HomeMy WebLinkAboutED Downtown Business Improvement District (BID) Assessment Annual Reward____________________________________________________________________________________
FOR CITY CLERK ONLY
Council Meeting: December 7, 2020
Disposition: Resolution 14880
Agenda Item No: 6.a
Meeting Date: December 7, 2020
SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: Economic Development
Prepared by: Simon Vuong
Economic Development Coordinator
City Manager Approval: ______________
TOPIC: DOWNTOWN BUSINESS IMPROVEMENT DISTRICT (BID) ASSESSMENT ANNUAL
RENEWAL
SUBJECT: RESOLUTION APPROVING THE DOWNTOWN SAN RAFAEL BUSINESS
IMPROVEMENT DISTRICT ASSESSMENT FOR CALENDAR YEAR 2021
RECOMMENDATION:
Hold Public Hearing, accept public comment, and if no majority protest has been received adopt
resolution approving the 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. San Rafael Municipal Code section 10.09.080 requires a report to be prepared annually for
upcoming assessments.
In 1979, businesses in Downtown San Rafael first set up a business district. 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 2020, the BID Board of Directors has focused on navigating a new business environment in the midst
of an unprecedented pandemic due to COVID-19. Their efforts have focused on keeping the Downtown
community and members informed during a very challenging time for all merchants. This includes
actively promoting Downtown through social media, the website, marketing campaigns, email blasts, and
acting as a conduit for disseminating critical reopening information from Marin Recovers and the State.
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2
The BID Board has been collaborating with downtown stakeholders, including the City of San Rafael, the
Chamber of Commerce, the Downtown San Rafael Arts District (DSRAD), and the San Rafael Business
Development Center (SBDC) to provide hands on help to all struggling businesses. During this time the
Board has contributed donations to the San Rafael Small Business COVID-19 Disaster Relief Fund,
partnered with our Parking Services Division and Department of Public Works for setting up and installing
temporary curbside pickup spaces and temporary outdoor dining spaces in Downtown, created a
directory of open and closed businesses, collaborated with Dominican students to install art in empty
store windows, worked with merchants on their presentation of Dia de los Muertos altar window displays,
as well as many other initiatives.
Among the many initiatives, the largest and most consequential event for the BID Board in 2020 has
been funneling and leveraging their knowledge and relationships into producing the ‘Dining Under The
Lights’ outdoor dining event, which closes portions of Fourth Street Downtown so that restaurants may
use the street for additional outdoor dining space. Held Thursday and Friday nights starting in July and
continuing through the end of November, the BID has worked with dozens of restaurants to make this
signature Downtown program a reality, with the intent of providing a lifeline to our many restaurants hit
hard by the pandemic. Dining outdoors has been one of the few options that restaurants have had
available to them to continue business during the shelter-in-place. For many patrons, this is also
preferred over indoor dining, with doubt and uncertainty over partaking in any activities conducted inside.
With indoor dining restrictions in place for the foreseeable future, and with an overwhelmingly positive
reception from the community and businesses for ‘Dining Under The Lights’, the BID would like to see
‘Dining Under The Lights’ return in 2021 as soon as it is feasible. Additional information relating to these
accomplishments is included in the BID 2020 Annual Report (Attachment 2).
Since there have been a number of restrictions imposed by the County to stop the spread of the
coronavirus and prohibitions on large social gatherings, the BID has not been able to host many of the
traditional events of years past, such as the Sidewalk Sales, Hops & Vines Stroll, May Madness, Trick-
or-Treat, or the West End Village Celebration.
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. 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 shown in Exhibit B of Attachment 2.
On November 16, 2020 the City Council adopted a Resolution of Intention to Levy an Annual Assessment:
This resolution was intended to notify the public of the process, approve the BID annual report reviewing
past BID Board accomplishments, and set the date for a public hearing.
Tonight’s meeting is to hold the Public Hearing to receive input from the public on the annual assessment
for the BID and to confirm the levy of an assessment for the upcoming year. Any protest against the BID
assessment must be in writing and from a business in the BID. If the protest received represents fifty
percent (50%) or more of the total assessments in the entire BID, no further proceedings to amend the
BID can occur. New proceedings cannot be undertaken for a period of at least a year.
