DATE: September 24, 2024
CATEGORY: Public Hearing
DEPT.: Community Development
TITLE: Public Hearing on Downtown Business
Improvement Areas
RECOMMENDATION
1. Approve the Annual Report.
2. Adopt a Resolution of the City Council of the City of Mountain View Approving the Annual Report of the Downtown Mountain View Business Improvement Area No. 1 and Declaring Its Intention to Levy Assessments for 2025, to be read in title only, further reading waived, and set a public hearing date of October 22, 2024 (Attachment 1 to the Council report).
3. Adopt a Resolution of the City Council of the City of Mountain View Approving the Annual Report of the Downtown Mountain View Business Improvement Area No. 2 and Declaring Its Intention to Levy Assessments for 2025, to be read in title only, further reading waived, and set a public hearing date of October 22, 2024 (Attachment 2 to the Council report).
BACKGROUND
A business improvement area (BIA) is a common way to generate funds to promote a downtown area. BIAs require each business in the area to pay a BIA fee in addition to the business license tax. The amount of the BIA fee that each business pays varies by the type, size, and/or location of the business. State law requires that BIA fees be used for advertising, promotions, special events, or other activities that promote the designated business area. The fees can either be used by the jurisdiction or allocated to an appropriate organization, such as a business association or chamber of commerce. BIAs are usually formed by a business association or chamber of commerce, given the interest of such organizations to support a business district.
Mountain View has two BIAs (Attachment 3), both originally created by the downtown businesses, historically organized as the Central Business Association and, later, the Downtown Business Association (DBA), with revenues historically allocated to them. In May 2021, the Mountain View Chamber of Commerce (Chamber) was appointed by the City Council to provide support to the downtown businesses and to receive and manage both BIAs and their revenues.
The 1983 Business Improvement Area, BIA No. 1, includes the entire length of Castro Street (from Attachment 3
Public Hearing on Downtown Business Improvement Areas September 24, 2024 Page 2 of 5 West Evelyn Avenue to El Camino Real) and some side streets. BIA No. 1 fees are based upon the type of business, specifically restaurant, retail, and professional (i.e., office). In 1991, the DBA recommended, and the City Council approved, the formation of a second BIA when the DBA identified the need to increase BIA revenues. BIA No. 2 includes a smaller area in the 100, 200, and 300 blocks of Castro Street and is geographically contained entirely within BIA No. 1. The rationale for the boundaries of BIA No. 2 is that this area receives the most benefit from theresources provided the BIA. BIA No. 2 fees are based upon the type of business (restaurant, retail, and professional) and size of business in square feet. Both BIAs serve the same purpose of supporting the downtown businesses but were enacted under different state enabling legislation. BIA No. 1 was created under the Parking and Business Improvement Area Law of 1979. The 1979 BIA law was replaced by a 1989 law under which BIA No. 2 was created. Businesses located within both BIAs pay both fees. ANALYSIS Under state law, both BIAs require an annual public meeting and public hearing to levy assessments and authorize expenditure of funds. The Chamber estimates the two BIAs will generate $45,875 in assessment revenues ($34,750 for BIA No. 1 and $11,125 for BIA No. 2) in 2025. The Chamber does not propose an increase or change in this year’s BIA assessment, including the assessment rate or methodology. For the public meeting on September 24, 2024, the City Council is being asked to review the proposed programming the BIAs should fund, receive any comments or other input from members of the public, preliminarily approve the annual report submitted by the Chamber (Attachment 4), and set October 22, 2024 as the date of the public hearing. The Chamber report identifies businesses within the BIAs, their proposed assessments, and recommendations for how the Chamber plans to use the revenue for downtown promotions and activities for 2025 (see below for a summary). The City Council may also identify additional information it would like to be available. At the public hearing on October 22, 2024, the City Council will be asked to review and give final approval to the Chamber report, levy the assessments, and allocate the 2025 funds from both BIAs to the Chamber. After the City Council takes final action, BIA fee amounts are included with the business license renewal notices and will be sent in January to businesses located within the BIA boundaries. The Chamber’s primary role is to provide staffing support to the DBA and manage the advisory group, which will continue to be known as the Downtown Business Association, and advise the Chamber on the BIAs, utilize BIA funds for marketing and promotional events in downtown, and Public Hearing on Downtown Business Improvement Areas September 24, 2024 Page 3 of 5 expand its business advocacy role in supporting the downtown area. Some highlights of the 2024 accomplishments include: • The 2023 Art & Wine Festival was reengineered to make restaurants in the 100 to 300 blocks