title
ADOPT A RESOLUTION TO APPROVE THE DOWNTOWN STOCKTON PROPERTY AND BUSINESS IMPROVEMENT DISTRICT 2024 ANNUAL REPORT, FISCAL YEAR 24/25 ASSESSMENTS, AND PROPOSED 2025 OPERATING BUDGET
recommended action
RECOMMENDATION
It is recommended that the City Council adopt a resolution:
1. Approving the 2024 Annual Report for the Downtown Stockton Property and Business Improvement District; and
2. Approving the Proposed 2025 Operating Budget and Property Assessments for the Downtown Stockton Property and Business Improvement District; and
3. Authorizing the City Manager, or designee, to take necessary and appropriate actions to carry out the purpose of this resolution.
body
Summary
The Downtown Stockton Property and Business Improvement District (DSPBID) is one of the oldest Property and Business Improvement Districts in California, having been established in 1997 (Attachment A - Resolution No. 97-0241) and most recently renewed in 2017 (Attachment B - Resolution No. 2017-07-25-1501). The City executed a contractual agreement with Downtown Stockton Alliance (DSA), a non-profit corporation, to manage and operate the DSPBID as its owners’ association for ten years beginning January 1, 2018 (Attachment C - Resolution No. 2017-11-07-1105). DSA is responsible for developing the goals and preparing and managing the DSPBID’s annual budget. It is required under the contract that DSA provide the City Council with its operating budget and the annual report of accomplishments for approval each year. The 2024 Annual Report, Fiscal Year 2024/2025 Assessments, and the 2025 Operating Budget for the DSPBID are included as Exhibits 1, 2, and 3 to the proposed Resolution.
DISCUSSION
Background
The Property and Business Improvement District Law of 1994 authorizes local government entities to establish property and business improvement districts - 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.
The Downtown Stockton Property and Business Improvement District (DSPBID) was created in 1996 and the Downtown Stockton Alliance (DSA), consisting of the District’s “owner’s association,” was incorporated in 1996 as a 501(c)(6) to manage the DSPBID.
In 2017, the City Council adopted the Downtown District Management Plan and authorized an agreement with the DSA to manage the DSPBID for a ten-year term beginning January 1, 2018, through December 31, 2027.
Pursuant to the Property and Business District Law of 1994 and adopted Management Plan, DSA is required to submit its annual report and proposed budget to the City each year and report on the improvements, maintenance, and activities supported by the assessments. The annual report and proposed budget is subject to Council approval.
Present Situation
Pursuant to the Management Plan, DSA has submitted its 2024 Annual Report. During 2024, DSA continued to be a key partner in business support and economic recovery efforts in the aftermath of the pandemic.
Below are some of the DSPBID’s 2024 accomplishments:
• Completed 58 façades with the Business Façade Improvement Grant Program, funded by the City’s American Rescue Plan Act (ARPA) funds.
• Continued to administer San Joaquin County ARPA-funded programs, including the completion of 60 broken window repair reimbursements, 17 window wrap grants, and hosting the Downtown Stockton Entrepreneur Support Program.
• Approved two new loans through the Downtown Stockton Enterprise Loan Fund (DSELF) loan program.
• Continued to release episodes on Talk to Downtown with 12 new videos, which are now available in the podcast section on Spotify, and 6 new videos for Doorways to Downtown.
• Increased DSA’s social media following, helping to raise awareness for activities and events in the downtown.
• Partnered with the City of Stockton, Stockton Ports, and Stockton Kings on two crosswalk mural projects.
• Partnered with the Miracle Mile Improvement District to expand the Community Ambassador Program to one of the gateways to downtown.
• Hosted two international interns through the Korea WEST exchange program and offered internship hours with an immersive experience in an American business setting.
• Opened the Downtown Stockton Storefront - offering Downtown-branded tees, tanks, hoodies, hats, totes, and more, for those who want to support and help market Downtown Stockton.
• Launched the San Joaquin County Façade Enhancement Grant Program, in partnership with the San Joaquin County Employment and Economic Development Department (EEDD) funded through ARPA.
DSA’s proposed 2025 operating budget includes nearly $1.3 million from property assessments and more than $1.37 million in other non-assessment income. The DSPBID assessments are paid to the County by the private property owners located within the District as part of their annual tax bill, while the City pays its assessments directly to DSA. The total assessments to be paid in 2025 are $1,297,824, which is accounted for in DSA’s proposed operating budget and will be administered accordingly.
In 2025, DSA is looking to continue its mission to maintain a clean, safe, and beautiful downtown for its businesses, residents, and visitors. DSA intends to continue its partnerships with the City of Stockton, San Joaquin County, and other public-private partnerships with local organizations to support economic recovery, economic growth, new businesses, attract tourists, and support ongoing cultural and community events. To commemorate the 100th anniversary of the Civic Auditorium, DSA plans to place banners of local veterans on light poles around the Stockton Memorial Civic Auditorium. Lastly, one of DSA’s major goals is to navigate the recertification process of the Property Improvement District into a Community Improvement District and expand its boundaries to continue its mission.
Staff recommends the adoption of the attached Resolution to approve the 2024 Annual Report (Exhibit 1), Fiscal Year 2024/2025 Assessments (Exhibit 2), and the proposed 2025 Operating Budget (Exhibit 3) for the Downtown Stockton Management District.
FINANCIAL SUMMARY
DSPBID’s operating budget consists of the property assessments and other sources. The property assessments are paid directly to the County by private property owners as part of their tax bill, then transferred to DSA, while the City pays its assessments directly to DSA. The estimated income from all property assessments to be paid to DSA in 2025 is $1,297,824.
The City of Stockton, Entertainment Venues, Parking Authority, and Successor Agency (formerly known as the Stockton Redevelopment Agency) pay property assessments to DSA for the respective parcels owned within the Downtown Stockton Management District. With the dissolution of the Stockton Redevelopment Agency in 2012, under Assembly Bill X1 26 (AB 26), the assessments on the Agency-owned properties were transferred to the Stockton Successor Agency, which is overseen by the Stockton City Council.
The annual assessments for the City-owned, Parking Authority-owned, and Successor Agency-owned parcels within the DSPBID are $382,262.46 as demonstrated in the table below:
|
Owner / Entity |
Fund |
Assessment Amount |
|
City of Stockton |
Administrative Services General Fund |
$187,850.50 |
|
City of Stockton |
Entertainment Venues Fund |
$87,613.32 |
|
Parking Authority |
Parking |
$105,987.64 |
|
Successor Agency |
Successor Agency |
$811.00 |
|
Total |
|
$382,262.46 |
These amounts are budgeted within each respective fund as part of the City’s Annual Operating Budget. As a property owner within the Downtown, the City is obligated to pay the designated assessments. There is no financial impact other than the assessments due from City-owned properties, which totals $382,262.46 for calendar year 2025.
Attachment A - Resolution 97-0241
Attachment B - Resolution 2017-07-25-1501
Attachment C - Resolution 2017-11-07-1105