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HomeMy WebLinkAboutED Downtown BID Annual Report 2017____________________________________________________________________________________ FOR CITY CLERK ONLY File No.: 224 x 183 Council Meeting: 12/04/2017 Disposition: Resolution 14421 Agenda Item No: 5.b Meeting Date: December 4, 2017 SAN RAFAEL CITY COUNCIL AGENDA REPORT Department: Economic Development Prepared by: Danielle O’Leary Economic Development Director 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: Adopt Resolution. 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 themselves 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 within the San Rafael downtown set up a business district in 1979 – this original district included approximately 125 businesses along Fourth Street between Lincoln 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 (see Attachment 2, Exhibit A for BID Map). The new BID, established in 2013, has been active in numerous programs to improve the downtown business climate. In its first three years, the BID focused on the following areas: building the BID organization and working with its membership on developing priorities, increasing the effectiveness of marketing and events, promoting economic development, and working with the City to address various issues related to parking, safety, cleanliness, and social issues (see Attachment 2 for BID Annual Report). 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 4, 2017 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 18, 2017 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 and board appointments 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 and 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) Adopt resolution. 2) Direct staff to modify the resolution. 4) Decline to adopt the resolution and take no action. RECOMMENDED ACTION: Adopt resolution declaring City Council’s intention to levy an annual assessment for the Downtown San Rafael Business Improvement District for 2018. ATTACHMENTS: 1. Resolution 2. 2018 BID Annual Report Exhibit A: BID Map Exhibit B: BID 2018 Assessment Formula RESOLUTION NO. 14421 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; 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 des cription, Exhibit A, attached hereto and incorporated herein by reference. A map of the BID is 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 in Exhibit B attached hereto and incorporated herein by reference. 4. The method and the basis for levying the benefit assessment on businesses within the BID are set forth in Exhibit C attached hereto and incorporated herein by reference. 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 18, 2017 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 18, 2017 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 be 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, ESTHER C. BEIRNE, 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 4th day of December, 2017, by the following vote, to wit: AYES: COUNCILMEMBERS: Bushey, Colin, Gamblin, McCullough & Mayor Phillips NOES: COUNCILMEMBERS: None ABSENT: COUNCILMEMBERS: None ESTHER C. BEIRNE, City Clerk Re-Energizing the Vision and Mission for a Thriving San Rafael Downtown in the 21 st Century. What will downtown become as our economy evolves and brick and mortar retailing becomes more about the experience rather than access to product? Will we be a destination for art and entertainment? How will we retain our role as a central public gathering place for our community? How do we ensure that downtown is relevant to the next generation of residents? How do we effectively communicate our strengths, our history, and our values to our residents and visitors? In essence, these are the questions the Downtown Business Improvement District wrestles with in our effort to promote a vibrant downtown. Our mission – to promote the common interest of our business owners – can be distilled to one singular goal: bring more visitors downtown. To achieve this goal, we need to focus on what resonates authentically with our community. Distill this idea further and one lands on the heart of our efforts: make downtown attractive, easily accessible, and a desirable place to spend time, while doing our best to promote our assets. As we move into 2018, it is clear that our success in addressing the most pertinent issues will be achieved by leveraging our limited resources to further our ongoing marketing, streetscape, and placemaking efforts, working with the City, and collaborating with partner organizations. We encourage our members to be active participants of this effort, whether through just a little bit of involvement or all the way up to joining the board. What truly matters is our members’ voices guiding us in how best to direct our efforts. 