HomeMy WebLinkAbout2011-06-20_cityofsanrafael_39d976476c699c99c22456bc21b29381CITY OF
Agenda Item No: 16
Meeting Date: June 20, 2011
SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: Economic Development
Prepared by: Stephanie Lovette,
City Manager Approval:
SUBJECT: Report on Business Improvement District (BID) Restructuring
RECOMMENDATION: Accept report
REPORT: The Business Improvement District is an assessment district formed in 1979 which covers the
businesses on Fourth Street, generally between Lincoln and D Street. The BID Board is an advisory
Board to the City, and while the Board members are selected from the BID membership under the
processes established in their by-laws, they are formally appointed by the Council. Their Executive
Director is under contract to the City.
The BID activities are funded through: (1) an annual assessment, collected by the City as part of the
business license process: (2) a grant from the Redevelopment Agency; and (3) revenues from operating a
merchant parking lot on the PG&E property on Lindaro Avenue. In 2010, the Agency notified the BID
Board that the annual grant would end in July 2012. The BID Board is also aware that PG&E is pursuing
development of their entire parcel on Third and Lindaro, which would eventually eliminate that revenue
source.
The BID Board decided that this was an opportunity to reconstitute the assessment district as a property
based district rather than the current business based, with new boundaries, activities and assessment
revenue. The Board also decided that they would incorporate and seek non-profit status as a part of this
effort. With the assistance of the Agency, a consultant was retained and a reforming committee
established in October, 2010. After 6 months of effort, the reforming committee, Agency staff and
consultant assessed the progress made and the level of commitment expressed by potential members of a
reformed BID. It was determined that there was not sufficient support to form a new property based
assessment district at this time.
The BID Board has instead decided to investigate reforming as a larger business based BID and continue
the process of incorporating and getting non-profit status. Incorporation should be completed by the end
of the summer and will establish the Board as a legal entity. The City Attorney's office is in the process
of determining what, if any, changes need to be made to the current Ordinance that regulates the
assessment district and City's contract with the Executive Director, when the incorporation is complete.
FOR CITY CLERK ONLY
File No.:
Council Meeting:
Disposition: