DOWNTOWN MERCED
Property Business Improvement District - Plan Review
Merced City Council Meeting
January 18, 2022
WHAT IS A
PBID?
•S e c u r i t y
• Street Scape Maintenance
•M a r k e t i n g
• Economic Development
• Special events
Provides Essential Services:
• Over & beyond what government provides
• Concentrated within a distinct geographic
area
• Paid for by a special property owner
assessment
• Services managed by new organization
• Organization governed by a Board
• Board of Directors represents those who pay
Additional Benefits:
BENEFITS OF DISTRICTS
Improved
property values Increased sales Reduced crime
Enhanced
physical
appearance
Increased use
of Downtown
by community
Unifies voice of
Downtown
owners and
operators
PROCESS FOR
CREATING A
DISTRICT
Engage Property
& Business
Owner
Feasibility of
District
Boundaries
Service Priorities:
Focus Groups,
Surveys, Phone
calls
Draft Work Plan
Budget
Assessment
Methodology
Baseline Services
Feedback on
Work Plan
Petition
Council
Designation
Collection
DISTRICT BOUNDARIES
THE OUTCOME
Results from Focus
Groups, Surveys,
Taskforce meetings and
Individual interviews
CONSENSUS
SERVICE
PRIORITIES
• Community Engagement Team
• Maintenance Services
• Lighting
• Beautification.
Clean, Safe, and Beautiful:
• Marketing and Communication
• Special Events
Economic Vitality:
• Administration
Management:
SAFETY
Community Engagement Team
• Supports law enforcement, property owners and
businesses in overall crime prevention efforts above
what the City provides while providing concierge service to customers, residents, and employees
• Program designed using proven methods utilized by over 125 downtown organizations across the country
• Aimed at improving the safety, friendliness and
accessibility of downtown visitors, residents, and workers • An excellent tool for enhancing customer experience in the downtown area
• The City has committed to providing overnight security with Reserve force
MAINTENANCE
Maintenance Services
• Will sweep, scrub and pressure wash
sidewalks and public spaces,
remove litter, trash and graffiti, and
provide/maintain landscaping
throughout the District
• Provide enhanced cleaning services
and customer service
• Trained as tourism ambassadors to
be well-versed on the area
attractions, events, and businesses
LIGHTING & BEAUTIFICATION
(EXAMPLES)
• Lighting that increases the level
of security, which may include
lighting the alleyways,
decorative street lighting, and
tree lighting.
• Beautification such as installing
and operating streetscape
furniture, bike racks,
information kiosks, holiday
décor, and wayfinding
signage.
EVENT MANAGEMENT
• Special Events that draw visitors to
the downtown. Evaluate ROI before
taking on new events
• Coordinate events and professionally
staff existing successful events
• Coordinate business participation in
events
• Promote events
• Hire Staff
MARKETING &
COMMUNICATIONS
• Support new programs in Downtown
• Develop branding strategy consistent
with District goals
• Brochure/Business Directory
• Enhanced website
• Social media
MANAGEMENT/ADMINISTRATION
Coordinate desired programs
•Business communications
•Marketing
•Event coordination and production
•General Administration
Facilitate board & committee meetings
Government liaison
Advocate in policy discussions
Leverage more benefits/money for district
PBID BENEFIT
ZONES & SERVICES
• There are three benefit zones within
the PBID to reflect the varying needs
and frequency of services within the
PBID boundary:
• Base Level includes every parcel in
the district. The
• Enhanced Zone includes every
parcel with frontage along 18
th
Street between I Street and R
Street, as well as parcels with
frontage along W Main Street
between G Street and V Street. The
• Downtown Core includes every
parcel with frontage along W Main
Street or 18
th Street between Martin
Luther King and O Street.
PBID
Activity
Base
Level
x 1.0
Enhanced
Zone
x 1.5
Downtown
Core
x 2.0
Community
Engagement
Team
XX X
Maintenance
Team
XX X
Lighting X
Beautification XX
Economic
Vitality
XX X
Management XX X
CONSOLIDATION
OF SERVICES AND
ADMINISTRATION
• Assessments from the existing
Maintenance District will be
eliminated
• Charges and services will be
assessed and provided by the PBID
Maintenance District
• Double Tax business license fee will
be reduced to regular rate
• Charges for marketing and special
events will be included in assessment
and operations of the PBID
Business License
BUDGET
Proposed cost estimate
for each service area
EXPENDITURES
TOTAL
BUDGET
% OF
BUDGET
Clean, Safe, Beautiful $425,000 75.22%
Economic Vitality $50,000 8.85%
Management $90,000 15.93%
Total Expenditures $565,000 100.00%
REVENUES
Assessment Revenues $557,008 98.59%
Other Revenues (1) $7,992 1.41%
Total Revenues $565,000 100.00%
ASSESSMENT
METHODOLOGY
• Clean, Safe and Beautiful – General
Benefit = $417,281 and is assessed 50%
each to building square feet and
linear street frontage.
• Economic Vitality = $50,000 and is
assessed 50% each to building square
feet and lot square feet.
• Management = $110,000 and is
assessed 1/3 each to building square
feet, lot square feet and linear street
frontage.
Benefit
Zone Lot SF Bldg SF Linear
Base Level $0.0103 $0.1125 $3.1198
Enhanced
Zone $0.0103 $0.1338 $6.1959
Downtown
Core $0.0103 $0.1338 $7.7558
PROCESS &
TIMELINE
Draft Management District Plan
January 2022
Petition Drive
January – March 2022
Stakeholder Review February 2022
City Council Accepts Petitions and Sets Public Hearings April 2022
Ballots Mailed to Property Owners April 2022
City Council Public Hearing and Ballot Tabulation
June 2022
The initial annual parcel assessment for a parcel in the Base Level Zone with 5,000 building square feet, 5,000 lot square feet, and 50 linear feet is calculated as follows:
Bldg square footage x the assessment rate (5,000 x $0.1001) = $500.50 Lot square footage x the assessment rate (5,000 x $0.0115) = $ 57.50 Linear street frontage x the assessment rate (50 x $3.2193) = $160.97 Initial annual parcel assessment $718.97
Base Zone - Example
ASSESSMENT METHODOLOGY
Enhanced Zone - Example
ASSESSMENT METHODOLOGY
The initial annual parcel assessment for a parcel in the Enhanced Zone with 5,000 building square feet, 5,000 lot square feet, and 50 linear feet is calculated as follows:
Bldg square footage x the assessment rate (5,000 x $0.1183) = $591.50 Lot square footage x the assessment rate (5,000 x $0.0115) = $ 57.50 Linear street frontage x the assessment rate (50 x $6.3450) = $317.25 Initial annual parcel assessment $966.25
Downtown Core - Example
ASSESSMENT METHODOLOGY
The initial annual parcel assessment for a parcel in the Downtown Core with 5,000 building square feet, 5,000 lot square feet, and 50 linear feet is calculated as follows:
Bldg square footage x the assessment rate (2,000 x $0.1183) = $591.50 Lot square footage x the assessment rate (5,000 x $0.0115) = $ 57.50 Linear street frontage x the assessment rate (50 x $7.9546) = $397.73 Initial annual parcel assessment $1,046.73
SUPPORT CAMPAIGN
Outreach to individual
owners
Educate about the
district
Allocate peer-to-Peer
outreach assignments
Distribute Non-binding
Petitions
Tabulate percentages
of supporters
Must secure support
from property owners
who will represent at
least 51% of the total
assessed value of the
district