Agenda packet — El Cajon City Council, July 28, 2026 (part 2 of 2)

The state constitution refers to the requirement that relative benefit received from CBD funded programs and activities be used to determine the amount of assessment paid. Only those properties expected to derive special benefits from CBD funded programs a nd activities may be assessed, and only in an amount proportional to the relative special benefits expected to be received.

General vs. Special Benefits
As provided by Proposition 218, assessment of Downtown El Cajon CBD programs and activities confer a combination of general and special benefits to properties, but the only program benefits that can be assessed are those that provide special benefits to the assessed properties. “Special Benefit” as defined by the California State Constitution, Article XIII (d), means “ a particular and distinct benefit over and above general benefits conferred on real property located in the Downtown El Cajon CBD or to the public at large.” For the purposes of this analysis, “General Benefits” are benefits provided within the Downtown El Cajon CBD that are not special in nature, are not "particular and distinct," and are not over and above the benefits that other city parcels receive.

General benefits are not restricted to benefits conferred only on persons and property outside the assessment district but can include benefits both conferred on real property located in the Downtown El Cajon CBD or to the public at large. “At large” means not limited to any person and means all members of the public, including those who live, work, and shop within the Downtown El Cajon CBD, and not simply transient visitors.

The property uses within the boundaries of the proposed Downtown El Cajon CBD , which will receive special benefits from CBD funded programs and services are currently a mix of retail, service, office, religious, residential, public visitor related, cultural, and parking.

Parcels that receive the special benefit programs, services and improvements outlined in this Management District Plan will attract more customers, employees, tenants , and investors as a result of these programs, services and improvements, thereby increasing business volumes, sales transactions, occupancies, and rental income, and for future residents, make Downtown El Cajon more walkable, attractive, and livable. These benefits are particular and distinct in that they are

22 not provided to non-assessed parcels within or outside of the Downtown El Cajon CBD. Because these programs, services and improvements will only be provided to each individual assessed parcel within the Downtown El Cajon CBD boundaries, these programs, ser vices and improvements will constitute "special benefits.”

Existing City of El Cajon services will not be replaced or duplicated by the Downtown El Cajon CBD funded services . T he purpose of this Downtown El Cajon CBD is to fund supplemental programs, improvements, and services within the CBD boundaries above and beyond what is currently being funded either via normal tax supported methods or other funding sources. The assessments to be levied on parcels within the Downtown El Cajon CBD are for services, programs and improvements directly benefiting each individual parcel within this area and support increased cleanliness, commerce, business attraction and retention, increased commercial property rental income and improved District identity. No CBD funded services, activities or programs will be provided beyond the Downtown El Cajon CBD boundaries.

While every attempt is made to provide CBD services and programs to confer benefits only to those identified assessed parcels within the Downtown El Cajon CBD , the California State Constitution, Article XIII D, was added via Proposition 218 to provide that general benefits exist, either by design or unintentionally, in all assessment Downtown El Cajon CBDs and that a portion of the program costs must be considered attributable to general benefits and assigned a value.

General benefits cannot be funded by assessment revenues. General benefits might be conferred on pa rcels within the Downtown El Cajon CBD, or “spillover” onto parcels surrounding the Downtown El Cajon CBD, or to the public at large who might be passing through the Downtown El Cajon CBD with no intention of transacting business or residing within the Downtown El Cajon CBD or interest in the Downtown El Cajon CBD itself. Empirical assessment engineering analysis throughout California has found that general benefits within a given similar special benefit Downtown El Cajon CBD tend to range from 1-5% of the total costs.

There are three methods that have been used by the Downtown El Cajon CBD Assessment Engineer for determining general and special benefit values within assessment Downtown El Cajon CBDs:

1. The parcel-by-parcel allocation method

2. The program/activity line-item allocation method, and

3. The composite Downtown El Cajon CBD overlay determinant method.

A majority of PBIDs and CBDs in California for which the Assessment Engineer has provided assessment engineering services since the enactment of Proposition 218, have used Method #3, the composite Downtown El Cajon CBD overlay determinant method, which will be used for this CBD. This method of computing the value of general benefit involves a composite of three distinct types of general benefit – general benefit to assessed parcels within the Downtown El Cajon CBD, general benefit to the public at large within the Downtown El Cajon CBD, and general benefit to parcels outside the Downtown El Cajon CBD.

23 Downtown El Cajon CBD Programs and Improvements
The total special and general benefit program activities and budget allocations that will be provided to each individual parcel assessed in the proposed Downtown El Cajon CBD are shown in the chart below:

Total Year 1 – 2026 Special + General Benefit Costs

Category of Special
Benefit Services

Year 1
Annual Amount
(assessments to
fund special
benefits)
Year 1
Non-
Assessment
Costs (general
benefits ratio)
Year 1
Total Costs
(special and
general
benefits)

% of Total
Civil Sidewalks $472,000 $9,628 $481,628 60%
District Identity and
Placemaking
$118,000 $2,407 $120,407 15%
Administration $173,000 $3,530 $176,530 22%
Contingency $23,305 $482 $23,787 3%
Total $786,305 $16,047 $802,352 100%

All program costs associated with general benefits will be derived from sources or credits other than CBD assessments. Sample “other” revenue sources can be derived from special events, grants, volunteer hours , and must simply equal a total of $16, 047 per year, which would equal the general benefit cost of 2% of the computed total CBD cost $7 86,305 from the table above.

Here, program costs are spread among property variables that are common to each parcel include linear frontage, lot or parcel size and building square footage, and residential condominium parcels and benefit zone. Assessed valuation cannot be used as the b asis for revenue generation in the state of California since Proposition 13 sets the assessed valuation at the time of purchase of the parcel, therefore adjacent parcels may be similar in size, but have different assessed valuations. We must therefore spread the assessments among the consistent factors of each parcel, based upon 2025 data.

Explanation of Difference in Benefit Zone Assessments
Benefit Zone 1 parcels will be assessed at a higher rate since they will have the highest frequency of Civil Sidewalks and District Identity services due to the amount of foot traffic in and around the parcels fronting along Main Street and Magnolia Avenue, which represents the core area of the Downtown El Cajon CBD. Benefit Zone 1 properties are the historic core of Downtown El Cajon’s Downtown El Cajon CBD dating back almost 120 years and built around Main Street and Magnolia Avenue. The individual parcels being assessed include high -quality retail, restaurants, services, civic buildings, parking lots and structures, residential, office, hotel , and residential condos and apartments. These parcels will benefit the most from the CBD special benefit services, therefore their assessments have been made to fund the costs of services to these

24 parcels. Civil Sidewalk Services shall be provided approximately 6 – 7 times per week for Benefit Zone 1 parcel owners, based upon a full crew of cleaning and landscaping personnel.

Benefits Zone 2 parcels represent the parcels west of the intersection of El Cajon Boulevard and Main Street, as well as the parcels not fronting along Main Street and Magnolia Avenue to the Interstate 8 freeway. The predominant uses of Benefit Zone 2 parcels are office space, various office and retail, and other commercial uses. Since they will be receiving services 4 - 5 days per week, their annual assessments have been reduced to accommodate this weekly schedule and uses. The costs in Benefit Zone 2 are lower than those of Benefit Zone 1 due to the lack of density in this portion of the Downtown El Cajon CB D and the lack of intense pedestrian activity that is found in Benefit Zone 1 properties, with the core areas around Main Street and Magnolia Avenue.

Linear Frontage Defined
Individual parcels will be assessed for all sides of each parcel fronting a public street. Alley frontage is not assessed. Each side of the parcel (excluding alley areas) will receive Civil Sidewalks special benefit services based upon the frequency of services articulated in this plan, linear front footage data was obtained from the County Assessor’s parcel maps.

Building Square Footage Defined
Building square footage is defined as gross building square footage for any parcel throughout the Downtown El Cajon CBD.

Lot Square Footage Defined
Lot square footage is defined as the total amount of area within the borders of the parcel. The lot square footage of a parcel has been verified by the County Assessor’s parcel maps.

Commercial Condominium Parcels Defined
Ground floor commercial condominiums will be treated as independent “mini” commercial buildings and assessed based on their actual building square footage, the footprint of land they cover or lot size of the commercial condominium , and the amount of direct primary street frontage on the exterior of the building. Ground floor commercial condominiums will pay 100% of the special benefits for the assessment, based upon which benefit zone they are within.

Current and Future Residential Condominium Unit Parcels Defined Current and future residential condominium unit square footage is defined as the livable building square footage within the walls of the condominium residential unit parcel. They are included in a special category to designate their unique special benefits relative to the commercial parcels within the Downtown El Cajon CBD. Unlike the commercial parcels in the Downtown El Cajon CBD, including commercially operated apartment buildings, residential condominium parcels are assessed for building square footage only, and are not assessed for linear frontage and lot square footage.

Current and future residential condominium parcels are assessed as a separate category. These residential condominium individual parcels will be assessed for their unit square footage only at

25 the rate of $0.10 per square foot per year for the first year in Benefit Zone 1 and $0.09 for the first year in Benefit Zone 2. The rationale for assessing future residential condominiums only for the unit square footage rate is provided below.

Residential condominium parcels are assessed differently than multi-unit, market rate apartment rental buildings, as well as legally mandated affordable units due to the frequency of special benefit services required by each parcel as described below. The multi -unit apartment buildings are commercial properties in which the tenant and landlord have a n economic relationship as opposed to residential condominium buildings where individual property owners own separate “air space parcels” on a single floor. Future residential apartment buildings can be bought or sold just like commercial buildings, whereas residential condominium individual units are separately owned and must be individually bought and sold.

Distinctions between residential apartment buildings with tenants and residential condominium building with individual parcel owners are explained as follows:

1. The Davis Sterling Act establishes rules and regulations for residential condominium owners based upon “separate interests” (i.e., ownership rights), as opposed to renters who only have a possessory interest.

2. Generally, residential condominium unit owners demonstrate greater care for their property and concerns about quality-of-life issues due to their investment in real estate.

3. Residential owners and have the right to vote in a Proposition 218 hearing, tenants do not have that right.

4. Residential condominium owners are required to contribute to legally established Homeowners Associations to oversee building maintenance, tenants are not.

5. Residential tenants may have their dwelling units sold or have their rent raised arbitrarily due to the lack of ownership of their residential units.

The assessment methodology has been written to confer special benefits to current and future residential condominium individual assessed parcels since future residential condominium owners have unique expectations about the care and maintenance of the buil ding and its surroundings compared to the interest of residential tenants who have a possessory not an ownership interest.

Exemptions or Reductions in Rates
Under this Management District Plan and consistent with Proposition 218 and Article XIII (D) of the State Constitution, no parcel receiving special benefits from the establishment of a property assessment Downtown El Cajon CBD is exempt from payment of the assessment. There may be adjustments to the related assessments based upon non -functional building square footage or large private parking lots or parking structures due to the lot size of a specific parcel. Those adjustments would be made on a case-by-case basis based upon the determination that lot size and building square footage may not be accessible to the public at large and therefore could not benefit from the services provided by the new Downtown El Cajon CBD. It is up to each parcel owner to inform the Downtown El Cajon CBD Management Corporation of any propose d

26 reduction in annual lot size assessments due to exclusive use of parcel parking lots or structures for their customers and tenants, and which are not open to non-customers.

Calculation of Assessments
The proportionate special benefit derived by each identified parcel shall be determined in relationship to the entirety of the improvement or the maintenance and operation expenses of an improvement, or for the cost of property service being provided. Per California Constitution Article XIII D, Section 2(i), “Special Benefit,” means a particular and distinct benefit over and above general benefits conferred on a real property located in the Downtown El Cajon CBD or to the public at large. No assessment will be imposed on any parcel that exceeds the reasonable cost of the proportional special benefits conferred upon that parcel. Only special benefits are assessable, and these benefits must be separated from any general benefits. Properties are assessed as defined on the County Assessor’s most current parcel maps. The preceding methodology is applied to the database of parcels within the boundaries of the Downtown El Cajon CBD. The process in compiling the property database includes the following steps:
• A report was generated from data obtained from the San Diego County Tax Assessor ’s office.
• A list of properties to be included within the Downtown El Cajon CBD is provided in Section

7. First Year Parcel Assessment Calculation
The annual assessment method to calculate all parcels for Benefit Zone 1 will be:

Total Linear Frontage x $4.00 per foot
+
Total Building Square footage X $0.10 per sq. ft.
+
Total Lot Size x $0.07 per square foot
= TOTAL PARCEL ASSESSMENT
The annual assessment method to calculate the residential condominiums in Benefit Zone 1:

Total Residential Condo Unit Square footage X $0.10 per square foot= Total Parcel Assessment

The annual assessment method to calculate all parcels for Benefit Zone 2 will be:

Total Linear Frontage x $3.50 per square foot
+
Total Building Square footage x $0.09 per square foot
+
Total Lot Size x $0.06 per square foot
=

TOTAL PARCEL ASSESSMENT

27 The annual assessment method to calculate the residential condominiums in Benefit Zone 2:

Total Residential Condo Unit Square footage X $0.09 per square foot= Total Parcel Assessment

Future Development
As a result of continued new development, the Downtown El Cajon CBD will experience the addition or subtraction of assessable commercial and residential buildings or the conversion of vacant parcels into new commercial and residential units. The Management District Plan assessment methodology will reflect all land use changes in the Downtown El Cajon CBD with annual adjustments being submitted to the City, as these assessment calculations and property variable alterations occur. Undeveloped parcels within t he boundaries of the proposed Downtown CBD will pay only for linear frontage and lot size assessments due to the lack of building square footage on the parcel. If that parcel is redeveloped, the building assessments will be levied on that parcel as soon as a certificate of occupancy has been issued to that owner, by the City of El Cajon.

Maximum Annual Assessment Adjustments:

Assessments may be subject to annual increases not to exceed 7% per year. Increases will be determined by the Management Corporation, the Greater Downtown El Cajon Improvement Association, and will vary between 0% and 7% in any given year. The maximum the assessments may be increased is 7% over the previous fiscal year’s base assessments. The absence of increase in any given year does not give the Downtown El Cajon CBD Management Corporation the authority to accumulate increases above 7% in any successive y ear. The following projections illustrate a potential 7% annual increase.

28 Maximum Assessments by Property Variable

Projected Assessments- Benefit Zone 1
Lot Sq. Ft Linear Frontage Bldg. Sq. Ft. Condo Sq. Ft.

Y1 $ 0.070 $ 4.000 $ 0.100 $ 0.100 Y2 $ 0.075 $ 4.280 $ 0.107 $ 0.105 Y3 $ 0.080 $ 4.580 $ 0.114 $ 0.110 Y4 $ 0.086 $ 4.900 $ 0.123 $ 0.116 Y5 $ 0.092 $ 5.243 $ 0.131 $ 0.122

Projected Assessments- Benefit Zone 2
Lot Sq. Ft Linear Frontage Bldg. Sq. Ft. Condo Sq. Ft.

Y1 $ 0.060 $ 3.500 $ 0.090 $ 0.090 Y2 $ 0.064 $ 3.745 $ 0.096 $ 0.095 Y3 $ 0.069 $ 4.007 $ 0.103 $ 0.099 Y4 $ 0.074 $ 4.288 $ 0.110 $ 0.104 Y5 $ 0.079 $ 4.588 $ 0.118 $ 0.109

Government Assessments
The Downtown El Cajon CBD Management Plan assumes that any public or tax -exempt parcels shall pay into the Downtown El Cajon CBD in proportion to the assessments paid for services. The City, County, State, MTS, and other tax-exempt owned properties shall be assessed for building square footage, lot size, and linear frontage based upon the rates in their Benefit Zone as outlined in the management Downtown El Cajon CBD plan. Their assessments will primarily be used to fund the Civil Sidewalks/Safety and Beautification special benefit services from which the y will benefit. However, the District Identity and Placemaking special benefit services share also apply to these properties since they draw public attention and attendance, and the visitors will benefit from the cleanliness, attractiveness, and order that the visitors and employees experience while working at or conducting public business at these public facilities.

APN

Legal Owner
Benefit
Zone

Site Street
Annual
Assessment

Percent
487-172-67-00 CITY OF EL CAJON 1 326 N MAGNOLIA AVE $ 3,570.11 0.45% 487-321-12-00 CITY OF EL CAJON 2 $ 1,562.28 0.20% 488-072-38-00 CITY OF EL CAJON 1 N MAGNOLIA AVE $ 5,642.12 0.72% 488-072-45-00 CITY OF EL CAJON 2 CIVIC CENTER WAY $ 16,075.98 2.04% 488-083-27-00 CITY OF EL CAJON 2 149 REA AVE $ 2,502.02 0.32% 488-111-28-00 CITY OF EL CAJON 1 $ 13,711.74 1.74% 488-111-30-00 CITY OF EL CAJON 1 $ 18,822.65 2.39% 488-192-09-00 CITY OF EL CAJON 1 E DOUGLAS AVE $ 17,001.12 2.16% 488-211-21-00 CITY OF EL CAJON 1 201 E MAIN ST $ 1,435.82 0.18% 488-211-22-00 CITY OF EL CAJON 2 230 E DOUGLAS AVE $ 2,434.50 0.31% 488-212-19-00 CITY OF EL CAJON 2 E LEXINGTON AVE $ 212.50 0.03% 488-212-20-00 CITY OF EL CAJON 2 E DOUGLAS AVE $ 546.38 0.07%

29 488-212-21-00 CITY OF EL CAJON 2 250 E LEXINGTON AVE $ 11,122.74 1.41% 488-212-22-00 CITY OF EL CAJON 2 PRESCOTT AVE $ 3,508.84 0.45% TOTAL $ 98,148.80 12.48%
488-111-32-00 COUNTY OF SAN DIEGO 1 MAGNOLIA AVE N $ 21,734.51 2.76% 488-162-17-00 COUNTY OF SAN DIEGO 1 200 S MAGNOLIA AVE $ 5,056.41 0.64% 488-192-08-00 COUNTY OF SAN DIEGO 1 PRESCOTT AVE $ 8,962.55 1.14% TOTAL $ 35,753.47 4.55%
488-111-35-00 EL CAJON HOUSING 1 E MAIN ST $ 1,750.38 0.22%

488-233-47-00 PACIFIC BELL 1 E MAIN ST $ 6,324.19 0.80%

487-121-24-00 SAN DIEGO GAS & ELECTRIC CO 2 W MAIN ST $ 9,882.58 1.26% 487-121-25-00 SAN DIEGO GAS & ELECTRIC CO 2 W MAIN ST $ 2,764.48 0.35% 487-121-76-00 SAN DIEGO GAS & ELECTRIC CO 2 $ 6,117.00 0.78% 487-121-92-00 SAN DIEGO GAS & ELECTRIC CO 2 W MAIN ST $ 4,362.54 0.55% TOTAL $ 23,126.60 2.94%
487-262-04-00 SD METROPOLITAN TRANSIT DEV BOARD 2 166 S MARSHALL AVE $ 4,930.40 0.63% 487-262-09-00 SD METROPOLITAN TRANSIT DEV BOARD 2 1133 W MAIN ST $ 1,252.86 0.16% 487-273-06-00 SD METROPOLITAN TRANSIT DEV BOARD 2 398 S MARSHALL AVE $ 6,185.62 0.79% TOTAL $ 12,368.88 1.57%
488-111-31-00 STATE OF CALIFORNIA 1 E PARK AVE $ 11,388.00 1.45%

Term
Under the El Cajon local enabling ordinance, the Downtown El Cajon CBD may be established for up to 20 years and shall not exceed 20 years. State law and the local enabling ordinance permits this annual disestablishment of the Downtown El Cajon CBD based upon petition and vote of the property owners. The threshold needed to trigger the balloting for the formation of the Downtown El Cajon CBD is the same as the process for disestablishment of the Downtown El Cajon CBD.

Time and Manner for Collecting Assessments
The Downtown El Cajon CBD assessments will appear as a separate line item on annual property tax bills prepared by the San Diego County Tax Assessor. The assessments are collected at the same time and in the same manner as ad valorem property taxes paid to the County. The assessments have the same lien priority and penalties for delinquent payments as ad valorem property taxes. Any delinquent assessments owed for the first year will be added to the property tax roll for the following year, together with any applicable interest and penalties. The “property owner” means any person shown as the owner/taxpayer on the last equalized assessment roll or otherwise known to be the owner/taxpayer by the City. Publicly owned properties of the City and County shall not be collected by the County Tax Assessor, but rather by manual billing by the City of El Cajon. The first assessments of the new Downtown El Cajon CBD will appear in December 2026 property tax bills.

30 Budget Adjustments
Annual budget surpluses, if any, will be rolled into the following year’s budget. Assessments will be set annually. Revenues from delinquent accounts may be expended in the year they are received.

Disestablishment
California Streets and Highways Code section 36670 as well as the local CBD enabling ordinance provides for the disestablishment of a Downtown El Cajon CBD . Provisions for annual disestablishment of the Downtown El Cajon CBD are provided for in the local enabling ordinance.

Property owners dissatisfied with the results, management or quality of the services may petition the City Council to disestablish the Downtown El Cajon CBD , in the same method in which they petitioned the City Council to establish it. The same petition threshold needed to establish the Downtown El Cajon CBD will also be needed to trigger a disestablishment of the Downtown El Cajon CBD on an annual basis. Section 36670 of the State Streets and Highway Code states:

(b) The city council shall adopt a resolution of intention to disestablish the Downtown El Cajon CBD prior to the public hearing required by this section. The resolution shall state the reason for the disestablishment, shall state the time and place of the public hearing, and shall contain a proposal to dispose of any assets acquired with the revenues of the assessments levied within the property and business improvement Downtown El Cajon CBD. The notice of the hearing on disestablishment required by this section shall be given by mail to the property owner of each parcel or to the owner of each business subject to assessment in the Downtown El Cajon CBD, as appropriate. The city shall conduct the public hearing not less than 30 days after mailing the no tice to the property or business owners. The public hearing shall be held not more than 60 days after the adoption of the resolution of intention.

Unexpended surplus funds will be returned to property owners based upon each property owner’s percentage contribution to the previous fiscal year’s assessments.

Governance
Pursuant to Section 36650 of the California Streets and Highway Code, a Downtown El Cajon CBD Management Corporation or Owners’ Association will review Downtown El Cajon CBD budgets and policies annually within the limitations of the Management Downtown El Cajon CBD Plan.

The Management Corporation must file Annual Reports with the City of El Cajon and will oversee the day-to-day implementation of services as defined in the Management Downtown El Cajon CBD Plan. The current Management District Corporation who will continue the oversight and management of the special benefit services shall be the Grea ter Downtown El Cajon Improvement Association.