BID Advisory Board Appointments
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 3
Although the Council typically approves new BID Advisory Board members as part of the annual report
and assessment renewal, at this point there are no new incoming Advisory Board members. The existing
BID Advisory Board includes:
• Erika Bowker, Pleasures of the Heart
• Jaime Ortiz, Bank of Marin
• Jed Greene, Five Corners Consulting Group
• Adam Dawson, Mike’s Bikes
• Jeff Brusati, T & B Sports
• Tobi Lessem, Bodywise Massage
• Elisabeth Setten, Art Works Downtown
• Morgan Schauffler, Youth in Arts
The BID Advisory Board members serve on a voluntary basis and have been focused on supporting our
Downtown businesses during this challenging time under shelter-in-place. The BID Advisory Board is
actively recruiting business members who may be interested to serve on the Board on a rolling basis.
COMMUNITY OUTREACH:
The BID has notified 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:
There is no fiscal impact associated with this action.
OPTIONS:
The City Council has the following options to consider on this matter:
1) Adopt the resolution as presented approving the annual assessment for 2020.
2) Adopt the resolution with modifications approving the annual assessment for 2020.
3) Determine that 50% or more protest has been filed and abandon assessment proceedings for a
minimum of one year from the date of the majority finding and decline adoption of the resolution.
RECOMMENDED ACTION:
Adopt the attached resolution.
ATTACHMENTS:
1. Resolution approving annual assessment
2. BID 2020 Annual Report, including:
A. Exhibit A: BID Map
B. Exhibit B: BID 2020 Assessment Formula
C. Exhibit C: BID Budget
D. Exhibit D: Memo – BID Financial Summary
1
RESOLUTION NO. 14880
RESOLUTION OF THE SAN RAFAEL CITY COUNCIL APPROVING
THE DOWNTOWN SAN RAFAEL BUSINESS IMPROVEMENT
DISTRICT ASSESSMENT FOR CALENDAR YEAR 2021
WHEREAS, California Streets and Highways Code Sections 36500 et seq,
authorize cities to establish parking and business improvement districts for the purpose
of promoting economic revitalization and physical maintenance of business areas, in
order to create jobs, attract new business and prevent erosion of the new business
district; 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 the BID’s
Advisory Board submitted to the City a “BID 2020 Annual Report”, which is on file with
the City Clerk; on November 16, 2020, the City Council by resolution approved the BID
2020 Annual Report, indicating the Council’s intention to levy assessments, and setting
a public hearing thereon for December 7, 2020; and
WHEREAS, pursuant to Streets and Highways Code Section 36535, following
the public hearing, the City Council may adopt a resolution confirming the report as
originally filed or as modified by the Council, and the adoption of the resolution shall
constitute the levy of an assessment for the year referred to in the report; and
WHEREAS, the City Council held the required public hearing on December 7,
2020 to receive testimony and protests concerning the BID 2020 Annual Report and the
proposed levy of assessments for calendar year 2021 described therein; and
WHEREAS, a majority protest of the proposed assessments was not received;
NOW, THEREFORE, BE IT RESOLVED that City Council hereby adopts the levy
of assessments as described in the Annual Report for the 2021 calendar year.
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 meeting of the
City Council of said City held on Monday, the 7th of December, 2020, by the following
vote, to wit:
AYES: COUNCILMEMBERS: Bushey, Colin, Gamblin, McCullough & Mayor Phillips
NOES: COUNCILMEMBERS: None
ABSENT: COUNCILMEMBERS: None
2
LINDSAY LARA, City Clerk
President’s Message
Dear Fellow BID Members,
The BID Board is happy to present a summary of our
2020 activities to support San Rafael’s unique
Downtown business area. It was far from business as
usual this year.
...
We focused on keeping our Downtown business
owners informed and ready to respond to the ever-
changing Covid-19 landscape. We constantly worked
on promoting our Downtown through social media, our
website and marketing campaigns. Our goal was to
keep our community and members current as we
moved ahead through the many challenges....
.
As I finish my term, I thank you for your perseverance
and resilience in pivoting to stay open and relevant in
these unprecedented times. Keep up the good work
and please to contact Jaime or Eda to get involved in
improving your community!
Erika Bowker, President 2020
_________________________________________________
Eda Lochte, BID Executive Director Director@DowntownSanRafael.org
..
.
.
President Elect 2021 & Event Chair
2020 – Jaime Ortiz
Bank of Marin
Vice President 2020-21 – Adam
Dawson
Mike’s Bikes
Secretary, July 2020-21 – Tobi Lessem
Bodywise Massage
Secretary, Jan. - June 2020 –
Bonnie Ayers Namkung
Marketing & Communications
Treasurer, 2020-21 – Jed Greene
Five Corners Group
Directors
.
