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APPROVE DOWNTOWN STOCKTON ALLIANCE PROPOSED 2022 ANNUAL OPERATING BUDGET, ASSESSMENT, AND 2021 ANNUAL REPORT
recommended action
RECOMMENDATION
It is recommended that the City Council adopt a resolution to:
1. Approve the 2022 Operating Budget and Assessment for the Property and Business Improvement District known as Downtown Stockton Alliance, a non-profit corporation, which operates the Downtown Stockton Management District;
2. Approve the 2021 Annual Report; and
3. Authorize 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 Alliance (“DSA”) is one of the oldest Property-Based Improvement Districts (PBID) in California and has promoted and maintained the Downtown Stockton Business District since 1996. The City executed a contractual agreement with the Alliance to manage and operate the Downtown Stockton PBID for ten years beginning January 1, 2018; this includes developing the goals and preparing and managing the DSA’s annual budget. It is required by contract that the DSA provide the City Council with its operating budget and the annual report of accomplishments for approval each year. The 2022 Operating Budget and the 2021 Annual Report for the DSA are included as Exhibits 1 and 2 to the Resolution, respectively.
DISCUSSION
Background
The Property and Business Improvement District Law of 1994, Streets and Highways Code section 36600 et seq., authorizes cities and counties to establish property and business improvement districts to promote economic revitalization and physical maintenance. A property-based improvement district is a flexible financing tool for creating private-sector, self-governed management districts. These districts provide the means for enhanced maintenance, safety, marketing, management, and advocacy services.
The DSA was incorporated in 1996 as a 501(c)(6) corporation to promote and maintain Downtown Stockton. Operations began in January 1998, with an annual assessment of property owners. The City Council authorized an agreement with the DSA to administer the DSA PBID effective January 1, 2018, and it shall remain in effect until December 31, 2027. In accordance with Property and Business District Law of 1994 and pursuant to the agreement, DSA is required to administer funds consistent with the adopted Management District Plan.
Present Situation
In accordance with Property and Business District Law of 1994, the DSA’s agreement with the City requires DSA to administer funds consistent with the adopted Downtown Stockton Management Plan. The Management Plan requires the DSA to submit its budget and annual report each year to the City by February 1st. The budget is subject to Council approval.
The Downtown Stockton Management District assessments are paid directly to the County by property owners as part of their annual tax bill. The total assessment paid during 2022 by property owners directly to the County will be $1,161,771. The DSA will administer these funds on behalf of the Downtown Stockton Management District as in the past. The assessment funds are collected by the County and will transfer directly to the DSA.
The City makes an annual contribution to the DSA’s PBID based on the number, size, and location of City-owned properties within the DSA’s PBID and the annual assessment rates. The City’s contribution is estimated to be $344,120, including Parking Authority and the two remaining Successor Agency properties.
In 2021, the DSA returned to the office after months of working at home as a result of the pandemic and continued to keep the Downtown clean and safe. DSA also accomplished the following:
• Participated in the City’s Investor Summit with 200 attendees interested in downtown opportunities.
• Launched Tuesday night music series in Janet Leigh Plaza to bring activity and live music to the Downtown area and businesses.
• Implementation of “Doorways to Downtown” to showcase Downtown businesses.
• Introduced “vlogs” to highlight life in Downtown.
• Partnered with Parent’s by Choice, One TLC School for Homeless Children, and the Hell’s Angels in their respective toy drives to purchase gifts for underserved children during the holiday season.
• Partner in the Relief Across Downtown (RAD) program as a part of the pandemic recovery efforts to promote and offer a dollar-for-dollar match gift card at participating merchants.
The DSA began an extremely successful program launching the operation of a Portable Bathroom Shower Unit (PBSU) at St. John’s Church. This program gives hope to the underserved community by providing a dignified place for personal hygiene. The PBSU serves on average 40 users per day. Partner organizations provide additional services such as clothing, COVID-19 testing and vaccinations, and laundry services on site. After implementing the PBSU the DSA began to provide sandwiches three days a week. The program has witnessed a positive behavior change in those served, and additional services have been referred to individuals to better themselves.
