would allow the District renewal proceedings to continue. District improvements and activities would provide maintenance, safety, placemaking, capital improvements, mobility, advocacy, and communication services above what the City currently provides. This includes 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 (MA), 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, MA 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 District activities and improvements. There are 109 assessed parcels in the District service area. The total District assessment budget for the first year of the renewal term will be approximately $334,715. Approximately $2,680.60 in City and County administration fees will be deducted from the assessment amount dispersed to the District for the costs of City and County accounting and administration work. 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. Future increases in the District’s assessment rates are capped at 6% annually. Assessment payments for the City-owned properties would continue to be funded by the General Fund.
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LocalBusinessEnterprise
Local Business Enterprise (LBE): Not applicable.
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