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ADOPT A RESOLUTION TO APPROVE THE DOWNTOWN STOCKTON PROPERTY AND BUSINESS IMPROVEMENT DISTRICT 2025 ANNUAL REPORT, PROPOSED 2026 OPERATING BUDGET, AND FISCAL YEAR 25/26 PROPERTY ASSESSMENTS
recommended action
RECOMMENDATION
It is recommended that the City Council adopt a resolution:
1. Approving the 2025 Annual Report for the Downtown Stockton Property and Business Improvement District; and
2. Approving the 2026 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.
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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). DSPBID currently operates under the renewal from 2017 (Attachment B - Resolution No. 2017-07-25-1501). On February 3, 2026, City Council approved formation of the Downtown Stockton Community Improvement District (DSCID), thereby allowing continued assessments and operations as a Community Improvement District beginning on January 1, 2027 (Attachment C - Resolution No. 2026-02-03-1501). DSCID will replace DSPBID but will perform similar functions.
The City executed a contractual agreement with Downtown Stockton Alliance (DSA), a non-profit corporation, to manage and operate DSPBID as its owners’ association for ten years beginning January 1, 2018 (Attachment D - Resolution No. 2017-11-07-1105). DSA is responsible for developing the goals and preparing and managing 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 2025 Annual Report, Fiscal Year 2025/2026 Assessments, and the 2026 Operating Budget for DSPBID are included as Exhibits 1, 2, and 3 to the proposed Resolution.
The above recommended actions are required under the current DSPBID and operating agreement with the City and are not reflective of the most recent approval to continue operation under the newly created Community Improvement District in 2027.
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 DSPBID.
In 2017, the City Council adopted the Downtown District Management Plan and authorized an agreement with the DSA to manage 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 2025 Annual Report. During 2025, DSA continued its efforts in supporting the growth and maintenance of Downtown Stockton.
Below are some of DSPBID’s 2025 accomplishments:
• Community ambassadors completed more than 6,700 hours of patrol hours and assisted with 21 community escorts and 15 alarms;
• Removed nearly 23,500 bags of trash, 78 instances of graffiti, more than 3,000 instances of human waste, 104 shopping carts removed, and completed 1,600 hours of pressure washing;
• Continued to administer San Joaquin County ARPA-funded programs, including the completion of 8 façade enhancements, 20 window wraps, and 21 broken window reimbursements;
• Increased social media followers/subscribers on Youtube with a 273% increase, Facebook with a 31% increase, and Instagram with a 39% increase, raising awareness for the businesses and events in downtown;
• Launched the weekly What’s Happening This Weekend in Downtown Stockton series, which is a compiled post of the weekend’s events happening within the Downtown Stockton Management District;
• Released 12 marketing newsletters, 12 business owner newsletters, and 12 property owner newsletters to keep owners, operators, and residents informed of events, news, and resources;
• Developed certificates to recognize businesses at grand openings and anniversaries;
• Assisted in the promotion of 51 available sites and buildings that were for sale or lease within the district; and
• Installed military banners around the Civic Auditorium, commemorating its 100th anniversary.
DSA’s proposed 2026 operating budget includes more than $1.36 million from property assessments and more than $2.3 million in other non-assessment income. 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 2026 are $1,362,715, which is accounted for in DSA’s proposed operating budget and will be administered accordingly.
In 2026, DSA is looking to continue its mission of maintaining a clean and safe downtown for its businesses and residents. Through its partnership with San Joaquin County, DSA aims to continue providing various financial assistance programs, including the Façade Enhancement Grant Program, Downtown Stockton Entrepreneur Support Program, Downtown Stockton Window Wrap Program, and the Downtown Stockton Broken Window Reimbursement Program.
In order to attract new visitors to the area, DSA will focus its social media presence to create content that highlights downtown but also resonates with the audience. DSA will cotinine its various video series - Doorways to Downtown, which highlights a different business every month; Spirits of Downtown, that brings a suspenseful twist to some of downtown’s historic buildings; Intern Adventures, which follows DSA’s interns as they explore downtown Stockton; and What’s Happening This Weekend, which promotes different events happening in the area - from live music, happy hour, karaoke night to the weekend farmers market and major events at the Arena. Additionally, DSA plans to continue hosting the Annual National Night Out and Mid-Autumn Moon Festival in collaboration with local partners.
DSA will also continue its mission of supporting existing tenants as well as attracting new business tenants with the goal of recruiting a grocery store. DSA will continue to support the activity at the Bob Hope Theatre by installing removable bollards that will be used during major events, and installing exterior string lights. Lastly, DSA aims to collaborate with the Sacramento Navigator program to assist the unhoused in the downtown area.
Staff recommends the adoption of the attached Resolution to approve the 2025 Annual Report (Exhibit 1), Fiscal Year 2025/2026 Property Assessments (Exhibit 2), and the proposed 2026 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 2026 is $1,362,715.
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 DSPBID are approximately $422,390, as demonstrated in the table below:
|
Owner / Entity |
Fund |
Assessment Amount |
|
City of Stockton |
Administrative Services General Fund |
$218,256.18 |
|
City of Stockton |
Entertainment Venues Fund |
$91,994.00 |
|
Parking Authority |
Parking |
$111,287.60 |
|
Successor Agency |
Successor Agency |
$851.56 |
|
Total |
|
$422,389.34 |
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. The City is obligated to pay the assessments due from City-owned properties, which total $422,389.34 for calendar year 2026.
Attachment A - Resolution 97-0241
Attachment B - Resolution 2017-07-25-1501
Attachment C - Resolution 2026-02-03-1501
Attachment D -- Resolution 2017-11-07-1105