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ADOPT A RESOLUTION TO APPROVE THE DOWNTOWN STOCKTON PROPERTY AND BUSINESS IMPROVEMENT DISTRICT 2023 ANNUAL OPERATING BUDGET AND 2022 ANNUAL REPORT
recommended action
RECOMMENDATION
It is recommended that the City Council adopt a resolution:
1. Approving the 2022 Annual Report and 2023 Operating Budget for the Downtown Stockton Property and Business Improvement District; and
2. 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 Downtown Stockton Property and Business Improvement District (DSPBID) is one of the oldest Property and Business Improvement Districts in California, having been established in 1996. The City executed a contractual agreement with Downtown Stockton Alliance (DSA), a non-profit corporation, to manage and operate the DSPBID as its owners’ association for ten years beginning January 1, 2018; this includes developing the goals and preparing and managing the DSPBID’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 2023 Operating Budget and the 2022 Annual Report for the DSPBID 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 and business 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 within the DSPBID area. The City Council authorized an agreement with the DSA to administer the DSPBID 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. 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.
Present Situation
Property owners within the area of the DSPBID pay district assessments directly to the County as part of their annual tax bill. The total assessments paid during 2023 by property owners directly to the County will be $1,199,081. The DSA will administer these funds on behalf of the DSPBID as it has 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 DSPBID based on the number, size, and location of City-owned properties within the district like any other property owner. The City’s contribution is estimated at $354,345, including Parking Authority and the two remaining Successor Agency properties.
In 2022, the DSA accomplished the following:
• Launched a new DSA website
• Moved from the B&M Building to the Historic Belding Building
• Expanded the Safety Ambassador Program
• Hired two new marketing staff for photo and film content for social media
• Partnered with the San Joaquin County District Attorney’s office for National Night Out
• Participated in toy drives for Hell’s Angels, Parents by Choice, and the TLC School for Homeless Children Foundation
• Installed the first mural in the new series of murals, “Historic Postcards of Downtown”
• Completed participation in the International Economic Development Council pandemic impact study
• Partnered with the City of Stockton to launch the new Business Façade Improvement program
The DSA continued operating the extremely successful Portable Bathroom Shower Unit (PBSU) program at St. John’s Church. This program gives hope to the underserved community by providing a dignified place for personal hygiene, funded by Emergency Solutions Grant pandemic relief (ESG-CV) funding from the City of Stockton. The PBSU served more than 400 individuals and provided 6,541 showers.
After completion in April 2022, the DSA held a dedication ceremony for the new Diversity Plaza, providing a new space for individuals to gather. The project activated the area behind the County Courthouse previously referred to as Hunter Square, which had mainly gone unused. Diversity Plaza celebrates Stockton’s diversity and includes two statues, a mural, shade, seating, and flags promoting unity, equity, pride, inclusion, diversity, and respect.
The DSA received a $100,000 American Rescue Plan Act (ARPA) grant from the City for marketing downtown events and job listings. They expanded their marketing efforts by adding two additional marketing team members. They continued the Doorways to Downtown series featuring eight downtown businesses, 12 episodes of the monthly Talk to Downtown live streaming, the 7th episode of Spirits of Downtown, and featured social media promotions to give away tickets to events such as Ports and Kings games. The increased efforts resulted in growth in the DSA’s social media audience for the second consecutive year. Followers increased by 1.6% on Facebook, a 6.3% growth on Twitter, 8.2% on Instagram, and 11.1% on YouTube views.
During 2022 a trend was observed in the Downtown business community with a growing number of retail, salon, and restaurant businesses opening. There were 50 property sales and at least 417 businesses in the District. Maintenance of the District continued with 234 graffiti removals, 14,907 trash bags removed, 230 service calls, and 155 shopping carts collected. The DSA hosted five events, including the Mid-Autumn Moon Festival, Full Moon Riders, Janet Leigh Plaza music series, the Jazz in the Plazz music series, and National Night Out. The DSA supported Stockton Flavor Fest through infrastructure improvements and banner replacement downtown.
The DSA’s 2023 budget is $5,325,873. The DSA budget has significantly increased from 2022 with discretionary funds primarily due to ARPA grants received from the City and San Joaquin County, two Community Development Block Grants received from the City and San Joaquin County, an Emergency Solutions Grant from the City, and a new program with the Lodi Ambassadors. The DSA dedicates a significant amount of its assessment budget to economic development and improvement projects, maintenance and cleaning, advertising and marketing, safety, and special events within the District. The remaining budget goes to advocacy, administration, and education/networking.
Below are a few of the DSA 2023 goals:
• Manage City of Stockton ARPA Business Façade Improvement grant.
• Manage San Joaquin County ARPA grant for bus passes, parking passes, chamber membership reimbursement, window repair reimbursement, banners program, window wraps, and trash enclosures.
• Continue operating and maintaining the Portable Bathroom and Shower unit at St. John’s Church through June 2023.
• Expand the outreach of the Safety Ambassador program and collaboration with the Stockton Police Department.
• Continue the webinar series Talk to Downtown, Spirits of Downtown, and Doorways to Downtown.
• Continue to grow and improve the DSA’s social media presence.
• Continue to advocate for property owners; recruit, support, and promote downtown businesses.
For the calendar year 2023, the projected annual expenditures for the Downtown Stockton Management District are $4,856,289.
Staff recommends the adoption of the attached Resolution, which approves the proposed 2023 Annual Operating Budget (Exhibit 1 to the Resolution) and the 2022 Annual Report (Exhibit 2 to the Resolution) for the DSPBID.
FINANCIAL SUMMARY
Property owners pay the DSPBID assessments directly to the County as part of their tax bill. The estimated assessment amount paid in 2023 by all property owners will be $1,199,081.
The City of Stockton, Parking Authority, and Stockton Redevelopment Agency pay an assessment on property owned within the DSPBID. 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 $354,345 and is broken down as follows:
|
Entity |
Assessment |
Account Number |
Fund |
|
City of Stockton |
$255,594 |
2010-016-670001-100-000-10-20-000-000- |
General Fund |
|
Parking Authority |
$98,001 |
6030-400-670001-630-000-00-60-000-000- |
Parking |
|
Successor Agency |
$750 |
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 DSPBID.