President/Social Media Chair 2020 –
Erika Bowker,
Pleasures of the Heart
.
Jeff Brusati 2020-21 – T & B Sports
.
Morgan Schauffler 2020-21 –
Youth in Arts
Elisabeth Setten 2020-21 –
Art Works Downtown
..
BUSINESS IMPROVEMENT DISTRICT
ANNUAL REPORT
2020
SAN RAFAEL
DOWNTOWN BID
BID Board of Directors
2020 ACCOMPLISHMENTS
• Banners – created and installed Shop Local * Eat Local * Support San Rafael cross-
street banners immediately at lockdown and all events were canceled. Banners remain in
the east and west ends across 4th Street. Posted bumper stickers with same message.
..
• Donations – BID was an original donor to the SR Small Business COVID-19 Grant
Program and voted for remaining Target funds to support this initiative during the early
stages of the crisis. We also supported the nonprofit Marin Multicultural Center and CFI.
. .
• Member emails, newsletters, and updates – continuously communicated with
members to keep them informed of Covid-19 information updates and Tier status for
closings and re-openings. Explained details and provided links to information sources,
including Marin Recovers, PPE and safety protocols, PPP loans, small business grants
and classes, permits and more.
..
• Hands-on help - executive director engaged with members by email, phone and in
person amidst day-to-day changes of the pandemic.
..
• Parking - worked with City Parking and Public Works depts. to quickly create four free
15-minute parking spaces per block for safe pickup of food and goods. Promoted free
weekend parking program and three hours free holiday parking in City garages and lots.
..
• Website updates – presented current content for BID members and public visitors,
highlighted Dining Under the Lights and built status box to notify partners and public of
confirmed and canceled dates. Also featured a link to air quality reports.
..
• Created online searchable directory - Downtown businesses can create and
continuously update their listing (closed, open for takeout only, special hours, sales, etc.)
Drove traffic to directory through banners, ads and social media.
..
• Collaborations – worked with City government and departments including Economic
Development, Public Works, Parking, Recreation and SRPD. Partnered with Downtown
San Rafael Arts District (DSRAD), SR Chamber, SBDC and other Marin Cities.
..
• Outdoor dining areas – liaison between businesses and the City for outdoor areas to
offer any services, since indoors was not allowed. Helped with permits and interest and
ability to work outside. Advised re: TAM Grant for restaurant dining in parking spaces.
..
• Beautification initiatives – after spearheading the West End pilot Tivoli overhead
lighting project in 2019, acted with City Public Works to extend the lights east to the
SMART station in time for the kickoff of Dining Under the Lights.
..
• Bike racks – worked with DSRAD and City to install eight Cultural Art District branded
bike racks paid for by California Arts Council in Downtown locations.
..
• Art in empty store windows – collaborated with Dominican professor and students to
install original, uplifting art in windows of empty street-level locations.
..
• Dia de los Muertos altar window displays – 25+ downtown merchants, in a show of
community, presented Day of the Dead window art. Collaboration included BID sponsor,
Marin Multicultural Center, San Rafael Dia de los Muertos, City Rec Dept. and artists.
.. ..
• Online posts of art news – DSRAD/BID cross promotional Instagram @artsanrafael -
508 followers, Facebook - 441 followers, +35% from 2019.
..
• Social media director – board member Erika Bowker actively posts to 3,500 followers
on Instagram and Facebook, multiplying effects by engaging with Downtown businesses
with their own social media and email campaigns. BID added 1,000 followers this year.
..
• Downtown and DUTL promotion – marketed through print ads and digital media: BID
website, Facebook page, Nextdoor,
Marin newspapers, as well as PR sites
and articles. Strategic paid ad boosts on
Facebook, coached merchants to feature
Dining Under the Lights (DUTL) on their
websites, newsletters and email lists to
increase diners and shoppers Downtown.
..
• Holiday window decorating contest
contest – annual contest with prizes to
bring some festive fun to merchants and
shoppers. Partnered with CFI (California
Film Institute) and Mill Valley Film
Festival to sponsor Grab and Go Program with the goal of promoting our BID District and
supporting our local small businesses.
2020 Events
..
