Agenda Item No: K.1
AGENDA REPORT
DATE: June 3, 2025
TO: Mayor and Council
FROM: David Gassaway, City Manager
SUBJECT: CD Consultant Services Agreement for a New Downtown Fairfield Property-Based Improvement District or Community Benefit Improvement District
Consideration of a Consultant Services Agreement with New City America, Inc. for Investigation of and Potential Formation of a New Downtown Fairfield Property -Based Improvement District or Community Benefit Improvement District
Funding Source: $34,000; Fund to be Determined
Contact: David Zellers, (707) 428-7436
RECOMMENDED ACTION
Receive report, open discussion, and provide direction to staff.
STATEMENT OF ISSUE
Since termination of services with the Downtown Mainstreet Association, there has not been a central coordinating entity for business improvement services in downtown Fairfield. Formation of a Property -Based Improvement District (PBID) or Community Benefit Improvement District (CBID) can create a sustainable funding source for property/business owners to enhance downtown. New City America, Inc. manages processes to explore the establishment of districts to enhance business services.
DISCUSSION
The Downtown Parking and Business Improvement Area (PBIA) was established in 1971 by the City of Fairfield as a BID funded by assessments on businesses in the downtown area , with a volunteer committee of assessed businesses serving as an advisory board and adm inistrator of district services under City Council oversight. In 2010, the City changed the oversight model of the PBIA and entered into a contractual agreement for the newly formed nonprofit Fairfield Mainstreet Association to manage and administer the PB IA funds to provide business support and Main Street beautification and promotional services to the Downtown. In 2021, the City of
Fairfield terminated contracts with the Fairfield Mainstreet Association and brought in -house business support services. Using PBIA annual assessment revenues of $30,000 supplemented by City funding of $130,000 annually from Intergovernmental Services (IGS), the City currently provides services that include event coordination for large and small downtown community events such as 4th of July and Tomato and Vine Festival, Maykers Market, Taste of Downtown, as well as funding a part-time contracted position for coordination with downtown businesses.
In 2023, City Council discussed the exploration of a PBID as a strategy to further enhance revitalization efforts in downtown. Based on conversations and feedback with property owners at the time, there was little appetite to form a new assessment district such as a PBID. With the current investment in infrastructure throughout the Heart of Fairfield, as well as a desire for enhanced services downtown, it may be appropriate to more formally analyze the feasibility of a new PBID for downtown.
PBIDs are a type of Business Improvement District (BID) that levy assessments on properties to fund special benefit services within a defined area. These districts are typically managed by an organization comprised of representatives from the property owners and businesses within the district. This allows assessed property owners and their business te nants to direct the types of special benefit services they feel will most positively improve the district and increase commerce in their businesses. Typical services include maintenance, like cleaning sidewalks, trash removal, enhanced landscaping, private security services, events, marketing and promotions on social media, and public space development. Visit Fairfield is a type of BID focused on tourism, funded with assessments paid by guests at Fairfield hotel businesses, and where the local hoteliers and tourism businesses serve as the board of directors. Since California ’s 1965 BID Law first allowed BIDs in the state,
https://www.fhwa.dot.gov/ipd/pdfs/value_capture/strategies_in_practice/ca_business_improv ement_districts.pdf, hundreds of BIDs have been formed, with current average annual property assessments ranging from $250,000 to $1,350,000, and the larger BIDs , like the San Francisco Tourist Improvement District, generate annual assessments of $27 million each year.
To explore whether a PBID may be of interest to property owners and businesses, and to determine the technical and financial needs of forming a district, staff recommends hiring an expert to conduct outreach and engagement with the community. No decision on the formation of a PBID is being made at this time. The item before the c ouncil is whether to pursue a consultant-led detailed investigation into the support needed and the feasibility of forming a PBID.
New City America (NCA) is a leading firm in the creation and management of BIDs and community benefit districts, with a 30 -year track record of establishing nearly 100 such districts across the United States. Known for its comprehensive approach —from conce ptual planning to implementation and management —NCA has developed unique expertise in forming financing mechanisms and organizational structures that support thriving commercial areas and achieve dynamic business district goals.
