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ADOPT A RESOLUTION TO APPROVE THE MIRACLE MILE COMMUNITY IMPROVEMENT DISTRICT 2025 ANNUAL REPORT, PROPOSED 2026 OPERATING BUDGET, AND FISCAL YEAR 25/26 PROPERTY ASSESSMENTS
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RECOMMENDATION
It is recommended that the City Council adopt a resolution:
1. Approving the 2025 Annual Report for the Miracle Mile Community Improvement District; and
2. Approving the Proposed 2026 Operating Budget and property assessments; 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
Miracle Mile Property and Business Improvement District (MMPBID) was established in 2007 pursuant to the Property and Business Improvement District Law of 1994 (PBID Law) (Attachment A - Resolution No. 07-0310). On September 13, 2022, prior to the expiration of MMPBID, City Council approved the formation of the Miracle Mile Community Improvement District (MMCID) for a term of 20 years (Attachment B - Resolution No. 2022-09-13-1602). On January 1, 2023, MMCID was formed. A Community Improvement District is a flexible financing tool for creating private sector, self-governed management districts by levying new or increased assessments for properties and businesses within the district. These districts provide the means for enhanced maintenance, safety, marketing, management, and advocacy services.
On December 6, 2022, City Council executed an agreement with Miracle Mile Community Improvement District (Owners’ Association), a non-profit organization, to operate MMCID with responsibility for managing the community improvement district assessments and delivery of enhanced services (Attachment C - Resolution 2022-12-06-1205). (For clarification, both the district and the entity managing the district are referred to as the MMCID, though they are separate legal entities). The contract has a 20-year term, beginning January 1, 2023, through December 31, 2042. The Owners’ Association is required by contract to submit its annual report and proposed budget to the City Council for approval each year.
It is recommended that Council approve the MMCID 2025 Annual Report, the Fiscal Year 2025/2026 Assessments for City-owned property, and the MMCID property 2026 Operating Budget (Exhibits 1, 2, & 3 to the proposed Resolution).
DISCUSSION
Background
Prior to January 1, 2023, the area within MMCID was part of MMPBID. On March 22, 2022, City Council revised Stockton Municipal Code Chapter 3.96 concerning the formation of Community Improvement Districts (CIDs) (Attachment D - 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.
MMCID includes 143 parcels located along the Miracle Mile (Pacific Avenue) (Attachment E - MMID Boundary Map), 91 property owners, and over 160 businesses. MMCID provides supplemental services to Miracle Mile commercial corridors, including enhanced maintenance, public security, safety, marketing, promotions, advocacy, and management.
Present Situation
Pursuant to the Management Plan, MMCID has submitted its 2025 Annual Report.
Below are some of MMCID’s 2025 accomplishments:
• Completed Phase 3 of its Security Camera Monitoring System;
• Community ambassadors completed more than 5,800 hours of patrol and assisted patrons and businesses;
• Partnered with the Downtown Stockton Alliance to help maintain a clean and safe environment throughout the district, with the removal of more than 9,000 bags of trash and 464 hours of pressure washing;
• Partnered with the Kiwanis Club to host community clean-up days;
• Increased social media followers on Facebook with more than 780 new followers, and more than 2,600 new followers on Instagram, to raise awareness for the businesses and events happening on the Miracle Mile;
• Hosted various events, including Stoktober Fest & Car Show; Tiger Prowlin’ the Mile (with the University of the Pacific); Art Lit Walk; and Taste of the Mile, which brought hundreds of visitors to the area and businesses.
In 2026, 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 attractive district. MMCID will also continue its efforts in attracting visitors to the area by hosting various events drawing people to area businesses, as well as continuing to promote businesses and events on social media.
FINANCIAL SUMMARY
MMCID’s proposed 2026 Operating Budget consists of property assessments and other sources. The property assessments are paid directly to the County by private property owners as part of their tax bill, while the City pays its assessments directly to MMCID. The Owners’ Association, as the administrator of the improvement district, will provide direct billing to the County to receive these revenues.
The estimated income from all property assessments to be paid to MMCID during 2026 is $264,162. The City of Stockton pays property assessments to MMCID for their respective parcels owned within the Miracle Mile Management District.
The assessment amount is budgeted as part of the City’s Annual Operating Budget. As a property owner within the Miracle Mile, the City is obligated to pay the designated assessments. The City is obligated to pay the assessments due from City-owned properties, which totals $24,812 for calendar year 2026. Funds to pay the annual assessment are budgeted from the Administrative Services General Fund, General Administration Division, and Tax Collection Costs program account.
Attachment A - Resolution No. 07-0310
Attachment B - Resolution No. 2022-09-13-1602
Attachment C - Resolution No. 2022-12-06-1205
Attachment D - SMC Ordinance No. 2022-03-22-1211
Attachment E - MMCID Boundary Map