title
CONDUCT PUBLIC HEARING FOR THE RENEWAL OF THE DOWNTOWN STOCKTON PROPERTY AND BUSINESS IMPROVEMENT DISTRICT
recommended action
RECOMMENDATION
It is recommended that the City Council conduct a Public Hearing to consider public comment and testimony regarding the approval and adoption for the renewal of the Downtown Stockton Property and Business Improvement District.
After the public hearing, if a majority protest does not exist, it is recommended that the City Council adopt a resolution to:
1. Overrule all public hearing protests; and
2. At the close of the public hearing, direct the City Clerk to tabulate all ballots received.
If after tabulation of the ballots, the ballots in favor of the Downtown Stockton Property and Business Improvement District renewal exceed the ballots in opposition to Downtown Stockton Property and Business Improvement District renewal (weighted by the amount of the assessment); it is recommended that the City Council adopt a resolution to:
1. Approve the renewal of the Downtown Stockton Property and Business Improvement District under the 1994 Act (Attachment A) and designated “Downtown Stockton Management District No. 2007-1,” with separate benefit zones designated “Zone 1,” “Zone 2” and “Zone 3,” the boundaries of which are shown in the Boundary Map (Exhibit 1 to the Resolution);
2. Approve the assessment formula and levying of the assessments;
3. Declare the assessment is lawfully authorized and direct the Clerk to cause the Boundary Map to be filed in the Office of the San Joaquin County Recorder and, concurrently therewith, to record a Notice of Assessment with respect to the properties in the Office of the County Recorder of the County of San Joaquin; and
4. Approve and adopt the final Management District Plan and Engineer’s Report (Exhibit 2 and 3 to the Resolution).
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Summary
A Property and Business Improvement District (PBID) is a flexible financing tool for creating private-sector, self-governed management districts. Currently, the City has two such districts, the Downtown Stockton Alliance and the Miracle Mile Improvement District. The Downtown Stockton Alliance, which is the governing organization for the Downtown Stockton PBID (DSPBID), has requested that the City of Stockton consider reestablishing the district. On May 23, 2017, a Resolution of Intention was adopted by the City Council to renew the DSPBID and to set a date for a public hearing, among other actions. This report contains recommendations which are the final steps in renewing the DSPBID. If approved, the renewal of the DSPBID would commence for a term of ten (10) years beginning January 1, 2018, to December 21, 2027.
DISCUSSION
Background
On May 23, 2017, the City Council adopted Resolution No. 2017-05-23-1401, stating its intention to renew the DSPBID, accepting petition of property owners, preliminarily approving the Management District Plan and Engineer’s Report, approving a proposed boundary map, setting a date for a public hearing of protests on July 25, 2017, providing for property owner ballots, and authorizing the City Manager to sign the ballot for all City-owned property which is proposed to be assessed in favor of the renewal of the DSPBID. Assessment ballots and notice of public hearing were mailed to property owners within the district on May 25, 2017.
The Downtown Stockton Alliance has been providing supplemental services to the Downtown Stockton area since its inception in 1996, including enhanced security, maintenance, marketing, and special events. Some of its recent accomplishments include:
• Clean and Safe - Removed 323 instances of graffiti, removed 310,825 pounds of trash, applied 5,635 hours to pressure washing Downtown sidewalks, partnered with the Stockton Police Department to address problems, organized history and art tours for 365 visitors.
• Special Events and Economic Development - Organized events including Weekly Waterfront Friday, Full Moon Riders, and The Great Big Read; hosted community, art, and private events; assisted and participated in various community events in Downtown.
• Marketing - Increased website traffic by 37%, redesigned and launched a new mobile-friendly website, increased social media site visitors.
Present Situation
On July 25, 2017, a public hearing will be held in compliance with the requirements of Government Code Section 53753(d) which requires that the City Council conduct a public hearing for protests and tabulation of property owner’s assessment ballots prior to the renewal of the DSPBID. During the hearing, the City Council may hear testimony from property owners in support or in protest of the renewal of the PBID or components thereof.
After the close of the public hearing, ballots are tabulated weighted by the amount each owner will pay, and if a majority of the ballots received are in favor of the renewal, then the City Council may adopt a resolution approving the renewal of the district.
MANAGEMENT DISTRICT PLAN
The Management District Plan (Exhibit 2 to the Resolution) includes the proposed boundary of the DSPBID, a service plan, assessment methodology for benefit Zones 1, 2, and 3, budget, proposed means of governance, and Engineer’s Report.
• Proposed Boundary. The DSPBID encompasses approximately 123 blocks in the downtown cental core. It primarily runs west along the Stockton channel to the I-5 freeway, north to Fremont and Oak Streets, east to the railroad, and south to Sonora Street. A total of 626 commercial and residential properties are included within three benefit zones: Zone 1, Zone 2, and Zone 3.
