HomeMy WebLinkAboutED Downtown Business Improvement District Assessment Annual Renewal____________________________________________________________________________________
FOR CITY CLERK ONLY
Council Meeting: 12/3/2018
Disposition: Resolution No. 14606
Agenda Item No: 4.g
Meeting Date: December 3, 2018
SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: Economic Development
Prepared by: Simon Vuong
Economic Development Coordinator
City Manager Approval: ______________
TOPIC: Annual Renewal for the San Rafael Downtown Business Improvement District
(BID) Business Assessment
SUBJECT: Resolution Declaring the City Council’s Intention to Levy an Annual Assessment
for the Downtown San Rafael Business Improvement District
RECOMMENDATION:
Accept report and adopt resolution declaring the City Council’s intention to levy an annual assessment
for the Downtown San Rafael Business Improvement District.
BACKGROUND:
Section 36500 of the California Streets and Highways Code allows for the creation of a business
improvement district (BID) within a municipality, whereby businesses within the district self-assess an
annual fee in order to pay for improvements and activities which benefit the overall business district.
The intent of the state law is to provide a funding mechanism for business districts to promote
economic vitality.
Businesses in Downtown San Rafael set up a business district in 1979. This original district included
approximately 125 businesses along Fourth Street between Lincoln Avenue and E Street. In 2013, the
City Council voted to replace it with a larger district of approximately 700 businesses along Fourth
Street. The expanded district includes the West End and some side streets, as well as non-ground floor
tenants and other tenants not included in the original BID.
For 2018, the BID Board of Directors has focused on marketing and communication with their
membership and the public via website updates, email blasts, and social media posts, hosting event
information and various BID initiatives. The BID Board has also been actively collaborating with
downtown stakeholders, including the Chamber of Commerce and the City, hosting member mixers,
laying the ground work for beautification efforts, and leading several special events, including May
Madness, Summer Sidewalk Sale, Trick-or-Treat, West End Village Celebration, Tivoli Lighting Project,
and Small Business Saturday/Shop Local. Additional information relating to these efforts is included in
the BID 2018 Annual Report (Attachment 2).
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2
ANALYSIS
BID Renewal Process
Per State law, to renew the annual assessment, the City Council must first adopt a Resolution of
Intention to Levy an Annual Assessment and set a public hearing for a future date. In accordance with
State law, the annual renewal process for the BID assessment will take place at two City Council
meetings as follows:
Meeting #1 – December 3, 2018
Resolution of Intention to Levy an Annual Assessment: This meeting is intended to notify the public of
the process. The only action required is to accept the BID annual report, which reviews past BID Board
accomplishments and adopt the resolution of intention to levy an annual assessment. These actions do
not commit the City Council to any ultimate decision other than initiating the annual renewal process.
Meeting #2 – December 17, 2018
Public Hearing on Annual Assessment: This is the meeting to receive additional input from the public on
the annual assessment for the BID and to confirm the levy of an assessment for the upcoming year.
COMMUNITY OUTREACH:
The BID will notify its members of the annual renewal process through its member communications,
including the BID e-newsletter, notifications on the BID website, and through agenda items at the
monthly BID Board meeting.
FISCAL IMPACT:
Adoption of the resolution does not have a direct fiscal impact on the City other than ongoing staff time
related to assessment billing and processing, as well as administration of the annual renewal. To the
extent that the BID activities enhance the business climate within the district, this will generate
increased sales tax revenue for the City.
OPTIONS:
The City Council has the following options to consider on this matter:
1)Accept report and adopt the resolution as presented.
2)Accept report and adopt the resolution with modifications.
3)Decline to accept the report and decline to adopt the resolution.
RECOMMENDED ACTION:
Accept report and adopt a resolution declaring City Council’s intention to levy an annual assessment for
the Downtown San Rafael Business Improvement District.
ATTACHMENTS:
1.Resolution
2.Exhibit 1 to Resolution: BID 2018 Annual Report, including:
A.Exhibit A: BID Map
B.Exhibit B: BID 2018 Assessment Formula
C.Exhibit C: BID Budget
D.Exhibit D: Memo – BID Financial Summary
RESOLUTION NO. 14606
RESOLUTION OF THE SAN RAFAEL CITY COUNCIL DECLARING THE CITY
COUNCIL’S INTENTION TO LEVY AN ANNUAL ASSESSMENT FOR THE
DOWNTOWN SAN RAFAEL BUSINESS IMPROVEMENT DISTRICT
WHEREAS, California Streets and Highways Code Sections 36500 et seq. authorizes
cities to establish parking and business improvement areas for the purpose of promoting
economic revitalization and physical maintenance of business districts, in order to create jobs,
attract new businesses and prevent erosion of business districts; and
WHEREAS, the Downtown San Rafael Business Improvement District (“BID”) was
established in 2013 to amend the existing Parking and Business Improvements District instituted
in 1979 in the commercial area on and around the Fourth Street corridor in San Rafael; and
WHEREAS, pursuant to San Rafael Municipal Code Chapter 10.09 and California
Streets and Highways Code Section 36533, the Advisory Board of the BID shall prepare an
annual report for each calendar year in which assessments are to be levied which the City
Council shall review; and
WHEREAS, the BID Advisory Board has prepared and submitted its “BID 2018 Annual
Report” attached hereto as Exhibit 1 and incorporated herein by reference;
NOW THEREFORE BE IT RESOLVED by the City Council of the City of San
Rafael as follows:
1. The City Council intends to levy an annual benefit assessment on businesses in the
BID, except where funds are otherwise available, to pay for selected improvements and activities
of the BID.