“Owners' association" means a private nonprofit entity that is under contract with a city to administer or implement activities and improvements specified in the management Downtown El Cajon CBD plan. An owners' association may be an existing nonprofit enti ty or a newly formed nonprofit entity. An owners' association is a private entity and may not be considered a public entity for any purpose, nor may its board members or staff be considered to be public officials for any purpose. (Streets & Highway. Code § 36612.)

31 Section 5
Downtown El Cajon CBD Rules and Regulations and Governance

There are no specific rules and regulations prescribed for the proposed Downtown El Cajon Community Benefit Downtown El Cajon CBD Management Corporation except that it will adhere to the open meeting and open records provisions of the Ralph M. Brown Act an d will seek to be as open and transparent to the CBD assessees and the public at large as is reasonably possible.

Pursuant to Article V and Section 366 50 of the California Streets and Highway Code, the Downtown El Cajon CBD Management Corporation or Owners’ Association, will review CBD budgets and policies annually within the limitations of the Management District Plan. The Management Corporation will file Annual Reports with the City of El Cajon and will oversee the day-to-day implementation of services as defined in the Management District Plan.

Section 6
Implementation Timetable

The Downtown El Cajon CBD is expected to be established and begin assessing benefiting parcels as of the fourth quarter of calendar year 2026. Due to the timing of revenue collection by the City of El Cajon (for the first year of operation) and the need to establish the new contract between the Owners’ Association and the City of El Cajon, implementation of the Management District Plan and the delivery of services is scheduled to commence in or around the winter of 2027 around January 1, 2027.

32 Section 7
Assessment Roll of Properties Included

APN Annual Assessment
482-282-03-00 $ 1,412.71
482-283-05-00 $ 2,238.61
482-283-06-00 $ 1,785.91
482-283-08-00 $ 1,962.06
482-283-09-00 $ 1,890.88
482-301-03-00 $ 3,442.95
482-301-05-00 $ 2,456.63
482-301-06-00 $ 2,337.52
482-301-09-00 $ 2,035.34
482-301-10-00 $ 12,643.15
482-301-11-00 $ 5,991.11
482-302-01-00 $ 2,922.56
482-302-02-00 $ 2,651.20
482-302-06-00 $ 2,361.22
483-330-22-00 $ 2,606.01
483-330-31-00 $ 2,621.35
483-330-32-00 $ 865.28
483-330-33-00 $ 629.22
483-330-34-00 $ 2,451.48
487-121-24-00 $ 9,882.58
487-121-25-00 $ 2,764.48
487-121-41-00 $ 2,526.34
487-121-50-00 $ 2,111.74
487-121-76-00 $ 6,117.00
487-121-92-00 $ 4,362.54
487-122-40-00 $ 11,669.36
487-122-48-00 $ 8,648.20
487-122-49-00 $ 2,298.55
487-160-04-00 $ 5,023.32
487-160-05-00 $ 1,299.45
487-160-07-00 $ 4,006.78
487-171-37-00 $ 4,401.14
487-171-38-00 $ 4,647.88
487-171-47-00 $ 2,714.36
487-171-50-00 $ 6,098.76
487-172-22-00 $ 1,969.64
487-172-27-00 $ 1,623.50
487-172-49-00 $ 2,780.36
487-172-67-00 $ 3,570.11
487-172-70-00 $ 2,248.18
487-172-75-00 $ 3,894.02
487-173-37-00 $ 3,609.14
487-192-47-00 $ 29,358.42
487-192-48-00 $ 2,119.00
487-192-50-00 $ 2,549.00
487-192-51-00 $ 560.00
487-192-52-00 $ 2,880.50
487-192-53-00 $ 3,838.00
487-192-54-00 $ 1,288.00
487-192-55-00 $ 3,767.70
487-192-56-00 $ 2,031.28
487-262-04-00 $ 4,930.40
487-262-09-00 $ 1,252.86
487-273-06-00 $ 6,185.62
487-281-28-00 $ 699.90
487-281-31-00 $ 973.42
487-281-32-00 $ 1,004.46
487-281-33-00 $ 586.70
487-282-27-00 $ 666.28
487-282-28-00 $ 559.50
487-282-29-00 $ 701.86
487-282-31-00 $ 1,198.42
487-282-32-00 $ 554.46
487-282-33-00 $ 1,364.42
487-301-25-00 $ 1,587.40
487-301-26-00 $ 897.70
487-301-27-00 $ 672.78
487-301-31-00 $ 1,771.31
487-302-29-00 $ 2,522.16
487-302-31-00 $ 3,881.45
487-321-01-00 $ 810.54
487-321-11-00 $ 1,068.57
487-321-12-00 $ 1,562.28
487-321-16-00 $ 1,500.80
487-321-17-00 $ 1,563.34
487-321-24-00 $ 1,176.38
487-321-25-00 $ 1,829.70
487-321-26-00 $ 2,079.62
487-321-27-00 $ 3,969.52
487-321-29-00 $ 1,279.42
487-321-30-00 $ 988.90
487-321-31-00 $ 952.62
487-321-36-00 $ 3,207.78
487-321-38-00 $ 3,814.88
487-321-39-01 $ 130.32
487-321-39-02 $ 130.32
487-321-39-03 $ 153.81
487-321-39-04 $ 130.32
487-321-39-05 $ 153.81
487-321-39-06 $ 130.32
487-321-39-07 $ 130.32

33 487-321-39-08 $ 153.81
487-321-39-09 $ 153.81
487-321-39-10 $ 130.32
487-321-39-11 $ 153.81
487-321-39-12 $ 130.32
487-321-39-13 $ 130.32
487-321-39-14 $ 153.81
487-321-39-15 $ 130.32
487-321-39-16 $ 130.32
487-321-39-17 $ 130.32
487-321-39-18 $ 130.32
487-321-39-19 $ 130.32
487-321-39-20 $ 153.81
487-321-39-21 $ 153.81
487-321-39-22 $ 130.32
487-321-39-23 $ 130.32
487-321-39-24 $ 153.81
487-321-39-25 $ 130.32
487-321-39-26 $ 130.32
487-321-39-27 $ 153.81
487-321-39-28 $ 153.81
487-321-39-29 $ 153.81
487-321-39-30 $ 130.32
487-321-39-31 $ 153.81
487-321-39-32 $ 130.32
487-321-39-33 $ 153.81
487-321-39-34 $ 130.32
487-321-39-35 $ 130.32
487-321-39-36 $ 153.81
487-321-39-37 $ 153.81
487-321-39-38 $ 130.32
487-321-39-39 $ 130.32
487-321-39-40 $ 153.81
487-321-39-41 $ 153.81
487-321-39-42 $ 153.81
487-321-39-43 $ 153.81
487-321-39-44 $ 153.81
487-321-39-45 $ 130.32
487-321-39-46 $ 130.32
487-321-39-47 $ 153.81
487-321-39-48 $ 130.32
487-321-39-49 $ -
487-321-39-50 $ 153.81
487-321-39-51 $ -
487-321-39-52 $ -
487-321-39-53 $ -
487-321-39-54 $ -
487-321-39-55 $ -
487-321-39-56 $ -
487-321-39-57 $ -
487-321-39-58 $ -
487-321-39-59 $ -
487-321-39-60 $ 130.32
487-321-39-61 $ 153.81
487-321-39-62 $ 130.32
487-321-39-63 $ 153.81
487-321-39-64 $ 130.32
487-321-39-65 $ 130.32
487-321-39-66 $ 153.81
487-321-39-67 $ 153.81
487-321-39-68 $ 153.72
487-321-39-69 $ 153.72
487-321-40-01 $ 130.32
487-321-40-02 $ -
487-321-40-03 $ -
487-321-40-04 $ -
487-321-40-05 $ -
487-321-40-06 $ -
487-321-40-07 $ -
487-321-40-08 $ -
487-321-40-09 $ -
487-321-40-10 $ -
487-321-40-11 $ -
487-321-40-12 $ -
487-321-40-13 $ 130.32
487-321-40-14 $ -
487-321-40-15 $ -
487-321-40-16 $ -
487-321-40-17 $ -
487-321-40-18 $ -
487-321-40-19 $ -
487-321-40-20 $ -
487-321-40-21 $ -
487-321-40-22 $ -
487-321-40-23 $ -
487-321-40-24 $ -
487-321-40-25 $ -
487-321-40-26 $ -
487-321-40-27 $ -
487-321-40-28 $ -
487-321-40-29 $ -
487-321-40-30 $ -
487-321-40-31 $ -
487-321-40-32 $ -
487-321-40-33 $ -
487-321-40-34 $ -
487-321-40-35 $ -
487-321-40-36 $ -
487-321-40-37 $ -
487-321-40-38 $ -
487-321-40-39 $ -
487-321-40-40 $ -
487-321-40-41 $ -
487-321-40-42 $ -
487-321-40-43 $ -
487-321-40-44 $ -
487-321-40-45 $ 130.32
487-321-40-46 $ 107.01

34 487-321-40-47 $ 153.81
487-321-42-00 $ -
487-322-07-00 $ 1,941.00
487-322-26-00 $ 4,841.16
487-322-27-00 $ 7,917.42
487-323-17-00 $ 2,887.88
487-323-24-00 $ 2,223.00
487-323-26-00 $ 7,122.42
487-331-02-00 $ 983.44
487-331-03-00 $ 2,041.32
487-331-04-00 $ 433.36
487-331-05-00 $ 5,095.30
487-331-08-00 $ 1,364.60
487-331-09-00 $ 577.08
487-331-19-00 $ 2,842.94
487-331-22-00 $ 3,432.60
487-331-23-00 $ 1,204.66
487-331-24-00 $ 2,732.43
487-331-25-00 $ 2,661.18
487-331-26-00 $ 1,637.30
487-331-29-00 $ 1,574.22
487-331-30-00 $ 928.76
487-331-33-00 $ 3,373.72
487-331-35-00 $ 5,303.73
487-341-04-00 $ 2,536.54
487-341-05-00 $ 5,741.20
487-341-06-00 $ 1,950.39
487-342-07-00 $ 12,185.97
487-351-13-00 $ 1,585.18
487-351-18-00 $ 3,647.32
488-010-13-00 $ 1,916.20
488-010-23-00 $ 2,262.80
488-010-24-00 $ 2,034.26
488-010-25-00 $ 3,857.83
488-010-27-00 $ 2,231.43
488-010-36-00 $ 2,966.16
488-010-38-00 $ 2,580.52
488-010-40-00 $ 4,593.44
488-040-02-00 $ 2,409.47
488-040-07-00 $ 3,854.31
488-040-08-00 $ 5,694.12
488-040-11-00 $ 10,334.60
488-040-13-00 $ 14,197.88
488-040-14-00 $ 6,323.11
488-072-38-00 $ 5,642.12
488-072-43-00 $ 14,082.48
488-072-44-00 $ 724.58
488-072-45-00 $ 16,075.98
488-083-01-00 $ 1,571.06
488-083-02-00 $ 935.51
488-083-03-00 $ 696.26
488-083-04-00 $ 513.08
488-083-05 $ 826.60
488-083-08-00 $ 468.49
488-083-09-00 $ 1,050.00
488-083-11-00 $ 433.76
488-083-12-00 $ 915.80
488-083-13-00 $ 916.50
488-083-14-00 $ 324.00
488-083-15-00 $ 257.50
488-083-16-00 $ 257.50
488-083-17-00 $ 875.00
488-083-18-00 $ 468.00
488-083-19-00 $ 748.70
488-083-20-00 $ 720.00
488-083-21-00 $ 470.00
488-083-22-00 $ 603.49
488-083-23-00 $ 733.49
488-083-24-00 $ 1,925.79
488-083-26-00 $ 1,575.80
488-083-27-00 $ 2,502.02
488-111-24-00 $ 1,704.30
488-111-28-00 $ 13,711.74
488-111-30-00 $ 18,822.65
488-111-31-00 $ 11,338.00
488-111-32-00 $ 21,734.51
488-111-34-00 $ 1,875.07
488-111-35-00 $ 1,750.38
488-111-36-00 $ 1,375.57
488-112-19-00 $ 1,066.89
488-112-20-00 $ 1,039.22
488-112-21-00 $ 2,277.43
488-112-22-00 $ 3,767.30
488-112-23-00 $ 2,786.71
488-112-24-00 $ 1,679.72
488-112-25-00 $ 1,219.62
488-112-43-00 $ 2,256.88
488-112-67-00 $ 1,877.59
488-113-10-00 $ 2,876.92
488-151-02-00 $ 700.50
488-151-12-00 $ 2,263.44
488-151-14-00 $ 1,515.16
488-151-15-00 $ 767.50
488-151-16-00 $ 655.00
488-151-17-00 $ 1,385.86
488-151-21-00 $ 1,476.56
488-151-22-00 $ 4,472.13
488-152-18-00 $ 172.89
488-152-19-00 $ 168.84
488-152-20-00 $ 168.84
488-152-21-00 $ 168.84
488-152-22-00 $ 168.84
488-152-23-00 $ 168.84
488-152-24-00 $ 172.89
488-152-25-00 $ 172.89
488-152-26-00 $ 168.84
488-152-27-00 $ 168.84
488-152-28-00 $ 168.84

35 488-152-29-00 $ 168.84
488-152-30-00 $ 168.84
488-152-31-00 $ 172.89
488-152-32-00 $ 172.89
488-152-33-00 $ 168.84
488-152-34-00 $ 168.84
488-152-35-00 $ 168.84
488-152-36-00 $ 168.84
488-152-37-00 $ 168.84
488-152-38-00 $ 172.89
488-152-39-00 $ 172.89
488-152-40-00 $ 168.84
488-152-41-00 $ 168.84
488-152-42-00 $ 168.84
488-152-43-00 $ 168.84
488-152-44-00 $ 168.84
488-152-45-00 $ 172.89
488-152-47-00 $ 5,287.18
488-152-48-00 $ 512.42
488-152-49-00 $ 1,321.74
488-152-50-00 $ 2,214.54
488-161-01-00 $ 1,148.29
488-161-02-00 $ 559.10
488-161-15-00 $ 2,060.58
488-161-17-00 $ 1,603.94
488-162-13-00 $ 1,340.63
488-162-15-00 $ 2,116.00
488-162-16-00 $ 1,373.08
488-162-17-00 $ 5,056.41
488-162-18-00 $ 1,937.40
488-171-16-00 $ 1,716.34
488-172-01-00 $ 1,780.24
488-172-18-00 $ 924.10
488-172-20-00 $ 1,156.33
488-191-01-00 $ 4,585.62
488-191-02-00 $ 1,279.12
488-191-03-00 $ 582.06
488-191-04-00 $ 5,626.12
488-191-05-00 $ 1,393.06
488-191-06-00 $ 1,016.06
488-191-07-00 $ 1,608.06
488-191-08-00 $ 1,578.26
488-191-09-00 $ 512.60
488-191-11-00 $ 350.00
488-191-12-00 $ 171.50
488-191-13-00 $ 171.50
488-191-14-00 $ 2,065.34
488-191-15-00 $ -
488-191-16-00 $ 974.70
488-192-08-00 $ 8,962.55
488-192-09-00 $ 17,001.12
488-200-01-00 $ 1,311.44
488-200-02-00 $ 1,026.50
488-200-56-00 $ 2,419.06
488-211-01-00 $ 2,894.12
488-211-02-00 $ 692.26
488-211-03-00 $ 378.80
488-211-04-00 $ 1,697.76
488-211-05-00 $ 2,285.12
488-211-06-00 $ 598.56
488-211-07-00 $ 1,291.90
488-211-15-00 $ 888.86
488-211-18-00 $ 1,451.65
488-211-20-00 $ 2,026.71
488-211-21-00 $ 1,435.82
488-211-22-00 $ 2,434.50
488-212-17-01 $ 64.62
488-212-17-02 $ 69.75
488-212-17-03 $ 65.61
488-212-17-04 $ 118.53
488-212-17-05 $ 69.75
488-212-17-06 $ 74.88
488-212-17-07 $ 77.49
488-212-17-08 $ 69.75
488-212-17-09 $ 118.53
488-212-17-10 $ 75.60
488-212-17-11 $ 69.75
488-212-17-12 $ 102.87
488-212-17-13 $ 76.50
488-212-17-14 $ 56.61
488-212-17-15 $ 56.61
488-212-17-16 $ 76.50
488-212-19-00 $ 212.50
488-212-20-00 $ 546.38
488-212-21-00 $ 11,122.74
488-212-22-00 $ 3,508.84
488-221-30-00 $ 2,726.66
488-221-31-00 $ 933.63
488-221-32-00 $ 717.71
488-221-33-00 $ 1,693.86
488-222-01-00 $ 2,469.42
488-222-21-00 $ 5,099.34
488-231-03-00 $ 931.96
488-231-04-00 $ 322.22
488-231-05-00 $ 1,086.60
488-231-10-00 $ 1,649.78
488-231-12-00 $ 995.20
488-231-17-00 $ 1,500.00
488-231-18-00 $ 2,811.84
488-231-19-00 $ 1,500.00
488-231-22-00 $ 2,040.90
488-231-23-00 $ 7,948.44
488-231-24-00 $ 1,250.00
488-231-25-00 $ 1,082.98
488-231-26-00 $ 4,318.63
488-232-03-00 $ 1,836.80
488-232-04-00 $ 1,386.40
488-232-31-00 $ 1,701.00

36 488-232-34-00 $ 1,633.56
488-233-02-00 $ 2,091.65
488-233-03-00 $ 665.50
488-233-04-00 $ 917.70
488-233-05-00 $ 945.50
488-233-06-00 $ 795.30
488-233-07-00 $ 665.50
488-233-08-00 $ 769.50
488-233-47-00 $ 6,324.19
488-233-53-00 $ 577.80
488-233-55-00 $ 9,745.53
488-241-41-00 $ 3,422.92

0 ATTACHMENT 1

DOWNTOWN EL CAJON

COMMUNITY BENEFIT DISTRICT
(DECCBD)

ASSESSMENT ENGINEER’S
REPORT

Being Established for a 20-year Term Pursuant to the City of El Cajon’s Community Benefit Ordinance, Chapter 2.90 added to Title 2 of the El Cajon Municipal Code

Prepared by
Edward V. Henning
California Registered Professional Engineer # 26549
Edward Henning & Associates

July 22, 2026

v 3.0

DOWNTOWN EL CAJON CBD – ASSESSMENT ENGINEER’S REPORT

1 ASSESSMENT ENGINEER’S REPORT

To Whom It May Concern:

I hereby certify to the best of my professional knowledge and experience that each of the i dentified benefiting assessed properties located within the proposed Downtown El Cajon Community Benefit District ("DECCBD") being established for 20 years will receive a special benefit over and above the benefits conferred on the public at large and that the amount of the proposed assessment is proportional to, and no greater than the benefits conferred on each respective property . As required by State Law, I have personally prepared this entire Report and hereby attest to all of its contents.

Introduction

This report serves as the “detailed engineer’s report” required by Section 4 of Article XIII D of the California Constitution to support the benefit property assessments to be levied within the proposed DECCBD in the City of El Cajon, California, being established for 20 years. The discussion and analysis contained within this Report constitute the required “nexus” of rationale between assessment amounts levied and special benefits derived by real properties within the proposed DECCBD.

July 22, 2026
3/31/28
Prepared by Edward V. Henning, California Registered Professional Engineer # 26549 RPE#26549
Edward V. Henning Date
(NOT VALID WITHOUT SIGNATURE AND CERTIFICATION SEAL HERE)

DOWNTOWN EL CAJON CBD – ASSESSMENT ENGINEER’S REPORT

2 Background
The DECCBD is a property-based benefit assessment type district being established for 20 years, pursuant to the City of El Cajon’s Community Benefit Ordinance (the “Ordinance”), Chapter 2.90 added to Title 2 of the El Cajon Municipal Code . The CBD Ordinance was modeled after Section 36600 et seq. of the California Streets and Highways Code (as amended), also known as the Property and Business Improvement District Law of 1994 (the “Act”). Due to the benefit assessment nature of assessments levied within a community benefit district (“ CBD”), district program costs are to be distributed amongst all identified benefiting properties based on the proportion ate amount of special program benefit each property is projected to derive from the assessments levied. Only those properties expected to derive special benefits from CBD-funded programs and activities may be assessed , and only in an amount proportionate to the special benefits expected to be conferred on each assessed property.

Article XIII D Section 4 California Constitution
Procedures and Requirements

Proposition 218, approved by the voters of California in November of 1996, adds a supplemental array of procedures and requirements to be carried out prior to levying a property -based assessment like the DECCBD. These requirements are in addition to requirements imposed by State and local assessment enabling laws. These requirements were “chaptered” into law as Article XIII D Sect of the California Constitution (hereinafter Article XIII D).

Since Article XIII D provisions will affect all subsequent calculations to be made in the final assessment formula for the DECCBD, these supplemental requirements will be taken into account. The key provisions of Article XIII D, along with a description of how the DECCBD complies with each of these provisions, are delineated below.

(Note: All section references below pertain to Article XIII D of the California Constitution):

DOWNTOWN EL CAJON CBD – ASSESSMENT ENGINEER’S REPORT

3 Finding 1. From Section 4(a): “Identify all parcels which will have a special benefit conferred upon them and upon which an assessment will be imposed.”

Boundaries
The proposed Downtown El Cajon CBD consists of approximately 44 square blocks (blocks vary in size on each side of both Main Street and Magnolia Street), consisting of 427 parcels (373 currently assessed) owned by 284 property owners. A list of all parcels included in the proposed DECCBD is shown as Appendix 1, attached to this Report with their respective San Diego County assessor parcel number. The boundary of the proposed DECCBD and parcels within it are shown on the map of the DECCBD attached as Appendix 2 to this Report, which shall govern for the purposes of identifying assessed parcels.

Benefit Zones There are two benefit zones in the proposed DECCBD.

Zone 1: Core Area:

In general, Zone 1 includes Main Street from the intersection of El Cajon Boulevard and Main Street on the west and Roanoke Street and Avocado Avenue on the east. Additionally, Zone 1 includes parcels from the intersection of Interstate 8 and Magnolia Avenue on the north and all parcels fronting along Magnolia Avenue southward to the north side of the intersection of Lexington Avenue and Magnolia Avenue on the south.

Zone 2: All Other Areas
In general, Zone 2 includes the peripheral parcels of the Downtown El Cajon CBD that do not front along Main Street and Magnolia Avenue and are not included in Zone 1.

DECCBD Boundary and Zone Rationale
The Downtown El Cajon CBD boundaries are comprised of parcels that highlight restaurants, retailers, services, office buildings, market rate and residential condominiums apartment units, hotels, industrial and civic buildings. Benefit Zone 1 properties front along Main Street from Roanoke Street on the east to El Cajon Boulevard/Main Street intersection on the west. Benefit Zone 1 parcels represent the core of the Downtown El Cajon CBD and are expected, due to the nature of the land uses, to derive the grea test benefit from the establishment of the Downtown El Cajon Community Benefit Downtown El Cajon CBD.

Benefit Zone 2 parcels are to be found west of the intersection of El Cajon Boulevard and Main Street running westward along Main Street up to the Metropolitan Transit System Station , parcels along both sides of El Cajon Boulevard from Main Street to Johnson Avenue, as well as parcels, that by and large, do not front along Magnolia Avenue north of Lexington Avenue on the south and Interstate 8 on the north.

Benefit Zone 2 parcels will derive special benefits like Benefit Zone 1; however, the frequency of Benefit Zone 2 services shall be approximately 4 - 5 days per week as compared to 6 - 7 days a week for Benefit Zone 1 parcels.

Northern Boundary -
The northern boundary of the proposed Downtown El Cajon CBD includes all parcels on the border along the Interstate 8 freeway and includes parcels 483 -330-022 and 483 -330-034 on the northeast side of the Downtown El Cajon CBD as well as parcel 482-301-006, on the northwest corner. No Downtown El Cajon CBD special benefit services shall be provided north of the northern boundary of the Downtown El Cajon

DOWNTOWN EL CAJON CBD – ASSESSMENT ENGINEER’S REPORT

4 CBD which ends at the southern side of Interstate 8.

Western Boundary
The western boundary of the proposed Downtown El Cajon CBD includes the parcels at the intersection of Marshall Avenue and Main Street including the three corner parcels at that intersection. The three parcels at the intersection of Marshall Avenue and Main Street do NOT include the parcel at the northwest corner of the intersection as it is a new car dealership which will not benefit from the services of the proposed Downtown El Cajon CBD.

The three most western parcels of the Downtown El Cajon CBD shall include parcels 487 -121-041, 487- 281-028 and the entire Metropolitan Transit Station Trolley stop which includes parcels 487-262-004, 487- 262-009 and 487-273-006. No Downtown El Cajon CBD programs and services will be provided west of the western Downtown El Cajon CBD boundary.

Southern Boundary:

The southern boundary of the proposed Downtown El Cajon CBD includes the following parcels that includes the expansion parcels on both sides of El Cajon Boulevard, ending at the roundabout, ending at parcels 487-321-026 and 487-323-017. The southern boundary then continues on the south side of Douglas Avenue from parcel 487 -342-029 continuing along the south side of Douglas ending at parcel 487 -342- 019 ending at the intersection of Douglas and Van Houten Avenues. The southern boundary then jogs southward along the east side of Van Houten Avenue ending at parcel 487 -331-009. The southern boundary continues along the south side of Lexington Avenue, running eastward to include all of the parcels on the south side of the street, ending at parcel 488 -241-041. The Downtown El Cajon CBD southern boundary then runs northward along the west side of Avocado Avenue and includes the parcels running eastward on the north side of Douglas Avenue including parcels ending at parcel 488 -233-047 at northwestern intersection of South Lincoln Avenue and Douglas Avenue. No Downtown El Cajon CBD programs and services will be provided south of the southern Downtown El Cajon CBD boundary

Eastern Boundary:

The eastern boundary of the the Downtown El Cajon CBD starts at the western side of the inte rsection of Lincoln Avenue and Main Street, parcel 488-233-047 and crosses Main Street northward to include parcel 488-113-010. The eastern boundary of the Downtown El Cajon CBD then continues northward and includes parcel 488 -112-024 and 488 -112-025 and then runs northward on the west side of Ballantyne Street including parcel 488-040-002. The eastern boundary then runs northwest to include the eastern side of parcels 488-040-011, 488-040-014 on the west side of Connecticut Avenue. The eastern boundary then crosses northward to Wells Avenue including parcels at the northwestern intersection of Wells Avenue and Graves Avenue including parcels 488 -010-013. The eastern boundary then continues in a northwestern direction including the eastern side of the parcels fronting Magnolia Avenue from parcel 488 -010-025 ending at parcel 483 -330-022 ending at the intersection of Interstate 8 and Magnolia Avenue. No Downtown El Cajon CBD programs and services will be provided east of the eastern Downtown El Cajon CBD boundary.

Summary
All identified parcels within the above -described boundaries and zones shall be assessed to fund supplemental special benefit programs, services and improvements as outlined in the Plan and in this Report.

All DECCBD funded services, programs and improvements provided within the above-described boundaries shall confer special benefit to identified assessed parcels inside the DECCBD boundaries and none will be provided outside of the DECCBD. Each assessed parcel within the DECCBD will proportionately specially

DOWNTOWN EL CAJON CBD – ASSESSMENT ENGINEER’S REPORT

5 benefit from the DECCBD funded Civil Sidewalks -Safety-Cleanliness, District Identity -Placemaking, Administration and Contingency-Reserve as described in more detail under “Work Plan”, beginning on page 12 of this Report. These services, programs and improvements are intended to improve commerce, employment, rents and commercial and residential occupancy rates of parcels and businesses within the DECCBD by reducing litter and debris , marketing the available goods and services and installing beautification elements, each considered necessary in a competitive properly managed business district . All DECCBD funded services programs and improvements are considered supplemental, above normal base level services provided by the City of El Cajon and are only provided for the special benefit of assessed parcels within the boundaries of the DECCBD.

A list of all parcels included in the proposed DECCBD is shown as Appendix 1, attached to this Report with their respective San Diego County assessor parcel number. The boundary of the proposed DECCBD and parcels within it are shown on the map of the DECCBD attached as Appendix 2 to this Report , which shall govern for the purposes of identifying assessed parcels.

Finding 2. From Section 4(a): “Separate general benefits (if any) from the special benefits conferred on parcel(s). Only special benefits are assessable. “

QUANTITATIVE BENEFIT ANALYSIS

As stipulated in Article XIII D, assessment district programs and activities confer a combination of general and special benefits, but the only program benefits that can be assessed are those that provide special benefit to the assessed properties. For the purposes of this analysis, a “ general benefit” is hereby defined as: “A benefit to properties in the area and in the surrounding community or benefit to the public in general resulting from the improvement, activity, or service to be provided by the assessment levied”. “Special benefit” as defined by Article XIII D means a distinct benefit over and above general benefits conferred on real property located in the district.

The property uses within the boundaries of the DECCBD that will receive special benefits from DECCBD funded programs and services are currently restaurants, retailers, services, office buildings, market rate and residential condominiums, apartment units, hotels, industrial and civic buildings . No parcels within the DECCBD are zoned solely residential. Services, programs and improvements provided and funded by the DECCBD are primarily designed to provide special benefits as described below to identified assessed parcels and the array of land uses within the boundaries of the DECCBD.

The proposed DECCBD programs, improvements and services and Year 1 – 2027 budget allocation are as follows:

Year 1 – 2027 DECCBD Special Benefit Cost Allocations (Assessment Revenue Only)

BENEFIT
ZONE
CIVIL

SIDEWALKS -

SAFETY -

CLEANLINESS

DISTRICT

IDENTITY -

PLACEMAKING

ADMINISTRATION

CONTINGENCY-
RESERVE TOTAL $
TOTAL
%
% 60.0276% 15.0069% 22.0016% 2.9639% 100.00%
1 $243,496 $60,874 $89,247 $12,023 $405,640 51.5881%
2 $228,504 $57,126 $83,753 $11,282 $380,665 48.4119%
TOTAL $472,000 $118,000 $173,000 $23,305 $786,305 100.00%

DOWNTOWN EL CAJON CBD – ASSESSMENT ENGINEER’S REPORT

6 Assessed parcels are conferred proportionate special benefits from all DECCBD funded programs, services and improvements which are intended to attract more customers, users, visitors, employees, tenants and investors. DECCBD programs, services and improvements are designed to increase business volumes, sales transactions, occupancies and rental income. These programs, services and improvements are designed to improve commerce and aesthetic appeal for owners, tenants, patrons, visitors and employees of these parcels within the DECCBD by reducing litter and debris , marketing the available goods and services and installing beautification elements, each considered necessary in a competitive properly managed business district.

These benefits are particular and distinct to each and every identified and assessed parcel within the DECCBD and are not provided to non -assessed parcels outside of the DECCBD. These programs, services and improvements will only be provided to each individual assessed parcel within the DECCBD boundaries and, in turn, confer proportionate special benefits to each assessed parcel.

In the case of the DECCBD, the very nature of the purpose of this CBD is to fund supplemental programs, services and improvements to assessed parcels within the DECCBD boundaries above and beyond what is being currently funded either via normal tax supported methods or other funding sources. All benefits derived from the assessments to be levied on assessed parcels within the DECCBD are for services, programs and improvements directly and specially benefiting each individual assessed parcel within the DECCBD. No DECCBD funded services, activities or programs will be provided outside of the DECCBD boundaries.

While every attempt is made to provide DECCBD services and programs to confer special benefits only to those identified assessed parcels within the DECCBD, Article XIII D stipulates that general benefits exist (either by design or unintentional) in all assessment districts and that a portion of the program costs must be considered attributable to general benefits and assigned a value. General benefits cannot be funded by assessment revenues.

Empirical assessment engineering analyses throughout California have found that general benefits within a given assessment district tend to range from 2-6% of the total costs. A majority of assessment districts in California for which this Assessment Engineer has provided assessment engineering services in conformance with Article XIII D have used the composite district overlay determinant method of computing general benefits which will be used for the DECCBD. This method of computing the value of general benefit involves a composite of three distinct types of general benefit – general benefit to assessed parcels within the DECCBD, general benefit to the public at large within the DECCBD and general benefit to parcels outside the DECCBD.

General Benefit – Assessed Parcels within the DECCBD
DECCBD funded programs are narrowly designed and carefully implemented to specially benefit the assessed DECCBD parcels and are only provided for the special benefit to each and every assessed parcel within the DECCBD. It is the opinion of this Engineer, based on over 30 years of professional assessment engineering experience, that nearly 100% of benefits conferred on the 374 assessed parcels within the DECCBD are distinct and special. In the case of the DECCBD, it is projected that there are 0.25% general benefits conferred on these parcels. This high ratio of special benefits to general benefits is because the DECCBD funded programs and services are specially geared to the unique needs of each parcel within the DECCBD and are directed specially only to these parcels within the DECCBD. This concept is further

DOWNTOWN EL CAJON CBD – ASSESSMENT ENGINEER’S REPORT

7 reinforced by the proportionality of special benefits conferred on each parcel within the DECCBD as determined by the special benefit assessment formula as it is applied to the unique and varying property characteristics of each parcel and the benefit zone in which it is located . The computed 0.2 5% general benefit value on the 373 assessed parcels within the DECCBD equates to $1,966 or (.0025 x $786,305).

General Benefits – Spillover to Outside Parcels
While DECCBD programs and services will not be provided directly to parcels outside the DECCBD boundaries, it is reasonable to conclude that DECCBD services may confer an indirect general benefit on parcels adjacent to the DECCBD boundaries. An inventory of the DECCBD boundaries finds that the DECCBD is immediately surrounded by 136 parcels. Of these, 25 are commercial/industrial zoned parcels with commercial/industrial uses and 111 are residentially used parcels or public/non-profit owned parcels with public/non-profit uses.

The 136 parcels directly outside the DECCBD boundaries can reasonably be assumed to receive some indirect general benefit as a result of DECCBD funded programs, services and improvements. Based on over 30 years of assessment engineering experience, it is the opinion of this Engineer that a benefit factor of 1.0 be attributed to the 373 assessed parcels within the DECCBD, a benefit factor of 0.05 be attributed to general benefits conferred on the 25 commercial/industrial parcels and uses located adjacent to or across the street from assessed parcels within the DECCBD, and a benefit factor of 0.010 be attributed to general benefits conferred on the 111 residential or publicly owned/non-profit parcels and uses located adjacent to or across the street from assessed parcels within the DECCBD. The cumulative dollar value of this general benefit type equates to $4,975 ($2,635 + $2,340) as delineated in the following Table:

Parcel Type Quantity Benefit
Factor
Benefit
Units
Benefit
Percent
Benefit
Value
Assessed Parcels Within District 373 1.0000 373.000 99.3713% $786,305 Comm Parcels Out 25 0.0500 1.250 0.3330% $2,635
Other Parcels Out 111 0.0100 1.110 0.2957% $2,340
SUBTOTAL 375.360 100.00% $791,280

General Benefit - Public At Large
While the DECCBD funded programs are narrowly designed and carefully implemented to specially benefit the assessed DECCBD parcels and are only provided for the special benefit to each and every assessed parcel within the DECCBD, these programs also provide general benefits to the public at large within the DECCBD.

For the proposed DECCBD activities, assessment engineering experience in California has found that generally over 9 5% of people moving about within similar district boundaries are engaged in business related to assessed parcels and businesses contained located within them, while the public at large “just passing through” is typically 5% or less.

Based on the nature of the proposed DECCBD funded programs and over 30 years of assessment engineering experience, it is the opinion of this Assessment Engineer that districtwide general benefit factors for each of the DECCBD funded special benefit program element costs that provide a general benefit to the public at large are as shown in the Table below. These factors are applied to each program element cost in order to compute the dollar and percent value of districtwide general benefits to the public

DOWNTOWN EL CAJON CBD – ASSESSMENT ENGINEER’S REPORT

8 at large. The total dollar value of this general benefit type, public at large, equates to $16,047 as delineated in the following Table:

A B C E
Program Element Dollar
Allocation
General
Benefit
Percent
General
Benefit
Factor
General Benefit
Value (A x C)
CIVIL SIDEWALKS - SAFETY - CLEANLINESS $472,000 1.50% 0.0150 $9,628 DISTRICT IDENTITY - PLACEMAKING $118,000 0.50% 0.0050 $2,407 ADMINISTRATION $173,000 0.50% 0.0050 $3,530
CONTINGENCY-RESERVE $23,305 0.50% 0.0050 $482
TOTAL $786,305 $16,047

Composite General Benefit
Based on the general benefit values delineated in the three sections above, the total value of general benefits conferred on assessed parcels within the DECCBD, the public at large and spillover to parcels outside the DECCBD equates to $ 16,047 ($9,628+$2,407+$3,530+$482). Total program costs are estimated to be $802,352. This Assessment Engineer has determined that the general benefit value portion of this equates to $15,593 or 1.9445% of the total estimated DECCBD program costs. The general benefit percentage will now be conservatively rounded up to 2.0% of the total program costs or $16,047 with the total program costs now at $802,352. Subtracting the composite general benefit value of $16,047 from the total estimated program cost of $802,352 results in a special benefit value of $786,305. This is the total amount of assessments to be levied on the 373 assessed parcels in the proposed DECCBD for Year 1 - 2027. General benefit costs of $16,047 will need to be funded by other non-assessment sources.

A breakdown of projected special and general benefit costs for each year of first 10 years of the proposed 20-year term is shown in the following Table:

Year 1-10 Special + Districtwide General Benefits

YR ZONE PROGRAM CATEGORY

SPECIAL

BENEFITS

GENERAL

BENEFITS
TOTAL

BENEFITS
% OF
TOTAL
YR 1 - 2027 1 CIVIL SIDEWALKS - SAFETY - CLEANLINESS $243,496 $4,969 $248,465 60.0276% DISTRICT IDENTITY - PLACEMAKING $60,874 $1,242 $62,116 15.0069% ADMINISTRATION $89,247 $1,821 $91,068 22.0016%
CONTINGENCY-RESERVE $12,023 $246 $12,269 2.9639%
TOTAL $405,640 $8,278 $413,918 100.0000%

2 CIVIL SIDEWALKS - SAFETY - CLEANLINESS $228,504 $4,664 $233,168 60.0276% DISTRICT IDENTITY - PLACEMAKING $57,126 $1,166 $58,292 15.0069% ADMINISTRATION $83,753 $1,709 $85,462 22.0016%
CONTINGENCY-RESERVE $11,282 $230 $11,512 2.9639%
TOTAL $380,665 $7,769 $388,434 100.0000%

1&2 CIVIL SIDEWALKS - SAFETY - CLEANLINESS $472,000 $9,633 $481,633 60.0276% 1&2 DISTRICT IDENTITY - PLACEMAKING $118,000 $2,408 $120,408 15.0069% 1&2 ADMINISTRATION $173,000 $3,530 $176,530 22.0016%

DOWNTOWN EL CAJON CBD – ASSESSMENT ENGINEER’S REPORT

9 1&2 CONTINGENCY-RESERVE $23,305 $476 $23,781 2.9639%
1&2 TOTAL $786,305 $16,047 $802,352 100.0000%

YR ZONE PROGRAM CATEGORY

SPECIAL

BENEFITS

GENERAL

BENEFITS
TOTAL

BENEFITS
% OF
TOTAL
YR 2 - 2028 1 CIVIL SIDEWALKS - SAFETY - CLEANLINESS $260,541 $5,317 $265,858 60.0276% DISTRICT IDENTITY - PLACEMAKING $65,135 $1,329 $66,464 15.0069% ADMINISTRATION $95,494 $1,948 $97,442 22.0016%
CONTINGENCY-RESERVE $12,865 $263 $13,128 2.9639%
TOTAL $434,035 $8,857 $442,892 100.0000%

2 CIVIL SIDEWALKS - SAFETY - CLEANLINESS $244,499 $4,990 $249,489 60.0276% DISTRICT IDENTITY - PLACEMAKING $61,125 $1,248 $62,373 15.0069% ADMINISTRATION $89,616 $1,829 $91,445 22.0016%
CONTINGENCY-RESERVE $12,072 $246 $12,318 2.9639%
TOTAL $407,312 $8,313 $415,625 100.0000%

1&2 CIVIL SIDEWALKS - SAFETY - CLEANLINESS $505,040 $10,307 $515,347 60.0276% 1&2 DISTRICT IDENTITY - PLACEMAKING $126,260 $2,577 $128,837 15.0069% 1&2 ADMINISTRATION $185,110 $3,777 $188,887 22.0016%
1&2 CONTINGENCY-RESERVE $24,937 $509 $25,446 2.9639%
1&2 TOTAL $841,347 $17,170 $858,517 100.0000%

YR ZONE PROGRAM CATEGORY

SPECIAL

BENEFITS

GENERAL

BENEFITS
TOTAL

BENEFITS
% OF
TOTAL
YR 3 - 2029 1 CIVIL SIDEWALKS - SAFETY - CLEANLINESS $278,779 $5,689 $284,468 60.0276% DISTRICT IDENTITY - PLACEMAKING $69,694 $1,422 $71,116 15.0069% ADMINISTRATION $102,179 $2,084 $104,263 22.0016%
CONTINGENCY-RESERVE $13,766 $281 $14,047 2.9639%
TOTAL $464,418 $9,476 $473,894 100.0000%

2 CIVIL SIDEWALKS - SAFETY - CLEANLINESS $261,614 $5,339 $266,953 60.0276% DISTRICT IDENTITY - PLACEMAKING $65,404 $1,335 $66,739 15.0069% ADMINISTRATION $95,889 $1,957 $97,846 22.0016%
CONTINGENCY-RESERVE $12,917 $263 $13,180 2.9639%
TOTAL $435,824 $8,894 $444,718 100.0000%

1&2 CIVIL SIDEWALKS - SAFETY - CLEANLINESS $540,393 $11,028 $551,421 60.0276% 1&2 DISTRICT IDENTITY - PLACEMAKING $135,098 $2,757 $137,855 15.0069% 1&2 ADMINISTRATION $198,068 $4,041 $202,109 22.0016%
1&2 CONTINGENCY-RESERVE $26,683 $544 $27,227 2.9639%
1&2 TOTAL $900,242 $18,370 $918,612 100.0000%

YR ZONE PROGRAM CATEGORY

SPECIAL

BENEFITS

GENERAL

BENEFITS
TOTAL

BENEFITS
% OF
TOTAL
YR 4 - 2030 1 CIVIL SIDEWALKS - SAFETY - CLEANLINESS $298,294 $6,087 $304,381 60.0276% DISTRICT IDENTITY - PLACEMAKING $74,573 $1,522 $76,095 15.0069% ADMINISTRATION $109,332 $2,230 $111,562 22.0016%
CONTINGENCY-RESERVE $14,730 $301 $15,031 2.9639%
TOTAL $496,929 $10,140 $507,069 100.0000%

2 CIVIL SIDEWALKS - SAFETY - CLEANLINESS $279,927 $5,713 $285,640 60.0276%

DOWNTOWN EL CAJON CBD – ASSESSMENT ENGINEER’S REPORT

10 DISTRICT IDENTITY - PLACEMAKING $69,982 $1,428 $71,410 15.0069% ADMINISTRATION $102,601 $2,094 $104,695 22.0016%
CONTINGENCY-RESERVE $13,821 $281 $14,102 2.9639%
TOTAL $466,331 $9,516 $475,847 100.0000%

1&2 CIVIL SIDEWALKS - SAFETY - CLEANLINESS $578,221 $11,800 $590,021 60.0276% 1&2 DISTRICT IDENTITY - PLACEMAKING $144,555 $2,950 $147,505 15.0069% 1&2 ADMINISTRATION $211,933 $4,324 $216,257 22.0016%
1&2 CONTINGENCY-RESERVE $28,551 $582 $29,133 2.9639%
1&2 TOTAL $963,260 $19,656 $982,916 100.0000%

YR ZONE PROGRAM CATEGORY

SPECIAL

BENEFITS

GENERAL

BENEFITS
TOTAL

BENEFITS
% OF
TOTAL
YR 5 - 2031 1 CIVIL SIDEWALKS - SAFETY - CLEANLINESS $319,175 $6,513 $325,688 60.0276% DISTRICT IDENTITY - PLACEMAKING $79,793 $1,629 $81,422 15.0069% ADMINISTRATION $116,985 $2,386 $119,371 22.0016%
CONTINGENCY-RESERVE $15,761 $322 $16,083 2.9639%
TOTAL $531,714 $10,850 $542,564 100.0000%