Sadly, we were forced to call off all our traditional events due to the pandemic. We were also sad to
say goodbye to Brian Auger on his retirement as the City’s events coordinator, after his decades of
cheerful and expert help on our events, including our current canceled lineup:
o 32nd Annual May Madness (pivoted to Sat. Night Cruise in August)
o 32nd Trick or Treat on Fourth Street (became Dine in Costume at DUTL)
o Clean & Green Day
o Sidewalk Sales
o Hops & Vines Stroll
o West End Village Celebration
o Shop Local Saturday (now Shop Local Season - featuring print and digital
ad campaigns highlighting the many reasons to support Downtown businesses)
SHOP LOCAL*EAT LOCAL
SUPPORT SAN RAFAEL M•®1i)tw-ttDift/tiri·li-9
Dining Under the Lights and Outdoor Dining Areas
To bring hope, commerce and life back to our Downtown, we created a new program—Dining
Under the Lights, with substantial help from the City of San Rafael. We are extremely grateful for
the fast action and generosity of so many City departments in making it happen.
We are proud to have been one of the first in Northern Calif. to develop an on-street dining
program. We launched on Thursdays in June, added Fridays in July, and eventually extended
the program through November.
This created the opportunity for restaurants to begin rehiring staff and serving seated diners. We
acted as liaison between departments of the ABC, the County and City to encourage over 45
restaurants, caterers, breweries and bars to
partner and safely participate.
Dining Under the Lights (DUTL) also gave the
weary public an outlet to feel safely distanced
and protected, enjoy a moment of normalcy and
support their local small business owners.
Our DUTL program allows restaurants to
maximize their profit potential without costly
building permits, construction costs or the lost
foot traffic caused by construction. Providing
our local restaurants with the ability to seat
more diners represents a significant revenue
improvement which will help them navigate these extremely difficult times.
DUTL also promotes our Downtown by providing foot traffic for other local businesses. This “free
advertising” will draw more patrons of different demographics to our Downtown, giving our local
retailers a boost.
Outdoor seating of every variety offers benefits that make our restaurants more attractive to a
variety of diners. Street seating can also address other issues, such as providing guests with
mobility issues the easy entry and exit of al fresco dining. This ground-level seating is ideal for
guests who use wheelchairs and other walking aids. Diners with bikes and dogs also appreciate
the freedom of outdoor dining.
This spring, in the season of growth and renewal, we advocate for more outdoor dining options.
These can stimulate higher revenues and brighter financial forecasts for bring our City and
Downtown businesses.
We hope to continue our successful DUTL in 2021. Some BID members are suggesting starting
the 2021 season as early as April or whenever weather permits.
The BID Organization and 2021 Work Plan
Our 2021 agenda emphasizes ensuring the BID’s organizational foundation is strong, fiscally
responsible and able to promote Downtown to members and the community. With the future very
much unknown, including our level of funding and what events may be allowed, our intention is to:
§ Communicate with members – continue engagement through
routine communications via website, email, newsletters and in
person
§ 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,
matching funds and more
§ Collaborate with local groups – continue partnerships with
SR City Departments, the SRPD, the Chamber and the
DSRAD to expand the BID’s reach and create more visibility
and excitement for Downtown.
§ Resume Dining Under the Lights – restart the program in
the spring when the weather turns warm
§ Continue May Madness – host our legacy event whenever
and however it can be safely done (parade or cruise).
Hopefully, we can produce other events as well.
See current information, status and business directory at:
DowntownSanRafael.org
Our Mission
The Business Improvement District promotes the
economic vitality of Downtown and the common interests
of Downtown business owners. We help promote a
district that is a welcoming place to shop, dine, work, that is
live and enjoy.
Our 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.
