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Agenda packet

El Cajon City Council
February 13, 2024

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Agenda packet
Meeting
February 13, 2024
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El Cajon City Council
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2
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Text extracted from the city's file for reading and search. Open the original on www.elcajon.gov. That file is the official record.

Time and Location
2nd and 4th Tuesday of each month. 3:00 PM
Council Chambers
200 Civic Cent
er Way
El Cajon, CA 92020
Watch Online
elcajon.gov/videostreaming
or Facebook Live (comments are not monitored)
In-Person Comments
M
embers of the public may address the City Council/Agency Members on any item listed on the agenda, or on matters which are not listed on the agenda but are within the subject matter jurisdiction of the City Council, Housing Authority and Successor Agency to the El Cajon Redevelopment Agency.

Public comments are limited to three (3) minutes per person, per agenda item.

CLICK HERE for additional instruction on in-person comments.

Written Comments
Comments must be emailed to
[email protected] or mailed to the City Clerk at
200 Civic Center Way, El Cajon, CA 92020 and received by 4:00 pm the day prior to the City Council meeting for prompt distribution. Written public comments will be recorded in the public record and will be provided to the City Council in advance of the meeting for review.

Listening Devices and other Accomodations
ALDs are available from the City Clerk’s offi
ce. As required by the Americans
with Disabilities Act (ADA), requests for reasonable accommodations to facilitate meeting participation will be provided, please contact the City Clerk’s office at least two (2) working days prior to the meeting at 619.441.1763.

For more information, please contact the City Clerk’s office at 619.441.1763.

Business hours: Monday-Thursday, 7:30 a.m. to 5:00 p.m., and alternating Fridays from 8:00 a.m. to 5:00 p.m.

SIGN UP TO RECEIVE

FUTURE AGENDAS
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CITY COUNCIL

HOUSING AUTHORITY AND

SUCCESSOR AGENCY TO THE EL CAJON

REDEVELOPMENT AGENCY

Council Chamber
200 Civic Center Way
El Cajon, CA 92020
Agenda
FEBRUARY 13, 2024, 3:00 p.m.

Bill Wells, Mayor Graham Mitchell, City Manager
Steve Goble, Councilmember Vince DiMaggio, Assistant City Manager Gary Kendrick, Councilmember Morgan Foley, City Attorney Michelle Metschel, Councilmember Angela Cortez, City Clerk Phil Ortiz, Deputy Mayor

CALL TO ORDER: Mayor Bill Wells

ROLL CALL: City Clerk Angela Cortez

PLEDGE OF ALLEGIANCE TO THE FLAG AND MOMENT OF SILENCE

POSTINGS: The City Clerk posted Orders of Adjournment of the January 23, 2024, Meeting and the Agenda of the February 13, 2024, Meeting in accordance to State Law and City Council/Housing Authority/Successor Agency to the Redevelopment Agency Policy.

PRESENTATIONS:

Guinness World Record Attempt

AGENDA CHANGES:

~ Valley of opportunity
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CONSENT ITEMS:

Consent Items are routine matters enacted by one motion according to the RECOMMENDATION listed below. With the concurrence of the City Council, a Council Member or person in attendance may request discussion of a Consent Item at this time.

1. Minutes of the City Council/Housing Authority/Successor Agency to the El Cajon Redevelopment Agency Meeting

RECOMMENDATION:

That the City Council/Housing Authority/Successor Agency to the El Cajon Redevelopment Agency approves Minutes of the January 23, 2024, Meeting of the El Cajon City Council/Housing Authority/Successor Agency to the El Cajon Redevelopment Agency.

2. Warrants
RECOMMENDATION:

That the City Council approves payment of Warrants as submitted by the Finance Department.

3. Approval of Reading Ordinances by Title Only
RECOMMENDATION:

That the City Council approves the reading by title and waives the reading in full of all Ordinances on the Agenda.

4. FY 2022 Urban Area Security Initiative (UASI) Grant Funding Modification for Hi-Lo Sirens

RECOMMENDATION:

That the City Council adopts the next Resolution, in order, authorizing the City Manager or designee to accept and appropriate the modification to the FY 2022 UASI Grant funds in the amount of $18,753, and to execute any grant documents and agreements necessary for the receipt and use of these funds.

5. City Attorney Staff Members

RECOMMENDATION:

That the City Council adopts the next Resolution, in order, appointing the professional staff of the City Attorney’s Department effective February 13, 2024.

6. Authorization to Submit an Application for the San Diego River Conservancy Direct Grant Program

RECOMMENDATION:

That the City Council adopts the next Resolution, in order, to authorize the City Manager, or approved designee, to submit an application for the San Diego River Conservancy (SDRC).

7. Purchase of Polaris Vehicles

RECOMMENDATION:

That the City Council adopts the next Resolution, in order, authorizing the purchase from Polaris Sales, Inc. of two Ranger XP 1000 Polaris in the total amount of $45,000 utilizing the SB 1383 CalRecycle grant funds.

8. Extension of Automated License Plate Reader Cameras Agreement

RECOMMENDATION:

That the City Council adopts the next Resolution, in order, to enter into a new agreement with Flock Group Inc. (FGI), for an Automated License Plate Reader (ALPR) camera subscription/implementation system in the amount of $100,000, for the initial one-year term and four additional one-year term renewals with such changes as may be approved by the City Manager.

PUBLIC COMMENT:

At this time, any person may address a matter within the jurisdiction of the City Council/Housing Authority/Successor Agency to the El Cajon Redevelopment Agency that is not on the Agenda. Comments relating to items on today’s docket are to be taken at the time the item is heard. State law prohibits discussion or action on items not on the Agenda; however, Council, Authority and Agency Members may briefly respond to statements or questions. An item may be placed on a future Agenda.

WRITTEN COMMUNICATIONS:

PUBLIC HEARINGS:

ADMINISTRATIVE REPORTS:

9. Analysis of the Operations of the Downtown Property Business Improvement District (PBID)

RECOMMENDATION:

Staff recommends that the City Council receives the report and provides appropriate direction to staff.

10. Parks & Recreation Master Plan and 2024-2029 Strategic Plan

RECOMMENDATION:

That the City Council approves:

An update to the Parks & Recreation Master Plan; and1.

The 2024-2029 Parks & Recreation Strategic Plan.2.

11. Award of RFP No. 028-24 – Oakdale Alameda Construction Management Services

RECOMMENDATION:

That the City Council:

Decreases Citywide Street Beautification & Safety Projects (233780PWMP) project budget and related appropriations by $400,000;

1. Increases Oakdale Alameda Gateway Beautification (233785PWCP) project budget and related appropriations by $400,000; and

2. Adopts the next Resolution, in order, to enter into an agreement with Unico Engineering, Inc. (UEI), in an amount not to exceed $550,448.95, effective through December 31, 2024.

3. COMMISSION REPORTS:

ACTIVITIES REPORTS/COMMENTS OF MAYOR WELLS
SANDAG (San Diego Association of Governments) Board of Directors.

12. Council Activity Report

ACTIVITIES REPORTS/COMMENTS OF COUNCILMEMBERS:

13. COUNCILMEMBER STEVE GOBLE
MTS (Metropolitan Transit System Board); East County Advanced Water Purification Joint Powers Authority Board; Chamber of Commerce – Government Affairs Committee; SANDAG – Board of Directors – Alternate; SANDAG Public Safety Committee – Alternate.

14. COUNCILMEMBER GARY KENDRICK
METRO Commission/Wastewater JPA; Heartland Communications; Heartland Fire Training JPA.

15. COUNCILMEMBER MICHELLE METSCHEL
Harry Griffen Park Joint Steering Committee; METRO Commission/Wastewater JPA – Alternate; Heartland Communications – Alternate; Heartland Fire Training JPA – Alternate.

16. DEPUTY MAYOR PHIL ORTIZ

16. DEPUTY MAYOR PHIL ORTIZ
League of California Cities, San Diego Division; East County Economic Development Council; MTS (Metropolitan Transit System Board) – Alternate; East County Advanced Water Purification Joint Powers Authority Board – Alternate; Chamber of Commerce – Government Affairs Committee – Alternate.

JOINT COUNCILMEMBER REPORTS:

GENERAL INFORMATION ITEMS FOR DISCUSSION:

ORDINANCES: FIRST READING

17. Introduction of Ordinance to Amend ECMC Chapter 3.20 – Bidding and Written Contracts

RECOMMENDATION:

That the City Council:

Moves to introduce the next Ordinance, in order; and1.

Directs the City Clerk to read the Ordinance by title only.2.

ORDINANCES: SECOND READING AND ADOPTION

CLOSED SESSIONS:

18. Closed Session - Conference with Real Property Negotiators - pursuant to Government Code section 54956.8:

Property
:

APN 488-242-43-00
405 E. Lexington Avenue

Negotiating Party
:

San Diego Chaldean Community Council
Dr. Noori Barka

City Negotiators
:

City Manager
Assistant City Manager
City Attorney

Under Negotiation
:

Price and terms of payment for lease of property

ADJOURNMENT: The Regular Joint Meeting of the El Cajon City Council/ El Cajon Housing Authority/Successor Agency to the El Cajon Redevelopment Agency held this 13th day of February 2024, is adjourned to Tuesday, February 27, 2024, at 3:00 p.m.

City Council
Agenda Report
Agenda Item 1.

DATE: February 13, 2024
TO: Honorable Mayor and City Councilmembers
FROM: Angela Cortez, City Clerk
SUBJECT: Minutes of the City Council/Housing Authority/Successor Agency to the El Cajon Redevelopment Agency Meeting
RECOMMENDATION:

That the City Council/Housing Authority/Successor Agency to the El Cajon Redevelopment Agency approves Minutes of the January 23, 2024, Meeting of the El Cajon City Council/Housing Authority/Successor Agency to the El Cajon Redevelopment Agency.

Attachments
01-23-24 DRAFT minutes - 3PM

Joint Meeting: El Cajon City Council/Housing Authority/ January 23, 2024 Successor Agency to the Redevelopment Agency - 10 - 3:00 p.m.

JOINT MEETING OF THE

EL CAJON CITY COUNCIL/HOUSING

AUTHORITY/SUCCESSOR AGENCY

TO THE EL CAJON

REDEVELOPMENT AGENCY

MINUTES

CITY OF EL CAJON

EL CAJON, CALIFORNIA

January 23, 2024

An Adjourned Regular Joint Meeting of the El Cajon City Council/Hous ing Authority/ Successor Agency to the El Cajon Redevelopment Agency, held Tuesday, January 23, 2024, was called to order by Mayor/Chair Bill Wells at 3:00 p.m., in the Council Chambers, 200 Civic Center Way, El Cajon, California.

R O L L C A L L
Council/Agencymembers present: Kendrick, Metschel, and Ortiz Council/Agencymembers absent: None
Deputy Mayor/Vice Chair present: Goble
Mayor/Chair present: Wells
Other Officers present: Mitchell, City Manager/Executive Director DiMaggio, Assistant City Manager
Foley, City Attorney/General Counsel
Cortez, City Clerk/Secretary

PLEDGE OF ALLEGIANCE TO THE FLAG led by Mayor Wells and MOMENT OF SILENCE.

POSTINGS: The City Clerk posted Orders of Adjournme nt of the January 9 , 202 4, meeting and the Agenda of the January 23 , 202 4, meeting in accordance with State Law and El Cajon City Council/Housing Authority/Successor Agency to the El Cajon Redevelopment Agency Policy.

The Valley of Opportunity
~ ~ ~
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Joint Meeting: El Cajon City Council/Housing Authority/ January 23, 2024 Successor Agency to the Redevelopment Agency - 11 - 3:00 p.m.

PRESENTATIONS:

 Chamber of Commerce Annual Update

 IRC Leadership Academy – Community Enhancement Presentation

AGENDA CHANGES: None

CONSENT ITEMS: (1 – 5)

MOTION BY WELLS, SECOND BY METSCHEL, to APPROVE Consent Items 1 to 5.

MOTION CARRIED BY UNANIMOUS VOTE.

1. Minutes of El Cajo n City Council/Housing Authority/Successor Agency to the El Cajon Redevelopment Agency Meetings

Approve Minutes of the January 9, 2024, Meeting of the El Cajon City Council/Housing Authority/Successor Agency to the El Cajon Redevelopment Agency.

2. Warrants

Approve payment of Warrants as submitted by the Finance Department.

3. Approval of Reading Ordinances by Title Only

Approve the reading by title and waive s the reading in full of all Ordinances on the Agenda.

4. Updates to City Council Policy A-29

Approve the modifications to City Council Policy A-29.

5. Water Quality Improvements - Trash Capture Device Installation - Project Acceptance

1. Accept the Water Quality Improvements - Trash Capture Device Installation Project, Job No. 193655PWCP, Bid No. 003-24; and

2. Authorize the City Clerk to record a Notice of Completion and release the Bonds in accordance with the contract terms.

Joint Meeting: El Cajon City Council/Housing Authority/ January 23, 2024 Successor Agency to the Redevelopment Agency - 12 - 3:00 p.m.

PUBLIC COMMENT:

Brenda Hammond spoke about the homeless population helping other citizens during the recent rain storm.

WRITTEN COMMUNICATIONS: None

PUBLIC HEARINGS: None

ADMINISTRATIVE REPORTS:

6. Homeless Programs and Services Update

RECOMMENDATION:

That the City Council receives the homeless programs and services report and, if desired, provides fe edback, recommendations, and direction on homeless -related programming and funding.

DISCUSSION

Management Analyst, Deyanira Pelayo, provided detailed information of the Item.

Discussion ensued among Council, Home Start Coordinator, Karina Hernandez, and Staff concerning the following:
 Housing available v. number of individuals needing housing;  Clean-up educational programs;
 Emergency program and monies allocated;
 Cost analysis of the various programs offered by the City;  Explore proactive methods to help homelessness;
 Community expectations for a clean and safe City; and  ECTLC turning El Cajon residents away.

No public comment was received for the Item.

MOTION BY GOBLE, SECOND BY METSCHEL, to ACCEPT the homeless programs and services report.

MOTION CARRIED BY UNANIMOUS VOTE.

Joint Meeting: El Cajon City Council/Housing Authority/ January 23, 2024 Successor Agency to the Redevelopment Agency - 13 - 3:00 p.m.

ADMINISTRATIVE REPORTS: (Continued)

7. Traffic Calming Request for Dorothy Street

RECOMMENDATION:

That the City Council adopts the next Resolution, in order, to:

1. Establish permanent all -way stop signs on Dorothy Street at t he intersections of Bosworth Street and Saddleview Court;

2. Install two speed radar feedback signs along Dorothy Street;

3. Install new roadway striping along the entire length of Dorothy Street from Jamacha Road to the southerly terminus at Shanessey Road to e nhance pedestrian and traffic safety; and

4. Determine that the project is exempt from the California Environmental Quality Act in accordance with State CEQA Guidelines section 15301(c).

DISCUSSION

City Engineer, Mario Sanchez, provided detailed information of the Item.

Discussion ensued among Council and Staff concerning the recommended stops signs and the results of the traffic surveys.

Paul Garibay spoke in support of the staff recommendation and added that more needs to be done on Washington Avenue in regards to speeding vehicles.

MOTION BY ORTIZ, SECOND BY METSCHEL, to ADOPT Resolution No. 008-24 to e stablish permanent all -way stop signs on Dorothy Street at the intersections of Bosworth Street and Saddleview Court; Install two speed radar feedback s igns along Dorothy Street; and Install new roadway striping along the entire length of Dorothy Street from Jamacha Road to the southerly terminus at Shanessey Road to enhance pedestrian and traffic safety.

MOTION CARRIED BY UNANIMOUS VOTE.

8. Traffic Calming Request for Bostonia Street

RECOMMENDATION:

That the City Council adopts the next Resolution, in order, to:

1. Establish permanent all-way stop signs on Bostonia Street at the intersection of Coker Way;

2. Install two-way stop signs on Bluebell Way at Bostonia Street, Navello Street at Bluebell Way, Bluebell Way at Tangerine Street, and Tangerine Street at Coker Way;

Joint Meeting: El Cajon City Council/Housing Authority/ January 23, 2024 Successor Agency to the Redevelopment Agency - 14 - 3:00 p.m.

ADMINISTRATIVE REPORTS: (Item 8 - Continued)

3. Install two speed radar feedback signs along Bostonia Street;

4. Install new roadway stripin g along the entire length of Bostonia Street from Greenfield Drive to Broadway to enhance pedestrian and traffic safety; and

5. Determine that the project is exempt from the California Environmental Quality Act in accordance with State CEQA Guidelines section 15301(c).

DISCUSSION

City Engineer, Mario Sanchez, provided detailed information of the Item.

Discussion ensued among Council and Staff concerning the following:
 Field data information not showing excessive speeding; and  Traffic studies of the area.

Marlene Young submitted a letter of support for the proposed traffic calming request.

Frank Kalinoski stated that the only speeding area is on Bostonia Street and does not agree with the proposed stop signs.

Vickie Kalinoski spoke in support of the proposed traffic calming request.

MOTION BY KENDRICK, SECOND BY METSCHEL, to ADOPT Resolution No. 009-24 to establish permanent all-way stop signs on Bostonia Street at the intersection of Coker Way; Install two -way stop signs on Bluebell Way at Bostonia Stre et, Navello Street at Bluebell Way, Bluebell Way at Tangerine Street, and Tangerine Street at Coker Way; Install two speed radar feedback signs along Bostonia Street; and Install new roadway striping along the entire length of Bostonia Street from Greenfie ld Drive to Broadway to enhance pedestrian and traffic safety.

MOTION CARRIED BY 4 - 1 VOTE (GOBLE – No).

9. Homeless Court Program: Clean Plates Memorandum of Understanding

RECOMMENDATION:

That the City Council authorizes the City Manager to enter int o the Homeless Court Program: Clean Plates Memorandum of Understanding.

DISCUSSION

City Manager Mitchell provided detailed information of the Item.

Joint Meeting: El Cajon City Council/Housing Authority/ January 23, 2024 Successor Agency to the Redevelopment Agency - 15 - 3:00 p.m.

ADMINISTRATIVE REPORTS: (Item 9 - Continued)

No public comment was received.

MOTION BY ORTIZ, SECOND BY METSCHEL, to ENTER into the Homeless Court Program: Clean Plates Memorandum of Understanding.

MOTION CARRIED BY UNANIMOUS VOTE.

10. Authorization to Establish “El Cajon On -Demand” Flexible Fleet/Clean Mobility Options Grant Project, Grant Number (MPV23W2A)

RECOMMENDATION:

That the City Council adopts the next Resolution, in order, to:

1. Authorize the City Manager to execute the Clean Mobility Options (CMO) Pilot Program agreement; and

2. Accept, appropriate, and expend $1.5 million State Funded Clean Mobility Options Grant (MPV23W2A), contingent on award.

DISCUSSION

City Engineer, Mario Sanchez, provided detailed information of the Item.

Discussion ensued among Council and Staff concerning the following:
 Help for senior citizens; and
 Hours of operation for proposed services.

No public comment was received for the Item.

MOTION BY GOBLE, SECOND BY METSCHEL, to ADOPT Resolution No. 010-24 to Authorize the City Manager to execute the Clean Mobility Options (CMO) Pilot Program agreement; and Accept, appropriate, and expend $1.5 million State Funded Clean Mobility Options Grant (MPV23W2A), contingent on award.

MOTION CARRIED BY UNANIMOUS VOTE.

COMMISSION REPORTS: None

Joint Meeting: El Cajon City Council/Housing Authority/ January 23, 2024 Successor Agency to the Redevelopment Agency - 16 - 3:00 p.m.

ACTIVITIES REPORTS/COMMENTS OF MAYOR WELLS:

SANDAG (San Diego Association of Governments) Board of Directors.

11. Council Activities Report/Comments

Report as submitted.

12. City Council Assignments

RECOMMENDATION:

That the City Council approves City Council assignments (as identified in the report) to various boards and commissions representing El Cajon.

No public comment was received for the Item.

MOTION BY WELLS, SECOND BY ORTIZ, to APPROVE the City Council assignments (as identified in the report) to various boards and commissions representing El Cajon.

MOTION CARRIED BY UNANIMOUS VOTE.

ACTIVITIES REPORTS OF COUNCILMEMBERS:

13. COUNCILMEMBER MAYOR STEVE GOBLE
MTS (Metropolitan Transit System Board); East County Advance d Water Purification Joint Powers Authority Board; Chamber of Commerce – Government Affairs Committee; SANDAG – Board of Directors – Alternate; SANDAG Publi c Safety Committee – Alternate.

Council Activities Report/Comments.

Report as submitted.

14. COUNCILMEMBER GARY KENDRICK
METRO Commission/Wastewater JPA; Heartland Communicatio ns; Hear tland Fire Training JPA.

Council Activities Report/Comments.

Report as submitted.

Joint Meeting: El Cajon City Council/Housing Authority/ January 23, 2024 Successor Agency to the Redevelopment Agency - 17 - 3:00 p.m.

ACTIVITIES REPORTS OF COUNCILMEMBERS: (Continued)

15. COUNCILMEMBER MICHELLE METSCHEL
Harry Griffen Park Joint Steering Committee; Heartland Communications – Alternate; Heartland Fire Training JPA – Alternate; METRO Commission/Wastewater JPA – Alternate.

Council Activities Report/Comments.

Report as submitted.

16. DEPUTY MAYOR PHIL ORTIZ
League of California Cities, San Diego Division; East County Economic Development Council; MTS (Metropolitan Transit System Board) – Alternate; East County Advance d Water Purification Joint Powers Authority Board – Alternate; Chamber of Commerce – Government Affairs Committee – Alternate.

Council Activities Report/Comments.

Report as submitted.

JOINT COUNCILMEMBER REPORTS: None

GENERAL INFORMATION ITEMS FOR DISCUSSION: None

ORDINANCES: FIRST READING - None

ORDINANCES: SECOND READING AND ADOPTION

17. Amendment of Section 2.16.020 of Chapter 10.20 of the El Cajon Municipal Code Regarding Salaries of Councilmembers and Mayor

RECOMMENDATION:

That Mayor Wells requests the City Clerk to recite the title.

An Ordinance Repealing Section 2.16.020 of Chapter 2.16 and Adding a New Section

2.16.020 of Chapter 2.16 of the El Cajon Municipal Code Adjusting Salaries of Councilmembers and Mayor Effective January 1, 2025.

Joint Meeting: El Cajon City Council/Housing Authority/ January 23, 2024 Successor Agency to the Redevelopment Agency - 18 - 3:00 p.m.

ORDINANCES: SECOND READING AND ADOPTION: (Item 17 - Continued)

The proposed ordinance amendment is not subject to the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(b)(5) because the activity is not a “project” since it is an organizational or administrative activity of government that will not result in direct or indirect physical changes in the environment.

DISCUSSION

No public comment was received for the Item.

The City Clerk recited the title of the ordinance for a second reading.

An Ordinance Repealing Section 2.16.020 of Chapter 2.16 and Adding a New Section

2.16.020 of Chapter 2.16 of the El Cajon Municipal Code Adjusting Salaries of Councilmembers and Mayor Effective January 1, 2025.

MOTION BY WELLS, SECOND BY ORTIZ, to ADOPT Ordinance No. 5140, Repealing Section 2.16.020 of Chapter 2.16 and Adding a New Section

2.16.020 of Chapter 2.16 of the El Cajon Municipal Code Adjusting Salaries of Councilmembers and Mayor Effective January 1, 2025.

MOTION CARRIED BY UNANIMOUS VOTE.

CLOSED SESSIONS:

RECOMMENDATION: That the City Council/Housing Authority/Successor Agency to the El Cajon Redevelopment Agency adjourns to Closed Session as follows:

18. Closed Session - Conference with Legal Counsel - Existing Litigation - pursuant to paragraph (1) of subdivision (d) of Government Code section 54956.9:

Brandon Farrelly v. City of El Cajon; WC Claim No. 22012029

19. Closed Session - Conference with Real Property Negotiators - pursuant to Government Code section 54956.8:

Property:

APN 488-242-43-00
405 E. Lexington Avenue

Negotiating Party:

Centro de Salud de la Comunidad de San Ysidro, Inc.

Kevin Mattson, CEO

Joint Meeting: El Cajon City Council/Housing Authority/ January 23, 2024 Successor Agency to the Redevelopment Agency - 19 - 3:00 p.m.

CLOSED SESSIONS: (Item 19 - Continued)

City Negotiators:

City Manager
Assistant City Manager
City Attorney

Under Negotiation:

Price and terms of payment for acquisition

20. Closed Session - Conference with Real Property Negotiators - pursuant to Government Code section 54956.8:

Property:

APN 488-242-43-00
405 E. Lexington Avenue

Negotiating Party:

San Diego Chaldean Community Council
Dr. Noori Barka

City Negotiators:

City Manager
Assistant City Manager
City Attorney

Under Negotiation:

Price and terms of payment for lease of property

Mayor Wells stated that due to a business relationship with Centro de Salud de la Comunidad de San Ysidro, Inc., he would abstain from a vote on Items 19 and 20.

MOTION BY WELLS, SECOND BY ORTIZ, to ADJOURN to Closed
Session at 4:53p.m.

MOTION CARRIED BY UNANIMOUS VOTE.

Mayor Wells returned to the Chamber at 4:58 p.m.

RECONVENED to Open Session at 5:36 p.m.

City Attorney Foley reported the following actions:
 Item 18: Tentative settlement agreement approved
 Item 19: Direction given to city negotiators
 Item 20: Direction given to the City Manager

Joint Meeting: El Cajon City Council/Housing Authority/ January 23, 2024 Successor Agency to the Redevelopment Agency - 20 - 3:00 p.m.

Adjournment: Mayor Wells adjourned the Adjourned Regular Joint Meeting of the El Cajon City Council/ Housing Authority/Successor Agency to the El Cajon Redevelopment Agency held this 23rd day of January, 2024, at 5:37 p.m., to Tuesday, February 13, 2024, at 3:00 p.m.

______________________
ANGELA L. CORTEZ, CMC
City Clerk/Secretary
City Council
Agenda Report
Agenda Item 4.

DATE: February 13, 2024
TO: Honorable Mayor and City Councilmembers
FROM: Mike Moulton, Chief of Police
SUBJECT: FY 2022 Urban Area Security Initiative (UASI) Grant Funding Modification for Hi-Lo Sirens
RECOMMENDATION:

That the City Council adopts the next Resolution, in order, authorizing the City Manager or designee to accept and appropriate the modification to the FY 2022 UASI Grant funds in the amount of $18,753, and to execute any grant documents and agreements necessary for the receipt and use of these funds.

BACKGROUND:

Since the terrorist attacks of September 11, 2001, there has been a heightened concern over the potential act of terrorism to occur again within the United States. The Federal Government, through the Department of Homeland Security, has provided communities throughout the country with hundreds of millions of dollars for the fight against terrorism. On June 13, 2023, the Police and Fire Department previously received Council approval (Resolution No. 054-23) to appropriate funding in the amount of $55,300 for training and equipment. On December 13, 2023, an additional amount of $18,753 was approved by the San Diego Office of Emergency Services (Designated Grant Administrator for UASI Funding) for the purchase of Hi-Lo Sirens in patrol vehicles for evacuations.

CALIFORNIA ENVIRONMENTAL QUALITY ACT:

The purchase of equipment funded by the Urban Area Security Initiative (UASI) Grant does not constitute a project pursuant to CEQA Guidelines section 15378(b)(2) on the basis that it is a continuing administrative or organizational activity of government that will not result in direct or indirect physical changes in the environment.

FISCAL IMPACT:

This grant modification of $18,753 is in addition to the original approved amount of $55,300 for a total of $74,053 in funding to the UASI Grant Fund (226380-UASI22) and will not impact the City's General Fund. No matching funds are required for this grant. The additional funding of $18,753 will be used solely by the Police Department for the Hi-Lo Sirens identified above or as modified in the grant workbook and approved by the granting agency. .!!!!_ Valley of opportunity
~ ~ ~
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Prepared By: Amanda Penaflor
Reviewed By: Mike Moulton, Police Chief
Approved By: Graham Mitchell, City Manager
Attachments
Resolution
Grant Award Document
RESOLUTION NO. -24

A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF EL CAJON AUTHORIZING THE ACCEPTANCE OF
THE FY22 STATE HOMELAND SECURITY GRANT –

URBAN AREA SECURITY INITIATIVE GRANT
MODIFICATION IN THE AMOUNT OF $18,753 TO

FUND EQUIPMENT FOR THE CITY OF EL CAJON

POLICE AND FIRE DEPARTMENTS

WHEREAS, since the terrorist attacks of September 11, 2001, there continues to be a heightened concern over the potential act of terrorism to occur again within the borders of the United States, and the federal government, through the Department of Homeland Security (the "Department"), has provided communities throughout the Country with financial assistance in the fight against terrorism; and

WHEREAS, the City of El Cajon (the "City") has been awarded an amount of FY2022 State Homeland Security Grant Urban Area Security Initiative (" UASI") grant funding in the sum of $18,753, for the purchase of "Hi-Lo Sirens" to be installed in police patrol vehicles; and

WHEREAS, the City Council has determined that it is in the best interests of the City to be a recipient of the designated grant funds.

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF EL CAJON AS FOLLOWS:

Section 1. The above recitals are true and correct, and are the findings of the City Council.

Sec
tion 2. The City Council hereby authorizes the acceptance and appropriation of the UASI funds from the Department in the amount of $18,753, generally for the purposes set forth herein, provided, however, that the City Manager, or such person designated by the City Manager, is allowed to modify the specific use of UASI funds, with the approval of the Department.

Section 3. The City Council hereby further authorizes the City Manager, or such person designated by the City Manager, to execute any grant documents and agreements necessary for the receipt and use of these funds on behalf of the City of El Cajon, with such changes as may be approved by the City Manager, or such person designated by the City Manager, and to take all actions and to execute all documents necessary or appropriate to carry out the terms of the UASI grant.

02/13/24 CC Agenda
Reso – FY22 UASI Grant Funding Modification for Hi-Lo Sirens 020524

Page 1 of 1 ends

12/13/23
City of San Diego Office of Homeland Security
06/26/23 td,Mi¢Witm i::y22 UASI
Federal Grant# 2022-0043 CalOES # 073-66000 Amendment# 1 ---- Project# 026 UEI# GUANBKQWK6J3 Final Claim Due Date 1211512024 ----
This amendment is behveen the City of San Diego Office of Homeland Security, heamfter called OHS, and the G.-ant Subrecipient: City of El Cajon Police Department
Increase Project 026 - Hi-Lo Sirens in Patrol Vehicles for Evacuations - $18,753. The new Project 026 total is $18,753
Sub recipient (Ce11ification and Signature of Authorized Agent) 11/01/2023
iili1J~~1!t1;""'
Mike Moulton Chief of Police
For OHS use only
I hearby certify upon my own personal lmowledge that budgeted funds are available for the period and purpose of the ex enditure stated above
City Council
Agenda Report
Agenda Item 5.

DATE: February 13, 2024
TO: Honorable Mayor and City Councilmembers
FROM: Morgan Foley, City Attorney
SUBJECT: City Attorney Staff Members
RECOMMENDATION:

That the City Council adopts the next Resolution, in order, appointing the professional staff of the City Attorney’s Department effective February 13, 2024.

BACKGROUND:

The office of the City Attorney is staffed by principals and associates of the municipal law department of the law offices of McDougal Boehmer Foley Lyon Mitchell & Erickson. These appointments periodically change with the departures and additions of personnel, and this action is necessary to update the list of current staff.

CALIFORNIA ENVIRONMENTAL QUALITY ACT:

The proposed professional staffing for the City Attorney's Office is exempt from the California Environmental Quality Act (CEQA) in accordance with section 15378(b)(5) of the state CEQA Guidelines, because it is an organizational activity of government.

FISCAL IMPACT:

No fiscal impact. The contract with the City Attorney and McDougal Boehmer Foley Lyon Mitchell & Erickson is not affected by this change.

Attachments
Resolution
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RESOLUTION NO. __-24

RESOLUTION APPOINTING CITY ATTORNEY STAFF

OF THE CITY OF EL CAJON

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF EL CAJON AS FOLLOWS:

The City Attorney staff members are appointed, effective February 13, 202 4, as follows:

Morgan L. Foley, City Attorney

Mark-Robert Bluemel, Assistant City Attorney

M. Anne Cirina, Assistant City Attorney

Cory R. Lacy, Assistant City Attorney

Jennifer M. Lyon, Assistant City Attorney

Barbara C. Luck, Staff Attorney

02/13/24 CC Agenda
Reso - City Attorney Staff Appointment 012624

City Council
Agenda Report
Agenda Item 6.

DATE: February 13, 2024
TO: Honorable Mayor and City Councilmembers
FROM: Yazmin Arellano, Director of Public of Works
SUBJECT: Authorization to Submit an Application for the San Diego River Conservancy Direct Grant Program
RECOMMENDATION:

That the City Council adopts the next Resolution, in order, to authorize the City Manager, or approved designee, to submit an application for the San Diego River Conservancy (SDRC).

BACKGROUND:

The San Diego River Conservancy (SDRC) is a state agency authorized to work in the San Diego River Watershed to implement multi-benefit projects that protect and enhance the San Diego River and its connected resources. The SDRC is authorized to undertake projects and award grants to achieve its goals. The SDRC’s jurisdiction includes the San Diego River and its tributaries, including Forester Creek. The SDRC’s Direct Grant Program seeks to support multi-benefit projects that advance several goals, including conserving land, protecting resources, improving water quality, protecting and enhancing wildlife, and protecting the natural and scenic beauty of the San Diego River watershed.

PROJECT DESCRIPTION
The City prepared an application for grant funds for the Broadway Creek Restoration Phase B - Construction Project in El Cajon (Project). The Project will accomplish the second phase of the creek restoration. The scope intends to mitigate severe channel erosion and scour as prevalent in the existing condition and protect private property from further damage. The Project is a high priority due to the prolonged impact of surface water on public and private assets and capacity issues inherent in the existing creek. The Project also aims to restore vital biological habitat in the community and improve a disadvantaged area in the City of El Cajon. The Project is a collaboration between the City of El Cajon and the County of San Diego.

CALIFORNIA ENVIRONMENTAL QUALITY ACT:

On May 11, 2021, the City Council adopted Resolution No. 040-21 approving a Mitigated Negative Declaration (MND), and Mitigation Monitoring and Reporting Program for the Broadway Creek Restoration Project in accordance with California Environmental Quality Act (CEQA) guidelines. The MND evaluated potential environmental impacts of the project and determined that the potential impacts were less than significant with the incorporation of mitigation measures. Subsequently, a Notice of Determination in compliance with Section 21108 of the Public Resources Code was filed with the County Clerk. .!!!!_ Valley of opportunity
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FISCAL IMPACT:

If awarded, the City will receive $2,000,000 in grant funds. A required local match of $200,000 (10%) will be allocated by the City through Wastewater Program funds (650740 Budget Activity account).

Prepared By: Olga Reyes, Principal Civil Engineer
Reviewed By: Yazmin Arellano, Director of Public Works
Approved By: Graham Mitchell, City Manager
Attachments
Resolution

Page 1 of 1 ends

RESOLUTION NO. -24

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

EL CAJON APPROVING THE APPLICATION FOR GRANT FUNDING

FROM THE SAN DIEGO RIVER CONSERVANCY GRANT PROGRAM

WHEREAS, the San Diego River Conservancy ("SDRC") is a state agency authorized to work in the San Diego River Watershed to implement multi-benefit projects that protect and enhance the San Diego River and its connected resources, undertaking projects and awarding grants to achieve its goals; and

WHEREAS, the City prepared an application for SDRC grant funds for the Broadway Creek Restoration Phase B - Construction Project in El Cajon ( the "Project"); and

WHEREAS, it is necessary that the City Council authorizes the City Manager or such person designated by the City Manager to apply for, accept, appropriate and expend grant funds received from any SDRC program grants for which the City is eligible; and

WHEREAS, in May 2021, a Notice of Determination in compliance with section 21108 of the Public Resources Code was filed with the County Clerk declaring the Project to not have a significant impact on the environment and a subsequent Negative Declaration was approved pursuant to the provisions of CEQA; and

WHEREAS, if awar ded, the City will receive $2,000,000 in grant funds with a required local match of $200,000 (10%), allocated through the City's Wastewater Program funds.

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF EL CAJON AS FOLLOWS:

1. T he filing of an application for SDRC grant funds is hereby approved.

2. T he City Manager, or such person designated by the City Manager, is hereby designated as agent of the City to conduct all negotiations; execute and submit all documents including, but not limited to applications that may be necessary to file for grant funds for the proposed Project.

02/13/24 CC Agenda
Reso – Approve Application for SDRC Grant Program 020524 City Council
Agenda Report
Agenda Item 7.

DATE: February 13, 2024
TO: Honorable Mayor and City Councilmembers
FROM: Yazmin Arellano, Director of Public of Works
SUBJECT: Purchase of Polaris Vehicles
RECOMMENDATION:

That the City Council adopts the next Resolution, in order, authorizing the purchase from Polaris Sales, Inc. of two Ranger XP 1000 Polaris in the total amount of $45,000 utilizing the SB 1383 CalRecycle grant funds.

BACKGROUND:

The City applied for and received a CalRecycle SB 1383 grant in the amount of $146,529 in FY 2022-23. The grant funds are awarded to local jurisdictions to assist in implementing programs and statutory requirements related to the SB 1383 methane emission reduction targets for California.

To assist the City with the SB 1383 regulations, the Public Works Department is requesting to utilize the grant funds to purchase two Polaris vehicles to assist staff with the compost activities, specifically for transporting compost to parks and City facilities. The purchase has been reviewed and approved by CalRecycle as an eligible grant expense.

CALIFORNIA ENVIRONMENTAL QUALITY ACT:

Senate Bill 1383 grant funds for the purchase of equipment is exempt from the California Environmental Quality Act pursuant to sections 15301, 15308 and 15309 of the state CEQA Guidelines. The Polaris vehicles will be used to maintain public facilities and assist in the capture of organic waste.

FISCAL IMPACT:

The fiscal impact of this purchase is $45,000. Sufficient funds are available in the CalRecycle SB1383 (Project CALSB1383) Budget (251580).

Prepared By: Monica Martinez, Sr. Management Analyst
Reviewed By: Yazmin Arellano, Director of Public Works
Approved By: Graham Mitchell, City Manager
Attachments
Resolution
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Page 1 of 1 ends

RESOLUTION NO. ___-24

RESOLUTION OF THE CITY COUNCIL OF

THE CITY OF EL CAJON APPROVING THE

PURCHASE OF TWO POLARIS VEHICLES

WHEREAS, in FY 2022- 23, the City of El Cajon (the "City") applied for and received a CalRecycle SB 1383 grant in the amount of $146,529 (the "Grant"); and

WHEREAS, the Grant funds are awarded to local jurisdictions to assist in implementing programs and statutory requirements related to the SB 1383 methane emission reduction targets for California; and

WHEREAS, to assist the City with meeting SB 1383 targets, the Public Works Department has requested utilization of the Grant funds for the purchase of two (2) Polaris vehicles (the "Vehicles") to assist staff with composting activities, specifically to transport compost to City parks and facilities, which will maintain public facilities and assist in the capture of organic waste; and

WHEREAS, the purchase of the Vehicles has been reviewed and approved by CalRecycle as an eligible grant expense; and

WHEREAS, the fiscal impact of this purchase is $45,000, and sufficient funds are available in the CalRecycle SB1383 Budget; and

WHEREAS, the purchase of equipment using SB1383 grant funds is exempt from the California Environmental Quality Act ("CEQA") subject to CEQA Guidelines sections 15301, 15308, and 15309; and

WHEREAS, the City Council believes it to be in the City's best interest to approve the purchase of the Vehicles in an amount not to exceed $45,000.

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF EL CAJON AS FOLLOWS:

1. The above recitals are true and correct, and are the findings of the City Council.

2. The City Council hereby approves the purchase of the Vehicles in the not- to-exceed amount of $45,000.

3. The City Council hereby authorizes the City Manager, or such person as is designated by the City Manager, to execute the Purchase Order, with any such changes and refinements as may be necessary and approved by the City Manager.

4. The City Manager, or such person as is designated by the City Manager, is hereby authorized and directed to execute any subsequent amendments to the Purchase Order, or other documents necessary, as may be approved by the City Manager, on behalf of the City of El Cajon.

02/13/24 CC Agenda
Reso – Approve Purchase of Polaris Vehicles 020524
City Council
Agenda Report
Agenda Item 8.

DATE: February 13, 2024
TO: Honorable Mayor and City Councilmembers
FROM: Mara Romano, Purchasing Agent
SUBJECT: Extension of Automated License Plate Reader Cameras Agreement RECOMMENDATION:

That the City Council adopts the next Resolution, in order, to enter into a new agreement with Flock Group Inc. (FGI), for an Automated License Plate Reader (ALPR) camera subscription/implementation system in the amount of $100,000, for the initial one-year term and four additional one-year term renewals with such changes as may be approved by the City Manager.

BACKGROUND:

On March 14, 2023, the City Council approved the sole source procurement of ALPRs which provide the Police Department consistent data, increasing the ability to solve crimes that involve the use of standalone and vehicle cameras with FGI for a three-year term (March 21, 2023 through March 20, 2026). FGI has since provided the City an opportunity to lock-in pricing for five years (initial one-year term with four additional one-year terms), replacing the original agreement.

If City Council elects to approve the procurement, the new agreement will be negotiated by City staff and changes may be approved by the City Manager as necessary. The new agreement would replace and supersede the current agreement.

CALIFORNIA ENVIRONMENTAL QUALITY ACT:

The proposed agreement extension is exempt from the California Environmental Quality Act (CEQA) pursuant to section 15301 (Existing Facilities) of the CEQA Guidelines. Section 15301 provides an exemption for the leasing of equipment involving negligible or no expansion of existing use.

FISCAL IMPACT:

The fiscal impact for the initial one-year term is $100,000. American Rescue Plan Act (ARP17) funds in the amount of $200,000 will fund the first two years of the agreement. Subsequent three-year renewals are estimated to total $300,000 ($100,000/annually) and will be funded by the General Fund unless other funding sources become available within the last three years of the contract. The Police Department will continue to seek alternate funding options to mitigate the anticipated impact to the General Fund.
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Prepared By: Mara Romano, Purchasing Agent
Reviewed By: Mike Moulton, Police Chief
Approved By: Graham Mitchell, City Manager
Attachments
Resolution

Page 1 of 2 ends

RESOLUTION NO. ___-24

RESOLUTION OF THE CITY COUNCIL OF

THE CITY OF EL CAJON APPROVING THE EXTENSION OF

AUTOMATED LICENSE PLATE READER CAMERAS AGREEMENT

WHEREAS, on March 14, 2023, the City Council of the City of El Cajon ("the City") approved the sole source procurement of an Automated License Plate Reader ("ALPR") camera subscription/implementation system, and entered into an agreement with Flock Group Inc. ("FGI"), in the amount of $114,000 for the initial term, with two (2) additional one-year term renewals (the "Agreement"); and

WHEREAS, ALPRs provide the Police Department with consistent data, and increase the ability to solve crimes that involve the use of stand- alone and vehicle cameras; and

WHEREAS, FGI has since provided the City an opportunity to lock in pricing for five (5) years (an initial one-year term with four additional one- year terms), with a new agreement (the "Replacement Agreement"), which will be negotiated by City staff , with changes approved by the City Manager as necessar y, to replace and supersede the current Agreement; and

WHEREAS, t he fiscal impact for the ini tial one- year term is $100,000, and American Rescue Plan Act (ARP17) funds in the amount of $200,000 will fund the first two years of the Replacement Agreement, with three (3) subsequent one-year renewals estimated to total $300,000 ($100,000/annually) , to be funded by the General Fund unless other funding sources become available within the last three (3) years of the contract; and

WHEREAS, approval of the Replacement Agreement is exempt from the California Environmental Quality Act ("CEQA") subject to CEQA Guidelines section 15301 (Existing Facilities), which provides an exemption for the leasing of equipment involving negligible or no expansion of existing use; and

WHEREAS, the City Council believes it to be in the City's best interest to approve the Replacement Agreement with FGI for an ALPR camera subscription/implementation system, in the amount of $100,000 for the initial one -year term, and four (4) additional one-year term renewals in the estimated amount of $100,00 annually.

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF EL CAJON AS FOLLOWS:

1. The above recitals are true and correct, and are the findings of the City Council.

2. The City Council hereby approves entering into the Replacement Agreement with Flock Group Inc. for an ALPR camera subscription/implementation

Page 2 of 2 ends

system in the amount of $100,000 for an initial one-year term and four (4) additional one- year term renewals, with such changes as may be approved by the City Manager.

3. The City Council hereby authorizes the City Manager, or such person as is designated by the City Manager, to execute a Replacement Agreement on behalf of the City, with any such changes and refinements as may be necessary and approved by the City Manager.

4. The City Manager, or such person as is designated by the City Manager, is hereby authorized and directed to execute any subsequent amendments for up to three (3) one- year renewal terms of the Replacement Agreement , along with such other documents necessary, as may be approved by the City Manager, on behalf of the City of El Cajon.

02/13/24 CC Agenda
Reso – Approve Extension of Flock Agmt for ALPRs 020824 City Council
Agenda Report
Agenda Item 9.

DATE: February 13, 2024
TO: Honorable Mayor and City Councilmembers
FROM: Vince DiMaggio, Assistant City Manager
SUBJECT: Analysis of the Operations of the Downtown Property Business Improvement District (PBID)
RECOMMENDATION:

Staff recommends that the City Council receives the report and provides appropriate direction to staff.

BACKGROUND:

In the spring of 2023, the City circulated a Request for Proposals (RFP) to solicit interest from consultants to conduct a comprehensive analysis of the operations of the El Cajon Property Business Improvement District (PBID). From that process, New City America, Inc., (NCA) was selected. NCA is based in San Diego and has a well established reputation for not only consulting with local agencies on community benefit assessment districts, but has formed over 90 such districts and manages a number of districts across the country.

As part of this agenda item, the City Council will receive a detailed presentation by Marco Li Mandri, President of New City America, on the results of the PBID analysis in all of its various dimensions. The staff report is meant to provide a high-level executive summary complementary to Mr. Li Mandri’s oral report.

In conducting their analysis of various business improvement districts across the country, NCA has developed a five-point checklist it uses to determine whether such districts are successfully producing results for both the district constituents and the city. The five points analyzed by NCA are:

The Importance of Place;1.

Need for Independent Financing;2.

Creating and Overseeing an Entrepreneurial District Management Corporation;3.

Taking Advantage of Timing and Politics; and4.

Being “Results Oriented” and Integrating Public Spaces Throughout the District Management Process.

5. The El Cajon PBID was measured against each of these five criteria and the outcomes are fully described in the attached report. The NCA report also revisits the findings of the 2011 Blue Ribbon Committee, formed by the City Council in order to evaluate the performance of the PBID, and how the PBID has implemented the Committee’s recommendations. Based on the .!!!!_ Valley of opportunity
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NCA analysis, several of the original Blue Ribbon Committee recommendations remain relevant today and are detailed in the NCA report. Specifically, the NCA report notes a potential over-reliance on car shows and concerts, a need to expand the Board of Directors by adding real estate professionals, a Live Nation representative and Marriott representative, and a need to incorporate the programming of events at The Magnolia into larger scale Downtown events.

As part of the comprehensive analysis, the NCA report also reviewed the FY 2021-2022 PBID budget and found that the budget deviated from the amount allocated under the City Council-approved 2016 Management District Plan. For example, under the Management District Plan, 26.8% is to be allocated to management services. In actuality, only 18% of the FY 21-22 budget was allocated to management services. According to NCA, there was also a collection shortfall of approximately $15,000. One of the remedies NCA proposes in their report is the hiring of a full time Executive Director in order to remove the management burden from voluntary Board members and ensure greater accountability in the management of operations.

According to NCA, the current PBID law has become obsolete and does not provide for the transformational dynamic seen in successful and thriving downtowns. As such, the most significant recommendation from NCA is to adopt a new enabling ordinance, available only to Charter Cities, that would recast the PBID as a Community Benefit District. The idea being that by using the authority given to Charter Cities under Article XI of the California Constitution, the City can adopt a new enabling ordinance to create a Community Benefit District, consistent with current PBID law, and use the new ordinance as the vehicle by which to recertify the PBID in 2026. The new ordinance would provide a more reasonable petition process and allow the City Council to set the term of the District (within statutory limitations). Another positive byproduct of the new ordinance is that it would become part of the City’s Municipal Code and would therefore be available to any defined group of properties within the City that finds benefit in its implementation.

Section VIII of the report includes a series of actions that NCA is recommending to be implemented. The first is a grouping of twelve action items that the PBID can choose to implement on their own. City staff will encourage the PBID Board to weigh the value of each of the twelve recommendations and the Board can determine which, if any, is appropriate for implementation.

The second series of actions is a group of six recommendations that require a level of City involvement. Some of these recommendations have already been adopted. Each is briefly noted below:

Market Rate Housing Incentives – This is already being implemented through a combination of expedited permit processes, favorable zoning regulations encouraging higher density development, and the absence of development impact fees.

1. Adopt a Community Benefit District ordinance – The particulars of this option are described above. This is perhaps the most significant and beneficial option for the future of the PBID. The City Council can provide direction to staff to initiate this process.

2. Adopt a Sidewalk Vending ordinance – The City adopted a sidewalk vending ordinance consistent with State law in 2020.

3. Adopt a Busker ordinance – The City does not currently have a Busker ordinance, although such an ordinance may be helpful as more activities are programmed for the Downtown area through this and other initiatives.

4. Create standards for redevelopment and wider sidewalks on the west side – NCA5.

Create standards for redevelopment and wider sidewalks on the west side – NCA is recommending the planning and construction of 12-foot sidewalks for the western portion of the PBID district. This area is currently under construction as part of the Main Street/Green Street project where new sidewalks, bike lanes, and street trees are being installed. Even though the new sidewalks in this area are not as wide as recommended, (they range from 5.5 feet wide to 8 feet wide) the entire project represents a considerable improvement over the existing condition.

5. Fund replacement of permanent seating with moveable tables and chairs in Prescott Promenade – NCA maintains that movable street/plaza furniture will provide more flexibility in programming the space for events as well as abating camping activity.

6. In considering the menu of options above, the City Council can choose to provide direction to staff on Items #2, #4, and/or #6 (or none of the above).

In conclusion, the analysis conducted by NCA was comprehensive in its scope and provides for a range of possible alternatives to strengthen the PBID, encourage investment and redevelopment, and potentially sets the stage for the next chapter of PBID operations over the long term.

CALIFORNIA ENVIRONMENTAL QUALITY ACT:

This is an informational item being considered by the City Council. Therefore, it is exempt from the California Environmental Quality Act (CEQA) because it is not a “project” under section 15378(b)(5) of the state CEQA Guidelines. It is an organizational or administrative activity of government that will not result in a direct or indirect physical change in the environment.

Prepared By: Vince DiMaggio, Assistant City Manager
Reviewed By: Graham Mitchell, City Manager
Approved By: Graham Mitchell, City Manager
Attachments
Current PBID Boundary Map
Review of the Downtown PBID
Downtown El Cajon PBID Ma rch 2016
Report Pa ge 8 of 22

Engineer's
. " ·-,
Report to the City Council and City Manager
of the City of El Cajon

REVIEW AND RECOMMENDATION

ON THE DOWNTOWN PBID

PREPARED BY MARCO LI MANDRI
& STAFF OF NEW CITY AMERICA, INC.

DECEMBER 2023
I. INTRODUCTION, NEW CITY

STANDARDS
Overview of Downtown PBID and General
Overview of Financing Downtown
Improvements:

Downtown El Cajon’s PBID has been in place
since 1997, around 2 years after the Property
Business Improvement District Act was approved
by the California State Legislature in 1994.

California was late to the game, relative to other
states, in adopting a Downtown financing
mechanism based upon property assessments,
not business license assessments. Previously,
business communities in the state only had the
Parking and Business Improvement District Act
in the Streets and Highway Code to help
business communities compete against the
impact of shopping malls. The original BID law
only impacted business license holders and the
formation of the district was only based upon
“majority protest.” Under the old BID law, City
Councils could create these districts on their
own initiative. In the late 1960s until 1994, these
were the districts of choice for business districts
in California with over 300 being formed in that
period.

The problem with these districts is that they were
based upon business license holders and every
city has a different method for levying business
licenses or taxes on business owners. In Los
Angeles, businesses licenses are based upon
gross receipts. In San Diego, businesses pay into
BIDs based upon their number of employees.

Throughout the 450 cities in the state, no two
cities use the same methodology to have
businesses pay for their licenses. Also, if there
was a vacancy, no revenue would be generated
from that building.

BIDs under this older system were chronically
undercapitalized, generated only enough money
usually to pay staff and had no other sustainable
revenues to help pay for improvements. The City
of San Diego led the way with these business
license-based districts having, at one time, up to
18 functioning BIDs.

With the adoption of the PBID law, a new
funding mechanism for Downtown and business
communities in California was now allowable.

With the approval of Proposition 218 by the
voters of California in 1996, which amended
Article 13 (d) of the state constitution, property
assessments were required to include an
assessment engineer’s report, required a mail
balloting procedure, and authorized that
“weighted” property owners, or those who paid
higher assessments had greater influence in the
establishment of the district. Instead of the
process for approval being “one property, one
vote,” it became “one dollar, one vote.” Thus, the
higher amount of contribution, the greater vote
one might have in the formation process.

More importantly, the new amendment to the
state constitution required a nexus between
what a property owner paid and what they
received and stated clearly that no state or
federal properties would be exempted unless
they could demonstrate by “clear and
convincing evidence” that they would not derive
benefits. Property owners could only be
assessed for “special benefits” or those programs
and activities that were over and above general
benefits that were currently being provided by a
municipal or county government.

This meant that cities with city halls located in or
large property holdings within downtowns, they
became the largest property owners and
therefore the “weighted property owners” in
their respective locations.

The PBID law has a large fundamental flaw in
that it requires a petition signed by 50% of the
weighted property owners simply to trigger the
Prop 218 required mail ballot procedure. If

49.5% of the property owners signed a petition
and they couldn’t generate any more signatures,
the PBID would never get the support it needed
to enter into the City governed mail ballot
procedure. Therefore, due to the lack of support
by over half of the weighted constituents (by
dollar amount) the district formation effort
would collapse.

Two other issues that have made the PBID law
somewhat obsolete, besides the incredibly high
petition required, were the maximum term of the
district as well as the name of the legislation. In
the end, the PBID law benefits formation
consultants, due to the fact that the district can
be formed for only 5 years the first term and then
a maximum of 10 years for each renewal.

The other problem with the PBID law is the
name: Property Business Improvement District.

Downtowns nationwide are increasingly
becoming residential with housing embedded in
downtowns have become the most prevalent
land use of non-historic building parcels.

Downtowns, particularly in the 21st century, are
becoming neighborhoods with new condo and
apartment developments creating new demands
due to things such as walkability, parks, plazas,
and other neighborhood amenities.

The one issue the legislation did correctly was to
allow for Charter Cities to create their owner
methods of assessment, which almost 25 cities
in the state have done. The PBID Act states:
36603. Nothing in this part is intended to
preempt the authority of a charter city to
adopt ordinances providing for a different
method of levying assessments for similar or
additional purposes from those set forth in
this part. A property and business
improvement district created pursuant to this
part is expressly exempt from the provisions
of the Special Assessment Investigation,
Limitation and Majority Protest Act of 1931
(Division 4 (commencing with Section
2800)).

Since El Cajon is a Charter City, they have the
right to create a new enabling ordinance that
would be applicable City wide and could impact
the name of the district (not only business
improvement), the term and the petition
threshold. A proposed new enabling ordinance
has already been included in this report,
attachment 1.

New City Standards:

New City America is a national company based
in San Diego’s Little Italy that has successfully
formed 93 similar districts (PBIDs, Community
Benefit Districts, BIDs, and Tourism
Improvement Districts) since 1996. It also
currently manages 6 districts statewide, so it
understands the “A to Z” of how to write a District
plan based upon real world experience and costs
and has been a leader in public space design and
development in the districts it has managed.

Over the past 25 years, New City America staff
has come up with a five-point check list for
ensuring that property assessment districts
formed have the greatest chance of producing
tangible results to its constituents as well as to
the cities in which it works. One of the best
examples of the success of this effort and
utilizing the “New City Standards” approach has
been in Downtown San Diego’s Little Italy. Little
Italy has grown into one of the most dynamic
and successful business communities and
neighborhoods nationwide, demonstrated by
not losing any of its over 70 restaurants, café,
bars or eateries, due to the devasting impact of
the pandemic. Little Italy emerged from the
pandemic stronger than ever and is on a
trajectory for additional dynamic growth.

