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Home My WebLink AboutED San Rafael Downtown Business Improvement District (BID) Assessment Annual Renewal____________________________________________________________________________ FOR CITY CLERK ONLY Council Meeting: 11/18/2019 Disposition: Resolution 14739 Agenda Item No: 4.f Meeting Date: November 18, 2019 SAN RAFAEL CITY COUNCIL AGENDA REPORT Department: Economic Development Prepared by: Simon Vuong Economic Development Coordinator City Manager Approval: ______________ TOPIC: SAN RAFAEL DOWNTOWN BUSINESS IMPROVEMENT DISTRICT (BID) ASSESSMENT ANNUAL RENEWAL 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 and set a public hearing on the proposed assessment for December 2, 2019. 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. San Rafael Municipal Code 10.09.080 requires an annual report to be prepared annually for upcoming assessments. Businesses in Downtown San Rafael first 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 2019, the BID Board of Directors has focused on marketing and communication with their membership and the public. This communication has happened 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, the Downtown San Rafael Arts District (DSRAD), and AIM Farmers Market on various special events and initiatives. The Board has also hosted member mixers, continued to work on beautification efforts, SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2 promoted BID events and Downtown initiatives via social media and traditional print media. Additionally, the Board has led numerous special events, including Clean & Green Day, May Madness, Spring/Summer Sidewalk Sale, Hops & Vines Stroll, Trick-or-Treat, West End Village Celebration, and Shop Local Saturday. Additional information relating to these efforts is included in the BID 2019 Annual Report (Attachment 2). ANALYSIS Approval of BID 2019 Annual Report The BID Board is required to prepare a report for each fiscal year for which assessments are to be levied and collected to pay the costs of the improvements and activities described in the report. The report may propose changes, including, but not limited to, the boundaries of the parking and business improvement area or any benefit zones within the area, the basis and method of levying the assessments, and any changes in the classification of businesses, if a classification is used. The BID Board has filed its 2019 Annual Report (Attachment 2) for City Council review and approval. The report does not propose any changes to the BID. 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. The method of calculating the amount of the assessment on each business is established by San Rafael Municipal Code Section 10.09.050 and varies depending upon the type of business and whether the business is located in the Standard BID Zone or the Premium BID Zone. 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 – November 18, 2019 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 approve the BID annual report, which reviews past BID Board accomplishments, and adopt the resolution declaring the City Council’s intention to levy an annual assessment and setting the date for a public hearing. These actions do not commit the City Council to any ultimate decision other than initiating the annual renewal process. Meeting #2 – December 2, 2019 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: SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 3 1) Approve the report and adopt the resolution as presented. 2) Approve the report with modifications and adopt the resolution. 3) Decline to approve the report and decline to adopt the resolution. RECOMMENDED ACTION: Approve the annual report and adopt the resolution declaring City Council’s intention to levy an annual assessment for the Downtown San Rafael Business Improvement District and set a public hearing for December 2, 2019. ATTACHMENTS: 1. Resolution 2. BID 2019 Annual Report, including: Exhibit A: BID Map Exhibit B: BID 2019 Assessment Formula Exhibit C: BID Budget Exhibit D: Memo – BID Financial Summary RESOLUTION NO. 14739 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 filed with the City Clerk its “BID 2019 Annual Report” and the City Council has reviewed and approved the report; NOW THEREFORE BE IT RESOLVED by the City Council of the City of San Rafael as follows: 1. The City Council intends to levy and collect an annual benefit assessment for calendar year 2020 on businesses in the Downtown San Rafael Business Improvement District 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 Exhibit A to the BID 2019 Annual Report 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 set forth in Exhibit B to the BID 2019 Annual Report on file with the City Clerk. 