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ADOPT A RESOLUTION TO APPROVE THE MIRACLE MILE COMMUNITY IMPROVEMENT DISTRICT 2024 ANNUAL REPORT, FISCAL YEAR 24/25 ASSESSMENTS, AND PROPOSED 2025 OPERATING BUDGET
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RECOMMENDATION
It is recommended that the City Council adopt a resolution:
1. Approving the 2024 Annual Report for Miracle Mile Property and Community Improvement District; and
2. Approving the Property Assessments for Miracle Mile Community Improvement District and Proposed 2025 Operating Budget 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 in December 2022, City Council approved the formation of Miracle Mile Community Improvement District (MMCID) for a term of twenty 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 2024 Annual Report, the Fiscal Year 2024/2025 Assessments for City-owned property, and the MMCID 2025 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 2024 Annual Report.
Below are some of MMCID’s 2024 accomplishments:
• Launched the Security Camera Monitoring Program, successfully installing 28 cameras in conjunction with the launch of the Safety Ambassador Program, which combines camera monitoring with on-the-ground engagement.
• Increased social media marketing: 18% follower increase on Instagram, 691 new followers on Facebook.
• Enhanced security: New partnership with Calidad Security Services and Stockton Police Department with 5,840 total hours of patrol.
• Enhanced maintenance: Garbage clean-up and removal seven days a week, hand watering of trees and plants weekly, and district-wide sidewalk pressure washing every six weeks.
• Acquisition of 231 Bedford for the development of a maintenance sub-station which will also serve as a location for the MMCID office.
In 2025, 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.
Some of the 2025 goals include:
• Miracle Mile pedestrian safety advocacy: acquisition of maintenance substation, phase 3 security camera expansion, and city parking lot resurfacing projects.
• Miracle Mile marketing and walkability enhancements: street banner replacement funding, pedestrian lighting improvements, and façade improvement facilitation.
FINANCIAL SUMMARY
MMCID’s 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 City will not act as an intermediary to request payments on behalf of MMCID.
The estimated income from all property assessments to be paid to MMCID during 2025 is $249,019. The annual assessments for City-owned parcels within MMCID is $23,630 and is budgeted in and paid from the Administrative Services General Fund, General Administration Division, and Tax Collection Costs program account.
The amount is budgeted within the respective fund 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. There is no financial impact to the City’s General Fund as a result of this action.
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