2017 Annual Report Jaime Ortiz, President BID Accomplishments 2017 Development, Organization, and Design • The all-new BID convened fully in May and continues to collaborate with downtown stakeholders and community partners. Participating in mixers with the San Rafael Chamber of Commerce, attending City meetings and events, and assisting in City-wide outreach and marketing efforts. • Bi-monthly happy hours are held the third Thursday of every other month, giving BID members direct access to the BID Board, and building relationships with members in an informal setting. They have provided a valuable opportunity for dialogue, and attendance is growing steaadily. In 2018, these happy hours will be modified to include safety and parking updates from SRPD and City representatives, and will be re-examined for continuation or modification in July. • Beautification initiatives include ongoing research on the installation of flower planters as gateways on test blocks at either end of 4th St., working with the City to increase sidewalk cleaning frequency, and the incorporation of culture and art installations to elevate downtown. • The BID regularly advocates for member initiatives and requested changes, and is working with the City on multiple fronts to improve cleanliness downtown, streetscape appeal, and safety. • BID is a core partner in the California Cultural District committee, and in 2017 helped lead San Rafael to the designation. Board and staff are participating in ongoing efforts to incorporate district branding into downtown marketing, and to support and promote related events and businesses. • A BID Member Toolkit is in process, with the BId working with the City to provide up-to-date contact details for specific scenarios relating to homelessness and safety, information on parking for patrons and employees, useful forms, and an info sheet about the BID and available resources. • BID worked with new businesses and pop-up stores to promote and assist them in establishing their presence downtown, through events and advocacy. Marketing & Promotions • Members now have the opportunity to send events, sales, and happenings to facebook@downtownsanrafael. org, to be added to the BID content calendar and posted on Facebook with paid boosts to share with the BID’s 3000+ followers - a continuing free service for members. • Produced targeted marketing for members through print and online media sources, including through the Downtown San Rafael website, Facebook page, and local news sources such as the Marin IJ. • A website-revamp is in process, with the BID focused on streamlining content for ease of access, ensuring members and events are highlighted, and keeping information current and relevant for visitors. Events • On May 6th, the BID produced May Madness, a legacy event focused on vintage and sports cars which has been running in San Rafael for 29 years, with the help of event coordinator and host Rick Lewis of Gold Rush Jewelers. This year’s event garnered huge crowds and 200 participating cars for a day to remember. • In September, the BID produced Sip, Savor, Stroll San Rafael, a fundraising event for the Downtown Streets Team. In total, 25 merchants participated, and the BID received positive feedback from the 150 guests who attended, with many stating how excited they were to be introduced to the vibrancy of downtown’s shops. • October 28th marked the annual BID-produced Trick of Treat on Fourth Street event. This year’s event saw a huge growth in attendance from 2016, from 400 to 600 participants, and included a lauded performance by the San Francisco Boys Chorus, an information booth hosted by Foster Our Future Marin County, a pet parade and costume contest by Woodland’s Pet Food & Treats, and a puppy adoption event put on by Soft Paws Rescue Center, with the BID distributing activity books and candy bags to costumed children. 2017/18 Board of Directors President: Jaime Ortiz Bank of Marin Vice President: LeAnne White Incavo Wine Tasting & Collective Secretary: Bonnie Ayers-Namkung Marketing Communications Treasurer: Jed Greene Five Corners Group Directors: Jeff Brusati T&B Sports Melissa Prandi PRANDI Property Management Adam Dawson Mike’s Bikes Marketing, Development, and Operations • Collaborate with City of San Rafael to implement Shop Local campaign, including online business directory, branding, and incorporation into promotional brochures and advertising. • Promote downtown and BID member businesses through social media/online marketing and local media. • Produce ad booklet for advertising racks at SMART train stations as well as regional visitor centers, hotels, and bed and breakfasts. Booklet will feature topical sections to create an easy resource for visitors to San Rafael. • Update BID website to focus on streamlining information for visitors, highlighting member businesses and events, and promoting Downtown San Rafael as a welcoming place for the community to shop, dine, live, and work. • Complete in-progress initiatives, including member