Another good example in the County is to be
found in Downtown Chula Vista, which New City
America has managed over the past 2 years. We
have restructured that organization, converted
its Owners Association to a 501c3 and launched
a series of new public spaces and great events in
that Downtown.

The five points of the New City Standards include
the following proven standards:

1. The Importance of Place: The concept of
“Place” has caught on like wildfire through
the articulation of Placemaking arising out of
New York City in the 1980s. At times, places
are old or historic, new and emerging, or are
being re-invented by new mixed-use
development. The key thing is that the Place
must have a “handle,” or it must convey
positive images when someone mentions it.

Places that have little or no public identity are
hard to resurrect, so it is critical that the
leaders in that community know why they
want to improve it and how the Place will be
perceived by the public at large. This is
directly relevant to Downtown El Cajon
which has had a PBID in place for over 25
years now but has yet to establish a clear
identity in the County. The City of El Cajon
has such a “place” in its Downtown.

2. Need for Independent Financing: Many
places falter because they are
undercapitalized, not organized or are
dependent upon non-reoccurring revenue
streams. Places that lack sustainable,
independent, community funding are always
hampered by the inability to take action, due
to not having the financial resources to do
so. The best way to ensure that the district in
question can expedite smooth and dynamic
development is by establishing a sustainable
funding mechanism. That can be through
property assessment districts, use of parking
meter revenues or huge donor contributions.

The best method is to use a combination of
all of those revenue streams. Downtown El
Cajon has a PBID and that means that this
Downtown has met that condition.

3. Creating and Overseeing an
Entrepreneurial District Management
Corporation: District management
corporations are the non-profit entities that
are under contract with cities managing
Downtown property assessment districts or
BIDs. Those non-profits usually take the
form of mutual benefit corporations (501c6)
or public benefit corporations, (501c3). New
City America knows that the work of the
district management corporation is best
done through a new 501c3 since the work of
the district is similar to the old “Improvement
Associations” created in the early 1900s. The
funding and work is based upon reducing the
“burden of government” by providing and
funding special benefit services in the public
rights of way. By doing so, the district
management corporation is playing a
constructive role of improving not only for
the area that property owners and business
owners but also to the citizens as a whole
within their respective city. The 501c3 also
allows individuals and companies to give
charitable donations to the corporations to
build new public spaces or enhance the
districts through new public improvements.

This was the method that the Rockefeller
Foundation gave to endowing Bryant Park in
New York City in the 1980s. Downtown El
Cajon’s Management Corporation is a 501c6
(mutual benefit non-profit corporation),
which provides non-charitable benefit to
donors for projects and activities in
Downtown. A restructuring of the Owners
Association into a 501c3 will be one of the
recommendations of this report.

4. Taking Advantage of Politics and Timing:

Politics and timing are critical to the success
of any effort to create a sustainable funding
mechanism for interested Downtown
stakeholders. Since the City Manager’s
office, with Mayoral and Council support,
received the authorization to hire a
consulting firm to review the current status in
Downtown El Cajon, this demonstrates that
the political climate and timing are right in El
Cajon in 2024. The review of the
consultants’ report will take into account the
fact that the Mayor, City Manager’s office and
the City Council seek to have a more
activated Downtown with more
development, more customers and create a
more dynamic Downtown, particularly in a
post COVID environment. That will include
greater outdoor dining options, more
mixed-use development and more
interesting public art and public space
opportunities. The political environment and
the timing is perfect for this re-invention and
reorientation of Downtown based upon the
success and reach of the current PBID as a
funding mechanism for special benefits in
Downtown.

In a recently published magazine, “My El Cajon”,
released by City Manager Graham Mitchell,
stated the following in his introductory
statement called “Open for Business”:
“The adage “evolve or die” resonates not only
in business but also in the vitality of
communities. This principle underscores the
crucial need for constant renewal,
modernization, and revitalization, which are
driven by the lifeblood of economic
development. In recent years, the El Cajon
City Council has prioritized economic
growth, a commitment poised to remain at
the forefront of our agenda.”
“Economic development from a municipal
standpoint, involves aligning property
owners, enthusiastic developers, businesses,
and resources to cultivate investment
opportunities within our community. This
infusion of capital and effort should yield
community benefits, including employment
opportunities, local government revenue and
enhanced access to goods and services. In
essence economic development fuels, the
growth of our local economy, ultimately
enhancing the quality of life for El Cajon’s
residents, workforce, and visitors.”
“Given these constraints, you might wonder
how a city can drive economic development.

The answer is “Quite a lot.” Cities can craft
economic development strategies that
outline objectives, leveraging their
community’s competitive strengths and
weaknesses. Our City Council recently
approved the El Cajon Economic
Development Strategic Plan, charting a new
course toward prosperity.”
“Cities can also adopt policies and
procedures that empower business and
entrepreneurship while minimizing obstacles
to development.”
This statement from the City Manager
demonstrates that the “politics and timing” are
right to re-invent Downtown El Cajon.

5. Being “Results Oriented” and Integrating
Public Spaces Throughout the District
Management Process: Much of the credit for
the concept of Placemaking is based upon
the excellent work done from the 1980s up
to the pandemic, led Project for Public
Spaces. The person who inspired and led
placemaking as an international movement
was Fred Kent, the former CEO. Fred and his
partner and wife Cathy held international
conferences to promote how public spaces
should be envisioned and implemented.

Fred believed that 80% of the success of any
public space was based upon management.

Marco Li Mandri, President of New City
America was on the Leadership Council of
the Project for Public Spaces and put this
concept to work through the development
of successful fundraising techniques and
activation of the public spaces in Little Italy
and the other districts they manage. Fred
and Cathy’s work has been replicated
throughout the nation. Downtown El Cajon
has some very good and yet to be activated
public spaces which can become a great
opportunity for attracting new capital to
Downtown since these public spaces,
commons and plazas become new
Downtown residents’ backyard when they
move into new condos and apartments in
Downtown.

The most successful downtowns, in our opinion,
will be the ones that support and implement the
New City Standards models or something
similar. The movement towards successful
Downtowns and City Centers will increasingly be
based upon following successful models in
Board makeup, Board Committees,
transparency, entrepreneurial partnerships with
new developers who collectively understand the
great value in creating and managing new public
spaces within the districts.

I. INTRODUCTION, NEW CITY

STANDARDS
Overview of Downtown PBID and General
Overview of Financing Downtown
Improvements:

Downtown El Cajon’s PBID has been in place
since 1997, around 2 years after the Property
Business Improvement District Act was approved
by the California State Legislature in 1994.

California was late to the game, relative to other
states, in adopting a Downtown financing
mechanism based upon property assessments,
not business license assessments. Previously,
business communities in the state only had the
Parking and Business Improvement District Act
in the Streets and Highway Code to help
business communities compete against the
impact of shopping malls. The original BID law
only impacted business license holders and the
formation of the district was only based upon
“majority protest.” Under the old BID law, City
Councils could create these districts on their
own initiative. In the late 1960s until 1994, these
were the districts of choice for business districts
in California with over 300 being formed in that
period.

The problem with these districts is that they were
based upon business license holders and every
city has a different method for levying business
licenses or taxes on business owners. In Los
Angeles, businesses licenses are based upon
gross receipts. In San Diego, businesses pay into
BIDs based upon their number of employees.

Throughout the 450 cities in the state, no two
cities use the same methodology to have
businesses pay for their licenses. Also, if there
was a vacancy, no revenue would be generated
from that building.

BIDs under this older system were chronically
undercapitalized, generated only enough money
usually to pay staff and had no other sustainable
revenues to help pay for improvements. The City
of San Diego led the way with these business
license-based districts having, at one time, up to
18 functioning BIDs.

With the adoption of the PBID law, a new
funding mechanism for Downtown and business
communities in California was now allowable.

With the approval of Proposition 218 by the
voters of California in 1996, which amended
Article 13 (d) of the state constitution, property
assessments were required to include an
assessment engineer’s report, required a mail
balloting procedure, and authorized that
“weighted” property owners, or those who paid
higher assessments had greater influence in the
establishment of the district. Instead of the
process for approval being “one property, one
vote,” it became “one dollar, one vote.” Thus, the
higher amount of contribution, the greater vote
one might have in the formation process.

More importantly, the new amendment to the
state constitution required a nexus between
what a property owner paid and what they
received and stated clearly that no state or
federal properties would be exempted unless
they could demonstrate by “clear and
convincing evidence” that they would not derive
benefits. Property owners could only be
assessed for “special benefits” or those programs
and activities that were over and above general
benefits that were currently being provided by a
municipal or county government.

This meant that cities with city halls located in or
large property holdings within downtowns, they
became the largest property owners and
therefore the “weighted property owners” in
their respective locations.

The PBID law has a large fundamental flaw in
that it requires a petition signed by 50% of the
weighted property owners simply to trigger the
Prop 218 required mail ballot procedure. If

49.5% of the property owners signed a petition
and they couldn’t generate any more signatures,
the PBID would never get the support it needed
to enter into the City governed mail ballot
procedure. Therefore, due to the lack of support
by over half of the weighted constituents (by
dollar amount) the district formation effort
would collapse.

Two other issues that have made the PBID law
somewhat obsolete, besides the incredibly high
petition required, were the maximum term of the
district as well as the name of the legislation. In
the end, the PBID law benefits formation
consultants, due to the fact that the district can
be formed for only 5 years the first term and then
a maximum of 10 years for each renewal.

The other problem with the PBID law is the
name: Property Business Improvement District.

Downtowns nationwide are increasingly
becoming residential with housing embedded in
downtowns have become the most prevalent
land use of non-historic building parcels.

Downtowns, particularly in the 21st century, are
becoming neighborhoods with new condo and
apartment developments creating new demands
due to things such as walkability, parks, plazas,
and other neighborhood amenities.

The one issue the legislation did correctly was to
allow for Charter Cities to create their owner
methods of assessment, which almost 25 cities
in the state have done. The PBID Act states:
36603. Nothing in this part is intended to
preempt the authority of a charter city to
adopt ordinances providing for a different
method of levying assessments for similar or
additional purposes from those set forth in
this part. A property and business
improvement district created pursuant to this
part is expressly exempt from the provisions
of the Special Assessment Investigation,
Limitation and Majority Protest Act of 1931
(Division 4 (commencing with Section
2800)).

Since El Cajon is a Charter City, they have the
right to create a new enabling ordinance that
would be applicable City wide and could impact
the name of the district (not only business
improvement), the term and the petition
threshold. A proposed new enabling ordinance
has already been included in this report,
attachment 1.

New City Standards:

New City America is a national company based
in San Diego’s Little Italy that has successfully
formed 93 similar districts (PBIDs, Community
Benefit Districts, BIDs, and Tourism
Improvement Districts) since 1996. It also
currently manages 6 districts statewide, so it
understands the “A to Z” of how to write a District
plan based upon real world experience and costs
and has been a leader in public space design and
development in the districts it has managed.

Over the past 25 years, New City America staff
has come up with a five-point check list for
ensuring that property assessment districts
formed have the greatest chance of producing
tangible results to its constituents as well as to
the cities in which it works. One of the best
examples of the success of this effort and
utilizing the “New City Standards” approach has
been in Downtown San Diego’s Little Italy. Little
Italy has grown into one of the most dynamic
and successful business communities and
neighborhoods nationwide, demonstrated by
not losing any of its over 70 restaurants, café,
bars or eateries, due to the devasting impact of
the pandemic. Little Italy emerged from the
pandemic stronger than ever and is on a
trajectory for additional dynamic growth.

Another good example in the County is to be
found in Downtown Chula Vista, which New City
America has managed over the past 2 years. We
have restructured that organization, converted
its Owners Association to a 501c3 and launched
a series of new public spaces and great events in
that Downtown.

The five points of the New City Standards include
the following proven standards:

1. The Importance of Place: The concept of
“Place” has caught on like wildfire through
the articulation of Placemaking arising out of
New York City in the 1980s. At times, places
are old or historic, new and emerging, or are
being re-invented by new mixed-use
development. The key thing is that the Place
must have a “handle,” or it must convey
positive images when someone mentions it.

Places that have little or no public identity are
hard to resurrect, so it is critical that the
leaders in that community know why they
want to improve it and how the Place will be
perceived by the public at large. This is
directly relevant to Downtown El Cajon
which has had a PBID in place for over 25
years now but has yet to establish a clear
identity in the County. The City of El Cajon
has such a “place” in its Downtown.

2. Need for Independent Financing: Many
places falter because they are
undercapitalized, not organized or are
dependent upon non-reoccurring revenue
streams. Places that lack sustainable,
independent, community funding are always
hampered by the inability to take action, due
to not having the financial resources to do
so. The best way to ensure that the district in
question can expedite smooth and dynamic
development is by establishing a sustainable
funding mechanism. That can be through
property assessment districts, use of parking
meter revenues or huge donor contributions.

The best method is to use a combination of
all of those revenue streams. Downtown El
Cajon has a PBID and that means that this
Downtown has met that condition.

3. Creating and Overseeing an
Entrepreneurial District Management
Corporation: District management
corporations are the non-profit entities that
are under contract with cities managing
Downtown property assessment districts or
BIDs. Those non-profits usually take the
form of mutual benefit corporations (501c6)
or public benefit corporations, (501c3). New
City America knows that the work of the
district management corporation is best
done through a new 501c3 since the work of
the district is similar to the old “Improvement
Associations” created in the early 1900s. The
funding and work is based upon reducing the
“burden of government” by providing and
funding special benefit services in the public
rights of way. By doing so, the district
management corporation is playing a
constructive role of improving not only for
the area that property owners and business
owners but also to the citizens as a whole
within their respective city. The 501c3 also
allows individuals and companies to give
charitable donations to the corporations to
build new public spaces or enhance the
districts through new public improvements.

This was the method that the Rockefeller
Foundation gave to endowing Bryant Park in
New York City in the 1980s. Downtown El
Cajon’s Management Corporation is a 501c6
(mutual benefit non-profit corporation),
which provides non-charitable benefit to
donors for projects and activities in
Downtown. A restructuring of the Owners
Association into a 501c3 will be one of the
recommendations of this report.

4. Taking Advantage of Politics and Timing:

Politics and timing are critical to the success
of any effort to create a sustainable funding
mechanism for interested Downtown
stakeholders. Since the City Manager’s
office, with Mayoral and Council support,
received the authorization to hire a
consulting firm to review the current status in
Downtown El Cajon, this demonstrates that
the political climate and timing are right in El
Cajon in 2024. The review of the
consultants’ report will take into account the
fact that the Mayor, City Manager’s office and
the City Council seek to have a more
activated Downtown with more
development, more customers and create a
more dynamic Downtown, particularly in a
post COVID environment. That will include
greater outdoor dining options, more
mixed-use development and more
interesting public art and public space
opportunities. The political environment and
the timing is perfect for this re-invention and
reorientation of Downtown based upon the
success and reach of the current PBID as a
funding mechanism for special benefits in
Downtown.

In a recently published magazine, “My El Cajon”,
released by City Manager Graham Mitchell,
stated the following in his introductory
statement called “Open for Business”:
“The adage “evolve or die” resonates not only
in business but also in the vitality of
communities. This principle underscores the
crucial need for constant renewal,
modernization, and revitalization, which are
driven by the lifeblood of economic
development. In recent years, the El Cajon
City Council has prioritized economic
growth, a commitment poised to remain at
the forefront of our agenda.”
“Economic development from a municipal
standpoint, involves aligning property
owners, enthusiastic developers, businesses,
and resources to cultivate investment
opportunities within our community. This
infusion of capital and effort should yield
community benefits, including employment
opportunities, local government revenue and
enhanced access to goods and services. In
essence economic development fuels, the
growth of our local economy, ultimately
enhancing the quality of life for El Cajon’s
residents, workforce, and visitors.”
“Given these constraints, you might wonder
how a city can drive economic development.

The answer is “Quite a lot.” Cities can craft
economic development strategies that
outline objectives, leveraging their
community’s competitive strengths and
weaknesses. Our City Council recently
approved the El Cajon Economic
Development Strategic Plan, charting a new
course toward prosperity.”
“Cities can also adopt policies and
procedures that empower business and
entrepreneurship while minimizing obstacles
to development.”
This statement from the City Manager
demonstrates that the “politics and timing” are
right to re-invent Downtown El Cajon.

5. Being “Results Oriented” and Integrating
Public Spaces Throughout the District
Management Process: Much of the credit for
the concept of Placemaking is based upon
the excellent work done from the 1980s up
to the pandemic, led Project for Public
Spaces. The person who inspired and led
placemaking as an international movement
was Fred Kent, the former CEO. Fred and his
partner and wife Cathy held international
conferences to promote how public spaces
should be envisioned and implemented.

Fred believed that 80% of the success of any
public space was based upon management.

Marco Li Mandri, President of New City
America was on the Leadership Council of
the Project for Public Spaces and put this
concept to work through the development
of successful fundraising techniques and
activation of the public spaces in Little Italy
and the other districts they manage. Fred
and Cathy’s work has been replicated
throughout the nation. Downtown El Cajon
has some very good and yet to be activated
public spaces which can become a great
opportunity for attracting new capital to
Downtown since these public spaces,
commons and plazas become new
Downtown residents’ backyard when they
move into new condos and apartments in
Downtown.

The most successful downtowns, in our opinion,
will be the ones that support and implement the
New City Standards models or something
similar. The movement towards successful
Downtowns and City Centers will increasingly be
based upon following successful models in
Board makeup, Board Committees,
transparency, entrepreneurial partnerships with
new developers who collectively understand the
great value in creating and managing new public
spaces within the districts.
[Intentionally Left Blank]
I. INTRODUCTION, NEW CITY

STANDARDS
Overview of Downtown PBID and General
Overview of Financing Downtown
Improvements:

Downtown El Cajon’s PBID has been in place
since 1997, around 2 years after the Property
Business Improvement District Act was approved
by the California State Legislature in 1994.

California was late to the game, relative to other
states, in adopting a Downtown financing
mechanism based upon property assessments,
not business license assessments. Previously,
business communities in the state only had the
Parking and Business Improvement District Act
in the Streets and Highway Code to help
business communities compete against the
impact of shopping malls. The original BID law
only impacted business license holders and the
formation of the district was only based upon
“majority protest.” Under the old BID law, City
Councils could create these districts on their
own initiative. In the late 1960s until 1994, these
were the districts of choice for business districts
in California with over 300 being formed in that
period.

The problem with these districts is that they were
based upon business license holders and every
city has a different method for levying business
licenses or taxes on business owners. In Los
Angeles, businesses licenses are based upon
gross receipts. In San Diego, businesses pay into
BIDs based upon their number of employees.

Throughout the 450 cities in the state, no two
cities use the same methodology to have
businesses pay for their licenses. Also, if there
was a vacancy, no revenue would be generated
from that building.

BIDs under this older system were chronically
undercapitalized, generated only enough money
usually to pay staff and had no other sustainable
revenues to help pay for improvements. The City
of San Diego led the way with these business
license-based districts having, at one time, up to
18 functioning BIDs.

With the adoption of the PBID law, a new
funding mechanism for Downtown and business
communities in California was now allowable.

With the approval of Proposition 218 by the
voters of California in 1996, which amended
Article 13 (d) of the state constitution, property
assessments were required to include an
assessment engineer’s report, required a mail
balloting procedure, and authorized that
“weighted” property owners, or those who paid
higher assessments had greater influence in the
establishment of the district. Instead of the
process for approval being “one property, one
vote,” it became “one dollar, one vote.” Thus, the
higher amount of contribution, the greater vote
one might have in the formation process.

More importantly, the new amendment to the
state constitution required a nexus between
what a property owner paid and what they
received and stated clearly that no state or
federal properties would be exempted unless
they could demonstrate by “clear and
convincing evidence” that they would not derive
benefits. Property owners could only be
assessed for “special benefits” or those programs
and activities that were over and above general
benefits that were currently being provided by a
municipal or county government.

This meant that cities with city halls located in or
large property holdings within downtowns, they
became the largest property owners and
therefore the “weighted property owners” in
their respective locations.

The PBID law has a large fundamental flaw in
that it requires a petition signed by 50% of the
weighted property owners simply to trigger the
Prop 218 required mail ballot procedure. If

49.5% of the property owners signed a petition
and they couldn’t generate any more signatures,
the PBID would never get the support it needed
to enter into the City governed mail ballot
procedure. Therefore, due to the lack of support
by over half of the weighted constituents (by
dollar amount) the district formation effort
would collapse.

Two other issues that have made the PBID law
somewhat obsolete, besides the incredibly high
petition required, were the maximum term of the
district as well as the name of the legislation. In
the end, the PBID law benefits formation
consultants, due to the fact that the district can
be formed for only 5 years the first term and then
a maximum of 10 years for each renewal.

The other problem with the PBID law is the
name: Property Business Improvement District.

Downtowns nationwide are increasingly
becoming residential with housing embedded in
downtowns have become the most prevalent
land use of non-historic building parcels.

Downtowns, particularly in the 21st century, are
becoming neighborhoods with new condo and
apartment developments creating new demands
due to things such as walkability, parks, plazas,
and other neighborhood amenities.

The one issue the legislation did correctly was to
allow for Charter Cities to create their owner
methods of assessment, which almost 25 cities
in the state have done. The PBID Act states:
36603. Nothing in this part is intended to
preempt the authority of a charter city to
adopt ordinances providing for a different
method of levying assessments for similar or
additional purposes from those set forth in
this part. A property and business
improvement district created pursuant to this
part is expressly exempt from the provisions
of the Special Assessment Investigation,
Limitation and Majority Protest Act of 1931
(Division 4 (commencing with Section
2800)).

Since El Cajon is a Charter City, they have the
right to create a new enabling ordinance that
would be applicable City wide and could impact
the name of the district (not only business
improvement), the term and the petition
threshold. A proposed new enabling ordinance
has already been included in this report,
attachment 1.

New City Standards:

New City America is a national company based
in San Diego’s Little Italy that has successfully
formed 93 similar districts (PBIDs, Community
Benefit Districts, BIDs, and Tourism
Improvement Districts) since 1996. It also
currently manages 6 districts statewide, so it
understands the “A to Z” of how to write a District
plan based upon real world experience and costs
and has been a leader in public space design and
development in the districts it has managed.

Over the past 25 years, New City America staff
has come up with a five-point check list for
ensuring that property assessment districts
formed have the greatest chance of producing
tangible results to its constituents as well as to
the cities in which it works. One of the best
examples of the success of this effort and
utilizing the “New City Standards” approach has
been in Downtown San Diego’s Little Italy. Little
Italy has grown into one of the most dynamic
and successful business communities and
neighborhoods nationwide, demonstrated by
not losing any of its over 70 restaurants, café,
bars or eateries, due to the devasting impact of
the pandemic. Little Italy emerged from the
pandemic stronger than ever and is on a
trajectory for additional dynamic growth.

Another good example in the County is to be
found in Downtown Chula Vista, which New City
America has managed over the past 2 years. We
have restructured that organization, converted
its Owners Association to a 501c3 and launched
a series of new public spaces and great events in
that Downtown.

The five points of the New City Standards include
the following proven standards:

1. The Importance of Place: The concept of
“Place” has caught on like wildfire through
the articulation of Placemaking arising out of
New York City in the 1980s. At times, places
are old or historic, new and emerging, or are
being re-invented by new mixed-use
development. The key thing is that the Place
must have a “handle,” or it must convey
positive images when someone mentions it.

Places that have little or no public identity are
hard to resurrect, so it is critical that the
leaders in that community know why they
want to improve it and how the Place will be
perceived by the public at large. This is
directly relevant to Downtown El Cajon
which has had a PBID in place for over 25
years now but has yet to establish a clear
identity in the County. The City of El Cajon
has such a “place” in its Downtown.

2. Need for Independent Financing: Many
places falter because they are
undercapitalized, not organized or are
dependent upon non-reoccurring revenue
streams. Places that lack sustainable,
independent, community funding are always
hampered by the inability to take action, due
to not having the financial resources to do
so. The best way to ensure that the district in
question can expedite smooth and dynamic
development is by establishing a sustainable
funding mechanism. That can be through
property assessment districts, use of parking
meter revenues or huge donor contributions.

The best method is to use a combination of
all of those revenue streams. Downtown El
Cajon has a PBID and that means that this
Downtown has met that condition.

3. Creating and Overseeing an
Entrepreneurial District Management
Corporation: District management
corporations are the non-profit entities that
are under contract with cities managing
Downtown property assessment districts or
BIDs. Those non-profits usually take the
form of mutual benefit corporations (501c6)
or public benefit corporations, (501c3). New
City America knows that the work of the
district management corporation is best
done through a new 501c3 since the work of
the district is similar to the old “Improvement
Associations” created in the early 1900s. The
funding and work is based upon reducing the
“burden of government” by providing and
funding special benefit services in the public
rights of way. By doing so, the district
management corporation is playing a
constructive role of improving not only for
the area that property owners and business
owners but also to the citizens as a whole
within their respective city. The 501c3 also
allows individuals and companies to give
charitable donations to the corporations to
build new public spaces or enhance the
districts through new public improvements.

This was the method that the Rockefeller
Foundation gave to endowing Bryant Park in
New York City in the 1980s. Downtown El
Cajon’s Management Corporation is a 501c6
(mutual benefit non-profit corporation),
which provides non-charitable benefit to
donors for projects and activities in
Downtown. A restructuring of the Owners
Association into a 501c3 will be one of the
recommendations of this report.

4. Taking Advantage of Politics and Timing:

Politics and timing are critical to the success
of any effort to create a sustainable funding
mechanism for interested Downtown
stakeholders. Since the City Manager’s
office, with Mayoral and Council support,
received the authorization to hire a
consulting firm to review the current status in
Downtown El Cajon, this demonstrates that
the political climate and timing are right in El
Cajon in 2024. The review of the
consultants’ report will take into account the
fact that the Mayor, City Manager’s office and
the City Council seek to have a more
activated Downtown with more
development, more customers and create a
more dynamic Downtown, particularly in a
post COVID environment. That will include
greater outdoor dining options, more
mixed-use development and more
interesting public art and public space
opportunities. The political environment and
the timing is perfect for this re-invention and
reorientation of Downtown based upon the
success and reach of the current PBID as a
funding mechanism for special benefits in
Downtown.

In a recently published magazine, “My El Cajon”,
released by City Manager Graham Mitchell,
stated the following in his introductory
statement called “Open for Business”:
“The adage “evolve or die” resonates not only
in business but also in the vitality of
communities. This principle underscores the
crucial need for constant renewal,
modernization, and revitalization, which are
driven by the lifeblood of economic
development. In recent years, the El Cajon
City Council has prioritized economic
growth, a commitment poised to remain at
the forefront of our agenda.”
“Economic development from a municipal
standpoint, involves aligning property
owners, enthusiastic developers, businesses,
and resources to cultivate investment
opportunities within our community. This
infusion of capital and effort should yield
community benefits, including employment
opportunities, local government revenue and
enhanced access to goods and services. In
essence economic development fuels, the
growth of our local economy, ultimately
enhancing the quality of life for El Cajon’s
residents, workforce, and visitors.”
“Given these constraints, you might wonder
how a city can drive economic development.

The answer is “Quite a lot.” Cities can craft
economic development strategies that
outline objectives, leveraging their
community’s competitive strengths and
weaknesses. Our City Council recently
approved the El Cajon Economic
Development Strategic Plan, charting a new
course toward prosperity.”
“Cities can also adopt policies and
procedures that empower business and
entrepreneurship while minimizing obstacles
to development.”
This statement from the City Manager
demonstrates that the “politics and timing” are
right to re-invent Downtown El Cajon.

5. Being “Results Oriented” and Integrating
Public Spaces Throughout the District
Management Process: Much of the credit for
the concept of Placemaking is based upon
the excellent work done from the 1980s up
to the pandemic, led Project for Public
Spaces. The person who inspired and led
placemaking as an international movement
was Fred Kent, the former CEO. Fred and his
partner and wife Cathy held international
conferences to promote how public spaces
should be envisioned and implemented.

Fred believed that 80% of the success of any
public space was based upon management.

Marco Li Mandri, President of New City
America was on the Leadership Council of
the Project for Public Spaces and put this
concept to work through the development
of successful fundraising techniques and
activation of the public spaces in Little Italy
and the other districts they manage. Fred
and Cathy’s work has been replicated
throughout the nation. Downtown El Cajon
has some very good and yet to be activated
public spaces which can become a great
opportunity for attracting new capital to
Downtown since these public spaces,
commons and plazas become new
Downtown residents’ backyard when they
move into new condos and apartments in
Downtown.

The most successful downtowns, in our opinion,
will be the ones that support and implement the
New City Standards models or something
similar. The movement towards successful
Downtowns and City Centers will increasingly be
based upon following successful models in
Board makeup, Board Committees,
transparency, entrepreneurial partnerships with
new developers who collectively understand the
great value in creating and managing new public
spaces within the districts.

TABLE OF CONTENTS
Introduction, New City Standard 2-5

Review of Past Reports on Downtown: 6-10
a. El Cajon Blue Ribbon Commission report
b. Mixed Use Overlay Zones
c. Economic Development Strategic Plan
d. Transit District Specific Plan
e. Downtown El Cajon Business Partners, Inc. - 2022
Management District Plan review 11-16
Recommendation on Expansion of Board 17
Proposed Ordinances for Consideration: 18
a. El Cajon Community Benefit District Ordinance
b. Sidewalk Vending

Maps of Downtown El Cajon: 19-21
a. Trees
b. Street lights
c. Trash receptacles
Board/Committee Structure 22-23
Conclusion 24-29

ATTACHMENTS

1. Proposed new Community Benefit District
Enabling Ordinance A1-A4

2. Proposed Sidewalk Vending Ordinance A5-A21

3. Proposed Busker Ordinance A22-28
I.

II.

III.

IV.

V.

VI.

VII.

VIII.

I. INTRODUCTION, NEW CITY

STANDARDS
Overview of Downtown PBID and General
Overview of Financing Downtown
Improvements:

Downtown El Cajon’s PBID has been in place
since 1997, around 2 years after the Property
Business Improvement District Act was approved
by the California State Legislature in 1994.

California was late to the game, relative to other
states, in adopting a Downtown financing
mechanism based upon property assessments,
not business license assessments. Previously,
business communities in the state only had the
Parking and Business Improvement District Act
in the Streets and Highway Code to help
business communities compete against the
impact of shopping malls. The original BID law
only impacted business license holders and the
formation of the district was only based upon
“majority protest.” Under the old BID law, City
Councils could create these districts on their
own initiative. In the late 1960s until 1994, these
were the districts of choice for business districts
in California with over 300 being formed in that
period.

The problem with these districts is that they were
based upon business license holders and every
city has a different method for levying business
licenses or taxes on business owners. In Los
Angeles, businesses licenses are based upon
gross receipts. In San Diego, businesses pay into
BIDs based upon their number of employees.

Throughout the 450 cities in the state, no two
cities use the same methodology to have
businesses pay for their licenses. Also, if there
was a vacancy, no revenue would be generated
from that building.

BIDs under this older system were chronically
undercapitalized, generated only enough money
usually to pay staff and had no other sustainable
revenues to help pay for improvements. The City
of San Diego led the way with these business
license-based districts having, at one time, up to
18 functioning BIDs.

With the adoption of the PBID law, a new
funding mechanism for Downtown and business
communities in California was now allowable.

With the approval of Proposition 218 by the
voters of California in 1996, which amended
Article 13 (d) of the state constitution, property
assessments were required to include an
assessment engineer’s report, required a mail
balloting procedure, and authorized that
“weighted” property owners, or those who paid
higher assessments had greater influence in the
establishment of the district. Instead of the
process for approval being “one property, one
vote,” it became “one dollar, one vote.” Thus, the
higher amount of contribution, the greater vote
one might have in the formation process.

More importantly, the new amendment to the
state constitution required a nexus between
what a property owner paid and what they
received and stated clearly that no state or
federal properties would be exempted unless
they could demonstrate by “clear and
convincing evidence” that they would not derive
benefits. Property owners could only be
assessed for “special benefits” or those programs
and activities that were over and above general
benefits that were currently being provided by a
municipal or county government.

This meant that cities with city halls located in or
large property holdings within downtowns, they
became the largest property owners and
therefore the “weighted property owners” in
their respective locations.

The PBID law has a large fundamental flaw in
that it requires a petition signed by 50% of the
weighted property owners simply to trigger the
Prop 218 required mail ballot procedure. If

49.5% of the property owners signed a petition
and they couldn’t generate any more signatures,
the PBID would never get the support it needed
to enter into the City governed mail ballot
procedure. Therefore, due to the lack of support
by over half of the weighted constituents (by
dollar amount) the district formation effort
would collapse.

Two other issues that have made the PBID law
somewhat obsolete, besides the incredibly high
petition required, were the maximum term of the
PAGE 2
district as well as the name of the legislation. In
the end, the PBID law benefits formation
consultants, due to the fact that the district can
be formed for only 5 years the first term and then
a maximum of 10 years for each renewal.

The other problem with the PBID law is the
name: Property Business Improvement District.

Downtowns nationwide are increasingly
becoming residential with housing embedded in
downtowns have become the most prevalent
land use of non-historic building parcels.

Downtowns, particularly in the 21st century, are
becoming neighborhoods with new condo and
apartment developments creating new demands
due to things such as walkability, parks, plazas,
and other neighborhood amenities.

The one issue the legislation did correctly was to
allow for Charter Cities to create their owner
methods of assessment, which almost 25 cities
in the state have done. The PBID Act states:
36603. Nothing in this part is intended to
preempt the authority of a charter city to
adopt ordinances providing for a different
method of levying assessments for similar or
additional purposes from those set forth in
this part. A property and business
improvement district created pursuant to this
part is expressly exempt from the provisions
of the Special Assessment Investigation,
Limitation and Majority Protest Act of 1931
(Division 4 (commencing with Section
2800)).

Since El Cajon is a Charter City, they have the
right to create a new enabling ordinance that
would be applicable City wide and could impact
the name of the district (not only business
improvement), the term and the petition
threshold. A proposed new enabling ordinance
has already been included in this report,
attachment 1.

New City Standards:

New City America is a national company based
in San Diego’s Little Italy that has successfully
formed 93 similar districts (PBIDs, Community
Benefit Districts, BIDs, and Tourism
Improvement Districts) since 1996. It also
currently manages 6 districts statewide, so it
understands the “A to Z” of how to write a District
plan based upon real world experience and costs
and has been a leader in public space design and
development in the districts it has managed.

Over the past 25 years, New City America staff
has come up with a five-point check list for
ensuring that property assessment districts
formed have the greatest chance of producing
tangible results to its constituents as well as to
the cities in which it works. One of the best
examples of the success of this effort and
utilizing the “New City Standards” approach has
been in Downtown San Diego’s Little Italy. Little
Italy has grown into one of the most dynamic
and successful business communities and
neighborhoods nationwide, demonstrated by
not losing any of its over 70 restaurants, café,
bars or eateries, due to the devasting impact of
the pandemic. Little Italy emerged from the
pandemic stronger than ever and is on a
trajectory for additional dynamic growth.

Another good example in the County is to be
found in Downtown Chula Vista, which New City
America has managed over the past 2 years. We
have restructured that organization, converted
its Owners Association to a 501c3 and launched
a series of new public spaces and great events in
that Downtown.

The five points of the New City Standards include
the following proven standards:

1. The Importance of Place: The concept of
“Place” has caught on like wildfire through
the articulation of Placemaking arising out of
New York City in the 1980s. At times, places
are old or historic, new and emerging, or are
being re-invented by new mixed-use
development. The key thing is that the Place
must have a “handle,” or it must convey
positive images when someone mentions it.

Places that have little or no public identity are
hard to resurrect, so it is critical that the
leaders in that community know why they
want to improve it and how the Place will be
perceived by the public at large. This is
directly relevant to Downtown El Cajon
which has had a PBID in place for over 25
years now but has yet to establish a clear
identity in the County. The City of El Cajon
has such a “place” in its Downtown.

2. Need for Independent Financing: Many
places falter because they are
undercapitalized, not organized or are
dependent upon non-reoccurring revenue
streams. Places that lack sustainable,
independent, community funding are always
hampered by the inability to take action, due
to not having the financial resources to do
so. The best way to ensure that the district in
question can expedite smooth and dynamic
development is by establishing a sustainable
funding mechanism. That can be through
property assessment districts, use of parking
meter revenues or huge donor contributions.

The best method is to use a combination of
all of those revenue streams. Downtown El
Cajon has a PBID and that means that this
Downtown has met that condition.

3. Creating and Overseeing an
Entrepreneurial District Management
Corporation: District management
corporations are the non-profit entities that
are under contract with cities managing
Downtown property assessment districts or
BIDs. Those non-profits usually take the
form of mutual benefit corporations (501c6)
or public benefit corporations, (501c3). New
City America knows that the work of the
district management corporation is best
done through a new 501c3 since the work of
the district is similar to the old “Improvement
Associations” created in the early 1900s. The
funding and work is based upon reducing the
“burden of government” by providing and
funding special benefit services in the public
rights of way. By doing so, the district
management corporation is playing a
constructive role of improving not only for
the area that property owners and business
owners but also to the citizens as a whole
within their respective city. The 501c3 also
allows individuals and companies to give
charitable donations to the corporations to
build new public spaces or enhance the
districts through new public improvements.

This was the method that the Rockefeller
Foundation gave to endowing Bryant Park in
New York City in the 1980s. Downtown El
Cajon’s Management Corporation is a 501c6
(mutual benefit non-profit corporation),
which provides non-charitable benefit to
donors for projects and activities in
Downtown. A restructuring of the Owners
Association into a 501c3 will be one of the
recommendations of this report.

4. Taking Advantage of Politics and Timing:

Politics and timing are critical to the success
of any effort to create a sustainable funding
mechanism for interested Downtown
stakeholders. Since the City Manager’s
office, with Mayoral and Council support,
received the authorization to hire a
consulting firm to review the current status in
Downtown El Cajon, this demonstrates that
the political climate and timing are right in El
Cajon in 2024. The review of the
consultants’ report will take into account the
fact that the Mayor, City Manager’s office and
the City Council seek to have a more
activated Downtown with more
development, more customers and create a
more dynamic Downtown, particularly in a
post COVID environment. That will include
greater outdoor dining options, more
mixed-use development and more
interesting public art and public space
opportunities. The political environment and
the timing is perfect for this re-invention and
reorientation of Downtown based upon the
success and reach of the current PBID as a
funding mechanism for special benefits in
Downtown.

In a recently published magazine, “My El Cajon”,
released by City Manager Graham Mitchell,
stated the following in his introductory
statement called “Open for Business”:
“The adage “evolve or die” resonates not only
in business but also in the vitality of
communities. This principle underscores the
crucial need for constant renewal,
modernization, and revitalization, which are
driven by the lifeblood of economic
development. In recent years, the El Cajon
City Council has prioritized economic
growth, a commitment poised to remain at
the forefront of our agenda.”
“Economic development from a municipal
standpoint, involves aligning property
owners, enthusiastic developers, businesses,
and resources to cultivate investment
opportunities within our community. This
infusion of capital and effort should yield
community benefits, including employment
opportunities, local government revenue and
enhanced access to goods and services. In
essence economic development fuels, the
growth of our local economy, ultimately
enhancing the quality of life for El Cajon’s
residents, workforce, and visitors.”
“Given these constraints, you might wonder
how a city can drive economic development.

The answer is “Quite a lot.” Cities can craft
economic development strategies that
outline objectives, leveraging their
community’s competitive strengths and
weaknesses. Our City Council recently
approved the El Cajon Economic
Development Strategic Plan, charting a new
course toward prosperity.”
“Cities can also adopt policies and
procedures that empower business and
entrepreneurship while minimizing obstacles
to development.”
This statement from the City Manager
demonstrates that the “politics and timing” are
right to re-invent Downtown El Cajon.

5. Being “Results Oriented” and Integrating
Public Spaces Throughout the District
Management Process: Much of the credit for
the concept of Placemaking is based upon
the excellent work done from the 1980s up
to the pandemic, led Project for Public
Spaces. The person who inspired and led
placemaking as an international movement
was Fred Kent, the former CEO. Fred and his
partner and wife Cathy held international
conferences to promote how public spaces
should be envisioned and implemented.

Fred believed that 80% of the success of any
public space was based upon management.

Marco Li Mandri, President of New City
America was on the Leadership Council of
the Project for Public Spaces and put this
concept to work through the development
of successful fundraising techniques and
activation of the public spaces in Little Italy
and the other districts they manage. Fred
and Cathy’s work has been replicated
throughout the nation. Downtown El Cajon
has some very good and yet to be activated
public spaces which can become a great
opportunity for attracting new capital to
Downtown since these public spaces,
commons and plazas become new
Downtown residents’ backyard when they
move into new condos and apartments in
Downtown.

The most successful downtowns, in our opinion,
will be the ones that support and implement the
New City Standards models or something
similar. The movement towards successful
Downtowns and City Centers will increasingly be
based upon following successful models in
Board makeup, Board Committees,
transparency, entrepreneurial partnerships with
new developers who collectively understand the
great value in creating and managing new public
spaces within the districts.

I. INTRODUCTION, NEW CITY

STANDARDS
Overview of Downtown PBID and General
Overview of Financing Downtown
Improvements:

Downtown El Cajon’s PBID has been in place
since 1997, around 2 years after the Property
Business Improvement District Act was approved
by the California State Legislature in 1994.

California was late to the game, relative to other
states, in adopting a Downtown financing
mechanism based upon property assessments,
not business license assessments. Previously,
business communities in the state only had the
Parking and Business Improvement District Act
in the Streets and Highway Code to help
business communities compete against the
impact of shopping malls. The original BID law
only impacted business license holders and the
formation of the district was only based upon
“majority protest.” Under the old BID law, City
Councils could create these districts on their
own initiative. In the late 1960s until 1994, these
were the districts of choice for business districts
in California with over 300 being formed in that
period.

The problem with these districts is that they were
based upon business license holders and every
city has a different method for levying business
licenses or taxes on business owners. In Los
Angeles, businesses licenses are based upon
gross receipts. In San Diego, businesses pay into
BIDs based upon their number of employees.

Throughout the 450 cities in the state, no two
cities use the same methodology to have
businesses pay for their licenses. Also, if there
was a vacancy, no revenue would be generated
from that building.

BIDs under this older system were chronically
undercapitalized, generated only enough money
usually to pay staff and had no other sustainable
revenues to help pay for improvements. The City
of San Diego led the way with these business
license-based districts having, at one time, up to
18 functioning BIDs.

With the adoption of the PBID law, a new
funding mechanism for Downtown and business
communities in California was now allowable.

With the approval of Proposition 218 by the
voters of California in 1996, which amended
Article 13 (d) of the state constitution, property
assessments were required to include an
assessment engineer’s report, required a mail
balloting procedure, and authorized that
“weighted” property owners, or those who paid
higher assessments had greater influence in the
establishment of the district. Instead of the
process for approval being “one property, one
vote,” it became “one dollar, one vote.” Thus, the
higher amount of contribution, the greater vote
one might have in the formation process.

More importantly, the new amendment to the
state constitution required a nexus between
what a property owner paid and what they
received and stated clearly that no state or
federal properties would be exempted unless
they could demonstrate by “clear and
convincing evidence” that they would not derive
benefits. Property owners could only be
assessed for “special benefits” or those programs
and activities that were over and above general
benefits that were currently being provided by a
municipal or county government.

This meant that cities with city halls located in or
large property holdings within downtowns, they
became the largest property owners and
therefore the “weighted property owners” in
their respective locations.

The PBID law has a large fundamental flaw in
that it requires a petition signed by 50% of the
weighted property owners simply to trigger the
Prop 218 required mail ballot procedure. If

49.5% of the property owners signed a petition
and they couldn’t generate any more signatures,
the PBID would never get the support it needed
to enter into the City governed mail ballot
procedure. Therefore, due to the lack of support
by over half of the weighted constituents (by
dollar amount) the district formation effort
would collapse.

Two other issues that have made the PBID law
somewhat obsolete, besides the incredibly high
petition required, were the maximum term of the
district as well as the name of the legislation. In
the end, the PBID law benefits formation
consultants, due to the fact that the district can
be formed for only 5 years the first term and then
a maximum of 10 years for each renewal.

The other problem with the PBID law is the
name: Property Business Improvement District.

Downtowns nationwide are increasingly
becoming residential with housing embedded in
downtowns have become the most prevalent
land use of non-historic building parcels.

Downtowns, particularly in the 21st century, are
becoming neighborhoods with new condo and
apartment developments creating new demands
due to things such as walkability, parks, plazas,
and other neighborhood amenities.

The one issue the legislation did correctly was to
allow for Charter Cities to create their owner
methods of assessment, which almost 25 cities
in the state have done. The PBID Act states:
36603. Nothing in this part is intended to
preempt the authority of a charter city to
adopt ordinances providing for a different
method of levying assessments for similar or
additional purposes from those set forth in
this part. A property and business
improvement district created pursuant to this
part is expressly exempt from the provisions
of the Special Assessment Investigation,
Limitation and Majority Protest Act of 1931
(Division 4 (commencing with Section
2800)).

Since El Cajon is a Charter City, they have the
right to create a new enabling ordinance that
would be applicable City wide and could impact
the name of the district (not only business
improvement), the term and the petition
threshold. A proposed new enabling ordinance
has already been included in this report,
attachment 1.

New City Standards:

New City America is a national company based
in San Diego’s Little Italy that has successfully
formed 93 similar districts (PBIDs, Community
Benefit Districts, BIDs, and Tourism
Improvement Districts) since 1996. It also
currently manages 6 districts statewide, so it
understands the “A to Z” of how to write a District
plan based upon real world experience and costs
and has been a leader in public space design and
development in the districts it has managed.

Over the past 25 years, New City America staff
has come up with a five-point check list for
ensuring that property assessment districts
formed have the greatest chance of producing
tangible results to its constituents as well as to
the cities in which it works. One of the best
examples of the success of this effort and
utilizing the “New City Standards” approach has
been in Downtown San Diego’s Little Italy. Little
Italy has grown into one of the most dynamic
and successful business communities and
neighborhoods nationwide, demonstrated by
not losing any of its over 70 restaurants, café,
bars or eateries, due to the devasting impact of
the pandemic. Little Italy emerged from the
pandemic stronger than ever and is on a
trajectory for additional dynamic growth.

Another good example in the County is to be
found in Downtown Chula Vista, which New City
America has managed over the past 2 years. We
have restructured that organization, converted
its Owners Association to a 501c3 and launched
a series of new public spaces and great events in
that Downtown.

The five points of the New City Standards include
the following proven standards:

1. The Importance of Place: The concept of
“Place” has caught on like wildfire through
the articulation of Placemaking arising out of
New York City in the 1980s. At times, places
are old or historic, new and emerging, or are
being re-invented by new mixed-use
development. The key thing is that the Place
must have a “handle,” or it must convey
positive images when someone mentions it.

Places that have little or no public identity are
hard to resurrect, so it is critical that the
leaders in that community know why they
want to improve it and how the Place will be
perceived by the public at large. This is
directly relevant to Downtown El Cajon
which has had a PBID in place for over 25
years now but has yet to establish a clear
PAGE 3
identity in the County. The City of El Cajon
has such a “place” in its Downtown.

2. Need for Independent Financing: Many
places falter because they are
undercapitalized, not organized or are
dependent upon non-reoccurring revenue
streams. Places that lack sustainable,
independent, community funding are always
hampered by the inability to take action, due
to not having the financial resources to do
so. The best way to ensure that the district in
question can expedite smooth and dynamic
development is by establishing a sustainable
funding mechanism. That can be through
property assessment districts, use of parking
meter revenues or huge donor contributions.

The best method is to use a combination of
all of those revenue streams. Downtown El
Cajon has a PBID and that means that this
Downtown has met that condition.

3. Creating and Overseeing an
Entrepreneurial District Management
Corporation: District management
corporations are the non-profit entities that
are under contract with cities managing
Downtown property assessment districts or
BIDs. Those non-profits usually take the
form of mutual benefit corporations (501c6)
or public benefit corporations, (501c3). New
City America knows that the work of the
district management corporation is best
done through a new 501c3 since the work of
the district is similar to the old “Improvement
Associations” created in the early 1900s. The
funding and work is based upon reducing the
“burden of government” by providing and
funding special benefit services in the public
rights of way. By doing so, the district
management corporation is playing a
constructive role of improving not only for
the area that property owners and business
owners but also to the citizens as a whole
within their respective city. The 501c3 also
allows individuals and companies to give
charitable donations to the corporations to
build new public spaces or enhance the
districts through new public improvements.

This was the method that the Rockefeller
Foundation gave to endowing Bryant Park in
New York City in the 1980s. Downtown El
Cajon’s Management Corporation is a 501c6
(mutual benefit non-profit corporation),
which provides non-charitable benefit to
donors for projects and activities in
Downtown. A restructuring of the Owners
Association into a 501c3 will be one of the
recommendations of this report.

4. Taking Advantage of Politics and Timing:

Politics and timing are critical to the success
of any effort to create a sustainable funding
mechanism for interested Downtown
stakeholders. Since the City Manager’s
office, with Mayoral and Council support,
received the authorization to hire a
consulting firm to review the current status in
Downtown El Cajon, this demonstrates that
the political climate and timing are right in El
Cajon in 2024. The review of the
consultants’ report will take into account the
fact that the Mayor, City Manager’s office and
the City Council seek to have a more
activated Downtown with more
development, more customers and create a
more dynamic Downtown, particularly in a
post COVID environment. That will include
greater outdoor dining options, more
mixed-use development and more
interesting public art and public space
opportunities. The political environment and
the timing is perfect for this re-invention and
reorientation of Downtown based upon the
success and reach of the current PBID as a
funding mechanism for special benefits in
Downtown.

In a recently published magazine, “My El Cajon”,
released by City Manager Graham Mitchell,
stated the following in his introductory
statement called “Open for Business”:
“The adage “evolve or die” resonates not only
in business but also in the vitality of
communities. This principle underscores the
crucial need for constant renewal,
modernization, and revitalization, which are
driven by the lifeblood of economic
development. In recent years, the El Cajon
City Council has prioritized economic
growth, a commitment poised to remain at
the forefront of our agenda.”
“Economic development from a municipal
standpoint, involves aligning property
owners, enthusiastic developers, businesses,
and resources to cultivate investment
opportunities within our community. This
infusion of capital and effort should yield
community benefits, including employment
opportunities, local government revenue and
enhanced access to goods and services. In
essence economic development fuels, the
growth of our local economy, ultimately
enhancing the quality of life for El Cajon’s
residents, workforce, and visitors.”
“Given these constraints, you might wonder
how a city can drive economic development.

The answer is “Quite a lot.” Cities can craft
economic development strategies that
outline objectives, leveraging their
community’s competitive strengths and
weaknesses. Our City Council recently
approved the El Cajon Economic
Development Strategic Plan, charting a new
course toward prosperity.”
“Cities can also adopt policies and
procedures that empower business and
entrepreneurship while minimizing obstacles
to development.”
This statement from the City Manager
demonstrates that the “politics and timing” are
right to re-invent Downtown El Cajon.

5. Being “Results Oriented” and Integrating
Public Spaces Throughout the District
Management Process: Much of the credit for
the concept of Placemaking is based upon
the excellent work done from the 1980s up
to the pandemic, led Project for Public
Spaces. The person who inspired and led
placemaking as an international movement
was Fred Kent, the former CEO. Fred and his
partner and wife Cathy held international
conferences to promote how public spaces
should be envisioned and implemented.

Fred believed that 80% of the success of any
public space was based upon management.

Marco Li Mandri, President of New City
America was on the Leadership Council of
the Project for Public Spaces and put this
concept to work through the development
of successful fundraising techniques and
activation of the public spaces in Little Italy
and the other districts they manage. Fred
and Cathy’s work has been replicated
throughout the nation. Downtown El Cajon
has some very good and yet to be activated
public spaces which can become a great
opportunity for attracting new capital to
Downtown since these public spaces,
commons and plazas become new
Downtown residents’ backyard when they
move into new condos and apartments in
Downtown.

The most successful downtowns, in our opinion,
will be the ones that support and implement the
New City Standards models or something
similar. The movement towards successful
Downtowns and City Centers will increasingly be
based upon following successful models in
Board makeup, Board Committees,
transparency, entrepreneurial partnerships with
new developers who collectively understand the
great value in creating and managing new public
spaces within the districts.

I. INTRODUCTION, NEW CITY

STANDARDS
Overview of Downtown PBID and General
Overview of Financing Downtown
Improvements:

Downtown El Cajon’s PBID has been in place
since 1997, around 2 years after the Property
Business Improvement District Act was approved
by the California State Legislature in 1994.

California was late to the game, relative to other
states, in adopting a Downtown financing
mechanism based upon property assessments,
not business license assessments. Previously,
business communities in the state only had the
Parking and Business Improvement District Act
in the Streets and Highway Code to help
business communities compete against the
impact of shopping malls. The original BID law
only impacted business license holders and the
formation of the district was only based upon
“majority protest.” Under the old BID law, City
Councils could create these districts on their
own initiative. In the late 1960s until 1994, these
were the districts of choice for business districts
in California with over 300 being formed in that
period.

The problem with these districts is that they were
based upon business license holders and every
city has a different method for levying business
licenses or taxes on business owners. In Los
Angeles, businesses licenses are based upon
gross receipts. In San Diego, businesses pay into
BIDs based upon their number of employees.

Throughout the 450 cities in the state, no two
cities use the same methodology to have
businesses pay for their licenses. Also, if there
was a vacancy, no revenue would be generated
from that building.

BIDs under this older system were chronically
undercapitalized, generated only enough money
usually to pay staff and had no other sustainable
revenues to help pay for improvements. The City
of San Diego led the way with these business
license-based districts having, at one time, up to
18 functioning BIDs.

With the adoption of the PBID law, a new
funding mechanism for Downtown and business
communities in California was now allowable.

With the approval of Proposition 218 by the
voters of California in 1996, which amended
Article 13 (d) of the state constitution, property
assessments were required to include an
assessment engineer’s report, required a mail
balloting procedure, and authorized that
“weighted” property owners, or those who paid
higher assessments had greater influence in the
establishment of the district. Instead of the
process for approval being “one property, one
vote,” it became “one dollar, one vote.” Thus, the
higher amount of contribution, the greater vote
one might have in the formation process.

More importantly, the new amendment to the
state constitution required a nexus between
what a property owner paid and what they
received and stated clearly that no state or
federal properties would be exempted unless
they could demonstrate by “clear and
convincing evidence” that they would not derive
benefits. Property owners could only be
assessed for “special benefits” or those programs
and activities that were over and above general
benefits that were currently being provided by a
municipal or county government.

This meant that cities with city halls located in or
large property holdings within downtowns, they
became the largest property owners and
therefore the “weighted property owners” in
their respective locations.

The PBID law has a large fundamental flaw in
that it requires a petition signed by 50% of the
weighted property owners simply to trigger the
Prop 218 required mail ballot procedure. If

49.5% of the property owners signed a petition
and they couldn’t generate any more signatures,
the PBID would never get the support it needed
to enter into the City governed mail ballot
procedure. Therefore, due to the lack of support
by over half of the weighted constituents (by
dollar amount) the district formation effort
would collapse.

Two other issues that have made the PBID law
somewhat obsolete, besides the incredibly high
petition required, were the maximum term of the
district as well as the name of the legislation. In
the end, the PBID law benefits formation
consultants, due to the fact that the district can
be formed for only 5 years the first term and then
a maximum of 10 years for each renewal.

The other problem with the PBID law is the
name: Property Business Improvement District.

Downtowns nationwide are increasingly
becoming residential with housing embedded in
downtowns have become the most prevalent
land use of non-historic building parcels.

Downtowns, particularly in the 21st century, are
becoming neighborhoods with new condo and
apartment developments creating new demands
due to things such as walkability, parks, plazas,
and other neighborhood amenities.

The one issue the legislation did correctly was to
allow for Charter Cities to create their owner
methods of assessment, which almost 25 cities
in the state have done. The PBID Act states:
36603. Nothing in this part is intended to
preempt the authority of a charter city to
adopt ordinances providing for a different
method of levying assessments for similar or
additional purposes from those set forth in
this part. A property and business
improvement district created pursuant to this
part is expressly exempt from the provisions
of the Special Assessment Investigation,
Limitation and Majority Protest Act of 1931
(Division 4 (commencing with Section
2800)).

Since El Cajon is a Charter City, they have the
right to create a new enabling ordinance that
would be applicable City wide and could impact
the name of the district (not only business
improvement), the term and the petition
threshold. A proposed new enabling ordinance
has already been included in this report,
attachment 1.