2 CIVIL SIDEWALKS - SAFETY - CLEANLINESS $299,522 $6,113 $305,635 60.0276% DISTRICT IDENTITY - PLACEMAKING $74,881 $1,528 $76,409 15.0069% ADMINISTRATION $109,783 $2,241 $112,024 22.0016%
CONTINGENCY-RESERVE $14,788 $301 $15,089 2.9639%
TOTAL $498,974 $10,183 $509,157 100.0000%

1&2 CIVIL SIDEWALKS - SAFETY - CLEANLINESS $618,697 $12,626 $631,323 60.0276% 1&2 DISTRICT IDENTITY - PLACEMAKING $154,674 $3,157 $157,831 15.0069% 1&2 ADMINISTRATION $226,768 $4,627 $231,395 22.0016%
1&2 CONTINGENCY-RESERVE $30,549 $623 $31,172 2.9639%
1&2 TOTAL $1,030,688 $21,033 $1,051,721 100.0000%

YR ZONE PROGRAM CATEGORY

SPECIAL

BENEFITS

GENERAL

BENEFITS
TOTAL

BENEFITS
% OF
TOTAL
YR 6 - 2032 1 CIVIL SIDEWALKS - SAFETY - CLEANLINESS $341,517 $6,969 $348,486 60.0276% DISTRICT IDENTITY - PLACEMAKING $85,379 $1,743 $87,122 15.0069% ADMINISTRATION $125,174 $2,553 $127,727 22.0016%
CONTINGENCY-RESERVE $16,864 $345 $17,209 2.9639%
TOTAL $568,934 $11,610 $580,544 100.0000%

2 CIVIL SIDEWALKS - SAFETY - CLEANLINESS $320,489 $6,541 $327,030 60.0276% DISTRICT IDENTITY - PLACEMAKING $80,123 $1,635 $81,758 15.0069% ADMINISTRATION $117,468 $2,398 $119,866 22.0016%
CONTINGENCY-RESERVE $15,823 $322 $16,145 2.9639%
TOTAL $533,903 $10,896 $544,799 100.0000%

1&2 CIVIL SIDEWALKS - SAFETY - CLEANLINESS $662,006 $13,510 $675,516 60.0276% 1&2 DISTRICT IDENTITY - PLACEMAKING $165,502 $3,378 $168,880 15.0069% 1&2 ADMINISTRATION $242,642 $4,951 $247,593 22.0016%
1&2 CONTINGENCY-RESERVE $32,687 $667 $33,354 2.9639%
1&2 TOTAL $1,102,837 $22,506 $1,125,343 100.0000%

DOWNTOWN EL CAJON CBD – ASSESSMENT ENGINEER’S REPORT

11 YR ZONE PROGRAM CATEGORY

SPECIAL

BENEFITS

GENERAL

BENEFITS
TOTAL

BENEFITS
% OF
TOTAL
YR 7 - 2033 1 CIVIL SIDEWALKS - SAFETY - CLEANLINESS $365,423 $7,457 $372,880 60.0276% DISTRICT IDENTITY - PLACEMAKING $91,356 $1,865 $93,221 15.0069% ADMINISTRATION $133,936 $2,732 $136,668 22.0016%
CONTINGENCY-RESERVE $18,044 $369 $18,413 2.9639%
TOTAL $608,759 $12,423 $621,182 100.0000%

2 CIVIL SIDEWALKS - SAFETY - CLEANLINESS $342,923 $6,999 $349,922 60.0276% DISTRICT IDENTITY - PLACEMAKING $85,732 $1,749 $87,481 15.0069% ADMINISTRATION $125,691 $2,566 $128,257 22.0016%
CONTINGENCY-RESERVE $16,931 $345 $17,276 2.9639%
TOTAL $571,277 $11,659 $582,936 100.0000%

1&2 CIVIL SIDEWALKS - SAFETY - CLEANLINESS $708,346 $14,456 $722,802 60.0276% 1&2 DISTRICT IDENTITY - PLACEMAKING $177,088 $3,614 $180,702 15.0069% 1&2 ADMINISTRATION $259,627 $5,298 $264,925 22.0016%
1&2 CONTINGENCY-RESERVE $34,975 $714 $35,689 2.9639%
1&2 TOTAL $1,180,036 $24,082 $1,204,118 100.0000%

YR ZONE PROGRAM CATEGORY

SPECIAL

BENEFITS

GENERAL

BENEFITS
TOTAL

BENEFITS
% OF
TOTAL
YR 8 - 2034 1 CIVIL SIDEWALKS - SAFETY - CLEANLINESS $391,003 $7,979 $398,982 60.0276% DISTRICT IDENTITY - PLACEMAKING $97,751 $1,996 $99,747 15.0069% ADMINISTRATION $143,312 $2,923 $146,235 22.0016%
CONTINGENCY-RESERVE $19,307 $395 $19,702 2.9639%
TOTAL $651,373 $13,293 $664,666 100.0000%

2 CIVIL SIDEWALKS - SAFETY - CLEANLINESS $366,928 $7,489 $374,417 60.0276% DISTRICT IDENTITY - PLACEMAKING $91,733 $1,871 $93,604 15.0069% ADMINISTRATION $134,489 $2,746 $137,235 22.0016%
CONTINGENCY-RESERVE $18,116 $369 $18,485 2.9639%
TOTAL $611,266 $12,475 $623,741 100.0000%

1&2 CIVIL SIDEWALKS - SAFETY - CLEANLINESS $757,931 $15,468 $773,399 60.0276% 1&2 DISTRICT IDENTITY - PLACEMAKING $189,484 $3,867 $193,351 15.0069% 1&2 ADMINISTRATION $277,801 $5,669 $283,470 22.0016%
1&2 CONTINGENCY-RESERVE $37,423 $764 $38,187 2.9639%
1&2 TOTAL $1,262,639 $25,768 $1,288,407 100.0000%

YR ZONE PROGRAM CATEGORY

SPECIAL

BENEFITS

GENERAL

BENEFITS
TOTAL

BENEFITS
% OF
TOTAL
YR 9 - 2035 1 CIVIL SIDEWALKS - SAFETY - CLEANLINESS $418,373 $8,538 $426,911 60.0276% DISTRICT IDENTITY - PLACEMAKING $104,594 $2,136 $106,730 15.0069% ADMINISTRATION $153,344 $3,128 $156,472 22.0016%
CONTINGENCY-RESERVE $20,658 $423 $21,081 2.9639%
TOTAL $696,969 $14,225 $711,194 100.0000%

2 CIVIL SIDEWALKS - SAFETY - CLEANLINESS $392,613 $8,013 $400,626 60.0276% DISTRICT IDENTITY - PLACEMAKING $98,154 $2,002 $100,156 15.0069% ADMINISTRATION $143,903 $2,938 $146,841 22.0016%
CONTINGENCY-RESERVE $19,384 $395 $19,779 2.9639%

DOWNTOWN EL CAJON CBD – ASSESSMENT ENGINEER’S REPORT

12 TOTAL $654,054 $13,348 $667,402 100.0000%

1&2 CIVIL SIDEWALKS - SAFETY - CLEANLINESS $810,986 $16,551 $827,537 60.0276% 1&2 DISTRICT IDENTITY - PLACEMAKING $202,748 $4,138 $206,886 15.0069% 1&2 ADMINISTRATION $297,247 $6,066 $303,313 22.0016%
1&2 CONTINGENCY-RESERVE $40,042 $818 $40,860 2.9639%
1&2 TOTAL $1,351,023 $27,573 $1,378,596 100.0000%

YR ZONE PROGRAM CATEGORY

SPECIAL

BENEFITS

GENERAL

BENEFITS
TOTAL

BENEFITS
% OF
TOTAL
YR 10 -
2036 1 CIVIL SIDEWALKS - SAFETY - CLEANLINESS $447,659 $9,136 $456,795 60.0276% DISTRICT IDENTITY - PLACEMAKING $111,916 $2,286 $114,202 15.0069% ADMINISTRATION $164,078 $3,347 $167,425 22.0016%
CONTINGENCY-RESERVE $22,104 $453 $22,557 2.9639%
TOTAL $745,757 $15,222 $760,979 100.0000%

2 CIVIL SIDEWALKS - SAFETY - CLEANLINESS $420,096 $8,574 $428,670 60.0276% DISTRICT IDENTITY - PLACEMAKING $105,025 $2,142 $107,167 15.0069% ADMINISTRATION $153,976 $3,144 $157,120 22.0016%
CONTINGENCY-RESERVE $20,741 $423 $21,164 2.9639%
TOTAL $699,838 $14,283 $714,121 100.0000%

1&2 CIVIL SIDEWALKS - SAFETY - CLEANLINESS $867,755 $17,710 $885,465 60.0276% 1&2 DISTRICT IDENTITY - PLACEMAKING $216,941 $4,428 $221,369 15.0069% 1&2 ADMINISTRATION $318,054 $6,491 $324,545 22.0016%
1&2 CONTINGENCY-RESERVE $42,845 $876 $43,721 2.9639%
1&2 TOTAL $1,445,595 $29,505 $1,475,100 100.0000%

DECCBD WORK PLAN

Overview

The services, programs and improvements to be funded by the DECCBD include Civil Sidewalks-Safety- Cleanliness, District Identity-Placemaking, Administration and Contingency-Reserve. The property uses within the boundaries of the DECCBD that will receive special benefits from DECCBD funded programs, services and improvements are currently a unique mix of restaurants, retailers, services, office buildings, market rate and residential condominiums, apartment units, hotels, industrial and civic buildings. Services, programs and improvements provided and funded by the DECCBD are primarily designed to provide special benefits as described below to identified assessed parcels within the boundaries of the DECCBD.

These special benefits are particular and distinct to each and every identified assessed parcel within the DECCBD and are not provided to non-assessed parcels outside of the DECCBD. These programs, services and improvements will only be provided to each individual assessed parcel within the DECCBD boundaries and, in turn, confer proportionate "special benefits” to each assessed parcel.

The very nature of the purpose of the DECCBD is to fund supplemental programs, services and improvements to assessed parcels within the DECCBD boundaries above and beyond the baseline services provided by the City of El Cajon. The City of El Cajon does not provide these supplemental programs and

DOWNTOWN EL CAJON CBD – ASSESSMENT ENGINEER’S REPORT

13 services. All benefits derived from the assessments to be levied on assessed parcels within the DECCBD are for services, programs and improvements directly benefiting each individual assessed parcel within the DECCBD. No DECCBD funded services, activities or programs will be provided outside of the DECCBD boundaries.

The program special benefit cost allocations of the DECCBD assessment revenues for Year 1 -2027 are shown in the Table on page 15 of this Report. The projected program special benefit cost allocations of the DECCBD assessment revenues for the first 10 years of the proposed 20-year term of the DECCBD, assuming a 7% maximum annual assessment rate increase, are shown in the Table on page 16 of this Report.

WORK PLAN DETAILS
The services to be provided by the DECCBD (i.e. Civil Sidewalks-Safety-Cleanliness, District Identity- Placemaking, Administration and Contingency-Reserve) are all designed t o contribute to the cohesive mixed-use urban fabric to ensure economic success and vitality of each assessed parcel within the proposed DECCBD. The assessed parcels in the DECCBD will specially benefit from the DECCBD programs in the form of increasing commerce and improving economic success and vitality through meeting the DECCBD Goals: to improve cleanliness, beautification, landscaping and to attract and retain businesses and services, generate more pedestrian and visitor traffic and to increase commerce and improve the economic viability of each individual assessed parcel for businesses, patrons and residents.

Assessed parcels are conferred proportionate special benefits from all DECCBD funded programs, services and improvements which are intended to attract more customers, users, visitors, employees, tenants, residents and investors. DECCBD programs, services and improvements are designed to increase business volumes, sales transactions, occupancies and rental income. These programs, services and improvements are designed to improve commerce and aesthetic appeal for owners, business and residential tenants, patrons, visitors and employees of these parcels within the DECCBD by reducing litter and debris , marketing the available goods and services and installing beautification elements, each considered necessary in a competitive properly managed mixed-use business district.

The following programs, services and improvements are proposed by the DECCBD to specially benefit each and every individually assessed parcel within the DECCBD boundaries. DECCBD services, programs and improvements will not be provided to parcels outside the DECCBD boundary.

CIVIL SIDEWALKS - $ 472,000 (ROUNDED – SPECIAL BENEFIT COSTS) 60% Examples of this category of special benefit services and costs may include, but are not limited to:
• Regular sidewalk and gutter sweeping
• Periodic sidewalk steam cleaning
• Beautification of the Downtown El Cajon CBD
• Enhanced trash emptying (over and above city services) • Timely graffiti removal, within 72 hours as necessary

DOWNTOWN EL CAJON CBD – ASSESSMENT ENGINEER’S REPORT

14 • Maintenance of existing and new public spaces
• Maintenance of the Prescott Promenade
• Set up and take down of special events
• Installation and maintenance of flowers throughout the Downtown El Cajon CBD. (outside of medians)
• Personnel to manage in-house or contracted maintenance and any security teams.

DISTRICT IDENTITY-PLACEMAKING – $118,000 (ROUNDED – SPECIAL BENEFIT COSTS) 15% Examples of this category of special benefit services and costs may include, but are not limited to:
• Website development and updating
• Traditional events done by the DECIA (new 501c3)
• Social media, public relations firm
• Enhancing current City holiday and seasonal decorations • Branding of Downtown El Cajon properties so a positive image is promoted to the public • Activation of Prescott Promenade
• Banner programs
• Public art displays and promotion of the Rea Street Art Downtown El Cajon CBD; • Public space design and improvements
• Personnel to manage in -house or contracted public relations, web site maintenance or social media contractors.

ADMINISTRATION - $173,000 (ROUNDED – SPECIAL BENEFIT COSTS) 22% 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 Liability Insurance • Office related expenses
• Office and equipment rent
• Financial reporting and accounting
• Legal work

CONTINGENCY- RESERVE - $23,305 (ROUNDED – SPECIAL BENEFIT COSTS) 3% Examples of this category of special benefit services and costs include, but is not limited to:
• Delinquencies, City/County fees, reserves

In summary, all DECCBD funded services, programs and improvements described above confer special benefits to identified assessed parcels inside the DECCBD boundaries and none will be provided outside of the DECCBD. Each assessed parcel within the DECCBD will proportionately specially benefit from Civil Sidewalks -Safety-Cleanliness, District Identity -Placemaking, A dministration and Contingency- Reserve. These services, programs and improvements are intended to improve commerce, employment, rents and occupancy rates of assessed parcels within the DECCBD by reducing litter, marketing the available goods and services and installing physical improvements, each considered necessary in a competitive properly managed mixed-use business district. All DECCBD funded services programs and improvements are considered supplemental, above normal base level services provided by the City of El Cajon and are only provided for the special benefit of each and every assessed parcel within the boundaries of the DECCBD.

DOWNTOWN EL CAJON CBD – ASSESSMENT ENGINEER’S REPORT

15 WORK PLAN BUDGET

Each identified assessed parcel within the DECCBD will be assessed the full amount of the proportionate special benefit conferred upon it based on the level of DECCBD funded services provided. The projected DECCBD program special benefit (assessments) allocation budget for Year 1-2027 is shown in the following Table:

DECCBD Year 1-2027 Special Benefit Assessment Budget by Zone

BENEFIT
ZONE

CIVIL SIDEWALKS
- SAFETY -

CLEANLINESS

DISTRICT

IDENTITY -

PLACEMAKING

ADMINISTRATION

In order to carry out the DECCBD programs outlined in the previous section, a Year 1-2027 assessment budget of $786,305 is projected. Since the DECCBD is being proposed for a 20-year term, projected program costs for future years (Years 2 -20) are set at the inception of the DECCBD. While future inflationary and other program cost increases are unknown at this point, a maximum increase of 7% per year, commensurate to special benefits conferred on each assessed parcel, is incorporated into the projected program costs and assessment rates for the DECCBD.

Funding carryovers, if any, may be reapportioned the following year for related programs, services and improvements in accordance with the Management District Plan. Detailed annual budgets will be prepared by the Property Owners’ Association Board and included in the Annual Report for the City Council’s review and approval.

It is recognized that market conditions may cause the cost of providing goods and services to fluctuate from year to year for the proposed DECCBD. Accordingly, the Owners’ Association shall have the ability to reallocate any budget line item within the budget categories up to 10% of total budget from each year’s percentage in the Management District Plan subject to the review and approval by the Owners’ Association Board. Any proposed variation that exceeds 10% of the total budget shall be subject to review and approval from the City Manager’s Office. Any surplus or unspent funds, per category, shall be accumulated year to year over the life of the DECCBD. Such reallocation will be included in the Annual Report for approval by the City of El Cajon City Council pursuant to related City policies.

Any accrued interest or delinquent payments may be expended in any budget category in accordance with the Management District Plan.

The projected DECCBD special benefit budget for the first 10 years of the proposed 20-year DECCBD term is shown in the following Table:

DOWNTOWN EL CAJON CBD – ASSESSMENT ENGINEER’S REPORT

16 YEAR 1-10 PROJECTED DECCBD ASSESSMENT BUDGET SUMMARY (Special Benefits) (Assumes 7% max rate increase per year)

YEAR

BENEFIT
ZONE

CIVIL SIDEWALKS
- SAFETY -

CLEANLINESS

DISTRICT

IDENTITY -

PLACEMAKING

ADMINISTRATION

CONTINGENCY-
RESERVE TOTAL $
TOTAL
%
% 60.0276% 15.0069% 22.0016% 2.9639% 100%
1 1 $243,496 $60,874 $89,247 $12,023 $405,640 51.5881%
2 $228,504 $57,126 $83,753 $11,282 $380,665 48.4119%
TOTAL $472,000 $118,000 $173,000 $23,305 $786,305 100%

2 1 $260,541 $65,135 $95,494 $12,865 $434,035 51.7716%
2 $244,499 $61,125 $89,616 $12,072 $407,312 48.2284%
TOTAL $505,040 $126,260 $185,110 $24,937 $841,347 100.0000%

3 1 $278,779 $69,694 $102,179 $13,766 $464,418 51.7716% 2 $261,614 $65,404 $95,889 $12,917 $435,824 48.2284%
TOTAL $540,393 $135,098 $198,068 $26,683 $900,242 100.0000%

4 1 $298,294 $74,573 $109,332 $14,730 $496,929 51.7716% 2 $279,927 $69,982 $102,601 $13,821 $466,331 48.2284%
TOTAL $578,221 $144,555 $211,933 $28,551 $963,260 100.0000%

5 1 $319,175 $79,793 $116,985 $15,761 $531,714 51.7716% 2 $299,522 $74,881 $109,783 $14,788 $498,974 48.2284%
TOTAL $618,697 $154,674 $226,768 $30,549 $1,030,688 100.0000%

6 1 $341,517 $85,379 $125,174 $16,864 $568,934 51.7716% 2 $320,489 $80,123 $117,468 $15,823 $533,903 48.2284%
TOTAL $662,006 $165,502 $242,642 $32,687 $1,102,837 100.0000%

7 1 $365,423 $91,356 $133,936 $18,044 $608,759 51.7716% 2 $342,923 $85,732 $125,691 $16,931 $571,277 48.2284%
TOTAL $708,346 $177,088 $259,627 $34,975 $1,180,036 100.0000%

8 1 $391,003 $97,751 $143,312 $19,307 $651,373 51.7716% 2 $366,928 $91,733 $134,489 $18,116 $611,266 48.2284%
TOTAL $757,931 $189,484 $277,801 $37,423 $1,262,639 100.0000%

9 1 $418,373 $104,594 $153,344 $20,658 $696,969 51.7716% 2 $392,613 $98,154 $134,903 $19,384 $654,054 48.2284%
TOTAL $810,986 $202,748 $297,247 $40,042 $1,351,023 100.0000%

10 1 $447,659 $111,916 $164,078 $22,104 $745,757 51.7716% 2 $420,096 $105,025 $153,976 $20,741 $699,838 48.2284%
TOTAL $867,755 $216,941 $318,054 $42,845 $1,445,595 100.0000%

DOWNTOWN EL CAJON CBD – ASSESSMENT ENGINEER’S REPORT

17 The DECCBD assessments may increase for each individual parcel each year during the life of the DECCBD, but not to exceed 7% per year, commensurate to special benefits received by each assessed parcel and must be approved by the Owners’ Association Board of Directors, included in the Annual Report and adopted by the City of El Cajon City Council. Any accrued interest and delinquent payments will be expended within the budgeted categories. The Owners’ Association Board of the Directors (“Property Owners’ Association of the DECCBD) shall determine the percentage increase, if any, to the annual assessment, not to exceed 7% per year. The Owners’ Association Executive Director shall communicate the annual increase to the City each year in which the DECCBD operates at a time determined in the Administration Contract held between the Owners’ Association and the City of El Cajon. No bonds are to be issued in conjunction with the proposed DECCBD.

Pursuant to the Ordinance, any funds remaining after each year of operation will be rolled over into the next year’s budget or returned to stakeholders in accordance with the Ordinance . If the DECCBD is terminated for any reason or disestablished , unencumbered/unexpended funds will be returned to the property owners in accordance with the Ordinance.

Finding 3. From Section 4(a): “(Determine) the proportionate special benefit derived by each parcel in relationship to the entirety of the..........cost of public improvement(s) or the maintenance and operation expenses...........or the cost of the property related service being provided.

Each identified assessed parcel within the DECCBD will be assessed based on property characteristics unique only to that parcel. Based on the specific needs and corresponding nature of the program activities to be funded by the proposed DECCBD (i.e. Civil Sidewalks -Safety-Cleanliness, District Identity - Placemaking, Administration and Contingency -Reserve), it is the opinion of this Asse ssment Engineer that the assessment factors on which to base assessment rates relate directly to the proport ionate amount of building area, land area and street frontage of each parcel except as note herein within two benefit zones.

The calculated assessment rates are applied to the actual measured parameters of each parcel and thereby are proportional to each and every other identified assessed parcel within the DECCBD as a whole. Larger parcels and those with larger buildings and/or street frontage are projected to impact the demand for services and programs to a greater extent than smaller parcels or smaller buildings or street frontages and thus, are assigned a greater proportionate degree of assessment program and service costs . The proportionality is further achieved by setting targeted formula component weights for the respective parcel by parcel identified property attributes and benefit zone in which it is located.

The proportionate special benefit cost for each parcel has been calculated based on proportionate formula components and is listed in the Management District Plan and this Report. The individual percentages (i.e. proportionate relationship to the total special benefit related program and activity costs) are computed by dividing the individual parcel assessment by the total special benefit program related costs.

Finding 4. From Section 4(a): “No assessment shall be imposed on any parcel which exceeds the reasonable cost of the proportional special benefit conferred on that parcel.”