a deliberate and highlighted component of the event, including promotion, inclusion in signage and wayfinding tools, and extending the presence of festival vendor booths. Most business owners reported increases in sales that were notably higher than during previous years’ festivals. The new patio requirements will allow further expansion of this approach in September 2024. A special booth at the Art & Wine Festival promoted downtown’s history, highlighted by photos and books donated by the Mountain View Historical Association. In Q4 2023, in partnership with the City, delivered a new toolkit to help businesses use social media. Three downtown businesses were specifically selected to inform research and were provided with additional, customized templates and content. They are also serving as ongoing “case studies.” • Executed holiday-themed events and promotions specific to downtown, including Halloween on Castro (October) and The Great Elf Hunt (December). Additionally, in partnership with Steins Beer House, the popular Oktoberfest celebration successfully returned to downtown (October). These activities increased sales, traffic, visibility, social media buzz, and community engagement. • In Q2 2024, promotional videos were created to promote visiting and shopping downtown with several downtown businesses specifically highlighted; two videos are hostedpermanently on the Chamber website homepage and the iLoveMV.org homepage.• In May 2024, in partnership with the Mountain View Fire Department (MVFD), assisted in planning and promotion of a downtown parade celebrating the 150th Anniversary of the MVFD. Downtown businesses were encouraged to participate with special offers for attendees.For 2025, the Chamber developed a work plan that is focused on marketing and promotions, small-business advocacy, growing the advisory group of the downtown businesses, and providing direct assistance to businesses: • Work with the Mountain View Historical Association to provide more photos and information about downtown, including displays in storefront windows and a special interactive booth at the Art & Wine Festival; • Resume the State of the Downtown meeting, an annual meeting where the DBA president provides a review of the past year’s activities and a projection for the upcoming year; Public Hearing on Downtown Business Improvement Areas September 24, 2024 Page 4 of 5 • Reimage and relaunch DBA’s web resources and incorporate into high-traffic sites, such as iLoveMV.org and ChamberMV.org; • Invite neighborhood associations and community members to the monthly DBA meeting to continue building stronger relationships, share concerns, further understanding, and work on win-win scenarios; and• Hold another “Meet Our Merchants” presentation to allow local businesses to tell their story and connect with the community as well as directly inform the City Council and staff on key issues.FISCAL IMPACTThe Chamber projects revenues from the two areas to be $45,875 ($34,750 for BIA No. 1 and $11,125 for BIA No. 2) and are allocated to the Chamber for downtown promotions, business advocacy, and event planning in the downtown area. The assessments for both areas are added to the business license fee and are due with the renewal of the business licenses in January 2025. Staff works with the Chamber to ensure that businesses within the area pay their BIA fees. ALTERNATIVES1. Do not preliminarily approve the Chamber report, and do not set October 22, 2024 as the date of the public hearing. If the report from the Chamber is not preliminarily approved and the resolutions are not adopted, the BIAs’ fees would not be levied as part of the annual renewal process the Finance and Administrative Services Department begins in November for the business license tax, and there would be no funds for 2025 from either area to be allocated to the Chamber. The Chamber would need to seek new funding or reduce its programming. 2. Provide other direction.
Public Hearing on Downtown Business Improvement Areas September 24, 2024 Page 5 of 5 PUBLIC NOTICING The renewal of the current annual BIAs was presented at the September 10, 2024 Downtown Committee meeting. Notice of this public meeting was included in the standard Council agenda notice and posting procedures. Notice of the public meeting and hearing was mailed to all businesses in the two areas and published in the Daily Post Journal, the official record for the City of Mountain View. Prepared by:John Lang Economic Vitality Manager Approved by: Christian Murdock Community Development DirectorKimbra McCarthy City Manager JL/1/CAM 819-09-24-24CR204097 Attachments: 1. Resolution of Intention to Levy Assessments for BIA No. 1 2. Resolution of Intention to Levy Assessments for BIA No. 2 3. Business Improvement Area Map 4. Chamber Annual Report 2024 cc: Mountain View Chamber of Commerce Attachment 1
-1 of 3- #4583v1<CAO> - Resolution BIA No. 1 24-25