New City Standards:

New City America is a national company based
in San Diego’s Little Italy that has successfully
formed 93 similar districts (PBIDs, Community
Benefit Districts, BIDs, and Tourism
Improvement Districts) since 1996. It also
currently manages 6 districts statewide, so it
understands the “A to Z” of how to write a District
plan based upon real world experience and costs
and has been a leader in public space design and
development in the districts it has managed.

Over the past 25 years, New City America staff
has come up with a five-point check list for
ensuring that property assessment districts
formed have the greatest chance of producing
tangible results to its constituents as well as to
the cities in which it works. One of the best
examples of the success of this effort and
utilizing the “New City Standards” approach has
been in Downtown San Diego’s Little Italy. Little
Italy has grown into one of the most dynamic
and successful business communities and
neighborhoods nationwide, demonstrated by
not losing any of its over 70 restaurants, café,
bars or eateries, due to the devasting impact of
the pandemic. Little Italy emerged from the
pandemic stronger than ever and is on a
trajectory for additional dynamic growth.

Another good example in the County is to be
found in Downtown Chula Vista, which New City
America has managed over the past 2 years. We
have restructured that organization, converted
its Owners Association to a 501c3 and launched
a series of new public spaces and great events in
that Downtown.

The five points of the New City Standards include
the following proven standards:

1. The Importance of Place: The concept of
“Place” has caught on like wildfire through
the articulation of Placemaking arising out of
New York City in the 1980s. At times, places
are old or historic, new and emerging, or are
being re-invented by new mixed-use
development. The key thing is that the Place
must have a “handle,” or it must convey
positive images when someone mentions it.

Places that have little or no public identity are
hard to resurrect, so it is critical that the
leaders in that community know why they
want to improve it and how the Place will be
perceived by the public at large. This is
directly relevant to Downtown El Cajon
which has had a PBID in place for over 25
years now but has yet to establish a clear
identity in the County. The City of El Cajon
has such a “place” in its Downtown.

2. Need for Independent Financing: Many
places falter because they are
undercapitalized, not organized or are
dependent upon non-reoccurring revenue
streams. Places that lack sustainable,
independent, community funding are always
hampered by the inability to take action, due
to not having the financial resources to do
so. The best way to ensure that the district in
question can expedite smooth and dynamic
development is by establishing a sustainable
funding mechanism. That can be through
property assessment districts, use of parking
meter revenues or huge donor contributions.

The best method is to use a combination of
all of those revenue streams. Downtown El
Cajon has a PBID and that means that this
Downtown has met that condition.

3. Creating and Overseeing an
Entrepreneurial District Management
Corporation: District management
corporations are the non-profit entities that
are under contract with cities managing
Downtown property assessment districts or
BIDs. Those non-profits usually take the
form of mutual benefit corporations (501c6)
or public benefit corporations, (501c3). New
City America knows that the work of the
district management corporation is best
done through a new 501c3 since the work of
the district is similar to the old “Improvement
Associations” created in the early 1900s. The
funding and work is based upon reducing the
“burden of government” by providing and
funding special benefit services in the public
rights of way. By doing so, the district
management corporation is playing a
constructive role of improving not only for
the area that property owners and business
owners but also to the citizens as a whole
within their respective city. The 501c3 also
allows individuals and companies to give
charitable donations to the corporations to
build new public spaces or enhance the
districts through new public improvements.

This was the method that the Rockefeller
Foundation gave to endowing Bryant Park in
New York City in the 1980s. Downtown El
Cajon’s Management Corporation is a 501c6
(mutual benefit non-profit corporation),
which provides non-charitable benefit to
donors for projects and activities in
Downtown. A restructuring of the Owners
Association into a 501c3 will be one of the
recommendations of this report.

4. Taking Advantage of Politics and Timing:

Politics and timing are critical to the success
of any effort to create a sustainable funding
mechanism for interested Downtown
stakeholders. Since the City Manager’s
office, with Mayoral and Council support,
received the authorization to hire a
consulting firm to review the current status in
Downtown El Cajon, this demonstrates that
the political climate and timing are right in El
Cajon in 2024. The review of the
consultants’ report will take into account the
fact that the Mayor, City Manager’s office and
the City Council seek to have a more
activated Downtown with more
development, more customers and create a
more dynamic Downtown, particularly in a
post COVID environment. That will include
greater outdoor dining options, more
mixed-use development and more
interesting public art and public space
opportunities. The political environment and
the timing is perfect for this re-invention and
reorientation of Downtown based upon the
success and reach of the current PBID as a
funding mechanism for special benefits in
Downtown.

In a recently published magazine, “My El Cajon”,
released by City Manager Graham Mitchell,
stated the following in his introductory
statement called “Open for Business”:
“The adage “evolve or die” resonates not only
in business but also in the vitality of
communities. This principle underscores the
crucial need for constant renewal,
modernization, and revitalization, which are
driven by the lifeblood of economic
development. In recent years, the El Cajon
City Council has prioritized economic
PAGE 4
growth, a commitment poised to remain at
the forefront of our agenda.”
“Economic development from a municipal
standpoint, involves aligning property
owners, enthusiastic developers, businesses,
and resources to cultivate investment
opportunities within our community. This
infusion of capital and effort should yield
community benefits, including employment
opportunities, local government revenue and
enhanced access to goods and services. In
essence economic development fuels, the
growth of our local economy, ultimately
enhancing the quality of life for El Cajon’s
residents, workforce, and visitors.”
“Given these constraints, you might wonder
how a city can drive economic development.

The answer is “Quite a lot.” Cities can craft
economic development strategies that
outline objectives, leveraging their
community’s competitive strengths and
weaknesses. Our City Council recently
approved the El Cajon Economic
Development Strategic Plan, charting a new
course toward prosperity.”
“Cities can also adopt policies and
procedures that empower business and
entrepreneurship while minimizing obstacles
to development.”
This statement from the City Manager
demonstrates that the “politics and timing” are
right to re-invent Downtown El Cajon.

5. Being “Results Oriented” and Integrating
Public Spaces Throughout the District
Management Process: Much of the credit for
the concept of Placemaking is based upon
the excellent work done from the 1980s up
to the pandemic, led Project for Public
Spaces. The person who inspired and led
placemaking as an international movement
was Fred Kent, the former CEO. Fred and his
partner and wife Cathy held international
conferences to promote how public spaces
should be envisioned and implemented.

Fred believed that 80% of the success of any
public space was based upon management.

Marco Li Mandri, President of New City
America was on the Leadership Council of
the Project for Public Spaces and put this
concept to work through the development
of successful fundraising techniques and
activation of the public spaces in Little Italy
and the other districts they manage. Fred
and Cathy’s work has been replicated
throughout the nation. Downtown El Cajon
has some very good and yet to be activated
public spaces which can become a great
opportunity for attracting new capital to
Downtown since these public spaces,
commons and plazas become new
Downtown residents’ backyard when they
move into new condos and apartments in
Downtown.

The most successful downtowns, in our opinion,
will be the ones that support and implement the
New City Standards models or something
similar. The movement towards successful
Downtowns and City Centers will increasingly be
based upon following successful models in
Board makeup, Board Committees,
transparency, entrepreneurial partnerships with
new developers who collectively understand the
great value in creating and managing new public
spaces within the districts.

II. REVIEW OF RECENT REPORTS ON

DOWNTOWN
Prior to launching the analysis of Downtown,
NCA reviewed past reports and studies of the
Downtown. Many included helpful
recommendations for improving Downtown El
Cajon. Those reports, including excerpts from
their findings, include:
a. El Cajon Blue Ribbon Commission
Report (2011)
b. Mixed Use Overlay Zones (From the
Downtown Specific Plan)
c. Economic Development Strategic
Plan (2022)
d. Transit District Specific Plan (2018)
e. Downtown El Cajon Business
Partners Inc, Financial Statements
(June 2022)
A. EL CAJON BLUE RIBBON COMMISSION
REPORT (2011):

In 2011, the City Council commissioned a group
of citizens and business owners to “investigate
the performance of El Cajon Community
Development Corporation (CDC). There are four
recommendations that have relevance today.

Below are the four recommendations from the
Blue Ribbon Commission, along with
commentary from NCA.

1. “It (The CDC running the PBID), is
specifically apparent, that at least 50% of
the PBID dollars collected are used for
overhead and approximately 25% are
spent on car shows and concerts –
recognize that the car shows and
concerts benefit El Cajon and very few of
the people assessed by the PBID. Little
benefit can be identified to stakeholders
assessed outside the Main Street
corridor.” (page 5).

Note: The current PBID Board continues to
prioritize car shows and concerts. The impact
of these events may be beneficial to businesses
directly adjacent to the venue, but we are not
sure the majority of the property owners and
businesses in Downtown derive increased
revenues from these efforts and use of
collected property assessments.

2. “There needs to be developers, builders,
significant business leaders and most
importantly commercial real estate
specialists that can bring together the
information necessary to determine a
realistic vision and know how to
implement it.” (page 15)
Note: This is more relevant now than ever.

Those in the real estate industry, including
brokers and developers, should be prioritized
as members of the PBID Board. These
professionals have a network of developers,
particularly mixed-use developers, that could
bring investment to the El Cajon’s Downtown.

Bringing them onto the board could change
the makeup of the Board and the priorities of
the district.

3. Car Shows and Concerts: “The limited
benefits of the concerts and car shows
specifically benefit the City of El Cajon
and the restaurants on Main Street…We
are recommending that a Downtown
Business Owners Association be formed
in the absence of the PBID…..Presently
the CDC spends at least $150,000 of the
PBID or approximately one fourth of the
PBID budget on these two items.” (page
18).

Note: It appears that car shows and summer
concerts, though well attended, continue to be
the priority events for the current Board of
Directors. In the meantime, some of the real
traffic generators for Downtown, namely
events at The Magnolia, do not have a
representative on the PBID Board and
incorporating their programming into a full
evening in Downtown appears not to be a
priority. Cathy Zeman, CFO, and member of the
current PBID Board, summarized the impacts of
the car show and concerts. Based on her
estimates, the car shows generate
approximately 2,000 weekly and upwards of
5,000 visitors on the four to five times the
street is closed for the car show and as many as
10,000 for the annual Trunk or Treat car show.

Concerts attract between 1,750 and 2,000
visitors most weeks, with up to 4,000 for the
more popular performers.

While these numbers are healthy, it is unclear
how much these ongoing annual events benefit
business and property owners outside of the
concert and show venues in Downtown El
Cajon, something that was mentioned in the
Blue Ribbon report.

4. Summary of Evaluation based upon Key
Performance Indicators: The report listed
6 items as key performance indicators
(KPI), ratings to be from high to low.

Key Performance Rating
CDC Organizational
effectiveness Low
PBID Performance Low
Marketing & Programs
Medium
Grant Project, Benefits to
the City Low
Redevelopment Activities
Performance Low
Economic Justification (Audit,
Management of PBID) Low
Note: It appears that some of the comments
that were directed to the CDC in 2011 may be
relevant today. Without the Redevelopment
Agency, the PBID Board currently has a limited
ability to apply for and receive grants.

However, the prioritization of attracting major
players onto the Board (Marriott and The
Magnolia) remains a problem. The PBID Board
is filled with property owners in Downtown
that have deep and productive relationships in
Downtown El Cajon, but much more is needed.

The high-quality residential projects that were
built in the early 2000s at Main and Magnolia by
local developer Daryl Priest, are an excellent
example of what Downtown El Cajon can
become in the future years. Mixed-use
development is the future of any downtown or
town center today.

B. MIXED USE OVERLAY ZONES FROM THE

DOWNTOWN EL CAJON SPECIFIC PLAN
182:

The City of El Cajon has created an entitlement
guideline report, which is extremely helpful in
showing developers what they can build by right
within the Downtown District. Many of the
points in this report are directly relevant to the
potential reinvention of Downtown El Cajon and
will be cited here. The introduction of this
reports states the following:

The Mixed-Use Overlay Zone establishes
zoning districts that are intended to
provide for the overly transition of certain
areas of El Cajon into walkable districts
that accommodate a mixture of retail,
office, and residential uses, while
protecting existing uses. It is further
intended to protect the existing job base,
develop mixed use cores, provide
transportation, pedestrian and visual
connectivity, and develop safe,
well-designed neighborhoods.

Relevant statements from the Specific Plan
include:

1. History: “In the early years of the century, the
invention of the automobile began to
influence Main Street businesses. By the
mid-1920s, the street was declared part of
the State Highway system. By the 1930s, this
required wider, paved streets and sidewalks.

But shopfronts were in the way, forcing the
State to order business owners on Main
Street to either tear the front dozen feet of
their buildings off, or move the entire
building back. Not wanting to do either,
owners were allowed to move ground floor
storefronts back the required distance. But
they left their roofs, and second floors in
some cases, where they were, propping
them up with support columns to form an
arcade. This has become the Districts’ most
distinguishing architectural feature today.”

2. Parking: “Additional parking spaces are not
required for a change of use of an existing
building…New developments…shall be
addressed in the context of the Downtown
urban environment and will be considered in
conjunction with the associated planning
permit application.” (page 1/1)

3. Design Guidelines: “To recapture a fair
portion of discriminating shoppers now
going elsewhere, the District must renovate
and create places for the many people
visiting the County Courthouse, East County
Performing Arts Center, City Hall and local
businesses. Services for shoppers must be
increased and merchandise lines expanded.

More inviting spaces for visitors, employees
and local residents are required so that
people can meet, gather and talk before
strolling or moving on. These standards
provide guidance to enhance the pedestrian
experience and improve the value of building
facades.

These regulations attempt to encourage
entrepreneurial redevelopment of the
Downtown District as an art, entertainment and
specialty retail and service district for the East
County region. (page 21)
C. ECONOMIC DEVELOPMENT STRATEGIC
PLAN:

In a report from the Natelson Dale Group (an
Economic Development Strategic Plan) was
reviewed by NCA and we had two phone
conversations on the status of this report. This
report was completed in June 2022, so its
recommendations and findings are very relevant
to Downtown El Cajon today. Four quotes will
be taken from that report to clarify the status of
Downtown today:

1. Land Use/Placemaking Programs:

Physical Changes to Accommodate
Quality Growth: “Position Downtown El
Cajon as a regional arts/entertainment
center” (page 4)

2. “Facilitation of public-private Downtown
Working Group (to identify specific needs
and actions to elevate Downtown’s
market position). Downtown component
of overall marketing campaign” (page 5)

3. Position Downtown El Cajon as a
Regional Arts/Entertainment Center: (p.
34) Brief Description of Program: This
strategy will build on existing assets (e.g.

Magnolia Performing Arts Center,
Prescott Promenade, etc.) to leverage
and expand Downtown’s attractiveness
as an entertainment destination.

4. City’s Positioning/Roles in
Implementation: “City will begin by
leading the investigation into how this
strategy can relate to and best be
coordinated with other Downtown
strategies, including the potential role of
festivals, special events, housing
development, etc., as the appropriate
support further research into this issue.”
Action Steps / First Year:
a. “Convene “downtown working group”
comprised (at a minimum) of the partners
listed below to identify critical connections
between EDSP (Economic Development
Strategic Plan) and Downtown-specific
business/development opportunities
(including potential for expanding market
rate housing).”
b. “Incorporate Downtown positioning strategy
in City Economic Development marketing
initiative.”
c. Evaluate potential options for providing
density bonuses (in addition to the existing
mixed-use overlay) to incentivize
development of higher end/higher density
housing)
Action Steps / Second Year:
a. “Pursue additional strategies (based on needs
identified by working group) to focus City
policies and resources on the Downtown.”
b. “Partnership Resources:
• Downtown El Cajon Business Partners;
• San Diego E. County Chamber
• East County EDC
• Live Nation
• Local/regional arts organizations
• Housing/mixed use developers.

Convene Downtown working group and
facilitate 2 – 4 scoping meetings”.

D. TRANSIT DISTRICT SPECIFIC PLAN:

Quotes from the City of El Cajon, Transit District
Specific Plan, Adopted 2018, City Council
Resolution No. 039-18
“The following represents some of the key
themes derived from the outreach process:
(page 9)
• Add more trees and vegetation.
• Add public art, lighting, trash cans,
shade/trees.
• Address challenges with some properties
that might not turn over in the near term,
especially, properties that are at key
nodes in the community.
• Create a walkable retail environment,
create a Main Street or Village experience
with small businesses and increased
active uses.”
E. DOWNTOWN EL CAJON BUSINESS

PARTNERS INC, FINANCIAL STATEMENTS
(JUNE 2022)
As part of its contract with the City, the
Downtown El Cajon Business Partners is
required to submit an annual report, audits, and
annual financial statements. Reviewing these
documents raised several points of concern.

Please keep in mind that the Management
District Plan, approved by the property owners
through the mail ballot proceeding, is almost like
a “contract” to explain which special benefits will
be funded with the formation of the PBID.

Normally, a 10% deviation is allowable over the
term of the plan per category. The reason why
categories of services are outlined in the
Management District Plan is to inform property
owners how their designated Board or “Owners
Association” will allocate PBID funds during the
term of the District. The Auditor has not looked
at the plan to determine the per
centages and
amounts that the property owners voted on in
2016, and rather just reported on what the
Downtown El Cajon Business Partners provided.

On page 5, the fiscal year ending on June 30th,
2022, the Auditor had listed the following
expenditures based upon the previous fiscal
year.

I. INTRODUCTION, NEW CITY

STANDARDS
Overview of Downtown PBID and General
Overview of Financing Downtown
Improvements:

Downtown El Cajon’s PBID has been in place
since 1997, around 2 years after the Property
Business Improvement District Act was approved
by the California State Legislature in 1994.

California was late to the game, relative to other
states, in adopting a Downtown financing
mechanism based upon property assessments,
not business license assessments. Previously,
business communities in the state only had the
Parking and Business Improvement District Act
in the Streets and Highway Code to help
business communities compete against the
impact of shopping malls. The original BID law
only impacted business license holders and the
formation of the district was only based upon
“majority protest.” Under the old BID law, City
Councils could create these districts on their
own initiative. In the late 1960s until 1994, these
were the districts of choice for business districts
in California with over 300 being formed in that
period.

The problem with these districts is that they were
based upon business license holders and every
city has a different method for levying business
licenses or taxes on business owners. In Los
Angeles, businesses licenses are based upon
gross receipts. In San Diego, businesses pay into
BIDs based upon their number of employees.

Throughout the 450 cities in the state, no two
cities use the same methodology to have
businesses pay for their licenses. Also, if there
was a vacancy, no revenue would be generated
from that building.

BIDs under this older system were chronically
undercapitalized, generated only enough money
usually to pay staff and had no other sustainable
revenues to help pay for improvements. The City
of San Diego led the way with these business
license-based districts having, at one time, up to
18 functioning BIDs.

With the adoption of the PBID law, a new
funding mechanism for Downtown and business
communities in California was now allowable.

With the approval of Proposition 218 by the
voters of California in 1996, which amended
Article 13 (d) of the state constitution, property
assessments were required to include an
assessment engineer’s report, required a mail
balloting procedure, and authorized that
“weighted” property owners, or those who paid
higher assessments had greater influence in the
establishment of the district. Instead of the
process for approval being “one property, one
vote,” it became “one dollar, one vote.” Thus, the
higher amount of contribution, the greater vote
one might have in the formation process.

More importantly, the new amendment to the
state constitution required a nexus between
what a property owner paid and what they
received and stated clearly that no state or
federal properties would be exempted unless
they could demonstrate by “clear and
convincing evidence” that they would not derive
benefits. Property owners could only be
assessed for “special benefits” or those programs
and activities that were over and above general
benefits that were currently being provided by a
municipal or county government.

This meant that cities with city halls located in or
large property holdings within downtowns, they
became the largest property owners and
therefore the “weighted property owners” in
their respective locations.

The PBID law has a large fundamental flaw in
that it requires a petition signed by 50% of the
weighted property owners simply to trigger the
Prop 218 required mail ballot procedure. If

49.5% of the property owners signed a petition
and they couldn’t generate any more signatures,
the PBID would never get the support it needed
to enter into the City governed mail ballot
procedure. Therefore, due to the lack of support
by over half of the weighted constituents (by
dollar amount) the district formation effort
would collapse.

Two other issues that have made the PBID law
somewhat obsolete, besides the incredibly high
petition required, were the maximum term of the
district as well as the name of the legislation. In
the end, the PBID law benefits formation
consultants, due to the fact that the district can
be formed for only 5 years the first term and then
a maximum of 10 years for each renewal.

The other problem with the PBID law is the
name: Property Business Improvement District.

Downtowns nationwide are increasingly
becoming residential with housing embedded in
downtowns have become the most prevalent
land use of non-historic building parcels.

Downtowns, particularly in the 21st century, are
becoming neighborhoods with new condo and
apartment developments creating new demands
due to things such as walkability, parks, plazas,
and other neighborhood amenities.

The one issue the legislation did correctly was to
allow for Charter Cities to create their owner
methods of assessment, which almost 25 cities
in the state have done. The PBID Act states:
36603. Nothing in this part is intended to
preempt the authority of a charter city to
adopt ordinances providing for a different
method of levying assessments for similar or
additional purposes from those set forth in
this part. A property and business
improvement district created pursuant to this
part is expressly exempt from the provisions
of the Special Assessment Investigation,
Limitation and Majority Protest Act of 1931
(Division 4 (commencing with Section
2800)).

Since El Cajon is a Charter City, they have the
right to create a new enabling ordinance that
would be applicable City wide and could impact
the name of the district (not only business
improvement), the term and the petition
threshold. A proposed new enabling ordinance
has already been included in this report,
attachment 1.

New City Standards:

New City America is a national company based
in San Diego’s Little Italy that has successfully
formed 93 similar districts (PBIDs, Community
Benefit Districts, BIDs, and Tourism
Improvement Districts) since 1996. It also
currently manages 6 districts statewide, so it
understands the “A to Z” of how to write a District
plan based upon real world experience and costs
and has been a leader in public space design and
development in the districts it has managed.

Over the past 25 years, New City America staff
has come up with a five-point check list for
ensuring that property assessment districts
formed have the greatest chance of producing
tangible results to its constituents as well as to
the cities in which it works. One of the best
examples of the success of this effort and
utilizing the “New City Standards” approach has
been in Downtown San Diego’s Little Italy. Little
Italy has grown into one of the most dynamic
and successful business communities and
neighborhoods nationwide, demonstrated by
not losing any of its over 70 restaurants, café,
bars or eateries, due to the devasting impact of
the pandemic. Little Italy emerged from the
pandemic stronger than ever and is on a
trajectory for additional dynamic growth.

Another good example in the County is to be
found in Downtown Chula Vista, which New City
America has managed over the past 2 years. We
have restructured that organization, converted
its Owners Association to a 501c3 and launched
a series of new public spaces and great events in
that Downtown.

The five points of the New City Standards include
the following proven standards:

1. The Importance of Place: The concept of
“Place” has caught on like wildfire through
the articulation of Placemaking arising out of
New York City in the 1980s. At times, places
are old or historic, new and emerging, or are
being re-invented by new mixed-use
development. The key thing is that the Place
must have a “handle,” or it must convey
positive images when someone mentions it.

Places that have little or no public identity are
hard to resurrect, so it is critical that the
leaders in that community know why they
want to improve it and how the Place will be
perceived by the public at large. This is
directly relevant to Downtown El Cajon
which has had a PBID in place for over 25
years now but has yet to establish a clear
identity in the County. The City of El Cajon
has such a “place” in its Downtown.

2. Need for Independent Financing: Many
places falter because they are
undercapitalized, not organized or are
dependent upon non-reoccurring revenue
streams. Places that lack sustainable,
independent, community funding are always
hampered by the inability to take action, due
to not having the financial resources to do
so. The best way to ensure that the district in
question can expedite smooth and dynamic
development is by establishing a sustainable
funding mechanism. That can be through
property assessment districts, use of parking
meter revenues or huge donor contributions.

The best method is to use a combination of
all of those revenue streams. Downtown El
Cajon has a PBID and that means that this
Downtown has met that condition.

3. Creating and Overseeing an
Entrepreneurial District Management
Corporation: District management
corporations are the non-profit entities that
are under contract with cities managing
Downtown property assessment districts or
BIDs. Those non-profits usually take the
form of mutual benefit corporations (501c6)
or public benefit corporations, (501c3). New
City America knows that the work of the
district management corporation is best
done through a new 501c3 since the work of
the district is similar to the old “Improvement
Associations” created in the early 1900s. The
funding and work is based upon reducing the
“burden of government” by providing and
funding special benefit services in the public
rights of way. By doing so, the district
management corporation is playing a
constructive role of improving not only for
the area that property owners and business
owners but also to the citizens as a whole
within their respective city. The 501c3 also
allows individuals and companies to give
charitable donations to the corporations to
build new public spaces or enhance the
districts through new public improvements.

This was the method that the Rockefeller
Foundation gave to endowing Bryant Park in
New York City in the 1980s. Downtown El
Cajon’s Management Corporation is a 501c6
(mutual benefit non-profit corporation),
which provides non-charitable benefit to
donors for projects and activities in
Downtown. A restructuring of the Owners
Association into a 501c3 will be one of the
recommendations of this report.

4. Taking Advantage of Politics and Timing:

Politics and timing are critical to the success
of any effort to create a sustainable funding
mechanism for interested Downtown
stakeholders. Since the City Manager’s
office, with Mayoral and Council support,
received the authorization to hire a
consulting firm to review the current status in
Downtown El Cajon, this demonstrates that
the political climate and timing are right in El
Cajon in 2024. The review of the
consultants’ report will take into account the
fact that the Mayor, City Manager’s office and
the City Council seek to have a more
activated Downtown with more
development, more customers and create a
more dynamic Downtown, particularly in a
post COVID environment. That will include
greater outdoor dining options, more
mixed-use development and more
interesting public art and public space
opportunities. The political environment and
the timing is perfect for this re-invention and
reorientation of Downtown based upon the
success and reach of the current PBID as a
funding mechanism for special benefits in
Downtown.

In a recently published magazine, “My El Cajon”,
released by City Manager Graham Mitchell,
stated the following in his introductory
statement called “Open for Business”:
“The adage “evolve or die” resonates not only
in business but also in the vitality of
communities. This principle underscores the
crucial need for constant renewal,
modernization, and revitalization, which are
driven by the lifeblood of economic
development. In recent years, the El Cajon
City Council has prioritized economic
growth, a commitment poised to remain at
the forefront of our agenda.”
“Economic development from a municipal
standpoint, involves aligning property
owners, enthusiastic developers, businesses,
and resources to cultivate investment
opportunities within our community. This
infusion of capital and effort should yield
community benefits, including employment
opportunities, local government revenue and
enhanced access to goods and services. In
essence economic development fuels, the
growth of our local economy, ultimately
enhancing the quality of life for El Cajon’s
residents, workforce, and visitors.”
“Given these constraints, you might wonder
how a city can drive economic development.

The answer is “Quite a lot.” Cities can craft
economic development strategies that
outline objectives, leveraging their
community’s competitive strengths and
weaknesses. Our City Council recently
approved the El Cajon Economic
Development Strategic Plan, charting a new
course toward prosperity.”
“Cities can also adopt policies and
procedures that empower business and
entrepreneurship while minimizing obstacles
to development.”
This statement from the City Manager
demonstrates that the “politics and timing” are
right to re-invent Downtown El Cajon.

5. Being “Results Oriented” and Integrating
Public Spaces Throughout the District
Management Process: Much of the credit for
the concept of Placemaking is based upon
the excellent work done from the 1980s up
to the pandemic, led Project for Public
Spaces. The person who inspired and led
placemaking as an international movement
was Fred Kent, the former CEO. Fred and his
partner and wife Cathy held international
conferences to promote how public spaces
should be envisioned and implemented.

Fred believed that 80% of the success of any
public space was based upon management.

Marco Li Mandri, President of New City
America was on the Leadership Council of
the Project for Public Spaces and put this
concept to work through the development
of successful fundraising techniques and
activation of the public spaces in Little Italy
and the other districts they manage. Fred
and Cathy’s work has been replicated
throughout the nation. Downtown El Cajon
has some very good and yet to be activated
public spaces which can become a great
opportunity for attracting new capital to
Downtown since these public spaces,
commons and plazas become new
Downtown residents’ backyard when they
move into new condos and apartments in
Downtown.

The most successful downtowns, in our opinion,
will be the ones that support and implement the
New City Standards models or something
similar. The movement towards successful
Downtowns and City Centers will increasingly be
based upon following successful models in
Board makeup, Board Committees,
transparency, entrepreneurial partnerships with
new developers who collectively understand the
great value in creating and managing new public
spaces within the districts.

PAGE 5
II. REVIEW OF RECENT REPORTS ON

DOWNTOWN
Prior to launching the analysis of Downtown,
NCA reviewed past reports and studies of the
Downtown. Many included helpful
recommendations for improving Downtown El
Cajon. Those reports, including excerpts from
their findings, include:
a. El Cajon Blue Ribbon Commission
Report (2011)
b. Mixed Use Overlay Zones (From the
Downtown Specific Plan)
c. Economic Development Strategic
Plan (2022)
d. Transit District Specific Plan (2018)
e. Downtown El Cajon Business
Partners Inc, Financial Statements
(June 2022)
A. EL CAJON BLUE RIBBON COMMISSION
REPORT (2011):

In 2011, the City Council commissioned a group
of citizens and business owners to “investigate
the performance of El Cajon Community
Development Corporation (CDC). There are four
recommendations that have relevance today.

Below are the four recommendations from the
Blue Ribbon Commission, along with
commentary from NCA.

1. “It (The CDC running the PBID), is
specifically apparent, that at least 50% of
the PBID dollars collected are used for
overhead and approximately 25% are
spent on car shows and concerts –
recognize that the car shows and
concerts benefit El Cajon and very few of
the people assessed by the PBID. Little
benefit can be identified to stakeholders
assessed outside the Main Street
corridor.” (page 5).

Note: The current PBID Board continues to
prioritize car shows and concerts. The impact
of these events may be beneficial to businesses
directly adjacent to the venue, but we are not
sure the majority of the property owners and
businesses in Downtown derive increased
revenues from these efforts and use of
collected property assessments.

2. “There needs to be developers, builders,
significant business leaders and most
importantly commercial real estate
specialists that can bring together the
information necessary to determine a
realistic vision and know how to
implement it.” (page 15)
Note: This is more relevant now than ever.

Those in the real estate industry, including
brokers and developers, should be prioritized
as members of the PBID Board. These
professionals have a network of developers,
particularly mixed-use developers, that could
bring investment to the El Cajon’s Downtown.

Bringing them onto the board could change
the makeup of the Board and the priorities of
the district.

3. Car Shows and Concerts: “The limited
benefits of the concerts and car shows
specifically benefit the City of El Cajon
and the restaurants on Main Street…We
are recommending that a Downtown
Business Owners Association be formed
in the absence of the PBID…..Presently
the CDC spends at least $150,000 of the
PBID or approximately one fourth of the
PBID budget on these two items.” (page
18).

Note: It appears that car shows and summer
concerts, though well attended, continue to be
the priority events for the current Board of
Directors. In the meantime, some of the real
traffic generators for Downtown, namely
events at The Magnolia, do not have a
representative on the PBID Board and
incorporating their programming into a full
evening in Downtown appears not to be a
priority. Cathy Zeman, CFO, and member of the
current PBID Board, summarized the impacts of
the car show and concerts. Based on her
estimates, the car shows generate
approximately 2,000 weekly and upwards of
5,000 visitors on the four to five times the
street is closed for the car show and as many as
10,000 for the annual Trunk or Treat car show.

Concerts attract between 1,750 and 2,000
visitors most weeks, with up to 4,000 for the
more popular performers.

While these numbers are healthy, it is unclear
how much these ongoing annual events benefit
business and property owners outside of the
concert and show venues in Downtown El
Cajon, something that was mentioned in the
Blue Ribbon report.

4. Summary of Evaluation based upon Key
Performance Indicators: The report listed
6 items as key performance indicators
(KPI), ratings to be from high to low.

Key Performance Rating
CDC Organizational
effectiveness Low
PBID Performance Low
Marketing & Programs
Medium
Grant Project, Benefits to
the City Low
Redevelopment Activities
Performance Low
Economic Justification (Audit,
Management of PBID) Low
Note: It appears that some of the comments
that were directed to the CDC in 2011 may be
relevant today. Without the Redevelopment
Agency, the PBID Board currently has a limited
ability to apply for and receive grants.

However, the prioritization of attracting major
players onto the Board (Marriott and The
Magnolia) remains a problem. The PBID Board
is filled with property owners in Downtown
that have deep and productive relationships in
Downtown El Cajon, but much more is needed.

The high-quality residential projects that were
built in the early 2000s at Main and Magnolia by
local developer Daryl Priest, are an excellent
example of what Downtown El Cajon can
become in the future years. Mixed-use
development is the future of any downtown or
town center today.

B. MIXED USE OVERLAY ZONES FROM THE

DOWNTOWN EL CAJON SPECIFIC PLAN
182:

The City of El Cajon has created an entitlement
guideline report, which is extremely helpful in
showing developers what they can build by right
within the Downtown District. Many of the
points in this report are directly relevant to the
potential reinvention of Downtown El Cajon and
will be cited here. The introduction of this
reports states the following:

The Mixed-Use Overlay Zone establishes
zoning districts that are intended to
provide for the overly transition of certain
areas of El Cajon into walkable districts
that accommodate a mixture of retail,
office, and residential uses, while
protecting existing uses. It is further
intended to protect the existing job base,
develop mixed use cores, provide
transportation, pedestrian and visual
connectivity, and develop safe,
well-designed neighborhoods.

Relevant statements from the Specific Plan
include:

1. History: “In the early years of the century, the
invention of the automobile began to
influence Main Street businesses. By the
mid-1920s, the street was declared part of
the State Highway system. By the 1930s, this
required wider, paved streets and sidewalks.

But shopfronts were in the way, forcing the
State to order business owners on Main
Street to either tear the front dozen feet of
their buildings off, or move the entire
building back. Not wanting to do either,
owners were allowed to move ground floor
storefronts back the required distance. But
they left their roofs, and second floors in
some cases, where they were, propping
them up with support columns to form an
arcade. This has become the Districts’ most
distinguishing architectural feature today.”

2. Parking: “Additional parking spaces are not
required for a change of use of an existing
building…New developments…shall be
addressed in the context of the Downtown
urban environment and will be considered in
conjunction with the associated planning
permit application.” (page 1/1)

3. Design Guidelines: “To recapture a fair
portion of discriminating shoppers now
going elsewhere, the District must renovate
and create places for the many people
visiting the County Courthouse, East County
Performing Arts Center, City Hall and local
businesses. Services for shoppers must be
increased and merchandise lines expanded.

More inviting spaces for visitors, employees
and local residents are required so that
people can meet, gather and talk before
strolling or moving on. These standards
provide guidance to enhance the pedestrian
experience and improve the value of building
facades.

These regulations attempt to encourage
entrepreneurial redevelopment of the
Downtown District as an art, entertainment and
specialty retail and service district for the East
County region. (page 21)
C. ECONOMIC DEVELOPMENT STRATEGIC
PLAN:

In a report from the Natelson Dale Group (an
Economic Development Strategic Plan) was
reviewed by NCA and we had two phone
conversations on the status of this report. This
report was completed in June 2022, so its
recommendations and findings are very relevant
to Downtown El Cajon today. Four quotes will
be taken from that report to clarify the status of
Downtown today:

1. Land Use/Placemaking Programs:

Physical Changes to Accommodate
Quality Growth: “Position Downtown El
Cajon as a regional arts/entertainment
center” (page 4)

2. “Facilitation of public-private Downtown
Working Group (to identify specific needs
and actions to elevate Downtown’s
market position). Downtown component
of overall marketing campaign” (page 5)

3. Position Downtown El Cajon as a
Regional Arts/Entertainment Center: (p.
34) Brief Description of Program: This
strategy will build on existing assets (e.g.

Magnolia Performing Arts Center,
Prescott Promenade, etc.) to leverage
and expand Downtown’s attractiveness
as an entertainment destination.

4. City’s Positioning/Roles in
Implementation: “City will begin by
leading the investigation into how this
strategy can relate to and best be
coordinated with other Downtown
strategies, including the potential role of
festivals, special events, housing
development, etc., as the appropriate
support further research into this issue.”
Action Steps / First Year:
a. “Convene “downtown working group”
comprised (at a minimum) of the partners
listed below to identify critical connections
between EDSP (Economic Development
Strategic Plan) and Downtown-specific
business/development opportunities
(including potential for expanding market
rate housing).”
b. “Incorporate Downtown positioning strategy
in City Economic Development marketing
initiative.”
c. Evaluate potential options for providing
density bonuses (in addition to the existing
mixed-use overlay) to incentivize
development of higher end/higher density
housing)
Action Steps / Second Year:
a. “Pursue additional strategies (based on needs
identified by working group) to focus City
policies and resources on the Downtown.”
b. “Partnership Resources:
• Downtown El Cajon Business Partners;
• San Diego E. County Chamber
• East County EDC
• Live Nation
• Local/regional arts organizations
• Housing/mixed use developers.

Convene Downtown working group and
facilitate 2 – 4 scoping meetings”.

D. TRANSIT DISTRICT SPECIFIC PLAN:

Quotes from the City of El Cajon, Transit District
Specific Plan, Adopted 2018, City Council
Resolution No. 039-18
“The following represents some of the key
themes derived from the outreach process:
(page 9)
• Add more trees and vegetation.
• Add public art, lighting, trash cans,
shade/trees.
• Address challenges with some properties
that might not turn over in the near term,
especially, properties that are at key
nodes in the community.
• Create a walkable retail environment,
create a Main Street or Village experience
with small businesses and increased
active uses.”
E. DOWNTOWN EL CAJON BUSINESS

PARTNERS INC, FINANCIAL STATEMENTS
(JUNE 2022)
As part of its contract with the City, the
Downtown El Cajon Business Partners is
required to submit an annual report, audits, and
annual financial statements. Reviewing these
documents raised several points of concern.

Please keep in mind that the Management
District Plan, approved by the property owners
through the mail ballot proceeding, is almost like
a “contract” to explain which special benefits will
be funded with the formation of the PBID.

Normally, a 10% deviation is allowable over the
term of the plan per category. The reason why
categories of services are outlined in the
Management District Plan is to inform property
owners how their designated Board or “Owners
Association” will allocate PBID funds during the
term of the District. The Auditor has not looked
at the plan to determine the percentages and
amounts that the property owners voted on in
2016, and rather just reported on what the
Downtown El Cajon Business Partners provided.

On page 5, the fiscal year ending on June 30th,
2022, the Auditor had listed the following
expenditures based upon the previous fiscal
year.

I. INTRODUCTION, NEW CITY

STANDARDS
Overview of Downtown PBID and General
Overview of Financing Downtown
Improvements:

Downtown El Cajon’s PBID has been in place
since 1997, around 2 years after the Property
Business Improvement District Act was approved
by the California State Legislature in 1994.

California was late to the game, relative to other
states, in adopting a Downtown financing
mechanism based upon property assessments,
not business license assessments. Previously,
business communities in the state only had the
Parking and Business Improvement District Act
in the Streets and Highway Code to help
business communities compete against the
impact of shopping malls. The original BID law
only impacted business license holders and the
formation of the district was only based upon
“majority protest.” Under the old BID law, City
Councils could create these districts on their
own initiative. In the late 1960s until 1994, these
were the districts of choice for business districts
in California with over 300 being formed in that
period.

The problem with these districts is that they were
based upon business license holders and every
city has a different method for levying business
licenses or taxes on business owners. In Los
Angeles, businesses licenses are based upon
gross receipts. In San Diego, businesses pay into
BIDs based upon their number of employees.

Throughout the 450 cities in the state, no two
cities use the same methodology to have
businesses pay for their licenses. Also, if there
was a vacancy, no revenue would be generated
from that building.

BIDs under this older system were chronically
undercapitalized, generated only enough money
usually to pay staff and had no other sustainable
revenues to help pay for improvements. The City
of San Diego led the way with these business
license-based districts having, at one time, up to
18 functioning BIDs.

With the adoption of the PBID law, a new
funding mechanism for Downtown and business
communities in California was now allowable.

With the approval of Proposition 218 by the
voters of California in 1996, which amended
Article 13 (d) of the state constitution, property
assessments were required to include an
assessment engineer’s report, required a mail
balloting procedure, and authorized that
“weighted” property owners, or those who paid
higher assessments had greater influence in the
establishment of the district. Instead of the
process for approval being “one property, one
vote,” it became “one dollar, one vote.” Thus, the
higher amount of contribution, the greater vote
one might have in the formation process.

More importantly, the new amendment to the
state constitution required a nexus between
what a property owner paid and what they
received and stated clearly that no state or
federal properties would be exempted unless
they could demonstrate by “clear and
convincing evidence” that they would not derive
benefits. Property owners could only be
assessed for “special benefits” or those programs
and activities that were over and above general
benefits that were currently being provided by a
municipal or county government.

This meant that cities with city halls located in or
large property holdings within downtowns, they
became the largest property owners and
therefore the “weighted property owners” in
their respective locations.

The PBID law has a large fundamental flaw in
that it requires a petition signed by 50% of the
weighted property owners simply to trigger the
Prop 218 required mail ballot procedure. If

49.5% of the property owners signed a petition
and they couldn’t generate any more signatures,
the PBID would never get the support it needed
to enter into the City governed mail ballot
procedure. Therefore, due to the lack of support
by over half of the weighted constituents (by
dollar amount) the district formation effort
would collapse.

Two other issues that have made the PBID law
somewhat obsolete, besides the incredibly high
petition required, were the maximum term of the
district as well as the name of the legislation. In
the end, the PBID law benefits formation
consultants, due to the fact that the district can
be formed for only 5 years the first term and then
a maximum of 10 years for each renewal.

The other problem with the PBID law is the
name: Property Business Improvement District.

Downtowns nationwide are increasingly
becoming residential with housing embedded in
downtowns have become the most prevalent
land use of non-historic building parcels.

Downtowns, particularly in the 21st century, are
becoming neighborhoods with new condo and
apartment developments creating new demands
due to things such as walkability, parks, plazas,
and other neighborhood amenities.

The one issue the legislation did correctly was to
allow for Charter Cities to create their owner
methods of assessment, which almost 25 cities
in the state have done. The PBID Act states:
36603. Nothing in this part is intended to
preempt the authority of a charter city to
adopt ordinances providing for a different
method of levying assessments for similar or
additional purposes from those set forth in
this part. A property and business
improvement district created pursuant to this
part is expressly exempt from the provisions
of the Special Assessment Investigation,
Limitation and Majority Protest Act of 1931
(Division 4 (commencing with Section
2800)).

Since El Cajon is a Charter City, they have the
right to create a new enabling ordinance that
would be applicable City wide and could impact
the name of the district (not only business
improvement), the term and the petition
threshold. A proposed new enabling ordinance
has already been included in this report,
attachment 1.

New City Standards:

New City America is a national company based
in San Diego’s Little Italy that has successfully
formed 93 similar districts (PBIDs, Community
Benefit Districts, BIDs, and Tourism
Improvement Districts) since 1996. It also
currently manages 6 districts statewide, so it
understands the “A to Z” of how to write a District
plan based upon real world experience and costs
and has been a leader in public space design and
development in the districts it has managed.

Over the past 25 years, New City America staff
has come up with a five-point check list for
ensuring that property assessment districts
formed have the greatest chance of producing
tangible results to its constituents as well as to
the cities in which it works. One of the best
examples of the success of this effort and
utilizing the “New City Standards” approach has
been in Downtown San Diego’s Little Italy. Little
Italy has grown into one of the most dynamic
and successful business communities and
neighborhoods nationwide, demonstrated by
not losing any of its over 70 restaurants, café,
bars or eateries, due to the devasting impact of
the pandemic. Little Italy emerged from the
pandemic stronger than ever and is on a
trajectory for additional dynamic growth.

Another good example in the County is to be
found in Downtown Chula Vista, which New City
America has managed over the past 2 years. We
have restructured that organization, converted
its Owners Association to a 501c3 and launched
a series of new public spaces and great events in
that Downtown.

The five points of the New City Standards include
the following proven standards:

1. The Importance of Place: The concept of
“Place” has caught on like wildfire through
the articulation of Placemaking arising out of
New York City in the 1980s. At times, places
are old or historic, new and emerging, or are
being re-invented by new mixed-use
development. The key thing is that the Place
must have a “handle,” or it must convey
positive images when someone mentions it.

Places that have little or no public identity are
hard to resurrect, so it is critical that the
leaders in that community know why they
want to improve it and how the Place will be
perceived by the public at large. This is
directly relevant to Downtown El Cajon
which has had a PBID in place for over 25
years now but has yet to establish a clear
identity in the County. The City of El Cajon
has such a “place” in its Downtown.

2. Need for Independent Financing: Many
places falter because they are
undercapitalized, not organized or are
dependent upon non-reoccurring revenue
streams. Places that lack sustainable,
independent, community funding are always
hampered by the inability to take action, due
to not having the financial resources to do
so. The best way to ensure that the district in
question can expedite smooth and dynamic
development is by establishing a sustainable
funding mechanism. That can be through
property assessment districts, use of parking
meter revenues or huge donor contributions.

The best method is to use a combination of
all of those revenue streams. Downtown El
Cajon has a PBID and that means that this
Downtown has met that condition.

3. Creating and Overseeing an
Entrepreneurial District Management
Corporation: District management
corporations are the non-profit entities that
are under contract with cities managing
Downtown property assessment districts or
BIDs. Those non-profits usually take the
form of mutual benefit corporations (501c6)
or public benefit corporations, (501c3). New
City America knows that the work of the
district management corporation is best
done through a new 501c3 since the work of
the district is similar to the old “Improvement
Associations” created in the early 1900s. The
funding and work is based upon reducing the
“burden of government” by providing and
funding special benefit services in the public
rights of way. By doing so, the district
management corporation is playing a
constructive role of improving not only for
the area that property owners and business
owners but also to the citizens as a whole
within their respective city. The 501c3 also
allows individuals and companies to give
charitable donations to the corporations to
build new public spaces or enhance the
districts through new public improvements.

This was the method that the Rockefeller
Foundation gave to endowing Bryant Park in
New York City in the 1980s. Downtown El
Cajon’s Management Corporation is a 501c6
(mutual benefit non-profit corporation),
which provides non-charitable benefit to
donors for projects and activities in
Downtown. A restructuring of the Owners
Association into a 501c3 will be one of the
recommendations of this report.

4. Taking Advantage of Politics and Timing:

Politics and timing are critical to the success
of any effort to create a sustainable funding
mechanism for interested Downtown
stakeholders. Since the City Manager’s
office, with Mayoral and Council support,
received the authorization to hire a
consulting firm to review the current status in
Downtown El Cajon, this demonstrates that
the political climate and timing are right in El
Cajon in 2024. The review of the
consultants’ report will take into account the
fact that the Mayor, City Manager’s office and
the City Council seek to have a more
activated Downtown with more
development, more customers and create a
more dynamic Downtown, particularly in a
post COVID environment. That will include
greater outdoor dining options, more
mixed-use development and more
interesting public art and public space
opportunities. The political environment and
the timing is perfect for this re-invention and
reorientation of Downtown based upon the
success and reach of the current PBID as a
funding mechanism for special benefits in
Downtown.

In a recently published magazine, “My El Cajon”,
released by City Manager Graham Mitchell,
stated the following in his introductory
statement called “Open for Business”:
“The adage “evolve or die” resonates not only
in business but also in the vitality of
communities. This principle underscores the
crucial need for constant renewal,
modernization, and revitalization, which are
driven by the lifeblood of economic
development. In recent years, the El Cajon
City Council has prioritized economic
growth, a commitment poised to remain at
the forefront of our agenda.”
“Economic development from a municipal
standpoint, involves aligning property
owners, enthusiastic developers, businesses,
and resources to cultivate investment
opportunities within our community. This
infusion of capital and effort should yield
community benefits, including employment
opportunities, local government revenue and
enhanced access to goods and services. In
essence economic development fuels, the
growth of our local economy, ultimately
enhancing the quality of life for El Cajon’s
residents, workforce, and visitors.”
“Given these constraints, you might wonder
how a city can drive economic development.

The answer is “Quite a lot.” Cities can craft
economic development strategies that
outline objectives, leveraging their
community’s competitive strengths and
weaknesses. Our City Council recently
approved the El Cajon Economic
Development Strategic Plan, charting a new
course toward prosperity.”
“Cities can also adopt policies and
procedures that empower business and
entrepreneurship while minimizing obstacles
to development.”
This statement from the City Manager
demonstrates that the “politics and timing” are
right to re-invent Downtown El Cajon.

5. Being “Results Oriented” and Integrating
Public Spaces Throughout the District
Management Process: Much of the credit for
the concept of Placemaking is based upon
the excellent work done from the 1980s up
to the pandemic, led Project for Public
Spaces. The person who inspired and led
placemaking as an international movement
was Fred Kent, the former CEO. Fred and his
partner and wife Cathy held international
conferences to promote how public spaces
should be envisioned and implemented.

Fred believed that 80% of the success of any
public space was based upon management.

Marco Li Mandri, President of New City
America was on the Leadership Council of
the Project for Public Spaces and put this
concept to work through the development
of successful fundraising techniques and
activation of the public spaces in Little Italy
and the other districts they manage. Fred
and Cathy’s work has been replicated
throughout the nation. Downtown El Cajon
has some very good and yet to be activated
public spaces which can become a great
opportunity for attracting new capital to
Downtown since these public spaces,
commons and plazas become new
Downtown residents’ backyard when they
move into new condos and apartments in
Downtown.

The most successful downtowns, in our opinion,
will be the ones that support and implement the
New City Standards models or something
similar. The movement towards successful
Downtowns and City Centers will increasingly be
based upon following successful models in
Board makeup, Board Committees,
transparency, entrepreneurial partnerships with
new developers who collectively understand the
great value in creating and managing new public
spaces within the districts.

II. REVIEW OF RECENT REPORTS ON

DOWNTOWN
Prior to launching the analysis of Downtown,
NCA reviewed past reports and studies of the
Downtown. Many included helpful
recommendations for improving Downtown El
Cajon. Those reports, including excerpts from
their findings, include:
a. El Cajon Blue Ribbon Commission
Report (2011)
b. Mixed Use Overlay Zones (From the
Downtown Specific Plan)
c. Economic Development Strategic
Plan (2022)
d. Transit District Specific Plan (2018)
e. Downtown El Cajon Business
Partners Inc, Financial Statements
(June 2022)
A. EL CAJON BLUE RIBBON COMMISSION
REPORT (2011):

In 2011, the City Council commissioned a group
of citizens and business owners to “investigate
the performance of El Cajon Community
Development Corporation (CDC). There are four
recommendations that have relevance today.

Below are the four recommendations from the
Blue Ribbon Commission, along with
commentary from NCA.

1. “It (The CDC running the PBID), is
specifically apparent, that at least 50% of
the PBID dollars collected are used for
overhead and approximately 25% are
spent on car shows and concerts –
recognize that the car shows and
concerts benefit El Cajon and very few of
the people assessed by the PBID. Little
benefit can be identified to stakeholders
assessed outside the Main Street
corridor.” (page 5).

Note: The current PBID Board continues to
prioritize car shows and concerts. The impact
of these events may be beneficial to businesses
directly adjacent to the venue, but we are not
sure the majority of the property owners and
businesses in Downtown derive increased
revenues from these efforts and use of
collected property assessments.

2. “There needs to be developers, builders,
significant business leaders and most
importantly commercial real estate
specialists that can bring together the
information necessary to determine a
realistic vision and know how to
implement it.” (page 15)
Note: This is more relevant now than ever.

Those in the real estate industry, including
brokers and developers, should be prioritized
as members of the PBID Board. These
professionals have a network of developers,
particularly mixed-use developers, that could
bring investment to the El Cajon’s Downtown.

Bringing them onto the board could change
the makeup of the Board and the priorities of
the district.

3. Car Shows and Concerts: “The limited
benefits of the concerts and car shows
specifically benefit the City of El Cajon
and the restaurants on Main Street…We
are recommending that a Downtown
Business Owners Association be formed
in the absence of the PBID…..Presently
the CDC spends at least $150,000 of the
PBID or approximately one fourth of the
PBID budget on these two items.” (page
18).

Note: It appears that car shows and summer
concerts, though well attended, continue to be
the priority events for the current Board of
Directors. In the meantime, some of the real
traffic generators for Downtown, namely
events at The Magnolia, do not have a
representative on the PBID Board and
incorporating their programming into a full
evening in Downtown appears not to be a
priority. Cathy Zeman, CFO, and member of the
current PBID Board, summarized the impacts of
the car show and concerts. Based on her
estimates, the car shows generate
approximately 2,000 weekly and upwards of
5,000 visitors on the four to five times the
street is closed for the car show and as many as
10,000 for the annual Trunk or Treat car show.

Concerts attract between 1,750 and 2,000
PAGE 6
visitors most weeks, with up to 4,000 for the
more popular performers.

While these numbers are healthy, it is unclear
how much these ongoing annual events benefit
business and property owners outside of the
concert and show venues in Downtown El
Cajon, something that was mentioned in the
Blue Ribbon report.

4. Summary of Evaluation based upon Key
Performance Indicators: The report listed
6 items as key performance indicators
(KPI), ratings to be from high to low.

Key Performance Rating
CDC Organizational
effectiveness Low
PBID Performance Low
Marketing & Programs
Medium
Grant Project, Benefits to
the City Low
Redevelopment Activities
Performance Low
Economic Justification (Audit,
Management of PBID) Low
Note: It appears that some of the comments
that were directed to the CDC in 2011 may be
relevant today. Without the Redevelopment
Agency, the PBID Board currently has a limited
ability to apply for and receive grants.

However, the prioritization of attracting major
players onto the Board (Marriott and The
Magnolia) remains a problem. The PBID Board
is filled with property owners in Downtown
that have deep and productive relationships in
Downtown El Cajon, but much more is needed.

The high-quality residential projects that were
built in the early 2000s at Main and Magnolia by
local developer Daryl Priest, are an excellent
example of what Downtown El Cajon can
become in the future years. Mixed-use
development is the future of any downtown or
town center today.

B. MIXED USE OVERLAY ZONES FROM THE

DOWNTOWN EL CAJON SPECIFIC PLAN
182:

The City of El Cajon has created an entitlement
guideline report, which is extremely helpful in
showing developers what they can build by right
within the Downtown District. Many of the
points in this report are directly relevant to the
potential reinvention of Downtown El Cajon and
will be cited here. The introduction of this
reports states the following:

The Mixed-Use Overlay Zone establishes
zoning districts that are intended to
provide for the overly transition of certain
areas of El Cajon into walkable districts
that accommodate a mixture of retail,
office, and residential uses, while
protecting existing uses. It is further
intended to protect the existing job base,
develop mixed use cores, provide
transportation, pedestrian and visual
connectivity, and develop safe,
well-designed neighborhoods.

Relevant statements from the Specific Plan
include:

1. History: “In the early years of the century, the
invention of the automobile began to
influence Main Street businesses. By the
mid-1920s, the street was declared part of
the State Highway system. By the 1930s, this
required wider, paved streets and sidewalks.

But shopfronts were in the way, forcing the
State to order business owners on Main
Street to either tear the front dozen feet of
their buildings off, or move the entire
building back. Not wanting to do either,
owners were allowed to move ground floor
storefronts back the required distance. But
they left their roofs, and second floors in
some cases, where they were, propping
them up with support columns to form an
arcade. This has become the Districts’ most
distinguishing architectural feature today.”

2. Parking: “Additional parking spaces are not
required for a change of use of an existing
building…New developments…shall be
addressed in the context of the Downtown
urban environment and will be considered in
conjunction with the associated planning
permit application.” (page 1/1)

3. Design Guidelines: “To recapture a fair
portion of discriminating shoppers now
going elsewhere, the District must renovate
and create places for the many people
visiting the County Courthouse, East County
Performing Arts Center, City Hall and local
businesses. Services for shoppers must be
increased and merchandise lines expanded.

More inviting spaces for visitors, employees
and local residents are required so that
people can meet, gather and talk before
strolling or moving on. These standards
provide guidance to enhance the pedestrian
experience and improve the value of building
facades.

