Title:
Title
Stockton Boulevard Property and Business Improvement District No. 2020-01 (Noticed 07/01/2020)
End
FileID
File ID: 2020-00406
Location
Location: Districts 5 and 6
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Recommendation:
Recommendation
Conduct a public hearing and upon conclusion, pass a Motion adopting the proposed assessment and related improvements, and directing the City Clerk to: 1) tabulate the assessment ballots submitted and not withdrawn before the hearing is closed; and 2) bring back the matter as a consent item on August 25, 2020, with the tabulation results.
FileName
Contact: Sini Makasini, Administrative Analyst, (916) 808-7967; Sheri Smith, Special Districts Manager, (916) 808-7204, Department of Finance
Body
Presenter: Sini Makasini, Administrative Analyst, (916) 808-7967, Department of Finance
Attachments:
1-Description/Analysis
2-Schedule of Proceedings
3-Exhibit A, Proposed Assessment and Improvements
4-Exhibit B, District Map
Description/Analysis
Issue Detail: Initially formed in 2002, the Stockton Boulevard Property and Business Improvement District (PBID) has since renewed twice: once in 2007 and once in 2012. The PBID is a benefit assessment district intended to continue to improve the Stockton Boulevard commercial corridor. The property owners have proposed a third renewal of the PBID for a new ten-year term which also includes an expansion of the PBID boundaries. The existing PBID term has yet to expire and is valid until December 31, 2021. However, the PBID is renewing a year early and is expanding its boundaries to include additional property owners seeking PBID services effective January 1, 2022.
On June 30, 2020, the City Council passed Resolution 2020-0201 directing staff to mail assessment ballots and notices of public hearing to the owners of real property within the proposed PBID and setting August 18, 2020, as the date for a public hearing on the proposed District and assessment.
At the conclusion of the hearing, the City Council may adopt the proposed assessment and related improvements shown as Exhibit A, and direct the City Clerk to tabulate the assessment ballots submitted and not withdrawn to determine whether there is a majority protest against the assessment (i.e., a majority protest exists if the assessment ballots submitted, and not withdrawn, in opposition to the proposed assessment exceed the assessment ballots submitted, and not withdrawn, in its favor, weighting those assessment ballots by the amount of the proposed assessment to be imposed upon the identified parcel for which each assessment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.). Staff will report the results of the tabulation at the City Council meeting on August 25, 2020. If there is no majority protest from ballots submitted and not withdrawn, staff will recommend that the City Council adopt a resolution of formation, declaring the results of the majority protest proceedings and renew the PBID.
Policy Considerations: The proceedings under which the PBID is proposed to be renewed are set forth in Sections 36600 et seq. of the California Streets and Highways Code, entitled “Property and Business Improvement District Law of 1994.”
Economic Impacts: Not applicable.
Environmental Considerations:
California Environmental Quality Act (CEQA): Formation of a PBID, as a funding mechanism which will not result in any potentially significant impact on the environment, does not constitute a project under the CEQA and is therefore exempt from review pursuant to Guidelines Section 15378(b)(4).
Sustainability: Not applicable.
Commission/Committee Action: None.
Rationale for Recommendation: The recommended actions will allow the City to support the renewal of the PBID and the services provided by it. PBID services will enhance economic development, maintenance, and security services above what the City currently provides. This includes focused marketing, outreach, and other activities to convey a positive image, expand existing businesses and attract new businesses to the Stockton Boulevard commercial corridor resulting in increased economic activity and revenue.
The Stockton Boulevard Partnership Association (Association), the governing body of the PBID, serves as a key partner to the City’s economic development efforts, particularly in enhancing a clean and safe environment while providing increased marketing for new business development. In addition, the Association has the potential to serve as a critical partner in identifying both business needs and opportunities, as the Association will in many instances become the first entity to be contacted by local businesses.
Financial Considerations: Financing is provided by the levy of assessments upon properties that benefit from improvements and services. There are 277 assessed parcels in the PBID service area. The total PBID assessment budget for FY2021/22 will be approximately $409,837. If the PBID 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 $6,212. Funding for the City’s property assessment will be supported by the City’s General Fund, not the PBID’s assessment. Future assessment rates may be subject to an increase of no more than three percent (3%) annually and based on the actual annual increase in costs.
Local Business Enterprise (LBE): Not applicable.