4. The method and the basis for levying the benefit assessment on businesses within the BID are set forth in San Rafael Municipal Code Section 10.09.050. 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 2, 2019 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 on 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 2, 2019 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 once 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 18th day of November 2019, by the following vote, to wit: AYES: COUNCILMEMBERS: Bushey, Colin, Gamblin, McCullough & Mayor Phillips NOES: COUNCILMEMBERS: None ABSENT: COUNCILMEMBERS: None Lindsay Lara, City Clerk 2017-2019 Jaime Ortiz 2020 Erika Bowker . President’s Message Dear Fellow BID Members, The BID Board is happy to present a summary of our 2019 accomplishments. We focused on promoting our Downtown as a great shopping, entertainment, arts and business destination, through new and established events, beautification, our website and marketing campaigns. . Please welcome Erika Bowker, BID board member and co-owner of Pleasures of the Heart, as she takes the reins as board president for 2020. She is also our social media director, as well as a big community booster who will lead the BID with care and enthusiasm. .. As I finish my term, I thank you for your support, energy and ideas for moving our Downtown forward. I encourage you to contact Erika or Eda and get involved in improving your community! .. Jaime Ortiz, President . Visit our website often for great member info: DowntownSanRafael.org . BID Board of Directors 2020 President – Erika Bowker Pleasures of the Heart .. Vice President – Adam Dawson Mike’s Bikes .. Secretary - Bonnie Ayers Namkung Marketing & Communications .. Treasurer - Jed Greene Five Corners Group Directors Past President - Jaime Ortiz, Bank of Marin .. Jeff Brusati, T & B Sports .. Tobi Lessem, Bodywise Massage .. Elisabeth Setten, Art Works Downtown .. Morgan Schauffler, Youth in Arts .. Ogi Teker, Istanbul Rug .. .. BID 2019 Annual Report SAN RAFAEL DOWNTOWN BID DOWNTOWN SAN RAFAEL: GARAGES FREE ON 'v, [:,,[., C__, THE GATES ARE UPI 2019 ACCOMPLISHMENTS • Monthly newsletters & website updates – highlighted events/presented current content for BID members and public visitors .. • Collaborations – worked with Downtown San Rafael Arts District (DSRAD), SR Chamber, AIM Farmers Markets, the City Economic Development Dept. and SR City government .. • Member mixers –presented socials with relevant topics/speakers on beautification, 2040 General Plan and small business development. Thanks to our host businesses! .. • Beautification initiatives – spearheaded the West End pilot lighting project, Clean & Green Day, and worked with the City on initiatives .. • Pilot art program – initiated art installation in empty storefront windows .. • Social media director – board member Erika Bowker actively posts to 3,000+ followers on Instagram and Facebook, multiplying the effects by engaging with Downtown businesses that have social media and email campaigns .. • Meet Your Neighbor – Sharon Christovich and Bonnie Ayers Namkung created a business profile feature on the BID website to promote community and interaction .. • Downtown/Event promotion – marketed through print and digital media: BID website, Facebook page, Nextdoor, Marin newspapers, as well as 35+ PR sites and articles. Strategic paid ad boosts on Facebook, coached merchants to feature events on their websites, newsletters and email lists to increase participants and shoppers .. • Parking improvements - worked with City Parking Department to achieve free weekend parking program in City garages 2019 EVENTS • Clean & Green Day - celebrated Earth Day by giving merchants brooms/dustpans and spearheading 5 groups to spiff up sidewalks, parking meters, trash cans and storefronts .. • 31st May Madness - thousands of visitors enjoyed the 200+ vintage and sports cars .. • Spring & Summer Sidewalk Sales - April and August events, 65+ participating businesses and hundreds of shoppers discovering treasures, bargains and ringing registers .. • Hops & Vines Stroll - created new event, exposed hundreds of new shoppers and diners to our unique breweries, taprooms and businesses Downtown. Sold out both participating business locations and public tickets, with 400+ event goers. Mission accomplished! .. • Trick or Treat on Fourth Street - Sat. Oct. 26, 1-3 p.m., annual Downtown-wide children’s event with dancers, pet parade and costume contest by Woodland’s Pet Food & Treats .. • West End Village Celebration - Sun. Nov. 3, 11-7 p.m., for family fun and music, produced for the community to highlight the West End Village and benefit several local nonprofits .. • Shop Local Saturday - Nov. 24, features ad campaigns highlighting the many reasons to shop and play Downtown. Please plan your Shop Local/Shop Small promotions now! 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, live and enjoy. Vision Downtown is the cultural heart and soul of our city, where activity, dining entertainment, and commerce blend with creative and entrepreneurial spirit. Downtown is where hometown pride and community thrive. Block Captains Adam Dawson, Mike’s Bikes Joanne Vosmek, Copperfield’s Books Bonnie Ayers Namkung, Marketing Erika Bowker, Pleasures of the Heart Sharon Christovich, Folk Art Gallery Jeff Brusati, T & B Sports Joel Eis, Rebound Bookstore BID Executive Director Eda Lochte info@srbid.org 2020 BID Work Plan Beautification, Marketing & Promotion Our efforts will support the economic vitality of downtown by promoting an environment that’s clean, safe, welcoming and uniquely engaging. Among our areas of focus: ▪ Beautification/streetscape – participate in establishing arts and culture identity to elevate Downtown, advise and advocate for wayfinding signage, lights, murals, landscaping, sidewalk cleaning, etc. ▪ Marketing and promotion – partner to develop downtown map highlighting DSRAD organizations as destinations, carry on with social media outreach and build list to reach more BID and community members. Assist in filling vacant store spaces. ▪ Social media and branding – update Instagram/Facebook, boost event promotions and share member news. Brand the downtown via use of logo and BID website updates, including profiles of downtown businesses, via new Meet Your Neighbor column. Beautification, Marketing & Promotion – continued… ▪ Collaboration - Cross-promote with the San Rafael Chamber of Commerce and newly formed Downtown San Rafael Arts District (DSRAD) ▪ Promote activity/vibrancy – Continue signature and new events, Shop Local campaign, support expansion of the City’s pilot criss-cross street lighting and outdoor dining programs ▪ Support local organizations – Continue donations as possible, such as 2019 giving to Camp Chance, Terra Linda High School auto repair department, DSRAD, and the San Rafael Downtown Streets Team 2020 Planned Events We plan to continue our 2019 events, producing our own or assisting with other groups’ signature events through organization, communication, marketing and financial backing. We hope to continue the highly successful new Hops & Vines Stroll, which showcased our local breweries, taprooms and unique businesses. The BID Organization Our 2020 agenda emphasizes ensuring the BID’s organizational foundation is strong, fiscally responsible and able to promote Downtown to members and the community. Our intention is to: ▪ Communicate with members – continue engagement through routine communications via website, email, newsletters, block captains, mixers, and the annual meeting ▪ Add board members and volunteers – actively recruit committee members and engage prospective board members ▪ Raise BID funding - explore supplemental funding sources through business sponsorship of events and more ▪ Collaborate with local groups – take advantage of partnership with Chamber and DSRAD to expand the BID’s reach and create more visibility and excitement for Downtown. Learn more about people and events in your neighborhood: DowntownSanRafael.org 4th 5th MarinFre montR eservoir 2nd 3rd NyePacheco Clo r i n d a Paloma 1stEspalda C oleman PlumTree Mission Forbe s LincolnProspect RossWest DGCHBClarkPineEyeR o b e rtD o llarScenicMiramar IrwinTamalpaisBerylShaverCijosBayview C e n t e r Jessup LootensCullodenParkWelchElford TaylorLiveOakJ FranciscoA Treanor