These regulations attempt to encourage
entrepreneurial redevelopment of the
Downtown District as an art, entertainment and
specialty retail and service district for the East
County region. (page 21)
C. ECONOMIC DEVELOPMENT STRATEGIC
PLAN:

In a report from the Natelson Dale Group (an
Economic Development Strategic Plan) was
reviewed by NCA and we had two phone
conversations on the status of this report. This
report was completed in June 2022, so its
recommendations and findings are very relevant
to Downtown El Cajon today. Four quotes will
be taken from that report to clarify the status of
Downtown today:

1. Land Use/Placemaking Programs:

Physical Changes to Accommodate
Quality Growth: “Position Downtown El
Cajon as a regional arts/entertainment
center” (page 4)

2. “Facilitation of public-private Downtown
Working Group (to identify specific needs
and actions to elevate Downtown’s
market position). Downtown component
of overall marketing campaign” (page 5)

3. Position Downtown El Cajon as a
Regional Arts/Entertainment Center: (p.
34) Brief Description of Program: This
strategy will build on existing assets (e.g.

Magnolia Performing Arts Center,
Prescott Promenade, etc.) to leverage
and expand Downtown’s attractiveness
as an entertainment destination.

4. City’s Positioning/Roles in
Implementation: “City will begin by
leading the investigation into how this
strategy can relate to and best be
coordinated with other Downtown
strategies, including the potential role of
festivals, special events, housing
development, etc., as the appropriate
support further research into this issue.”
Action Steps / First Year:
a. “Convene “downtown working group”
comprised (at a minimum) of the partners
listed below to identify critical connections
between EDSP (Economic Development
Strategic Plan) and Downtown-specific
business/development opportunities
(including potential for expanding market
rate housing).”
b. “Incorporate Downtown positioning strategy
in City Economic Development marketing
initiative.”
c. Evaluate potential options for providing
density bonuses (in addition to the existing
mixed-use overlay) to incentivize
development of higher end/higher density
housing)
Action Steps / Second Year:
a. “Pursue additional strategies (based on needs
identified by working group) to focus City
policies and resources on the Downtown.”
b. “Partnership Resources:
• Downtown El Cajon Business Partners;
• San Diego E. County Chamber
• East County EDC
• Live Nation
• Local/regional arts organizations
• Housing/mixed use developers.

Convene Downtown working group and
facilitate 2 – 4 scoping meetings”.

D. TRANSIT DISTRICT SPECIFIC PLAN:

Quotes from the City of El Cajon, Transit District
Specific Plan, Adopted 2018, City Council
Resolution No. 039-18
“The following represents some of the key
themes derived from the outreach process:
(page 9)
• Add more trees and vegetation.
• Add public art, lighting, trash cans,
shade/trees.
• Address challenges with some properties
that might not turn over in the near term,
especially, properties that are at key
nodes in the community.
• Create a walkable retail environment,
create a Main Street or Village experience
with small businesses and increased
active uses.”
E. DOWNTOWN EL CAJON BUSINESS

PARTNERS INC, FINANCIAL STATEMENTS
(JUNE 2022)
As part of its contract with the City, the
Downtown El Cajon Business Partners is
required to submit an annual report, audits, and
annual financial statements. Reviewing these
documents raised several points of concern.

Please keep in mind that the Management
District Plan, approved by the property owners
through the mail ballot proceeding, is almost like
a “contract” to explain which special benefits will
be funded with the formation of the PBID.

Normally, a 10% deviation is allowable over the
term of the plan per category. The reason why
categories of services are outlined in the
Management District Plan is to inform property
owners how their designated Board or “Owners
Association” will allocate PBID funds during the
term of the District. The Auditor has not looked
at the plan to determine the percentages and
amounts that the property owners voted on in
2016, and rather just reported on what the
Downtown El Cajon Business Partners provided.

On page 5, the fiscal year ending on June 30th,
2022, the Auditor had listed the following
expenditures based upon the previous fiscal
year.

I. INTRODUCTION, NEW CITY

STANDARDS
Overview of Downtown PBID and General
Overview of Financing Downtown
Improvements:

Downtown El Cajon’s PBID has been in place
since 1997, around 2 years after the Property
Business Improvement District Act was approved
by the California State Legislature in 1994.

California was late to the game, relative to other
states, in adopting a Downtown financing
mechanism based upon property assessments,
not business license assessments. Previously,
business communities in the state only had the
Parking and Business Improvement District Act
in the Streets and Highway Code to help
business communities compete against the
impact of shopping malls. The original BID law
only impacted business license holders and the
formation of the district was only based upon
“majority protest.” Under the old BID law, City
Councils could create these districts on their
own initiative. In the late 1960s until 1994, these
were the districts of choice for business districts
in California with over 300 being formed in that
period.

The problem with these districts is that they were
based upon business license holders and every
city has a different method for levying business
licenses or taxes on business owners. In Los
Angeles, businesses licenses are based upon
gross receipts. In San Diego, businesses pay into
BIDs based upon their number of employees.

Throughout the 450 cities in the state, no two
cities use the same methodology to have
businesses pay for their licenses. Also, if there
was a vacancy, no revenue would be generated
from that building.

BIDs under this older system were chronically
undercapitalized, generated only enough money
usually to pay staff and had no other sustainable
revenues to help pay for improvements. The City
of San Diego led the way with these business
license-based districts having, at one time, up to
18 functioning BIDs.

With the adoption of the PBID law, a new
funding mechanism for Downtown and business
communities in California was now allowable.

With the approval of Proposition 218 by the
voters of California in 1996, which amended
Article 13 (d) of the state constitution, property
assessments were required to include an
assessment engineer’s report, required a mail
balloting procedure, and authorized that
“weighted” property owners, or those who paid
higher assessments had greater influence in the
establishment of the district. Instead of the
process for approval being “one property, one
vote,” it became “one dollar, one vote.” Thus, the
higher amount of contribution, the greater vote
one might have in the formation process.

More importantly, the new amendment to the
state constitution required a nexus between
what a property owner paid and what they
received and stated clearly that no state or
federal properties would be exempted unless
they could demonstrate by “clear and
convincing evidence” that they would not derive
benefits. Property owners could only be
assessed for “special benefits” or those programs
and activities that were over and above general
benefits that were currently being provided by a
municipal or county government.

This meant that cities with city halls located in or
large property holdings within downtowns, they
became the largest property owners and
therefore the “weighted property owners” in
their respective locations.

The PBID law has a large fundamental flaw in
that it requires a petition signed by 50% of the
weighted property owners simply to trigger the
Prop 218 required mail ballot procedure. If

49.5% of the property owners signed a petition
and they couldn’t generate any more signatures,
the PBID would never get the support it needed
to enter into the City governed mail ballot
procedure. Therefore, due to the lack of support
by over half of the weighted constituents (by
dollar amount) the district formation effort
would collapse.

Two other issues that have made the PBID law
somewhat obsolete, besides the incredibly high
petition required, were the maximum term of the
district as well as the name of the legislation. In
the end, the PBID law benefits formation
consultants, due to the fact that the district can
be formed for only 5 years the first term and then
a maximum of 10 years for each renewal.

The other problem with the PBID law is the
name: Property Business Improvement District.

Downtowns nationwide are increasingly
becoming residential with housing embedded in
downtowns have become the most prevalent
land use of non-historic building parcels.

Downtowns, particularly in the 21st century, are
becoming neighborhoods with new condo and
apartment developments creating new demands
due to things such as walkability, parks, plazas,
and other neighborhood amenities.

The one issue the legislation did correctly was to
allow for Charter Cities to create their owner
methods of assessment, which almost 25 cities
in the state have done. The PBID Act states:
36603. Nothing in this part is intended to
preempt the authority of a charter city to
adopt ordinances providing for a different
method of levying assessments for similar or
additional purposes from those set forth in
this part. A property and business
improvement district created pursuant to this
part is expressly exempt from the provisions
of the Special Assessment Investigation,
Limitation and Majority Protest Act of 1931
(Division 4 (commencing with Section
2800)).

Since El Cajon is a Charter City, they have the
right to create a new enabling ordinance that
would be applicable City wide and could impact
the name of the district (not only business
improvement), the term and the petition
threshold. A proposed new enabling ordinance
has already been included in this report,
attachment 1.

New City Standards:

New City America is a national company based
in San Diego’s Little Italy that has successfully
formed 93 similar districts (PBIDs, Community
Benefit Districts, BIDs, and Tourism
Improvement Districts) since 1996. It also
currently manages 6 districts statewide, so it
understands the “A to Z” of how to write a District
plan based upon real world experience and costs
and has been a leader in public space design and
development in the districts it has managed.

Over the past 25 years, New City America staff
has come up with a five-point check list for
ensuring that property assessment districts
formed have the greatest chance of producing
tangible results to its constituents as well as to
the cities in which it works. One of the best
examples of the success of this effort and
utilizing the “New City Standards” approach has
been in Downtown San Diego’s Little Italy. Little
Italy has grown into one of the most dynamic
and successful business communities and
neighborhoods nationwide, demonstrated by
not losing any of its over 70 restaurants, café,
bars or eateries, due to the devasting impact of
the pandemic. Little Italy emerged from the
pandemic stronger than ever and is on a
trajectory for additional dynamic growth.

Another good example in the County is to be
found in Downtown Chula Vista, which New City
America has managed over the past 2 years. We
have restructured that organization, converted
its Owners Association to a 501c3 and launched
a series of new public spaces and great events in
that Downtown.

The five points of the New City Standards include
the following proven standards:

1. The Importance of Place: The concept of
“Place” has caught on like wildfire through
the articulation of Placemaking arising out of
New York City in the 1980s. At times, places
are old or historic, new and emerging, or are
being re-invented by new mixed-use
development. The key thing is that the Place
must have a “handle,” or it must convey
positive images when someone mentions it.

Places that have little or no public identity are
hard to resurrect, so it is critical that the
leaders in that community know why they
want to improve it and how the Place will be
perceived by the public at large. This is
directly relevant to Downtown El Cajon
which has had a PBID in place for over 25
years now but has yet to establish a clear
identity in the County. The City of El Cajon
has such a “place” in its Downtown.

2. Need for Independent Financing: Many
places falter because they are
undercapitalized, not organized or are
dependent upon non-reoccurring revenue
streams. Places that lack sustainable,
independent, community funding are always
hampered by the inability to take action, due
to not having the financial resources to do
so. The best way to ensure that the district in
question can expedite smooth and dynamic
development is by establishing a sustainable
funding mechanism. That can be through
property assessment districts, use of parking
meter revenues or huge donor contributions.

The best method is to use a combination of
all of those revenue streams. Downtown El
Cajon has a PBID and that means that this
Downtown has met that condition.

3. Creating and Overseeing an
Entrepreneurial District Management
Corporation: District management
corporations are the non-profit entities that
are under contract with cities managing
Downtown property assessment districts or
BIDs. Those non-profits usually take the
form of mutual benefit corporations (501c6)
or public benefit corporations, (501c3). New
City America knows that the work of the
district management corporation is best
done through a new 501c3 since the work of
the district is similar to the old “Improvement
Associations” created in the early 1900s. The
funding and work is based upon reducing the
“burden of government” by providing and
funding special benefit services in the public
rights of way. By doing so, the district
management corporation is playing a
constructive role of improving not only for
the area that property owners and business
owners but also to the citizens as a whole
within their respective city. The 501c3 also
allows individuals and companies to give
charitable donations to the corporations to
build new public spaces or enhance the
districts through new public improvements.

This was the method that the Rockefeller
Foundation gave to endowing Bryant Park in
New York City in the 1980s. Downtown El
Cajon’s Management Corporation is a 501c6
(mutual benefit non-profit corporation),
which provides non-charitable benefit to
donors for projects and activities in
Downtown. A restructuring of the Owners
Association into a 501c3 will be one of the
recommendations of this report.

4. Taking Advantage of Politics and Timing:

Politics and timing are critical to the success
of any effort to create a sustainable funding
mechanism for interested Downtown
stakeholders. Since the City Manager’s
office, with Mayoral and Council support,
received the authorization to hire a
consulting firm to review the current status in
Downtown El Cajon, this demonstrates that
the political climate and timing are right in El
Cajon in 2024. The review of the
consultants’ report will take into account the
fact that the Mayor, City Manager’s office and
the City Council seek to have a more
activated Downtown with more
development, more customers and create a
more dynamic Downtown, particularly in a
post COVID environment. That will include
greater outdoor dining options, more
mixed-use development and more
interesting public art and public space
opportunities. The political environment and
the timing is perfect for this re-invention and
reorientation of Downtown based upon the
success and reach of the current PBID as a
funding mechanism for special benefits in
Downtown.

In a recently published magazine, “My El Cajon”,
released by City Manager Graham Mitchell,
stated the following in his introductory
statement called “Open for Business”:
“The adage “evolve or die” resonates not only
in business but also in the vitality of
communities. This principle underscores the
crucial need for constant renewal,
modernization, and revitalization, which are
driven by the lifeblood of economic
development. In recent years, the El Cajon
City Council has prioritized economic
growth, a commitment poised to remain at
the forefront of our agenda.”
“Economic development from a municipal
standpoint, involves aligning property
owners, enthusiastic developers, businesses,
and resources to cultivate investment
opportunities within our community. This
infusion of capital and effort should yield
community benefits, including employment
opportunities, local government revenue and
enhanced access to goods and services. In
essence economic development fuels, the
growth of our local economy, ultimately
enhancing the quality of life for El Cajon’s
residents, workforce, and visitors.”
“Given these constraints, you might wonder
how a city can drive economic development.

The answer is “Quite a lot.” Cities can craft
economic development strategies that
outline objectives, leveraging their
community’s competitive strengths and
weaknesses. Our City Council recently
approved the El Cajon Economic
Development Strategic Plan, charting a new
course toward prosperity.”
“Cities can also adopt policies and
procedures that empower business and
entrepreneurship while minimizing obstacles
to development.”
This statement from the City Manager
demonstrates that the “politics and timing” are
right to re-invent Downtown El Cajon.

5. Being “Results Oriented” and Integrating
Public Spaces Throughout the District
Management Process: Much of the credit for
the concept of Placemaking is based upon
the excellent work done from the 1980s up
to the pandemic, led Project for Public
Spaces. The person who inspired and led
placemaking as an international movement
was Fred Kent, the former CEO. Fred and his
partner and wife Cathy held international
conferences to promote how public spaces
should be envisioned and implemented.

Fred believed that 80% of the success of any
public space was based upon management.

Marco Li Mandri, President of New City
America was on the Leadership Council of
the Project for Public Spaces and put this
concept to work through the development
of successful fundraising techniques and
activation of the public spaces in Little Italy
and the other districts they manage. Fred
and Cathy’s work has been replicated
throughout the nation. Downtown El Cajon
has some very good and yet to be activated
public spaces which can become a great
opportunity for attracting new capital to
Downtown since these public spaces,
commons and plazas become new
Downtown residents’ backyard when they
move into new condos and apartments in
Downtown.

The most successful downtowns, in our opinion,
will be the ones that support and implement the
New City Standards models or something
similar. The movement towards successful
Downtowns and City Centers will increasingly be
based upon following successful models in
Board makeup, Board Committees,
transparency, entrepreneurial partnerships with
new developers who collectively understand the
great value in creating and managing new public
spaces within the districts.

II. REVIEW OF RECENT REPORTS ON

DOWNTOWN
Prior to launching the analysis of Downtown,
NCA reviewed past reports and studies of the
Downtown. Many included helpful
recommendations for improving Downtown El
Cajon. Those reports, including excerpts from
their findings, include:
a. El Cajon Blue Ribbon Commission
Report (2011)
b. Mixed Use Overlay Zones (From the
Downtown Specific Plan)
c. Economic Development Strategic
Plan (2022)
d. Transit District Specific Plan (2018)
e. Downtown El Cajon Business
Partners Inc, Financial Statements
(June 2022)
A. EL CAJON BLUE RIBBON COMMISSION
REPORT (2011):

In 2011, the City Council commissioned a group
of citizens and business owners to “investigate
the performance of El Cajon Community
Development Corporation (CDC). There are four
recommendations that have relevance today.

Below are the four recommendations from the
Blue Ribbon Commission, along with
commentary from NCA.

1. “It (The CDC running the PBID), is
specifically apparent, that at least 50% of
the PBID dollars collected are used for
overhead and approximately 25% are
spent on car shows and concerts –
recognize that the car shows and
concerts benefit El Cajon and very few of
the people assessed by the PBID. Little
benefit can be identified to stakeholders
assessed outside the Main S tr
eet
corridor.” (page 5).

Note: The current PBID Board continues to
prioritize car shows and concerts. The impact
of these events may be beneficial to businesses
directly adjacent to the venue, but we are not
sure the majority of the property owners and
businesses in Downtown derive increased
revenues from these efforts and use of
collected property assessments.

2. “There needs to be developers, builders,
significant business leaders and most
importantly commercial real estate
specialists that can bring together the
information necessary to determine a
realistic vision and know how to
implement it.” (page 15)
Note: This is more relevant now than ever.

Those in the real estate industry, including
brokers and developers, should be prioritized
as members of the PBID Board. These
professionals have a network of developers,
particularly mixed-use developers, that could
bring investment to the El Cajon’s Downtown.

Bringing them onto the board could change
the makeup of the Board and the priorities of
the district.

3. Car Shows and Concerts: “The limited
benefits of the concerts and car shows
specifically benefit the City of El Cajon
and the restaurants on Main Street…We
are recommending that a Downtown
Business Owners Association be formed
in the absence of the PBID…..Presently
the CDC spends at least $150,000 of the
PBID or approximately one fourth of the
PBID budget on these two items.” (page
18).

Note: It appears that car shows and summer
concerts, though well attended, continue to be
the priority events for the current Board of
Directors. In the meantime, some of the real
traffic generators for Downtown, namely
events at The Magnolia, do not have a
representative on the PBID Board and
incorporating their programming into a full
evening in Downtown appears not to be a
priority. Cathy Zeman, CFO, and member of the
current PBID Board, summarized the impacts of
the car show and concerts. Based on her
estimates, the car shows generate
approximately 2,000 weekly and upwards of
5,000 visitors on the four to five times the
street is closed for the car show and as many as
10,000 for the annual Trunk or Treat car show.

Concerts attract between 1,750 and 2,000
visitors most weeks, with up to 4,000 for the
more popular performers.

While these numbers are healthy, it is unclear
how much these ongoing annual events benefit
business and property owners outside of the
concert and show venues in Downtown El
Cajon, something that was mentioned in the
Blue Ribbon report.

4. Summary of Evaluation based upon Key
Performance Indicators: The report listed
6 items as key performance indicators
(KPI), ratings to be from high to low.

Key Performance Rating
CDC Organizational
effectiveness Low
PBID Performance Low
Marketing & Programs
Medium
Grant Project, Benefits to
the City Low
Redevelopment Activities
Performance Low
Economic Justification (Audit,
Management of PBID) Low
Note: It appears that some of the comments
that were directed to the CDC in 2011 may be
relevant today. Without the Redevelopment
Agency, the PBID Board currently has a limited
ability to apply for and receive grants.

However, the prioritization of attracting major
players onto the Board (Marriott and The
Magnolia) remains a problem. The PBID Board
is filled with property owners in Downtown
that have deep and productive relationships in
Downtown El Cajon, but much more is needed.

The high-quality residential projects that were
built in the early 2000s at Main and Magnolia by
local developer Daryl Priest, are an excellent
example of what Downtown El Cajon can
become in the future years. Mixed-use
development is the future of any downtown or
town center today.

B. MIXED USE OVERLAY ZONES FROM THE

DOWNTOWN EL CAJON SPECIFIC PLAN
182:

The City of El Cajon has created an entitlement
guideline report, which is extremely helpful in
showing developers what they can build by right
within the Downtown District. Many of the
points in this report are directly relevant to the
potential reinvention of Downtown El Cajon and
will be cited here. The introduction of this
reports states the following:

The Mixed-Use Overlay Zone establishes
zoning districts that are intended to
provide for the overly transition of certain
areas of El Cajon into walkable districts
that accommodate a mixture of retail,
office, and residential uses, while
protecting existing uses. It is further
intended to protect the existing job base,
develop mixed use cores, provide
transportation, pedestrian and visual
connectivity, and develop safe,
well-designed neighborhoods.

Relevant statements from the Specific Plan
include:

1. History: “In the early years of the century, the
invention of the automobile began to
influence Main Street businesses. By the
mid-1920s, the street was declared part of
the State Highway system. By the 1930s, this
required wider, paved streets and sidewalks.

But shopfronts were in the way, forcing the
State to order business owners on Main
Street to either tear the front dozen feet of
their buildings off, or move the entire
building back. Not wanting to do either,
owners were allowed to move ground floor
PAGE 7
storefronts back the required distance. But
they left their roofs, and second floors in
some cases, where they were, propping
them up with support columns to form an
arcade. This has become the Districts’ most
distinguishing architectural feature today.”

2. Parking: “Additional parking spaces are not
required for a change of use of an existing
building…New developments…shall be
addressed in the context of the Downtown
urban environment and will be considered in
conjunction with the associated planning
permit application.” (page 1/1)

3. Design Guidelines: “To recapture a fair
portion of discriminating shoppers now
going elsewhere, the District must renovate
and create places for the many people
visiting the County Courthouse, East County
Performing Arts Center, City Hall and local
businesses. Services for shoppers must be
increased and merchandise lines expanded.

More inviting spaces for visitors, employees
and local residents are required so that
people can meet, gather and talk before
strolling or moving on. These standards
provide guidance to enhance the pedestrian
experience and improve the value of building
facades.

These regulations attempt to encourage
entrepreneurial redevelopment of the
Downtown District as an art, entertainment and
specialty retail and service district for the East
County region. (page 21)
C. ECONOMIC DEVELOPMENT STRATEGIC
PLAN:

In a report from the Natelson Dale Group (an
Economic Development Strategic Plan) was
reviewed by NCA and we had two phone
conversations on the status of this report. This
report was completed in June 2022, so its
recommendations and findings are very relevant
to Downtown El Cajon today. Four quotes will
be taken from that report to clarify the status of
Downtown today:

1. Land Use/Placemaking Programs:

Physical Changes to Accommodate
Quality Growth: “Position Downtown El
Cajon as a regional arts/entertainment
center” (page 4)

2. “Facilitation of public-private Downtown
Working Group (to identify specific needs
and actions to elevate Downtown’s
market position). Downtown component
of overall marketing campaign” (page 5)

3. Position Downtown El Cajon as a
Regional Arts/Entertainment Center: (p.
34) Brief Description of Program: This
strategy will build on existing assets (e.g.

Magnolia Performing Arts Center,
Prescott Promenade, etc.) to leverage
and expand Downtown’s attractiveness
as an entertainment destination.

4. City’s Positioning/Roles in
Implementation: “City will begin by
leading the investigation into how this
strategy can relate to and best be
coordinated with other Downtown
strategies, including the potential role of
festivals, special events, housing
development, etc., as the appropriate
support further research into this issue.”
Action Steps / First Year:
a. “Convene “downtown working group”
comprised (at a minimum) of the partners
listed below to identify critical connections
between EDSP (Economic Development
Strategic Plan) and Downtown-specific
business/development opportunities
(including potential for expanding market
rate housing).”
b. “Incorporate Downtown positioning strategy
in City Economic Development marketing
initiative.”
c. Evaluate potential options for providing
density bonuses (in addition to the existing
mixed-use overlay) to incentivize
development of higher end/higher density
housing)
Action Steps / Second Year:
a. “Pursue additional strategies (based on needs
identified by working group) to focus City
policies and resources on the Downtown.”
b. “Partnership Resources:
• Downtown El Cajon Business Partners;
• San Diego E. County Chamber
• East County EDC
• Live Nation
• Local/regional arts organizations
• Housing/mixed use developers.

Convene Downtown working group and
facilitate 2 – 4 scoping meetings”.

D. TRANSIT DISTRICT SPECIFIC PLAN:

Quotes from the City of El Cajon, Transit District
Specific Plan, Adopted 2018, City Council
Resolution No. 039-18
“The following represents some of the key
themes derived from the outreach process:
(page 9)
• Add more trees and vegetation.
• Add public art, lighting, trash cans,
shade/trees.
• Address challenges with some properties
that might not turn over in the near term,
especially, properties that are at key
nodes in the community.
• Create a walkable retail environment,
create a Main Street or Village experience
with small businesses and increased
active uses.”
E. DOWNTOWN EL CAJON BUSINESS

PARTNERS INC, FINANCIAL STATEMENTS
(JUNE 2022)
As part of its contract with the City, the
Downtown El Cajon Business Partners is
required to submit an annual report, audits, and
annual financial statements. Reviewing these
documents raised several points of concern.

Please keep in mind that the Management
District Plan, approved by the property owners
through the mail ballot proceeding, is almost like
a “contract” to explain which special benefits will
be funded with the formation of the PBID.

Normally, a 10% deviation is allowable over the
term of the plan per category. The reason why
categories of services are outlined in the
Management District Plan is to inform property
owners how their designated Board or “Owners
Association” will allocate PBID funds during the
term of the District. The Auditor has not looked
at the plan to determine the percentages and
amounts that the property owners voted on in
2016, and rather just reported on what the
Downtown El Cajon Business Partners provided.

On page 5, the fiscal year ending on June 30th,
2022, the Auditor had listed the following
expenditures based upon the previous fiscal
year.

Remaining arcades in Downtown
I. INTRODUCTION, NEW CITY

STANDARDS
Overview of Downtown PBID and General
Overview of Financing Downtown
Improvements:

Downtown El Cajon’s PBID has been in place
since 1997, around 2 years after the Property
Business Improvement District Act was approved
by the California State Legislature in 1994.

California was late to the game, relative to other
states, in adopting a Downtown financing
mechanism based upon property assessments,
not business license assessments. Previously,
business communities in the state only had the
Parking and Business Improvement District Act
in the Streets and Highway Code to help
business communities compete against the
impact of shopping malls. The original BID law
only impacted business license holders and the
formation of the district was only based upon
“majority protest.” Under the old BID law, City
Councils could create these districts on their
own initiative. In the late 1960s until 1994, these
were the districts of choice for business districts
in California with over 300 being formed in that
period.

The problem with these districts is that they were
based upon business license holders and every
city has a different method for levying business
licenses or taxes on business owners. In Los
Angeles, businesses licenses are based upon
gross receipts. In San Diego, businesses pay into
BIDs based upon their number of employees.

Throughout the 450 cities in the state, no two
cities use the same methodology to have
businesses pay for their licenses. Also, if there
was a vacancy, no revenue would be generated
from that building.

BIDs under this older system were chronically
undercapitalized, generated only enough money
usually to pay staff and had no other sustainable
revenues to help pay for improvements. The City
of San Diego led the way with these business
license-based districts having, at one time, up to
18 functioning BIDs.

With the adoption of the PBID law, a new
funding mechanism for Downtown and business
communities in California was now allowable.

With the approval of Proposition 218 by the
voters of California in 1996, which amended
Article 13 (d) of the state constitution, property
assessments were required to include an
assessment engineer’s report, required a mail
balloting procedure, and authorized that
“weighted” property owners, or those who paid
higher assessments had greater influence in the
establishment of the district. Instead of the
process for approval being “one property, one
vote,” it became “one dollar, one vote.” Thus, the
higher amount of contribution, the greater vote
one might have in the formation process.

More importantly, the new amendment to the
state constitution required a nexus between
what a property owner paid and what they
received and stated clearly that no state or
federal properties would be exempted unless
they could demonstrate by “clear and
convincing evidence” that they would not derive
benefits. Property owners could only be
assessed for “special benefits” or those programs
and activities that were over and above general
benefits that were currently being provided by a
municipal or county government.

This meant that cities with city halls located in or
large property holdings within downtowns, they
became the largest property owners and
therefore the “weighted property owners” in
their respective locations.

The PBID law has a large fundamental flaw in
that it requires a petition signed by 50% of the
weighted property owners simply to trigger the
Prop 218 required mail ballot procedure. If

49.5% of the property owners signed a petition
and they couldn’t generate any more signatures,
the PBID would never get the support it needed
to enter into the City governed mail ballot
procedure. Therefore, due to the lack of support
by over half of the weighted constituents (by
dollar amount) the district formation effort
would collapse.

Two other issues that have made the PBID law
somewhat obsolete, besides the incredibly high
petition required, were the maximum term of the
district as well as the name of the legislation. In
the end, the PBID law benefits formation
consultants, due to the fact that the district can
be formed for only 5 years the first term and then
a maximum of 10 years for each renewal.

The other problem with the PBID law is the
name: Property Business Improvement District.

Downtowns nationwide are increasingly
becoming residential with housing embedded in
downtowns have become the most prevalent
land use of non-historic building parcels.

Downtowns, particularly in the 21st century, are
becoming neighborhoods with new condo and
apartment developments creating new demands
due to things such as walkability, parks, plazas,
and other neighborhood amenities.

The one issue the legislation did correctly was to
allow for Charter Cities to create their owner
methods of assessment, which almost 25 cities
in the state have done. The PBID Act states:
36603. Nothing in this part is intended to
preempt the authority of a charter city to
adopt ordinances providing for a different
method of levying assessments for similar or
additional purposes from those set forth in
this part. A property and business
improvement district created pursuant to this
part is expressly exempt from the provisions
of the Special Assessment Investigation,
Limitation and Majority Protest Act of 1931
(Division 4 (commencing with Section
2800)).

Since El Cajon is a Charter City, they have the
right to create a new enabling ordinance that
would be applicable City wide and could impact
the name of the district (not only business
improvement), the term and the petition
threshold. A proposed new enabling ordinance
has already been included in this report,
attachment 1.

New City Standards:

New City America is a national company based
in San Diego’s Little Italy that has successfully
formed 93 similar districts (PBIDs, Community
Benefit Districts, BIDs, and Tourism
Improvement Districts) since 1996. It also
currently manages 6 districts statewide, so it
understands the “A to Z” of how to write a District
plan based upon real world experience and costs
and has been a leader in public space design and
development in the districts it has managed.

Over the past 25 years, New City America staff
has come up with a five-point check list for
ensuring that property assessment districts
formed have the greatest chance of producing
tangible results to its constituents as well as to
the cities in which it works. One of the best
examples of the success of this effort and
utilizing the “New City Standards” approach has
been in Downtown San Diego’s Little Italy. Little
Italy has grown into one of the most dynamic
and successful business communities and
neighborhoods nationwide, demonstrated by
not losing any of its over 70 restaurants, café,
bars or eateries, due to the devasting impact of
the pandemic. Little Italy emerged from the
pandemic stronger than ever and is on a
trajectory for additional dynamic growth.

Another good example in the County is to be
found in Downtown Chula Vista, which New City
America has managed over the past 2 years. We
have restructured that organization, converted
its Owners Association to a 501c3 and launched
a series of new public spaces and great events in
that Downtown.

The five points of the New City Standards include
the following proven standards:

1. The Importance of Place: The concept of
“Place” has caught on like wildfire through
the articulation of Placemaking arising out of
New York City in the 1980s. At times, places
are old or historic, new and emerging, or are
being re-invented by new mixed-use
development. The key thing is that the Place
must have a “handle,” or it must convey
positive images when someone mentions it.

Places that have little or no public identity are
hard to resurrect, so it is critical that the
leaders in that community know why they
want to improve it and how the Place will be
perceived by the public at large. This is
directly relevant to Downtown El Cajon
which has had a PBID in place for over 25
years now but has yet to establish a clear
identity in the County. The City of El Cajon
has such a “place” in its Downtown.

2. Need for Independent Financing: Many
places falter because they are
undercapitalized, not organized or are
dependent upon non-reoccurring revenue
streams. Places that lack sustainable,
independent, community funding are always
hampered by the inability to take action, due
to not having the financial resources to do
so. The best way to ensure that the district in
question can expedite smooth and dynamic
development is by establishing a sustainable
funding mechanism. That can be through
property assessment districts, use of parking
meter revenues or huge donor contributions.

The best method is to use a combination of
all of those revenue streams. Downtown El
Cajon has a PBID and that means that this
Downtown has met that condition.

3. Creating and Overseeing an
Entrepreneurial District Management
Corporation: District management
corporations are the non-profit entities that
are under contract with cities managing
Downtown property assessment districts or
BIDs. Those non-profits usually take the
form of mutual benefit corporations (501c6)
or public benefit corporations, (501c3). New
City America knows that the work of the
district management corporation is best
done through a new 501c3 since the work of
the district is similar to the old “Improvement
Associations” created in the early 1900s. The
funding and work is based upon reducing the
“burden of government” by providing and
funding special benefit services in the public
rights of way. By doing so, the district
management corporation is playing a
constructive role of improving not only for
the area that property owners and business
owners but also to the citizens as a whole
within their respective city. The 501c3 also
allows individuals and companies to give
charitable donations to the corporations to
build new public spaces or enhance the
districts through new public improvements.

This was the method that the Rockefeller
Foundation gave to endowing Bryant Park in
New York City in the 1980s. Downtown El
Cajon’s Management Corporation is a 501c6
(mutual benefit non-profit corporation),
which provides non-charitable benefit to
donors for projects and activities in
Downtown. A restructuring of the Owners
Association into a 501c3 will be one of the
recommendations of this report.

4. Taking Advantage of Politics and Timing:

Politics and timing are critical to the success
of any effort to create a sustainable funding
mechanism for interested Downtown
stakeholders. Since the City Manager’s
office, with Mayoral and Council support,
received the authorization to hire a
consulting firm to review the current status in
Downtown El Cajon, this demonstrates that
the political climate and timing are right in El
Cajon in 2024. The review of the
consultants’ report will take into account the
fact that the Mayor, City Manager’s office and
the City Council seek to have a more
activated Downtown with more
development, more customers and create a
more dynamic Downtown, particularly in a
post COVID environment. That will include
greater outdoor dining options, more
mixed-use development and more
interesting public art and public space
opportunities. The political environment and
the timing is perfect for this re-invention and
reorientation of Downtown based upon the
success and reach of the current PBID as a
funding mechanism for special benefits in
Downtown.

In a recently published magazine, “My El Cajon”,
released by City Manager Graham Mitchell,
stated the following in his introductory
statement called “Open for Business”:
“The adage “evolve or die” resonates not only
in business but also in the vitality of
communities. This principle underscores the
crucial need for constant renewal,
modernization, and revitalization, which are
driven by the lifeblood of economic
development. In recent years, the El Cajon
City Council has prioritized economic
growth, a commitment poised to remain at
the forefront of our agenda.”
“Economic development from a municipal
standpoint, involves aligning property
owners, enthusiastic developers, businesses,
and resources to cultivate investment
opportunities within our community. This
infusion of capital and effort should yield
community benefits, including employment
opportunities, local government revenue and
enhanced access to goods and services. In
essence economic development fuels, the
growth of our local economy, ultimately
enhancing the quality of life for El Cajon’s
residents, workforce, and visitors.”
“Given these constraints, you might wonder
how a city can drive economic development.

The answer is “Quite a lot.” Cities can craft
economic development strategies that
outline objectives, leveraging their
community’s competitive strengths and
weaknesses. Our City Council recently
approved the El Cajon Economic
Development Strategic Plan, charting a new
course toward prosperity.”
“Cities can also adopt policies and
procedures that empower business and
entrepreneurship while minimizing obstacles
to development.”
This statement from the City Manager
demonstrates that the “politics and timing” are
right to re-invent Downtown El Cajon.

5. Being “Results Oriented” and Integrating
Public Spaces Throughout the District
Management Process: Much of the credit for
the concept of Placemaking is based upon
the excellent work done from the 1980s up
to the pandemic, led Project for Public
Spaces. The person who inspired and led
placemaking as an international movement
was Fred Kent, the former CEO. Fred and his
partner and wife Cathy held international
conferences to promote how public spaces
should be envisioned and implemented.

Fred believed that 80% of the success of any
public space was based upon management.

Marco Li Mandri, President of New City
America was on the Leadership Council of
the Project for Public Spaces and put this
concept to work through the development
of successful fundraising techniques and
activation of the public spaces in Little Italy
and the other districts they manage. Fred
and Cathy’s work has been replicated
throughout the nation. Downtown El Cajon
has some very good and yet to be activated
public spaces which can become a great
opportunity for attracting new capital to
Downtown since these public spaces,
commons and plazas become new
Downtown residents’ backyard when they
move into new condos and apartments in
Downtown.

The most successful downtowns, in our opinion,
will be the ones that support and implement the
New City Standards models or something
similar. The movement towards successful
Downtowns and City Centers will increasingly be
based upon following successful models in
Board makeup, Board Committees,
transparency, entrepreneurial partnerships with
new developers who collectively understand the
great value in creating and managing new public
spaces within the districts.

II. REVIEW OF RECENT REPORTS ON

DOWNTOWN
Prior to launching the analysis of Downtown,
NCA reviewed past reports and studies of the
Downtown. Many included helpful
recommendations for improving Downtown El
Cajon. Those reports, including excerpts from
their findings, include:
a. El Cajon Blue Ribbon Commission
Report (2011)
b. Mixed Use Overlay Zones (From the
Downtown Specific Plan)
c. Economic Development Strategic
Plan (2022)
d. Transit District Specific Plan (2018)
e. Downtown El Cajon Business
Partners Inc, Financial Statements
(June 2022)
A. EL CAJON BLUE RIBBON COMMISSION
REPORT (2011):

In 2011, the City Council commissioned a group
of citizens and business owners to “investigate
the performance of El Cajon Community
Development Corporation (CDC). There are four
recommendations that have relevance today.

Below are the four recommendations from the
Blue Ribbon Commission, along with
commentary from NCA.

1. “It (The CDC running the PBID), is
specifically apparent, that at least 50% of
the PBID dollars collected are used for
overhead and approximately 25% are
spent on car shows and concerts –
recognize that the car shows and
concerts benefit El Cajon and very few of
the people assessed by the PBID. Little
benefit can be identified to stakeholders
assessed outside the Main S tr
eet
corridor.” (page 5).

Note: The current PBID Board continues to
prioritize car shows and concerts. The impact
of these events may be beneficial to businesses
directly adjacent to the venue, but we are not
sure the majority of the property owners and
businesses in Downtown derive increased
revenues from these efforts and use of
collected property assessments.

2. “There needs to be developers, builders,
significant business leaders and most
importantly commercial real estate
specialists that can bring together the
information necessary to determine a
realistic vision and know how to
implement it.” (page 15)
Note: This is more relevant now than ever.

Those in the real estate industry, including
brokers and developers, should be prioritized
as members of the PBID Board. These
professionals have a network of developers,
particularly mixed-use developers, that could
bring investment to the El Cajon’s Downtown.

Bringing them onto the board could change
the makeup of the Board and the priorities of
the district.

3. Car Shows and Concerts: “The limited
benefits of the concerts and car shows
specifically benefit the City of El Cajon
and the restaurants on Main Street…We
are recommending that a Downtown
Business Owners Association be formed
in the absence of the PBID…..Presently
the CDC spends at least $150,000 of the
PBID or approximately one fourth of the
PBID budget on these two items.” (page
18).

Note: It appears that car shows and summer
concerts, though well attended, continue to be
the priority events for the current Board of
Directors. In the meantime, some of the real
traffic generators for Downtown, namely
events at The Magnolia, do not have a
representative on the PBID Board and
incorporating their programming into a full
evening in Downtown appears not to be a
priority. Cathy Zeman, CFO, and member of the
current PBID Board, summarized the impacts of
the car show and concerts. Based on her
estimates, the car shows generate
approximately 2,000 weekly and upwards of
5,000 visitors on the four to five times the
street is closed for the car show and as many as
10,000 for the annual Trunk or Treat car show.

Concerts attract between 1,750 and 2,000
visitors most weeks, with up to 4,000 for the
more popular performers.

While these numbers are healthy, it is unclear
how much these ongoing annual events benefit
business and property owners outside of the
concert and show venues in Downtown El
Cajon, something that was mentioned in the
Blue Ribbon report.

4. Summary of Evaluation based upon Key
Performance Indicators: The report listed
6 items as key performance indicators
(KPI), ratings to be from high to low.

Key Performance Rating
CDC Organizational
effectiveness Low
PBID Performance Low
Marketing & Programs
Medium
Grant Project, Benefits to
the City Low
Redevelopment Activities
Performance Low
Economic Justification (Audit,
Management of PBID) Low
Note: It appears that some of the comments
that were directed to the CDC in 2011 may be
relevant today. Without the Redevelopment
Agency, the PBID Board currently has a limited
ability to apply for and receive grants.

However, the prioritization of attracting major
players onto the Board (Marriott and The
Magnolia) remains a problem. The PBID Board
is filled with property owners in Downtown
that have deep and productive relationships in
Downtown El Cajon, but much more is needed.

The high-quality residential projects that were
built in the early 2000s at Main and Magnolia by
local developer Daryl Priest, are an excellent
example of what Downtown El Cajon can
become in the future years. Mixed-use
development is the future of any downtown or
town center today.

B. MIXED USE OVERLAY ZONES FROM THE

DOWNTOWN EL CAJON SPECIFIC PLAN
182:

The City of El Cajon has created an entitlement
guideline report, which is extremely helpful in
showing developers what they can build by right
within the Downtown District. Many of the
points in this report are directly relevant to the
potential reinvention of Downtown El Cajon and
will be cited here. The introduction of this
reports states the following:

The Mixed-Use Overlay Zone establishes
zoning districts that are intended to
provide for the overly transition of certain
areas of El Cajon into walkable districts
that accommodate a mixture of retail,
office, and residential uses, while
protecting existing uses. It is further
intended to protect the existing job base,
develop mixed use cores, provide
transportation, pedestrian and visual
connectivity, and develop safe,
well-designed neighborhoods.

Relevant statements from the Specific Plan
include:

1. History: “In the early years of the century, the
invention of the automobile began to
influence Main Street businesses. By the
mid-1920s, the street was declared part of
the State Highway system. By the 1930s, this
required wider, paved streets and sidewalks.

But shopfronts were in the way, forcing the
State to order business owners on Main
Street to either tear the front dozen feet of
their buildings off, or move the entire
building back. Not wanting to do either,
owners were allowed to move ground floor
storefronts back the required distance. But
they left their roofs, and second floors in
some cases, where they were, propping
them up with support columns to form an
arcade. This has become the Districts’ most
distinguishing architectural feature today.”

2. Parking: “Additional parking spaces are not
required for a change of use of an existing
building…New developments…shall be
addressed in the context of the Downtown
urban environment and will be considered in
conjunction with the associated planning
permit application.” (page 1/1)

3. Design Guidelines: “To recapture a fair
portion of discriminating shoppers now
going elsewhere, the District must renovate
and create places for the many people
visiting the County Courthouse, East County
Performing Arts Center, City Hall and local
businesses. Services for shoppers must be
increased and merchandise lines expanded.

More inviting spaces for visitors, employees
and local residents are required so that
people can meet, gather and talk before
strolling or moving on. These standards
provide guidance to enhance the pedestrian
experience and improve the value of building
facades.

These regulations attempt to encourage
entrepreneurial redevelopment of the
Downtown District as an art, entertainment and
specialty retail and service district for the East
County region. (page 21)
C. ECONOMIC DEVELOPMENT STRATEGIC
PLAN:

In a report from the Natelson Dale Group (an
Economic Development Strategic Plan) was
reviewed by NCA and we had two phone
conversations on the status of this report. This
report was completed in June 2022, so its
recommendations and findings are very relevant
to Downtown El Cajon today. Four quotes will
be taken from that report to clarify the status of
Downtown today:

1. Land Use/Placemaking Programs:

Physical Changes to Accommodate
Quality Growth: “Position Downtown El
Cajon as a regional arts/entertainment
center” (page 4)

2. “Facilitation of public-private Downtown
Working Group (to identify specific needs
and actions to elevate Downtown’s
market position). Downtown component
of overall marketing campaign” (page 5)

3. Position Downtown El Cajon as a
Regional Arts/Entertainment Center: (p.
34) Brief Description of Program: This
strategy will build on existing assets (e.g.

Magnolia Performing Arts Center,
Prescott Promenade, etc.) to leverage
and expand Downtown’s attractiveness
as an entertainment destination.

4. City’s Positioning/Roles in
Implementation: “City will begin by
leading the investigation into how this
strategy can relate to and best be
coordinated with other Downtown
strategies, including the potential role of
festivals, special events, housing
development, etc., as the appropriate
support further research into this issue.”
Action Steps / First Year:
a. “Convene “downtown working group”
comprised (at a minimum) of the partners
listed below to identify critical connections
between EDSP (Economic Development
Strategic Plan) and Downtown-specific
business/development opportunities
(including potential for expanding market
rate housing).”
b. “Incorporate Downtown positioning strategy
in City Economic Development marketing
initiative.”
c. Evaluate potential options for providing
density bonuses (in addition to the existing
mixed-use overlay) to incentivize
development of higher end/higher density
housing)
PAGE 8
Action Steps / Second Year:
a. “Pursue additional strategies (based on needs
identified by working group) to focus City
policies and resources on the Downtown.”
b. “Partnership Resources:
• Downtown El Cajon Business Partners;
• San Diego E. County Chamber
• East County EDC
• Live Nation
• Local/regional arts organizations
• Housing/mixed use developers.

Convene Downtown working group and
facilitate 2 – 4 scoping meetings”.

D. TRANSIT DISTRICT SPECIFIC PLAN:

Quotes from the City of El Cajon, Transit District
Specific Plan, Adopted 2018, City Council
Resolution No. 039-18
“The following represents some of the key
themes derived from the outreach process:
(page 9)
• Add more trees and vegetation.
• Add public art, lighting, trash cans,
shade/trees.
• Address challenges with some properties
that might not turn over in the near term,
especially, properties that are at key
nodes in the community.
• Create a walkable retail environment,
create a Main Street or Village experience
with small businesses and increased
active uses.”
E. DOWNTOWN EL CAJON BUSINESS

PARTNERS INC, FINANCIAL STATEMENTS
(JUNE 2022)
As part of its contract with the City, the
Downtown El Cajon Business Partners is
required to submit an annual report, audits, and
annual financial statements. Reviewing these
documents raised several points of concern.

Please keep in mind that the Management
District Plan, approved by the property owners
through the mail ballot proceeding, is almost like
a “contract” to explain which special benefits will
be funded with the formation of the PBID.

Normally, a 10% deviation is allowable over the
term of the plan per category. The reason why
categories of services are outlined in the
Management District Plan is to inform property
owners how their designated Board or “Owners
Association” will allocate PBID funds during the
term of the District. The Auditor has not looked
at the plan to determine the percentages and
amounts that the property owners voted on in
2016, and rather just reported on what the
Downtown El Cajon Business Partners provided.

On page 5, the fiscal year ending on June 30th,
2022, the Auditor had listed the following
expenditures based upon the previous fiscal
year.

II. REVIEW OF RECENT REPORTS ON

DOWNTOWN
Prior to launching the analysis of Downtown,
NCA reviewed past reports and studies of the
Downtown. Many included helpful
recommendations for improving Downtown El
Cajon. Those reports, including excerpts from
their findings, include:
a. El Cajon Blue Ribbon Commission
Report (2011)
b. Mixed Use Overlay Zones (From the
Downtown Specific Plan)
c. Economic Development Strategic
Plan (2022)
d. Transit District Specific Plan (2018)
e. Downtown El Cajon Business
Partners Inc, Financial Statements
(June 2022)
A. EL CAJON BLUE RIBBON COMMISSION
REPORT (2011):

In 2011, the City Council commissioned a group
of citizens and business owners to “investigate
the performance of El Cajon Community
Development Corporation (CDC). There are four
recommendations that have relevance today.

Below are the four recommendations from the
Blue Ribbon Commission, along with
commentary from NCA.

1. “It (The CDC running the PBID), is
specifically apparent, that at least 50% of
the PBID dollars collected are used for
overhead and approximately 25% are
spent on car shows and concerts –
recognize that the car shows and
concerts benefit El Cajon and very few of
the people assessed by the PBID. Little
benefit can be identified to stakeholders
assessed outside the Main Street
corridor.” (page 5).

Note: The current PBID Board continues to
prioritize car shows and concerts. The impact
of these events may be beneficial to businesses
directly adjacent to the venue, but we are not
sure the majority of the property owners and
businesses in Downtown derive increased
revenues from these efforts and use of
collected property assessments.

2. “There needs to be developers, builders,
significant business leaders and most
importantly commercial real estate
specialists that can bring together the
information necessary to determine a
realistic vision and know how to
implement it.” (page 15)
Note: This is more relevant now than ever.

Those in the real estate industry, including
brokers and developers, should be prioritized
as members of the PBID Board. These
professionals have a network of developers,
particularly mixed-use developers, that could
bring investment to the El Cajon’s Downtown.

Bringing them onto the board could change
the makeup of the Board and the priorities of
the district.

3. Car Shows and Concerts: “The limited
benefits of the concerts and car shows
specifically benefit the City of El Cajon
and the restaurants on Main Street…We
are recommending that a Downtown
Business Owners Association be formed
in the absence of the PBID…..Presently
the CDC spends at least $150,000 of the
PBID or approximately one fourth of the
PBID budget on these two items.” (page
18).

Note: It appears that car shows and summer
concerts, though well attended, continue to be
the priority events for the current Board of
Directors. In the meantime, some of the real
traffic generators for Downtown, namely
events at The Magnolia, do not have a
representative on the PBID Board and
incorporating their programming into a full
evening in Downtown appears not to be a
priority. Cathy Zeman, CFO, and member of the
current PBID Board, summarized the impacts of
the car show and concerts. Based on her
estimates, the car shows generate
approximately 2,000 weekly and upwards of
5,000 visitors on the four to five times the
street is closed for the car show and as many as
10,000 for the annual Trunk or Treat car show.

Concerts attract between 1,750 and 2,000
visitors most weeks, with up to 4,000 for the
more popular performers.

While these numbers are healthy, it is unclear
how much these ongoing annual events benefit
business and property owners outside of the
concert and show venues in Downtown El
Cajon, something that was mentioned in the
Blue Ribbon report.

4. Summary of Evaluation based upon Key
Performance Indicators: The report listed
6 items as key performance indicators
(KPI), ratings to be from high to low.

Key Performance Rating
CDC Organizational
effectiveness Low
PBID Performance Low
Marketing & Programs
Medium
Grant Project, Benefits to
the City Low
Redevelopment Activities
Performance Low
Economic Justification (Audit,
Management of PBID) Low
Note: It appears that some of the comments
that were directed to the CDC in 2011 may be
relevant today. Without the Redevelopment
Agency, the PBID Board currently has a limited
ability to apply for and receive grants.

However, the prioritization of attracting major
players onto the Board (Marriott and The
Magnolia) remains a problem. The PBID Board
is filled with property owners in Downtown
that have deep and productive relationships in
Downtown El Cajon, but much more is needed.

The high-quality residential projects that were
built in the early 2000s at Main and Magnolia by
local developer Daryl Priest, are an excellent
example of what Downtown El Cajon can
become in the future years. Mixed-use
development is the future of any downtown or
town center today.

B. MIXED USE OVERLAY ZONES FROM THE

DOWNTOWN EL CAJON SPECIFIC PLAN
182:

The City of El Cajon has created an entitlement
guideline report, which is extremely helpful in
showing developers what they can build by right
within the Downtown District. Many of the
points in this report are directly relevant to the
potential reinvention of Downtown El Cajon and
will be cited here. The introduction of this
reports states the following:

The Mixed-Use Overlay Zone establishes
zoning districts that are intended to
provide for the overly transition of certain
areas of El Cajon into walkable districts
that accommodate a mixture of retail,
office, and residential uses, while
protecting existing uses. It is further
intended to protect the existing job base,
develop mixed use cores, provide
transportation, pedestrian and visual
connectivity, and develop safe,
well-designed neighborhoods.

Relevant statements from the Specific Plan
include:

1. History: “In the early years of the century, the
invention of the automobile began to
influence Main Street businesses. By the
mid-1920s, the street was declared part of
the State Highway system. By the 1930s, this
required wider, paved streets and sidewalks.

But shopfronts were in the way, forcing the
State to order business owners on Main
Street to either tear the front dozen feet of
their buildings off, or move the entire
building back. Not wanting to do either,
owners were allowed to move ground floor
storefronts back the required distance. But
they left their roofs, and second floors in
some cases, where they were, propping
them up with support columns to form an
arcade. This has become the Districts’ most
distinguishing architectural feature today.”

2. Parking: “Additional parking spaces are not
required for a change of use of an existing
building…New developments…shall be
addressed in the context of the Downtown
urban environment and will be considered in
conjunction with the associated planning
permit application.” (page 1/1)

3. Design Guidelines: “To recapture a fair
portion of discriminating shoppers now
going elsewhere, the District must renovate
and create places for the many people
visiting the County Courthouse, East County
Performing Arts Center, City Hall and local
businesses. Services for shoppers must be
increased and merchandise lines expanded.

More inviting spaces for visitors, employees
and local residents are required so that
people can meet, gather and talk before
strolling or moving on. These standards
provide guidance to enhance the pedestrian
experience and improve the value of building
facades.

These regulations attempt to encourage
entrepreneurial redevelopment of the
Downtown District as an art, entertainment and
specialty retail and service district for the East
County region. (page 21)
C. ECONOMIC DEVELOPMENT STRATEGIC
PLAN:

In a report from the Natelson Dale Group (an
Economic Development Strategic Plan) was
reviewed by NCA and we had two phone
conversations on the status of this report. This
report was completed in June 2022, so its
recommendations and findings are very relevant
to Downtown El Cajon today. Four quotes will
be taken from that report to clarify the status of
Downtown today:

1. Land Use/Placemaking Programs:

Physical Changes to Accommodate
Quality Growth: “Position Downtown El
Cajon as a regional arts/entertainment
center” (page 4)

2. “Facilitation of public-private Downtown
Working Group (to identify specific needs
and actions to elevate Downtown’s
market position). Downtown component
of overall marketing campaign” (page 5)

3. Position Downtown El Cajon as a
Regional Arts/Entertainment Center: (p.
34) Brief Description of Program: This
strategy will build on existing assets (e.g.

Magnolia Performing Arts Center,
Prescott Promenade, etc.) to leverage
and expand Downtown’s attractiveness
as an entertainment destination.

4. City’s Positioning/Roles in
Implementation: “City will begin by
leading the investigation into how this
strategy can relate to and best be
coordinated with other Downtown
strategies, including the potential role of
festivals, special events, housing
development, etc., as the appropriate
support further research into this issue.”
Action Steps / First Year:
a. “Convene “downtown working group”
comprised (at a minimum) of the partners
listed below to identify critical connections
between EDSP (Economic Development
Strategic Plan) and Downtown-specific
business/development opportunities
(including potential for expanding market
rate housing).”
b. “Incorporate Downtown positioning strategy
in City Economic Development marketing
initiative.”
c. Evaluate potential options for providing
density bonuses (in addition to the existing
mixed-use overlay) to incentivize
development of higher end/higher density
housing)
at least to a 1 to 1 ratio of building to lot
size.

Please note also that the building square footage
costs, with the additional 1 million square feet in
building dropped from an annual rate of $0.125
per square foot in the 2001 plan to $0.0818 per
square foot in the 2016 plan, an annual building
assessment reduction of almost 33%.

Service Categories:

Let us now review the special benefit “categories
or bundles of services in each plan and their
percentage of allocation. Since the CDC in 2001
was using the Main Street model or
organizational structure, New City America was
asked to use that model to structure the special
benefit menu of services. Before we list this, we
did a survey of property owners in 2001 to
ascertain their concerns and priorities of the
special benefit district. Taking the results from
that report, it is interesting to see that after 20
years, many of the same problems and issues
remain in Downtown.
2001 Survey of Property Owners by New City
America:

In 2001, a survey was mailed to the property
owners within the Property Business
Improvement District boundaries at that time, as
well as property owners in a proposed expansion
area.

The primary purpose of the survey was to
ascertain the level of support and prioritization
of services desired by property owners in and
around Downtown El Cajon. The preliminary
results of the survey reveal great support for
renewal and continuation of the enhanced
services district commonly known as the
Property Business Improvement District.

To determine the initial level of support, property
owners were categorized by the lot size, building
size and linear frontage of each of their parcels.

These variables were used since they, not the
assessed value of the property, are used as the
basis for the deriving revenues from annual
assessments on real property. In 2001 the survey
responses included:
• 60.9% of the total lot size owners
responded to the survey.
• 49.4% of the total linear frontage
responded.
• 48% of the building’s square foot owners
responded.

The 2001 survey results yielded the following
results:
• 76.6% of the lot size owners supported
continuation of PBID funded enhanced
services.
• 78.1% of the linear frontage owners
supported continuation of the PBID.
• 64.8% of the building size owners
supported continuation.

The survey also asked a number of questions
regarding the current level of services and
re-prioritization of services for the renewed
district. The following is a summary of the
responses received and included in the Blue
Ribbon report:

Length of Ownership – 52% of the respondents
have owned their property for over 10 years, 16%
have owned it for over 25 years.

Type of Ownership – 75% of the respondents
were sole proprietors or family owned.

Image of Downtown – 80% of the respondents
believe that Downtown El Cajon has an image
problem.