NCA currently manages 7 dis tricts statewide: Little Italy/San Diego, Downtown Hayward, Downtown Glendale, Downtown Chula Vista, Historic Lincoln Heights Industrial Zone PBID, Downtown El Cajon , and the East Village Association/Downtown San Diego. New City America has managed San Diego’s Little Italy district for the past 30 years, winning awards and recognition for urban renewal.
NCA’s capabilities go beyond formation . It offers continued district management until local leadership is established and assists in setting up governance structures like boards of directors and management corporations. With nearly 30 district formations in the Bay Area alone since 2000, NCA has had ample success in the region. By the end of 2024, the districts it formed collectively generated over $120 mill ion in annual revenue. Headquartered in San Diego, NCA maintains a strong presence in Northern California, enabling responsive engagement with local stakeholders.
Scope of Work and Implementation Strategy
Downtown Fairfield Property-Based Business Improvement District/Community Benefit Improvement District Investigation Process
Phase 1 Tasks – Downtown Fairfield CBID Investigation
Task Comment Estimated Time
TASK 1
Prepare a feasibility
analysis for creating a
successful Downtown
Fairfield Stakeholders
group to include
various options on the
district boundaries.
NCA would commence the process
with one-on-one meetings with
property owners and businesses.
Examine documents relative to the
current situation in Downtown.
June
Meet with City
officials to review the
process and timeline
for a possible district
formation timeline.
TASK 2
Create a new Downtown
Fairfield Business
Improvement District
(BID) Steering Committee
made up of property and
business owners, conduct
outreach meetings to
obtain feedback from
property owners,
business owners and
other key stakeholders
on the BID effort.
NCA will conduct outreach and
engage with the stakeholders and
the new Downtown Fairfield BID
Steering Committee to determine
stakeholder needs, and conduct a
district SWOT analysis
NCA will distribute an online
survey via email and postal mail
and gather responses from a
majority of property owners in
the study area.
The survey will draw out support
and opposition to the concept of a
special assessment district and
June – July
Database created
based upon
presumed
boundaries
Survey mailout out
and tabulated on a
parcel map
Survey questions
prioritized
Discussion of
options and
Recommendations
made to the
Steering
provide critical data for contacting
property owners in the future.
At least three district-wide
meetings and three steering
committee meetings will be held
to go over the BID outreach
concept, survey review and
determination of the final fate of
the investigation.
Committee based
upon survey
responses
TASK 3
Take in the results of the
survey of property owners
and present them to the
City and the BID Steering
Committee. Meet with
property owners as
needed.
NCA has a unique program for
showing the levels of support and
gauging which priority services the
City and property owners would want
to see. NCA would map it out and
present it to the Steering Committee
July – August
Finalize survey results
and findings, make
recommendations to the
City and the Steering
Committee
TASK 4
Write a report to the
City on the results of the
investigation,
recommended
timeline, and feasibility
of formation.
If the survey response supports the
creation of a new BID, the final report
will include three options for services
and costs that would be viable. NCA
will work with the City to review the
various options, probably the PBID act
of 1994, to fund special benefit
services in Downtown Fairfield.
September
NCA would use the survey to reveal the levels of survey support and/or opposition to the creation of this new financing mechanism district. A parcel analysis that would take into account linear frontage, lot size, and building square footage of each parcel. The revenue would be based on an annual assessment amount generated.
If the investigation determines that the weighted property owners are open to the idea of a property assessment district to fund special benefit services, then NCA would give three options for services and costs.
Additional Phases of work will only occur if there is sufficient support from the surveyed property owners in forming a PBID and staff will bring back a discussion item to council with the timeline for the district formation process.
FINANCIAL IMPACT
This would be a performance -based contract with a monthly retainer amount of $8,500, estimated not to exceed $34,000 from the commencement of the contract to the end of the investigation study of a possible district.
PUBLIC CONTACT/ADVISORY BODY RECOMMENDATION
N/A
ALTERNATIVE ACTION
The council may choose not to approve any exploration of a Property -Based Improvement District (PBID). If such direction is given, then the Downtown PBID/CBID project would be suspended, and no further action is necessary.
COORDINATED WITH
Community Development, City Manager’s Office, and Public Works
STAFF CONTACT
David Zellers, Community and Economic Development Manager (707) 428-7436
[email protected]
ATTACHMENTS
Attachment 2: Proposal