In February of 2021, after completion, the DSA held a dedication ceremony for Chung Wah Lane Chinese Plaza attended by hundreds of community members, including dignitaries. This 52-year-old historic plaza is now revived and active, displaying 200-foot dragons inlaid one rock at a time in the ground with vibrant colors and Foo Dogs guarding the entrances. In September, DSA held a Mid-Autumn Festival with live performances, food, and mooncakes.
The circumstances from COVID-19 recovery meant acclimating to challenges and focusing on digital marketing with consistent scheduling, giveaway contests, and video content. The DSA initiated Instagram Reels as a starting point for downtown stories highlighting content to assist businesses and inform the community about events and announcements. Reels were successful month-to-month, with the highest reel reaching over 14,000 views. Social Media platforms experienced growth in 2021, with Instagram reaching over 10,000 followers. As a 2021 goal, DSA promoted their YouTube channel by capturing screenshots from videos, starting a trend, and noticed more engagement to revitalize the channel up 49.5%.
Recovery is present in Downtown with 18 new businesses, the sale of 48 properties, and at least 423 businesses in the District. Maintenance of the District continued with 276 graffiti removals, 22,525 trash bags removed, 1,243 service calls, and 720 shopping carts collected. The DSA hosted their first large-scale in-person event since 2019, celebrating National Night Out in 2021. The event was bursting with local vendors, music, and activities with remarkable community attendance.
The DSA’s 2022 budget is $1,784,749. The DSA dedicates a significant amount of its budget to economic development and improvement projects, maintenance and cleaning, advertising and marketing, safety, and special events within the District. The DSA spends its budget balance on advocacy, administration, and education/networking.
Below are a few of the DSA 2022 goals:
• Partner with the City on the beautification project of Hunter Square to create Diversity Plaza
• Continue operation and maintenance of the Portable Bathroom & Shower unit at St. John’s Church
• Launch a new website in Spring 2022
• Restructure and promote the Downtown Stockton Enterprise Loan Fund program
• Continue hosting music in Janet Leigh Plaza and Full Moon Riders
• Expand the outreach of our Safely Ambassador program and partnership with Stockton Police Department
• Support and promote local businesses Downtown and advocate for property owners
• Continue with the digital promotion of businesses and properties through webinar series, reels, and YouTube channel content
For the calendar year 2022, the projected annual expenditures for the Downtown Stockton Management District are $1,752,749. In addition to the $1,161,771 assessment, $622,978 in marketing and special events, security contracts, outside service contracts, advertising, and miscellaneous revenues are projected for total revenues of $1,784,749.
Staff recommends the adoption of the attached Resolution, which approves the proposed 2022 Annual Operating Budget (Exhibit 1 to the Resolution) and the 2021 Annual Report (Exhibit 2 to the Resolution) for the Downtown Stockton Management District.
FINANCIAL SUMMARY
The Downtown Stockton Management District assessments are paid directly to the County by property owners as part of their tax bill. The estimated assessment amount to be paid in 2022 by property owners directly to the County will be $1,161,771. This estimate includes assessment charges to City-owned properties within the DSA PBID of $344,120.
The City of Stockton, Parking Authority, and Stockton Redevelopment Agency pay an assessment on property owned within the Downtown Stockton Management District. With the dissolution of the Stockton Redevelopment Agency under Assembly Bill X1 26 (AB 26), the assessments on the Agency-owned property were transferred to the Stockton Successor Agency. The annual assessment total for the City-owned property within the District is $344,120 and is broken down as follows:
|
Entity |
Assessment |
Account Number |
Fund |
|
City of Stockton |
$248,245 |
2010-016-670001-100-000-10-20-000-000- |
General Fund |
|
Parking Authority |
$95,147 |
6030-400-670001-630-000-00-60-000-000- |
Parking |
|
Successor Agency |
$728 |
6000-000-670001-700-000-10-60-000-000- |
Successor Agency |
There is no financial impact other than the assessments due on City-owned properties within the DSA PBID.