Security:
• 65% believe that the area is safe, however
suffers a tremendous image problem as
an unsafe district.
• 68% believe that the existing PBID
security services have made an impact on
reducing criminal activity and restoring
order to Downtown.
• 83% believe the district still has a
homeless or transient problem.
• 55% believe that the homeless problem
has been reduced over the past 3 years.
• 63% support continued PBID funding of
enhanced services for Downtown.

Economic Conditions:
• 60% of the respondents have no
vacancies, however 21% have vacancies
of over 20%.
• Almost 80% charge square footage rents
of less than $1.00 per square foot.
• Over 40% reported that their rental rates
have stayed the same over the past 4
years (This was during a period of a
robust real estate market in other parts of
the County).
• Almost 76% continue to operate their
property as is, 13% plan to sell.

Beautification and Cleanliness:
• 64% of the respondents support PBID
funded expansion of a regular sidewalk
and gutter sweeping service.
• 50% support continuation and expansion
of the Downtown El Cajon street light
pole banner program.
• 70% support the planting of new,
non-invasive trees along the gateway and
main commercial corridors to beautify
the District.
• 93% believe that property owners should
continue to give input to all the major
projects as well as long range planning
decisions in this area.

The top four priorities listed in a multiple-choice
selection were as follows:
1) Public safety, providing of security,
dealing with homelessness.
2) Identification of and attraction of new
businesses.
3) Maintenance of the area includes daily
sidewalk sweeping, tree planting, and
maintenance, etc.
4) Marketing and promotion.

Management District Plan for 2001:

Those categories, costs and percentages using
the 2001 CDC Main Street organizational system
for Downtown El Cajon wer
e as follows:

Action Steps / Second Year:
a. “Pursue additional strategies (based on needs
identified by working group) to focus City
policies and resources on the Downtown.”
b. “Partnership Resources:
• Downtown El Cajon Business Partners;
• San Diego E. County Chamber
• East County EDC
• Live Nation
• Local/regional arts organizations
• Housing/mixed use developers.

Convene Downtown working group and
facilitate 2 – 4 scoping meetings”.

D. TRANSIT DISTRICT SPECIFIC PLAN:

Quotes from the City of El Cajon, Transit District
Specific Plan, Adopted 2018, City Council
Resolution No. 039-18
“The following represents some of the key
themes derived from the outreach process:
(page 9)
• Add more trees and vegetation.
• Add public art, lighting, trash cans,
shade/trees.
• Address challenges with some properties
that might not turn over in the near term,
especially, properties that are at key
nodes in the community.
• Create a walkable retail environment,
create a Main Street or Village experience
with small businesses and increased
active uses.”
E. DOWNTOWN EL CAJON BUSINESS

PARTNERS INC, FINANCIAL STATEMENTS
(JUNE 2022)
As part of its contract with the City, the
Downtown El Cajon Business Partners is
PAGE 9
*Size of the district from 1996 to 2001 increased
by 50% under the New City America plan.

Additionally, 3 benefit zones were created to
ensure that there were proportional costs and
benefits to property owners.
**Not sure where the extra over 1 million square
feet in building square footage came from
between the 2001 plan and the 2016 plan.

Building to Lot size Ratio:

In 2001, the ratio of building square footage to
lot size was 922,934 to 5,939,837 or a ratio of .16
to 1. Normally a Downtown area will have a
minimum of a 1 to 1 ratio of building to lot size.

This ratio shows us that Downtown El Cajon had
to increase its building square footage sixfold to
reach that 1 to 1 ratio – thus there was a lot of
opportunity for new growth. The 2016
Management Plan lists over 1 million additional
building square footage over the 2001 plan. We
are not sure where that data came from. If we
believe the data in the 2016 plan than the ratio of
building to lot size would be:
• 1,978,138 / 5,969,729 equals a ratio .33 to

1. This is twice as high as the ratio we had
for the 2001 plan, but still way below
where the Downtown growth should be,
required to submit an annual report, audits, and
annual financial statements. Reviewing these
documents raised several points of concern.

Please keep in mind that the Management
District Plan, approved by the property owners
through the mail ballot proceeding, is almost like
a “contract” to explain which special benefits will
be funded with the formation of the PBID.

Normally, a 10% deviation is allowable over the
term of the plan per category. The reason why
categories of services are outlined in the
Management District Plan is to inform property
owners how their designated Board or “Owners
Association” will allocate PBID funds during the
term of the District. The Auditor has not looked
at the plan to determine the percentages and
amounts that the property owners voted on in
2016, and rather just reported on what the
Downtown El Cajon Business Partners provided.

On page 5, the fiscal year ending on June 30th,
2022, the Auditor had listed the following
expenditures based upon the previous fiscal
year.

Examples of small business ownership in Downtown today
II. REVIEW OF RECENT REPORTS ON

DOWNTOWN
Prior to launching the analysis of Downtown,
NCA reviewed past reports and studies of the
Downtown. Many included helpful
recommendations for improving Downtown El
Cajon. Those reports, including excerpts from
their findings, include:
a. El Cajon Blue Ribbon Commission
Report (2011)
b. Mixed Use Overlay Zones (From the
Downtown Specific Plan)
c. Economic Development Strategic
Plan (2022)
d. Transit District Specific Plan (2018)
e. Downtown El Cajon Business
Partners Inc, Financial Statements
(June 2022)
A. EL CAJON BLUE RIBBON COMMISSION
REPORT (2011):

In 2011, the City Council commissioned a group
of citizens and business owners to “investigate
the performance of El Cajon Community
Development Corporation (CDC). There are four
recommendations that have relevance today.

Below are the four recommendations from the
Blue Ribbon Commission, along with
commentary from NCA.

1. “It (The CDC running the PBID), is
specifically apparent, that at least 50% of
the PBID dollars collected are used for
overhead and approximately 25% are
spent on car shows and concerts –
recognize that the car shows and
concerts benefit El Cajon and very few of
the people assessed by the PBID. Little
benefit can be identified to stakeholders
assessed outside the Main Street
corridor.” (page 5).

Note: The current PBID Board continues to
prioritize car shows and concerts. The impact
of these events may be beneficial to businesses
directly adjacent to the venue, but we are not
sure the majority of the property owners and
businesses in Downtown derive increased
revenues from these efforts and use of
collected property assessments.

2. “There needs to be developers, builders,
significant business leaders and most
importantly commercial real estate
specialists that can bring together the
information necessary to determine a
realistic vision and know how to
implement it.” (page 15)
Note: This is more relevant now than ever.

Those in the real estate industry, including
brokers and developers, should be prioritized
as members of the PBID Board. These
professionals have a network of developers,
particularly mixed-use developers, that could
bring investment to the El Cajon’s Downtown.

Bringing them onto the board could change
the makeup of the Board and the priorities of
the district.

3. Car Shows and Concerts: “The limited
benefits of the concerts and car shows
specifically benefit the City of El Cajon
and the restaurants on Main Street…We
are recommending that a Downtown
Business Owners Association be formed
in the absence of the PBID…..Presently
the CDC spends at least $150,000 of the
PBID or approximately one fourth of the
PBID budget on these two items.” (page
18).

Note: It appears that car shows and summer
concerts, though well attended, continue to be
the priority events for the current Board of
Directors. In the meantime, some of the real
traffic generators for Downtown, namely
events at The Magnolia, do not have a
representative on the PBID Board and
incorporating their programming into a full
evening in Downtown appears not to be a
priority. Cathy Zeman, CFO, and member of the
current PBID Board, summarized the impacts of
the car show and concerts. Based on her
estimates, the car shows generate
approximately 2,000 weekly and upwards of
5,000 visitors on the four to five times the
street is closed for the car show and as many as
10,000 for the annual Trunk or Treat car show.

Concerts attract between 1,750 and 2,000
visitors most weeks, with up to 4,000 for the
more popular performers.

While these numbers are healthy, it is unclear
how much these ongoing annual events benefit
business and property owners outside of the
concert and show venues in Downtown El
Cajon, something that was mentioned in the
Blue Ribbon report.

4. Summary of Evaluation based upon Key
Performance Indicators: The report listed
6 items as key performance indicators
(KPI), ratings to be from high to low.

Key Performance Rating
CDC Organizational
effectiveness Low
PBID Performance Low
Marketing & Programs
Medium
Grant Project, Benefits to
the City Low
Redevelopment Activities
Performance Low
Economic Justification (Audit,
Management of PBID) Low
Note: It appears that some of the comments
that were directed to the CDC in 2011 may be
relevant today. Without the Redevelopment
Agency, the PBID Board currently has a limited
ability to apply for and receive grants.

However, the prioritization of attracting major
players onto the Board (Marriott and The
Magnolia) remains a problem. The PBID Board
is filled with property owners in Downtown
that have deep and productive relationships in
Downtown El Cajon, but much more is needed.

The high-quality residential projects that were
built in the early 2000s at Main and Magnolia by
local developer Daryl Priest, are an excellent
example of what Downtown El Cajon can
become in the future years. Mixed-use
development is the future of any downtown or
town center today.

B. MIXED USE OVERLAY ZONES FROM THE

DOWNTOWN EL CAJON SPECIFIC PLAN
182:

The City of El Cajon has created an entitlement
guideline report, which is extremely helpful in
showing developers what they can build by right
within the Downtown District. Many of the
points in this report are directly relevant to the
potential reinvention of Downtown El Cajon and
will be cited here. The introduction of this
reports states the following:

The Mixed-Use Overlay Zone establishes
zoning districts that are intended to
provide for the overly transition of certain
areas of El Cajon into walkable districts
that accommodate a mixture of retail,
office, and residential uses, while
protecting existing uses. It is further
intended to protect the existing job base,
develop mixed use cores, provide
transportation, pedestrian and visual
connectivity, and develop safe,
well-designed neighborhoods.

Relevant statements from the Specific Plan
include:

1. History: “In the early years of the century, the
invention of the automobile began to
influence Main Street businesses. By the
mid-1920s, the street was declared part of
the State Highway system. By the 1930s, this
required wider, paved streets and sidewalks.

But shopfronts were in the way, forcing the
State to order business owners on Main
Street to either tear the front dozen feet of
their buildings off, or move the entire
building back. Not wanting to do either,
owners were allowed to move ground floor
storefronts back the required distance. But
they left their roofs, and second floors in
some cases, where they were, propping
them up with support columns to form an
arcade. This has become the Districts’ most
distinguishing architectural feature today.”

2. Parking: “Additional parking spaces are not
required for a change of use of an existing
building…New developments…shall be
addressed in the context of the Downtown
urban environment and will be considered in
conjunction with the associated planning
permit application.” (page 1/1)

3. Design Guidelines: “To recapture a fair
portion of discriminating shoppers now
going elsewhere, the District must renovate
and create places for the many people
visiting the County Courthouse, East County
Performing Arts Center, City Hall and local
businesses. Services for shoppers must be
increased and merchandise lines expanded.

More inviting spaces for visitors, employees
and local residents are required so that
people can meet, gather and talk before
strolling or moving on. These standards
provide guidance to enhance the pedestrian
experience and improve the value of building
facades.

These regulations attempt to encourage
entrepreneurial redevelopment of the
Downtown District as an art, entertainment and
specialty retail and service district for the East
County region. (page 21)
C. ECONOMIC DEVELOPMENT STRATEGIC
PLAN:

In a report from the Natelson Dale Group (an
Economic Development Strategic Plan) was
reviewed by NCA and we had two phone
conversations on the status of this report. This
report was completed in June 2022, so its
recommendations and findings are very relevant
to Downtown El Cajon today. Four quotes will
be taken from that report to clarify the status of
Downtown today:

1. Land Use/Placemaking Programs:

Physical Changes to Accommodate
Quality Growth: “Position Downtown El
Cajon as a regional arts/entertainment
center” (page 4)

2. “Facilitation of public-private Downtown
Working Group (to identify specific needs
and actions to elevate Downtown’s
market position). Downtown component
of overall marketing campaign” (page 5)

3. Position Downtown El Cajon as a
Regional Arts/Entertainment Center: (p.
34) Brief Description of Program: This
strategy will build on existing assets (e.g.

Magnolia Performing Arts Center,
Prescott Promenade, etc.) to leverage
and expand Downtown’s attractiveness
as an entertainment destination.

4. City’s Positioning/Roles in
Implementation: “City will begin by
leading the investigation into how this
strategy can relate to and best be
coordinated with other Downtown
strategies, including the potential role of
festivals, special events, housing
development, etc., as the appropriate
support further research into this issue.”
Action Steps / First Year:
a. “Convene “downtown working group”
comprised (at a minimum) of the partners
listed below to identify critical connections
between EDSP (Economic Development
Strategic Plan) and Downtown-specific
business/development opportunities
(including potential for expanding market
rate housing).”
b. “Incorporate Downtown positioning strategy
in City Economic Development marketing
initiative.”
c. Evaluate potential options for providing
density bonuses (in addition to the existing
mixed-use overlay) to incentivize
development of higher end/higher density
housing)
We believe there is a problem with the amount
expended compared to how the 2016
Management District Plan allocates
assessments. The 2016 Management District
Plan allocation of special benefit categories and
the Engineer’s report expenditures are not being
followed. While it was common during
COVID-19 to have a very large carry forward due
to the lack of events and public gatherings,
economic enhancements (marketing and
promotions) were almost 80% over what the
plan called for in 2022. Meanwhile
environmental enhancements (clean and safe,
homeless intervention, etc.) were 30% below
what should have been allocated in 2022. We
are not sure if this was an oversight or if
management was unaware that they were not
following the 2016 Management District Plan.

One of the key complaints about Downtown El
Cajon, heard anecdotally, is the presence of
homeless individuals and lack of maintenance.

The Environmental Enhancement category
could help address this issue. As is similar in
Downtown San Diego, the presence of
unhoused individuals lying on the sidewalks or
loitering around businesses, is one of the
greatest visual disincentives to attract new
businesses. This is not an issue of lack of funds,
because only $545,666 was allocated for the
fiscal year, leaving a balance of around $180,000
as a carry forward for FY23. That amount was
based on accounts receivable ($41,131.00) and
unexpended revenues from FY22, primarily from
assessment district funds generated by the
property assessments of the PBID. The total cash
equivalents and accounts receivables totaled
$726,124 for FY22. It is clear that lack of funds is
not one of the key problems for the Downtown
El Cajon Business Partners.

PAGE 10
at least to a 1 to 1 ratio of building to lot
size.

Please note also that the building square footage
costs, with the additional 1 million square feet in
building dropped from an annual rate of $0.125
per square foot in the 2001 plan to $0.0818 per
square foot in the 2016 plan, an annual building
assessment reduction of almost 33%.

Service Categories:

Let us now review the special benefit “categories
or bundles of services in each plan and their
percentage of allocation. Since the CDC in 2001
was using the Main Street model or
organizational structure, New City America was
asked to use that model to structure the special
benefit menu of services. Before we list this, we
did a survey of property owners in 2001 to
ascertain their concerns and priorities of the
special benefit district. Taking the results from
that report, it is interesting to see that after 20
years, many of the same problems and issues
remain in Downtown.
2001 Survey of Property Owners by New City
America:

In 2001, a survey was mailed to the property
owners within the Property Business
Improvement District boundaries at that time, as
well as property owners in a proposed expansion
area.

The primary purpose of the survey was to
ascertain the level of support and prioritization
of services desired by property owners in and
around Downtown El Cajon. The preliminary
results of the survey reveal great support for
renewal and continuation of the enhanced
services district commonly known as the
Property Business Improvement District.

To determine the initial level of support, property
owners were categorized by the lot size, building
size and linear frontage of each of their parcels.

These variables were used since they, not the
assessed value of the property, are used as the
basis for the deriving revenues from annual
assessments on real property. In 2001 the survey
responses included:
• 60.9% of the total lot size owners
responded to the survey.
• 49.4% of the total linear frontage
responded.
• 48% of the building’s square foot owners
responded.

The 2001 survey results yielded the following
results:
• 76.6% of the lot size owners supported
continuation of PBID funded enhanced
services.
• 78.1% of the linear frontage owners
supported continuation of the PBID.
• 64.8% of the building size owners
supported continuation.

The survey also asked a number of questions
regarding the current level of services and
re-prioritization of services for the renewed
district. The following is a summary of the
responses received and included in the Blue
Ribbon report:

Length of Ownership – 52% of the respondents
have owned their property for over 10 years, 16%
have owned it for over 25 years.

Type of Ownership – 75% of the respondents
were sole proprietors or family owned.

Image of Downtown – 80% of the respondents
believe that Downtown El Cajon has an image
problem.

Security:
• 65% believe that the area is safe, however
suffers a tremendous image problem as
an unsafe district.
• 68% believe that the existing PBID
security services have made an impact on
reducing criminal activity and restoring
order to Downtown.
• 83% believe the district still has a
homeless or transient problem.
• 55% believe that the homeless problem
has been reduced over the past 3 years.
• 63% support continued PBID funding of
enhanced services for Downtown.

Economic Conditions:
• 60% of the respondents have no
vacancies, however 21% have vacancies
of over 20%.
• Almost 80% charge square footage rents
of less than $1.00 per square foot.
• Over 40% reported that their rental rates
have stayed the same over the past 4
years (This was during a period of a
robust real estate market in other parts of
the County).
• Almost 76% continue to operate their
property as is, 13% plan to sell.

Beautification and Cleanliness:
• 64% of the respondents support PBID
funded expansion of a regular sidewalk
and gutter sweeping service.
• 50% support continuation and expansion
of the Downtown El Cajon street light
pole banner program.
• 70% support the planting of new,
non-invasive trees along the gateway and
main commercial corridors to beautify
the District.
• 93% believe that property owners should
continue to give input to all the major
projects as well as long range planning
decisions in this area.

The top four priorities listed in a multiple-choice
selection were as follows:
1) Public safety, providing of security,
dealing with homelessness.
2) Identification of and attraction of new
businesses.
3) Maintenance of the area includes daily
sidewalk sweeping, tree planting, and
maintenance, etc.
4) Marketing and promotion.

Management District Plan for 2001:

Those categories, costs and percentages using
the 2001 CDC Main Street organizational system
for Downtown El Cajon were as follows:

Action Steps / Second Year:
a. “Pursue additional strategies (based on needs
identified by working group) to focus City
policies and resources on the Downtown.”
b. “Partnership Resources:
• Downtown El Cajon Business Partners;
• San Diego E. County Chamber
• East County EDC
• Live Nation
• Local/regional arts organizations
• Housing/mixed use developers.

Convene Downtown working group and
facilitate 2 – 4 scoping meetings”.

D. TRANSIT DISTRICT SPECIFIC PLAN:

Quotes from the City of El Cajon, Transit District
Specific Plan, Adopted 2018, City Council
Resolution No. 039-18
“The following represents some of the key
themes derived from the outreach process:
(page 9)
• Add more trees and vegetation.
• Add public art, lighting, trash cans,
shade/trees.
• Address challenges with some properties
that might not turn over in the near term,
especially, properties that are at key
nodes in the community.
• Create a walkable retail environment,
create a Main Street or Village experience
with small businesses and increased
active uses.”
E. DOWNTOWN EL CAJON BUSINESS

PARTNERS INC, FINANCIAL STATEMENTS
(JUNE 2022)
As part of its contract with the City, the
Downtown El Cajon Business Partners is
Category of Expense
(Per the 2016 Management
District Plan)
Economic Enhancements
Environmental Enhancements
Management Services
Total for FY 21-22
Amount Expended
(FY 21-22)
$271,723 - 50%
$175,032 - 32%
$98,911 - 18%
$545,666
Amount Allocation
(Per the 2016 Management
District Plan)
$150,000 - 26,79%
$250,000 - 44.64%
$150,000 - 26.79%
$560,000
*Size of the district from 1996 to 2001 increased
by 50% under the New City America plan.

Additionally, 3 benefit zones were created to
ensure that there were proportional costs and
benefits to property owners.
**Not sure where the extra over 1 million square
feet in building square footage came from
between the 2001 plan and the 2016 plan.

Building to Lot size Ratio:

In 2001, the ratio of building square footage to
lot size was 922,934 to 5,939,837 or a ratio of .16
to 1. Normally a Downtown area will have a
minimum of a 1 to 1 ratio of building to lot size.

This ratio shows us that Downtown El Cajon had
to increase its building square footage sixfold to
reach that 1 to 1 ratio – thus there was a lot of
opportunity for new growth. The 2016
Management Plan lists over 1 million additional
building square footage over the 2001 plan. We
are not sure where that data came from. If we
believe the data in the 2016 plan than the ratio of
building to lot size would be:
• 1,978,138 / 5,969,729 equals a ratio .33 to

1. This is twice as high as the ratio we had
for the 2001 plan, but still way below
where the Downtown growth should be,
required to submit an annual report, audits, and
annual financial statements. Reviewing these
documents raised several points of concern.

Please keep in mind that the Management
District Plan, approved by the property owners
through the mail ballot proceeding, is almost like
a “contract” to explain which special benefits will
be funded with the formation of the PBID.

Normally, a 10% deviation is allowable over the
term of the plan per category. The reason why
categories of services are outlined in the
Management District Plan is to inform property
owners how their designated Board or “Owners
Association” will allocate PBID funds during the
term of the District. The Auditor has not looked
at the plan to determine the percentages and
amounts that the property owners voted on in
2016, and rather just reported on what the
Downtown El Cajon Business Partners provided.

On page 5, the fiscal year ending on June 30th,
2022, the Auditor had listed the following
expenditures based upon the previous fiscal
year.

Arts and culture businesses in Downtown today
II. REVIEW OF RECENT REPORTS ON

DOWNTOWN
Prior to launching the analysis of Downtown,
NCA reviewed past reports and studies of the
Downtown. Many included helpful
recommendations for improving Downtown El
Cajon. Those reports, including excerpts from
their findings, include:
a. El Cajon Blue Ribbon Commission
Report (2011)
b. Mixed Use Overlay Zones (From the
Downtown Specific Plan)
c. Economic Development Strategic
Plan (2022)
d. Transit District Specific Plan (2018)
e. Downtown El Cajon Business
Partners Inc, Financial Statements
(June 2022)
A. EL CAJON BLUE RIBBON COMMISSION
REPORT (2011):

In 2011, the City Council commissioned a group
of citizens and business owners to “investigate
the performance of El Cajon Community
Development Corporation (CDC). There are four
recommendations that have relevance today.

Below are the four recommendations from the
Blue Ribbon Commission, along with
commentary from NCA.

1. “It (The CDC running the PBID), is
specifically apparent, that at least 50% of
the PBID dollars collected are used for
overhead and approximately 25% are
spent on car shows and concerts –
recognize that the car shows and
concerts benefit El Cajon and very few of
the people assessed by the PBID. Little
benefit can be identified to stakeholders
assessed outside the Main Street
corridor.” (page 5).

Note: The current PBID Board continues to
prioritize car shows and concerts. The impact
of these events may be beneficial to businesses
directly adjacent to the venue, but we are not
sure the majority of the property owners and
businesses in Downtown derive increased
revenues from these efforts and use of
collected property assessments.

2. “There needs to be developers, builders,
significant business leaders and most
importantly commercial real estate
specialists that can bring together the
information necessary to determine a
realistic vision and know how to
implement it.” (page 15)
Note: This is more relevant now than ever.

Those in the real estate industry, including
brokers and developers, should be prioritized
as members of the PBID Board. These
professionals have a network of developers,
particularly mixed-use developers, that could
bring investment to the El Cajon’s Downtown.

Bringing them onto the board could change
the makeup of the Board and the priorities of
the district.

3. Car Shows and Concerts: “The limited
benefits of the concerts and car shows
specifically benefit the City of El Cajon
and the restaurants on Main Street…We
are recommending that a Downtown
Business Owners Association be formed
in the absence of the PBID…..Presently
the CDC spends at least $150,000 of the
PBID or approximately one fourth of the
PBID budget on these two items.” (page
18).

Note: It appears that car shows and summer
concerts, though well attended, continue to be
the priority events for the current Board of
Directors. In the meantime, some of the real
traffic generators for Downtown, namely
events at The Magnolia, do not have a
representative on the PBID Board and
incorporating their programming into a full
evening in Downtown appears not to be a
priority. Cathy Zeman, CFO, and member of the
current PBID Board, summarized the impacts of
the car show and concerts. Based on her
estimates, the car shows generate
approximately 2,000 weekly and upwards of
5,000 visitors on the four to five times the
street is closed for the car show and as many as
10,000 for the annual Trunk or Treat car show.

Concerts attract between 1,750 and 2,000
visitors most weeks, with up to 4,000 for the
more popular performers.

While these numbers are healthy, it is unclear
how much these ongoing annual events benefit
business and property owners outside of the
concert and show venues in Downtown El
Cajon, something that was mentioned in the
Blue Ribbon report.

4. Summary of Evaluation based upon Key
Performance Indicators: The report listed
6 items as key performance indicators
(KPI), ratings to be from high to low.

Key Performance Rating
CDC Organizational
effectiveness Low
PBID Performance Low
Marketing & Programs
Medium
Grant Project, Benefits to
the City Low
Redevelopment Activities
Performance Low
Economic Justification (Audit,
Management of PBID) Low
Note: It appears that some of the comments
that were directed to the CDC in 2011 may be
relevant today. Without the Redevelopment
Agency, the PBID Board currently has a limited
ability to apply for and receive grants.

However, the prioritization of attracting major
players onto the Board (Marriott and The
Magnolia) remains a problem. The PBID Board
is filled with property owners in Downtown
that have deep and productive relationships in
Downtown El Cajon, but much more is needed.

The high-quality residential projects that were
built in the early 2000s at Main and Magnolia by
local developer Daryl Priest, are an excellent
example of what Downtown El Cajon can
become in the future years. Mixed-use
development is the future of any downtown or
town center today.

B. MIXED USE OVERLAY ZONES FROM THE

DOWNTOWN EL CAJON SPECIFIC PLAN
182:

The City of El Cajon has created an entitlement
guideline report, which is extremely helpful in
showing developers what they can build by right
within the Downtown District. Many of the
points in this report are directly relevant to the
potential reinvention of Downtown El Cajon and
will be cited here. The introduction of this
reports states the following:

The Mixed-Use Overlay Zone establishes
zoning districts that are intended to
provide for the overly transition of certain
areas of El Cajon into walkable districts
that accommodate a mixture of retail,
office, and residential uses, while
protecting existing uses. It is further
intended to protect the existing job base,
develop mixed use cores, provide
transportation, pedestrian and visual
connectivity, and develop safe,
well-designed neighborhoods.

Relevant statements from the Specific Plan
include:

1. History: “In the early years of the century, the
invention of the automobile began to
influence Main Street businesses. By the
mid-1920s, the street was declared part of
the State Highway system. By the 1930s, this
required wider, paved streets and sidewalks.

But shopfronts were in the way, forcing the
State to order business owners on Main
Street to either tear the front dozen feet of
their buildings off, or move the entire
building back. Not wanting to do either,
owners were allowed to move ground floor
storefronts back the required distance. But
they left their roofs, and second floors in
some cases, where they were, propping
them up with support columns to form an
arcade. This has become the Districts’ most
distinguishing architectural feature today.”

2. Parking: “Additional parking spaces are not
required for a change of use of an existing
building…New developments…shall be
addressed in the context of the Downtown
urban environment and will be considered in
conjunction with the associated planning
permit application.” (page 1/1)

3. Design Guidelines: “To recapture a fair
portion of discriminating shoppers now
going elsewhere, the District must renovate
and create places for the many people
visiting the County Courthouse, East County
Performing Arts Center, City Hall and local
businesses. Services for shoppers must be
increased and merchandise lines expanded.

More inviting spaces for visitors, employees
and local residents are required so that
people can meet, gather and talk before
strolling or moving on. These standards
provide guidance to enhance the pedestrian
experience and improve the value of building
facades.

These regulations attempt to encourage
entrepreneurial redevelopment of the
Downtown District as an art, entertainment and
specialty retail and service district for the East
County region. (page 21)
C. ECONOMIC DEVELOPMENT STRATEGIC
PLAN:

In a report from the Natelson Dale Group (an
Economic Development Strategic Plan) was
reviewed by NCA and we had two phone
conversations on the status of this report. This
report was completed in June 2022, so its
recommendations and findings are very relevant
to Downtown El Cajon today. Four quotes will
be taken from that report to clarify the status of
Downtown today:

1. Land Use/Placemaking Programs:

Physical Changes to Accommodate
Quality Growth: “Position Downtown El
Cajon as a regional arts/entertainment
center” (page 4)

2. “Facilitation of public-private Downtown
Working Group (to identify specific needs
and actions to elevate Downtown’s
market position). Downtown component
of overall marketing campaign” (page 5)

3. Position Downtown El Cajon as a
Regional Arts/Entertainment Center: (p.
34) Brief Description of Program: This
strategy will build on existing assets (e.g.

Magnolia Performing Arts Center,
Prescott Promenade, etc.) to leverage
and expand Downtown’s attractiveness
as an entertainment destination.

4. City’s Positioning/Roles in
Implementation: “City will begin by
leading the investigation into how this
strategy can relate to and best be
coordinated with other Downtown
strategies, including the potential role of
festivals, special events, housing
development, etc., as the appropriate
support further research into this issue.”
Action Steps / First Year:
a. “Convene “downtown working group”
comprised (at a minimum) of the partners
listed below to identify critical connections
between EDSP (Economic Development
Strategic Plan) and Downtown-specific
business/development opportunities
(including potential for expanding market
rate housing).”
b. “Incorporate Downtown positioning strategy
in City Economic Development marketing
initiative.”
c. Evaluate potential options for providing
density bonuses (in addition to the existing
mixed-use overlay) to incentivize
development of higher end/higher density
housing)
III. MANAGEMENT DISTRICT PLAN REVIEW
In our experience, the Management District Plan
as well as the Engineer’s reports, are the guiding
documents guiding the Owners
Association/District Management Corporation,
in the day-to-day implementation of the special
benefits district (PBID). The Management District
Plan and Engineer’s report are freely distributed
to the property owners based during the petition
and balloting process so they can anticipate
what the stated priority special benefit services
will be, as well as their costs.

We compared two Management District Plans
for Downtown El Cajon, one that New City
America wrote in 2001 (its first renewal) and then
the current one, which is from 2016, due to
expire in late 2025. We realize that the CDC
apparently did not follow the 2001 Management
District Plan, which led to the “Blue Ribbon
Commission” report done by Scott Barnett
Consulting, in determining that the CDC should
no longer be the Owners Association for the
PBID. It appears that the PBID was renewed in
2011 and again in 2016. The author of the 2016
Management District Plan was Kristen Lowell,
Inc.

In the 2001 plan, we convinced the group to
expand the Downtown PBID to include heading
westward on Magnolia to the Trolley Stop and up
to the freeway on Main Street.

Please see what the PBID law, Section 36622 of
the California Streets and Highway Code
requires in the Management District Plan:
36622. The management district plan shall
contain all of the following:
(a) A map of the district in sufficient detail to
locate each parcel of property and, if
businesses are to be assessed, each business
within the district.
(b) The name of the proposed district.
(c) A description of the boundaries of the
district, including the boundaries of any
benefit zones, proposed for establishment or
extension in a manner sufficient to identify
the affected lands and businesses included.

Under no circumstances shall the boundaries
of a proposed district overlap with the
boundaries of another existing district
created pursuant to this part. Nothing in this
part prohibits the boundaries of a district
created pursuant to this part to overlap with
other assessment districts established
pursuant to other provisions of law including,
but not limited to, the Parking and Business
Improvement Area Law of 1989.
(d) The improvements and activities
proposed for each year of operation of the
district and the maximum cost thereof.
(e) The total annual amount proposed to be
expended for improvements, maintenance
and operations, and debt service in each year
of operation of the district.
(f) The proposed source or sources of
financing including the proposed method
and basis of levying the assessment in
sufficient detail to allow each property or
business owner to calculate the amount of
the assessment to be levied against his or her
property or business. The plan shall also
state whether bonds will be issued to finance
improvements.

The key point in quoting this section of the PBID
law is to review the proposed improvements and
activities for each year of operation of the district
and the maximum cost thereof. Sometime those
improvements and activities are designated by
individual line items, sometimes they are includ-
ed in “categories of special benefit services,”
which represents categories of special benefit
services, but allows the Owners Association to
determine which sub-group of the categories of
services to be prioritized from year to year. For
example, once a web site is created, it does not
have to be created again, rather just managed.

So after the web site is done, those funds allo-
cated to the website can be reallocated in the
category of services outlined in the Management
District Plan.

This gives the Owners Association, who knows
the district more than other stakeholders, the
right to prioritize one service or another based
upon what is going on in the District from year to
year.

PAGE 11
What follows is an example of special benefit
categories that have sub-groups allowing such
flexibility. However, the percentages that are
tied to each category of services should be
maintained over the life of the District, to stay
true to what the benefitting property owners
voted on. New City America typically uses
services based on a given business district’s
needs that are defensive in nature or offensive in
nature. Please see a sample below:

CIVIL SIDEWALKS (DEFENSIVE)
Examples of this category of special benefit
services and costs may include, but are not limit-
ed to:
• Maintenance of beautification in the
district including regular sidewalk sweep-
ing, sidewalk pressure washing, etc.
• Maintenance of existing and new public
spaces
• Enhanced trash receptacle
• Landscaping, planting and maintenance
• Introduction of special benefit lighting for
public rights of way
• Event set up and clean up
• Maintenance and order in public right of
way

DISTRICT IDENTITY AND PLACEMAKING /

SOCIAL MEDIA (OFFENSIVE)
Examples of this category of special benefit
services and costs may include, but are not limit-
ed to:
• Website development and updating
• Social media, public relations firm
• District wide ornamental lighting
• Holiday and seasonal decorations
• Events such as the “Taste of...”
• Branding of the District of the PBID prop-
erties so a positive image is promoted to
the public including the development of
a new logo
• Banner programs
• Public art displays
• Public space design and improvements
• Beautification programs

ADMINISTRATION/PROGRAM MANAGEMENT
Examples of this category of special benefit
services and costs may include, but is not limited
to:
• Staff and administrative costs contracted
or in-house
• Directors and Officers and General Liabil-
ity Insurance
• Office related expenses.
• Rent
• Financial reporting and accounting
• Legal work

CONTINGENCY/CITY AND COUNTY FEES/RE-
SERVE
Examples of this category of special benefit
services and costs include, but is not limited to:
• Delinquencies, City/County fees,
reserves, capital project improvements
In addition, the formula of assessments to gen-
erate the annual PBID budget normally consists
of the following factors:

METHOD OF FINANCING
The financing of the PBID is based on the levy of
special assessments on real properties that
receive special benefits from the improvements
and activities, based on which Benefit Zone they
are located within. There may be five factors
used in the determination of proportional costs
to the parcels in the District. These five factors
are:
• Linear frontage, on all sides of the parcel
(excluding alleys)
• Lot size or the footprint of the parcel
• Building square footage
• Current and future residential condo-
miniums that may be constructed within
the District
• Location within one of the geographic
benefit zones of the district
The key factor in this assessment methodology is
“building square footage” since lot size and linear
frontage never change. Including a healthy
building assessment factor, anywhere from .12 to
.22 cents per square foot of building per year will
ensure that any new development will mitigate
the impact of new residents or office workers
filling that new building space.

Please note the change in the 2001 Management
Plan assessment methodology vs. the 2016
Management District plan. Using a combination
at least to a 1 to 1 ratio of building to lot
size.

Please note also that the building square footage
costs, with the additional 1 million square feet in
building dropped from an annual rate of $0.125
per square foot in the 2001 plan to $0.0818 per
square foot in the 2016 plan, an annual building
assessment reduction of almost 33%.

Service Categories:

Let us now review the special benefit “categories
or bundles of services in each plan and their
percentage of allocation. Since the CDC in 2001
was using the Main Street model or
organizational structure, New City America was
asked to use that model to structure the special
benefit menu of services. Before we list this, we
did a survey of property owners in 2001 to
ascertain their concerns and priorities of the
special benefit district. Taking the results from
that report, it is interesting to see that after 20
years, many of the same problems and issues
remain in Downtown.
2001 Survey of Property Owners by New City
America:

In 2001, a survey was mailed to the property
owners within the Property Business
Improvement District boundaries at that time, as
well as property owners in a proposed expansion
area.

The primary purpose of the survey was to
ascertain the level of support and prioritization
of services desired by property owners in and
around Downtown El Cajon. The preliminary
results of the survey reveal great support for
renewal and continuation of the enhanced
services district commonly known as the
Property Business Improvement District.

To determine the initial level of support, property
owners were categorized by the lot size, building
size and linear frontage of each of their parcels.

These variables were used since they, not the
assessed value of the property, are used as the
basis for the deriving revenues from annual
assessments on real property. In 2001 the survey
responses included:
• 60.9% of the total lot size owners
responded to the survey.
• 49.4% of the total linear frontage
responded.
• 48% of the building’s square foot owners
responded.

The 2001 survey results yielded the following
results:
• 76.6% of the lot size owners supported
continuation of PBID funded enhanced
services.
• 78.1% of the linear frontage owners
supported continuation of the PBID.
• 64.8% of the building size owners
supported continuation.

The survey also asked a number of questions
regarding the current level of services and
re-prioritization of services for the renewed
district. The following is a summary of the
responses received and included in the Blue
Ribbon report:

Length of Ownership – 52% of the respondents
have owned their property for over 10 years, 16%
have owned it for over 25 years.

Type of Ownership – 75% of the respondents
were sole proprietors or family owned.

Image of Downtown – 80% of the respondents
believe that Downtown El Cajon has an image
problem.

Security:
• 65% believe that the area is safe, however
suffers a tremendous image problem as
an unsafe district.
• 68% believe that the existing PBID
security services have made an impact on
reducing criminal activity and restoring
order to Downtown.
• 83% believe the district still has a
homeless or transient problem.
• 55% believe that the homeless problem
has been reduced over the past 3 years.
• 63% support continued PBID funding of
enhanced services for Downtown.

Economic Conditions:
• 60% of the respondents have no
vacancies, however 21% have vacancies
of over 20%.
• Almost 80% charge square footage rents
of less than $1.00 per square foot.
• Over 40% reported that their rental rates
have stayed the same over the past 4
years (This was during a period of a
robust real estate market in other parts of
the County).
• Almost 76% continue to operate their
property as is, 13% plan to sell.

Beautification and Cleanliness:
• 64% of the respondents support PBID
funded expansion of a regular sidewalk
and gutter sweeping service.
• 50% support continuation and expansion
of the Downtown El Cajon street light
pole banner program.
• 70% support the planting of new,
non-invasive trees along the gateway and
main commercial corridors to beautify
the District.
• 93% believe that property owners should
continue to give input to all the major
projects as well as long range planning
decisions in this area.

The top four priorities listed in a multiple-choice
selection were as follows:
1) Public safety, providing of security,
dealing with homelessness.
2) Identification of and attraction of new
businesses.
3) Maintenance of the area includes daily
sidewalk sweeping, tree planting, and
maintenance, etc.
4) Marketing and promotion.

Management District Plan for 2001:

Those categories, costs and percentages using
the 2001 CDC Main Street organizational system
for Downtown El Cajon were as follows:
of linear frontage and lot size will never capture
the dynamic growth of the area due to the low
rate and will ensure that the District will not have
enough revenue to keep up with its growth. In
this company’s opinion, those consultants that
don’t advise their clients to use a robust building
square footage assessment as a key cost factor
are providing a disservice to their clients.

Action Steps / Second Year:
a. “Pursue additional strategies (based on needs
identified by working group) to focus City
policies and resources on the Downtown.”
b. “Partnership Resources:
• Downtown El Cajon Business Partners;
• San Diego E. County Chamber
• East County EDC
• Live Nation
• Local/regional arts organizations
• Housing/mixed use developers.

Convene Downtown working group and
facilitate 2 – 4 scoping meetings”.

D. TRANSIT DISTRICT SPECIFIC PLAN:

Quotes from the City of El Cajon, Transit District
Specific Plan, Adopted 2018, City Council
Resolution No. 039-18
“The following represents some of the key
themes derived from the outreach process:
(page 9)
• Add more trees and vegetation.
• Add public art, lighting, trash cans,
shade/trees.
• Address challenges with some properties
that might not turn over in the near term,
especially, properties that are at key
nodes in the community.
• Create a walkable retail environment,
create a Main Street or Village experience
with small businesses and increased
active uses.”
E. DOWNTOWN EL CAJON BUSINESS

PARTNERS INC, FINANCIAL STATEMENTS
(JUNE 2022)
As part of its contract with the City, the
Downtown El Cajon Business Partners is
*Size of the district from 1996 to 2001 increased
by 50% under the New City America plan.

Additionally, 3 benefit zones were created to
ensure that there were proportional costs and
benefits to property owners.
**Not sure where the extra over 1 million square
feet in building square footage came from
between the 2001 plan and the 2016 plan.

Building to Lot size Ratio:

In 2001, the ratio of building square footage to
lot size was 922,934 to 5,939,837 or a ratio of .16
to 1. Normally a Downtown area will have a
minimum of a 1 to 1 ratio of building to lot size.

This ratio shows us that Downtown El Cajon had
to increase its building square footage sixfold to
reach that 1 to 1 ratio – thus there was a lot of
opportunity for new growth. The 2016
Management Plan lists over 1 million additional
building square footage over the 2001 plan. We
are not sure where that data came from. If we
believe the data in the 2016 plan than the ratio of
building to lot size would be:
• 1,978,138 / 5,969,729 equals a ratio .33 to

1. This is twice as high as the ratio we had
for the 2001 plan, but still way below
where the Downtown growth should be,
required to submit an annual report, audits, and
annual financial statements. Reviewing these
documents raised several points of concern.

Please keep in mind that the Management
District Plan, approved by the property owners
through the mail ballot proceeding, is almost like
a “contract” to explain which special benefits will
be funded with the formation of the PBID.

Normally, a 10% deviation is allowable over the
term of the plan per category. The reason why
categories of services are outlined in the
Management District Plan is to inform property
owners how their designated Board or “Owners
Association” will allocate PBID funds during the
term of the District. The Auditor has not looked
at the plan to determine the percentages and
amounts that the property owners voted on in
2016, and rather just reported on what the
Downtown El Cajon Business Partners provided.

On page 5, the fiscal year ending on June 30th,
2022, the Auditor had listed the following
expenditures based upon the previous fiscal
year.

II. REVIEW OF RECENT REPORTS ON

DOWNTOWN
Prior to launching the analysis of Downtown,
NCA reviewed past reports and studies of the
Downtown. Many included helpful
recommendations for improving Downtown El
Cajon. Those reports, including excerpts from
their findings, include:
a. El Cajon Blue Ribbon Commission
Report (2011)
b. Mixed Use Overlay Zones (From the
Downtown Specific Plan)
c. Economic Development Strategic
Plan (2022)
d. Transit District Specific Plan (2018)
e. Downtown El Cajon Business
Partners Inc, Financial Statements
(June 2022)
A. EL CAJON BLUE RIBBON COMMISSION
REPORT (2011):

In 2011, the City Council commissioned a group
of citizens and business owners to “investigate
the performance of El Cajon Community
Development Corporation (CDC). There are four
recommendations that have relevance today.

Below are the four recommendations from the
Blue Ribbon Commission, along with
commentary from NCA.

1. “It (The CDC running the PBID), is
specifically apparent, that at least 50% of
the PBID dollars collected are used for
overhead and approximately 25% are
spent on car shows and concerts –
recognize that the car shows and
concerts benefit El Cajon and very few of
the people assessed by the PBID. Little
benefit can be identified to stakeholders
assessed outside the Main Street
corridor.” (page 5).

Note: The current PBID Board continues to
prioritize car shows and concerts. The impact
of these events may be beneficial to businesses
directly adjacent to the venue, but we are not
sure the majority of the property owners and
businesses in Downtown derive increased
revenues from these efforts and use of
collected property assessments.

2. “There needs to be developers, builders,
significant business leaders and most
importantly commercial real estate
specialists that can bring together the
information necessary to determine a
realistic vision and know how to
implement it.” (page 15)
Note: This is more relevant now than ever.

Those in the real estate industry, including
brokers and developers, should be prioritized
as members of the PBID Board. These
professionals have a network of developers,
particularly mixed-use developers, that could
bring investment to the El Cajon’s Downtown.

Bringing them onto the board could change
the makeup of the Board and the priorities of
the district.

3. Car Shows and Concerts: “The limited
benefits of the concerts and car shows
specifically benefit the City of El Cajon
and the restaurants on Main Street…We
are recommending that a Downtown
Business Owners Association be formed
in the absence of the PBID…..Presently
the CDC spends at least $150,000 of the
PBID or approximately one fourth of the
PBID budget on these two items.” (page
18).

Note: It appears that car shows and summer
concerts, though well attended, continue to be
the priority events for the current Board of
Directors. In the meantime, some of the real
traffic generators for Downtown, namely
events at The Magnolia, do not have a
representative on the PBID Board and
incorporating their programming into a full
evening in Downtown appears not to be a
priority. Cathy Zeman, CFO, and member of the
current PBID Board, summarized the impacts of
the car show and concerts. Based on her
estimates, the car shows generate
approximately 2,000 weekly and upwards of
5,000 visitors on the four to five times the
street is closed for the car show and as many as
10,000 for the annual Trunk or Treat car show.

Concerts attract between 1,750 and 2,000
visitors most weeks, with up to 4,000 for the
more popular performers.

While these numbers are healthy, it is unclear
how much these ongoing annual events benefit
business and property owners outside of the
concert and show venues in Downtown El
Cajon, something that was mentioned in the
Blue Ribbon report.

4. Summary of Evaluation based upon Key
Performance Indicators: The report listed
6 items as key performance indicators
(KPI), ratings to be from high to low.

Key Performance Rating
CDC Organizational
effectiveness Low
PBID Performance Low
Marketing & Programs
Medium
Grant Project, Benefits to
the City Low
Redevelopment Activities
Performance Low
Economic Justification (Audit,
Management of PBID) Low
Note: It appears that some of the comments
that were directed to the CDC in 2011 may be
relevant today. Without the Redevelopment
Agency, the PBID Board currently has a limited
ability to apply for and receive grants.

However, the prioritization of attracting major
players onto the Board (Marriott and The
Magnolia) remains a problem. The PBID Board
is filled with property owners in Downtown
that have deep and productive relationships in
Downtown El Cajon, but much more is needed.

The high-quality residential projects that were
built in the early 2000s at Main and Magnolia by
local developer Daryl Priest, are an excellent
example of what Downtown El Cajon can
become in the future years. Mixed-use
development is the future of any downtown or
town center today.

B. MIXED USE OVERLAY ZONES FROM THE

DOWNTOWN EL CAJON SPECIFIC PLAN
182:

The City of El Cajon has created an entitlement
guideline report, which is extremely helpful in
showing developers what they can build by right
within the Downtown District. Many of the
points in this report are directly relevant to the
potential reinvention of Downtown El Cajon and
will be cited here. The introduction of this
reports states the following:

The Mixed-Use Overlay Zone establishes
zoning districts that are intended to
provide for the overly transition of certain
areas of El Cajon into walkable districts
that accommodate a mixture of retail,
office, and residential uses, while
protecting existing uses. It is further
intended to protect the existing job base,
develop mixed use cores, provide
transportation, pedestrian and visual
connectivity, and develop safe,
well-designed neighborhoods.

Relevant statements from the Specific Plan
include:

1. History: “In the early years of the century, the
invention of the automobile began to
influence Main Street businesses. By the
mid-1920s, the street was declared part of
the State Highway system. By the 1930s, this
required wider, paved streets and sidewalks.

But shopfronts were in the way, forcing the
State to order business owners on Main
Street to either tear the front dozen feet of
their buildings off, or move the entire
building back. Not wanting to do either,
owners were allowed to move ground floor
storefronts back the required distance. But
they left their roofs, and second floors in
some cases, where they were, propping
them up with support columns to form an
arcade. This has become the Districts’ most
distinguishing architectural feature today.”

2. Parking: “Additional parking spaces are not
required for a change of use of an existing
building…New developments…shall be
addressed in the context of the Downtown
urban environment and will be considered in
conjunction with the associated planning
permit application.” (page 1/1)

3. Design Guidelines: “To recapture a fair
portion of discriminating shoppers now
going elsewhere, the District must renovate
and create places for the many people
visiting the County Courthouse, East County
Performing Arts Center, City Hall and local
businesses. Services for shoppers must be
increased and merchandise lines expanded.

More inviting spaces for visitors, employees
and local residents are required so that
people can meet, gather and talk before
strolling or moving on. These standards
provide guidance to enhance the pedestrian
experience and improve the value of building
facades.

These regulations attempt to encourage
entrepreneurial redevelopment of the
Downtown District as an art, entertainment and
specialty retail and service district for the East
County region. (page 21)
C. ECONOMIC DEVELOPMENT STRATEGIC
PLAN:

In a report from the Natelson Dale Group (an
Economic Development Strategic Plan) was
reviewed by NCA and we had two phone
conversations on the status of this report. This
report was completed in June 2022, so its
recommendations and findings are very relevant
to Downtown El Cajon today. Four quotes will
be taken from that report to clarify the status of
Downtown today:

1. Land Use/Placemaking Programs:

Physical Changes to Accommodate
Quality Growth: “Position Downtown El
Cajon as a regional arts/entertainment
center” (page 4)

2. “Facilitation of public-private Downtown
Working Group (to identify specific needs
and actions to elevate Downtown’s
market position). Downtown component
of overall marketing campaign” (page 5)

3. Position Downtown El Cajon as a
Regional Arts/Entertainment Center: (p.
34) Brief Description of Program: This
strategy will build on existing assets (e.g.

Magnolia Performing Arts Center,
Prescott Promenade, etc.) to leverage
and expand Downtown’s attractiveness
as an entertainment destination.

4. City’s Positioning/Roles in
Implementation: “City will begin by
leading the investigation into how this
strategy can relate to and best be
coordinated with other Downtown
strategies, including the potential role of
festivals, special events, housing
development, etc., as the appropriate
support further research into this issue.”
Action Steps / First Year:
a. “Convene “downtown working group”
comprised (at a minimum) of the partners
listed below to identify critical connections
between EDSP (Economic Development
Strategic Plan) and Downtown-specific
business/development opportunities
(including potential for expanding market
rate housing).”
b. “Incorporate Downtown positioning strategy
in City Economic Development marketing
initiative.”
c. Evaluate potential options for providing
density bonuses (in addition to the existing
mixed-use overlay) to incentivize
development of higher end/higher density
housing)
III. MANAGEMENT DISTRICT PLAN REVIEW
In our experience, the Management District Plan
as well as the Engineer’s reports, are the guiding
documents guiding the Owners
Association/District Management Corporation,
in the day-to-day implementation of the special
benefits district (PBID). The Management District
Plan and Engineer’s report are freely distributed
to the property owners based during the petition
and balloting process so they can anticipate
what the stated priority special benefit services
will be, as well as their costs.

We compared two Management District Plans
for Downtown El Cajon, one that New City
America wrote in 2001 (its first renewal) and then
the current one, which is from 2016, due to
expire in late 2025. We realize that the CDC
apparently did not follow the 2001 Management
District Plan, which led to the “Blue Ribbon
Commission” report done by Scott Barnett
Consulting, in determining that the CDC should
no longer be the Owners Association for the
PBID. It appears that the PBID was renewed in
2011 and again in 2016. The author of the 2016
Management District Plan was Kristen Lowell,
Inc.

In the 2001 plan, we convinced the group to
expand the Downtown PBID to include heading
westward on Magnolia to the Trolley Stop and up
to the freeway on Main Street.

Please see what the PBID law, Section 36622 of
the California Streets and Highway Code
requires in the Management District Plan:
36622. The management district plan shall
contain all of the following:
(a) A map of the district in sufficient detail to
locate each parcel of property and, if
businesses are to be assessed, each business
within the district.
(b) The name of the proposed district.
(c) A description of the boundaries of the
district, including the boundaries of any
benefit zones, proposed for establishment or
extension in a manner sufficient to identify
the affected lands and businesses included.

Under no circumstances shall the boundaries
of a proposed district overlap with the
boundaries of another existing district
created pursuant to this part. Nothing in this
part prohibits the boundaries of a district
created pursuant to this part to overlap with
other assessment districts established
pursuant to other provisions of law including,
but not limited to, the Parking and Business
Improvement Area Law of 1989.
(d) The improvements and activities
proposed for each year of operation of the
district and the maximum cost thereof.
(e) The total annual amount proposed to be
expended for improvements, maintenance
and operations, and debt service in each year
of operation of the district.
(f) The proposed source or sources of
financing including the proposed method
and basis of levying the assessment in
sufficient detail to allow each property or
business owner to calculate the amount of
the assessment to be levied against his or her
property or business. The plan shall also
state whether bonds will be issued to finance
improvements.

The key point in quoting this section of the PBID
law is to review the proposed improvements and
activities for each year of operation of the district
and the maximum cost thereof. Sometime those
improvements and activities are designated by
individual line items, sometimes they are includ-
ed in “categories of special benefit services,”
which represents categories of special benefit
services, but allows the Owners Association to
determine which sub-group of the categories of
services to be prioritized from year to year. For
example, once a web site is created, it does not
have to be created again, rather just managed.

So after the web site is done, those funds allo-
cated to the website can be reallocated in the
category of services outlined in the Management
District Plan.

This gives the Owners Association, who knows
the district more than other stakeholders, the
right to prioritize one service or another based
upon what is going on in the District from year to
year.

What follows is an example of special benefit
categories that have sub-groups allowing such
flexibility. However, the percentages that are
tied to each category of services should be
maintained over the life of the District, to stay
true to what the benefitting property owners
voted on. New City America typically uses
services based on a given business district’s
needs that are defensive in nature or offensive in
nature. Please see a sample below:

CIVIL SIDEWALKS (DEFENSIVE)
Examples of this category of special benefit
services and costs may include, but are not limit-
ed to:
• Maintenance of beautification in the
district including regular sidewalk sweep-
ing, sidewalk pressure washing, etc.
• Maintenance of existing and new public
spaces
• Enhanced trash receptacle
• Landscaping, planting and maintenance
• Introduction of special benefit lighting for
public rights of way
• Event set up and clean up
• Maintenance and order in public right of
way

DISTRICT IDENTITY AND PLACEMAKING /

SOCIAL MEDIA (OFFENSIVE)
Examples of this category of special benefit
services and costs may include, but are not limit-
ed to:
• Website development and updating
• Social media, public relations firm
• District wide ornamental lighting
• Holiday and seasonal decorations
• Events such as the “Taste of...”
• Branding of the District of the PBID prop-
erties so a positive image is promoted to
the public including the development of
a new logo
• Banner programs
• Public art displays
• Public space design and improvements
• Beautification programs

ADMINISTRATION/PROGRAM MANAGEMENT
Examples of this category of special benefit
services and costs may include, but is not limited
to:
• Staff and administrative costs contracted
or in-house
• Directors and Officers and General Liabil-
ity Insurance
• Office related expenses.
• Rent
• Financial reporting and accounting
• Legal work

CONTINGENCY/CITY AND COUNTY FEES/RE-
SERVE
Examples of this category of special benefit
services and costs include, but is not limited to:
• Delinquencies, City/County fees,
reserves, capital project improvements
In addition, the formula of assessments to gen-
erate the annual PBID budget normally consists
of the following factors:

METHOD OF FINANCING
The financing of the PBID is based on the levy of
special assessments on real properties that
receive special benefits from the improvements
and activities, based on which Benefit Zone they
are located within. There may be five factors
used in the determination of proportional costs
to the parcels in the District. These five factors
are:
• Linear frontage, on all sides of the parcel
(excluding alleys)
• Lot size or the footprint of the parcel
• Building square footage
• Current and future residential condo-
miniums that may be constructed within
the District
• Location within one of the geographic
benefit zones of the district
The key factor in this assessment methodology is
“building square footage” since lot size and linear
frontage never change. Including a healthy
building assessment factor, anywhere from .12 to
.22 cents per square foot of building per year will
ensure that any new development will mitigate
the impact of new residents or office workers
filling that new building space.

Please note the change in the 2001 Management
Plan assessment methodology vs. the 2016
Management District plan. Using a combination
PAGE 12
at least to a 1 to 1 ratio of building to lot
size.

Please note also that the building square footage
costs, with the additional 1 million square feet in
building dropped from an annual rate of $0.125
per square foot in the 2001 plan to $0.0818 per
square foot in the 2016 plan, an annual building
assessment reduction of almost 33%.

