title
ADOPT A RESOLUTION TO APPROVE THE DOWNTOWN STOCKTON PROPERTY AND BUSINESS IMPROVEMENT DISTRICT 2023 ANNUAL REPORT, FISCAL YEAR 23/24 ASSESSMENTS, AND PROPOSED 2024 OPERATING BUDGET
recommended action
RECOMMENDATION
It is recommended that the City Council adopt a resolution:
1. Approving the 2023 Annual Report for the Downtown Stockton Property and Business Improvement District; and
2. Approving the Proposed 2024 Operating Budget and Property Assessments for the Downtown Stockton 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.
body
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 Annual Report, Fiscal Year 2023/2024 Assessments, and the 2024 Operating Budget for the DSPBID are included as Exhibits 1, 2, and 3 to the Resolution, respectively.
DISCUSSION
Background
The Property and Business Improvement District Law of 1994 authorizes local government entities to establish property and business improvement districts - a flexible financing tool for creating private-sector, self-governed management districts by levying new or increased assessments for properties and businesses within the district. These districts provide the means for enhanced maintenance, safety, marketing, management, and advocacy services.
The Downtown Stockton Property and Business Improvement District (DSPBID) was created in 1996 and the Downtown Stockton Alliance (DSA), consisting of the district’s “owner’s association”, was incorporated in 1996 as a 501(c)(6) to manage the DSPBID.
In 2017, the City Council adopted the Downtown District Management Plan and authorized an agreement with the DSA to manage the DSPBID for a ten-year term beginning January 1, 2018, through December 31, 2027.
Pursuant to the Property and Business District Law of 1994 and adopted Management Plan, DSA is required to submit its annual report and proposed budget to the City each year by February 1st and report on the improvements, maintenance, and activities supported by the assessments, and is subject to Council approval.
Present Situation
Pursuant to the Management Plan, the DSA has submitted its 2023 Annual Report. During 2023, DSA continued to be a key partner in business support and economic recovery efforts in the aftermath of the pandemic.
Below are some of the DSPBID 2023 accomplishments:
• Began operations out of the Belding Building.
• Continued its partnership with San Joaquin County in administering various ARPA-funded programs to assist private small business owners, private property owners, supplementing parking for public events, and more.
• Partnered with the City of Stockton to launch and administer the Business Façade Grant Program, assisting more than 80 commercial property owners.
• Co-hosted various cultural and community events, including the Annual Mid-Autumn Festival, Annual National Night Out, Annual Christmas at the Children’s Museum, and the new Music under the Marquee.
• Created a commercial and increased social media content, which increased DSA’s audience and helped promote Downtown Stockton’s venues, landmarks, businesses, and events.
• Continued production of 12 new episodes for the video series - Talk to Downtown, Doorways to Downtown, and Spirits of Downtown - featuring guest speakers and highlighting distinguished district businesses and buildings.
DSA’s proposed 2024 operating budget includes more than $1.2 million from property assessments and more than $1.35 million in other non-assessment income. The DSPBID assessments are paid to the County by the private property owners located within the district as part of their annual tax bill, while the City pays its assessments directly to the DSA. The total assessments to be paid in 2024 are $1,235,053, which is accounted for in DSA’s proposed operating budget and will be administered accordingly.
In 2024, the DSA is looking to continue its partnership with the City of Stockton and San Joaquin County in assisting with economic recovery and continuing its efforts in being the stewards of Downtown Stockton’s growth and success. These activities include the management of the Downtown Ambassador Program, overseeing maintenance and cleanup within the Downtown, partnering with local organizations to host important cultural and community events, promoting available job opportunities within the district, and building upon previous years success in reaching new audiences through various marketing and outreach efforts that promote Downtown Stockton as a hub for entertainment, shopping, and community.
Staff recommends the adoption of the attached Resolution to approve the 2023 Annual Report (Exhibit 1), Fiscal Year 2023/2024 Assessments (Exhibit 2), and the proposed 2024 Operating Budget (Exhibit 3) for the Downtown Stockton Management District.
FINANCIAL SUMMARY
The DSPBID’s operating budget consists of the property assessments and other sources. The property assessments are paid directly to the County by private property owners as part of their tax bill then transferred to the DSA, while the City pays its assessments directly to the DSA. The estimated income from all property assessments to be paid to the DSA in 2024 is $1,235,053.
The City of Stockton, Parking Authority, and Successor Agency (formerly known as the Stockton Redevelopment Agency) pays property assessments to the DSA for the respective parcels owned within the Downtown Stockton Management District. With the dissolution of the Stockton Redevelopment Agency in 2012, under Assembly Bill X1 26 (AB 26), the assessments on the Agency-owned property were transferred to the Stockton Successor Agency, which is overseen by the Stockton City Council.
The annual assessments for the City-owned, Parking Authority-owned, and Successor Agency-owned parcels within the DSPBID is $364,975 demonstrated in the table below:
|
Owner / Entity |
Fund |
Assessment Amount |
|
City of Stockton |
General Fund |
$ 263,262 |
|
Parking Authority |
Parking |
100,941 |
|
Successor Agency |
Successor Agency |
772 |
|
Total: |
|
$ 364,975 |
There is no financial impact other than the assessments due from City-owned properties, which totals $364,975.