2. The boundaries of the entire area to be included in the BID, and the boundaries of
each separate benefit zone within the BID, are set forth in the map and boundary description
included as Exhibit A to the attached BID 2018 Annual Report. A map of the BID is also on file
with the City Clerk.
3. The types of improvements and activities proposed to be funded by the levy of
assessments on business in the BID are included as Exhibit C to the attached BID 2018 Annual
Report.
4. The method and the basis for levying the benefit assessment on businesses within the
BID are set forth in Exhibit B to the attached BID 2018 Annual Report.
5. All funds of the BID shall be expended on improvements and activities within the
BID.
6.New businesses shall not be exempt from payment of the fee.
7. A public hearing to consider the levy of the BID assessment shall be held before the
City Council on December 17, 2018 at 7 p.m. in the Council Chambers, 1400 Fifth Avenue, San
Rafael, California. At the public hearing the testimony of all interested persons, for or against
the levy of the BID assessment or of any of the matters included in the assessment, will be heard
and all protests collected.
8. A protest against the assessment of the BID, or any aspect of the assessment may be
made in writing or orally at the public hearing. To be counted as a part of a majority protest
against the assessment of the BID, a protest must be in writing and from a business in the BID.
A written protest may be withdrawn from the record at any time before the conclusion of the
public hearing. Each written protest shall contain a written description of the business in which
the person signing the protest is interested, sufficient to identify the business, and its address. If
the person signing the protest is not shown on the official records of the City of San Rafael as the
owner of the business, then the protest shall contain or be accompanied by written evidence that
the person is the owner of the business. Any written protest of the regularity of the proceedings
shall be in writing and clearly state the irregularity or defect to which objection is made.
9. If at the conclusion of the public hearing on December 17, 2018 there is a record of
written protests by business owners within the BID who will pay fifty percent (50%) or more of
the total assessments of the entire BID, no further proceedings to amend the BID shall occur.
New proceedings to amend the BID shall not b e undertaken again for a period of at least one
year from the date of the finding of the majority written protest by the City Council. If the
majority written protest is against a specific activity, inclusion of a specific area or type of
business, or a specific assessment amount, adjustments may be made to the amendment proposal.
10. Further information regarding the Downtown San Rafael Business Improvement
District may be obtained from the Office of Economic Development at 1125 B Street, San
Rafael, CA 94901.
11. The City Clerk is directed to give notice of said public hearing by publishing the
notice in a newspaper of general circulation in the City of San Rafael, at least seven days before
the hearing; and by mailing a complete copy of this Resolution of Intention to those interested
parties who have filed a written request with the local agency for mailed notice of public
meetings or hearings on new or increased general taxes.
I, LINDSAY LARA, Clerk of the City of San Rafael, hereby certify that the foregoing
Resolution was duly and regularly introduced and adopted at a regular meeting of the City
Council of the City of San Rafael, held on Monday, the 3rd day of December 2018, by the
following vote, to wit:
AYES:
NOES:
ABSENT:
COUNCILMEMBERS: Colin, Gamblin, McCullough & Mayor Phillips
COUNCILMEMBERS: None
COUNCILMEMBERS: Bushey
___________________________________
Lindsay Lara, City Clerk
President’s Message
Dear Fellow BID Members,
.
The BID board is happy to share this overview of our
2018 efforts and accomplishments. Our cohesive,
enthusiastic group of board members look forward to
continuing to promote our downtown as a destination for
shopping, entertainment and business.
.
We have big plans for next year and invite you to be a
part of it, either by applying for an open board position or
volunteering for a committee. Your energy and ideas can
make a big difference in our downtown community!
Jaime Ortiz, President
November 1, 2018
.
BID Board of Directors
2018 - 2019
President - Jaime Ortiz
Bank of Marin
Vice President - Joanne Vosmek
Copperfield’s Books
Secretary - Bonnie Ayers Namkung
Marketing & Communications
Treasurer - Jed Greene
Five Corners Group
Directors -
Jeff Brusati, T & B Sports
Adam Dawson, Mike’s Bikes
Erika Bowker, Pleasures of the Heart
Dezzy St. Andre, Rumor Has It
Your Name Here!