Service Categories:

Let us now review the special benefit “categories
or bundles of services in each plan and their
percentage of allocation. Since the CDC in 2001
was using the Main Street model or
organizational structure, New City America was
asked to use that model to structure the special
benefit menu of services. Before we list this, we
did a survey of property owners in 2001 to
ascertain their concerns and priorities of the
special benefit district. Taking the results from
that report, it is interesting to see that after 20
years, many of the same problems and issues
remain in Downtown.
2001 Survey of Property Owners by New City
America:

In 2001, a survey was mailed to the property
owners within the Property Business
Improvement District boundaries at that time, as
well as property owners in a proposed expansion
area.

The primary purpose of the survey was to
ascertain the level of support and prioritization
of services desired by property owners in and
around Downtown El Cajon. The preliminary
results of the survey reveal great support for
renewal and continuation of the enhanced
services district commonly known as the
Property Business Improvement District.

To determine the initial level of support, property
owners were categorized by the lot size, building
size and linear frontage of each of their parcels.

These variables were used since they, not the
assessed value of the property, are used as the
basis for the deriving revenues from annual
assessments on real property. In 2001 the survey
responses included:
• 60.9% of the total lot size owners
responded to the survey.
• 49.4% of the total linear frontage
responded.
• 48% of the building’s square foot owners
responded.

The 2001 survey results yielded the following
results:
• 76.6% of the lot size owners supported
continuation of PBID funded enhanced
services.
• 78.1% of the linear frontage owners
supported continuation of the PBID.
• 64.8% of the building size owners
supported continuation.

The survey also asked a number of questions
regarding the current level of services and
re-prioritization of services for the renewed
district. The following is a summary of the
responses received and included in the Blue
Ribbon report:

Length of Ownership – 52% of the respondents
have owned their property for over 10 years, 16%
have owned it for over 25 years.

Type of Ownership – 75% of the respondents
were sole proprietors or family owned.

Image of Downtown – 80% of the respondents
believe that Downtown El Cajon has an image
problem.

Security:
• 65% believe that the area is safe, however
suffers a tremendous image problem as
an unsafe district.
• 68% believe that the existing PBID
security services have made an impact on
reducing criminal activity and restoring
order to Downtown.
• 83% believe the district still has a
homeless or transient problem.
• 55% believe that the homeless problem
has been reduced over the past 3 years.
• 63% support continued PBID funding of
enhanced services for Downtown.

Economic Conditions:
• 60% of the respondents have no
vacancies, however 21% have vacancies
of over 20%.
• Almost 80% charge square footage rents
of less than $1.00 per square foot.
• Over 40% reported that their rental rates
have stayed the same over the past 4
years (This was during a period of a
robust real estate market in other parts of
the County).
• Almost 76% continue to operate their
property as is, 13% plan to sell.

Beautification and Cleanliness:
• 64% of the respondents support PBID
funded expansion of a regular sidewalk
and gutter sweeping service.
• 50% support continuation and expansion
of the Downtown El Cajon street light
pole banner program.
• 70% support the planting of new,
non-invasive trees along the gateway and
main commercial corridors to beautify
the District.
• 93% believe that property owners should
continue to give input to all the major
projects as well as long range planning
decisions in this area.

The top four priorities listed in a multiple-choice
selection were as follows:
1) Public safety, providing of security,
dealing with homelessness.
2) Identification of and attraction of new
businesses.
3) Maintenance of the area includes daily
sidewalk sweeping, tree planting, and
maintenance, etc.
4) Marketing and promotion.

Management District Plan for 2001:

Those categories, costs and percentages using
the 2001 CDC Main Street organizational system
for Downtown El Cajon were as follows:
of linear frontage and lot size will never capture
the dynamic growth of the area due to the low
rate and will ensure that the District will not have
enough revenue to keep up with its growth. In
this company’s opinion, those consultants that
don’t advise their clients to use a robust building
square footage assessment as a key cost factor
are providing a disservice to their clients.

Action Steps / Second Year:
a. “Pursue additional strategies (based on needs
identified by working group) to focus City
policies and resources on the Downtown.”
b. “Partnership Resources:
• Downtown El Cajon Business Partners;
• San Diego E. County Chamber
• East County EDC
• Live Nation
• Local/regional arts organizations
• Housing/mixed use developers.

Convene Downtown working group and
facilitate 2 – 4 scoping meetings”.

D. TRANSIT DISTRICT SPECIFIC PLAN:

Quotes from the City of El Cajon, Transit District
Specific Plan, Adopted 2018, City Council
Resolution No. 039-18
“The following represents some of the key
themes derived from the outreach process:
(page 9)
• Add more trees and vegetation.
• Add public art, lighting, trash cans,
shade/trees.
• Address challenges with some properties
that might not turn over in the near term,
especially, properties that are at key
nodes in the community.
• Create a walkable retail environment,
create a Main Street or Village experience
with small businesses and increased
active uses.”
E. DOWNTOWN EL CAJON BUSINESS

PARTNERS INC, FINANCIAL STATEMENTS
(JUNE 2022)
As part of its contract with the City, the
Downtown El Cajon Business Partners is
*Size of the district from 1996 to 2001 increased
by 50% under the New City America plan.

Additionally, 3 benefit zones were created to
ensure that there were proportional costs and
benefits to property owners.
**Not sure where the extra over 1 million square
feet in building square footage came from
between the 2001 plan and the 2016 plan.

Building to Lot size Ratio:

In 2001, the ratio of building square footage to
lot size was 922,934 to 5,939,837 or a ratio of .16
to 1. Normally a Downtown area will have a
minimum of a 1 to 1 ratio of building to lot size.

This ratio shows us that Downtown El Cajon had
to increase its building square footage sixfold to
reach that 1 to 1 ratio – thus there was a lot of
opportunity for new growth. The 2016
Management Plan lists over 1 million additional
building square footage over the 2001 plan. We
are not sure where that data came from. If we
believe the data in the 2016 plan than the ratio of
building to lot size would be:
• 1,978,138 / 5,969,729 equals a ratio .33 to

1. This is twice as high as the ratio we had
for the 2001 plan, but still way below
where the Downtown growth should be,
required to submit an annual report, audits, and
annual financial statements. Reviewing these
documents raised several points of concern.

Please keep in mind that the Management
District Plan, approved by the property owners
through the mail ballot proceeding, is almost like
a “contract” to explain which special benefits will
be funded with the formation of the PBID.

Normally, a 10% deviation is allowable over the
term of the plan per category. The reason why
categories of services are outlined in the
Management District Plan is to inform property
owners how their designated Board or “Owners
Association” will allocate PBID funds during the
term of the District. The Auditor has not looked
at the plan to determine the percentages and
amounts that the property owners voted on in
2016, and rather just reported on what the
Downtown El Cajon Business Partners provided.

On page 5, the fiscal year ending on June 30th,
2022, the Auditor had listed the following
expenditures based upon the previous fiscal
year.

II. REVIEW OF RECENT REPORTS ON

DOWNTOWN
Prior to launching the analysis of Downtown,
NCA reviewed past reports and studies of the
Downtown. Many included helpful
recommendations for improving Downtown El
Cajon. Those reports, including excerpts from
their findings, include:
a. El Cajon Blue Ribbon Commission
Report (2011)
b. Mixed Use Overlay Zones (From the
Downtown Specific Plan)
c. Economic Development Strategic
Plan (2022)
d. Transit District Specific Plan (2018)
e. Downtown El Cajon Business
Partners Inc, Financial Statements
(June 2022)
A. EL CAJON BLUE RIBBON COMMISSION
REPORT (2011):

In 2011, the City Council commissioned a group
of citizens and business owners to “investigate
the performance of El Cajon Community
Development Corporation (CDC). There are four
recommendations that have relevance today.

Below are the four recommendations from the
Blue Ribbon Commission, along with
commentary from NCA.

1. “It (The CDC running the PBID), is
specifically apparent, that at least 50% of
the PBID dollars collected are used for
overhead and approximately 25% are
spent on car shows and concerts –
recognize that the car shows and
concerts benefit El Cajon and very few of
the people assessed by the PBID. Little
benefit can be identified to stakeholders
assessed outside the Main Street
corridor.” (page 5).

Note: The current PBID Board continues to
prioritize car shows and concerts. The impact
of these events may be beneficial to businesses
directly adjacent to the venue, but we are not
sure the majority of the property owners and
businesses in Downtown derive increased
revenues from these efforts and use of
collected property assessments.

2. “There needs to be developers, builders,
significant business leaders and most
importantly commercial real estate
specialists that can bring together the
information necessary to determine a
realistic vision and know how to
implement it.” (page 15)
Note: This is more relevant now than ever.

Those in the real estate industry, including
brokers and developers, should be prioritized
as members of the PBID Board. These
professionals have a network of developers,
particularly mixed-use developers, that could
bring investment to the El Cajon’s Downtown.

Bringing them onto the board could change
the makeup of the Board and the priorities of
the district.

3. Car Shows and Concerts: “The limited
benefits of the concerts and car shows
specifically benefit the City of El Cajon
and the restaurants on Main Street…We
are recommending that a Downtown
Business Owners Association be formed
in the absence of the PBID…..Presently
the CDC spends at least $150,000 of the
PBID or approximately one fourth of the
PBID budget on these two items.” (page
18).

Note: It appears that car shows and summer
concerts, though well attended, continue to be
the priority events for the current Board of
Directors. In the meantime, some of the real
traffic generators for Downtown, namely
events at The Magnolia, do not have a
representative on the PBID Board and
incorporating their programming into a full
evening in Downtown appears not to be a
priority. Cathy Zeman, CFO, and member of the
current PBID Board, summarized the impacts of
the car show and concerts. Based on her
estimates, the car shows generate
approximately 2,000 weekly and upwards of
5,000 visitors on the four to five times the
street is closed for the car show and as many as
10,000 for the annual Trunk or Treat car show.

Concerts attract between 1,750 and 2,000
visitors most weeks, with up to 4,000 for the
more popular performers.

While these numbers are healthy, it is unclear
how much these ongoing annual events benefit
business and property owners outside of the
concert and show venues in Downtown El
Cajon, something that was mentioned in the
Blue Ribbon report.

4. Summary of Evaluation based upon Key
Performance Indicators: The report listed
6 items as key performance indicators
(KPI), ratings to be from high to low.

Key Performance Rating
CDC Organizational
effectiveness Low
PBID Performance Low
Marketing & Programs
Medium
Grant Project, Benefits to
the City Low
Redevelopment Activities
Performance Low
Economic Justification (Audit,
Management of PBID) Low
Note: It appears that some of the comments
that were directed to the CDC in 2011 may be
relevant today. Without the Redevelopment
Agency, the PBID Board currently has a limited
ability to apply for and receive grants.

However, the prioritization of attracting major
players onto the Board (Marriott and The
Magnolia) remains a problem. The PBID Board
is filled with property owners in Downtown
that have deep and productive relationships in
Downtown El Cajon, but much more is needed.

The high-quality residential projects that were
built in the early 2000s at Main and Magnolia by
local developer Daryl Priest, are an excellent
example of what Downtown El Cajon can
become in the future years. Mixed-use
development is the future of any downtown or
town center today.

B. MIXED USE OVERLAY ZONES FROM THE

DOWNTOWN EL CAJON SPECIFIC PLAN
182:

The City of El Cajon has created an entitlement
guideline report, which is extremely helpful in
showing developers what they can build by right
within the Downtown District. Many of the
points in this report are directly relevant to the
potential reinvention of Downtown El Cajon and
will be cited here. The introduction of this
reports states the following:

The Mixed-Use Overlay Zone establishes
zoning districts that are intended to
provide for the overly transition of certain
areas of El Cajon into walkable districts
that accommodate a mixture of retail,
office, and residential uses, while
protecting existing uses. It is further
intended to protect the existing job base,
develop mixed use cores, provide
transportation, pedestrian and visual
connectivity, and develop safe,
well-designed neighborhoods.

Relevant statements from the Specific Plan
include:

1. History: “In the early years of the century, the
invention of the automobile began to
influence Main Street businesses. By the
mid-1920s, the street was declared part of
the State Highway system. By the 1930s, this
required wider, paved streets and sidewalks.

But shopfronts were in the way, forcing the
State to order business owners on Main
Street to either tear the front dozen feet of
their buildings off, or move the entire
building back. Not wanting to do either,
owners were allowed to move ground floor
storefronts back the required distance. But
they left their roofs, and second floors in
some cases, where they were, propping
them up with support columns to form an
arcade. This has become the Districts’ most
distinguishing architectural feature today.”

2. Parking: “Additional parking spaces are not
required for a change of use of an existing
building…New developments…shall be
addressed in the context of the Downtown
urban environment and will be considered in
conjunction with the associated planning
permit application.” (page 1/1)

3. Design Guidelines: “To recapture a fair
portion of discriminating shoppers now
going elsewhere, the District must renovate
and create places for the many people
visiting the County Courthouse, East County
Performing Arts Center, City Hall and local
businesses. Services for shoppers must be
increased and merchandise lines expanded.

More inviting spaces for visitors, employees
and local residents are required so that
people can meet, gather and talk before
strolling or moving on. These standards
provide guidance to enhance the pedestrian
experience and improve the value of building
facades.

These regulations attempt to encourage
entrepreneurial redevelopment of the
Downtown District as an art, entertainment and
specialty retail and service district for the East
County region. (page 21)
C. ECONOMIC DEVELOPMENT STRATEGIC
PLAN:

In a report from the Natelson Dale Group (an
Economic Development Strategic Plan) was
reviewed by NCA and we had two phone
conversations on the status of this report. This
report was completed in June 2022, so its
recommendations and findings are very relevant
to Downtown El Cajon today. Four quotes will
be taken from that report to clarify the status of
Downtown today:

1. Land Use/Placemaking Programs:

Physical Changes to Accommodate
Quality Growth: “Position Downtown El
Cajon as a regional arts/entertainment
center” (page 4)

2. “Facilitation of public-private Downtown
Working Group (to identify specific needs
and actions to elevate Downtown’s
market position). Downtown component
of overall marketing campaign” (page 5)

3. Position Downtown El Cajon as a
Regional Arts/Entertainment Center: (p.
34) Brief Description of Program: This
strategy will build on existing assets (e.g.

Magnolia Performing Arts Center,
Prescott Promenade, etc.) to leverage
and expand Downtown’s attractiveness
as an entertainment destination.

4. City’s Positioning/Roles in
Implementation: “City will begin by
leading the investigation into how this
strategy can relate to and best be
coordinated with other Downtown
strategies, including the potential role of
festivals, special events, housing
development, etc., as the appropriate
support further research into this issue.”
Action Steps / First Year:
a. “Convene “downtown working group”
comprised (at a minimum) of the partners
listed below to identify critical connections
between EDSP (Economic Development
Strategic Plan) and Downtown-specific
business/development opportunities
(including potential for expanding market
rate housing).”
b. “Incorporate Downtown positioning strategy
in City Economic Development marketing
initiative.”
c. Evaluate potential options for providing
density bonuses (in addition to the existing
mixed-use overlay) to incentivize
development of higher end/higher density
housing)
III. MANAGEMENT DISTRICT PLAN REVIEW
In our experience, the Management District Plan
as well as the Engineer’s reports, are the guiding
documents guiding the Owners
Association/District Management Corporation,
in the day-to-day implementation of the special
benefits district (PBID). The Management District
Plan and Engineer’s report are freely distributed
to the property owners based during the petition
and balloting process so they can anticipate
what the stated priority special benefit services
will be, as well as their costs.

We compared two Management District Plans
for Downtown El Cajon, one that New City
America wrote in 2001 (its first renewal) and then
the current one, which is from 2016, due to
expire in late 2025. We realize that the CDC
apparently did not follow the 2001 Management
District Plan, which led to the “Blue Ribbon
Commission” report done by Scott Barnett
Consulting, in determining that the CDC should
no longer be the Owners Association for the
PBID. It appears that the PBID was renewed in
2011 and again in 2016. The author of the 2016
Management District Plan was Kristen Lowell,
Inc.

In the 2001 plan, we convinced the group to
expand the Downtown PBID to include heading
westward on Magnolia to the Trolley Stop and up
to the freeway on Main Street.

Please see what the PBID law, Section 36622 of
the California Streets and Highway Code
requires in the Management District Plan:
36622. The management district plan shall
contain all of the following:
(a) A map of the district in sufficient detail to
locate each parcel of property and, if
businesses are to be assessed, each business
within the district.
(b) The name of the proposed district.
(c) A description of the boundaries of the
district, including the boundaries of any
benefit zones, proposed for establishment or
extension in a manner sufficient to identify
the affected lands and businesses included.

Under no circumstances shall the boundaries
of a proposed district overlap with the
boundaries of another existing district
created pursuant to this part. Nothing in this
part prohibits the boundaries of a district
created pursuant to this part to overlap with
other assessment districts established
pursuant to other provisions of law including,
but not limited to, the Parking and Business
Improvement Area Law of 1989.
(d) The improvements and activities
proposed for each year of operation of the
district and the maximum cost thereof.
(e) The total annual amount proposed to be
expended for improvements, maintenance
and operations, and debt service in each year
of operation of the district.
(f) The proposed source or sources of
financing including the proposed method
and basis of levying the assessment in
sufficient detail to allow each property or
business owner to calculate the amount of
the assessment to be levied against his or her
property or business. The plan shall also
state whether bonds will be issued to finance
improvements.

The key point in quoting this section of the PBID
law is to review the proposed improvements and
activities for each year of operation of the district
and the maximum cost thereof. Sometime those
improvements and activities are designated by
individual line items, sometimes they are includ-
ed in “categories of special benefit services,”
which represents categories of special benefit
services, but allows the Owners Association to
determine which sub-group of the categories of
services to be prioritized from year to year. For
example, once a web site is created, it does not
have to be created again, rather just managed.

So after the web site is done, those funds allo-
cated to the website can be reallocated in the
category of services outlined in the Management
District Plan.

This gives the Owners Association, who knows
the district more than other stakeholders, the
right to prioritize one service or another based
upon what is going on in the District from year to
year.

What follows is an example of special benefit
categories that have sub-groups allowing such
flexibility. However, the percentages that are
tied to each category of services should be
maintained over the life of the District, to stay
true to what the benefitting property owners
voted on. New City America typically uses
services based on a given business district’s
needs that are defensive in nature or offensive in
nature. Please see a sample below:

CIVIL SIDEWALKS (DEFENSIVE)
Examples of this category of special benefit
services and costs may include, but are not limit-
ed to:
• Maintenance of beautification in the
district including regular sidewalk sweep-
ing, sidewalk pressure washing, etc.
• Maintenance of existing and new public
spaces
• Enhanced trash receptacle
• Landscaping, planting and maintenance
• Introduction of special benefit lighting for
public rights of way
• Event set up and clean up
• Maintenance and order in public right of
way

DISTRICT IDENTITY AND PLACEMAKING /

SOCIAL MEDIA (OFFENSIVE)
Examples of this category of special benefit
services and costs may include, but are not limit-
ed to:
• W
ebsite development and updating
• Social media, public relations firm
• District wide ornamental lighting
• Holiday and seasonal decorations
• Events such as the “Taste of...”
• Branding of the District of the PBID prop-
erties so a positive image is promoted to
the public including the development of
a new logo
• Banner programs
• Public art displays
• Public space design and improvements
• Beautification programs

ADMINISTRATION/PROGRAM MANAGEMENT
Examples of this category of special benefit
services and costs may include, but is not limited
to:
• Staff and administrative costs contracted
or in-house
• Directors and Officers and General Liabil-
ity Insurance
• Office related expenses.
• Rent
• Financial reporting and accounting
• Legal work

CONTINGENCY/CITY AND COUNTY FEES/RE-
SERVE
Examples of this category of special benefit
services and costs include, but is not limited to:
• Delinquencies, City/County fees,
reserves, capital project improvements
In addition, the formula of assessments to gen-
erate the annual PBID budget normally consists
of the following factors:

METHOD OF FINANCING
The financing of the PBID is based on the levy of
special assessments on real properties that
receive special benefits from the improvements
and activities, based on which Benefit Zone they
are located within. There may be five factors
used in the determination of proportional costs
to the parcels in the District. These five factors
are:
• Linear frontage, on all sides of the parcel
(excluding alleys)
• Lot size or the footprint of the parcel
• Building square footage
• Current and future residential condo-
miniums that may be constructed within
the District
• Location within one of the geographic
benefit zones of the district
The key factor in this assessment methodology is
“building square footage” since lot size and linear
frontage never change. Including a healthy
building assessment factor, anywhere from .12 to
.22 cents per square foot of building per year will
ensure that any new development will mitigate
the impact of new residents or office workers
filling that new building space.

Please note the change in the 2001 Management
Plan assessment methodology vs. the 2016
Management District plan. Using a combination
at least to a 1 to 1 ratio of building to lot
size.

Please note also that the building square footage
costs, with the additional 1 million square feet in
building dropped from an annual rate of $0.125
per square foot in the 2001 plan to $0.0818 per
square foot in the 2016 plan, an annual building
assessment reduction of almost 33%.

Service Categories:

Let us now review the special benefit “categories
or bundles of services in each plan and their
percentage of allocation. Since the CDC in 2001
was using the Main Street model or
organizational structure, New City America was
asked to use that model to structure the special
benefit menu of services. Before we list this, we
did a survey of property owners in 2001 to
ascertain their concerns and priorities of the
special benefit district. Taking the results from
that report, it is interesting to see that after 20
years, many of the same problems and issues
remain in Downtown.
2001 Survey of Property Owners by New City
America:

In 2001, a survey was mailed to the property
owners within the Property Business
Improvement District boundaries at that time, as
well as property owners in a proposed expansion
area.

The primary purpose of the survey was to
ascertain the level of support and prioritization
of services desired by property owners in and
around Downtown El Cajon. The preliminary
results of the survey reveal great support for
renewal and continuation of the enhanced
services district commonly known as the
Property Business Improvement District.

To determine the initial level of support, property
owners were categorized by the lot size, building
size and linear frontage of each of their parcels.

These variables were used since they, not the
assessed value of the property, are used as the
basis for the deriving revenues from annual
assessments on real property. In 2001 the survey
responses included:
• 60.9% of the total lot size owners
responded to the survey.
• 49.4% of the total linear frontage
responded.
• 48% of the building’s square foot owners
responded.

The 2001 survey results yielded the following
results:
• 76.6% of the lot size owners supported
continuation of PBID funded enhanced
services.
• 78.1% of the linear frontage owners
supported continuation of the PBID.
• 64.8% of the building size owners
supported continuation.

The survey also asked a number of questions
regarding the current level of services and
re-prioritization of services for the renewed
district. The following is a summary of the
responses received and included in the Blue
Ribbon report:

Length of Ownership – 52% of the respondents
have owned their property for over 10 years, 16%
have owned it for over 25 years.

Type of Ownership – 75% of the respondents
were sole proprietors or family owned.

Image of Downtown – 80% of the respondents
believe that Downtown El Cajon has an image
problem.

Security:
• 65% believe that the area is safe, however
suffers a tremendous image problem as
an unsafe district.
• 68% believe that the existing PBID
security services have made an impact on
reducing criminal activity and restoring
order to Downtown.
• 83% believe the district still has a
homeless or transient problem.
• 55% believe that the homeless problem
has been reduced over the past 3 years.
• 63% support continued PBID funding of
enhanced services for Downtown.

Economic Conditions:
• 60% of the respondents have no
vacancies, however 21% have vacancies
of over 20%.
• Almost 80% charge square footage rents
of less than $1.00 per square foot.
• Over 40% reported that their rental rates
have stayed the same over the past 4
years (This was during a period of a
robust real estate market in other parts of
the County).
• Almost 76% continue to operate their
property as is, 13% plan to sell.

Beautification and Cleanliness:
• 64% of the respondents support PBID
funded expansion of a regular sidewalk
and gutter sweeping service.
• 50% support continuation and expansion
of the Downtown El Cajon street light
pole banner program.
• 70% support the planting of new,
non-invasive trees along the gateway and
main commercial corridors to beautify
the District.
• 93% believe that property owners should
continue to give input to all the major
projects as well as long range planning
decisions in this area.

The top four priorities listed in a multiple-choice
selection were as follows:
1) Public safety, providing of security,
dealing with homelessness.
2) Identification of and attraction of new
businesses.
3) Maintenance of the area includes daily
sidewalk sweeping, tree planting, and
maintenance, etc.
4) Marketing and promotion.

Management District Plan for 2001:

Those categories, costs and percentages using
the 2001 CDC Main Street organizational system
for Downtown El Cajon were as follows:
of linear frontage and lot size will never capture
the dynamic growth of the area due to the low
rate and will ensure that the District will not have
enough revenue to keep up with its growth. In
this company’s opinion, those consultants that
don’t advise their clients to use a robust building
square footage assessment as a key cost factor
are providing a disservice to their clients.PAGE 13
Action Steps / Second Year:
a. “Pursue additional strategies (based on needs
identified by working group) to focus City
policies and resources on the Downtown.”
b. “Partnership Resources:
• Downtown El Cajon Business Partners;
• San Diego E. County Chamber
• East County EDC
• Live Nation
• Local/regional arts organizations
• Housing/mixed use developers.

Convene Downtown working group and
facilitate 2 – 4 scoping meetings”.

D. TRANSIT DISTRICT SPECIFIC PLAN:

Quotes from the City of El Cajon, Transit District
Specific Plan, Adopted 2018, City Council
Resolution No. 039-18
“The following represents some of the key
themes derived from the outreach process:
(page 9)
• Add more trees and vegetation.
• Add public art, lighting, trash cans,
shade/trees.
• Address challenges with some properties
that might not turn over in the near term,
especially, properties that are at key
nodes in the community.
• Create a walkable retail environment,
create a Main Street or Village experience
with small businesses and increased
active uses.”
E. DOWNTOWN EL CAJON BUSINESS

PARTNERS INC, FINANCIAL STATEMENTS
(JUNE 2022)
As part of its contract with the City, the
Downtown El Cajon Business Partners is
Year of
Management
District Plan -
Author
2001 - New
City America*
Three benefit
zones
2016 - Kristen
Lowell Assoc.

Two benefit
zones
Annual
Budget
$513,210
$560,000
Property Data
(All 3 factors
have an
assessment)
922,934 in
building sqft
(22% of
budget)
5,939,837 sqft
in lot/parcel
size (62% of
budget)
25,461 linear
feet (16% of
budget)
1,978,138 in
building sqft**
5,969,729 in
lot/parcel size
sqft
No linear
frontage listed
Annual
Assessment
for Buildings
$0.125 per sqft
per year for
Zones 1 and 2,
no building
cost for Zone
3 $0.0475 for
residential /
non-profit to

$0.0818 per
sqft of building
and lot
combined
Annual
Assessment
for Lot Size
$0.0535 per
sqft per year
for zone 1, 2
and 3
$0.0475 for
residential /
non-profit
to $0.0818 per
sqft of building
and lot
combined
Annual
Assessment
for Linear
Frontage
Zone 1 -
$3.51 per foot
Zone 2 -
$1.00 per foot
Zone 3 -
$3.51 per foot
0 costs for
Zones 1 and 2
*Size of the district from 1996 to 2001 increased
by 50% under the New City America plan.

Additionally, 3 benefit zones were created to
ensure that there were proportional costs and
benefits to property owners.
**Not sure where the extra over 1 million square
feet in building square footage came from
between the 2001 plan and the 2016 plan.

Building to Lot size Ratio:

In 2001, the ratio of building square footage to
lot size was 922,934 to 5,939,837 or a ratio of .16
to 1. Normally a Downtown area will have a
minimum of a 1 to 1 ratio of building to lot size.

This ratio shows us that Downtown El Cajon had
to increase its building square footage sixfold to
reach that 1 to 1 ratio – thus there was a lot of
opportunity for new growth. The 2016
Management Plan lists over 1 million additional
building square footage over the 2001 plan. We
are not sure where that data came from. If we
believe the data in the 2016 plan than the ratio of
building to lot size would be:
• 1,978,138 / 5,969,729 equals a ratio .33 to

1. This is twice as high as the ratio we had
for the 2001 plan, but still way below
where the Downtown growth should be,
required to submit an annual report, audits, and
annual financial statements. Reviewing these
documents raised several points of concern.

Please keep in mind that the Management
District Plan, approved by the property owners
through the mail ballot proceeding, is almost like
a “contract” to explain which special benefits will
be funded with the formation of the PBID.

Normally, a 10% deviation is allowable over the
term of the plan per category. The reason why
categories of services are outlined in the
Management District Plan is to inform property
owners how their designated Board or “Owners
Association” will allocate PBID funds during the
term of the District. The Auditor has not looked
at the plan to determine the percentages and
amounts that the property owners voted on in
2016, and rather just reported on what the
Downtown El Cajon Business Partners provided.

On page 5, the fiscal year ending on June 30th,
2022, the Auditor had listed the following
expenditures based upon the previous fiscal
year.
at least to a 1 to 1 ratio of building to lot
size.

Please note also that the building square footage
costs, with the additional 1 million square feet in
building dropped from an annual rate of $0.125
per square foot in the 2001 plan to $0.0818 per
square foot in the 2016 plan, an annual building
assessment reduction of almost 33%.

Service Categories:

Let us now review the special benefit “categories
or bundles of services in each plan and their
percentage of allocation. Since the CDC in 2001
was using the Main Street model or
organizational structure, New City America was
asked to use that model to structure the special
benefit menu of services. Before we list this, we
did a survey of property owners in 2001 to
ascertain their concerns and priorities of the
special benefit district. Taking the results from
that report, it is interesting to see that after 20
years, many of the same problems and issues
remain in Downtown.
2001 Survey of Property Owners by New City
America:

In 2001, a survey was mailed to the property
owners within the Property Business
Improvement District boundaries at that time, as
well as property owners in a proposed expansion
area.

The primary purpose of the survey was to
ascertain the level of support and prioritization
of services desired by property owners in and
around Downtown El Cajon. The preliminary
results of the survey reveal great support for
renewal and continuation of the enhanced
services district commonly known as the
Property Business Improvement District.

To determine the initial level of support, property
owners were categorized by the lot size, building
size and linear frontage of each of their parcels.

These variables were used since they, not the
assessed value of the property, are used as the
basis for the deriving revenues from annual
assessments on real property. In 2001 the survey
responses included:
• 60.9% of the total lot size owners
responded to the survey.
• 49.4% of the total linear frontage
responded.
• 48% of the building’s square foot owners
responded.

The 2001 survey results yielded the following
results:
• 76.6% of the lot size owners supported
continuation of PBID funded enhanced
services.
• 78.1% of the linear frontage owners
supported continuation of the PBID.
• 64.8% of the building size owners
supported continuation.

The survey also asked a number of questions
regarding the current level of services and
re-prioritization of services for the renewed
district. The following is a summary of the
responses received and included in the Blue
Ribbon report:

Length of Ownership – 52% of the respondents
have owned their property for over 10 years, 16%
have owned it for over 25 years.

Type of Ownership – 75% of the respondents
were sole proprietors or family owned.

Image of Downtown – 80% of the respondents
believe that Downtown El Cajon has an image
problem.

Security:
• 65% believe that the area is safe, however
suffers a tremendous image problem as
an unsafe district.
• 68% believe that the existing PBID
security services have made an impact on
reducing criminal activity and restoring
order to Downtown.
• 83% believe the district still has a
homeless or transient problem.
• 55% believe that the homeless problem
has been reduced over the past 3 years.
• 63% support continued PBID funding of
enhanced services for Downtown.

Economic Conditions:
• 60% of the respondents have no
vacancies, however 21% have vacancies
of over 20%.
• Almost 80% charge square footage rents
PAGE 14
of less than $1.00 per square foot.
• Over 40% reported that their rental rates
have stayed the same over the past 4
years (This was during a period of a
robust real estate market in other parts of
the County).
• Almost 76% continue to operate their
property as is, 13% plan to sell.

Beautification and Cleanliness:
• 64% of the respondents support PBID
funded expansion of a regular sidewalk
and gutter sweeping service.
• 50% support continuation and expansion
of the Downtown El Cajon street light
pole banner program.
• 70% support the planting of new,
non-invasive trees along the gateway and
main commercial corridors to beautify
the District.
• 93% believe that property owners should
continue to give input to all the major
projects as well as long range planning
decisions in this area.

The top four priorities listed in a multiple-choice
selection were as follows:
1) Public safety, providing of security,
dealing with homelessness.
2) Identification of and attraction of new
businesses.
3) Maintenance of the area includes daily
sidewalk sweeping, tree planting, and
maintenance, etc.
4) Marketing and promotion.

Management District Plan for 2001:

Those categories, costs and percentages using
the 2001 CDC Main Street organizational system
for Downtown El Cajon were as follows:
*Size of the district from 1996 to 2001 increased
by 50% under the New City America plan.

Additionally, 3 benefit zones were created to
ensure that there were proportional costs and
benefits to property owners.
**Not sure where the extra over 1 million square
feet in building square footage came from
between the 2001 plan and the 2016 plan.

Building to Lot size Ratio:

In 2001, the ratio of building square footage to
lot size was 922,934 to 5,939,837 or a ratio of .16
to 1. Normally a Downtown area will have a
minimum of a 1 to 1 ratio of building to lot size.

This ratio shows us that Downtown El Cajon had
to increase its building square footage sixfold to
reach that 1 to 1 ratio – thus there was a lot of
opportunity for new growth. The 2016
Management Plan lists over 1 million additional
building square footage over the 2001 plan. We
are not sure where that data came from. If we
believe the data in the 2016 plan than the ratio of
building to lot size would be:
• 1,978,138 / 5,969,729 equals a ratio .33 to

1. This is twice as high as the ratio we had
for the 2001 plan, but still way below
where the Downtown growth should be,
at least to a 1 to 1 ratio of building to lot
size.

Please note also that the building square footage
costs, with the additional 1 million square feet in
building dropped from an annual rate of $0.125
per square foot in the 2001 plan to $0.0818 per
square foot in the 2016 plan, an annual building
assessment reduction of almost 33%.

Service Categories:

Let us now review the special benefit “categories
or bundles of services in each plan and their
percentage of allocation. Since the CDC in 2001
was using the Main Street model or
organizational structure, New City America was
asked to use that model to structure the special
benefit menu of services. Before we list this, we
did a survey of property owners in 2001 to
ascertain their concerns and priorities of the
special benefit district. Taking the results from
that report, it is interesting to see that after 20
years, many of the same problems and issues
remain in Downtown.
2001 Survey of Property Owners by New City
America:

In 2001, a survey was mailed to the property
owners within the Property Business
Improvement District boundaries at that time, as
well as property owners in a proposed expansion
area.

The primary purpose of the survey was to
ascertain the level of support and prioritization
of services desired by property owners in and
around Downtown El Cajon. The preliminary
results of the survey reveal great support for
renewal and continuation of the enhanced
services district commonly known as the
Property Business Improvement District.

To determine the initial level of support, property
owners were categorized by the lot size, building
size and linear frontage of each of their parcels.

These variables were used since they, not the
assessed value of the property, are used as the
basis for the deriving revenues from annual
assessments on real property. In 2001 the survey
responses included:
• 60.9% of the total lot size owners
responded to the survey.
• 49.4% of the total linear frontage
responded.
• 48% of the building’s square foot owners
responded.

The 2001 survey results yielded the following
results:
• 76.6% of the lot size owners supported
continuation of PBID funded enhanced
services.
• 78.1% of the linear frontage owners
supported continuation of the PBID.
• 64.8% of the building size owners
supported continuation.

The survey also asked a number of questions
regarding the current level of services and
re-prioritization of services for the renewed
district. The following is a summary of the
responses received and included in the Blue
Ribbon report:

Length of Ownership – 52% of the respondents
have owned their property for over 10 years, 16%
have owned it for over 25 years.

Type of Ownership – 75% of the respondents
were sole proprietors or family owned.

Image of Downtown – 80% of the respondents
believe that Downtown El Cajon has an image
problem.

Security:
• 65% believe that the area is safe, however
suffers a tremendous image problem as
an unsafe district.
• 68% believe that the existing PBID
security services have made an impact on
reducing criminal activity and restoring
order to Downtown.
• 83% believe the district still has a
homeless or transient problem.
• 55% believe that the homeless problem
has been reduced over the past 3 years.
• 63% support continued PBID funding of
enhanced services for Downtown.

Economic Conditions:
• 60% of the respondents have no
vacancies, however 21% have vacancies
of over 20%.
• Almost 80% charge square footage rents
of less than $1.00 per square foot.
• Over 40% reported that their rental rates
have stayed the same over the past 4
years (This was during a period of a
robust real estate market in other parts of
the County).
• Almost 76% continue to operate their
property as is, 13% plan to sell.

Beautification and Cleanliness:
• 64% of the respondents support PBID
funded expansion of a regular sidewalk
and gutter sweeping service.
• 50% support continuation and expansion
of the Downtown El Cajon street light
pole banner program.
• 70% support the planting of new,
non-invasive trees along the gateway and
main commercial corridors to beautify
the District.
• 93% believe that property owners should
continue to give input to all the major
projects as well as long range planning
decisions in this area.

The top four priorities listed in a multiple-choice
selection were as follows:
1) Public safety, providing of security,
dealing with homelessness.
2) Identification of and attraction of new
businesses.
3) Maintenance of the area includes daily
sidewalk sweeping, tree planting, and
maintenance, etc.
4) Marketing and promotion.

Management District Plan for 2001:

Those categories, costs and percentages using
the 2001 CDC Main Street organizational system
for Downtown El Cajon were as follows:

PAGE 15
*Size of the district from 1996 to 2001 increased
by 50% under the New City America plan.

Additionally, 3 benefit zones were created to
ensure that there were proportional costs and
benefits to property owners.
**Not sure where the extra over 1 million square
feet in building square footage came from
between the 2001 plan and the 2016 plan.

Building to Lot size Ratio:

In 2001, the ratio of building square footage to
lot size was 922,934 to 5,939,837 or a ratio of .16
to 1. Normally a Downtown area will have a
minimum of a 1 to 1 ratio of building to lot size.

This ratio shows us that Downtown El Cajon had
to increase its building square footage sixfold to
reach that 1 to 1 ratio – thus there was a lot of
opportunity for new growth. The 2016
Management Plan lists over 1 million additional
building square footage over the 2001 plan. We
are not sure where that data came from. If we
believe the data in the 2016 plan than the ratio of
building to lot size would be:
• 1,978,138 / 5,969,729 equals a ratio .33 to

1. This is twice as high as the ratio we had
for the 2001 plan, but still way below
where the Downtown growth should be,
Committee / Service to be
Funded
Economic Restructuring /
Security
Design / Beautification and
Maintenance
Promotions / Marketing
Organization / PBID
Management
Reserve
Total Estimated Revenues
Annual Allocation
$161,000
$119,974
$89,684
$124,710
$17,842
$513,210
% of Total Budget
31%
23%
18%
24%
4%
100%
Category of Expense according to the 2016
Management District Plan
Economic Enhancements
Environmental Enhancements
Management Services
Total for FY 21-22
Amount allocated in the approved 2016
Management District Plan
$150,000 – 26.79%
$ 250,000 – 44.64%
$ 150,000 – 26.79%
$ 560,000

ESTIMATED ANNUAL SERVICES AND REVENUES OF
GREATER DOWNTOWN EL CAJON P.B.I.D. - 2001

ESTIMATED ANNUAL SERVICES AND REVENUES OF
GREATER DOWNTOWN EL CAJON P.B.I.D. - 2016
at least to a 1 to 1 ratio of building to lot
size.

Please note also that the building square footage
costs, with the additional 1 million square feet in
building dropped from an annual rate of $0.125
per square foot in the 2001 plan to $0.0818 per
square foot in the 2016 plan, an annual building
assessment reduction of almost 33%.

Service Categories:

Let us now review the special benefit “categories
or bundles of services in each plan and their
percentage of allocation. Since the CDC in 2001
was using the Main Street model or
organizational structure, New City America was
asked to use that model to structure the special
benefit menu of services. Before we list this, we
did a survey of property owners in 2001 to
ascertain their concerns and priorities of the
special benefit district. Taking the results from
that report, it is interesting to see that after 20
years, many of the same problems and issues
remain in Downtown.
2001 Survey of Property Owners by New City
America:

In 2001, a survey was mailed to the property
owners within the Property Business
Improvement District boundaries at that time, as
well as property owners in a proposed expansion
area.

The primary purpose of the survey was to
ascertain the level of support and prioritization
of services desired by property owners in and
around Downtown El Cajon. The preliminary
results of the survey reveal great support for
renewal and continuation of the enhanced
services district commonly known as the
Property Business Improvement District.

To determine the initial level of support, property
owners were categorized by the lot size, building
size and linear frontage of each of their parcels.

These variables were used since they, not the
assessed value of the property, are used as the
basis for the deriving revenues from annual
assessments on real property. In 2001 the survey
responses included:
• 60.9% of the total lot size owners
responded to the survey.
• 49.4% of the total linear frontage
responded.
• 48% of the building’s square foot owners
responded.

The 2001 survey results yielded the following
results:
• 76.6% of the lot size owners supported
continuation of PBID funded enhanced
services.
• 78.1% of the linear frontage owners
supported continuation of the PBID.
• 64.8% of the building size owners
supported continuation.

The survey also asked a number of questions
regarding the current level of services and
re-prioritization of services for the renewed
district. The following is a summary of the
responses received and included in the Blue
Ribbon report:

Length of Ownership – 52% of the respondents
have owned their property for over 10 years, 16%
have owned it for over 25 years.

Type of Ownership – 75% of the respondents
were sole proprietors or family owned.

Image of Downtown – 80% of the respondents
believe that Downtown El Cajon has an image
problem.

Security:
• 65% believe that the area is safe, however
suffers a tremendous image problem as
an unsafe district.
• 68% believe that the existing PBID
security services have made an impact on
reducing criminal activity and restoring
order to Downtown.
• 83% believe the district still has a
homeless or transient problem.
• 55% believe that the homeless problem
has been reduced over the past 3 years.
• 63% support continued PBID funding of
enhanced services for Downtown.

Economic Conditions:
• 60% of the respondents have no
vacancies, however 21% have vacancies
of over 20%.
• Almost 80% charge square footage rents
of less than $1.00 per square foot.
• Over 40% reported that their rental rates
have stayed the same over the past 4
years (This was during a period of a
robust real estate market in other parts of
the County).
• Almost 76% continue to operate their
property as is, 13% plan to sell.

Beautification and Cleanliness:
• 64% of the respondents support PBID
funded expansion of a regular sidewalk
and gutter sweeping service.
• 50% support continuation and expansion
of the Downtown El Cajon street light
pole banner program.
• 70% support the planting of new,
non-invasive trees along the gateway and
main commercial corridors to beautify
the District.
• 93% believe that property owners should
continue to give input to all the major
projects as well as long range planning
decisions in this area.

The top four priorities listed in a multiple-choice
selection were as follows:
1) Public safety, providing of security,
dealing with homelessness.
2) Identification of and attraction of new
businesses.
3) Maintenance of the area includes daily
sidewalk sweeping, tree planting, and
maintenance, etc.
4) Marketing and promotion.

Management District Plan for 2001:

Those categories, costs and percentages using
the 2001 CDC Main Street organizational system
for Downtown El Cajon were as follows:
*Size of the district from 1996 to 2001 increased
by 50% under the New City America plan.

Additionally, 3 benefit zones were created to
ensure that there were proportional costs and
benefits to property owners.
**Not sure where the extra over 1 million square
feet in building square footage came from
between the 2001 plan and the 2016 plan.

Building to Lot size Ratio:

In 2001, the ratio of building square footage to
lot size was 922,934 to 5,939,837 or a ratio of .16
to 1. Normally a Downtown area will have a
minimum of a 1 to 1 ratio of building to lot size.

This ratio shows us that Downtown El Cajon had
to increase its building square footage sixfold to
reach that 1 to 1 ratio – thus there was a lot of
opportunity for new growth. The 2016
Management Plan lists over 1 million additional
building square footage over the 2001 plan. We
are not sure where that data came from. If we
believe the data in the 2016 plan than the ratio of
building to lot size would be:
• 1,978,138 / 5,969,729 equals a ratio .33 to

1. This is twice as high as the ratio we had
for the 2001 plan, but still way below
where the Downtown growth should be,
In the future, the Owners
Association/Management Corporation must
adhere to the property owner and City Council
approved Management District Plan.

Furthermore, it appears as there was an
approximate $15,000 shortfall in the collection
of assessments for 2022. There is around a 3%
delinquency in assessments ($545,666 vs
$560,000).

The management plan does not accommodate
this delinquency and it is only due to the carry
forward from 2022 to 2023 that the reduction in
revenues did not negatively impact the services
of the PBID.

PAGE 16
Category of Expense
(Per the 2016 Management
District Plan)
Economic Enhancements
(Business retention, Image and
Marketing, Parking Initiatives,
Leadership/policy)
Environmental Enhancements
(Security, maintenance,
beautification)
Management Services
PBID reserves
Total for FY 21-22
Amount Expended
(FY 21-22)
$271,723 – 50%
$175,032 – 32%
$98,911 – 18%
0 – 0%
$545,666 – 100%
Amount Allocated
(per the 2016 Management
District Plan)
$150,000 – 26.8%
$250,000 – 44.6%
$150,000 – 26.8%
$10,000 – 1.8%
$560,000
As mentioned in Part 2 of this report, each of the categories of services for the 2016 plan were articulated as follows, but again the actual budget for FY 2023 does not match the 2016 Management District Plan:

Homelessness continues in Downtown as in the other county Downtown districts IV. RECOMMENDATION TO EXPAND

THE BOARD
New City America strongly recommends that the
City Council consider a recommendation from
the Blue Ribbon Report of 2011 which called for:

There needs to be a developer, builders,
significant business leaders and most
importantly commercial real estate
specialists that can bring together the
information necessary to determine a
realistic vision and know how to implement it.
(page 15)
Having the three largest generators of traffic in
Downtown El Cajon (County Courthouse, Live
Nation, and the Courtyard by Marriott) added to
the Board open up opportunities for a stronger
PBID organization. Though they are not
property owners, they are incredibly important
to be included in the deliberations as part of the
Board and its committees. Live Nation especially
is critical to the growth and development of
Downtown as an arts and cultural district—as has
been mentioned consistently in the Economic
Development Plan for the City.

In addition, new developers in Downtown,
including the KB Homes and their successor
owner should be included in the Board and its
meetings since their impact on downtown with
new disposable income will be extremely
important to spur new residential development
in Downtown. As mentioned before, new
market rate residential development will create
the impetus for the future growth of Downtown
El Cajon and downtowns nationwide.

PAGE 17
at least to a 1 to 1 ratio of building to lot
size.

Please note also that the building square footage
costs, with the additional 1 million square feet in
building dropped from an annual rate of $0.125
per square foot in the 2001 plan to $0.0818 per
square foot in the 2016 plan, an annual building
assessment reduction of almost 33%.

Service Categories:

Let us now review the special benefit “categories
or bundles of services in each plan and their
percentage of allocation. Since the CDC in 2001
was using the Main Street model or
organizational structure, New City America was
asked to use that model to structure the special
benefit menu of services. Before we list this, we
did a survey of property owners in 2001 to
ascertain their concerns and priorities of the
special benefit district. Taking the results from
that report, it is interesting to see that after 20
years, many of the same problems and issues
remain in Downtown.
2001 Survey of Property Owners by New City
America:

In 2001, a survey was mailed to the property
owners within the Property Business
Improvement District boundaries at that time, as
well as property owners in a proposed expansion
area.

The primary purpose of the survey was to
ascertain the level of support and prioritization
of services desired by property owners in and
around Downtown El Cajon. The preliminary
results of the survey reveal great support for
renewal and continuation of the enhanced
services district commonly known as the
Property Business Improvement District.

To determine the initial level of support, property
owners were categorized by the lot size, building
size and linear frontage of each of their parcels.

These variables were used since they, not the
assessed value of the property, are used as the
basis for the deriving revenues from annual
assessments on real property. In 2001 the survey
responses included:
• 60.9% of the total lot size owners
responded to the survey.
• 49.4% of the total linear frontage
responded.
• 48% of the building’s square foot owners
responded.

The 2001 survey results yielded the following
results:
• 76.6% of the lot size owners supported
continuation of PBID funded enhanced
services.
• 78.1% of the linear frontage owners
supported continuation of the PBID.
• 64.8% of the building size owners
supported continuation.

The survey also asked a number of questions
regarding the current level of services and
re-prioritization of services for the renewed
district. The following is a summary of the
responses received and included in the Blue
Ribbon report:

Length of Ownership – 52% of the respondents
have owned their property for over 10 years, 16%
have owned it for over 25 years.

Type of Ownership – 75% of the respondents
were sole proprietors or family owned.

Image of Downtown – 80% of the respondents
believe that Downtown El Cajon has an image
problem.

Security:
• 65% believe that the area is safe, however
suffers a tremendous image problem as
an unsafe district.
• 68% believe that the existing PBID
security services have made an impact on
reducing criminal activity and restoring
order to Downtown.
• 83% believe the district still has a
homeless or transient problem.
• 55% believe that the homeless problem
has been reduced over the past 3 years.
• 63% support continued PBID funding of
enhanced services for Downtown.

Economic Conditions:
• 60% of the respondents have no
vacancies, however 21% have vacancies
of over 20%.
• Almost 80% charge square footage rents
of less than $1.00 per square foot.
• Over 40% reported that their rental rates
have stayed the same over the past 4
years (This was during a period of a
robust real estate market in other parts of
the County).
• Almost 76% continue to operate their
property as is, 13% plan to sell.

Beautification and Cleanliness:
• 64% of the respondents support PBID
funded expansion of a regular sidewalk
and gutter sweeping service.
• 50% support continuation and expansion
of the Downtown El Cajon street light
pole banner program.
• 70% support the planting of new,
non-invasive trees along the gateway and
main commercial corridors to beautify
the District.
• 93% believe that property owners should
continue to give input to all the major
projects as well as long range planning
decisions in this area.

The top four priorities listed in a multiple-choice
selection were as follows:
1) Public safety, providing of security,
dealing with homelessness.
2) Identification of and attraction of new
businesses.
3) Maintenance of the area includes daily
sidewalk sweeping, tree planting, and
maintenance, etc.
4) Marketing and promotion.

Management District Plan for 2001:

Those categories, costs and percentages using
the 2001 CDC Main Street organizational system
for Downtown El Cajon were as follows:
*Size of the district from 1996 to 2001 increased
by 50% under the New City America plan.

Additionally, 3 benefit zones were created to
ensure that there were proportional costs and
benefits to property owners.
**Not sure where the extra over 1 million square
feet in building square footage came from
between the 2001 plan and the 2016 plan.

Building to Lot size Ratio:

In 2001, the ratio of building square footage to
lot size was 922,934 to 5,939,837 or a ratio of .16
to 1. Normally a Downtown area will have a
minimum of a 1 to 1 ratio of building to lot size.

This ratio shows us that Downtown El Cajon had
to increase its building square footage sixfold to
reach that 1 to 1 ratio – thus there was a lot of
opportunity for new growth. The 2016
Management Plan lists over 1 million additional
building square footage over the 2001 plan. We
are not sure where that data came from. If we
believe the data in the 2016 plan than the ratio of
building to lot size would be:
• 1,978,138 / 5,969,729 equals a ratio .33 to

1. This is twice as high as the ratio we had
for the 2001 plan, but still way below
where the Downtown growth should be,

1. County Courthouse

2. Courtyard Marriott in Downtown

3. Magnolia Theatre
1 2
3 V. PROPOSED ORDINANCES FOR

CONSIDERATION
After its review, New City America also
recommends that the City Council consider
three new enabling ordinances to be considered
once they have been reviewed by the City
Manager’s Office and the City Attorney’s Office.

Their description and purpose are listed below:

PAGE 18
at least to a 1 to 1 ratio of building to lot
size.

Please note also that the building square footage
costs, with the additional 1 million square feet in
building dropped from an annual rate of $0.125
per square foot in the 2001 plan to $0.0818 per
square foot in the 2016 plan, an annual building
assessment reduction of almost 33%.

Service Categories:

Let us now review the special benefit “categories
or bundles of services in each plan and their
percentage of allocation. Since the CDC in 2001
was using the Main Street model or
organizational structure, New City America was
asked to use that model to structure the special
benefit menu of services. Before we list this, we
did a survey of property owners in 2001 to
ascertain their concerns and priorities of the
special benefit district. Taking the results from
that report, it is interesting to see that after 20
years, many of the same problems and issues
remain in Downtown.
2001 Survey of Property Owners by New City
America:

In 2001, a survey was mailed to the property
owners within the Property Business
Improvement District boundaries at that time, as
well as property owners in a proposed expansion
area.

The primary purpose of the survey was to
ascertain the level of support and prioritization
of services desired by property owners in and
around Downtown El Cajon. The preliminary
results of the survey reveal great support for
renewal and continuation of the enhanced
services district commonly known as the
Property Business Improvement District.

To determine the initial level of support, property
owners were categorized by the lot size, building
size and linear frontage of each of their parcels.

These variables were used since they, not the
assessed value of the property, are used as the
basis for the deriving revenues from annual
assessments on real property. In 2001 the survey
responses included:
• 60.9% of the total lot size owners
responded to the survey.
• 49.4% of the total linear frontage
responded.
• 48% of the building’s square foot owners
responded.

The 2001 survey results yielded the following
results:
• 76.6% of the lot size owners supported
continuation of PBID funded enhanced
services.
• 78.1% of the linear frontage owners
supported continuation of the PBID.
• 64.8% of the building size owners
supported continuation.

The survey also asked a number of questions
regarding the current level of services and
re-prioritization of services for the renewed
district. The following is a summary of the
responses received and included in the Blue
Ribbon report:

Length of Ownership – 52% of the respondents
have owned their property for over 10 years, 16%
have owned it for over 25 years.

Type of Ownership – 75% of the respondents
were sole proprietors or family owned.

Image of Downtown – 80% of the respondents
believe that Downtown El Cajon has an image
problem.

Security:
• 65% believe that the area is safe, however
suffers a tremendous image problem as
an unsafe district.
• 68% believe that the existing PBID
security services have made an impact on
reducing criminal activity and restoring
order to Downtown.
• 83% believe the district still has a
homeless or transient problem.
• 55% believe that the homeless problem
has been reduced over the past 3 years.
• 63% support continued PBID funding of
enhanced services for Downtown.

Economic Conditions:
• 60% of the respondents have no
vacancies, however 21% have vacancies
of over 20%.
• Almost 80% charge square footage rents
of less than $1.00 per square foot.
• Over 40% reported that their rental rates
have stayed the same over the past 4
years (This was during a period of a
robust real estate market in other parts of
the County).
• Almost 76% continue to operate their
property as is, 13% plan to sell.

Beautification and Cleanliness:
• 64% of the respondents support PBID
funded expansion of a regular sidewalk
and gutter sweeping service.
• 50% support continuation and expansion
of the Downtown El Cajon street light
pole banner program.
• 70% support the planting of new,
non-invasive trees along the gateway and
main commercial corridors to beautify
the District.
• 93% believe that property owners should
continue to give input to all the major
projects as well as long range planning
decisions in this area.

The top four priorities listed in a multiple-choice
selection were as follows:
1) Public safety, providing of security,
dealing with homelessness.
2) Identification of and attraction of new
businesses.
3) Maintenance of the area includes daily
sidewalk sweeping, tree planting, and
maintenance, etc.
4) Marketing and promotion.

Management District Plan for 2001:

Those categories, costs and percentages using
the 2001 CDC Main Street organizational system
for Downtown El Cajon were as follows:
*Size of the district from 1996 to 2001 increased
by 50% under the New City America plan.

Additionally, 3 benefit zones were created to
ensure that there were proportional costs and
benefits to property owners.
**Not sure where the extra over 1 million square
feet in building square footage came from
between the 2001 plan and the 2016 plan.

Building to Lot size Ratio:

In 2001, the ratio of building square footage to
lot size was 922,934 to 5,939,837 or a ratio of .16
to 1. Normally a Downtown area will have a
minimum of a 1 to 1 ratio of building to lot size.

This ratio shows us that Downtown El Cajon had
to increase its building square footage sixfold to
reach that 1 to 1 ratio – thus there was a lot of
opportunity for new growth. The 2016
Management Plan lists over 1 million additional
building square footage over the 2001 plan. We
are not sure where that data came from. If we
believe the data in the 2016 plan than the ratio of
building to lot size would be:
• 1,978,138 / 5,969,729 equals a ratio .33 to

1. This is twice as high as the ratio we had
for the 2001 plan, but still way below
where the Downtown growth should be,
Ordinance
Community Benefit District
Sidewalk Vending Ordinance
Busker Ordinance
Purpose
Use Charter City Authority to
create a new enabling
ordinance for any city-wide
property assessment districts
(See attachment 1)
Use the City’s authority to
create a new enabling
ordinance that manages and
regulates Sidewalk Vending,
allowable by State Legislation,
based upon the health and
safety considerations of such
activity in the public rights of
way (See Attachment 2)
Use the City’s authority to
regulate non-first amendment
entertainment in the
Downtown Public Rights of
Way to ensure civil interaction
(See attachment 3)
Recommended
Implementation and
Consideration
Consider adoption prior to the
renewal of the 2026 PBID.