CITY OF MOUNTAIN VIEW RESOLUTION NO. SERIES 2024 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MOUNTAIN VIEW APPROVING THE ANNUAL REPORT OF THE DOWNTOWN MOUNTAIN VIEW BUSINESS IMPROVEMENT AREA NO. 1 AND DECLARING ITS INTENTION TO LEVY ASSESSMENTS FOR 2025 WHEREAS, the California Streets and Highways Code, Section 36500 and following, authorizes cities to establish parking and business improvement areas for the purposes of imposing a benefit assessment on businesses therein for certain enumerated purposes; and WHEREAS, the City of Mountain View established Business Improvement Area No. 1 in 1983 (Ordinance No. 21.83), which remains in full force and effect; and WHEREAS, Business Improvement Area No. 1 includes the length of Castro Street from West Evelyn Avenue to El Camino Real and some side streets; and WHEREAS, the Mountain View Chamber of Commerce, acting as the Advisory Board to the City Council on Business Improvement Area No. 1, has filed the required annual report on the use of funds generated by Business Improvement Area No. 1 for 2024; now, therefore, be it RESOLVED: 1. That the City Council of the City of Mountain View does hereby approve of the Fiscal Year 2024-25 Annual Report for the Downtown Mountain View Business Improvement Area No. 1. 2. That the City Council of the City of Mountain View does hereby declare its intention to levy and collect assessments within Business Improvement Area No. 1 as authorized by the California Streets and Highways Code, Section 36530, et seq. 3. That the boundaries of this improvement area are generally described as all businesses located on Castro Street between West Evelyn Avenue to the north and El Camino Real to the south, as more particularly described in Exhibit A, attached hereto. All businesses within this area with a Castro Street address, excluding nonprofit organizations, are to be assessed as authorized in the Streets and Highways Code, Section 36500, et seq., and as set forth herein. Said boundaries are unchanged from the boundaries established by Ordinance No. 21.83 dated October 11, 1983. -2 of 3- #4583v1<CAO> - Resolution BIA No. 1 24-25
4. That the proposed uses to which the revenue from this improvement area will be put forth as follows: a. Promotion of public events which are to take place on or in public places in the area; b. Decoration of any public place in the area; c. Furnishing of music in any public place in the area; d. The general promotion of businesses within the area; and e. Other activities or improvements which benefit businesses located and operating in the Business Improvement Area. 5. That the City Council intends to levy an annual benefit assessment for the 2025 calendar year on all businesses, trades, and professions, excluding nonprofit organizations, located within the boundaries of Business Improvement Area No. 1 in the following amounts: Type of Establishment Fee Restaurant $200 Retail $150 Professional $50 6. That a public meeting and public hearing shall be held before the City Council on September 24, 2024 and October 22, 2024, respectively, at 6:30 p.m., in accordance with Council Resolution No. ______, adopted pursuant to Government Code Section _______. A physical meeting location will be available in addition to the video conference. Please consult the September 24, 2024 meeting agenda, which will be available beginning on Thursday, September 19, 2024, at mountainview.legistar.com. For the October 22, 2024 meeting, please consult the October 22, 2024 agenda, which will be available beginning on Thursday, October 17, 2024, at mountainview.legistar.com. The City Council will hear all testimony for or against the assessments pursuant to Business Improvement Area No. 1, the area boundaries, and the furnishing of a specified type of improvement or activity in accordance with the manner in which members of the public wishing to comment may do so as specified in the City Council Agenda and Notice for the above-referenced meetings. A protest may be made orally or in writing. Every written protest shall be filed with the City Clerk at or before the time fixed for the public hearing and shall comply with the Streets and Highways Code, Section 36524, and Ordinance 21.83. -3 of 3-#4583v1<CAO> - Resolution BIA No. 1 24-25
7. That further information may be obtained from the Mountain View Chamber ofCommerce, 580 Castro Street, Mountain View, California, 94041, or by calling 650-968-8378, or by contacting John Lang, Economic Vitality Manager, at 650-903-6457. 8. That the City Clerk is hereby instructed to publish this notice one (1) time in anewspaper with general circulation. Exhibit: A. Business Improvement Area Map
CENTRAL EXPY
MERCY ST
PARK
CALIFORNIA STW EVELYN AVE
HIGHSCHOOL WAY
VILLA STWDANAST
CHURCHST
W EVELYN AVELORETO STWDANASTVELARDE STMERCY STSIERRAAVE
FRONT LNMINTON LN
PARKDR
City of Mountain View
500 Castro Street, Mountain View, CA 94039For information only. The City of Mountain View does not warrantthe accuracy of the information contained herein. © 09/20/2013 Business Improvement DistrictsSeptember 30, 2013
Business Improvement District #1Business Improvement District #2 Attachment 2
-1 of 3- #4582v1<CAO> - Resolution BIA No. 2 24-25