BID 2018
Annual Report
2019 BID Work Plan
Marketing, Promotion and Events
Continue to build visibility and enthusiasm for
downtown and BID member businesses through social
media/online marketing, including:
§ Collaboration and cross promotion with downtown arts
organizations, especially through the newly formed Downtown
San Rafael Arts District.
§ Producing signature events
§ Supporting events produced by BID members and
outside producers through sponsorships, promotion and
marketing
§ Updates to Facebook, boosting event promotions and
sharing member news
§ Downtown branding through use of new logo and BID
website updates
§ Populate website with current information
Planned Events for 2019
Our goal for next year is to produce or assist with
signature events and support other organizations’
downtown events through marketing and financial
backing, within our budget, Including:
May Madness, Summer Sidewalk Sale,
Downtown Trick or Treat, West End Village
Celebration, Small Business Saturday/Shop
Local, & Litquake.
We are also exploring the creation of a
Brew Crawl/Wine Tasting event to showcase our
new and established businesses.
Mission
The Business
Improvement District
promotes the
common interests of
downtown business
owners. We help
maintain and
develop a downtown
that is a welcoming
place to shop, dine,
work and live.
Vision
Downtown is the
cultural heart and soul
of our city, where
activity, dining
entertainment, and
commerce come
together with a
creative and
entrepreneurial spirit.
Downtown is where
hometown pride and
community thrive.
Economic Development, Beautification & Safety
Our efforts will support the economic vitality of downtown by advocating on issues,
ordinances and policies that affect downtown businesses and promote a clean,
welcoming environment. Among our areas of focus:
§Safety/hospitality - Continue to advocate on issues of crime, code
enforcement and nuisance behavior that negatively impact business in
downtown.
§Beautification/Experience on the street - Meet with the City to address
issues affecting patrons, business owners and employees. Ensure BID member
interests are represented in any policy recommendations generated by the
beautification study (in progress.) Lights, landscaping, sidewalk cleaning, etc.
§Business retention/recruitment - Support City’s retail recruitment strategy
through promotion of downtown and act as a resource for prospective tenants.
§Streetscape - Support the Downtown Streets Team and explore opportunities
to expand their role, through expanded services such as enhanced sidewalk
cleaning, graffiti removal and ambassador roles.
§Promote activity/vibrancy - Support implementation of the City’s pilot lighting
and outside dining programs.
The BID Organization
Our 2019 agenda also focuses on ensuring the BID’s organizational foundation is strong,
fiscally responsible and able to promote downtown to members and the community.
§Legal compliance - review bylaws, hold annual election and member meeting.
§Communication with members – increase engagement through a welcome
kit for new businesses, routine communications through email newsletters,
distribution of timely info by door-to-door visits by block captains, and quarterly
mixers.
§Increase board members and volunteers - continue to recruit active
committee members and engage prospective board members.
§Raise BID funding - identify supplemental funding sources through business
sponsorship of events and more.
2018 Accomplishments
•Website updated to streamline content for ease of access, events are highlighted,
and information kept current and relevant for visitors.
•Collaborated with downtown stakeholders and community partners, with the San
Rafael Chamber of Commerce, attended City meetings and events.
•Held Quarterly Member Mixers with safety and parking updates from SRPD and
Parking Director and Director of Homeless Planning. Also Miriam Karell, Director of
the Small Business Development Center (SBDC) gave presentation.
•Worked with the City to increase Beautification initiatives: West End pilot lighting
project, sidewalk cleaning frequency, trash pickup (DTST), streetscape appeal, and
safety.
•Attended the SR Downtown Arts District meetings to help establish identity and
incorporate culture and art installations to elevate downtown. Ongoing efforts to
incorporate district branding into downtown marketing, and to support and promote
related events and businesses. Support art in empty windows initiative.
•Created BID Member Toolkit with contact info for Parking and Safety issues.
•Facebook updates and boosts have 3,000+ followers.
•Marketing for members through print and online media sources, including the
website, Facebook page, the Marin IJ, Pacific Sun and Marinscope newspapers.
•A targeted digital ad campaign of media impressions, Facebook boosts, and local
merchants adding the poster to their websites and blasting it on their newsletters
and to their email lists brought awareness of events to shoppers/participants.
2018 EVENTS:
•The 30th annual May Madness, our legacy classic car parade event partnered
with the Elks Club for an after party/dance featuring Pride and Joy. Thousands of
visitors to our Downtown enjoyed the 200+ vintage and sports cars.
•The Summer Sidewalk Sale on 8-18-18 was greatly successful with 65+
participating businesses and hundreds of shoppers strolling our shops,
discovering treasures and bargains and ringing the registers.