Consider adoption as soon as
possible
Consider this sometime in
2024
VI. MAPS OF DOWNTOWN EL CAJON
As part of its review of Downtown El Cajon, New
City America has scoped and plotted various
maps to review the amenities provided by the
City of El Cajon in the public rights of way:
a. Trees,
b. Street lights / Bike racks, and
c. Trash receptacles.

As you can see from the attached maps, the
peripheral area of the district, particularly the
north and west sides, have no pedestrian lights,
trash cans nor trees. This is something the PBID
should consider funding since those property
owners are paying an assessment to the district.

PAGE 19
Notice the lack of trees on the east side and west side of the District ~
October I 2023
1-8
LEGEND
PAGE 20
Pedestrian lights are needed on the west side of the District for pedestrians walking between Downtown and the Trolley station
Downtown El Cajon Map
Pedestrian Liqhts & Bike Rock ------
October I 2023
LEGEND
PAGE 21
There are virtually no trash receptacles on the north, east, and west end of the District Downtown El Cajon
Trash Can Map I October 2023
., .,,
LEGEND
VII. BOARD/COMMITTEE

STRUCTURE/POLICY
To provide for greater governance and
management of the PBID, New City America
recommends modifications and additions to the
structure of boards, committees, and policies.

Below are sample policies to be considered.

PROPOSED POLICY – OWNERS ASSOCIATION

BOARD OF DIRECTORS COMMITTEE

STRUCTURE
Purpose of Policy:

It is proposed that the Owners Association
consider adopting the following structure of
Committees and Task Forces to facilitate delivery
of special benefit services funded by the Owners
Business Improvement District. An efficient,
easily understood structure for processing
information and ideas, resulting in
decision-making, is key to effectively utilizing
members of the Board, as well as non-Board
members.

The Owners Association Board will need to
select Chairs for the various Committees. The
President shall serve as the Chair of the
Executive Committee.

Requirement of Board Members:

Board members, as a condition of membership,
are expected to serve on at least one Committee
or Task Force of the Board.

Meeting Frequency:

Committees’ meeting schedules should be
flexible and not mechanical, meaning the
Committees should meet as often as necessary.

Function of Committees:

The primary function of the Committee is to
discuss in depth issues of relevance to the Board
and to implement the goals of the corporation
and the Owners Association BID. The
Committees and Task Forces will then make
written recommendations for Board
consideration. All the “brainstorming” or
discussion on topics should be held at the
Committee level, not at the Board meetings. It is
the role of the President of the Board to ensure
that discussions related to decisions or policies is
sent to Committees or Task Forces before
consideration by the Board. All Committees of
the Board shall be subject to the opening
meetings and records provisions of the Ralph M.

Brown Act.

Reports and Recommendation for Action:

All Committee meetings should have minutes
that clearly state who was present, which topics
were discussed and any recommendations
made to the Board of Directors. Staff should
submit these reports as part of the Board
packets.

PAGE 22
Proposed
Committee
Executive
Committee
Civil Sidewalks
Committee
Functions and Duties
Oversees staff and district administration and consulting contracts, corporate finances, insurance, grants, development of budget, Board agendas and meetings, correspondences, outreach, bylaws and Board policies, relations with the Mayor’s office, political reps and public agencies, Board elections, fundraising, etc. Oversees annual election of Board members. Consists of all of the officers of the corporation.

Monitors maintenance and security service provided by the Downtown PBID. The services related to this bundle of services includes cleaning, beautification, public space management, security, relations with ECPD, public works, development services, etc.

OWNERS ASSOCIATION /parenleft.caseDOWNTOWN EL CAJON/parenright.case

PROPOSED BOARD OF DIRECTORS COMMITTEE STRUCTURE
PAGE 23
Proposed
Committee
District Identity and
Placemaking (DIP)
Project Review
Parking and Mobility
Committee
Task Forces
Functions and Duties
Projects would include those that market and promote the District or promote positive aspects of the Downtown El Cajon. Those issues may include: branding of the district, public relations, newsletter, special events, website development and maintenance, banner program, streetscape issues including landscaping design, tree selection, street light standards, festival poles, holiday decorations, visual linkages, new public spaces projects, improvements to public spaces in the district, video kiosks, district walking maps, brochures, social media, pedestrian signage from the trolley station, twitter and Facebook management, etc.

Review of all new developments proposed for Downtown El Cajon.

Community Plan review, width of sidewalks, alcohol permits and outdoor dining encroachments, etc.

Discussion of parking management programs that could include timed parking, and parking meters.

Tentative task forces may include Homeless Mitigation Task Force, Bylaws Task Force, Hospitality Task Force
OWNERS ASSOCIATION /parenleft.caseDOWNTOWN EL CAJON/parenright.case PROPOSED BOARD OF DIRECTORS COMMITTEE STRUCTURE /hyphen.case CONTINUED 4) Create a “Hospitality Task Force” to
promote local restaurants, cafes. An
excellent way to consolidate the restaurant
industry in Downtown is to bring them into a
forum in which common problems can be
dealt with as well as come up with joint
marketing programs. This Task Force can be
led by staff, or an independent PR/Social
Media firm paid for by the PBID funds, under
the Environmental Enhancement part of the
budget.
5) Prioritize Art Alley as a functioning piece of
Downtown (web site shows last posting was
for Art Alley Cat Art Show in Sept. 2022).

Downtown has already established a number
of small physical venues for its Art
component. Art is an economic
development strategy. The Economic
Development Report for the City repeatedly
mentions that Downtown should be an arts
and culture experience. Artists must be
supported and regular art events in Art Alley
can begin to turn around the public
perception of Downtown. The great thing
about Art Alley is that it already exists as a
venue, but only needs to be programmed
and managed. Art has a phenomenal ability
to attract all different types of customers
from a large segment of the County. It would
also fill up hotel rooms and could possibly
allow for weekend in Downtown
complemented by a large, featured
performer at the Magnolia and overnight stay
at one of the local Downtown hotels.
6) Convert current Owners Association to a
501c3. Downtown is currently established as
a California mutual benefit corporation,
whose point is to serve the general public.

VIII. CONCLUSION AND

RECOMMENDATIONS
After conducting its analysis, New City America
makes the following twelve recommendations
for any organization operating the PBID. These
are recommendations that should be considered
as soon as possible.
1) Expand the Board to include traffic
generators (new developer(s), County, The
Magnolia, and Courtyard by Marriott) and
larger property owners or their agents on
the Board. This is perhaps the most critical
part of the restructuring of the Downtown
organization. The largest and most
successful traffic generators should clearly
be included on the Board. They will be able
to attract new capital and developers based
upon the larger property owners’ support of
the Downtown El Cajon revitalization efforts.

Investors are attracted to stable but
enlightened Downtown organizations.

Those property owners or businesses, at a
minimum, must include Live
Nation/Magnolia as well as the Marriott that
is directly west of City Hall. This would help
in that effort.
2) Work with key commercial real esta te
brokers to bring new restaurants to
Downtown currently. There are currently 18
sit-down restaurants and 6 Fast Food
restaurants. After at least 25 years of a
functioning BID, Downtown should have a
greater concentration of restaurants.

Restaurants drive customers to Downtown.

Commercial real estate brokers, particularly
ones tied to restaurants and food facilities are
key to revitalizing downtown El Cajon. The
success of any Downtown is based upon
successful and owner/occupied restaurants.

The goal should be to have approximately 30
successful restaurants which would help
attract new market rate housing
developments in and around Downtown.

Having one or more commercial real estate
brokers or agents on the Board will do a lot
to attract local restauranteurs who are
looking for second, third or fourth locations.

In addition, since there are no bars or late
night cafes in the core area of Downtown,
people leaving The Magnolia at night, or
staying at the Courtyard by Marriott, have
very few late night options after concerts. At
least one late night sit-down restaurants
should be located in the core area of
Downtown.
3) Create functioning and working Committee
system: We have added what we believe to
be a good standard Committee system. A
Board is only as good as its committees. The
Committees should be standing and meet as
needed; however, a functioning Executive
Committee is critical for not only the efficient
operation of the Corporation, but also
becomes a mechanism to recruit new Board
members based upon their Committee
experience. Furthermore, the
decision-making process is paramount to a
Board that seeks to expedite its ability to
make ideas become funded projects or
activities.

PAGE 24
501c6 non-profits can lobby and back
candidates or legislative initiatives. District
Management Corporations whose primary
charge is the redevelopment and
improvement of their respective business
district or downtowns, should consider
re-creating themselves as chartable
non-profit corporations or 501c3s. This
would allow the corporation to solicit grants
for specific projects and events from
Foundations or businesses who are looking
for something more than a business expense.

This strategy has been very successful in
Little Italy to pay for and manage its many
public spaces. The improvement to any
Downtown or core business district has
tremendous public benefit which, consistent
with IRS provisions of charitable
organizations, “lowers the burden of
government.” This is a critical component of
the future success of Downtown El Cajon
and could help fund many new initiatives
including cultural activities, educational
activities and public art.

7) Consider expansion down El Cajon Blvd.,
south on Magnolia, East on Main, and South
on El Cajon (see attached map showing
proposed expanded area). The impending
renewal of the PBID should look at
expanding to provide special benefit services
for many businesses up to the Trolley stop as
we as north and south on Johnson. In
addition consideration should be to expand
east on Main Street and maybe south on
Magnolia. Expansion running south on El
Cajon Blvd. should also be considered to
capture the new market rate housing that is
being built. Prioritization should be on
making Main Street up to the Trolley stop as
walkable as possible with consistent
treescape along the north and side of Main
Street up to Johnson. Additionally, the new
market rate housing development just south
of Main on El Cajon Blvd. should be
approached to be included in the renewed
district to create a greater downtown
footprint since many of those new residents
can become loyal customers to the retailers,
restaurants, services, and other businesses in
the core area.

8) Hire staff (either Exec Director or
contracted management) to run the
day-to-day operations of the PBID. The
Board does not have a key staff member
accountable for managing PBID operations.

Operating an organization without staff puts
a heavy and unfair burden on the Board
members who are volunteers. Whether it is
through an individual or through a company,
the PBID Board should seriously consider
using the $150,000 annually that is written in
the current PBID plan for Management. This
would allow consistency in the
implementation of Board decisions, recruit
new Board members and seek new revenues
to supplement the PBID’s annual budget and
services. The key staff member could be an
individual, company or property
management firm – but it must be done
soon.
9) Hire a professional cleaning and
landscaping company or do it in-house:

One thing that Downtown El Cajon needs is
far more landscaping. The Downtown streets
and sidewalks need far more tall deciduous
trees that would allow canopy shade in the
summer and light in the winter months. This
is particularly true in the current peripheral
areas heading westbound on Main to the
Trolley stop. A publicly funded Project that
aggressively plants fast growing deciduous
trees will change the image of Downtown El
Cajon.
10) Seek grants from County Supervisor for
special projects: Many similar districts in the
County are very successful attracting new
grants for both operational needs and special
projects from their respective County
Supervisors’ office. Though not consistently
given, special projects that are consistent
with the Supervisor’s annual goals could help
fund these projects and programs.
11) Begin program of annual seasonal displays:

El Cajon does have a great landscaping
canopy that provides its citizens seasonal
color through the neighborhoods.

Something Downtown can provide its
stakeholders and the general public displays
that accentuate each season. The corners of
the Downtown streets will provide an
excellent venue for Spring, Summer, Fall and
Winter displays. There is a lot that can be
done with art and seasonal displays. Seasonal
displays can also highlight Downtown
through a colorful and thoughtful banner
program.
12) East County Market Nights: The proposed
East County Market Nights in Downtown is
an excellent idea that should be pursued.

Similar evening markets have been very
successful in both Los Angeles, San
Francisco. Locally, Oceanside operates a
successful night market. This is something
that can be pursued, particularly with
underwriters who want to be associated with
entrepreneurial events in Downtown El
Cajon.

It is clear that the City is and has always been a
strong advocate and supporter of Downtown,
both through its annual assessments paid into
the PBID as well as the many capital
improvements that were done, particularly
through the former Redevelopment Agency.

New City America also makes six
recommendations for the City of El Cajon to
consider in the upcoming year.
1) Market Rate Housing Incentives: Create
incentives for expediting new Market Rate
development of Mixed-Use housing
developments in and around Downtown.

Downtown market rate housing will do more
than any other initiative to revitalize
Downtown El Cajon. The new residents
become a new reservoir of disposable
income in a walkable environment. The City
Council appears to be very pro-development
and there is no better place to realize such
new development in the City than Main
Street, Magnolia Street and El Cajon Blvd.
2) Adopt the attached CBD Ordinance: As a
charter city, El Cajon should do what almost
25 other charter cities have done in the state
and adopt a new enabling ordinance that
allows for a new property assessment called
a Community Benefit District or
Neighborhood Improvement District. We
have included a sample ordinance in
Attachment 1 that gives an example on how
to amend the municipal code to provide
such “self-help” programs that can be
implemented anywhere in the City.
3) Adopt Sidewalk Vending ordinance: As
surrounding cities in the County adopt
similar vending ordinances based upon
health and safety provisions, the City of El
Cajon should adopt such an ordinance prior
to it becoming an issue on Main and
Magnolia. The ordinance would provide and
allow for such vending, but with conditions
including insurance, safe passage and
compliance with all City and County health
regulations. (See attachments)
4) Adopt Busker Ordinance: Buskers are
individuals who believe that their singing
and/or playing of amplified music are a
public benefit. That may be true in some
cases but clearly not in all cases. Attached
please find Attachment 3 which proposes a
new busker ordinance that would manage,
not stop, individual buskers playing music in
Downtown with no restrictions.
5) Create standards for redevelopment and
wider sidewalks on the west side: The
walkability of Downtown is one of its key
assets. All new development from El Cajon
Blvd westward to the Trolley stop, should
require minimum 12-foot sidewalks which
would include street trees, pedestrian lights
at the frequency of one every 100 feet as well
as trash receptacles (standard) which at a
minimum should be place at all four corners
of any intersection. This will improve the
walkability of those walking from the Trolley
stop to the core of Downtown.
6) Fund replacement of permanent seating in
the park, replace with movable chairs: The
park at Main Street, across from City Hall,
should be used as a Town Center with
flexibility in its use. The current permanent
benches should be replaced with movable
tables, chairs, and umbrellas. These features
will allow the Downtown PBID to brand itself
on the chairs and umbrellas and allow for
much more comfortable and usable street
furniture. More importantly they can be
removed and replaced as needed to allow for
large gatherings, not bifurcated by
permanent features
Great outdoor dining example in Downtown
4) Create a “Hospitality Task Force” to
promote local restaurants, cafes. An
excellent way to consolidate the restaurant
industry in Downtown is to bring them into a
forum in which common problems can be
dealt with as well as come up with joint
marketing programs. This Task Force can be
led by staff, or an independent PR/Social
Media firm paid for by the PBID funds, under
the Environmental Enhancement part of the
budget.
5) Prioritize Art Alley as a functioning piece of
Downtown (web site shows last posting was
for Art Alley Cat Art Show in Sept. 2022).

Downtown has already established a number
of small physical venues for its Art
component. Art is an economic
development strategy. The Economic
Development Report for the City repeatedly
mentions that Downtown should be an arts
and culture experience. Artists must be
supported and regular art events in Art Alley
can begin to turn around the public
perception of Downtown. The great thing
about Art Alley is that it already exists as a
venue, but only needs to be programmed
and managed. Art has a phenomenal ability
to attract all different types of customers
from a large segment of the County. It would
also fill up hotel rooms and could possibly
allow for weekend in Downtown
complemented by a large, featured
performer at the Magnolia and overnight stay
at one of the local Downtown hotels.
6) Convert current Owners Association to a
501c3. Downtown is currently established as
a California mutual benefit corporation,
whose point is to serve the general public.

PAGE 25
501c6 non-profits can lobby and back
candidates or legislative initiatives. District
Management Corporations whose primary
charge is the redevelopment and
improvement of their respective business
district or downtowns, should consider
re-creating themselves as chartable
non-profit corporations or 501c3s. This
would allow the corporation to solicit grants
for specific projects and events from
Foundations or businesses who are looking
for something more than a business expense.

This strategy has been very successful in
Little Italy to pay for and manage its many
public spaces. The improvement to any
Downtown or core business district has
tremendous public benefit which, consistent
with IRS provisions of charitable
organizations, “lowers the burden of
government.” This is a critical component of
the future success of Downtown El Cajon
and could help fund many new initiatives
including cultural activities, educational
activities and public art.

7) Consider expansion down El Cajon Blvd.,
south on Magnolia, East on Main, and South
on El Cajon (see attached map showing
proposed expanded area). The impending
renewal of the PBID should look at
expanding to provide special benefit services
for many businesses up to the Trolley stop as
we as north and south on Johnson. In
addition consideration should be to expand
east on Main Street and maybe south on
Magnolia. Expansion running south on El
Cajon Blvd. should also be considered to
capture the new market rate housing that is
being built. Prioritization should be on
making Main Street up to the Trolley stop as
walkable as possible with consistent
treescape along the north and side of Main
Street up to Johnson. Additionally, the new
market rate housing development just south
of Main on El Cajon Blvd. should be
approached to be included in the renewed
district to create a greater downtown
footprint since many of those new residents
can become loyal customers to the retailers,
restaurants, services, and other businesses in
the core area.

8) Hire staff (either Exec Director or
contracted management) to run the
day-to-day operations of the PBID. The
Board does not have a key staff member
accountable for managing PBID operations.

Operating an organization without staff puts
a heavy and unfair burden on the Board
members who are volunteers. Whether it is
through an individual or through a company,
the PBID Board should seriously consider
using the $150,000 annually that is written in
the current PBID plan for Management. This
would allow consistency in the
implementation of Board decisions, recruit
new Board members and seek new revenues
to supplement the PBID’s annual budget and
services. The key staff member could be an
individual, company or property
management firm – but it must be done
soon.
9) Hire a professional cleaning and
landscaping company or do it in-house:

One thing that Downtown El Cajon needs is
far more landscaping. The Downtown streets
and sidewalks need far more tall deciduous
trees that would allow canopy shade in the
summer and light in the winter months. This
is particularly true in the current peripheral
areas heading westbound on Main to the
Trolley stop. A publicly funded Project that
aggressively plants fast growing deciduous
trees will change the image of Downtown El
Cajon.
10) Seek grants from County Supervisor for
special projects: Many similar districts in the
County are very successful attracting new
grants for both operational needs and special
projects from their respective County
Supervisors’ office. Though not consistently
given, special projects that are consistent
with the Supervisor’s annual goals could help
fund these projects and programs.
11) Begin program of annual seasonal displays:

El Cajon does have a great landscaping
canopy that provides its citizens seasonal
color through the neighborhoods.

Something Downtown can provide its
stakeholders and the general public displays
that accentuate each season. The corners of
the Downtown streets will provide an
excellent venue for Spring, Summer, Fall and
Winter displays. There is a lot that can be
done with art and seasonal displays. Seasonal
displays can also highlight Downtown
through a colorful and thoughtful banner
program.
12) East County Market Nights: The proposed
East County Market Nights in Downtown is
an excellent idea that should be pursued.

Similar evening markets have been very
successful in both Los Angeles, San
Francisco. Locally, Oceanside operates a
successful night market. This is something
that can be pursued, particularly with
underwriters who want to be associated with
entrepreneurial events in Downtown El
Cajon.

It is clear that the City is and has always been a
strong advocate and supporter of Downtown,
both through its annual assessments paid into
the PBID as well as the many capital
improvements that were done, particularly
through the former Redevelopment Agency.

New City America also makes six
recommendations for the City of El Cajon to
consider in the upcoming year.
1) Market Rate Housing Incentives: Create
incentives for expediting new Market Rate
development of Mixed-Use housing
developments in and around Downtown.

Downtown market rate housing will do more
than any other initiative to revitalize
Downtown El Cajon. The new residents
become a new reservoir of disposable
income in a walkable environment. The City
Council appears to be very pro-development
and there is no better place to realize such
new development in the City than Main
Street, Magnolia Street and El Cajon Blvd.
2) Adopt the attached CBD Ordinance: As a
charter city, El Cajon should do what almost
25 other charter cities have done in the state
and adopt a new enabling ordinance that
allows for a new property assessment called
a Community Benefit District or
Neighborhood Improvement District. We
have included a sample ordinance in
Attachment 1 that gives an example on how
to amend the municipal code to provide
such “self-help” programs that can be
implemented anywhere in the City.
3) Adopt Sidewalk Vending ordinance: As
surrounding cities in the County adopt
similar vending ordinances based upon
health and safety provisions, the City of El
Cajon should adopt such an ordinance prior
to it becoming an issue on Main and
Magnolia. The ordinance would provide and
allow for such vending, but with conditions
including insurance, safe passage and
compliance with all City and County health
regulations. (See attachments)
4) Adopt Busker Ordinance: Buskers are
individuals who believe that their singing
and/or playing of amplified music are a
public benefit. That may be true in some
cases but clearly not in all cases. Attached
please find Attachment 3 which proposes a
new busker ordinance that would manage,
not stop, individual buskers playing music in
Downtown with no restrictions.
5) Create standards for redevelopment and
wider sidewalks on the west side: The
walkability of Downtown is one of its key
assets. All new development from El Cajon
Blvd westward to the Trolley stop, should
require minimum 12-foot sidewalks which
would include street trees, pedestrian lights
at the frequency of one every 100 feet as well
as trash receptacles (standard) which at a
minimum should be place at all four corners
of any intersection. This will improve the
walkability of those walking from the Trolley
stop to the core of Downtown.
6) Fund replacement of permanent seating in
the park, replace with movable chairs: The
park at Main Street, across from City Hall,
should be used as a Town Center with
flexibility in its use. The current permanent
benches should be replaced with movable
tables, chairs, and umbrellas. These features
will allow the Downtown PBID to brand itself
on the chairs and umbrellas and allow for
much more comfortable and usable street
furniture. More importantly they can be
removed and replaced as needed to allow for
large gatherings, not bifurcated by
permanent features
Por Favor, a successful local chain, and more attractive outdoor dining 4) Create a “Hospitality Task Force” to
promote local restaurants, cafes. An
excellent way to consolidate the restaurant
industry in Downtown is to bring them into a
forum in which common problems can be
dealt with as well as come up with joint
marketing programs. This Task Force can be
led by staff, or an independent PR/Social
Media firm paid for by the PBID funds, under
the Environmental Enhancement part of the
budget.
5) Prioritize Art Alley as a functioning piece of
Downtown (web site shows last posting was
for Art Alley Cat Art Show in Sept. 2022).

Downtown has already established a number
of small physical venues for its Art
component. Art is an economic
development strategy. The Economic
Development Report for the City repeatedly
mentions that Downtown should be an arts
and culture experience. Artists must be
supported and regular art events in Art Alley
can begin to turn around the public
perception of Downtown. The great thing
about Art Alley is that it already exists as a
venue, but only needs to be programmed
and managed. Art has a phenomenal ability
to attract all different types of customers
from a large segment of the County. It would
also fill up hotel rooms and could possibly
allow for weekend in Downtown
complemented by a large, featured
performer at the Magnolia and overnight stay
at one of the local Downtown hotels.
6) Convert current Owners Association to a
501c3. Downtown is currently established as
a California mutual benefit corporation,
whose point is to serve the general public.
501c6 non-profits can lobby and back
candidates or legislative initiatives. District
Management Corporations whose primary
charge is the redevelopment and
improvement of their respective business
district or downtowns, should consider
re-creating themselves as chartable
non-profit corporations or 501c3s. This
would allow the corporation to solicit grants
for specific projects and events from
Foundations or businesses who are looking
for something more than a business expense.

This strategy has been very successful in
Little Italy to pay for and manage its many
public spaces. The improvement to any
Downtown or core business district has
tremendous public benefit which, consistent
with IRS provisions of charitable
organizations, “lowers the burden of
government.” This is a critical component of
the future success of Downtown El Cajon
and could help fund many new initiatives
including cultural activities, educational
activities and public art.

7) Consider expansion down El Cajon Blvd.,
south on Magnolia, East on Main, and South
on El Cajon (see attached map showing
proposed expanded area). The impending
renewal of the PBID should look at
expanding to provide special benefit services
for many businesses up to the Trolley stop as
we as north and south on Johnson. In
addition consideration should be to expand
east on Main Street and maybe south on
Magnolia. Expansion running south on El
Cajon Blvd. should also be considered to
capture the new market rate housing that is
being built. Prioritization should be on
making Main Street up to the Trolley stop as
walkable as possible with consistent
treescape along the north and side of Main
Street up to Johnson. Additionally, the new
market rate housing development just south
of Main on El Cajon Blvd. should be
approached to be included in the renewed
district to create a greater downtown
footprint since many of those new residents
can become loyal customers to the retailers,
restaurants, services, and other businesses in
the core area.

8) Hire staff (either Exec Director or
contracted management) to run the
day-to-day operations of the PBID. The
Board does not have a key staff member
accountable for managing PBID operations.

Operating an organization without staff puts
a heavy and unfair burden on the Board
members who are volunteers. Whether it is
through an individual or through a company,
the PBID Board should seriously consider
using the $150,000 annually that is written in
the current PBID plan for Management. This
would allow consistency in the
implementation of Board decisions, recruit
new Board members and seek new revenues
to supplement the PBID’s annual budget and
services. The key staff member could be an
individual, company or property
management firm – but it must be done
soon.
9) Hire a professional cleaning and
landscaping company or do it in-house:

One thing that Downtown El Cajon needs is
PAGE 26
far more landscaping. The Downtown streets
and sidewalks need far more tall deciduous
trees that would allow canopy shade in the
summer and light in the winter months. This
is particularly true in the current peripheral
areas heading westbound on Main to the
Trolley stop. A publicly funded Project that
aggressively plants fast growing deciduous
trees will change the image of Downtown El
Cajon.
10) Seek grants from County Supervisor for
special projects: Many similar districts in the
County are very successful attracting new
grants for both operational needs and special
projects from their respective County
Supervisors’ office. Though not consistently
given, special projects that are consistent
with the Supervisor’s annual goals could help
fund these projects and programs.
11) Begin program of annual seasonal displays:

El Cajon does have a great landscaping
canopy that provides its citizens seasonal
color through the neighborhoods.

Something Downtown can provide its
stakeholders and the general public displays
that accentuate each season. The corners of
the Downtown streets will provide an
excellent venue for Spring, Summer, Fall and
Winter displays. There is a lot that can be
done with art and seasonal displays. Seasonal
displays can also highlight Downtown
through a colorful and thoughtful banner
program.
12) East County Market Nights: The proposed
East County Market Nights in Downtown is
an excellent idea that should be pursued.

Similar evening markets have been very
successful in both Los Angeles, San
Francisco. Locally, Oceanside operates a
successful night market. This is something
that can be pursued, particularly with
underwriters who want to be associated with
entrepreneurial events in Downtown El
Cajon.

It is clear that the City is and has always been a
strong advocate and supporter of Downtown,
both through its annual assessments paid into
the PBID as well as the many capital
improvements that were done, particularly
through the former Redevelopment Agency.

New City America also makes six
recommendations for the City of El Cajon to
consider in the upcoming year.
1) Market Rate Housing Incentives: Create
incentives for expediting new Market Rate
development of Mixed-Use housing
developments in and around Downtown.

Downtown market rate housing will do more
than any other initiative to revitalize
Downtown El Cajon. The new residents
become a new reservoir of disposable
income in a walkable environment. The City
Council appears to be very pro-development
and there is no better place to realize such
new development in the City than Main
Street, Magnolia Street and El Cajon Blvd.
2) Adopt the attached CBD Ordinance: As a
charter city, El Cajon should do what almost
25 other charter cities have done in the state
and adopt a new enabling ordinance that
allows for a new property assessment called
a Community Benefit District or
Neighborhood Improvement District. We
have included a sample ordinance in
Attachment 1 that gives an example on how
to amend the municipal code to provide
such “self-help” programs that can be
implemented anywhere in the City.
3) Adopt Sidewalk Vending ordinance: As
surrounding cities in the County adopt
similar vending ordinances based upon
health and safety provisions, the City of El
Cajon should adopt such an ordinance prior
to it becoming an issue on Main and
Magnolia. The ordinance would provide and
allow for such vending, but with conditions
including insurance, safe passage and
compliance with all City and County health
regulations. (See attachments)
4) Adopt Busker Ordinance: Buskers are
individuals who believe that their singing
and/or playing of amplified music are a
public benefit. That may be true in some
cases but clearly not in all cases. Attached
please find Attachment 3 which proposes a
new busker ordinance that would manage,
not stop, individual buskers playing music in
Downtown with no restrictions.
5) Create standards for redevelopment and
wider sidewalks on the west side: The
walkability of Downtown is one of its key
assets. All new development from El Cajon
Blvd westward to the Trolley stop, should
require minimum 12-foot sidewalks which
would include street trees, pedestrian lights
at the frequency of one every 100 feet as well
as trash receptacles (standard) which at a
minimum should be place at all four corners
of any intersection. This will improve the
walkability of those walking from the Trolley
stop to the core of Downtown.
6) Fund replacement of permanent seating in
the park, replace with movable chairs: The
park at Main Street, across from City Hall,
should be used as a Town Center with
flexibility in its use. The current permanent
benches should be replaced with movable
tables, chairs, and umbrellas. These features
will allow the Downtown PBID to brand itself
on the chairs and umbrellas and allow for
much more comfortable and usable street
furniture. More importantly they can be
removed and replaced as needed to allow for
large gatherings, not bifurcated by
permanent features
4) Create a “Hospitality Task Force” to
promote local restaurants, cafes. An
excellent way to consolidate the restaurant
industry in Downtown is to bring them into a
forum in which common problems can be
dealt with as well as come up with joint
marketing programs. This Task Force can be
led by staff, or an independent PR/Social
Media firm paid for by the PBID funds, under
the Environmental Enhancement part of the
budget.
5) Prioritize Art Alley as a functioning piece of
Downtown (web site shows last posting was
for Art Alley Cat Art Show in Sept. 2022).

Downtown has already established a number
of small physical venues for its Art
component. Art is an economic
development strategy. The Economic
Development Report for the City repeatedly
mentions that Downtown should be an arts
and culture experience. Artists must be
supported and regular art events in Art Alley
can begin to turn around the public
perception of Downtown. The great thing
about Art Alley is that it already exists as a
venue, but only needs to be programmed
and managed. Art has a phenomenal ability
to attract all different types of customers
from a large segment of the County. It would
also fill up hotel rooms and could possibly
allow for weekend in Downtown
complemented by a large, featured
performer at the Magnolia and overnight stay
at one of the local Downtown hotels.
6) Convert current Owners Association to a
501c3. Downtown is currently established as
a California mutual benefit corporation,
whose point is to serve the general public.
501c6 non-profits can lobby and back
candidates or legislative initiatives. District
Management Corporations whose primary
charge is the redevelopment and
improvement of their respective business
district or downtowns, should consider
re-creating themselves as chartable
non-profit corporations or 501c3s. This
would allow the corporation to solicit grants
for specific projects and events from
Foundations or businesses who are looking
for something more than a business expense.

This strategy has been very successful in
Little Italy to pay for and manage its many
public spaces. The improvement to any
Downtown or core business district has
tremendous public benefit which, consistent
with IRS provisions of charitable
organizations, “lowers the burden of
government.” This is a critical component of
the future success of Downtown El Cajon
and could help fund many new initiatives
including cultural activities, educational
activities and public art.

7) Consider expansion down El Cajon Blvd.,
south on Magnolia, East on Main, and South
on El Cajon (see attached map showing
proposed expanded area). The impending
renewal of the PBID should look at
expanding to provide special benefit services
for many businesses up to the Trolley stop as
we as north and south on Johnson. In
addition consideration should be to expand
east on Main Street and maybe south on
Magnolia. Expansion running south on El
Cajon Blvd. should also be considered to
capture the new market rate housing that is
being built. Prioritization should be on
making Main Street up to the Trolley stop as
walkable as possible with consistent
treescape along the north and side of Main
Street up to Johnson. Additionally, the new
market rate housing development just south
of Main on El Cajon Blvd. should be
approached to be included in the renewed
district to create a greater downtown
footprint since many of those new residents
can become loyal customers to the retailers,
restaurants, services, and other businesses in
the core area.

8) Hire staff (either Exec Director or
contracted management) to run the
day-to-day operations of the PBID. The
Board does not have a key staff member
accountable for managing PBID operations.

Operating an organization without staff puts
a heavy and unfair burden on the Board
members who are volunteers. Whether it is
through an individual or through a company,
the PBID Board should seriously consider
using the $150,000 annually that is written in
the current PBID plan for Management. This
would allow consistency in the
implementation of Board decisions, recruit
new Board members and seek new revenues
to supplement the PBID’s annual budget and
services. The key staff member could be an
individual, company or property
management firm – but it must be done
soon.
9) Hire a professional cleaning and
landscaping company or do it in-house:

One thing that Downtown El Cajon needs is
far more landscaping. The Downtown streets
and sidewalks need far more tall deciduous
trees that would allow canopy shade in the
summer and light in the winter months. This
is particularly true in the current peripheral
areas heading westbound on Main to the
Trolley stop. A publicly funded Project that
aggressively plants fast growing deciduous
trees will change the image of Downtown El
Cajon.
10) Seek grants from County Supervisor for
special projects: Many similar districts in the
County are very successful attracting new
grants for both operational needs and special
projects from their respective County
Supervisors’ office. Though not consistently
given, special projects that are consistent
with the Supervisor’s annual goals could help
fund these projects and programs.
11) Begin program of annual seasonal displays:

El Cajon does have a great landscaping
canopy that provides its citizens seasonal
color through the neighborhoods.

Something Downtown can provide its
stakeholders and the general public displays
that accentuate each season. The corners of
the Downtown streets will provide an
excellent venue for Spring, Summer, Fall and
Winter displays. There is a lot that can be
done with art and seasonal displays. Seasonal
displays can also highlight Downtown
through a colorful and thoughtful banner
program.
12) East County Market Nights: The proposed
East County Market Nights in Downtown is
an excellent idea that should be pursued.

Similar evening markets have been very
successful in both Los Angeles, San
Francisco. Locally, Oceanside operates a
successful night market. This is something
that can be pursued, particularly with
underwriters who want to be associated with
entrepreneurial events in Downtown El
Cajon.

It is clear that the City is and has always been a
strong advocate and supporter of Downtown,
both through its annual assessments paid into
the PBID as well as the many capital
improvements that were done, particularly
through the former Redevelopment Agency.

New City America also makes six
recommendations for the City of El Cajon to
consider in the upcoming year.
1) Market Rate Housing Incentives: Create
incentives for expediting new Market Rate
development of Mixed-Use housing
developments in and around Downtown.

Downtown market rate housing will do more
than any other initiative to revitalize
Downtown El Cajon. The new residents
become a new reservoir of disposable
income in a walkable environment. The City
Council appears to be very pro-development
and there is no better place to realize such
new development in the City than Main
Street, Magnolia Street and El Cajon Blvd.
2) Adopt the attached CBD Ordinance: As a
charter city, El Cajon should do what almost
25 other charter cities have done in the state
and adopt a new enabling ordinance that
allows for a new property assessment called
a Community Benefit District or
Neighborhood Improvement District. We
have included a sample ordinance in
Attachment 1 that gives an example on how
to amend the municipal code to provide
such “self-help” programs that can be
implemented anywhere in the City.

PAGE 27
3) Adopt Sidewalk Vending ordinance: As
surrounding cities in the County adopt
similar vending ordinances based upon
health and safety provisions, the City of El
Cajon should adopt such an ordinance prior
to it becoming an issue on Main and
Magnolia. The ordinance would provide and
allow for such vending, but with conditions
including insurance, safe passage and
compliance with all City and County health
regulations. (See attachments)
4) Adopt Busker Ordinance: Buskers are
individuals who believe that their singing
and/or playing of amplified music are a
public benefit. That may be true in some
cases but clearly not in all cases. Attached
please find Attachment 3 which proposes a
new busker ordinance that would manage,
not stop, individual buskers playing music in
Downtown with no restrictions.
5) Create standards for redevelopment and
wider sidewalks on the west side: The
walkability of Downtown is one of its key
assets. All new development from El Cajon
Blvd westward to the Trolley stop, should
require minimum 12-foot sidewalks which
would include street trees, pedestrian lights
at the frequency of one every 100 feet as well
as trash receptacles (standard) which at a
minimum should be place at all four corners
of any intersection. This will improve the
walkability of those walking from the Trolley
stop to the core of Downtown.
6) Fund replacement of permanent seating in
the park, replace with movable chairs: The
park at Main Street, across from City Hall,
should be used as a Town Center with
flexibility in its use. The current permanent
benches should be replaced with movable
tables, chairs, and umbrellas. These features
will allow the Downtown PBID to brand itself
on the chairs and umbrellas and allow for
much more comfortable and usable street
furniture. More importantly they can be
removed and replaced as needed to allow for
large gatherings, not bifurcated by
permanent features
4) Create a “Hospitality Task Force” to
promote local restaurants, cafes. An
excellent way to consolidate the restaurant
industry in Downtown is to bring them into a
forum in which common problems can be
dealt with as well as come up with joint
marketing programs. This Task Force can be
led by staff, or an independent PR/Social
Media firm paid for by the PBID funds, under
the Environmental Enhancement part of the
budget.
5) Prioritize Art Alley as a functioning piece of
Downtown (web site shows last posting was
for Art Alley Cat Art Show in Sept. 2022).

Downtown has already established a number
of small physical venues for its Art
component. Art is an economic
development strategy. The Economic
Development Report for the City repeatedly
mentions that Downtown should be an arts
and culture experience. Artists must be
supported and regular art events in Art Alley
can begin to turn around the public
perception of Downtown. The great thing
about Art Alley is that it already exists as a
venue, but only needs to be programmed
and managed. Art has a phenomenal ability
to attract all different types of customers
from a large segment of the County. It would
also fill up hotel rooms and could possibly
allow for weekend in Downtown
complemented by a large, featured
performer at the Magnolia and overnight stay
at one of the local Downtown hotels.
6) Convert current Owners Association to a
501c3. Downtown is currently established as
a California mutual benefit corporation,
whose point is to serve the general public.
501c6 non-profits can lobby and back
candidates or legislative initiatives. District
Management Corporations whose primary
charge is the redevelopment and
improvement of their respective business
district or downtowns, should consider
re-creating themselves as chartable
non-profit corporations or 501c3s. This
would allow the corporation to solicit grants
for specific projects and events from
Foundations or businesses who are looking
for something more than a business expense.

This strategy has been very successful in
Little Italy to pay for and manage its many
public spaces. The improvement to any
Downtown or core business district has
tremendous public benefit which, consistent
with IRS provisions of charitable
organizations, “lowers the burden of
government.” This is a critical component of
the future success of Downtown El Cajon
and could help fund many new initiatives
including cultural activities, educational
activities and public art.

7) Consider expansion down El Cajon Blvd.,
south on Magnolia, East on Main, and South
on El Cajon (see attached map showing
proposed expanded area). The impending
renewal of the PBID should look at
expanding to provide special benefit services
for many businesses up to the Trolley stop as
we as north and south on Johnson. In
addition consideration should be to expand
east on Main Street and maybe south on
Magnolia. Expansion running south on El
Cajon Blvd. should also be considered to
capture the new market rate housing that is
being built. Prioritization should be on
making Main Street up to the Trolley stop as
walkable as possible with consistent
treescape along the north and side of Main
Street up to Johnson. Additionally, the new
market rate housing development just south
of Main on El Cajon Blvd. should be
approached to be included in the renewed
district to create a greater downtown
footprint since many of those new residents
can become loyal customers to the retailers,
restaurants, services, and other businesses in
the core area.

8) Hire staff (either Exec Director or
contracted management) to run the
day-to-day operations of the PBID. The
Board does not have a key staff member
accountable for managing PBID operations.

Operating an organization without staff puts
a heavy and unfair burden on the Board
members who are volunteers. Whether it is
through an individual or through a company,
the PBID Board should seriously consider
using the $150,000 annually that is written in
the current PBID plan for Management. This
would allow consistency in the
implementation of Board decisions, recruit
new Board members and seek new revenues
to supplement the PBID’s annual budget and
services. The key staff member could be an
individual, company or property
management firm – but it must be done
soon.
9) Hire a professional cleaning and
landscaping company or do it in-house:

One thing that Downtown El Cajon needs is
far more landscaping. The Downtown streets
and sidewalks need far more tall deciduous
trees that would allow canopy shade in the
summer and light in the winter months. This
is particularly true in the current peripheral
areas heading westbound on Main to the
Trolley stop. A publicly funded Project that
aggressively plants fast growing deciduous
trees will change the image of Downtown El
Cajon.
10) Seek grants from County Supervisor for
special projects: Many similar districts in the
County are very successful attracting new
grants for both operational needs and special
projects from their respective County
Supervisors’ office. Though not consistently
given, special projects that are consistent
with the Supervisor’s annual goals could help
fund these projects and programs.
11) Begin program of annual seasonal displays:

El Cajon does have a great landscaping
canopy that provides its citizens seasonal
color through the neighborhoods.

Something Downtown can provide its
stakeholders and the general public displays
that accentuate each season. The corners of
the Downtown streets will provide an
excellent venue for Spring, Summer, Fall and
Winter displays. There is a lot that can be
done with art and seasonal displays. Seasonal
displays can also highlight Downtown
through a colorful and thoughtful banner
program.
12) East County Market Nights: The proposed
East County Market Nights in Downtown is
an excellent idea that should be pursued.

Similar evening markets have been very
successful in both Los Angeles, San
Francisco. Locally, Oceanside operates a
successful night market. This is something
that can be pursued, particularly with
underwriters who want to be associated with
entrepreneurial events in Downtown El
Cajon.

It is clear that the City is and has always been a
strong advocate and supporter of Downtown,
both through its annual assessments paid into
the PBID as well as the many capital
improvements that were done, particularly
through the former Redevelopment Agency.

New City America also makes six
recommendations for the City of El Cajon to
consider in the upcoming year.
1) Market Rate Housing Incentives: Create
incentives for expediting new Market Rate
development of Mixed-Use housing
developments in and around Downtown.

Downtown market rate housing will do more
than any other initiative to revitalize
Downtown El Cajon. The new residents
become a new reservoir of disposable
income in a walkable environment. The City
Council appears to be very pro-development
and there is no better place to realize such
new development in the City than Main
Street, Magnolia Street and El Cajon Blvd.
2) Adopt the attached CBD Ordinance: As a
charter city, El Cajon should do what almost
25 other charter cities have done in the state
and adopt a new enabling ordinance that
allows for a new property assessment called
a Community Benefit District or
Neighborhood Improvement District. We
have included a sample ordinance in
Attachment 1 that gives an example on how
to amend the municipal code to provide
such “self-help” programs that can be
implemented anywhere in the City.
3) Adopt Sidewalk Vending ordinance: As
surrounding cities in the County adopt
similar vending ordinances based upon
health and safety provisions, the City of El
Cajon should adopt such an ordinance prior
to it becoming an issue on Main and
Magnolia. The ordinance would provide and
allow for such vending, but with conditions
including insurance, safe passage and
compliance with all City and County health
regulations. (See attachments)
4) Adopt Busker Ordinance: Buskers are
individuals who believe that their singing
and/or playing of amplified music are a
public benefit. That may be true in some
cases but clearly not in all cases. Attached
please find Attachment 3 which proposes a
new busker ordinance that would manage,
not stop, individual buskers playing music in
Downtown with no restrictions.
5) Create standards for redevelopment and
wider sidewalks on the west side: The
walkability of Downtown is one of its key
assets. All new development from El Cajon
Blvd westward to the Trolley stop, should
require minimum 12-foot sidewalks which
would include street trees, pedestrian lights
at the frequency of one every 100 feet as well
as trash receptacles (standard) which at a
minimum should be place at all four corners
of any intersection. This will improve the
walkability of those walking from the Trolley
stop to the core of Downtown.
6) Fund replacement of permanent seating in
the park, replace with movable chairs: The
park at Main Street, across from City Hall,
should be used as a Town Center with
flexibility in its use. The current permanent
benches should be replaced with movable
tables, chairs, and umbrellas. These features
PAGE 28
will allow the Downtown PBID to brand itself
on the chairs and umbrellas and allow for
much more comfortable and usable street
furniture. More importantly they can be
removed and replaced as needed to allow for
large gatherings, not bifurcated by
permanent features
New and current residential developments in Downtown
4) Create a “Hospitality Task Force” to
promote local restaurants, cafes. An
excellent way to consolidate the restaurant
industry in Downtown is to bring them into a
forum in which common problems can be
dealt with as well as come up with joint
marketing programs. This Task Force can be
led by staff, or an independent PR/Social
Media firm paid for by the PBID funds, under
the Environmental Enhancement part of the
budget.
5) Prioritize Art Alley as a functioning piece of
Downtown (web site shows last posting was
for Art Alley Cat Art Show in Sept. 2022).

Downtown has already established a number
of small physical venues for its Art
component. Art is an economic
development strategy. The Economic
Development Report for the City repeatedly
mentions that Downtown should be an arts
and culture experience. Artists must be
supported and regular art events in Art Alley
can begin to turn around the public
perception of Downtown. The great thing
about Art Alley is that it already exists as a
venue, but only needs to be programmed
and managed. Art has a phenomenal ability
to attract all different types of customers
from a large segment of the County. It would
also fill up hotel rooms and could possibly
allow for weekend in Downtown
complemented by a large, featured
performer at the Magnolia and overnight stay
at one of the local Downtown hotels.
6) Convert current Owners Association to a
501c3. Downtown is currently established as
a California mutual benefit corporation,
whose point is to serve the general public.
501c6 non-profits can lobby and back
candidates or legislative initiatives. District
Management Corporations whose primary
charge is the redevelopment and
improvement of their respective business
district or downtowns, should consider
re-creating themselves as chartable
non-profit corporations or 501c3s. This
would allow the corporation to solicit grants
for specific projects and events from
Foundations or businesses who are looking
for something more than a business expense.

This strategy has been very successful in
Little Italy to pay for and manage its many
public spaces. The improvement to any
Downtown or core business district has
tremendous public benefit which, consistent
with IRS provisions of charitable
organizations, “lowers the burden of
government.” This is a critical component of
the future success of Downtown El Cajon
and could help fund many new initiatives
including cultural activities, educational
activities and public art.

7) Consider expansion down El Cajon Blvd.,
south on Magnolia, East on Main, and South
on El Cajon (see attached map showing
proposed expanded area). The impending
renewal of the PBID should look at
expanding to provide special benefit services
for many businesses up to the Trolley stop as
we as north and south on Johnson. In
addition consideration should be to expand
east on Main Street and maybe south on
Magnolia. Expansion running south on El
Cajon Blvd. should also be considered to
capture the new market rate housing that is
being built. Prioritization should be on
making Main Street up to the Trolley stop as
walkable as possible with consistent
treescape along the north and side of Main
Street up to Johnson. Additionally, the new
market rate housing development just south
of Main on El Cajon Blvd. should be
approached to be included in the renewed
district to create a greater downtown
footprint since many of those new residents
can become loyal customers to the retailers,
restaurants, services, and other businesses in
the core area.

8) Hire staff (either Exec Director or
contracted management) to run the
day-to-day operations of the PBID. The
Board does not have a key staff member
accountable for managing PBID operations.

Operating an organization without staff puts
a heavy and unfair burden on the Board
members who are volunteers. Whether it is
through an individual or through a company,
the PBID Board should seriously consider
using the $150,000 annually that is written in
the current PBID plan for Management. This
would allow consistency in the
implementation of Board decisions, recruit
new Board members and seek new revenues
to supplement the PBID’s annual budget and
services. The key staff member could be an
individual, company or property
management firm – but it must be done
soon.
9) Hire a professional cleaning and
landscaping company or do it in-house:

One thing that Downtown El Cajon needs is
far more landscaping. The Downtown streets
and sidewalks need far more tall deciduous
trees that would allow canopy shade in the
summer and light in the winter months. This
is particularly true in the current peripheral
areas heading westbound on Main to the
Trolley stop. A publicly funded Project that
aggressively plants fast growing deciduous
trees will change the image of Downtown El
Cajon.
10) Seek grants from County Supervisor for
special projects: Many similar districts in the
County are very successful attracting new
grants for both operational needs and special
projects from their respective County
Supervisors’ office. Though not consistently
given, special projects that are consistent
with the Supervisor’s annual goals could help
fund these projects and programs.
11) Begin program of annual seasonal displays:

El Cajon does have a great landscaping
canopy that provides its citizens seasonal
color through the neighborhoods.

Something Downtown can provide its
stakeholders and the general public displays
that accentuate each season. The corners of
the Downtown streets will provide an
excellent venue for Spring, Summer, Fall and
Winter displays. There is a lot that can be
done with art and seasonal displays. Seasonal
displays can also highlight Downtown
through a colorful and thoughtful banner
program.
12) East County Market Nights: The proposed
East County Market Nights in Downtown is
an excellent idea that should be pursued.

Similar evening markets have been very
successful in both Los Angeles, San
Francisco. Locally, Oceanside operates a
successful night market. This is something
that can be pursued, particularly with
underwriters who want to be associated with
entrepreneurial events in Downtown El
Cajon.

It is clear that the City is and has always been a
strong advocate and supporter of Downtown,
both through its annual assessments paid into
the PBID as well as the many capital
improvements that were done, particularly
through the former Redevelopment Agency.

New City America also makes six
recommendations for the City of El Cajon to
consider in the upcoming year.
1) Market Rate Housing Incentives: Create
incentives for expediting new Market Rate
development of Mixed-Use housing
developments in and around Downtown.

Downtown market rate housing will do more
than any other initiative to revitalize
Downtown El Cajon. The new residents
become a new reservoir of disposable
income in a walkable environment. The City
Council appears to be very pro-development
and there is no better place to realize such
new development in the City than Main
Street, Magnolia Street and El Cajon Blvd.
2) Adopt the attached CBD Ordinance: As a
charter city, El Cajon should do what almost
25 other charter cities have done in the state
and adopt a new enabling ordinance that
allows for a new property assessment called
a Community Benefit District or
Neighborhood Improvement District. We
have included a sample ordinance in
Attachment 1 that gives an example on how
to amend the municipal code to provide
such “self-help” programs that can be
implemented anywhere in the City.
3) Adopt Sidewalk Vending ordinance: As
surrounding cities in the County adopt
similar vending ordinances based upon
health and safety provisions, the City of El
Cajon should adopt such an ordinance prior
to it becoming an issue on Main and
Magnolia. The ordinance would provide and
allow for such vending, but with conditions
including insurance, safe passage and
compliance with all City and County health
regulations. (See attachments)
4) Adopt Busker Ordinance: Buskers are
individuals who believe that their singing
and/or playing of amplified music are a
public benefit. That may be true in some
cases but clearly not in all cases. Attached
please find Attachment 3 which proposes a
new busker ordinance that would manage,
not stop, individual buskers playing music in
Downtown with no restrictions.
5) Create standards for redevelopment and
wider sidewalks on the west side: The
walkability of Downtown is one of its key
assets. All new development from El Cajon
Blvd westward to the Trolley stop, should
require minimum 12-foot sidewalks which
would include street trees, pedestrian lights
at the frequency of one every 100 feet as well
as trash receptacles (standard) which at a
minimum should be place at all four corners
of any intersection. This will improve the
walkability of those walking from the Trolley
stop to the core of Downtown.
6) Fund replacement of permanent seating in
the park, replace with movable chairs: The
park at Main Street, across from City Hall,
should be used as a Town Center with
flexibility in its use. The current permanent
benches should be replaced with movable
tables, chairs, and umbrellas. These features
will allow the Downtown PBID to brand itself
on the chairs and umbrellas and allow for
much more comfortable and usable street
furniture. More importantly they can be
removed and replaced as needed to allow for
large gatherings, not bifurcated by
permanent features
PAGE 29
Great space, but needs activation. Great landscaping, but fragmented.

Permanent benches should be replaced. Opportunity for public space. [Intentionally Left Blank]

ATTACHMENTS

1. Proposed new Community Benefit District
Enabling Ordinance A1-A4

2. Proposed Sidewalk Vending Ordinance A5-A21

3. Proposed Busker Ordinance A22-28
4) Create a “Hospitality Task Force” to
promote local restaurants, cafes. An
excellent way to consolidate the restaurant
industry in Downtown is to bring them into a
forum in which common problems can be
dealt with as well as come up with joint
marketing programs. This Task Force can be
led by staff, or an independent PR/Social
Media firm paid for by the PBID funds, under
the Environmental Enhancement part of the
budget.
5) Prioritize Art Alley as a functioning piece of
Downtown (web site shows last posting was
for Art Alley Cat Art Show in Sept. 2022).

Downtown has already established a number
of small physical venues for its Art
component. Art is an economic
development strategy. The Economic
Development Report for the City repeatedly
mentions that Downtown should be an arts
and culture experience. Artists must be
supported and regular art events in Art Alley
can begin to turn around the public
perception of Downtown. The great thing
about Art Alley is that it already exists as a
venue, but only needs to be programmed
and managed. Art has a phenomenal ability
to attract all different types of customers
from a large segment of the County. It would
also fill up hotel rooms and could possibly
allow for weekend in Downtown
complemented by a large, featured
performer at the Magnolia and overnight stay
at one of the local Downtown hotels.
6) Convert current Owners Association to a
501c3. Downtown is currently established as
a California mutual benefit corporation,
whose point is to serve the general public.
501c6 non-profits can lobby and back
candidates or legislative initiatives. District
Management Corporations whose primary
charge is the redevelopment and
improvement of their respective business
district or downtowns, should consider
re-creating themselves as chartable
non-profit corporations or 501c3s. This
would allow the corporation to solicit grants
for specific projects and events from
Foundations or businesses who are looking
for something more than a business expense.

This strategy has been very successful in
Little Italy to pay for and manage its many
public spaces. The improvement to any
Downtown or core business district has
tremendous public benefit which, consistent
with IRS provisions of charitable
organizations, “lowers the burden of
government.” This is a critical component of
the future success of Downtown El Cajon
and could help fund many new initiatives
including cultural activities, educational
activities and public art.

7) Consider expansion down El Cajon Blvd.,
south on Magnolia, East on Main, and South
on El Cajon (see attached map showing
proposed expanded area). The impending
renewal of the PBID should look at
expanding to provide special benefit services
for many businesses up to the Trolley stop as
we as north and south on Johnson. In
addition consideration should be to expand
east on Main Street and maybe south on
Magnolia. Expansion running south on El
Cajon Blvd. should also be considered to
capture the new market rate housing that is
being built. Prioritization should be on
making Main Street up to the Trolley stop as
walkable as possible with consistent
treescape along the north and side of Main
Street up to Johnson. Additionally, the new
market rate housing development just south
of Main on El Cajon Blvd. should be
approached to be included in the renewed
district to create a greater downtown
footprint since many of those new residents
can become loyal customers to the retailers,
restaurants, services, and other businesses in
the core area.

8) Hire staff (either Exec Director or
contracted management) to run the
day-to-day operations of the PBID. The
Board does not have a key staff member
accountable for managing PBID operations.

Operating an organization without staff puts
a heavy and unfair burden on the Board
members who are volunteers. Whether it is
through an individual or through a company,
the PBID Board should seriously consider
using the $150,000 annually that is written in
the current PBID plan for Management. This
would allow consistency in the
implementation of Board decisions, recruit
new Board members and seek new revenues
to supplement the PBID’s annual budget and
services. The key staff member could be an
individual, company or property
management firm – but it must be done
soon.
9) Hire a professional cleaning and
landscaping company or do it in-house:

One thing that Downtown El Cajon needs is
far more landscaping. The Downtown streets
and sidewalks need far more tall deciduous
trees that would allow canopy shade in the
summer and light in the winter months. This
is particularly true in the current peripheral
areas heading westbound on Main to the
Trolley stop. A publicly funded Project that
aggressively plants fast growing deciduous
trees will change the image of Downtown El
Cajon.
10) Seek grants from County Supervisor for
special projects: Many similar districts in the
County are very successful attracting new
grants for both operational needs and special
projects from their respective County
Supervisors’ office. Though not consistently
given, special projects that are consistent
with the Supervisor’s annual goals could help
fund these projects and programs.
11) Begin program of annual seasonal displays:

El Cajon does have a great landscaping
canopy that provides its citizens seasonal
color through the neighborhoods.