• Services. As determined by area property and business owners, the top priority for services and activities within the DSPBID include:
o Environmental Enhancements: public safety, maintenance, homeless outreach, and beautification;
o Economic Development and Marketing: business recruitment and retention, market downtown to tenants, brokers and investors; and
o Administration/Advocacy: advocate on downtown policy issues, provide daily management to carry out DSPBID operations.
• Rate of Assessment and Benefit Zones. The proposed assessment rate is based on three benefit zones, building square footage, and parcel square footage. Benefit zone adjustments are made to reflect the anticipated service frequencies within each of the three benefit zones. Residential property assessment rates are adjusted according to their share of benefits received, and residential properties within Zone 3 are not assessed. Residential parcels with 6 or more units are considered a commercial enterprise and therefore are assessed at the commercial rate. The initial annual rate to each parcel is shown in the table below:
• Assessment Levy. As provided by state law, the DSPBID assessment will appear as a separate line item on the annual San Joaquin County property tax bill and will be collected by the County on an annual basis from each assessed property owner. The County will forward the assessments to the Downtown Stockton Alliance, which will have the responsibility of managing DSPBID programs as provided in the Management District Plan. The projected annual budget for the DSPBID is $1,059,760.67, which will be funded by property assessments. This amount will be supplemented by non-assessment funds such as grants, fundraising, and special events, with the goal of increasing the annual budget to $1,080,000.
• District Term. The renewed DSPBID will have a ten (10) year life. The assessment will be implemented beginning January 1, 2018. Once per year beginning on the anniversary of DSPBID renewal there is a 30-day period in which property owners are paying more than 50% of the assessment may protest and begin proceedings to terminate the DSPBID.
DISTRICT Renewal PROCESS
September 2016 INITIATE RENEWAL AND CONDUCT STAKEHOLDER OUTREACH
December 5, 2016 FINAL MANAGEMENT DISTRICT PLAN
February 23, 2017 PETITION DRIVE
Begin petition of property owners located within the district to determine those that are in favor of renewing the DSPBID.
May 5, 2017 SUBMITTAL OF PETITIONS
Petitions totaling more than fifty percent (50%) of the assessment proposed to be levied are submitted to the City Clerk’s Office.
May 23, 2017, RESOLUTION OF INTENTION
Upon the submission of a written petition, signed by the property owners in the proposed district who will pay more than 50 percent of the assessments proposed to be levied, the City Council may initiate proceedings to renew a district by the adoption of a resolution expressing its intention to renew a district.
May 25, 2017 NOTICE & PROPOSITION 218 BALLOT
The Property and Business Improvement District Law of 1994 and Proposition 218 require the City mail written notice and assessment ballots to the owners of all property proposed to be assessed within the district. Mailing the notice and assessment ballot begins a mandatory forty-five (45) day period in which owners may cast ballots.
July 6, 2017 PUBLIC HEARING NOTICE PUBLISHED
A notice was published in The Record announcing the Public Hearing set for July 25, 2017, at least fifteen (15) days prior to the hearing.
July 25, 2017, FINAL PUBLIC HEARING
Council will open a public hearing and receive public testimony. At the end of testimony, Council will close the public hearing and direct tabulation of assessment ballots submitted and not withdrawn to determine whether there is a majority protest against the assessment. A majority protest exists if the ballots in opposition to the proposed assessment exceed the ballots in support of the proposed assessment, weighted by the amount each owner will pay. If there is no majority protest, Council may adopt a resolution declaring the results of the majority protest proceedings and renewing the DSPBID.
FINANCIAL SUMMARY
The Management District Plan requires local governmental agencies, including the City of Stockton, to pay assessments for special benefits conferred to their property within the boundaries of the DSPBID, pursuant to Article XIIID of the State of California Constitution.
The annual assessment total for the City-owned property within the proposed district is $325,653.53, and is broken down as follows:
|
Entity |
Assessment |
Account Number |
Fund |
|
City of Stockton |
$237,003.14 |
010-0131-510 |
General Fund |
|
Parking Authority |
$87,977.17 |
418-4010-572 |
Parking |
|
Successor Agency |
$673.22 |
633-7310-510 |
Successor Agency |
|
Total |
$325,653.53 |
|
|
The Resolution of Intention adopted on May 23, 2017, authorized the City Manager to execute the property owner’s assessment ballot for all property owned by the City and proposed to be assessed, in favor of the formation of the DSPBID and the assessment.
The assessment will continue for a period of ten (10) years. Annual assessments may increase no more than 5% per year, consistent with the increase in consumer price index (CPI) and increases in program costs. The determination of annual adjustments in assessment rates will be subject to the review and approval of the Owner’s Association of the Downtown Stockton Alliance.
Attachment A - 1994 PBID Act