Not only are the proposed program costs reasonable due to the benefit of group purchasing and contracting

DOWNTOWN EL CAJON CBD – ASSESSMENT ENGINEER’S REPORT

18 which would be possible through the proposed DECCBD, they are also considerably less than other options considered by the DECCBD Formation Advisory Committee. The actual assessment rates for each parcel within the DECCBD directly relate to the level of service and, in turn, special benefit to be conferred on each parcel based on the respective amount of building area, land area and street frontage of each parcel except as note herein within two benefit zones.

Finding 5. From Section 4(a): “Parcels........that are owned or used by any (public) agency shall not be exempt from assessment..........”

Article XIII D states that “parcels within a District that are owned or used by any agency, the State of California or the United States shall not be exempt from assessment unless the agency can demonstrate by clear and convincing evidence that those publicly-owned parcels in fact receive no special benefit.”

There are currently 26 publicly owned parcels within the boundaries of the proposed DECCBD - they are owned by the City of El Cajon, the County of San Diego, San Diego Gas & Electric, El Cajon Housing Authority, San Diego Metro Transit and the State of California.

For assessed publicly owned parcels and facilities, each of these parcels specially benefit from proposed DECCBD funded programs and services from cleaner facility entrances and perimeters. In addition, the proposed DECCBD funded marketing and district identity programs benefit publicly owned parcels by announcing public events and activities held at these public facilities and apprise employees of important DECCBD news and events. These services and programs are designed to improve the cleanliness and usability of each publicly owned assessed parcel and facility within the DECCBD by reducing litter and debris, marketing the available goods and services in the proposed DECCBD and installing physical improvements, each considered necessary for public facilities within a mixed-use business district.

It is the opinion of this Assessment Engineer that there is no clear and convincing evidence that these publicly owned parcels would not receive proportionate special benefits and thus, are not exempt from assessments nor assessed differently than privately owned parcels.

PUBLICLY OWNED PARCELS

APN

Legal Owner
Benefit
Zone

Site Street
Annual
Assessment

Percent
487-172-67-00 CITY OF EL CAJON 1 326 N MAGNOLIA AVE $ 3,570.11 0.45% 487-321-12-00 CITY OF EL CAJON 2 $ 1,562.28 0.20% 488-072-38-00 CITY OF EL CAJON 1 N MAGNOLIA AVE $ 5,642.12 0.71% 488-072-45-00 CITY OF EL CAJON 2 CIVIC CENTER WAY $ 16,075.98 2.03% 488-083-27-00 CITY OF EL CAJON 2 149 REA AVE $ 2,502.02 0.32% 488-111-28-00 CITY OF EL CAJON 1 $ 13,711.74 1.74% 488-111-30-00 CITY OF EL CAJON 1 $ 18,822.65 2.38% 488-192-09-00 CITY OF EL CAJON 1 E DOUGLAS AVE $ 17,001.12 2.15% 488-211-21-00 CITY OF EL CAJON 1 201 E MAIN ST $ 1,435.82 0.18% 488-211-22-00 CITY OF EL CAJON 2 230 E DOUGLAS AVE $ 2,434.50 0.31% 488-212-19-00 CITY OF EL CAJON 2 E LEXINGTON AVE $ 212.50 0.03% 488-212-20-00 CITY OF EL CAJON 2 E DOUGLAS AVE $ 546.38 0.07% 488-212-21-00 CITY OF EL CAJON 2 250 E LEXINGTON AVE $ 11,122.74 1.41%

DOWNTOWN EL CAJON CBD – ASSESSMENT ENGINEER’S REPORT

19 488-212-22-00 CITY OF EL CAJON 2 PRESCOTT AVE $ 3,508.84 0.44% TOTAL $ 98,148.80 12.42%
488-111-32-00 COUNTY OF SAN DIEGO 1 MAGNOLIA AVE N $ 21,734.51 2.75% 488-162-17-00 COUNTY OF SAN DIEGO 1 200 S MAGNOLIA AVE $ 5,056.41 0.64% 488-192-08-00 COUNTY OF SAN DIEGO 1 PRESCOTT AVE $ 8,962.55 1.13% TOTAL $ 35,753.47 4.53%
488-111-35-00 EL CAJON HOUSING 1 E MAIN ST $ 1,750.38 0.22%

487-121-24-00 SAN DIEGO GAS & ELECTRIC CO 2 W MAIN ST $ 9,882.58 1.25% 487-121-25-00 SAN DIEGO GAS & ELECTRIC CO 2 W MAIN ST $ 2,764.48 0.35% 487-121-76-00 SAN DIEGO GAS & ELECTRIC CO 2 $ 6,117.00 0.77% 487-121-92-00 SAN DIEGO GAS & ELECTRIC CO 2 W MAIN ST $ 4,362.54 0.55% TOTAL $ 23,126.60 2.93%
487-262-04-00 SD METROPOLITAN TRANSIT DEV BOARD 2 166 S MARSHALL AVE $ 4,930.40 0.62% 487-262-09-00 SD METROPOLITAN TRANSIT DEV BOARD 2 1133 W MAIN ST $ 1,252.86 0.16% 487-273-06-00 SD METROPOLITAN TRANSIT DEV BOARD 2 398 S MARSHALL AVE $ 6,185.62 0.78% TOTAL $ 12,368.88 1.57%
488-111-31-00 STATE OF CALIFORNIA 1 E PARK AVE $ 11,388.00 1.44%

Finding 6. From Section 4(b): “All assessments must be supported by a detailed engineer’s report prepared by a registered professional engineer certified by the State of California”.

This report serves as the “detailed engineer’s report” to support the benefit property assessments proposed to be levied within the proposed DECCBD.

Finding 7. From Section 4(c): “The amount of the proposed assessment for each parcel shall be calculated (along with) the total amount thereof chargeable to the entire district, the duration of such payments, the reason for such assessment and the basis upon which the amount of the proposed assessment was calculated.”

The individual and total parcel assessments attributable to special property benefits are shown in Appendix 1 of this Report. The proposed DECCBD and resultant assessment levies will continue for 20 years unless disestablished. The reasons for the proposed assessments are outlined in Finding 2 above as well as in the Management District Plan. The calculation basis of the proposed assessment is attributed to building area, land area and street frontage of each parcel except as note herein within two benefit zones.

Assessment Formula Methodology

Step 1. Select “Benefit Unit(s)”

Background - Assessment Formula Development
The method used to determine special benefits derived by each identified assessed property within a CBD begins with the selection of a suitable and tangible basic benefit unit. For property related services, such as those proposed in the DECCBD, the benefit unit may be measured in linear feet of street frontage or parcel size in square feet or building size in square feet or any combination of these factors. Factor quantities for each parcel are then measured or otherwise ascertained. From these figures, the amount of benefit units to be assigned to each property can be calculated. Special circumstances such as unique geography, land uses, development constraints etc. are carefully reviewed relative to specific programs

DOWNTOWN EL CAJON CBD – ASSESSMENT ENGINEER’S REPORT

20 and improvements to be funded by a CBD in order to determine any levels of different benefit that may apply on a parcel-by-parcel or categorical basis.

Based on the factors described above such as geography and nature of programs and activities proposed, an assessment formula is developed which is derived from a singular or composite benefit unit factor or factors. Within the assessment formula, different factors may be assigned different “weights” or percentage of values based on their relationship to programs/services to be funded.

Next, all program and activity costs, including in cidental costs, administration and ancillary program costs, are estimated. It is noted, as stipulated in Article XIII D Section 4(b) of the California Constitution, and now required of all property-based assessment districts, indirect or general benefit related costs may not be incorporated into the assessment formula and levied on the district properties; only direct or “special” benefits related costs may be used. Indirect or general benefits, if any, must be identified and, if quantifiable, calculated and factored out of the assessment cost basis to produce a “net” cost figure. In addition, Article XIII D Section 4(b) of the California Constitution also no longer automatically exempts publicly owned property from being assessed unless the respective public agency can provide clear and convincing evidence that their property does not specially benefit from the programs and services to be funded by the proposed special assessments. If special ben efit is determined to be conferred upon such properties, they must be assessed in proportion to special benefits conferred in a manner similar to privately owned property assessments. (See pages 18-19 of this Report for discussion regarding publicly owned parcels within the DECCBD).

From the estimated program costs, the value of a benefit unit or “unit cost” can be computed by dividing the total amount of estimated program costs by the total number of benefit units. The amount of assessment for each parcel can be computed at this time by multiplying the Unit Cost times the number of Benefit Units per parcel. This is known as “spreading the assessment” or the “assessment spread” in that all costs are allocated proportionately or “spread” amongst all benefitting properties within the CBD.

The method and basis of spreading program costs varies from one CBD to another based on local geographic conditions, types of programs and activities proposed, and size and development complexity of the district. CBDs may require secondary benefit zones to be identified to allow for a tiered assessment formula for variable or stepped-down benefits derived.

DECCBD Assessment Formula
Based on the specific needs and corresponding nature of the program activities to be funded by the proposed DECCBD (i.e. Civil Sidewalk-Safety-Cleanliness, District Identity -Placemaking, Administration and Contingency-Reserve) it is the opinion of this Assessment Engineer that the assessment factors on which to base assessment rates relate directly to the proport ionate amount of building area, land area and street frontage of each parcel except as note herein within two benefit zones.

The “Benefit Units” will be expressed as a combined function of gross building square footage (Benefit Unit “A”), land area (Benefit Unit “B”), street frontage (Benefit Unit “C”) and interior building pad area for residential condominiums (Benefit Unit “D”). Based on the shape of the proposed DECCBD, as well as the nature of the work program, it is determined that all identified properties will gain a direct and proportionate degree of special benefit based on the respective amount of building area, land area and street frontag e. It is noted and explained in more detail on page 22 under “Special Assessment

DOWNTOWN EL CAJON CBD – ASSESSMENT ENGINEER’S REPORT

21 Circumstances” that residential condominiums will be assessed based only on interior building pad square footage of each unit.

There are two benefit zones within the proposed DECCBD. The targeted weights of assessment revenue for Zones 1 & 2 is about 50% each. The actual assessment revenue projected to be generated by Zone 1 is

51.5881%. The actual assessment revenue projected to be generated by Zone 2 is 48.4119%.

Benefit Zone 1 parcels will be assessed at a higher rate since they will have the highest frequency of Civil Sidewalks and District Identity services due to the amount of foot traffic in and around the parcels fronting along Main Street and Magnolia which represents the core area of the Downtown El Cajon CBD. Benefit Zone 1 properties are the historic core of Downtown El Cajon’s Downtown El Cajon CBD dating back almost 120 years and built around Main and Magnolia Streets. The individual parcels being assessed include high quality retail, restaurants, services, civic buildings, parking lots and structures, residential, office, hotel and residential condos and apartments. These parcels will benefit the most from the CBD special benefit services, therefore their assessments have been made to fund the costs of services to these parcels. Civil Sidewalk Services shall be provided approximately 6 – 7 times per week for Benefit Zone 1 parcel owners, based upon a full crew of cleaning and landscaping personnel.

Benefits Zone 2 parcels represent the parcels west of the intersection of El Cajon Boulevard and Main Street as well as the parcels not fronting along Main and Magnolia Street to the Interstate 8 freeway. The predominant uses of Benefit Zone 2 parcels are office space, various office and retail and other commercial uses. Since they will be getting services 4 - 5 days per week, their annual assessments have been reduced to accommodate this weekly schedule and uses. The costs in Benefit Zone 2 are lower than those of Benefit Zone 1 due to the lack of density in this portion of the Downtown El Cajon CBD and the lack of intense pedestrian activity that is found in Benefit Zone 1 properties with the core areas around Main and Magnolia.

Assessment Factors
The interaction of building area, land area and street frontage quantities is a common method of fairly and equitably spreading special benefit costs to the beneficiaries of CBD funded services, programs and improvements. These factors directly relate to the proportion of special benefit each assessed parcel will receive from DECCBD funded activities, programs and improvements.

Building Area (Benefit Units A+D) is a direct measure of the static utilization of each parcel and its corresponding impact or draw on DECCBD funded activities. The targeted revenue weight of Building Area (Units A+D) is about 25%. Unit A+D will actually generate 27.3788% of the overall assessment revenue

Land Area (Benefit Unit B) is a direct measure of the current and future development capacity of each parcel and its corresponding impact or draw on DECCBD funded activities. The targeted revenue weight of Land Area (Unit B) is about 50%. Unit B will actually generate 49.0016% of the overall assessment revenue.

Street Frontage (Benefit Unit C) is a direct measure of each parcel’s corresponding impact or draw on DECCBD funded activities. The targeted revenue weight of Street Frontage (Unit C) is about 25%. Unit B will actually generate 23.6196% of the overall assessment revenue.

DOWNTOWN EL CAJON CBD – ASSESSMENT ENGINEER’S REPORT

22 Special Assessment Circumstances

1. Residential Condominiums
There are currently 94 residential condominium parcels within the boundaries of the DECCBD with many more planned. It is noted that there are 58 condos either under construction or soon to be built for which there is not currently any internal unit building area figures available and thus, no assessment amounts can be calculated. Residential condos will be assessed as a separate category. It is the opinion of this Assessment Engineer that residential condominium parcels will proportionately specially benefit from DECCBD funded programs and activities, but differently than commercial parcels and other residential parcels with multiple units on them. As such, based on the development configuration of such units which are generally multi floor buildings with no direct land or street frontage, the assessments for residential condominiums shall be assessed based solely on the internal building area of each residential condominium unit at the rate of $0.10 per square foot of internal building pad area in Zone 1 and $0.09 per square foot of internal building pad area in Zone 2 , subject to any approved annual rate increases.

2. Commercial and Mixed-Use Condominiums
While no mixed -use condominiums currently exist within the DECCBD, g round floor c ommercial condominiums within the DECCBD shall be assessed based on actual land area covered, condominium building area and direct street frontage for each unit. Because such uses are typically developed as part of a multi -floor mixed -use complex, special methodologies are needed to address the levy of assessments on such land uses as follows:

Multi-Floor Commercial Only Condominiums (Upper Floors) - Building area assessed at respective building area rate

Multi-Floor Mixed-Use Condominiums
- Commercial condo (See above for ground floor and upper floor locations) - Residential condo (See # 2 above)

3. Private Parking Structures
Private parking structures or major retail parking lots will not be included for building square footage assessments unless they are open to the public in general and serve the parking needs of visitors other than direct customers.

Changes to Building and/or Parcel Size
Any changes in building or parcel size as a result of new construction, demolitions, land adjustments including but not limited to lot splits, consolidations, subdivisions, street dedications, right of way setbacks shall have their assessment adjusted upon final City approval of such building and/or parcel adjustments.

Other Future Development
Other than future maximum rates and the assessment methodology delineated in this Report , future assessments may increase for any given parcel if such an increase is attributable to events other than an increased rate or revised methodology, such as a change in the density, intensity, or nature of the use of land. Any change in assessment formula methodology or rates other than as stipulated in this Report would require a new Article XIII D ballot procedure in order to approve any such changes.

DOWNTOWN EL CAJON CBD – ASSESSMENT ENGINEER’S REPORT

23 Step 2. Quantify Total Basic Benefit Units

Considering all identified specially benefiting parcels within the DECCBD and their respective assessable benefit units, the cumulative quantities by factor and zone are shown in the following Table:

Year 1 – 2027- Assessable Benefit Units

BENEFIT
ZONE

BUILDING

AREA (SF)

LAND AREA
(SF)
STREET

FRONTAGE
(LF)

R-CONDO

BUILDING

AREA (SF)
# OF

ASSESSABLE

PARCELS
1 1,196,243 2,692,963 24,377 0 129
2 909,719 3,279,914 25,204 153,129 244
TOTAL 2,105,962 5,972,877 49,581 153,129 373

Considering all identified specially benefiting parcels within the DECCBD and their respective assessable benefit units, the cumulative assessment revenue by factor are shown in the following Table:

Year 1 – 2027 - Assessment Revenue

BENEFIT
ZONE

BUILDING
AREA
ASSMT

REVENUE

LAND AREA
ASSMT

REVENUE
STREET

FRONTAGE
ASSMT

REVENUE

R-CONDO

BUILDING
AREA
ASSMT

REVENUE
TOTAL

REVENUE
% OF
TOTAL
1 $119,624.30 $188,507.41 $97,508.00 $0.00 $405,639.71 51.5881% 2 $81,874.71 $196,794.84 $88,214.00 $13,781.61 $380,665.16 48.4119% TOTAL $201,499.01 $385,302.25 $185,722.00 $13,781.61 $786,304.87 100.00%

Zone 1 % 15.2135% 23.9738% 12.4008% 0.0000% 51.5881%
Zone 2 % 10.4126% 25.0278% 11.2188% 1.7527% 48.4119%
Total % 25.6261% 49.0016% 23.6196% 1.7527% 100.00%

Step 3. Calculate Benefit Units for Each Property.

The number of Benefit Units for each identified benefiting parcel within the proposed DECCBD was computed from data extracted from County Assessor records and maps. These data sources delineate current land uses, property areas and dimensions of record for each tax parcel. While it is understood that this data does not represent legal field surve y measurements or detailed title search of recorded land subdivision maps or building records, it does provide an acceptable basis for the purpose of calculating property-based assessments. All respective property data being used for assessment computation s will be provided to each property owner in the DECCBD for their review. If a property owner believes there is an error on a parcel’s assessed quantities, the DECCBD may confirm the data with the San Diego County Assessor’s office. If DECCBD data matches Assessor’s data, the property owner may opt to work with the Assessor’s office to correct the data so that the DECCBD assessment may be corrected

DOWNTOWN EL CAJON CBD – ASSESSMENT ENGINEER’S REPORT

24 Step 4. Determine Assessment Formula

In the opinion of this Assessment Engineer, the general assessment formula for the proposed DECCBD, as shown in the Year 1 Assessment Rate Table on page 2 5, is as follows, except as noted on page 22 for residential condominiums:

Assessment = Land Area (Unit A) Sq Ft x Unit A Rate, plus Street Frontage (Unit B) Lin Ft x Unit B Rate, plus
Building Area (Unit C) Sq Ft x Unit C Rate

Assessment Formula Unit Rates

Based on figures from the Assessable Benefit Units Table above, the assessment rates for each factor and zone are shown as calculated below:

ZONE 1
Building Area Rate (Unit A-1)
($786,304.87 x 15.2135%/ 1,196,243 assessable building area units = $0.10/sf building area

Land Area Rate B (Unit B-1)
($786,304.87 x 23.9738%) / 2,692,963 assessable land area units = $0.07/sf land area

Street Frontage Rate (Unit C-1)
($786,304.87 x 12.4008%) / 24,377 assessable frontage units = $4.00/lin ft frontage

Condo Building Area Rate (Unit D-1) – set at $0.10/sf condo internal building pad area

ZONE 2
Building Area Rate (Unit A-2)
($786,304.87 x 10.4126%) / 909,719 assessable building area units = $0.09/sf building area

Land Area Rate B (Unit B-2)
($786,304.87 x 25.0278%) / 3,279,914 assessable land area units = $0.06/sf land area

Street Frontage Rate (Unit C-2)
($786,304.87 x 11.2188%) / 25,204 assessable frontage units = $3.50/lin ft frontage

DOWNTOWN EL CAJON CBD – ASSESSMENT ENGINEER’S REPORT

25 Condo Building Area Rate (Unit D-2) – set at $0.09/sf condo internal building pad area

It is noted that the assessment rate for residential condominiums in Zone 1 is set at the Year 1 -2027 building area rate of $0.10 per square foot of interior building pad area and $0.09 in Zone 2, each subject to a maximum 7% rate increase per year for the proposed 20-year DECCBD term.

YEAR 1 –2027 Assessment Rates

BENEFIT
ZONE

BUILDING
AREA
RATE
($/SF)
LAND

AREA RATE
($/SF)
STREET

FRONTAGE
RATE
($/LF)

R-CONDO

BUILDING

AREA RATE
($/SF)
YEAR 1 A B C D
1 $0.1000 $0.0700 $4.0000 $0.1000
2 $0.0900 $0.0600 $3.5000 $0.0900

The complete Year 1 – 2027 assessment roll of all parcels to be assessed by the DECCBD is included in this Report as Appendix I.

Step 5. Estimate Total DECCBD Costs
The total projected DECCBD special benefit costs for the first 10 years (2027 -2036) of the proposed 20 - year term ( 2027 – 2046) are shown in the Table on page 16 of this Report assuming a maximum 7% increase per year.

Step 6. Separate General Benefits from Special Benefits and Related Costs (Article XIII D)

Total Year 1 special and districtwide general benefit related costs are estimated at $802,352 Districtwide general benefits are factored at 2% of the total benefit value (see Finding 2 of this Report) with special benefits set at 98%. Article XIII D limits the levy of property assessments to costs attributed to special benefits only. The 2% general benefit value is computed to be $16,047 with a resultant 98% special benefit limit computed at $786,305. Based on current property data and land uses, this is the maximum amount of Year 1 - 2027 revenue that can be derived from property assessments from the subject District. All program costs associated with district-wide general benefits will be derived from sources other than DECCBD assessments.

Step 7. Calculate “Basic Unit Cost”

With a YR 1 - 2027 assessment revenue portion of the budget set at $786,305 (special benefit only), the Unit Costs (rates) are shown earlier in Step 4. The DECCBD is proposed for a 20-year term. An annual inflationary ass essment rate increase of up to 7%, commensurate to special benefits received by each assessed parcel, may be imposed for future year assessments, on approval by the DECCBD Property Owner’s Association. The maximum assessment rates for years 1-20 (2027-2046) are shown in the Table below. The assessment rates listed constitute the maximum assessment rates that may be imposed for the 20-year DECCBD term.