toolkit, bi-monthly mixers, and branding and marketing associated with the California Cultural District designation. • Events: The BID has committed to producing and/or supporting the following events in 2018: • May Madness, to be held on May 12th. • A Wine Stroll event along the Fourth Street corridor, to be held in spring. • Bi-annual downtown sidewalk sales throughout downtown, one in spring and the other in fall. • Co-pruduction with Adam Violante of the West End Village Festival. • Support of Downtown’s 2nd Friday Art Walk. • Small Business Saturday, to promote holiday shoppping. • A Plein Air Paint Out, inviting artists to spend a Saturday downtown painting in public spaces. • The annual Trick or Treat on Fourth Street Halloween event. • Restaurant Week, in collaboration with Il Davide. • Legal compliance: Review by-laws and proceed with needed revisions, hold annual election, and annual member meeting. Downtown San Rafael BID 2018 Work Plan San Rafael Downtown BID Budget Exhibit C 2016 Year End Fund Balance $40,808 2017 Year End Fund Balance $54,939 Revenues 2017 Programs Year 2017 Estimated Year End 2018 Programs Year 2018 Proposed Budget BID Assessments $85,105 BID Assessments $87,000 Event Income - May Madness $20,026 Event Income $25,000 Event Income - Wine Stroll $12,000 Target Grant $10,000 Total Operating Income $117,131 $122,000 Expenses Events May Madness ($15,000)May Madness ($15,000) Trick or Treat ($1,000)Trick or Treat ($600) Food & Wine Event ($11,000)Sip Savor and Stroll ($12,000) West End Celebration ($3,000)Plein Air Painting ($500) Restaurant Week ($1,000)Small Business Saturday ($1,000) Restaurant Week ($1,000) Second Fridays/Arts District ($2,500) West End Celebration ($2,000) Sidewalk Sales ($1,000) Mixers ($500) Events subtotal ($31,000)($36,100) Initiatives Beautification ($5,000) Business Workshops ($1,000) Target Grant Expenses ($10,000) Initiatives subtotal $0 ($16,000) Marketing & Promotions Advertising ($14,000)Advertising/Marketing ($11,000) Website Maintenance ($3,000)Website Maintenance ($3,000) BID Member Communication ($2,000)BID Member Communication ($1,000) Directories/marketing ($2,000)Member Assistance ($2,000) Social Media ($1,000)Social Media ($1,500) Marketing & Promotions Subtotal ($22,000)($18,500) Operating Expenses Staffing ($30,000)Staffing ($37,900) office rent ($3,000)office rent ($6,000) Insurance ($4,000)Insurance ($4,000) tele/supplies/office ($2,000)tele/supplies/office ($2,200) profess/accounting/banking ($6,500)profess/accounting/banking ($1,500) meeting/travel exp ($1,500)meeting/travel exp ($1,000) other ($3,000) Operating Expenses Subtotal ($50,000)($52,600) Total Expenses ($103,000)($123,200) Net Profit/loss $14,131 ($1,200) Projected 2017 Ending Fund Balance/Carryover to 2018 $54,939 2018 Ending Fund Balance $53,739 *Target grant revenues along with matching expenses are contingent upon being awarded a $10,000 Target grant. www.downtownsanrafael.org Phone: 415-261-7560 Email: info@srbid.org 2018 Budget EXHIBIT B STAFF REPORT APPROVAL ROUTING SLIP Staff Report Author: Danielle O’Leary Date of Meeting: 12/04/2017 Department: Economic Development Topic: Annual Renewal for the San Rafael Downtown Business Improvement District (BID) Subject: Resolution of the San Rafael City Council Declaring City Council’s Intention to Levy an Annual Assessment for the Downtown San Rafael Business Improvement District. Type: (check all that apply) ☒ Consent Calendar ☐ Public Hearing ☐ Discussion Item ☒ Resolution ☐ Ordinance ☐ Professional Services Agreement ☐ Informational Report *If PSA, City Attorney approval is required prior to start of staff report approval process Was agenda item publicly noticed? ☐ Yes ☐No Date noticed: ☐Mailed ☐Site posted ☐Marin IJ Due Date Responsibility Description Completed Date Initial / Comment DEPARTMENT REVIEW FRIDAY noon 11/17 Director Director approves staff report is ready for ACM, City Attorney & Finance review. 11/9/2018 ☒ Early submittal, still waiting on Annual Report and Work Plan from BID. CONTENT REVIEW MONDAY morning 11/20 Assistant City Manager City Attorney Finance ACM, City Attorney & Finance will review items, make edits using track changes and ask questions using comments. Items will be returned to the author by end of day Wednesday. 11/17/2017 11/20/2017 11/20/2017 ☒ CA ☒ LG ☒ MM DEPARTMENT REVISIONS FRIDAY noon 11/22 Author Author revises the report based on comments receives and produces a final version (all track changes and comments removed) by Friday at noon. 11/21/2017 ☒ DO ACM, CITY ATTORNEY, FINANCE FINAL APPROVAL MONDAY morning 11/27 Assistant City Manager City Attorney Finance ACM, City Attorney & Finance will check to see their comments were adequately addressed and sign-off for the City Manager to conduct the final review. Click here to enter a date. 11/22/2017 11/22/2017 ☒ ☒ LG ☒ MM TUES noon 11/28 City Manager Final review and approval 11/29/2017 ☒ JS