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ADOPT A RESOLUTION TO APPROVE THE MIRACLE MILE COMMUNITY IMPROVEMENT DISTRICT PROPOSED 2024 ANNUAL OPERATING BUDGET AND 2023 ANNUAL REPORT
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RECOMMENDATION
It is recommended that the City Council adopt a resolution:
1. Approving the proposed 2024 Operating Budget for the Miracle Mile Community Improvement District;
2. Approving the 2023 Annual Report for the Miracle Mile Property and Community Improvement District; and
3. Authorizing the City Manager, or designee, to take necessary and appropriate actions to carry out the purpose of this resolution.
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Summary
The Miracle Mile Property and Business Improvement District (MMPBID) was originally formed by the Stockton City Council in 2007 pursuant to the Property and Business Improvement District Law of 1994 (“PBID Law”). The MMPBID expired December 31, 2022. On January 1, 2023, the Miracle Mile Community Improvement District (MMCID) was formed. A Community Improvement District is a flexible financing tool to allow business districts mechanisms to establish innovative ways of attracting, retaining, and expanding their businesses to remain competitive with other areas of Stockton. The City Council executed an agreement with a non-profit corporation called the Miracle Mile Community Improvement District (the “Owners’ Association”) to manage the MMCID as its owners’ association, with responsibility for district assessments and delivery of enhanced services, for a 20-year term, beginning January 1, 2023, through December 31, 2042. It is recommended that Council approve the MMCID 2024 Operating Budget and the MMPBID 2023 Annual Report (Exhibits 1 & 2 to the proposed resolution, respectively).
DISCUSSION
Background
Prior to January 1, 2023, the area within the MMCID was part of the MMPBID. On March 22, 2022, City Council revised Stockton Municipal Code Chapter 3.96 concerning the formation of Community Improvement Districts (CID) (Attachment A - SMC Ordinance No. 2022-03-22-1211). The City’s CID ordinance creates additional and alternative assessment district procedures to those provided under the PBID Law. A CID is a community-driven partnership with the City to improve the quality of life in neighborhoods by acting as a catalyst for creating private-sector, self-governed management districts. These districts provide the resources for enhanced maintenance, safety, marketing, management, and advocacy services through property assessments. On September 13, 2022, City Council approved the formation of the MMCID, (Attachment B - Resolution No. 2022-09-13-1602), with a term of twenty years.
On December 6, 2022, City Council designated the Owners’ Association to operate the MMCID with responsibility for managing the community improvement district assessments and delivery of enhanced services. (Attachment C - Resolution 2022-12-06-1205).
The MMCID includes 143 parcels located along the Miracle Mile (Pacific Avenue) (Attachment D - MMID Boundary Map), 91 property owners, and over 160 businesses. The MMCID provides supplemental services to Miracle Mile commercial corridors, including enhanced maintenance, public security and safety, marketing and promotions, and advocacy and management.
Present Situation
The agreement executed between the City of Stockton and the Owners’ Association stipulates that yearly budgets shall be submitted on or before January 1st for years 2-20. The budget is subject to Council review and approval. The 2024 MMCID budget shows $152,150 funded through property assessments and $246,531 in other income for a total budget of $389,311.
Below are some of the MMCID 2023 accomplishments:
• Converted the Owners’ Association to a 501(c)(3)
• Raised funds to implement a Security Camera and Monitoring System
• Hosted four signature events and one major fundraiser event
• Increased social media marketing: 15% follower increase on Instagram, 446 new followers on Facebook.
• Enhanced security: Ongoing collaboration with Hammerhead Security and Stockton Police Department with 1,942 total hours of patrol.
• Enhanced maintenance: Garbage clean up and removal seven days a week, hand watering of trees and plants weekly, and districtwide sidewalk pressure washing monthly.
In 2024, MMCID will continue its efforts to create a safe environment, protect property owner investments, and strive to raise property values, focusing on a clean, safe, and beautiful district.
Some of the 2024 goals include:
• Miracle Mile pedestrian safety advocacy: installation of the new security camera system, city parking lot resurfacing projects, advocate for the implementation of capital improvements per AB-179.
• Miracle Mile marketing and walkability enhancements: implement street banner program, deepen and expand community marketing partnership, new co-branded light pole banners.
FINANCIAL SUMMARY
The MMCID assessments are paid directly to the County by property owners as part of their tax bill. The Owners’ Association, as the administrator of the improvement district, will provide direct billing to the County in order to receive these revenues. The City will not act as an intermediary to request payments on behalf of the MMCID.
The total amount of the assessment paid during 2024 by property owners will be $152,150. The annual assessment for City-owned property within the MMCID is $22,505 and is budgeted in and paid from the Administrative Services General Fund, General Administration Division, Tax Collection Costs program account.
For the calendar year 2024, the projected annual operating budget for the MMCID is $389,311. The MMCID anticipates $389,311 in expenditures, which includes expenses for management services, operational costs, professional services, maintenance, marketing, public safety, and security. Total revenues projected include the $237,161 assessment income and $152,150 in other income from non-assessment income, which includes events, and retained earnings.
Attachment A - SMC Ordinance No. 2022-03-22-1211
Attachment B - Resolution No. 2022-09-13-1602
Attachment C - Resolution No. 2022-12-06-1205
Attachment D - MMCID Boundary Map