CourtRitter Tw inOaks EastHwy101N W P R RElCerritoClayto n Br ynMawrViaSessi E lC amino LosRoblesWilkinsCottageMaple EViox WillowHartHayesJones Gloria SMARTTrainLatham HethertonLindaroHarcourt Foster CalaVistaCom m ercialFLaurel WoodsGardenWalter Lunny BrooksJulia UpperFr emontTrost Tam paIdaRossStreetScenicFrances B onnie Bra eStewartQuarry And e r s e n Curtis Stevens...Fairhi llsLa Vi staHillcrestKnollGracelandTreehavenAlbert Park M ir a fl ore sRobertDollarFireDocument Path: X:\Finance\BID\BID_Edits_20180802.mxd ZBaron Date: 8/14/2018San Rafael Business Improvement District (BID)PREMIUM BID STANDARD BID14 August 2018 Exhibit A Exhibit B 2019 BID Assessment San Rafael Downtown BID Budget Exhibit C 2018 Year End Fund Balance $50,435 2019 Year End Fund Balance $54,248 Revenues 2019 Programs Year 2019 Estimated Year End 2020 Programs Year 2020 Proposed Budget BID Assessments $83,396 BID Assessments $83,500 Event Income - May Madness $38,571 Event Income $56,000 Interest $6 Total Operating Income $121,973 $139,500 Expenses Events May Madness ($15,044)May Madness ($13,000) Trick or Treat ($700)Trick or Treat ($700) Sidewalk Sales ($1,587)Hops and Vines ($12,000) West End Celebration ($3,517)Shop Local Saturday ($1,000) Mixers ($171)West End Celebration ($3,000) Hops and Vines ($2,886)Sidewalk Sales ($1,000) Event Staffing ($24,613)Mixers ($750) West End Events ($2,000) Event Staffing ($30,000) Events subtotal ($48,517)($63,450) Initiatives Camp Chance ($4,190)Beautification ($10,000) Community Donations (from May Madness)($10,000)Art District ($2,500) Downtown SR Arts District(DSRAD)($5,000) Downtown Promotion Initiative ($3,000) Community Donations (from May Madness)($10,000) Initiatives subtotal ($19,190)($25,500) Marketing & Promotions Event Advertising/Marketing ($18,730)Event Advertising/Marketing ($22,000) Website Maintenance ($1,000)Website Maintenance ($2,000) BID Member Communication ($424)BID Member Communication ($500) Social Media ($705)Social Media ($4,000) Marketing & Promotions Subtotal ($20,859)($28,500) Operating Expenses Staffing ($17,902)Staffing ($17,000) Insurance ($5,736)Insurance ($5,000) tele/supplies/office ($999)tele/supplies/office ($2,000) profess/accounting/banking ($4,543)profess/accounting/banking ($1,500) meeting/travel exp ($181)meeting/travel exp ($1,000) other ($233) Operating Expenses Subtotal ($29,594)($26,500) Total Expenses ($118,160)($143,950) Net Profit/(Loss) $3,813 ($4,450) Projected 2018 Ending Fund Balance/Carryover to 2019 $54,248 2020 Ending Fund Balance $49,798 *Fund balance does not include Target Fund balance of $20,962. BID is the custodian of the Target Fund. Memorandum To: San Rafael City Council From: Jed Greene, Treasurer San Rafael Business Improvement District Date: October 21, 2019 Re: San Rafael Business Improvement District Financial Summary This memorandum highlights the significant 2019 financial activity of the San Rafael Business Improvement District (BID) and the 2020 proposed budget. 2019 For 2019, the BID is projected to have a net income of approximately $3,800, leaving a cash balance of $54,248. Proceeds from BID assessments were down approximately 10% in 2018. In 2019, the BID assessments increased and appear to be back to the historic levels. The increase in assessment fees largely contributed to our net income for the year. Our expenses were on budget, with higher expenses related to one of our new events but slightly lower expenses related to marketing and advertising. The May Madness event continues to be a very successful event for the BID. Absent the allocation of the Executive Director fees, the event generated approximately $20,000 in profit. Other community members and organizations help operate the event and those contributors, as well as the BID, agreed to donate some of the profit to Camp Chance and the Terra Linda High School auto shop program. 2020 The BID projects to have a cash balance of approximately $54,000 to begin 2020. With this cash balance, proceeds from the BID assessments and event revenues, the BID plans to host several events Downtown, invest in the beautification of Downtown and continue to work with and help the community around us including the DSRAD (Downtown San Rafael Arts District). As a result, the BID projects to have a net loss of $4,450, leaving us with a cash balance of $49,798 at the end of the year. Exhibit D