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MIRACLE MILE IMPROVEMENT DISTRICT PROPOSED 2017 ANNUAL OPERATING BUDGET, ASSESSMENT, AND 2016 ANNUAL REPORT
recommended action
RECOMMENDATION
It is recommended that the City Council adopt a resolution approving the proposed 2017 Operating Budget, Assessment, and 2016 Annual Report for the Property Based Improvement District commonly known as the Miracle Mile Improvement District, a nonprofit corporation.
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Summary
The Miracle Mile Improvement District (MMID) is a Property Based Improvement District that was originally formed by the Stockton City Council in 2007. Each year, the MMID is required by contract to provide City Council with its operating budget, annual assessment, and annual report of accomplishments for approval. The 2017 Operating Budget, Assessment, and 2016 Annual Report (including 2017 Action Items) for the Miracle Mile Improvement District are attached as Exhibits 1, 2, and 3 to the Resolution, respectively.
DISCUSSION
Background
The Property Based Improvement District (PBID) is a flexible financing tool for creating private-sector, self-governed management districts. The Miracle Mile Improvement District is one of two existing PBIDs within Stockton. The second is the Downtown Stockton Alliance. The MMID was established by the City Council on July 17, 2007, with a five-year term expiring December 31, 2012. The MMID was renewed by Council for an additional five years commencing January 1, 2013, and expiring December 31, 2017. It includes 158 parcels located along the Miracle Mile (Pacific Avenue) and Harding Way (Attachment A - MMID Boundary Map).
Services provided within the boundaries of the MMID include enhanced maintenance, public security and safety, marketing and promotions, and advocacy and management. Services to be provided within the MMID are allocated within two Benefit Zones as described below:
Zone 1: Consists of parcels on Pacific Avenue south of Regent Court and all parcels along Harding Way from Lincoln Street to North El Dorado Street.
Zone 2: Consists of the remainder of the parcels along Pacific Avenue from Regent Court to Alpine Avenue.
Because the level of service differs between the two benefit zones, Zone 1 ($0.13 per sf) pays a higher assessment than Zone 2 ($0.06 per sf).
In December 2012, the City Council authorized an agreement with the MMID for administration of the Miracle Mile PBID, which is in effect until December 31, 2017. In accordance with Property and Business District Law of 1994 and pursuant to the agreement, MMID is required to administer funds consistent with the adopted Management District Plan.
Present Situation
The Management District Plan provides that the MMID submit its budget and annual report to the City by March of each year. The budget is subject to Council review and approval. The 2017 MMID budget shows that the City of Stockton contributes $20,270.87, with Stockton Unified School District contributing $19,829.04, and the balance of $195,093.13 from private property owners for a total of $235,193.04 in assessment income.
In addition to the assessment income, the MMID also receives a voluntary $25,000 contribution from the University of the Pacific and receives supplemental security funds from other property owners to help with private security costs. The San Joaquin Regional Transit District also contracts with MMID to pressure wash and maintain its bus stops.
MMID dedicates approximately 33% of its budget towards public safety and security expenses and 21% towards maintenance and beautification. The balance of its budget is spent on management, advocacy, and marketing. Below are some of the MMID accomplishments in 2016:
• Partnered with Port City Marketing to launch a branding campaign, The Heart of Stockton in the Heart of Stockton, with radio and print ads, as well as a social media marketing campaign to continue into 2017
• Recruited THE STOCKMARKET to the Miracle Mile, resulting in 2,500 new visitors to the district
• Partnered with the City of Stockton Police Departments Strategic Enforcement Operations Team for increased patrol, sting operations for vandalism, and to create a Business Watch on Pacific Avenue and Harding Way that will continue into 2017
During 2017, the MMID will continue to create a safe environment, protect property owner investments, and strive to raise property values, focusing on a clean, safe, and beautiful district (2017 Action Items are included in Exhibit 3 to the Resolution), some of the 2017 goals are listed below:
• Continue to build a mutually beneficial relationship with the University of the Pacific
• Recruit development of vacant lots and recruit retail businesses to the district for higher concentration of shopping opportunities in the area
• Continue beautification project of Harding Way in partnership with the City of Stockton
• Partner with the City of Stockton, SUSD Police Department, RTD Police Department, and MMID Safety Patrol to reduce loitering and transient activity
• Support monthly events hosted on the Miracle Mile and create a sponsorship package to encourage businesses in the district to host future events
The Miracle Mile Improvement District is set to expire at the end of 2017 and, as a result, a major goal of the MMID is to complete the process of renewing the district prior to its expiration. The City Council will be asked to approve a resolution stating its intent to renew the district upon a 51% approval of the Miracle Mile property owners in the near future.
Staff recommends adoption of the attached resolution which approves the proposed 2017 Annual Operating Budget (Exhibit 1 to the Resolution), Assessment (Exhibit 2 to the Resolution), and 2016 Annual Report, including 2017 Action Items (Exhibit 3 to the Resolution) for the Miracle Mile Improvement District for calendar year 2017.
FINANCIAL SUMMARY
The Miracle Mile Improvement District assessments are paid directly to the County by property owners as part of their tax bill. The funds collected by the County are transferred to the City and deposited in Assessments Miracle Mile PBID Account No. 689-0000-237. The funds are then transferred to the MMID as administrator of the improvement district.
The total amount of the assessment paid during 2017 by property owners will be $235,193.04. The annual assessment for City-owned property within the MMID is $20,270.87, and is budgeted in and will be paid from Account No. 010-0131-510 General Fund Non-Departmental Administration.
For calendar year 2017, the projected annual operating budget for the MMID is $287,507. The MMID anticipates $282,107 in expenditures, which include expenses for staffing, rent, utilities, office costs, insurance, professional services, marketing, security and maintenance. They project a miscellaneous expense of $5,400 for a renewal fund and reserve fund for a balanced budget for 2017. Total revenues projected in the amount of $257,507 include the $235,193 assessment income, $52,314 in voluntary assessments, supplemental security, RTD maintenance contract, renewal savings, events, and interest.
Attachment A - MMID Boundary Map