SHOP LOCAL
EAT LOCAL
SUPPORT SAN RAFAEL
DowntownSanRafael .org
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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
2020 BID Assessment
Type of Business Standard Premium
Retail on the Ground Floor, Restaurant, Personal Services on $175 $225
the Ground Floor
Retail on the Ground Floor, Restaurant, Personal Services on $1S0 $175
Ground Floor with Less than $100,000 i n Gross Receipts
Offices, Professiona l, Persona l Services, not on Ground Floor, $75 $100
Retail not on Ground Floor
Personal Services So le Practitioner $25 $50
Non-Profit Organization and Fine Artists $50 $50
Financial Institution $375 $425
San Rafael Downtown BID Budget Exhibit C
2019 Year End Fund Balance $58,457 2020 Year End Fund Balance $69,153
Revenues 2020 Programs
Year 2020
Estimated Year End 2021 Programs
Year 2021
Proposed Budget
BID Assessments $88,353 BID Assessments $60,000
Event Income - May Madness $1,199 Event Income (May Madness)$15,000
Sponsorship - DUTL $2,000
Sponsorship - General $1,000
Interest $6
Total Operating Income $92,558 $75,000
Expenses
Events May Madness ($5,542)May Madness ($15,000)
Trick or Treat ($100)Other Events/Costs:($10,000)
West End Celebration (2019)($941) Trick or Treat
Event Staffing ($2,175) Shop Local Saturday
West End Celebration
Sidewalk Sales
West End Events
Event Staffing
Events subtotal ($8,758)($25,000)
Initiatives
Dining Under the Lights (includes
BID staff costs)($32,000)
Dining Under the Lights (includes
BID staff costs)($40,000)
SR Chamber (Small Business
COVID-19 Grant Program)($5,000)Other Initiatives:
Children's Cottege (from 2019
WEVC)($750)
Downtown SR Arts District
(DSRAD)
Beautification
Initiatives subtotal ($37,750)($40,000)
Marketing & Promotions Event Advertising/Marketing ($8,000)Event Advertising/Marketing ($10,000)
Website Maintenance ($2,000)Website Maintenance ($2,000)
BID Member Communication ($500)BID Member Communication ($500)
Social Media ($500)Social Media ($500)
Marketing & Promotions Subtotal ($11,000)($13,000)
Operating Expenses Staffing ($18,000)Staffing ($17,000)
Insurance ($2,240)Insurance ($3,000)
Office Expense (supplies,
communications, etc.)($2,000)
Office Expense (supplies,
communications, etc.)($2,000)
Professional Fees ($1,700)Professional Fees ($1,700)
Meeting and Travel Expense ($414)Meeting and Travel Expense ($500)
Operating Expenses Subtotal ($24,354)($24,200)
Total Expenses ($81,862)($102,200)
Net Profit/(Loss) $10,696 ($27,200)
Projected 2020 Ending Fund Balance/Carryover to 2021 $69,153 2021 Ending Fund Balance $41,953
*Target Fund balance of $20,962 was used in its entirety to fund small businesses as Covid-19 relief.
I I
Memorandum
To: San Rafael City Council
From: Jed Greene, Treasurer
San Rafael Business Improvement District
Date: October 30, 2020
Re: San Rafael Business Improvement District Financial Summary
This memorandum highlights the significant 2020 financial activity of the San Rafael Business Improvement District
(BID) and the 2021 proposed budget.
2020
The COVID -19 outbreak, turned our world upside down, as it did everyone’s. We made a giant pivot from local
events, which we could no longer do, to helping the community and local businesses as much as possible. A
majority of our discretionary funding was used to support the Dining Under the Lights initiative and helping with
the Small Business COVID-19 Grant Program. We also anticipated that our revenues would decline sharply in 2021,
so we attempted to maintain a high cash reserve to use in 2021.
For 2020, the BID is projected to have a net income of approximately $11,000, leaving a cash balance of $69,153.
Proceeds from BID assessments were higher than budgeted, increasing to over $88,000, approximately 6% higher
than 2019. Due to COVID-19 restrictions, we were unable to host many of our planned events, providing the BID
with significant expense savings. However, we provided a significant financial outlay (estimated to be $32,000 by
the end of the year) for the Dining Under the Lights initiative, a vital program for the local restaurant industry and
community as a whole. We also granted the City and San Rafael Chamber of Commerce $5,000 for their Small
Business COVID-19 Grant Program, to help local businesses affected by COVID-19. We voted to use the remaining
Target funds for that initiative as well.
2021
Our activities and financial budget are difficult to anticipate for 2021. We expect a significant decline in BID
assessment revenue to $60,000, or over a 30% decline from 2020. However, because of our cash reserves, our
total expenses are budgeted to be similar our typical annual cash outflow before COVID-19. We anticipate using a
majority of our discretionary spending on the Dining Under the Lights program and/or local events. However, we
are aware that this is a fluid situation and there are many factors that could prevent or adjust our plan and we will
react accordingly. The BID projects to have a net loss of $27,200 in 2021, but our cash reserves give us the ability
to continue to help local businesses and the community during these trying times. Our anticipated cash balance at
the end of 2021 is $41,953.
Exhibit D