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MIRACLE MILE IMPROVEMENT DISTRICT PROPOSED 2021 ANNUAL OPERATING BUDGET AND 2020 ANNUAL REPORT
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RECOMMENDATION
It is recommended that the City Council adopt a resolution:
1. Approving the proposed 2021 Operating Budget for the Property Based Improvement District commonly known as the Miracle Mile Improvement District.
2. Approving the 2020 Annual Report for the Miracle Mile Improvement District.
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 Miracle Mile Improvement District (MMID) is a Property Based Improvement District initially formed in 2007. The MMID Property Based Improvement District (PBID) was renewed for a five-year term effective January 1, 2018 and continuing through December 21, 2022. The City Council executed an agreement with the MMID to manage and operate the Miracle Mile PBID for five years beginning on January 1, 2018; this includes developing the workplan and goals for each year and preparing and managing the MMID’s budget.
The Council is being asked to approve the 2021 Operating Budget and 2020 Annual Report for the MMID. The 2021 Operating Budget and 2020 Annual Report for the Miracle Mile Improvement District are attached as Exhibits 1 and 2 to the Resolution, respectively.
DISCUSSION
Background
The PBID is a flexible financing tool for creating private-sector, self-governed management districts. The MMID is one of two existing PBIDs within Stockton. The second is the Downtown Stockton Alliance. The MMID was established on July 17, 2007, with a five-year term expiring December 31, 2012. The MMID was renewed by Council for an additional five years beginning January 1, 2013, and expired December 31, 2017. The MMID PBID was renewed for another five-year term effective January 1, 2018 and shall continue through December 31, 2022. 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 three (3) Benefit Zones as described below:
Zone 1: Consists of parcels on Pacific Avenue south of Regent Court to Harding Way
Zone 2: Consists of parcels along Pacific Avenue from Regent Court to Alpine Avenue
Zone 3: Consists of parcels along Harding Way between N. Lincoln and El Dorado Street
Since the level of service differs between the three benefit zones, the assessment rate varies by zone to reflect the level of service provided: Zone 1 ($0.1276 per sf), Zone 2 ($0.0622 per sf) and Zone 3 ($0.1021 per sf).
The City Council authorized an agreement with the MMID for the administration of the Miracle Mile PBID on December 28, 2017, with an effective date of January 1, 2018, and shall remain in effect until December 31, 2022. 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 February 1st of each year. The budget is subject to Council review and adoption. The 2021 MMID budget shows $221,380 funded through property assessments and $79,516 in other income for a total budget of $300,896.
The MMID Management District Plan dictates that funds may only be spent on improvements and activities provided in the Zone from which the funds were derived, as shown in the budget allocation chart below.
|
|
Enhanced Maintenance |
Safety & Security |
Marketing & Promotions |
Admin. & Advocacy |
Contingency/ Reserve |
Total |
|
Zone 1 |
$87,525 |
$38,130 |
$21,255 |
$46,938 |
$3,213 |
$197,061 |
|
Zone 2 |
$14,614 |
$19,558 |
$671 |
$9,072 |
$1,246 |
$45,161 |
|
Zone 3 |
$18,060 |
$24,212 |
$824 |
$10,529 |
$1,542 |
$55,167 |
|
Total |
$120,199 |
$81,900 |
$22,750 |
$66,539 |
$6,001 |
*$297,389 |
*Rounded
Below are some of the MMID accomplishments in 2020:
• Events: Through the pandemic, events were canceled, however the MMID managed to start a new Farmers Market in June that ran through November 2020 and a Canned Food Drive in partnership with Visit Stockton that collected 4,432 pounds of food and $9,618. These events all promoted safe social distancing and mask wearing.
• Marketing: MMID made strides to build Instagram followers which saw a 148% increase and improved engagement from the public via social media campaigns, while adding 807 new followers on Facebook. The “I am Small Business” campaign highlighted more than 40 locally-owned businesses.
• Pandemic Merchant Support: Created a COVID-19 website for distribution of support materials, grant, loans, state mandates, etc.; a MMID weekly e-newsletter sharing updates; and distribution of PPE through a partnership with the City of Stockton.
• Improvement Projects: Completed and installed new light pole banners throughout the MMID in partnership with University of the Pacific, new wayfinding & parking signs in coordination with the City of Stockton, Harding Way sidewalk, curbs, gutters, and driveway replacements, and installed outdoor patio dining equipment for 27 merchants from the City of Stockton grant funds.
During 2021, 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. Some of the 2021 goals are listed below:
• New lamppost banner installation in Spring 2020.
• Establish an engineering plan proposal for submittal to the City of Stockton for review and approval to begin the Lighting Project to string lights across Pacific Avenue.
• Make positive strides toward the Harding Way Sidewalk & Driveway Improvement projects.
• Complete general revitalization efforts by replacement of parking & wayfinding signs and replanting of various landscaping planters throughout the MMID.
• Improve stakeholder and community engagement through the promotion of merchant specific events & promotions, block ambassador program advancement, MMID mixers and newsletter.
The MMID anticipates $300,896 in expenditures, which include expenses for management services, operational costs, professional services, maintenance, marketing, public safety, and security.
FINANCIAL SUMMARY
The MMID assessments are paid directly to the County by property owners as part of their annual tax bill. The funds collected by the County are transferred to the City and deposited in Assessments Miracle Mile PBID Miscellaneous Agency Fund, Deposits and Other Liabilities account (0000-000-210090-780-000-00-00-000-000-HTE reference: 689-000-237).The funds are then transferred to the MMID as administrator of the improvement district.
The total amount of the assessment paid during 2021 by property owners will be $221,380. The annual assessment for City-owned property within the MMID is $20,271 and is budgeted in and paid from the Administrative Services General Fund, General Administration Division, Tax Collection Costs program account (2010-016-670001-100-000-10-20-000-000-HTE reference: 010-0131-510.40-22).
Attachment A - MMID Boundary Map