DOWNTOWN EL CAJON CBD – ASSESSMENT ENGINEER’S REPORT

26 DECCBD – Maximum Assessment Rates - Years 1-20
(Includes a 7%/Yr. Max Increase)

BENEFIT
ZONE

BUILDING
AREA
RATE
($/SF)
LAND

AREA RATE
($/SF)
STREET

FRONTAGE
RATE
($/LF)

R-CONDO

BUILDING

AREA RATE
($/SF)
YEAR 1 A B C D
1 $0.1000 $0.0700 $4.0000 $0.1000
2 $0.0900 $0.0600 $3.5000 $0.0900

YEAR 2
1 $0.1070 $0.0749 $4.2800 $0.1070
2 $0.0972 $0.0648 $3.7800 $0.0963

YEAR 3
1 $0.1145 $0.0801 $4.5796 $0.1145
2 $0.1050 $0.0700 $4.0824 $0.1030

YEAR 4
1 $0.1225 $0.0857 $4.9002 $0.1225
2 $0.1134 $0.0756 $4.4090 $0.1102

YEAR 5
1 $0.1311 $0.0917 $5.2432 $0.1311
2 $0.1225 $0.0816 $4.7617 $0.1179

YEAR 6
1 $0.1403 $0.0981 $5.6102 $0.1403
2 $0.1323 $0.0881 $5.1426 $0.1262

YEAR 7
1 $0.1501 $0.1050 $6.0029 $0.1501
2 $0.1429 $0.0951 $5.5540 $0.1350

YEAR 8
1 $0.1606 $0.1124 $6.4231 $0.1606
2 $0.1543 $0.1027 $5.9983 $0.1445

YEAR 9
1 $0.1718 $0.1203 $6.8727 $0.1718
2 $0.1666 $0.1109 $6.4782 $0.1546

YEAR 10
1 $0.1838 $0.1287 $7.3538 $0.1838
2 $0.1799 $0.1198 $6.9965 $0.1654

YEAR 11
1 $0.1967 $0.1377 $7.8686 $0.1967

DOWNTOWN EL CAJON CBD – ASSESSMENT ENGINEER’S REPORT

27 2 $0.1943 $0.1294 $7.5562 $0.1770

YEAR 12
1 $0.2105 $0.1473 $8.4194 $0.2105
2 $0.2098 $0.1398 $8.1607 $0.1894

YEAR 13
1 $0.2252 $0.1576 $9.0088 $0.2252
2 $0.2266 $0.1510 $8.8136 $0.2027

YEAR 14
1 $0.2410 $0.1686 $9.6394 $0.2410
2 $0.2447 $0.1631 $9.5187 $0.2169

YEAR 15
1 $0.2579 $0.1804 $10.3142 $0.2579
2 $0.2643 $0.1761 $10.2802 $0.2321

YEAR 16
1 $0.2760 $0.1930 $11.0362 $0.2760
2 $0.2854 $0.1902 $11.1026 $0.2483

YEAR 17
1 $0.2953 $0.2065 $11.8087 $0.2953
2 $0.3082 $0.2054 $11.9908 $0.2657

YEAR 18
1 $0.3160 $0.2210 $12.6353 $0.3160
2 $0.3329 $0.2218 $12.9501 $0.2843

YEAR 19
1 $0.3381 $0.2365 $13.5198 $0.3381
2 $0.3595 $0.2395 $13.9861 $0.3042

YEAR 20
1 $0.3618 $0.2531 $14.4662 $0.3618
2 $0.3883 $0.2587 $15.1050 $0.3255

Step 8. Spread the Assessments
The resultant assessment spread calculation results for each parcel within the DECCBD are shown in the Management District Plan and this Report and were determined by applying the DECCBD assessment formula to each identified benefiting property.

DOWNTOWN EL CAJON CBD – ASSESSMENT ENGINEER’S REPORT

28 Miscellaneous DECCBD Provisions

Time and Manner of Collecting Assessments:

Assessments shall be collected at the same time and in the same manner as ad valorum taxes paid to San Diego County. The DECCBD assessments shall appear as a separate line item on the property tax bills issued by San Diego County. The City of El Cajon is authorized to collect any assessments not placed on the County tax rolls, or to place assessments, unpaid delinquent assessments, or penalties on the County tax rolls as appropriate to implement the Management District Plan.

Bonds:

No bonds are to be issued in conjunction with the proposed DECCBD.

Duration:

As allowed by the Ordinance, the DECCBD will have a 20-year operation term, beginning January 1, 2027 and ending December 31, 2046. At that time, the DECCBD may be renewed again for up to 20 years.

DOWNTOWN EL CAJON CBD – ASSESSMENT ENGINEER’S REPORT

29 APPENDIX 1

DECCBD
YR 1 – 2027

ASSESSMENT ROLL

APN Year 1 Assessment
482-282-03-00 $ 1,412.71
482-283-05-00 $ 2,238.61
482-283-06-00 $ 1,785.91
482-283-08-00 $ 1,962.06
482-283-09-00 $ 1,890.88
482-301-03-00 $ 3,442.95
482-301-05-00 $ 2,456.63
482-301-06-00 $ 2,337.52
482-301-09-00 $ 2,035.34
482-301-10-00 $ 12,643.15
482-301-11-00 $ 5,991.11
482-302-01-00 $ 2,922.56
482-302-02-00 $ 2,651.20
482-302-06-00 $ 2,361.22
483-330-22-00 $ 2,606.01
483-330-31-00 $ 2,621.35
483-330-32-00 $ 865.28
483-330-33-00 $ 629.22
483-330-34-00 $ 2,451.48
487-121-24-00 $ 9,882.58
487-121-25-00 $ 2,764.48
487-121-41-00 $ 2,526.34
487-121-50-00 $ 2,111.74
487-121-76-00 $ 6,117.00
487-121-92-00 $ 4,362.54
487-122-40-00 $ 11,669.36
487-122-48-00 $ 8,648.20
487-122-49-00 $ 2,298.55
487-160-04-00 $ 5,023.32
487-160-05-00 $ 1,299.45
487-160-07-00 $ 4,006.78
487-171-37-00 $ 4,401.14
487-171-38-00 $ 4,647.88
487-171-47-00 $ 2,714.36
487-171-50-00 $ 6,098.76
487-172-22-00 $ 1,969.64
487-172-27-00 $ 1,623.50
487-172-49-00 $ 2,780.36
487-172-67-00 $ 3,570.11
487-172-70-00 $ 2,248.18
487-172-75-00 $ 3,894.02
487-173-37-00 $ 3,609.14
487-192-47-00 $ 29,358.42
487-192-48-00 $ 2,119.00
487-192-50-00 $ 2,549.00
487-192-51-00 $ 560.00
487-192-52-00 $ 2,880.50
487-192-53-00 $ 3,838.00
487-192-54-00 $ 1,288.00
487-192-55-00 $ 3,767.70
487-192-56-00 $ 2,031.28
487-262-04-00 $ 4,930.40
487-262-09-00 $ 1,252.86
487-273-06-00 $ 6,185.62
487-281-28-00 $ 699.90
487-281-31-00 $ 973.42
487-281-32-00 $ 1,004.46
487-281-33-00 $ 586.70
487-282-27-00 $ 666.28
487-282-28-00 $ 559.50
487-282-29-00 $ 701.86
487-282-31-00 $ 1,198.42
487-282-32-00 $ 554.46
487-282-33-00 $ 1,364.42
487-301-25-00 $ 1,587.40
487-301-26-00 $ 897.70
487-301-27-00 $ 672.78
487-301-31-00 $ 1,771.31
487-302-29-00 $ 2,522.16
487-302-31-00 $ 3,881.45
487-321-01-00 $ 810.54
487-321-11-00 $ 1,068.57
487-321-12-00 $ 1,562.28
487-321-16-00 $ 1,500.80
487-321-17-00 $ 1,563.34
487-321-24-00 $ 1,176.38
487-321-25-00 $ 1,829.70

DOWNTOWN EL CAJON CBD – ASSESSMENT ENGINEER’S REPORT

30 487-321-26-00 $ 2,079.62
487-321-27-00 $ 3,969.52
487-321-29-00 $ 1,279.42
487-321-30-00 $ 988.90
487-321-31-00 $ 952.62
487-321-36-00 $ 3,207.78
487-321-38-00 $ 3,814.88
487-321-39-01 $ 130.32
487-321-39-02 $ 130.32
487-321-39-03 $ 153.81
487-321-39-04 $ 130.32
487-321-39-05 $ 153.81
487-321-39-06 $ 130.32
487-321-39-07 $ 130.32
487-321-39-08 $ 153.81
487-321-39-09 $ 153.81
487-321-39-10 $ 130.32
487-321-39-11 $ 153.81
487-321-39-12 $ 130.32
487-321-39-13 $ 130.32
487-321-39-14 $ 153.81
487-321-39-15 $ 130.32
487-321-39-16 $ 130.32
487-321-39-17 $ 130.32
487-321-39-18 $ 130.32
487-321-39-19 $ 130.32
487-321-39-20 $ 153.81
487-321-39-21 $ 153.81
487-321-39-22 $ 130.32
487-321-39-23 $ 130.32
487-321-39-24 $ 153.81
487-321-39-25 $ 130.32
487-321-39-26 $ 130.32
487-321-39-27 $ 153.81
487-321-39-28 $ 153.81
487-321-39-29 $ 153.81
487-321-39-30 $ 130.32
487-321-39-31 $ 153.81
487-321-39-32 $ 130.32
487-321-39-33 $ 153.81
487-321-39-34 $ 130.32
487-321-39-35 $ 130.32
487-321-39-36 $ 153.81
487-321-39-37 $ 153.81
487-321-39-38 $ 130.32
487-321-39-39 $ 130.32
487-321-39-40 $ 153.81
487-321-39-41 $ 153.81
487-321-39-42 $ 153.81
487-321-39-43 $ 153.81
487-321-39-44 $ 153.81
487-321-39-45 $ 130.32
487-321-39-46 $ 130.32
487-321-39-47 $ 153.81
487-321-39-48 $ 130.32
487-321-39-49 $ -
487-321-39-50 $ 153.81
487-321-39-51 $ -
487-321-39-52 $ -
487-321-39-53 $ -
487-321-39-54 $ -
487-321-39-55 $ -
487-321-39-56 $ -
487-321-39-57 $ -
487-321-39-58 $ -
487-321-39-59 $ -
487-321-39-60 $ 130.32
487-321-39-61 $ 153.81
487-321-39-62 $ 130.32
487-321-39-63 $ 153.81
487-321-39-64 $ 130.32
487-321-39-65 $ 130.32
487-321-39-66 $ 153.81
487-321-39-67 $ 153.81
487-321-39-68 $ 153.72
487-321-39-69 $ 153.72
487-321-40-01 $ 130.32
487-321-40-02 $ -
487-321-40-03 $ -
487-321-40-04 $ -
487-321-40-05 $ -
487-321-40-06 $ -
487-321-40-07 $ -
487-321-40-08 $ -
487-321-40-09 $ -
487-321-40-10 $ -
487-321-40-11 $ -
487-321-40-12 $ -
487-321-40-13 $ 130.32
487-321-40-14 $ -
487-321-40-15 $ -
487-321-40-16 $ -
487-321-40-17 $ -
487-321-40-18 $ -
487-321-40-19 $ -
487-321-40-20 $ -
487-321-40-21 $ -
487-321-40-22 $ -
487-321-40-23 $ -
487-321-40-24 $ -
487-321-40-25 $ -
487-321-40-26 $ -
487-321-40-27 $ -
487-321-40-28 $ -

DOWNTOWN EL CAJON CBD – ASSESSMENT ENGINEER’S REPORT

31 487-321-40-29 $ -
487-321-40-30 $ -
487-321-40-31 $ -
487-321-40-32 $ -
487-321-40-33 $ -
487-321-40-34 $ -
487-321-40-35 $ -
487-321-40-36 $ -
487-321-40-37 $ -
487-321-40-38 $ -
487-321-40-39 $ -
487-321-40-40 $ -
487-321-40-41 $ -
487-321-40-42 $ -
487-321-40-43 $ -
487-321-40-44 $ -
487-321-40-45 $ 130.32
487-321-40-46 $ 107.01
487-321-40-47 $ 153.81
487-321-42-00 $ -
487-322-07-00 $ 1,941.00
487-322-26-00 $ 4,841.16
487-322-27-00 $ 7,917.42
487-323-17-00 $ 2,887.88
487-323-24-00 $ 2,223.00
487-323-26-00 $ 7,122.42
487-331-02-00 $ 983.44
487-331-03-00 $ 2,041.32
487-331-04-00 $ 433.36
487-331-05-00 $ 5,095.30
487-331-08-00 $ 1,364.60
487-331-09-00 $ 577.08
487-331-19-00 $ 2,842.94
487-331-22-00 $ 3,432.60
487-331-23-00 $ 1,204.66
487-331-24-00 $ 2,732.43
487-331-25-00 $ 2,661.18
487-331-26-00 $ 1,637.30
487-331-29-00 $ 1,574.22
487-331-30-00 $ 928.76
487-331-33-00 $ 3,373.72
487-331-35-00 $ 5,303.73
487-341-04-00 $ 2,536.54
487-341-05-00 $ 5,741.20
487-341-06-00 $ 1,950.39
487-342-07-00 $ 12,185.97
487-351-13-00 $ 1,585.18
487-351-18-00 $ 3,647.32
488-010-13-00 $ 1,916.20
488-010-23-00 $ 2,262.80
488-010-24-00 $ 2,034.26
488-010-25-00 $ 3,857.83
488-010-27-00 $ 2,231.43
488-010-36-00 $ 2,966.16
488-010-38-00 $ 2,580.52
488-010-40-00 $ 4,593.44
488-040-02-00 $ 2,409.47
488-040-07-00 $ 3,854.31
488-040-08-00 $ 5,694.12
488-040-11-00 $ 10,334.60
488-040-13-00 $ 14,197.88
488-040-14-00 $ 6,323.11
488-072-38-00 $ 5,642.12
488-072-43-00 $ 14,082.48
488-072-44-00 $ 724.58
488-072-45-00 $ 16,075.98
488-083-01-00 $ 1,571.06
488-083-02-00 $ 935.51
488-083-03-00 $ 696.26
488-083-04-00 $ 513.08
488-083-05 $ 826.60
488-083-08-00 $ 468.49
488-083-09-00 $ 1,050.00
488-083-11-00 $ 433.76
488-083-12-00 $ 915.80
488-083-13-00 $ 916.50
488-083-14-00 $ 324.00
488-083-15-00 $ 257.50
488-083-16-00 $ 257.50
488-083-17-00 $ 875.00
488-083-18-00 $ 468.00
488-083-19-00 $ 748.70
488-083-20-00 $ 720.00
488-083-21-00 $ 470.00
488-083-22-00 $ 603.49
488-083-23-00 $ 733.49
488-083-24-00 $ 1,925.79
488-083-26-00 $ 1,575.80
488-083-27-00 $ 2,502.02
488-111-24-00 $ 1,704.30
488-111-28-00 $ 13,711.74
488-111-30-00 $ 18,822.65
488-111-31-00 $ 11,338.00
488-111-32-00 $ 21,734.51
488-111-34-00 $ 1,875.07
488-111-35-00 $ 1,750.38
488-111-36-00 $ 1,375.57
488-112-19-00 $ 1,066.89
488-112-20-00 $ 1,039.22
488-112-21-00 $ 2,277.43
488-112-22-00 $ 3,767.30
488-112-23-00 $ 2,786.71
488-112-24-00 $ 1,679.72
488-112-25-00 $ 1,219.62

DOWNTOWN EL CAJON CBD – ASSESSMENT ENGINEER’S REPORT

32 488-112-43-00 $ 2,256.88
488-112-67-00 $ 1,877.59
488-113-10-00 $ 2,876.92
488-151-02-00 $ 700.50
488-151-12-00 $ 2,263.44
488-151-14-00 $ 1,515.16
488-151-15-00 $ 767.50
488-151-16-00 $ 655.00
488-151-17-00 $ 1,385.86
488-151-21-00 $ 1,476.56
488-151-22-00 $ 4,472.13
488-152-18-00 $ 172.89
488-152-19-00 $ 168.84
488-152-20-00 $ 168.84
488-152-21-00 $ 168.84
488-152-22-00 $ 168.84
488-152-23-00 $ 168.84
488-152-24-00 $ 172.89
488-152-25-00 $ 172.89
488-152-26-00 $ 168.84
488-152-27-00 $ 168.84
488-152-28-00 $ 168.84
488-152-29-00 $ 168.84
488-152-30-00 $ 168.84
488-152-31-00 $ 172.89
488-152-32-00 $ 172.89
488-152-33-00 $ 168.84
488-152-34-00 $ 168.84
488-152-35-00 $ 168.84
488-152-36-00 $ 168.84
488-152-37-00 $ 168.84
488-152-38-00 $ 172.89
488-152-39-00 $ 172.89
488-152-40-00 $ 168.84
488-152-41-00 $ 168.84
488-152-42-00 $ 168.84
488-152-43-00 $ 168.84
488-152-44-00 $ 168.84
488-152-45-00 $ 172.89
488-152-47-00 $ 5,287.18
488-152-48-00 $ 512.42
488-152-49-00 $ 1,321.74
488-152-50-00 $ 2,214.54
488-161-01-00 $ 1,148.29
488-161-02-00 $ 559.10
488-161-15-00 $ 2,060.58
488-161-17-00 $ 1,603.94
488-162-13-00 $ 1,340.63
488-162-15-00 $ 2,116.00
488-162-16-00 $ 1,373.08
488-162-17-00 $ 5,056.41
488-162-18-00 $ 1,937.40
488-171-16-00 $ 1,716.34
488-172-01-00 $ 1,780.24
488-172-18-00 $ 924.10
488-172-20-00 $ 1,156.33
488-191-01-00 $ 4,585.62
488-191-02-00 $ 1,279.12
488-191-03-00 $ 582.06
488-191-04-00 $ 5,626.12
488-191-05-00 $ 1,393.06
488-191-06-00 $ 1,016.06
488-191-07-00 $ 1,608.06
488-191-08-00 $ 1,578.26
488-191-09-00 $ 512.60
488-191-11-00 $ 350.00
488-191-12-00 $ 171.50
488-191-13-00 $ 171.50
488-191-14-00 $ 2,065.34
488-191-15-00 $ -
488-191-16-00 $ 974.70
488-192-08-00 $ 8,962.55
488-192-09-00 $ 17,001.12
488-200-01-00 $ 1,311.44
488-200-02-00 $ 1,026.50
488-200-56-00 $ 2,419.06
488-211-01-00 $ 2,894.12
488-211-02-00 $ 692.26
488-211-03-00 $ 378.80
488-211-04-00 $ 1,697.76
488-211-05-00 $ 2,285.12
488-211-06-00 $ 598.56
488-211-07-00 $ 1,291.90
488-211-15-00 $ 888.86
488-211-18-00 $ 1,451.65
488-211-20-00 $ 2,026.71
488-211-21-00 $ 1,435.82
488-211-22-00 $ 2,434.50
488-212-17-01 $ 64.62
488-212-17-02 $ 69.75
488-212-17-03 $ 65.61
488-212-17-04 $ 118.53
488-212-17-05 $ 69.75
488-212-17-06 $ 74.88
488-212-17-07 $ 77.49
488-212-17-08 $ 69.75
488-212-17-09 $ 118.53
488-212-17-10 $ 75.60
488-212-17-11 $ 69.75
488-212-17-12 $ 102.87
488-212-17-13 $ 76.50
488-212-17-14 $ 56.61
488-212-17-15 $ 56.61
488-212-17-16 $ 76.50

DOWNTOWN EL CAJON CBD – ASSESSMENT ENGINEER’S REPORT

33 488-212-19-00 $ 212.50
488-212-20-00 $ 546.38
488-212-21-00 $ 11,122.74
488-212-22-00 $ 3,508.84
488-221-30-00 $ 2,726.66
488-221-31-00 $ 933.63
488-221-32-00 $ 717.71
488-221-33-00 $ 1,693.86
488-222-01-00 $ 2,469.42
488-222-21-00 $ 5,099.34
488-231-03-00 $ 931.96
488-231-04-00 $ 322.22
488-231-05-00 $ 1,086.60
488-231-10-00 $ 1,649.78
488-231-12-00 $ 995.20
488-231-17-00 $ 1,500.00
488-231-18-00 $ 2,811.84
488-231-19-00 $ 1,500.00
488-231-22-00 $ 2,040.90
488-231-23-00 $ 7,948.44
488-231-24-00 $ 1,250.00
488-231-25-00 $ 1,082.98
488-231-26-00 $ 4,318.63
488-232-03-00 $ 1,836.80
488-232-04-00 $ 1,386.40
488-232-31-00 $ 1,701.00
488-232-34-00 $ 1,633.56
488-233-02-00 $ 2,091.65
488-233-03-00 $ 665.50
488-233-04-00 $ 917.70
488-233-05-00 $ 945.50
488-233-06-00 $ 795.30
488-233-07-00 $ 665.50
488-233-08-00 $ 769.50
488-233-47-00 $ 6,324.19
488-233-53-00 $ 577.80
488-233-55-00 $ 9,745.53
488-241-41-00 $ 3,422.92

DOWNTOWN EL CAJON CBD – ASSESSMENT ENGINEER’S REPORT

34 APPENDIX 2

DECCBD BOUNDARY MAP

DOWNTOWN EL CAJON CBD – ASSESSMENT ENGINEER’S REPORT

35 DOWNTOWN
~LCAJOiV
.,,.~,. ·--!.
:f
~~ 7 f---6t=J
City Council
Agenda Report
Agenda Item 7.

DATE: 07/28/2026
TO: Honorable Mayor and City Councilmembers
FROM: Ryan Villegas, Senior Management Analyst
SUBJECT: Social Services & Business Incubator Programs Update RECOMMENDATION:

That the City Council receives the report.

BACKGROUND:

In early 2024, the City purchased the property at 405 E. Lexington Avenue (Property) using American Rescue Plan Act funds (ARPA). Following the acquisition, the City entered into two separate lease agreements with the Chaldean Community Council (CCC). One lease agreement is for the CCC to provide social services to El Cajon residents; the second lease agreement is for office space at the property for the CCC to operate a Small Business Incubator.

The Small Business Incubator lease occurred because the CCC was the organization chosen through a Request for Proposal competitive process (RFP Scope of Work & the CCC's Submission are attached to this report).

The lease agreements expire on April 30, 2029, with the Small Business Incubator lease agreement to be reviewed in April 2027, with the ability to terminate the lease with six months' notice.

When the City acquired the Property, it was understood that tenant improvements would be required. The bid process closed earlier this month, and on July 28, 2026, the City Council will consider a Recommendation to Award the construction contract. Construction is expected to begin in September and finish by November, allowing final contractor payments to be made in December and ensuring all remaining ARPA funds are expended by the December 31 deadline.

In addition to the planned building improvements, staff is monitoring other developments related to the Property.

The City was recently notified that a $1 million federal Community Project Funding award, administered through the U.S. Department of Housing & Urban Development (HUD), has been designated for this Property. Staff is currently coordinating with HUD to understand the program requirements, reimbursement-based funding process, and the anticipated timeline.