CITY OF MOUNTAIN VIEW RESOLUTION NO. SERIES 2024 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MOUNTAIN VIEW APPROVING THE ANNUAL REPORT OF THE DOWNTOWN MOUNTAIN VIEW BUSINESS IMPROVEMENT AREA NO. 2 AND DECLARING ITS INTENTION TO LEVY ASSESSMENTS FOR 2025 WHEREAS, the California Streets and Highways Code, Section 36500 and following, authorizes cities to establish parking and business improvement areas for the purposes of imposing a benefit assessment on businesses therein for certain enumerated purposes; and WHEREAS, the City of Mountain View established Business Improvement Area No. 2 in 1991 (Ordinance No. 22.91); and WHEREAS, Business Improvement Area No. 2, created in 1991, overlays Business Improvement Area No. 1, which is a larger business improvement area, and remains in full force and effect; and WHEREAS, Business Improvement Area No. 2 is a smaller area which encompasses the three-block area in the historic central downtown area, including the 100, 200, and 300 blocks of Castro Street; and WHEREAS, the Mountain View Chamber of Commerce, acting as the Advisory Board to the City Council on Business Improvement Area No. 2, has filed the required annual report on the use of funds generated by Business Improvement Area No. 2 for the year 2024; now, therefore, be it RESOLVED: 1. That the City Council of the City of Mountain View does hereby approve of the Fiscal Year 2024-25 Annual Report for the Downtown Mountain View Business Improvement Area No. 2. 2. That the City Council of the City of Mountain View does hereby declare its intention to levy and collect assessments within Business Improvement Area No. 2 as authorized by the California Streets and Highways Code, Section 36530, et seq. 3. That the boundaries of this improvement area are generally described as all businesses located on Castro Street between West Evelyn Avenue to the north and California Street to the south, including all businesses with street addresses numbered 100 through 399, inclusive, as more particularly described in Exhibit A, attached hereto. All businesses within this -2 of 3- #4582v1<CAO> - Resolution BIA No. 2 24-25
area with a Castro Street address, excluding nonprofit organizations, are to be assessed as authorized in the Streets and Highways Code, Section 36500, et seq., and as set forth herein. Said boundaries are unchanged from the boundaries established by Ordinance No. 22.91 on December 10, 1991. 4. That the proposed uses to which the revenue from this improvement area will be put forth as follows: a. Promotion of public events which are to take place on or in public places in the area; b. Decoration of any public place in the area; c. Furnishing of music in any public place in the area; d. The general promotion of businesses within the area; and e. Other activities or improvements which benefit businesses located and operating in the Business Improvement Area. 5. That the City Council intends to levy an annual benefit assessment for the 2025 calendar year on all businesses, trades, and professions, excluding nonprofit organizations, located within the boundaries of Business Improvement Area No. 2 in the following amounts: Type of Establishment Fee 0 to 2,999 Square Feet Fee 3,000 to 7,999 Square Feet Fee 8,000 Square Feet and Up Restaurant $125 $150 $175 Retail $75 $100 $125 Professional $25 $50 $75 6. That a public meeting and public hearing shall be held before the City Council on September 24, 2024 and October 22, 2024, respectively, at 6:30 p.m., in accordance with Council Resolution No. ______, adopted pursuant to Government Code Section _______. A physical meeting location will be available in addition to the video conference. Please consult the September 24, 2024 meeting agenda, which will be available beginning on Thursday, September 19, 2024, at mountainview.legistar.com. For the October 22, 2024 meeting, please consult the October 22, 2024 agenda, which will be available beginning on Thursday, October 17, 2024, at mountainview.legistar.com. The City Council will hear all testimony for or against the assessments pursuant to Business Improvement Area No. 2, the area boundaries, and the furnishing of a specified type of improvement or activity in accordance with the manner in which members of the public wishing to comment may do so as specified in the City Council Agenda and Notice for the above- -3 of 3- #4582v1<CAO> - Resolution BIA No. 2 24-25
referenced meetings. A protest may be made orally or in writing. Every written protest shall be filed with the City Clerk at or before the time fixed for the public hearing and shall comply with the Streets and Highways Code, Section 36524, and Ordinance 22.91. 7. That further information may be obtained from the Mountain View Chamber of Commerce, 580 Castro Street, Mountain View, California, 94041, or by calling 650-968-8378, or by contacting John Lang, Economic Vitality Manager, at 650-903-6457. 8. That the City Clerk is hereby instructed to publish this notice one (1) time in a newspaper with general circulation. Exhibit: A. Business Improvement Area Map
CENTRAL EXPY
MERCY ST
PARK
CALIFORNIA STW EVELYN AVE
HIGHSCHOOL WAY
VILLA STWDANAST
CHURCHST
W EVELYN AVELORETO STWDANASTVELARDE STMERCY STSIERRAAVE
FRONT LNMINTON LN
PARKDR
City of Mountain View
500 Castro Street, Mountain View, CA 94039For information only. The City of Mountain View does not warrantthe accuracy of the information contained herein. © 09/20/2013 Business Improvement DistrictsSeptember 30, 2013
Business Improvement District #1Business Improvement District #2
CENTRAL EXPY
MERCY ST
PARK
CALIFORNIA STW EVELYN AVE
HIGHSCHOOL WAY
VILLA STWDANAST
CHURCHST
W EVELYN AVELORETO STWDANASTVELARDE STMERCY STSIERRAAVE
FRONT LNMINTON LN
PARKDR
City of Mountain View
500 Castro Street, Mountain View, CA 94039For information only. The City of Mountain View does not warrantthe accuracy of the information contained herein. © 09/20/2013 Business Improvement DistrictsSeptember 30, 2013
Business Improvement District #1Business Improvement District #2 Attachment 3