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ADOPT A RESOLUTION TO APPROVE THE MIRACLE MILE COMMUNITY IMPROVEMENT DISTRICT PROPOSED 2023 ANNUAL OPERATING BUDGET AND 2022 ANNUAL REPORT
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RECOMMENDATION
It is recommended that the City Council adopt a resolution:
1. Approving the proposed 2023 Operating Budget for the Miracle Mile Community Improvement District;
2. Approving the 2022 Annual Report for the former Miracle Mile 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 Miracle Mile Property and Business Improvement District (MMPBID) was originally formed by the Stockton City Council in 2007 pursuant to the Property and Business Improvement District Law of 1994 (“PBID Law”). The MMPBID was operated by the Miracle Mile Improvement District, a non-profit corporation and the MMPBID’s owners’ association. Since its inception, the MMPBID had been renewed and ultimately expired on December 31, 2022. On January 1, 2023, the Miracle Mile Community Improvement District (MMCID) was formed. A Community Improvement District is a flexible financing tool to allow business districts mechanisms to establish innovative ways of attracting, retaining, and expanding their businesses to remain competitive with other areas of Stockton. The City Council executed an agreement with a non-profit corporation called the Miracle Mile Community Improvement District (the “Owners’ Association”) to manage the MMCID as its owners’ association, with responsibility for district assessments and delivery of enhanced services, for a 20-year term, beginning January 1, 2023, through December 31, 2042. It is recommended that Council approve the MMCID 2023 Operating Budget and the MMPBID 2022 Annual Report (Exhibits 1 & 2 to the proposed resolution, respectively).
DISCUSSION
Background
Prior to January 1, 2023, the area within the MMCID was part of the MMPBID. On March 22, 2022, City Council revised Stockton Municipal Code Chapter 3.96 concerning the formation of Community Improvement Districts (CID) (Attachment A - SMC Ordinance No. 2022-03-22-1211). The City’s CID ordinance creates additional and alternative assessment district procedures to those provided under the PBID Law. A CID is a community-driven partnership with the City to improve the quality of life in neighborhoods by acting as a catalyst for creating private-sector, self-governed management districts. These districts provide the resources for enhanced maintenance, safety, marketing, management, and advocacy services through property assessments. On September 13, 2022, City Council approved the formation of the MMCID, (Attachment B- Resolution No. 2022-09-13-1602), with a term of twenty years.
On December 6, 2022, City Council designated the Owners’ Association to operate the MMCID with responsibility for managing the community improvement district assessments and delivery of enhanced services. (Attachment C- Resolution 2022-12-06-1205).
The MMCID includes 155 parcels located along the Miracle Mile (Pacific Avenue) and Harding Way (Attachment D - MMID Boundary Map). The MMCID will continue to operate similarly to the MMPBID and provide supplemental services to Miracle Mile and Harding Way commercial corridors.
Services provided within the boundaries of the MMCID include enhanced maintenance, public security and safety, marketing and promotions, and advocacy and management. Services to be provided within the MMCID are allocated within four (4) Benefit Zones. Since the level of service differs between the four benefit zones, the assessment rate varies by zone to reflect the level of service provided: Zone 1 ($0.13 per sf), Zone 2 ($0.07 per sf), Zone 3 ($0.11 per sf) and Zone 4 ($2.00 per linear frontage linear ft).
Present Situation
The agreement executed between the City of Stockton and Owners’ Association stipulates that in year one of the MMCID, the Owners’ Association shall submit the final annual report for the now-expired MMPBID and newly formed MMCID district goals on or before March 1, 2023. Subsequent yearly budgets shall be submitted on or before January 1st for years 2-20. The budget is subject to Council review and approval. The 2023 MMCID budget shows $230,500 funded through property assessments and $204,389 in other income for a total budget of $434,889.
Below are some of the accomplishments of the MMPBID’s owners’ association in 2022:
• MMCID Formation: Establishment of the 501©3 non-profit organization, City Council approval and agreement execution with the City for the administration of the MMCID.
• Partnered with University of the Pacific (UOP) to promote the Miracle Mile as a destination for students and staff, including a welcome week with giveaways and music during the first week of the school year.
• Successfully advocated for $20 million investment from the State through Assemblyman Villapudua.
• Events: Stockton Cruise Night every third Thursday from May - October, Market on the Mile every second and fourth Thursday May- October, Pop-Out night in May, the Miracle Mile Trick or Treat night, Boo-Tique Market in October, and the Holiday Sip & Shop after Thanksgiving. The Miracle Mile used a $100,000 American Rescue Plan Act grant from the City to host the second annual En Blanc event in June, as well as the Miracle Mile Car Show and Concert.
• A 15% increase in followers on Instagram and 360 new followers on Facebook.
• Collaborated with Hammer Head Security, Stockton Police Department and merchants; 1,820 total hours of patrol.
• Garbage collection seven days a week for a total of 9,621 bags removed, 552 hours of hand-watered labor for the trees and plants completed weekly, and pressure washing of curbs/sidewalks completed monthly for a total of 502 hours.
In 2023, MMCID will continue the efforts of MMPBID 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 2023 goals include implementing pedestrian safety and advocacy projects, to continue strengthening the partnership between the Miracle Mile and UOP, walkability enhancements, and a continued focus on marketing. Further, the MMCID will work with the City, Caltrans, and a committee formed by Assemblyman Carlos Villapudua with the goal of aligning grant funding with established MMCID goals. A few of the district objectives for 2023 are listed below:
• Retrofit of existing banner poles
• New co-branded light pole banners
• Re-branding marketing collateral
• Signature events: En Blanc, Car Show & Concert, and Holiday Sip & Shop
The MMCID will also participate in the San Joaquin Council of Governments (SJCOG) launch of the Stockton Mobility Collective project. This project aims to improve transportation in Stockton through a clean and affordable means. SJCOB has partnered with the University of Pacific to locate pilot electric bikeshare stations and has identified a location on the Miracle Mile.
FINANCIAL SUMMARY
The MMCID assessments are paid directly to the County by property owners as part of their tax bill. The Owners’ Association, as the administrator of the improvement district, will provide direct billing to the County in order to receive these revenues. The City will not act as an intermediary to request payments on behalf of the MMCID.
The total amount of the assessment paid during 2023 by property owners will be $230,500. The annual assessment for City-owned property within the MMCID is $21,639.84 and is budgeted in and paid from the Administrative Services General Fund, General Administration Division, Tax Collection Costs program account.
For the calendar year 2023, the projected annual operating budget for the MMCID is $434,889. The MMCID anticipates $434,889 in expenditures, which includes expenses for management services, operational costs, professional services, maintenance, marketing, public safety, and security. Total revenues projected include the $230,500 assessment income and $204,389 in other income from non-assessment income, that includes events, grants, and promotions.
Attachment A - SMC Ordinance No. 2022-03-22-1211
Attachment B - Resolution No. 2022-09-13-1602
Attachment C - Resolution No. 2022-12-06-1205
Attachment D - MMCID Boundary Map