Based on preliminary information, funding is not expected to be available immediately, and project implementation would likely occur no earlier than 2027. In the meantime, staff is attending required monthly meetings with HUD regarding the grant. attending required monthly meetings with HUD regarding the grant.

During the presentation to the City Council, staff will introduce the CCC staff, who will then introduce the members of the board and each of their roles within the organization. They will then provide updates on the two programs, including the items listed below.

Social Services Program

Number of individuals served since the program commenced operations; Maximum program capacity, current enrollment levels, and any waitlist or participant intake processes;
Demographic distribution of individuals receiving services; Overview of the program eligibility requirements;
Types of services provided to program participants;
Typical duration of participation and utilization of services; Program outcomes and performance measures used to evaluate effectiveness; and Other relevant information and operational details administered by the CCC.

Small Business Incubator
Update on participants currently enrolled in or receiving services through the program; Outreach efforts conducted to recruit and engage prospective participants; Community events, workshops, networking opportunities, and other business-related activities attended or hosted by the CCC during the current year, as referenced in prior reports submitted to the City;
Types of technical assistance, mentorship, training, or other support services provided to participants; and
Other relevant program information and operation updates administered by the CCC.

Finally, the CCC's most recent ARPA Quarterly Report, with current participants in the Small Business Incubator, is also included in this report.

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. Funding changes or new priorities may require environmental review which will be addressed prior to project approval.

FISCAL IMPACT:

No fiscal impact.

Prepared By: Ryan Villegas
Reviewed By: N/A
Approved By: Graham Mitchell, City Manager
Attachments
RFP Scope of Work
CCC Qualifications Submission for RFP
CCC ARPA Quarterly Report - July 2026
•
•
•
•
•
•
•
•
•
•
•
•
•
Business Incubator Participants
EXHIBIT "B"
Scope of Work from the Request for Proposal (RFP) for a "Small Business Incubator Operator" and Response from the Chaldean Community Council to said RFP.

SMALL BUSINESS INCUBATOR OPERATOR
RFP NO. 023-24
Due: October 24, 2023
II. SCOPE OF WORK
The City seeks an organization that can serve a minimum of five businesses annually through the Incubator. The City aims for the Incubator to be a supportive environment for a wide range of startups and early-stage businesses, helping them to grow and locate in El Cajon or neighboring communities. It is anticipated that the entity operating the Incubator will:
o Solicit local entrepreneurs interested in participating in the Incubator; o Outfit workspace areas in the approximate 3,000 square feet of office space provided by the City-the organization may also secure specialty equipment and other space offsite to provide support for the participating businesses such as 3-D printers, commercial kitchen space, etc.;
o Provide a mentorship and coaching program for Incubator participants in the areas of strategy, marketing, finance, and other critical business areas; o Help Incubator participants accessing capital and funding; o Provide workshops and training in the areas of business planning, marketing, legal compliance, accounting, etc.;
o Create opportunities for networking for Incubator participants; o Offer marketing and branding assistance; and
o Prepare Incubator participants in their investor pitches and presentations.

The City recognizes that other services may be offered as part of the Incubator. 19 ORGANIZATION
The El Cajon Small Business Incubator (ECSBI) is dedicated to empowering and catalyzing the successful growth of start up and small businesses in El Cajon with a special focus on uplifting the newcomer and refugee community. The incubator offers qualified businesses office space, personalized mentorship, extensive networks, comprehensive business support, workshops, marketing and branding assistance, funding, financial resources, and all the essential tools required to thrive and expand their ventures. Through this comprehensive support system, ECSBI not only aids individual businesses but also contributes to the broader economic vitality of the El Cajon community.

EXPERIENCE
The El Cajon Small Business Incubator (ECSBI) has a clear and unwavering mission to promote the growth and success of startups and small businesses within El Cajon, with a special focus on uplifting the newcomer and refugee community. By offering selected businesses access to an extensive array of vital resources-including accommodating office space, personalized mentorship, wide-ranging network connections, and various other critical business support services-ECSBI plays a pivotal role in their development journey. Additionally, the incubator enriches these businesses with practical workshops, expertise in marketing and branding, financial resources, and every essential tool they might need to thrive and expand in their respective markets.

Through this comprehensive support system, ECSBI not only aids individual businesses but also contributes to the broader economic vitality of the El Cajon community.

The incubator will operate under the experienced guidance of Noori Barka, Ph.D., Allen Hilantu, MSBA-FTP, and Kaye Turpin, nonprofit administrator/fundraiser. Each of these members shall bring a wealth of knowledge and expertise to build and empower the incubator. They will be actively supported by an immediate network of local community leaders who agreed to serve on the incubator's advisory board, helping to guide and shape the program effectively.

Noori Barka, Ph.D: President
Dr. Barka is a longtime resident of El Cajon and has over 30 years of business experience. He is the founder of over 25 small businesses in East San Diego County including 3 biotech companies, 2 schools, 2 restaurants/banquet halls, Adult day care, and other retail businesses.

Dr. Barka founded 5 nonprofit organizations to serve new comers and refugees from the Middle East; the Chaldean community council, Chaldean American annual festival, Kidinnu Charter school, Chaldean Radio, and Hope for Iraqi Christians.

Dr. Barka served as a board member at East County Chamber of commerce, East County Economic development, San Diego Leadership Forum, East County Boys and Girls Club and currently, he is a board member at Grossmont Hospital Foundation.

In 2015, Dr. Barka and city council member, Tony Ambrose submitted the first proposal of a small business incubator in the city of El Cajon. The proposal was approved by the city council and a funding of $10,000 were funded to start the process. However, the project was placed on hold as the city couldn't locate a space for the incubator.

Recently, Dr. Barka approached El Cajon city to reactivate the incubator project using the space available at the Chaldean Community Council building located at 405 East Lexington Ave in El-Cajon, which resulted in the current RFP.

Dr. Barka is a well-known community leader, widely recognized for his unwavering dedication to the El Cajon community. He is also a prominent philanthropist who puts a lot of time and effort to empower his people. Having thoroughly studied the incubator concept, Dr. Barka is convinced of its potential to significantly enhance the economy and support the growth of small businesses in El Cajon. Dr. Barka is not pursuing any compensation for his involvement in the incubator project; he will continue to serve as a dedicated volunteer and will be among the first to donate.

Allen Hilantu: Director of Operations
Allen has 6 years of experience in the corporate sector of financial services. He has worked with thousands of financial advisors who run their own practices and has also worked with tens of thousands of clients from all different backgrounds.

He has seen what kinds of businesses thrive and how they are successful through his exposure to such broad demographics. Not to mention Mr. Hilantu has a bachelor's degree in accounting and a master's degree in tax and finance. The two gentlemen have observed operations of several incubators in San Diego as well. The combined wisdom, education, and experience of these two gentlemen is sure to be conducive to a successful incubator.

Kaye Turpin: Director of Business Development
Kaye Turpin brings a plethora of knowledge, wisdom, and experience to the organization. She has a Master's degree in Nonprofit Leadership from the University of San Diego. Her experience is fully detailed in the attached resume, but a few highlights are as follows. Apart from raising millions of dollars for multiple nonprofit organizations, she sits on several boards for other nonprofit organizations.

El Cajon Incubator Advisory board:

The incubator will be supported by the following prominent local community and business leaders, representing a wide range of expertise from business, nonprofit sectors, and academia:

1. Mr. Rick Wilson: President, SDEC Chamber of Commerce

2. Mr. James Sly: President, ECEDC

3. Dr. David Miyashiro: Superintendent, CVUSD

4. Dr. Javier Ayala: Dean, Grossmont College

5. Mr. Saif Alhakeem: Regional Director, PCG

6. Ibrahim Ahmed, Legislative Advisor to Supervisor Joel Anderson of the San Diego County Board of Supervisors

7. Dr. Hala Madanat, PhD: Vice President for Research and Innovation at San Diego State University

8. Rawnaq Behnam: Herbert Wertheim School of Public Health and Human Longevity Science at UC San Diego

9. Dr. Gary Woods, PhD: Governing board member for Grossmont Union High School District

10. Mitch Johnson: Senior Programs Manager at the International Rescue Committee

BUSINESS PLAN
The incubator will focus on small businesses that want to start and remain in El Cajon.

The incubator will be open to all qualified candidates, but will be tailored to support talented newcomers who may have skills and education from their home country, but when they get to America there can be many barriers for them to enter the business world. They may lack the acumen or the resources necessary to start and form a business. That is where the incubator will assist in a variety of ways depending on where a prospect is in their process. Acknowledging the distinct challenges these businesses encounter, our concept revolves around the notion that fostering local entrepreneurship can greatly enhance regional development.

The array of businesses we aim to support through our incubator is diverse, spanning sectors like health services, restaurants, education, design, art, and more. We're open to any small business that aligns with our location's capacity and the space we have to offer. Recognizing the unique nature of each candidate and the varying stages of their business development, we are committed to providing a tailored evaluation to determine their fit with our incubator. Beyond business support, we are also dedicated to assisting entrepreneurs in overcoming language barriers and navigating the equivalency of certificates or degrees obtained in their home countries.

This is why we will focus our incubator on the immigrant community. Through our efforts and theirs, they will be able to see that with hard work and a hand up where needed, it is possible to be successful in America regardless of where you start.

This is how the process would look for a candidate:

Incubation Process
8 APPLICATION SCREENING BOARD APPROVAL BUSINESS SET UP RUN THE BUSINESS

PROVIDE CONTINUOUS GRADUATE AND GIVE

FUNDING AND BACK

SUPPORT

SERVICES OFFERED
ECSBI offers an array of services designed to empower small and startup businesses and set them on a path to success. Our services are strategically developed to address the common challenges that these businesses face and provide them with the resources they need to grow and thrive.

1. Office Space: ECSBI offers shared and private office spaces in a professional and collaborative environment. These spaces are equipped with necessary business amenities and provide a conducive environment for businesses to operate and grow.

We have access to this office space in our building along with desks, computers, chairs, printers, a break room, and restrooms on site.

2. Personalized Mentorship: We connect entrepreneurs with experienced mentors in their respective industries. These mentors provide personalized guidance to help businesses overcome challenges, make informed decisions, and plan for growth.

We have a network and board of successful professionals that our prospects will have access to.

3. Networking Opportunities: We organize regular networking events that provide businesses the opportunity to connect with industry leaders, potential investors, fellow entrepreneurs, and other valuable contacts. These relationships can open doors to new opportunities and collaborations. We have access to local venues that can assist with holding these events.

4. Business Training and Workshops: ECSBI conducts workshops on a range of business- related topics, such as marketing, branding, financial management, strategic planning, and more. These workshops are designed to enhance the skills and knowledge of entrepreneurs and equip them with the tools they need to manage and grow their businesses effectively. These can be executed in the classroom that we have in our building.

5. Financial Resources: We assist businesses in identifying and securing financial resources. This includes guidance on applying for business grants and loans, connecting with potential investors, and managing finances effectively.

6. Marketing and Branding Assistance: ECSBI offers support to businesses in developing effective marketing and branding strategies. This includes assistance with creating a strong brand identity, developing and implementing marketing plans, and utilizing digital marketing tools. Through our media outlet onsite, we can reach over 80,000 people. Not to mention we have a photography studio where we can produce photos and videos for the businesses that need it. This would all be done by our organization called Empower My Brand.

7. Business Support Services: We provide businesses with a range of support services, including administrative support, business planning, legal and accounting advice, and more. These services are designed to relieve entrepreneurs of some of the administrative burdens and allow them to focus more on their core business activities. We have access to these services through our network of direct and indirect employees and stakeholders in our organization.

FINANCING PLAN
Funding Model for ESBI:

1. Federal and state grants shall be a viable option for funding the incubator. These grants often come from various governmental agencies that aim to stimulate economic development, foster innovation, and support small businesses and startups, especially in communities with specific needs like those of newcomers and refugees. Our grant writer, Ms. Kaye Turpin has a great experience in obtaining these grants

2. Support from private donors and corporations approached by our consultant, Ms.

Kaye Turpin.

3. Private investors contribution to support the candidates within the incubator. This financial backing is crucial, as it not only provides the necessary capital for startups to scale their operations but also strengthens the overall ecosystem of the incubator.

By investing in these emerging businesses, investors play a pivotal role in fueling innovation and driving economic growth in the local community. Furthermore, these investments can offer investors access to a pipeline of promising startups, potentially leading to profitable returns and long-term partnerships.

4. Local Business Sponsorships: We started a membership program to promote local businesses in San Diego through our social media outlets including the Chaldean radio. We charge monthly fees based on the specific need for each business starting from $500 per month. We do video production, live interviews, product photography, commercial ads, merchandise production and other related marketing campaigns.

5. Partnerships: We started approaching our partners to provide support to our incubator including but not limited to: East County Chamber of Commerce, East County Economic Development Council, Public Consulting Group (PCG), IRC, Local colleges and Universities.

6. City's Contribution: We are indeed grateful for the city's commitment to provide the building space. Moreover, the idea of offering post-graduation grants to businesses that set up within the city limits is commendable and aligns perfectly with our vision of fostering local entrepreneurship.

7. Repayment Mechanism for businesses benefiting from ESB! could repay through a flexible model. This might include a modest percentage of their profits over a specified period or a fixed repayment rate. Additionally, businesses might also contribute in-kind, such as offering free workshops or mentoring subsequent incubator entrants.
creation, and the tangible economic benefits they bring to our community. Each business will have a different path to fully being able to be on their own. We will have our own proprietary assessment of when businesses are ready to graduate based on revenue, amount of clientele, and overall knowledge the business owner has obtained through our program. We would ensure they are ready to not only be on their own, but flourish on their own so they can continue to be a productive tax paying business in the local community.

READINESS TO OPERATE
Upon approval, we can operate as of January 2024.

El Cajon SBI July 2026 Annual Report ● Businesses applied to participate in the incubator program (name, phone number, email, type of business,

ownership,

location,

etc.);

○

Outline

separate

documents.

● Businesses accepted to participate in the incubator program (name, phone number, email, type of business,

ownership,

location,

etc.);
○ Outline on separate documents.
●

Detail

services

provided

each

business:

○ Jorge Magana - We continue to implement targeted marketing initiatives designed to diversify his client

base,

increase

visibility,

and

expand

his

service

offerings,

including

Arabic

and

other

multilingual

translation

services.

These

efforts

are

focused

connecting

him

with

new

opportunities,

reaching

broader

range

clients,

and

supporting

the

continued

growth

and

sustainability

his

business.

○ Mays Mansoor -. We provide ongoing mentorship, marketing guidance, and business development support

facilitating

connections

with

qualified

leads

and

assisting

with

talent

acquisition

help

streamline

and

enhance

her

creative

process.

addition

growing

her

own

business,

she

actively

supports

fellow

incubator

members

sharing

her

expertise

content

creation,

digital

marketing,

and

social

media

strategy,

helping

them

strengthen

their

brand

presence

and

expand

their

reach.

○ Ann Jahola - Ann Jahola continues to utilize our facilities for patient consultations, and we remain dedicated

providing

professional,

welcoming,

and

supportive

environment

that

meets

the

needs

both

her

and

her

clients.

are

proud

support

her

work

offering

comfortable

space

that

allows

her

effectively

serve

her

patients

and

continue

growing

her

practice.

○ Gloria Del Rio - No response has been received during this cycle with Gloria ○ Paloma Escobedo - No response has been received during this cycle with Paloma ○ Meron Cholagh - No response has been received during this cycle with Meron ● Businesses "graduating" from the incubator program (name, phone number, email, type of business, ownership,

location,

etc.);

○

one

graduate

from

the

program

during

this

cycle.

●

Track

business

success

post-graduation

for

three

years.
○ We plan to hold quarterly meetings with all our incubated programs to gather data and gain insights into their business progress after graduation. As of now, no participants have graduated

from

the

program

● Outreach activities aimed at promoting diversity, equity, and inclusion of businesses participating in the

incubator

program.

○ We have attended numerous events to promote the Small Business Incubator, including political watch parties, Lincoln Club events, and networking gatherings with local business owners. These events have provided valuable opportunities to build relationships and increase awareness of the incubator's mission and resources.

We have also participated in meetings with the emerging Chaldean Chamber of Commerce in El Cajon, connecting with the area's growing entrepreneurial community and exploring opportunities to support local business development.

In addition, we have worked closely with the Economic Development Council (EDC), including visiting their offices to strengthen our partnership and identify opportunities for collaboration that will benefit entrepreneurs and small businesses throughout the region.

Additional Information: Our offices are currently undergoing renovations and are not yet usable. In the meantime, we’ve been making the most of our available space to continue operations and serve our community. We’re also actively developing our website, https://elcajonsbi.org, and working on launching a streamlined online application process for prospective applicants. We’ve officially completed demolition. Once cleared, the city will move into reconstruction. When renovations are complete, we’ll be hosting a grand opening celebration for the incubator, a chance for everyone in the neighborhood to explore the valuable resources we’ll be offering to support local business growth and innovation in El Cajon.

El Cajon SBI July 2026
Name Number Email Business
Type
Owner
ship
Location Address Company
name
Start
Date
End
Date
Jorge
Magana
(619)

@ophia
na.com
Insurance Sole El Cajon
Bradley Ave,
El Cajon, CA
92021
Jorge
Magana
Insuranc
e
5/31/25 TBD
Mays
Mansoor
(619)
@gmail.com
Marketing Sole El Cajon Hilton
Head El
Cajon 92019
SAS -
Modern
Marketin
g
5/25/25 TBD
Ann
Jahola
(619)

@g
mail.com
Special
education
Sole El Cajon
Washington
Ave El
Cajon 92019
Motifa
Behavior
al Care &
Health
Service
8/15/24 TBD
Gloria Del
Rio
(619)

@gma
il.com
Art studio
and
workshop
venue
Sole El Cajon
highway 8
business
El
cajon Ca
92021
La Luna
art studio
10/03/25 TBD
Paloma
Escobedo
(619)
@gmail.c
om
Mobile Dog
Washing
Sole El Cajon
Bradley Ave
El
Cajon, CA
92021
TBD 10/10/25 TBD
Meron
Cholagh
619 @mybuild
erdepot.com
Construction
Materials
Sole El Cajon

Builder
Depot
3/20/26 TBD

City Council
Agenda Report
Agenda Item 8.

DATE: 07/28/2026
TO: Honorable Mayor and City Councilmembers
FROM: Mara Romano, Purchasing Agent
SUBJECT: Approval of Resolutions to Award Bid No. 005-27 – 405 E. Lexington Avenue Tenant Improvements and Approve Plans & Specifications RECOMMENDATION:

That the City Council approves the next Resolutions, in order, to:

Approve Plans and Specifications for 405 E. Lexington Avenue Tenant Improvements, Bid No. 005-27;

1. Find the following:

Protest (Ground 1) submitted by GQ Builders, Inc. (GQBI) to be timely and with merit;
Protest (Grounds 2 through 4) submitted by GQBI to be timely and without merit; The apparent first and fourth low bidders non-responsive for the reasons set forth in the agenda report; and

2. Award the bid to the lowest responsive, responsible bidder, GQ Builders, Inc. (GQBI), in the amount of $430,000.

3. BACKGROUND:

In early 2024, the City purchased the property at 405 E. Lexington Avenue using American Rescue Plan Act funds (ARPA). Upon purchase, the City was aware of various tenant improvements that were required at the property. Staff issued a formal bid for the 405 E.

Lexington Avenue Tenant Improvements project, which is also funded with ARPA funds. The project encompasses a roof and HVAC replacement, interior renovations for new office spaces, ADA accessibility, and various mechanical, electrical, and plumbing upgrades.

The specifications include the following Additive Alternates (AA):

AA #1: Interior Lighting, Suspended Acoustic Ceiling, Flooring; AA #2: Exterior Motorized Gate Operator, Electrical, Controls, Stucco, Trash Enclosure Retrofit;
AA #3: 2nd Story Demolition, Partition Walls, Door and Door Frames, Ceilings, Electrical, Mechanical, Fire Sprinkler, Finishes for Room Studio 219, Office 227 and Office 228; AA #4: 2nd Story Power and Data;
AA #5: Parking Accessibility; and
AA #6: Building Accessibility, Restroom Upgrades.

The California Public Contract Code allows the City to specify which award method will be utilized to determine the lowest bid. Per the bid specifications, the lowest bid shall be the lowest total of the bid prices on the base contract and those additive or deductive items that were specifically identified in the bid solicitation as being used for the purpose of determining •
•
•
•
•
•
•
•
•
were specifically identified in the bid solicitation as being used for the purpose of determining the lowest bid price. For the purpose of evaluating this bid, all additive items were identified as being used for the purpose of determining the lowest bid. Even though the items are considered for this purpose, this language does not require the City to include the additive items in the contract after the lowest responsible bidder has been determined. After examining the bids, Additive Alternate #3 will be included in the award.

The bid was advertised on May 26, 2026. The City received 11 bids on July 2, 2026, and evaluated the four lowest bid submissions.

GQBI submitted a written protest dated July 8, 2026, which includes four grounds for protest concerning the apparent low bidder, Neema General Contracting (NGC).

Ground One states the apparent low bidder, NGC, does not possess a C-16 Fire Protection Contractor license required to perform the fire work specified.

The project’s scope of work includes fire sprinkler and fire alarm modifications. NGC holds a Class B - General Building Contractor license, as set forth in the specifications.

The Business & Professions Code - Division 3, Chapter 9. Article 4. 7057.(c) as referenced by the California Contractors State Licensing Board (CSLB), states, in part, “A general building contractor shall not contract for any project that includes a fire protection system”. A contractor holding a Fire Protection contractor classification, C-16 license, is required to perform this work.

City staff has determined that Ground One of the protest submitted by GQBI was received within the timeframe provided and is with merit.

Consequently, the first and fourth low bidders, NGC and Loghmani & Associates, Inc., and their listed subcontractors do not possess a CSLB C-16 license, making their bids non-responsive.

Ground Two states NGC did not list a prime or subcontractor for Glazing work.

A qualified Class B– General Building Contractor can perform this work.

Ground Three states NGC did not provide Proof of System for Award Management (SAM) Registration in accordance with the specifications Checklist, which states, “The following documents must be submitted to comprise a complete bid.” This is a minor irregularity since it does not materially change the bid response and provides no advantage as the City can confirm active SAM registration with information provided on the Acknowledgment of System for Award Management Requirement form submitted with NGC’s bid.

Ground Four states NGC did not list subcontractors on the California Air Resources Board (CARB) In-Use Off-Road Diesel-Fueled Fleets form.