Something Downtown can provide its
stakeholders and the general public displays
that accentuate each season. The corners of
the Downtown streets will provide an
excellent venue for Spring, Summer, Fall and
Winter displays. There is a lot that can be
done with art and seasonal displays. Seasonal
displays can also highlight Downtown
through a colorful and thoughtful banner
program.
12) East County Market Nights: The proposed
East County Market Nights in Downtown is
an excellent idea that should be pursued.

Similar evening markets have been very
successful in both Los Angeles, San
Francisco. Locally, Oceanside operates a
successful night market. This is something
that can be pursued, particularly with
underwriters who want to be associated with
entrepreneurial events in Downtown El
Cajon.

It is clear that the City is and has always been a
strong advocate and supporter of Downtown,
both through its annual assessments paid into
the PBID as well as the many capital
improvements that were done, particularly
through the former Redevelopment Agency.

New City America also makes six
recommendations for the City of El Cajon to
consider in the upcoming year.
1) Market Rate Housing Incentives: Create
incentives for expediting new Market Rate
development of Mixed-Use housing
developments in and around Downtown.

Downtown market rate housing will do more
than any other initiative to revitalize
Downtown El Cajon. The new residents
become a new reservoir of disposable
income in a walkable environment. The City
Council appears to be very pro-development
and there is no better place to realize such
new development in the City than Main
Street, Magnolia Street and El Cajon Blvd.
2) Adopt the attached CBD Ordinance: As a
charter city, El Cajon should do what almost
25 other charter cities have done in the state
and adopt a new enabling ordinance that
allows for a new property assessment called
a Community Benefit District or
Neighborhood Improvement District. We
have included a sample ordinance in
Attachment 1 that gives an example on how
to amend the municipal code to provide
such “self-help” programs that can be
implemented anywhere in the City.
3) Adopt Sidewalk Vending ordinance: As
surrounding cities in the County adopt
similar vending ordinances based upon
health and safety provisions, the City of El
Cajon should adopt such an ordinance prior
to it becoming an issue on Main and
Magnolia. The ordinance would provide and
allow for such vending, but with conditions
including insurance, safe passage and
compliance with all City and County health
regulations. (See attachments)
4) Adopt Busker Ordinance: Buskers are
individuals who believe that their singing
and/or playing of amplified music are a
public benefit. That may be true in some
cases but clearly not in all cases. Attached
please find Attachment 3 which proposes a
new busker ordinance that would manage,
not stop, individual buskers playing music in
Downtown with no restrictions.
5) Create standards for redevelopment and
wider sidewalks on the west side: The
walkability of Downtown is one of its key
assets. All new development from El Cajon
Blvd westward to the Trolley stop, should
require minimum 12-foot sidewalks which
would include street trees, pedestrian lights
at the frequency of one every 100 feet as well
as trash receptacles (standard) which at a
minimum should be place at all four corners
of any intersection. This will improve the
walkability of those walking from the Trolley
stop to the core of Downtown.
6) Fund replacement of permanent seating in
the park, replace with movable chairs: The
park at Main Street, across from City Hall,
should be used as a Town Center with
flexibility in its use. The current permanent
benches should be replaced with movable
tables, chairs, and umbrellas. These features
will allow the Downtown PBID to brand itself
on the chairs and umbrellas and allow for
much more comfortable and usable street
furniture. More importantly they can be
removed and replaced as needed to allow for
large gatherings, not bifurcated by
permanent features
Proposed New El Cajon Community Benefit District Ordinance ORDINANCE NO.

ORDINANCE OF THE CITY COUNCIL OF THE CITY OF EL CAJON ADDING A NEW CHAPTER 14 TO ARTICLE II OF THE EL CAJON MUNICIPAL CODE

RELATING TO THE ESTABLISHMENT OF COMMUNITY BENEFIT DISTRICTS WHEREAS, section 400 of the City Charter provides that, except as prohibited by the state constitution or restricted by the City Charter, the City shall have all powers and privileges that may be exercised by a charter city; and
WHEREA
S, pursuant to Article XI, Section 5 of the California Constitution, a charter city may make and enforce all ordinances and regulations in respect to municipal affairs, subject only to restrictions and limitations provided in its charter; and WHEREAS, the creation of assessment district to fund and services of a local nature is a quintessential municipal affair, and no specific statutory authority is required for the creation of such an assessment district by a charter city; and
WHEREAS, the City Council desires to create a process for the establishment of such assessment districts.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF EL CAJON DOES ORDAIN AS FOLLOWS:

SECTION 1. The forego
ing recitals are all true and correct.

SECTION 2. A new Chapter 14 is hereby added to Article II of the El Cajon Municipal Code, to read as follows:

CHAPTER 14

COMMUNITY BENEFIT DISTRICTS
3000. SHORT TITLE. This Chapter may be cited as the “El Cajon Community Benefit District Procedural Ordinance.”
3001. AUTHORITY. This Chapter is adopted pursuant to Section 400 of the City Charter, which provides that except as prohibited by the state constitution or restricted by the City Charter, the City shall have all powers and privileges that may be exercised by a charter city.
3002. NON-EXCLUSIVE PROCEDURE. This Chapter provides a procedure for the establishment of assessment districts that is separate from, and alternative to, other procedures under state or municipal law. This Chapter does not prohibit the City Council from establishing an assessment district or conducting proceedings for such district under any other procedure authorized by law.
3003. ESTABLISHMENT OF DISTRICT. The City Council may establish a Community Benefit District and levy assessments in connection with such a District pursuant to this ATTACHMENT 1
PAGE A1
-

-


-

-

Chapter.

3004. INCORPORATION OF STATE LAW. This Chapter incorporates the Property and Business District Law of 1994 (Streets & Highways Code §§ 36600 et seq.), which is referred to in the Chapter as the “PBID Law.” In connection with such incorporation, all references in the PBID Law to a “District” or a “Property and Business District” shall be interpreted as references to a Community Benefit District. Except where a provision of the PBID law is inconsistent with a provision of this Chapter, all provisions of the PBID law shall apply to the establishment and operation of any Community Benefit District established pursuant to this Chapter. In the event of a conflict between the provisions of this Chapter and those of the PBID Law, the provisions in this Chapter shall prevail.

3005. RELATIONSHIP OF ASSESSMENT TO ZONING. Notwithstanding the requirements of Section 36632 of the PBID Law, any parcel of real property, regardless of the zoning of such parcel, may be included in a Community Benefit District and subject to an assessment in connection therewith, so long as such parcel specially benefits from the services and improvements funded by that District.

3006. ASSESSMENT AGAINST REAL PROPERTY. Only assessments against real property may be levied in connection with a Community Benefit District.

3007. INITIATION OF PROCEEDINGS. In lieu of the requirements of Section 36621(a) of the PBID Law, the City Council may initiate proceedings to form a Community Benefit District upon the submission of a written petition, signed by property owners in the proposed district who will pay at least thirty percent (30%) of the assessments proposed to be levied in connection with such district. The amount of assessment attributable to property owned by the same property owner that is in excess of twenty percent (20%) of the amount of all assessments proposed to be levied, shall not be included in determining whether the petition is signed by property owners who will pay more than thirty percent of the total amount of assessments proposed to be levied. In the situation in which one property owner owns more than 20% of the gross assessments in the proposed district, that property owner shall only be able to contribute a maximum of 20% of their total assessments to the petition process.

3008. FORMATION COSTS. If so provided in the Management District Plan and Engineers report for a Community Benefit District, the assessment levied in connection with such a District may include amounts sufficient to recover the costs incurred in forming the District, including:

1. The costs of preparation of the management plan and engineer's report requi
red by state law; and

2. The cost of preparing, circulating and submitting the petition to the City Council seeking establishment of the District; and

3. The costs of printing, advertising and the giving of published, posted or mailed notices; and

4. Compensation of any consultant, engineer or attorney employed to render services in proceedings under this chapter or the PBlD Law; and

5. Costs incurred by the City for public hearings, notices, ballots and other proceedings required by law for approval of a new or increased assessment.

PAGE A2
-
1111
1111
1111
1111

The engineers report shall specify the formation costs eligible for recovery through assessments, the schedule for recovery of those costs, and the basis for determining the amount of the additional assessment for recovery of costs, including the maximum amount of the additional assessment, expressed either as a dollar amount, or as a percentage of the underlying assessment.

3009. ADVANCEMENT OF COSTS. The City Council may, in the resolution of intention for a Community Benefit District, provide that if the District is established, funds may be advanced from the City’s general fund to permit the operation of the District prior to the City’s collection of the assessment. Such advance shall occur only after the establishment of the District, and no advance shall be made if the District is not established. Any such advance may not exceed the total anticipated assessment proceeds for the first year of the assessment. Any such advance must be recovered from assessment proceeds as provided in the Resolution of Intention, along with interest calculated at a rate set forth in the Resolution of Intention. The duration of any such advance shall not exceed five years.

3010. DURATION. The duration of a new Community Benefit District shall be no greater than specified in the Resolution of Intention for the District, and shall in no event be in excess of twenty (20) years. This section is intended to supplant any shorter limitation set forth in the PBID Law on the duration of assessments levied in connection with an assessment district.

3011. RENEWAL. A Community Benefit District may be renewed for a period of not to exceed twenty additional years by following the procedures set forth in the PBID Law.

3012. DISESTABLISHMENT. The City Council may, on its own initiative, at any time, adopt a resolution of intention to disestablish a Community Benefit District and shall adopt a such a resolution if, during the annual thirty-day period set forth in Section 36670(a)(2) of the PBID Law, the City Council receives a written petition requesting disestablishment signed by property owners who pay more than thirty percent of the assessments levied in connection with the district. This section provides alternative method for the initiation of proceedings to disestablish a Community Benefit District and shall not be interpreted to preempt the existence of other methods set forth in Section 36670 of the PBID Law. A resolution of intention adopted pursuant to this section shall have the same effect, and trigger the same notice and hearing requirements, as a resolution of intention otherwise adopted pursuant to Section 36670 of the PBID Law.

3013. VALIDITY. As provided under Section 36633 of the PBID Law, the validity of an assessment levied under this chapter shall not be contested in any action or proceeding unless the action or proceeding is commenced within 30 days after the resolution levying the assessment is adopted. Any appeal from a final judgment in an action or proceeding shall be perfected within 30 days after the entry of judgment.

SECTION 3. SEVERAB
ILITY. If any section, subsection, subdivision, paragraph, sentence, clause or phrase of this Ordinance, or its application to any person or circumstance, is for any reason held to be invalid or unenforceable, such invalidity or unenforceability shall not affect the validity or enforceability of the remaining sections, subsections, subdivisions, paragraphs, sentences, clauses or phrases of this Ordinance, or its application to any other person or circumstance. The City Council hereby declares that it would have adopted each section, subsection, subdivision, paragraph, sentence, clause or phrase hereof, irrespective of the fact that any one or more other sections, subsections, subdivisions, paragraphs, sentences, clauses or phrases hereof is declared invalid or unenforceable.

PAGE A3

SECTION 4. CEQA . This activity is not a project under CEQA as defined in CEQA Guidelines section 15378 (b)(4), because it adopts a method by which to create government funding mechanisms or constitutes other government fiscal activities which do not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment.

SECTION 5. EFF
ECTIVE DATE. This ordinance shall take effect thirty (30) days after adoption.

SECTION 6. The
City Clerk shall certify to the adoption of this Ordinance and cause the same to be published in the manner prescribed by law.

APPRO
VED AND ADOPTED this ___ day of ________, 2023.

, Mayor

ATTEST:

City Clerk

STATE OF CALIFORNIA

COUNTY OF SAN DIEGO

CITY OF EL CAJON

PAGE A4
Propose
d Sidewalk Vending City of El Cajon
ORDINANCE NO. ________

AN URGENCY ORDINANCE OF THE CITY OF EL CAJON,

CALIFORNIA ESTABLISHING A SIDEWALK VENDING PROGRAM IN
COMPLIANCE WITH SENATE BILL 946; AMENDING THE EL CAJON

MUNICIPAL CODE TO ADD
CHAPTER 5.35 AND AMENDING SECTIONS 1.20.010 AND 9.14.140; AND

DECLARING THE URGENCY THEREOF

WHEREAS
, Senate Bill No. 946 ("SB 946") became effective on January 1, 2019, and provides that cities may not regulate sidewalk vending except in accordance with its provisions which are codified in Government Code sections 51036 through 51039;
WHEREAS, the City seeks to adopt an enforceable sidewalk vending program that responds to the objective needs and circumstances of the City, and protects the public health, safety and welfare;
WHEREAS, in light of the specific provisions for sidewalk vending in state law, regulating sidewalk vending through a local permit license specific to the activity will enable the City to more effectively comply with mandates; WHEREAS, regulating sidewalk vending will benefit the City by promoting entrepreneurship and a dynamic streetscape, while ensuring the protection of the public health, safety, and welfare;
WHEREAS, unless properly regulated, vending in the public right-of-way and in public parks creates the potential for increased safety risks including, but not limited to interfering with the performance of police, firefighter and paramedic services; contributing to traffic congestion; and interfering with the ability of pedestrians and persons with disabilities to follow a safe path of travel by obstructing the right-of-way with vending equipment or by increasing congestion; WHEREAS, the licensing requirements of this ordinance are necessary to collect adequate information about vending operations within the City's limits, to facilitate contact between the City and vendors, and to ensure that vending does not adversely affect public welfare;
WHEREAS, requiring sidewalk vendors to maintain a minimum unobstructed pedestrian path of five (5) feet in commercial zones and four (4) feet in exclusively residential zones is necessary to ensure compliance with state and federal disability access standards;
ATTACHMENT 2
PAGE A5
1111

WHEREAS, the widths of the City's public sidewalks accommodate an expected level of pedestrian traffic at the location, and ensuring the free flow of pedestrian traffic is particularly important to the safety of the elderly, the young, persons with disabilities, and others who are less able to navigate crowds and obstacles that may require stepping off curbs when sidewalks are obstructed;
WHEREAS, requiring sidewalk vendors to obtain a health permit from the Los Angeles County Department of Public Health before engaging in the sale of food to the public is necessary to protect the public health, safety, and welfare; WHEREAS, requiring sidewalk vendors engaged in the sale of food to comply with applicable sanitation requirements will protect the public health and safety against the accumulation litter and food products or food by products being left on the City's sidewalks and surrounding areas;
WHEREAS, regulations related to the collection and disposal of trash or other debris generated by sidewalk vending are necessary to ensure that such trash or debris is not left, thrown, discarded, or deposited on City streets, sidewalks, pathways, gutters, or storm drains, or upon public or private lots, so that the same might be or become a pollutant;
WHEREAS, requiring sidewalk vendors to undergo background checks is necessary to ensure vendors meet the requirements of a license to operate in or near parks, schools, residences, and other places frequented by children; WHEREAS, restricting vending in commercial areas with historical and unique characteristics and in areas of the City where there is a high concentration of art and entertainment venues is necessary to avoid compromising public safety, as congested sidewalks encourage pedestrians to step into roadways to maintain the flow of traffic, and the presence of vendors encourage pedestrians to cross mid -block or to stand in roadways to purchase food or merchandise;
WHEREAS, restricting sidewalk vending near school grounds when the grounds are open for student instruction is necessary to protect the safety of children traveling to and from campus and to avoid disrupting classroom instruction and school activities; WHEREAS, restrictions on sidewalk vending in public parks is necessary to ensure the public's use and enjoyment of natural resources and recreational opportunities, and to prevent an undue concentration of commercial activity that would unreasonably interfere with the scenic and natural character of these parks; WHEREAS, the need for a regulatory program is at its height during the holiday season when thousands of visitors arrive in the City for shopping and entertainment activities creating extremely high pedestrian and vehicular traffic volumes; and WHEREAS, the City Council hereby adopts this ordinance pursuant to its authority under Government Code section 51038 and finds that the regulation of sidewalk vendors set forth herein is directly related to protecting the health, safety and PAGE A6

welfare of the El Cajon community.

NOW, THEREFORE, BE IT ORDAINED BY THE PEOPLE OF THE CITY OF EL CAJON AS FOLLOWS:

SECTION 1. The abov e recitals are true and correct.

SECTION 2. Chapter 5.35 is hereby added to Title 5 of the El Cajon Municipal Code to read as follows:

Chapter 5.35

SIDEWALK VENDORS
Sections:

5.35.010 Definitions.

5.35.020 License Required.

5.35.030 Application Procedure.

5.35.040 Grounds for Denial.

5.35.050 Term and Renewal.

5.35.060 License Nontransferable.

5.35.070 Exemptions.

5.35.080 Operating Requirements.

5.35.090 Revocation.

5.35.100 Appeal.

5.35.110 Penalties.

5.35.120 Ability-to-Pay Determinations.

5.35.010 Definitions.

For the purposes of this Chapter, the following words and phrases shall have the meanings ascribed to them unless otherwise noted:
"Certified farmers' market" means a location operated in accordance with Chapter

10.5 (commencing with Section 47000) of Division 17 of the Food and Agricultural Code and any regulations adopted pursuant to that Chapter. "City" means the City of El Cajon.
"Director" means the Director of Community Development or his or her designee. "Exclusively residential" means the following zones: all single family and multi-family zones, as described in Chapter 30.11 - Residential Districts of this Code.

For purposes of this Chapter, any area not within an exclusively residential zone shall be deemed commercial.

PAGE A7
1111 -

"Immediate vicinity" means within five hundred (500) feet.

"Park" means a public park owned or operated by the City. "Person" means any natural person, firm, association, organization, partnership, joint venture, business trust, corporation, or company.
"Receptacle" means equipment used by a sidewalk vendor for vending activities including but not limited to a pushcart, stand, display, pedal -driven cart, wagon, showcase, rack, or other nonmotorized conveyance.
"Sidewalk" means a public sidewalk or paved pedestrian path specifically designed for pedestrian travel. A sidewalk shall not include streets, alleys, plazas, or City -owned parking lots or structures.
"Sidewalk vendor" or "vendor" means a person who sells food or merchandise from a pushcart, stand, display, pedal -driven cart, wagon, showcase, rack, or other nonmotorized conveyance, or from one's person, upon a public sidewalk or other pedestrian path. A sidewalk vendor may be either a:

1. "Roaming sidewalk vendor," which means a sidewalk vendor who moves from place to place and stops only to complete a transaction; or

2. "Stationary sidewalk vendor," which means a sidewalk vendor who vends from a fixed location.
"Vend" or "vending" means to sell, offer for sale, expose or display for sale, solicit offers to purchase, or to barter food or merchandise, or to require someone to negotiate, establish or pay a fee before providing food or merchandise, even if characterized as a donation. Vend or vending does not include the offering of services. "Special event permit" means a permit issued for the temporary use of, or encroachment on, a sidewalk or other public area, including, but not limited to, a special event permit issued pursuant to Chapter 5.96 of this Code and a special event permit issued by the City's Community Services and Parks Department for events at any city park.

Section 5.35.020 License Required.

No person shall engage in sidewalk vending without first obtaining a business license pursuant to this Chapter. A separate license is required for each receptacle used by a sidewalk vendor.

Section 5.35.030 Application Procedure.

A. An application for a sidewalk vending license shall include the following information:

PAGE A8

1. The applicant's name, current mailing address, and telephone number;

2. A copy of a valid California driver's license or identification number, an individual taxpayer identification number, or an identification card issued by another municipality. Such information is not a public record and will remain confidential as required by Government Code section 51038(c)(4);

3. If the vendor is an agent of an individual, company, partnership, or corporation, the name and business address of the principal;

4. A description of the merchandise to be offered for sale and any vending equipment to be used (including the dimensions of the receptacle and a photograph thereof);

5. A copy of a valid California Department of Tax and Fee Administration sales tax number, as required;

6. If a vendor of food, proof of all required approvals from the Los Angeles County Department of Public Health;

7. The results of a fingerprinting background check using a form furnished by the City;

8. For stationary sidewalk vendors, a description, map, or drawing of the location(s) in which the applicant proposes to operate;

9. A statement of the days and hours of proposed vending operations, and whether the sidewalk vendor intends to operate as a stationary vendor or a roaming vendor;

10. Proof of comprehensive general liability insurance with minimum policy limits of one hundred thousand dollars ($100,000) per occurrence, combined single limit, and two hundred thousand dollars ($200,000) in the aggregate against any injury, death, loss or damage as a result of wrongful or negligent acts or omissions by the vendor, with an endorsement naming the City as an additional insured;

11. An agreement by the applicant to indemnify and hold harmless the City, its officers and employees, for any damage or injury caused to the City as a result of the sidewalk vending conduct or activity;

12. The applicant's certification, that to his or her knowledge and belief, the information contained in the application is true;
PAGE A9

13. Such other information as the Director deems necessary for the administration or enforcement of this Chapter as specified on the required application form; and

14. Applications shall not be accepted unless accompanied by payment of a non-refundable annual fee set by resolution of the City Council.

5.35.040 Grounds for Denial.

A. Applicants will be notified in writing of the Director's decision to approve or deny an application for a sidewalk vending license. If an application is denied, the reasons for denial will be set forth in the written notice.

B. Applicants may be denied on the following grounds:

1. The proposed vending location encroaches on a public sidewalk without maintaining an unobstructed pedestrian access route as specified in Section 5.35.080(D).

2. The proposed vending operation, including the equipment to be used by the vendor, fails to comply with all applicable health, zoning, fire, building and safety laws of the State of California or of the City of El Cajon.

3. The applicant has knowingly made a false, misleading, or fraudulent statement of material fact in the application.

4. The applicant does not possess all state and local permits necessary for the proposed operations.

5. The applicant has had a license issued pursuant to this Chapter revoked within the preceding twelve (12) months.

6. The applicant has received three (3) or more administrative citations for violations of this Chapter within the preceding twelve months.

7. The applicant, his or her agent or employee, or any person connected or associated with the applicant as partner, director, officer, stockholder, associate or manager, has committed, assisted in, or incited the commission of any act, or act of omission, which would be grounds for disciplinary action under this Chapter if committed by a licensee;

8. The applicant is required to register under the provisions of California Penal Code section 290 (or an equivalent section in any other State);

9. The applicant has been convicted of any felony offense involving the sale of a controlled substance specified in California Health and Safety Code sections 11054, 11055, 11056, 11057, or 11058 within five (5) years of the date of the application, or is otherwise on probation or PAGE A10

parole for any offenses set forth in this section; or

10. The applicant is indebted to the City for any unpaid fee, fine, or community service.

5.35.050 Term and Renewal.

A. A sidewalk vending license shall be valid from the date of issuance through December 31
st of that year, unless revoked prior to that date in accordance with the provisions of this Chapter.

B. Each sidewalk vendor who seeks to renew a license pursuant to this Chapter shall submit a renewal application on a City approved form and tender any applicable fees to the Director no later than thirty (30) calendar days prior to the expiration of the vendor's current license. Unless timely renewed, any license issued pursuant to this Chapter shall expire and become null and void at the end of its term.

C. An application to renew a license issued pursuant to this Chapter may be denied by the Director upon the grounds set forth in Section 5.35.040.

5.35.060 License Nontransferable.

A sidewalk vending license shall not be transferable to any person or be valid for vending operations in any locations(s) other than that location designated on the license for the stated term.

5.35.070 Exemptions.

A sidewalk vending license shall not be required for events conducted in accordance with a special event permit, including but not limited to a certified farmers' market, swap meet, street fairs, and outdoor concerts.

5.35.080 Operating Requirements.

A. Sidewalk vendors are subject to the following operating conditions when conducting sidewalk vending activities:

1. Conducting sidewalk vending activities shall be limited as follows:
a. On sidewalks or pathways within or directly adjacent to exclusively residential areas, between dawn and dusk daily;
b. In non-residential areas, vending activities are prohibited between 2:00 a.m. and 6:00 a.m.; and
c. In parks, during the times the parks are open to the public until one hour before closing.

2. All food and merchandise shall be stored either inside or affixed to the PAGE A11

sidewalk vendor receptacle or carried by the sidewalk vendor. Food and merchandise shall not be stored, placed, or kept on any public property. If affixed to the sidewalk vendor receptacle, the overall space of the sidewalk vendor receptacle shall not exceed the size requirements provided in this section;

3. The sidewalk license shall be displayed conspicuously at all times on the sidewalk vending receptacle or the sidewalk vendor's person. If multiple sidewalk vendors are staffing a sidewalk vendor receptacle or working as roaming sidewalk vendors, each person shall wear their license on their person in a conspicuous manner;

4. Sidewalk vendors shall not leave their sidewalk vending receptacle unattended;

5. All signage and advertising related in any way to the sidewalk vendor shall be attached to the sidewalk vending receptacle, if any, or the sidewalk vendor's person;

6. Sidewalk vendors shall not use any electrical, flashing, wind powered, or animated sign;

7. Sidewalk vending receptacles shall not be stored on public property and shall be removed when not in active use by a sidewalk vendor;

8. No sidewalk vending receptacle shall contain or use explosive or hazardous materials with the exception of propane;

9. Sidewalk vendors that sell food shall display at all times they are conducting sidewalk vending activities the health permit issued by the Los Angeles County Department of Public Health;

10. Sidewalk vendors that sell food shall maintain a trash container in or on their sidewalk vending receptacle and shall not empty their trash into the public trash cans. Sidewalk vendors shall not leave any location without picking up, removing, and properly disposing of all trash or refuse from their operation. (Vendors must maintain their own trash containers for the proper disposal of trash, food, or liquids generated by their vending activities.);

11. Sidewalk vendors shall immediately clean any food, grease or other fluid or item related to sidewalk vending activities that falls on public property;

12. Sidewalk vendors shall not block an exit to a building, structure or facility;

13. Stationary sidewalk vendors shall not cause, allow, or maintain the placement of tables, chairs, shade structures, tents, umbrellas, other furniture, rugs, towels, fabric of any kind upon the sidewalk in conjunction with the vending operation;
PAGE A12

14. Sidewalk vendors shall not store or leave unattended vending equipment or receptacles in public spaces or in any portion of the public right -of-way. (Equipment or objects left in public spaces or in the public fight -of-way overnight, or outside the hours of permitted vending operations will be considered discarded and may be seized or disposed of by the City);

15. Sidewalk vending receptacles must not exceed the maximum dimensions of six (6) feet in length by four (4) feet in width;

16. Roaming vendors must maintain an unobstructed view over four (4) feet in height from the ground to the table top structure of the receptacle; and

17. Sidewalk vendors shall comply with the noise standards provided in Chapter

8.36 of this Code.

B. Sidewalk vendors shall not:

1. Rent merchandise to customers;

2. Display or advertise merchandise or food that is not available for immediate sale;

3. Sell live animals, alcohol, cannabis, adult oriented material, tobacco products, products that contain nicotine or any product used to smoke or vape nicotine or cannabis;

4. Use an electrical outlet or power source that is owned by the City or another person other than the sidewalk vendor;

5. Continue to offer food or merchandise for sale, following, or accompanying any person who has been offered food or merchandise after the person has asked the sidewalk vendor to leave or after the person has declined the offer to purchase food or merchandise;

6. Knowingly make any false statements or misrepresentations during the course of offering food or merchandise for sale;

7. Block or impede the path of the person(s) being offered food or merchandise to purchase;

8. Make any statement, gesture, or other communication which a reasonable person in the situation of the persons(s) being offered food or merchandise to purchase would perceive to be a threat and which has a reasonable likelihood to produce in the person(s) a fear that the threat will be carried out;

9. Touch the person(s) being offered food or merchandise without that person(s)' consent; or

10. Place their sidewalk vending receptacles outside of any pathway or sidewalk PAGE A13

when engaging in sidewalk vending activities;

11. Use any horns, music, lights, visual media, or sound amplifying device unless expressly approved in the license;

12. Physically alter or otherwise damage the sidewalk;

13. Fasten or affix any item, including but not limited to, tape, strap, chain, tie, band, or rope, to any public property;

14. Provide or sell any service to any person; or

15. Place of any type of fencing or other divider around the vending area.

C. All sidewalk vending activities shall comply with the current Americans with Disabilities Act, as well as with the Proposed Accessibility Guidelines for Pedestrian Facilities in the Public Right-of-Way.

D. The minimum width of the public sidewalk to be occupied shall not be less than ten (10) feet in commercial or other non- residential zones, and the vending occupancies or activities within these zones must permit at least five (5) feet of unobstructed area of public walkway. Roaming vendors operating in exclusively residential zones must permit at least four (4) feet of unobstructed public walkway while engaged in vending activities.

E. No vending activities shall occur in the following locations:

1. Any public property, including without limitation, streets, alleys, median strip, or dividing section, and city owned parking structures, except on a public sidewalk or a City park;

2. El Cajon City Hall, unless pursuant to an agreement with the City;

3. El Cajon Civic Auditorium;

4. Any El Cajon City Library, unless pursuant to an agreement with the City;

5. Within or in the immediate vicinity of:
a. A certified farmers' market or during the hours of its operation; or b. An area designated for a special event permit for the limited duration of the permitted event;
i) Any notice, business interruption mitigation, or other rights provided to affected businesses or property owners will also be provided to any sidewalk vendors specifically permitted to operate in the area, if applicable.

PAGE A14

6. Within two hundred (200) feet of:
a. a police station; a fire station; or a hospital; or
b. any public or private school grounds between the hours of 8:00 a.m. and 5:00 p.m., on days that school is open to students;

7. Within one hundred (100) feet of another vendor;

8. Within twenty -five (25) feet of any on- street valet parking zone or loading/unloading zone, or any taxicab zone or stand;

9. Within twenty (20) feet of a:
a. Fire hydrant;
b. Curb which has been painted white, yellow, green, blue or red; c. Automated teller machine; or
d. Trash receptacle, bike rack, public restroom, or similar public use items.

10. Within fifteen (15) feet of:
a. any bus stop, bus bench or bus shelter;
b. any street corner or marked pedestrian crosswalk;
c. the outer edge of any entrance to any business, including, but not limited to, doors, vestibules, and driveways, during the hours that any business on the premises is open to the public or to persons having or conducting lawful business within those premises; d. the outer edge of any area permitted for sidewalk or outdoor dining including, but not limited to, sidewalk or outdoor dining entries and exits during the hours the business is open to the public; or e. any driveway or alley approach.

11. Within five (5) feet of any traffic signal controller, traffic signal pole, or other emergency facility; power pole, street light pole, general utility pole, above ground cabinet, general utility facility, manhole, parking meter, regulatory and directional signs, street furniture, or street art sculptures;

12. Within three (3) feet of:
a. any area improved with lawn, flowers, shrubs or trees; or PAGE A15

b. any display window of any building abutting the sidewalk or parkway or in such manner as to impede or interfere with the reasonable use of such window for display purposes.

F. Stationary sidewalk vendors are prohibited on sidewalks within areas that are zoned exclusively residential. This prohibition does not extend to roaming sidewalk vendors.

G. The City's Art and Entertainment District, Magnolia Theatre District, and portions of the Downtown area have been created to encourage the concentration of arts, cultural and entertainment venues, as well residential, commercial, shopping, dining, and retail uses. Due to the high volume of the pedestrian and vehicular traffic in these areas, sidewalk vending is prohibited on:

1. The east and west sidewalks of Artsakh Avenue between Wilson Avenue and Harvard Street;

2. The alley west of the Downtown Central Library from Harvard Street to Colorado Street;

3. The north side of Colorado Street from the alley west of the Downtown Central Library to Brand Boulevard;

4. The east and west side of Brand Boulevard from Colorado Street to Lexington Drive;

5. The north and south sides of Wilson Avenue from Brand Boulevard to Artsakh Avenue on the south and Maryland Avenue on the north; and

6. The east and west sides of Central Avenue from Colorado Street to underneath the location of the pedestrian bridge that crosses above Central Avenue.

H. The following areas have unique and historic characteristics, and offer the com
munity retail and dining opportunities. Due to the high volume of the pedestrian and vehicular traffic in these areas, sidewalk vending is prohibited in the following locations:

1. The Montrose Shopping Park area on Honolulu Avenue between Sunset Avenue on the north side of the street and the western edge of 2462 Honolulu Avenue on the south side of the street to Verdugo Road/Montrose Avenue;

2. The Kenneth Village area on Kenneth Road between Sonora and Grandview Avenues, including all commercial properties surrounding the intersections.

3. The commercial Adams Square area along East Chevy Chase Drive PAGE A16

between 1015/1020 East Chevy Chase Drive (west of South Adams Street) and East Acacia Avenue, and along South Adams between East Chevy Chase Drive and East Palmer Avenue, including all commercial corner properties at said intersections.

I. Us
e, occupation and obstruction of the public sidewalk which is permitted under this Chapter may be temporarily suspended or revoked, without prior notice, when, in the discretion of the Director, the Police Chief, or the Fire Chief, any such use, occupation or obstruction may interfere with public safety efforts or programs, street improvement activities, construction activities, cleaning efforts or other similar activities or with the health, welfare or safety of the public.

J. Vending in Parks:

1. Vendors shall cease vending operations in any park one hour prior to park closure.

2. Stationary sidewalk vendors are prohibited from vending in any City park that is subject to an exclusive concessionaire agreement to provide food or merchandise.

3. Vendors shall remain on sidewalks or pedestrian pathways while vending in parks.

4. Sidewalk vendors shall not vend in the following locations within a park:
a. Within fifty (50) feet of any field or court that is primarily designed for use in a sporting activity (including, but not limited to, baseball field, softball field, basketball court, tennis court, soccer field, volleyball court, and handball court), while said area is in use;
b. Within fifty (50) feet of any playground, pool, or exercise area while said area is in use.

K. The City Manager or designee may adopt administrative regulations imposing additional requirements consistent with this Chapter and all other applicable laws in order to regulate the time, place, and manner of vending.

5.35.090 Revocation.

A sidewalk vendor may license may be revoked after the licensee is afforded written notice and an opportunity to be heard regarding a citation for the licensee's fourth or subsequent violation of the requirements set forth in this Chapter.

5.35.100 Appeals.

PAGE A17

A. Any person aggrieved by a decision denying or revoking a license pursuant to this Chapter may appeal the Director's decision by filing a written appeal to the Community Development Department. Appeals must be filed within fifteen (15) business days after notice of the Director's decision has been mailed to the applicant's address. A timely appeal will include the enforcement of any decision to revoke a license.

B. The appeal shall be conducted within a reasonable time, but not less than thirty (30) days, at a hearing before a neutral hearing officer designated by the City Manager. Not less than five (5) business days prior to the hearing, the Director or a designee shall give notice of the time and place of the hearing. The decision of the hearing officer shall be based upon the criteria applicable to the issuance or revocation of such permit. The hearing officer may affirm, modify or reverse the decision of Director and shall state the reasons therefor. The decision of the hearing officer shall be final when rendered. Within thirty (30) calendar days of the hearing, the hearing officer shall notify the appellant of the decision, in writing, which shall be final. An aggrieved person may obtain judicial review within the time and in the manner provided for in California Code of Civil Procedure Section 1094.6, or any successor legislation.

C. Appeal of Administrative Citation.

Sections 1.24.260 through 1.24.290 of this Code apply to the appeal of an administrative citation.

5.35.110 Penalties.

A. A violation of this Chapter is not punishable as an infraction or misdemeanor, and no person will be subject to arrest for sidewalk vending unless the person has violated a law for which a person may be arrested.

B. A violation of this Chapter is punishable only by an administrative fine according to a fee schedule adopted by resolution of the City Council.

C. Notwithstanding any other provision of this Code, failure to pay an administrative fine assessed under this section is not punishable as an infraction or misdemeanor, and additional fines, fees, assessments, or any other financial conditions beyond those authorized will not be assessed.

5.35.120 Ability-to-Pay Determinations.

A. When assessing an administrative fine under this Chapter, the City will take into consideration a person's ability to pay the fine.

1. Any fine issued under this Section will be accompanied by a notice of and instruction regarding a person's right to request an ability -to-pay determination.

2. A person may request an ability -to-pay determination at adjudication or PAGE A18

while the judgment remains unpaid, including when a case is delinquent or has been referred to a collection program.

B. If a person is receiving public benefits under Government Code section 68632 (a), or has a monthly income which is 125 percent or less than the current poverty guidelines updated periodically in the Federal Register by the United States Department of Health and Human Services, the person's administrative fine is limited to twenty (20) percent of the amount assessed. The City may also take the following actions:

1. Allow the person to complete community service in lieu of paying the total administrative fine; or

2. Waive the administrative fine; or

3. Offer an alternative disposition.

SECTION 3. Sect
ion 9.14.140 of Chapter 9.14 of the El Cajon Municipal Code is hereby amended to read as follows:

9.14.140 Peddling.

Whenev
er the holder of any license provided for by, or issued under, this code uses any wagon, cart, tray, basket or other vehicle or receptacle in vending any such goods, wares or merchandise, such license shall be inserted, held and carried in a manner such that it is at all times in plain view in such vehicle or receptacle.

SECTION 4. Sect
ion 1.20.010 of Chapter 1.20 of the El Cajon Municipal Code is hereby amended to read as follows:

1.20.010 Penalties and punishment for code violations.

A. Exc
ept as provided in subsection B, C, or D, of this section, whenever in this code any act is prohibited or declared unlawful, or the doing of any act is required, or the failure to do any act is declared to be unlawful, it shall be a misdemeanor. Unless a specific penalty is provided, and person convicted of such misdemeanor shall be punished by a fine not to exceed one thousand dollars ($1,000.00), or imprisonment for a term not to exceed six (6) months, or by both such fine and imprisonment.

B. With the exception of Title 10 of this code, any other provision of this code where the specific penalty of infraction is provided shall be deemed an infraction punishable as follows:

1. A fine not exceeding one hundred dollars ($100.00) for a first violation;

2. A fine not exceeding two hundred dollars ($200.00) for a second violation within one (1) year;
PAGE A19

3. A fine not exceeding five hundred dollars ($500.00) for each additional violation within one (1) year.

C. A violation of any provision of Title 10, with the exception of Chapter 10.56, unless otherwise specifically provided, shall be deemed an infraction. An infraction under Title 10, except Chapter 10.56, is punishable by a fine which shall be established by resolution of the city council, either for a specific section under Title 10 or pursuant to a bail or fine schedule applicable to numerous sections thereunder. Any such bail or fine shall not exceed the sum of five hundred dollars ($500.00) for each violation.

D. A violation of the following El Cajon Municipal Code sections shall be deemed an infraction punishable as provided in subsection B of this section, except that all violations after three (3) convictions or nolo contendere pleas, or any combination totaling three (3), within one (1) year shall be misdemeanors punishable pursuant to subsection A of this section:

E. Whenever in this code any act or omission is made unlawful it shall include causing, permitting, aiding, abetting, suffering or concealing the fact of the act or omission. Each person shall be guilty of a separate offense for each and every day during any portion of which any violation of any provision of this code is committed, continued or permitted by that person, and shall be punishable accordingly.

F. Notwithstanding the above provisions, the criminal penalties provided for in this section shall not apply to Chapter 5.35 of this Code relating to sidewalk vendors.

SECTION 5. CEQA.

The City Council hereby finds and determines that there is no possibility that the adoption of a sidewalk vending ordinance will have a significant effect on environment and the amendments to the El Cajon Municipal Code are exempt

from
the California Environmental Quality Act ("CEQA"). Accordingly, under the provisions of section 15061(b)(3) and section 15305 of Division 6 of Title 14 of the California Code of Regulations ("the CEQA Guidelines") the adoption of this ordinance is not subject to the requirements of the California Environmental Quality Act.

SECTION 6. Urge
ncy Finding. The City Council finds and declares that the immediate preservation of the public peace, health, and safety requires that this ordinance be enacted as an urgent measure pursuant to Government Code section 36937(b). Based on public comments, Council expects the interest in sidewalk vending to increase and will require the means to regulate the activity. In addition, the holiday season will begin in earnest with Black Friday on November 29, 2019. During the holiday season, the City receives thousands of visitors who come for cultural events, retail shopping, and dining. For these reasons, and the reasons set forth in Section 1, the Council finds that it is necessary to adopt this ordinance as an urgent measure.

Ensuring that this ordinance takes effect immediately will ensure that the City is equipped to preserve the public peace, health, and safety during the upcoming holiday season.

PAGE A20

SECTION 7. Sever ability. Should any provision of this Ordinance be declared by a court of competent jurisdiction to be invalid, the same shall not affect the validity of the Ordinance as a whole or any remaining provisions hereof. The City Council of the City of El Cajon hereby declares that it would have adopted this Ordinance despite any partial invalidity of its provisions.

SECTION 8. Effecti
ve Date. Pursuant to Government Code section 36937(b),
this ordinance shall take effect immediately upon its adoption by four -fifths of the City Council.

SECTION 9. Cert ification. The City Clerk is directed to certify the passage and adoption of this Ordinance; cause it to be entered into the City's book of original ordinances; make a note of the passage and adoption in the records of this meeting; and within fifteen (15) days after the passage and adoption of this Ordinance, cause it to be published or posted in accordance with California law.

Passed and adopted by the Council of the City of El Cajon, Cal ifornia on the
_______ day of , 2023.
______________________________
Mayor
Attest:

_________________________
City Clerk

STATE OF CALIFORNIA

COUNTY OF EL CAJON

CITY OF EL CAJON

____________________________
City Clerk
PAGE A21
Propos
ed Busker Ordinance for Downtown El Cajon
PROPOSED ORDINANCE NO._________________

AN ORDINANCE OF THE CITY OF EL CAJON, CALIFORNIA
ADDING CHAPTER 12.02, RELATED TO SIDEWALK/S PERFORMERS AND BUSKERS , RELATING TO PUBLIC PROPERTY,

TO THE E

L CAJON MUNICIPAL CODE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF EL CAJON:

SECTION 1. Chapter 12.02 of the El Cajon Municipal Code, 1995, is hereby added to read as follows:

12.02.010 Purpose.

The City finds that sidewalk/street performers and/or buskers provide a public amenity that enhances enjoyment in, and character of, the City in a manner consistent with the overall public interest. The city also recognizes that sidewalk and street performers seek to and do draw crowds to their performances. Doing so can create conflicts in the use and enjoyment of public areas by impacting the ability of pedestrians to move freely and safely on the sidewalks and through crosswalks, by blocking and impeding vehicular traffic on city streets, by impacting pedestrians’ ability to enter and exit various businesses, and by impacting public safety personnel in responding to calls for service.

Striking and maintaining a balance between protecting the public and the exercise of First Amendment free speech activity can be difficult. This difficulty is increased due to changing uses and development conditions in the City, including the rezoning of the city’s downtown into a mixed-use residential and commercial area under the Civic El Cajon’s ATTACHMENT 3
PAGE A22
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- 1111
-
Downtow
n Specific Plan, and the ever changing activities undertaken by sidewalk and street performers in public areas.

The purpose of this chapter is to impose reasonable time, place, and manner regulations on sidewalk street performances that occur in the public rights of way in order to protect the public health, safety, and welfare of performers, their audience, and the general public, to prevent unreasonable interference with the public’s use and enjoyment of public areas, to allow residents’ enjoyment of peace and quiet in their homes, and to give businesses the ability to operate and conduct their business. The purpose of this ordinance is also to ensure that such performers shall coordinate, in writing with designated management entities related to Business Improvement Districts and Maintenance Assessment Districts, to schedule any and all time slots, locations and noise factors to ensure a mutually beneficial display of performances.

12.02.020 Definitions.

For purposes of this chapter, the following words and phrases shall have the meaning set
forth unless a different meaning is clearly intended from the context in which such word or phrase is used.
“Perform” means to engage in a performance including, but not limited to, playing musical instruments, singing, dancing, acting, pantomiming, puppeteering or juggling. “Performer” means an individual or group who performs public entertainment in a public area for tips or gratuities. Performers shall not be allowed to use amplification devices unless pre-approved by the City or the community management entities in parks, plazas, piazzas and other public rights of way within the boundaries of the City of El Cajon.

PAGE A23
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“Publi
c areas” means sidewalks, streets, parkways, walkways, parks, piazzas, plazas and all other public spaces and properties in the City.

12.02.030 Regulations.

A. Notwithstanding any other provision of this code, no performer may perform:

1. Within thirty (30) feet of any bus stop;

2. Within thirty (30) feet of any street corner or marked pedestrian crosswalk;

3. Within 30 feet of the outer edge of any entrance to any business, including, but not limited to doors, vestibules, driveways, outdoor dining entries and emergency exists, during the hours that any business on the premises is open to the public or to persons having or conducting lawful business within those premises.

4. In any public park, piazza, plaza or public gathering place without prior authorization by the City of El Cajon or its designated contracted agents including Business Improvement District, Maintenance Assessment District management corporations, as well as the Park and Rec Dept of the City of El Cajon within designated Park locations.

B. A performer and the performer’s equipment may not block or obstruct the free and safe movement of pedestrians or vehicular traffic. If a crowd gathers to observe a performer such that the passage of the public through a public area is blocked or obstructed, a police officer or fire official may disperse that portion of the crowd that is blocking or obstructing the passage of the public. If a performer cannot conduct a performance in a location without blocking or obstructing the PAGE A24
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passage
of the public, a police officer may cause the performer to leave the location or require that the performer relocate his or her equipment but shall not prevent the performer from occupying another location that does not block the free and safe movement of pedestrians or vehicular traffic.

C. No performer shall use any knife, sword, torch, flame, axe, saw or other object that can cause serious bodily injury to any person or that can be used in any manner that can cause serious bodily injury to any person.

D. No performer shall ask or allow any observer, bystander, or audience member to engage in any activity, including, but not limited to, acrobatics, tumbling, or cycling that can cause serious bodily injury to any person.

E. No performer shall use any generator, wet cell battery with removal fill caps, amplifier or other power source that may pose a fire, noise or public safety hazard. No performer shall connect or maintain an electrical cord to an adjacent building or to a city power source.

F. No performer may litter his or her performance site or damage or mark any public property.

G. No performer shall fasten or affix any item including, but not limited to, tape, strap, chain, tie, band, or rope, to any public property.

H. No performer shall utilize or prevent the public from utilizing any public benches, waste receptacles or other street furniture during the performance.

I. No minor under the age of 18 may perform unless the minor is at all times accompanied by a responsible adult 18 years of age or older, has obtained an entertainment work permit issued by the Department of Industrial Relations of PAGE A25
the Stat
e of California and maintains the permit in his or her possession at the time of the performance. The police or other designated city representative may ask the performer for appropriate identification to ensure that the age requirement of this section has been met.

J. No performer shall place any object on a sidewalk which causes less than an eight foot continuous sidewalk width being kept clear for pedestrian passage.

K. No performer shall perform with more instruments, props, equipment, merchandise or other items than the performer can reasonably transport or remove at one time.

L. No performer shall utilize a stand-alone umbrella during his or her performance.

M. No performer shall leave his or her instruments, props, equipment, merchandise, or other items unattended.

N. No performer shall perform in contravention of the allowable noise levels and amplified sound registration requirements established by Chapter 8.36 of this code.

O. No performer shall block or obstruct a curb cut.

P. No perf
ormer shall perform after 8 p.m. or before Noon each day of the year.

Q. No performer shall use any animal, reptile, or bird as part of his or her performance.

R. No performer shall sell goods or services as part of his or her performance.

S. No performer shall be allowed to compete with other performers unless they are at least 100 yards away from each other.

PAGE A26
1111
T. No perfor
mer in any park, plaza, piazza, sidewalk my perform at any time unless they have a permit designating the time and place and any conditions allowing them to perform.

SECTION 2. Section 12.04.090 of the El Cajon Municipal Code, 1995, is hereby added to read as follows:

Requirements of Busker or Sidewalk/Street Performer:

Any busker or sidewalk or street performer must receive a business license from the City of El Cajon to perform anywhere within the City public rights of way.

Any busker or sidewalk or street performer who seeks to perform in an area whose district or area is under a current Business Improvement District or Maintenance Assessment contractual agreement with the City of El Cajon, is required to work with the designated management corporation of that area to coordinate any and all sidewalk or street performances or busker activities, in regard to location, time, amplification, size and clean up requirements. These agreements make the respective management entities responsible for the activities and safety in the public rights of way within their designated areas.

Agreements for performance may be made and would be required for any designated public spaces within the jurisdiction of those contracted areas.

12.04.090. Prohibition.

Except as otherwise permitted by this code, no person shall affix, nail, tack, fasten, or otherwise attach, apply, or place, a band, belt, chain, rope, strap, tape, or tie upon any public property including, but not limited to, streetlight standard, fire hydrant, electric light pole, power pole, telephone pole, appurtenance of any such pole, any fixture of the fire PAGE A27
1111
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alarm
system, street sign, traffic signal or devices, parking meter, tree, shrub, tree stake or guard and/or other similar facility installed or maintained within, upon, on, across or over any public right-of-way.

Passed and adopted by the Council of the City of El Cajon, Cal ifornia on the _______ day of , 2023.
___________ ___________________
Mayor
Attest:
_________________________
City Clerk

STATE OF CALIFORNIA

COUNTY OF EL CAJON

CITY OF EL CAJON
____________________________
City Clerk
PAGE A28
2210 COLUMBIA STREET
SAN DIEGO, CA 92101
619.233.5009
WWW.NEWCITYAMERICA.COM
#NEWCITYAMERICA

CREATING BETTER COMMUNITIES FOR TODAY & TOMORROW
4) Create a “Hospitality Task Force” to
promote local restaurants, cafes. An
excellent way to consolidate the restaurant
industry in Downtown is to bring them into a
forum in which common problems can be
dealt with as well as come up with joint
marketing programs. This Task Force can be
led by staff, or an independent PR/Social
Media firm paid for by the PBID funds, under
the Environmental Enhancement part of the
budget.
5) Prioritize Art Alley as a functioning piece of
Downtown (web site shows last posting was
for Art Alley Cat Art Show in Sept. 2022).

Downtown has already established a number
of small physical venues for its Art
component. Art is an economic
development strategy. The Economic
Development Report for the City repeatedly
mentions that Downtown should be an arts
and culture experience. Artists must be
supported and regular art events in Art Alley
can begin to turn around the public
perception of Downtown. The great thing
about Art Alley is that it already exists as a
venue, but only needs to be programmed
and managed. Art has a phenomenal ability
to attract all different types of customers
from a large segment of the County. It would
also fill up hotel rooms and could possibly
allow for weekend in Downtown
complemented by a large, featured
performer at the Magnolia and overnight stay
at one of the local Downtown hotels.
6) Convert current Owners Association to a
501c3. Downtown is currently established as
a California mutual benefit corporation,
whose point is to serve the general public.
501c6 non-profits can lobby and back
candidates or legislative initiatives. District
Management Corporations whose primary
charge is the redevelopment and
improvement of their respective business
district or downtowns, should consider
re-creating themselves as chartable
non-profit corporations or 501c3s. This
would allow the corporation to solicit grants
for specific projects and events from
Foundations or businesses who are looking
for something more than a business expense.

This strategy has been very successful in
Little Italy to pay for and manage its many
public spaces. The improvement to any
Downtown or core business district has
tremendous public benefit which, consistent
with IRS provisions of charitable
organizations, “lowers the burden of
government.” This is a critical component of
the future success of Downtown El Cajon
and could help fund many new initiatives
including cultural activities, educational
activities and public art.

7) Consider expansion down El Cajon Blvd.,
south on Magnolia, East on Main, and South
on El Cajon (see attached map showing
proposed expanded area). The impending
renewal of the PBID should look at
expanding to provide special benefit services
for many businesses up to the Trolley stop as
we as north and south on Johnson. In
addition consideration should be to expand
east on Main Street and maybe south on
Magnolia. Expansion running south on El
Cajon Blvd. should also be considered to
capture the new market rate housing that is
being built. Prioritization should be on
making Main Street up to the Trolley stop as
walkable as possible with consistent
treescape along the north and side of Main
Street up to Johnson. Additionally, the new
market rate housing development just south
of Main on El Cajon Blvd. should be
approached to be included in the renewed
district to create a greater downtown
footprint since many of those new residents
can become loyal customers to the retailers,
restaurants, services, and other businesses in
the core area.

8) Hire staff (either Exec Director or
contracted management) to run the
day-to-day operations of the PBID. The
Board does not have a key staff member
accountable for managing PBID operations.

Operating an organization without staff puts
a heavy and unfair burden on the Board
members who are volunteers. Whether it is
through an individual or through a company,
the PBID Board should seriously consider
using the $150,000 annually that is written in
the current PBID plan for Management. This
would allow consistency in the
implementation of Board decisions, recruit
new Board members and seek new revenues
to supplement the PBID’s annual budget and
services. The key staff member could be an
individual, company or property
management firm – but it must be done
soon.
9) Hire a professional cleaning and
landscaping company or do it in-house:

One thing that Downtown El Cajon needs is
far more landscaping. The Downtown streets
and sidewalks need far more tall deciduous
trees that would allow canopy shade in the
summer and light in the winter months. This
is particularly true in the current peripheral
areas heading westbound on Main to the
Trolley stop. A publicly funded Project that
aggressively plants fast growing deciduous
trees will change the image of Downtown El
Cajon.
10) Seek grants from County Supervisor for
special projects: Many similar districts in the
County are very successful attracting new
grants for both operational needs and special
projects from their respective County
Supervisors’ office. Though not consistently
given, special projects that are consistent
with the Supervisor’s annual goals could help
fund these projects and programs.
11) Begin program of annual seasonal displays:

El Cajon does have a great landscaping
canopy that provides its citizens seasonal
color through the neighborhoods.

Something Downtown can provide its
stakeholders and the general public displays
that accentuate each season. The corners of
the Downtown streets will provide an
excellent venue for Spring, Summer, Fall and
Winter displays. There is a lot that can be
done with art and seasonal displays. Seasonal
displays can also highlight Downtown
through a colorful and thoughtful banner
program.
12) East County Market Nights: The proposed
East County Market Nights in Downtown is
an excellent idea that should be pursued.

Similar evening markets have been very
successful in both Los Angeles, San
Francisco. Locally, Oceanside operates a
successful night market. This is something
that can be pursued, particularly with
underwriters who want to be associated with
entrepreneurial events in Downtown El
Cajon.

It is clear that the City is and has always been a
strong advocate and supporter of Downtown,
both through its annual assessments paid into
the PBID as well as the many capital
improvements that were done, particularly
through the former Redevelopment Agency.

New City America also makes six
recommendations for the City of El Cajon to
consider in the upcoming year.
1) Market Rate Housing Incentives: Create
incentives for expediting new Market Rate
development of Mixed-Use housing
developments in and around Downtown.

Downtown market rate housing will do more
than any other initiative to revitalize
Downtown El Cajon. The new residents
become a new reservoir of disposable
income in a walkable environment. The City
Council appears to be very pro-development
and there is no better place to realize such
new development in the City than Main
Street, Magnolia Street and El Cajon Blvd.
2) Adopt the attached CBD Ordinance: As a
charter city, El Cajon should do what almost
25 other charter cities have done in the state
and adopt a new enabling ordinance that
allows for a new property assessment called
a Community Benefit District or
Neighborhood Improvement District. We
have included a sample ordinance in
Attachment 1 that gives an example on how
to amend the municipal code to provide
such “self-help” programs that can be
implemented anywhere in the City.
3) Adopt Sidewalk Vending ordinance: As
surrounding cities in the County adopt
similar vending ordinances based upon
health and safety provisions, the City of El
Cajon should adopt such an ordinance prior
to it becoming an issue on Main and
Magnolia. The ordinance would provide and
allow for such vending, but with conditions
including insurance, safe passage and
compliance with all City and County health
regulations. (See attachments)
4) Adopt Busker Ordinance: Buskers are
individuals who believe that their singing
and/or playing of amplified music are a
public benefit. That may be true in some
cases but clearly not in all cases. Attached
please find Attachment 3 which proposes a
new busker ordinance that would manage,
not stop, individual buskers playing music in
Downtown with no restrictions.
5) Create standards for redevelopment and
wider sidewalks on the west side: The
walkability of Downtown is one of its key
assets. All new development from El Cajon
Blvd westward to the Trolley stop, should
require minimum 12-foot sidewalks which
would include street trees, pedestrian lights
at the frequency of one every 100 feet as well
as trash receptacles (standard) which at a
minimum should be place at all four corners
of any intersection. This will improve the
walkability of those walking from the Trolley
stop to the core of Downtown.
6) Fund replacement of permanent seating in
the park, replace with movable chairs: The
park at Main Street, across from City Hall,
should be used as a Town Center with
flexibility in its use. The current permanent
benches should be replaced with movable
tables, chairs, and umbrellas. These features
will allow the Downtown PBID to brand itself
on the chairs and umbrellas and allow for
much more comfortable and usable street
furniture. More importantly they can be
removed and replaced as needed to allow for
large gatherings, not bifurcated by
permanent features
City Council
Agenda Report
Agenda Item 10.

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