•October 27 marked the annual BID-produced Trick of Treat on Fourth Street
event with the Latinx theme Dia de los Muertos. It included performances by the
San Francisco Boys Chorus, Happy Feet Dancers “Thriller”, an information booth
hosted by Foster Our Future, and a pet parade and costume contest by
Woodland’s Pet Food & Treats.
•West End Village Celebration on Nov. 4, 11-7pm. Family fun and music all day.
Mayor Phillips will kick-off the new Tivoli pilot lighting at dusk!
•Small Business Saturday/Shop Local, Nov. 24, event and ad campaign will
highlight the many reasons to shop our Downtown.
Downtown San Rafael
Business Improvement District Exhibit A
0 500
Exhibit B
2018 BID Assessment Formula
2018 Annual Assessment
San Rafael Downtown BID Budget Exhibit C
2017 Year End Fund Balance $66,006 2018 Year End Fund Balance $52,910
Revenues 2018 Programs
Year 2018
Estimated Year End 2018 Programs
Year 2019
Proposed Budget
BID Assessments $79,212 BID Assessments $80,000
Event Income ‐ May Madness $31,332 Event Income $45,000
Interest $3 Target Grant $10,000
Total Operating Income $110,547 $135,000
Expenses
Events May Madness ($7,219)May Madness ($8,000)
Trick or Treat ($1,756)Trick or Treat ($600)
Sidewalk Sales ($900)Wine/Brewery Event ($10,000)
West End Celebration ($5,000)Shop Local Saturday ($1,000)
Mixers ($250)Restaurant Week ($1,000)
Event Staffing ($27,000)Second Fridays ($2,000)
West End Celebration ($2,500)
Sidewalk Sales ($2,500)
Mixers ($500)
LitQuake ($2,000)
Event Staffing ($30,000)
Events subtotal ($42,125) ($60,100)
Initiatives Beautification ($10,000)Beautification ($10,000)
Art District ($2,500)
Shop Local Campaign ($1,000)
Targe Grant Expense ($10,000)
Initiatives subtotal ($10,000) ($23,500)
Marketing & Promotions Event Advertising/Marketing ($18,000)Event Advertising/Marketing ($22,000)
Website Maintenance ($300)Website Maintenance ($2,000)
Social Media ($5,259)BID Member Communication ($500)
Social Media ($5,000)
Marketing & Promotions Subtotal ($23,559) ($29,500)
Operating Expenses Staffing ($36,000)Staffing ($17,000)
meeting/travel exp ($468)Insurance ($5,000)
Insurance ($5,097)tele/supplies/office ($2,200)
tele/supplies/office ($2,086)profess/accounting/banking ($1,500)
profess/accounting/banking ($2,000)meeting/travel exp ($1,000)
office rent ($1,200)
other ($1,108)
Operating Expenses Subtotal ($47,959) ($26,700)
Total Expenses ($123,643) ($139,800)
Net Profit/(Loss) ($13,096) ($4,800)
Projected 2018 Ending Fund Balance/Carryover to 2019 $52,910 2019 Ending Fund Balance $48,110
*Target grant revenues along with matching expenses are contingent upon being awarded a $10,000 Target grant.
Memorandum
To: San Rafael City Council
From: Jed Greene, Treasurer
San Rafael Business Improvement District
Date: November 1, 2018
Re: BID Financial Summary
This memorandum highlights the significant 2018 financial activity of the San Rafael Business
Improvement District (BID) and the 2019 proposed budget.
2018
For 2018, the BID is projected to have a net loss of approximately $13,000, leaving a cash balance of
$52,910. 2017 was a period of transition, leaving the BID with excess cash. 2018 was much more active,
where the BID used its excess cash for events and beautification projects.
Proceeds from BID assessments were down approximately 10% from years past, contributing to the net
loss. We are currently working with the City to investigate the cause of the decline. We also incurred
unplanned expenses related to the transition from the previous consultant to the new Executive
Director, which increased our administrative costs and contributed to our net loss.
The 2018 May Madness event was one of the most successful events for the BID. Absent the allocation
of the Executive Director fees, the event generated over $10,000 in profit. Those funds were used to
help create the street lights pilot project on the West End of downtown San Rafael.
2019
The BID projects to have a cash balance of approximately $53,000 to begin 2019. With this cash
balance, proceeds from the BID assessments and event revenues, the BID plans to have a busy year with
more events and continued downtown beautification. As a result, the BID projects to have a net loss of
$4,800, leaving us with a cash balance of $48,110 at the end of the year.
We have projected lower proceeds from BID assessments, similar to last year. Hopefully, last year was
an anomaly and this year’s assessments will be closer to historic levels. A vast majority of our expenses
are related to an active events calendar.
Exhibit D