This is a minor irregularity since it does not materially change the bid response and provides no advantage as NGC confirmed their subcontractors will not be using vehicles subject to CARB requirements in the performance of this project.

City staff has determined that Grounds Two through Four of the protest were received within the timeframe provided but are without merit.
•
•
•
•
Therefore, staff recommends the City Council adopts the following Resolutions, in order, to:

(1) Approve the plans and specifications for the project; and (2) Finds Ground One of the protest submitted by GQBI timely and with merit; Ground Two through Four timely but without merit; and the first and fourth low bidders non-responsive for the reasons cited above; and
(3) Award the bid to the lowest responsive, responsible bidder, GQBI, in the amount of $430,000.

CALIFORNIA ENVIRONMENTAL QUALITY ACT:

This project is exempt from the California Environmental Quality Act ("CEQA") pursuant to State CEQA Guideline section 15301, Class 1 (Existing Facilities) as it is a minor alteration involving such things as interior partitions, plumbing, electrical conveyances and other repairs or maintenance.

FISCAL IMPACT:

The fiscal impact is $430,000. Sufficient funds are included in 405 E Lexington Ave Tenant Improvements (263878ESCP) budget.

Prepared By: Mara Romano, Purchasing Agent
Reviewed By: Yazmin Arellano, Director of Development Services Approved By: Graham Mitchell, City Manager
Attachments
Resolution - Plans & Specs
Resolution - Award
Bid Summary - 005-27

Page 1 of 1 ends

RESOLUTION NO. -26

A RESOLUTION OF THE CITY COUNCIL OF

THE CITY OF EL CAJON APPROVING PLANS
AND SPECIFICATIONS FOR 405 E. LEXINGTON

AVENUE TENANT IMPROVEMENTS
(Bid No. 005-27)

WHEREAS, the Director of Development Services has submitted plans and specifications for Bid No. 0 05-27 for the 405 E. Lexington Tenant Improvements project (the "Project"); and

WHEREAS, it appears to be in the best interests of the City of El Cajon that the plans and specifications for the Project should be approved.

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

1. That the plans and specifications for the Project submitted by the Director of Development Services are hereby approved and adopted as the official plans and specifications for said Project.

2. Said plans and specifications are directed to be filed in the office of the Director of Development Services of the City of El Cajon.

Page 1 of 2 ends

RESOLUTION NO. ___-26

A RESOLUTION OF THE CITY COUNCIL OF

THE CITY OF EL CAJON AWARDING BID FOR
405 E. LEXINGTON AVENUE TENANT IMPROVEMENTS
(BID NO. 005-27)

WHEREAS, on May 26, 2026, the City of El Cajon (the "City") advertised Bid No. 005-27 for the 405 E. Lexington Avenue Tenant Improvements project (the "Project"); and

WHEREAS, the Project, funded by the Coronavirus State & Local Fiscal Recovery (American Result Plan Act) funds , includes tenant improvements consisting of roof and HVAC replacement, interior renovations for new office spaces, ADA accessibility, and various mechanical, electrical, and plumbing upgrades; and

WHEREAS, the specifications included the following Additive Alternates (AA):

1. AA #1: Interior Lighting, Suspended Acoustic Ceiling, Flooring;

2. AA #2: Exterior Motorized Gate Operator, Electrical, Controls, Stucco, Trash Enclosure Retrofit;

3. AA #3: 2nd Story Demolition, Partition Walls, Door and Door Frames, Ceilings, Electrical, Mechanical, Fire Sprinkler, Finishes for Room Studio 219, Office 227 and Office 228;

4. AA #4: 2nd Story Power and Data;

5. AA #5: Parking Accessibility; and

6. AA #6: Building Accessibility, Restroom Upgrades.

WHEREAS, California Public Contract Code allows the City to define in advance how it will determine the lowest bid, and for this Project, the City specified that the lowest bid would be calculated using the base contract price plus any Additive Alternates; and

WHEREAS, eleven bids were received by the July 2 , 2026 deadline and four (4) were evaluated by including all Additive Alternates in the total price comparison to identify the lowest responsible bidder, and once identified, the City exercised discretion to include all Additive Alternates in the award; and

WHEREAS, on July 8, 2026, GQ Builders, Inc. submitted a written protest including four grounds for protest concerning the apparent low bidder, Neema General Contracting ("NGC"), wherein Ground One stated that NGC does not possess a C-16 Fire Protection Contractor license required to perform the work in accordance with the specifications, and City staff has determined that Ground One of this protest was timely and with merit, and Grounds Two through Four, as set forth in the agenda report, were timely, but w ithout merit; and

WHEREAS, the fourth low bidder, Loghmani & Associates, Inc. and their listed subcontractors do not possess a CSLP C-16 license, resulting in Loghmani & Associates, Inc.'s bid being deemed non-responsive; and

Page 2 of 2 ends

WHEREAS, the City Council believes it to be in the best interest of the City to award the Bid to GQ Builders, Inc. in the not-to-exceed amount of $430,000; and

WHEREAS, t he current fiscal impact for the Project is $ 430,000 and sufficient funds are included in the 405 E. Lexington Ave Tenant Improvements (263878ESCP) budget; and

WHEREAS, the proposed Project is exempt from the California Environmental Quality Act ("CEQA") pursuant to State CEQA Guidelines section 15301, which exempts the minor alteration of existing public or private structures, as the proposed work includes the minor alteration of an existing public structure.

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

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

2. The proposed Project is exempt from the California Environmental Quality Act ("CEQA") pursuant to State CEQA Guidelines section 15301.

3. The City Council hereby finds Ground One of the protest submitted by GQ Builders, Inc. to be timely and with merit.

4. The City Council hereby finds Grounds Two through Four of the protest submitted by GC Builders, Inc. to be timely, but without merit, for the reasons set forth in the agenda report.

5. The City Council hereby finds the apparent first and fourth low bidders non- responsive for the reasons set forth above.

6. The City Council hereby awards the bid to the lowest responsive, responsible bidder, GQ Builders, Inc. in the not -to-exceed amount of $4 30,000, and rejects all other bids received for the Project.

7. The City Manager, or designee, and City Clerk are authorized and directed to execute a contract for the Project on behalf of the City (the " Contract"), with such changes or amendments as maybe approved by the City Manager , or designee, and to take all actions and to execute all documents and/or attachments to the Contract , and other documents necessary or appropriate to carry out the terms of the Contract.

City of El Cajon – Purchasing Division

BID EVALUATION
(To be included as an attachment to the agenda report.) Bid No. 005-27 Bid Name: 405 E. Lexington Avenue Tenant Improvements Solicitation Due Date/Time: July 2, 2026/ 2:00 p.m. Initial Date of Advertisement: May 26, 2026 Number of Responses Received: 11

Bid Estimate: $950,000

SUMMARY OF BIDS (INCLUDE ANY ADD. ALTS.):
bp Glass
Garage Doors
Neema
General
Contracting
GQ Builders,
Inc.

SWCS, Inc. Loghmani &
Associates,
Inc.

Camp
Constructors Inc
BASE BID $0.00 $455,940.00 $351,000.00 $392,716.00 $302,448.00 $450,000.00 ADDITIVE ALTERNATE #1 $0.00 $23,721.00 $69,000.00 $30,265.00 $105,200.00 $100,000.00 ADDITIVE ALTERNATE #2 $0.00 $36,250.00 $35,000.00 $46,890.00 $31,000.00 $75,000.00 ADDITIVE ALTERNATE #3 $0.00 $148,818.00 $79,000.00 $98,599.00 $77,500.00 $200,000.00 ADDITIVE ALTERNATE #4 $0.00 $7,037.00 $14,000.00 $28,291.00 $52,500.00 $50,000.00 ADDITIVE ALTERNATE #5 $0.00 $18,750.00 $12,000.00 $3,660.00 $10,000.00 $25,000.00 ADDITIVE ALTERNATE #6 $0.00 $155,050.00 $309,000.00 $282,297.00 $311,000.00 $75,000.00 $0.00 $845,566.00 $869,000.00 $882,718.00 $889,648.00 $975,000.00

Optima
RPM,Inc
Sitka
Construction
Group
Fordyce
Construction,
Inc.

Vasquez
Construction
Company
M. Brey, Inc Reed Family
Enterprises, Inc.

BASE BID $437,246.59 $700,000.00 $415,895.00 $713,073.00 $576,826.66 $400,000.00 ADDITIVE ALTERNATE #1 $88,108.27 $100,000.00 $83,000.00 $50,840.00 $87,250.22 $100,000.00 ADDITIVE ALTERNATE #2 $62,310.91 $80,000.00 $88,200.00 $53,070.00 $106,512.79 $180,000.00 ADDITIVE ALTERNATE #3 $116,670.96 $90,000.00 $156,900.00 $102,116.00 $96,918.99 $175,000.00 ADDITIVE ALTERNATE #4 $7,585.20 $15,000.00 $48,500.00 $17,637.00 $18,529.29 $60,000.00 ADDITIVE ALTERNATE #5 $6,731.42 $5,000.00 $12,500.00 $10,120.00 $24,723.29 $18,000.00 ADDITIVE ALTERNATE #6 $375,076.57 $140,000.00 $394,800.00 $260,816.00 $481,463.56 $580,000.00 $1,093,729.92 $1,130,000.00 $1,199,795.00 $1,207,672.00 $1,392,224.80 $1,513,000.00

BID EVALUATION (TOP FOUR LOWEST RESPONSES):

Bidder Bid Responsiveness Notes
Bp Glass Garage Doors NO BID
Neema General Contracting No Failure to hold or list subcontractor(s) with a CSLB C - 16 license.

GQ Builders, Inc. Yes
SWCS, Inc. dba Southwest
Construction Services, Inc.

Yes Additional time was provided to submit complete
California Air Resources Board (CARB) In-Use Off-Road
Diesel-Fueled Fleets form and provide Certificates of
Reported Compliance for subcontractors subject to
CARB. Prime contractor complied. This is a minor
irregularity since it does not materially change the bid response and provides no advantage.
;£µvo.,~
1'hl't1ll9q/Qppvrl1odty
~ ~- -;-
"o ,q "'Porate.~
Loghmani & Associates, Inc. No Failure to hold or list subcontractor(s) with a CSLB C - 16 license.

LEGAL REVIEW REQUIRED: YES  NO  IF YES, DATE LEGAL REVIEW COMPLETED: July 13, 2026 RENEWAL OPTIONS: YES  NO  IF YES, SPECIFY TERM W/RENEWAL OPTIONS: _ _ _ ______________ LOWEST, RESPONSIVE, RESPONSIBLE BIDDER NAME AND AMOUNT: GQ BUILDERS, INC, $430,000 (BASE BID + ADDITIVE ALTERNATE #3)
PURCHASING DIVISION:

Review Completed By: Mara Romano Date: July 20, 2026

I I I I
City Council
Agenda Report
Agenda Item 9.

DATE: 07/28/2026
TO: Honorable Mayor and City Councilmembers
FROM: Mayor Wells
SUBJECT: Council Activity Report
RECOMMENDATION:

That the City Council accepts and files the following report of Council/Mayor activities attended during the current agenda period.

BACKGROUND:

Government Code Section 53232.3(d) requires members of a legislative body to provide brief reports on meetings attended at the expense of the local agency at the next regular meeting of the legislative body. This City Administrative Activity is not a project and therefore not subject to CEQA.

REPORT:

Since the last City Council meeting, I have attended the following events on behalf of the City of El Cajon:

July 28, 2026 - Meeting with District Attorney's Office July 28, 2026 - City Council Meeting(s)
I am available to answer questions.

Submitted By: Bill Wells, Mayor
City Council
Agenda Report
Agenda Item 10.

DATE: 07/28/2026
TO: Honorable Mayor and City Councilmembers
FROM: Councilmember Goble
SUBJECT: COUNCILMEMBER STEVE GOBLE
MTS (Metropolitan Transit System Board); East County Advanced Water Purification JPA Board; Chamber of Commerce – Government Affairs Committee; SANDAG – Board of Directors – Alternate.

RECOMMENDATION:

That the City Council accepts and files the following report of Council/Mayor activities attended during the current agenda period.

BACKGROUND:

REPORT:

Since the last City Council meeting, I have attended the following events on behalf of the City of El Cajon:

July 10, 2026 - Emails with Rob B re: Amikas cabins
July 11, 2026 - MTS Executive Committee Meeting
July 14, 2026 - Emails with Pastor Zeb @ SD Rock Church July 15, 2026 - Emails with Julia T @ SD MTS re: citizen inquiry July 20, 2026 - Emails with Kenjanae T re: Downtown El Cajon development July 21, 2026 - AWP Site Tour
July 21, 2026 - Speak at MTS Comic Con press conference July 27, 2026 - Meeting with City Manager
July 28, 2026 - City Council Meeting(s)
I am available to answer questions.

Submitted By: Steve Goble, Councilmember
City Council
Agenda Report
Agenda Item 11.

DATE: 07/28/2026
TO: Honorable Mayor and City Councilmembers
FROM: Councilmember Kendrick
SUBJECT: COUNCILMEMBER GARY KENDRICK
METRO Commission/Wastewater JPA; Heartland Communications; Heartland Fire Training JPA.

RECOMMENDATION:

That the City Council accepts and files the following report of Council/Mayor activities attended during the current agenda period.

BACKGROUND:

REPORT:

Since the last City Council meeting, I have attended the following events on behalf of the City of El Cajon:

July 23, 2026 - Heartland Communications Facility Authority Meeting July 28, 2026 - City Council Meeting(s)
I am available to answer questions.

Submitted By: Gary Kendrick, Councilmember
City Council
Agenda Report
Agenda Item 12.

DATE: 07/28/2026
TO: Honorable Mayor and City Councilmembers
FROM: Deputy Mayor Metschel
SUBJECT: DEPUTY MAYOR MICHELLE METSCHEL
Harry Griffen Park Joint Steering Committee; METRO
Commission/Wastewater JPA – Alternate; Heartland Communications – Alternate; Heartland Fire Training JPA – Alternate.

RECOMMENDATION:

That the City Council accepts and files the following report of Council/Mayor activities attended during the current agenda period.

BACKGROUND:

REPORT:

Since the last City Council meeting, I have attended the following events on behalf of the City of El Cajon:

July 24, 2026 - WISE (Women in Service Everywhere) Meeting July 28, 2026 - City Council Meeting(s)
I am available to answer questions.

Submitted By: Michelle Metschel, Deputy Mayor
City Council
Agenda Report
Agenda Item 13.

DATE: 07/28/2026
TO: Honorable Mayor and City Councilmembers
FROM: Councilmember Ortiz
SUBJECT: COUNCILMEMBER 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 JPA Board – Alternate; Chamber of Commerce – Government Affairs Committee – Alternate; SANDAG – Board of Directors – Alternate.

RECOMMENDATION:

That the City Council accepts and files the following report of Council/Mayor activities attended during the current agenda period.

BACKGROUND:

REPORT:

Since the last City Council meeting, I have attended the following events on behalf of the City of El Cajon:

July 21, 2026 - East County Chamber of Commerce Government Affairs Committee Meeting July 28, 2026 - City Council Meeting(s)
I am available to answer questions.

Submitted By: Phil Ortiz, Councilmember
City Council
Agenda Report
Agenda Item 14.

DATE: 07/28/2026
TO: Honorable Mayor and City Councilmembers
FROM: Mayor Bill Wells and City Councilmember Phil Ortiz SUBJECT: Sewer Lateral Policy
RECOMMENDATION:

That the City Council directs staff to present an analysis regarding the City's current sewer lateral policy.

BACKGROUND:

There have been recent discussions about property owners' responsibility to maintain and repair their sewer laterals. In response, staff prepared a memo to the City Council regarding sewer laterals. However, the analysis did not provide the City Council with the opportunity to discuss it, ask questions, and solicit feedback from the community. We recommend that staff present an analysis regarding sewer laterals for discussion during a City Council meeting.

CALIFORNIA ENVIRONMENTAL QUALITY ACT:

FISCAL IMPACT:

None.

Prepared By: Mayor Bill Wells and City Councilmember Phil Ortiz Reviewed By: N/A
Approved By: N/A
City Council
Agenda Report
Agenda Item 15.

DATE: 07/28/2026
TO: Honorable Mayor and City Councilmembers
FROM: Mayor Bill Wells and Deputy Mayor Michelle Metschel SUBJECT: Parkway Plaza Acquisition Options
RECOMMENDATION:

That the City Council directs staff to prepare and return with an analysis of the potential options to acquire the Parkway Plaza property.

BACKGROUND:

Parkway Plaza has experienced significant financial and operational challenges in recent years. The property's ownership entity filed for Chapter 11 bankruptcy protection in 2024, and the shopping center is currently under the control of a court-appointed bankruptcy trustee responsible for overseeing its disposition and management. The recent closure of Walmart, one of the center's major anchor tenants, further underscores the ongoing decline of the mall and raises concerns regarding its long-term economic viability and impact on the surrounding area.

Recognizing the importance of Parkway Plaza as a strategic commercial property, the City recently secured a San Diego Association of Governments (SANDAG) grant to undertake a land use analysis evaluating the site's long-term redevelopment potential. Given the property's financial uncertainty and its significance to the City's economic future, the City Council may wish to evaluate, for general planning purposes, public acquisition options of the property to better position the City to guide its long-term redevelopment. We recommend that the City Council directs staff to return to the City Council with an analysis of the legal, financial, and policy considerations associated with the potential acquisition options of Parkway Plaza. This direction to staff does not commit the City to any particular course of action and is instead intended for general planning purposes only.

CALIFORNIA ENVIRONMENTAL QUALITY ACT:

This action is not subject to the California Environmental Quality Act ("CEQA") pursuant to State CEQA Guidelines section 15378(b)(5), because it is an organizational activity of government that will not result in direct or indirect physical changes in the environment. Any future actions directed by the City Council related to Parkway Plaza will be assessed in accordance with CEQA.

FISCAL IMPACT:

No significant consulting services will be required to complete the analysis.

Prepared By: Mayor Bill Wells and Deputy Mayor Michelle Metschel Reviewed By:

Approved By: N/A
City Council
Agenda Report
Agenda Item 16.

DATE: 07/28/2026
TO: Honorable Mayor and City Councilmembers
FROM: Mayor Bill Wells and Deputy Mayor Michelle Metschel SUBJECT: Kaiser Permanente Acquisition Options
RECOMMENDATION:

That the City Council directs staff to prepare and return with an analysis of the potential options to acquire the Kaiser Permanente property.

BACKGROUND:

Kaiser Permanente has owned an approximately 25-acre undeveloped property located in the City of El Cajon since the early 2000s. Kaiser Permanente has previously expressed an intent to develop the site with a regional medical campus and hospital. However, there is no indication or guarantee regarding the timing of such development, nor certainty that the property will ultimately be used for this purpose. Because the City is largely built out, an undeveloped property of this size represents one of the most significant remaining development opportunities in the City and has substantial economic, employment, housing, and public benefit potential.

Recognizing the importance of the site to the City’s long-term economic and land use future, the City Council may wish to evaluate options to facilitate the property's development. We recommend that the City Council directs staff to return with an analysis of the legal, financial, land use, and policy considerations associated with potential options to acquire the Kaiser Permanente property. This direction to staff does not commit the City to any particular course of action and is instead intended for general planning purposes only.

CALIFORNIA ENVIRONMENTAL QUALITY ACT:

This action is not subject to the California Environmental Quality Act ("CEQA") pursuant to State CEQA Guidelines section 15378(b)(5), because it is an organizational activity of government that will not result in direct or indirect physical changes in the environment. Any future actions directed by the City Council related to the Kaiser Permanente property will be assessed in accordance with CEQA.

FISCAL IMPACT:

None.

Prepared By: Mayor Bill Wells and Deputy Mayor Michelle Metschel Reviewed By:

Approved By: N/A
City Council
Agenda Report
Agenda Item 17.

DATE: 07/28/2026
TO: City Clerk
FROM: City Attorney/General Legal Counsel
SUBJECT: Closed Session - Conference with Legal Counsel - Anticipated Litigation - Initiation of litigation pursuant to paragraph (4) of subdivision (d) of Government Code section 54956.9: Three (3) potential cases RECOMMENDATION:

That the following Closed Session be scheduled for the Joint City Council / Housing Authority / Successor Agency to the El Cajon Redevelopment Agency meeting on Tuesday, July 28, 2026, at 3:00 p.m.

CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION – Initiation of litigation pursuant to paragraph (4) of subdivision (d) of Government Code section 54956.9:

Number of potential cases: 3
Jennifer M. Lyon
City Attorney

JML:rnb
City Council
Agenda Report
Agenda Item 18.

DATE: 07/28/2026
TO: City Clerk
FROM: City Attorney/General Legal Counsel
SUBJECT: Closed Session - Conference with Legal Counsel - Existing Litigation pursuant to paragraph (1) of subdivision (d) of Government Code section 54956.9: Haralson vs El Cajon Police Department, et al.

RECOMMENDATION:

That the following Closed Session be scheduled for the Joint City Council / Housing Authority / Successor Agency to the El Cajon Redevelopment Agency meeting on Tuesday, July 28, 2026, at 3:00 p.m.

CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION – pursuant to paragraph (1) of subdivision (d) of Government Code section 54956.9:

NAME OF CASE:

Haralson vs El Cajon Police Department, et al.

San Diego Superior Court Case No. 37-2023-00041789-CU-PO-CTL Jennifer M. Lyon
City Attorney

JML:rnb
City Council
Agenda Report
Agenda Item 19.

DATE: 07/28/2026
TO: City Clerk
FROM: City Attorney/General Legal Counsel
SUBJECT: Closed Session - CONFERENCE WITH LEGAL COUNSEL- ANTICIPATED LITIGATION Significant exposure to litigation pursuant to Government Code section 54956.9(d)(2) (1 case) Existing facts and circumstances pursuant to Government Code section 54956.9 (e)(1) RECOMMENDATION:

That the following Closed Session be scheduled for the Special Joint City Council / Housing Authority / Successor Agency to the El Cajon Redevelopment Agency meeting on Tuesday, July 28, 2026, at 3:00 p.m.

CONFERENCE WITH LEGAL COUNSEL- ANTICIPATED LITIGATION Significant exposure to litigation pursuant to Government Code section 54956.9(d)(2) (1 case) Existing facts and circumstances pursuant to Government Code section 54956.9 (e)(1) NAME OF CASE:

One (1) potential case
Jennifer M. Lyon
City Attorney

JML:rnb

El Cajon City CouncilJuly 28, 2026

El Cajon City Council
July 28, 2026