PBID Annual Report
(Based in part on excerpts from the 2021 DNPBID Management District Plan) III. Proposed DNPBID Work Plan and Budget
Overview
Services, programs and improvements provided and funded by the District include Beautification, Maintenance & Infrastructure; Marketing, -Way Finding Signage Program; and, Advocacy & Administration. Each of these is designed to provide special benefits as described below to each and every identified assessed parcel within the boundaries of the District. The property uses within the boundaries of the District that will receive special benefits from District funded programs, services and improvements are currently a unique mix of retail, restaurant, office, service and general commercial.
These special benefits are particular and distinct to each and every identified assessed parcel within the DNPBID and are not provided to non-assessed parcels outside of the District. These programs, services and improvements will only be provided to each individual assessed parcel within the District boundaries and, in turn, confer proportionate "special benefits” to each assessed parcel.
The very nature of the purpose of the DNPBID is to fund supplemental programs, services and improvements to assessed parcels within the DNPBID boundaries above and beyond the base line services provided by the City of Napa. The City of Napa does not provide these supplemental programs and services. All benefits derived from the assessments to be levied on assessed parcels within the DNPBID are for services, programs and improvements directly benefiting each individual assessed parcel within the DNPBID. No DNPBID funded services, activities or programs will be provided outside of the DNPBID boundaries.
WORK PLAN DETAILS
The services to be provided by the DNPBID are all designed to contribute to the cohesive commercial fabric and to ensure economic success and vitality of the District. The assessed parcels in the DNPBID will specially benefit from the District programs in the form of increasing commerce and improving economic success and vitality through meeting the DNPBID goals: to improve cleanliness, public safety, beautification, landscaping, and to attract and retain businesses and services, and ultimately to increase commerce and improve the economic viability of each individual assessed parcel.
The following programs, services and improvements are proposed by the DNPBID to specially benefit each and every individually assessed parcel within the DNPBID boundaries. DNPBID services, programs and improvements will not be provided to parcels outside the DNPBID boundary. Assessment funds generated in each benefit zone shall only be used to provide services which specially benefit individual assessed parcels within that benefit zone.
Beautification, Maintenance, Infrastructure $295,500 57.4% “Beautification” includes physical improvements for the special benefit of each identified and assessed parcel within the DNPBID. Types of physical improvements may include: street furniture such as benches and trash bins; additional tree planting and decorative tree wells; painting of street light poles; decorative amenities such as hanging planter baskets, street light pole flags/seasonal banners; Christmas decorations, lighting and garland; freestanding landscape containers; beautification and decorative enhancements to and within public parking structures; and, other improvements, as approved by the Owners’ Association. “Maintenance” is described as follows: With the use of day porters, sidewalks and parking garages will be kept clean and graffiti free. Tree wells will be kept clear of trash and debris, weeded as needed, and will be watered on a regular basis until mature enough to be self-sustaining. Sidewalk and gutter areas will be pressure washed on a regular basis. Hanging planter baskets will be watered and kept fresh and attractive. Maintenance service levels will be higher in Zone 1 and less in Zone 2, commensurate with the assessment rate structure. “Infrastructure” includes utility box aesthetic wraps and could include other streetscape upgrades such as decorative sidewalk and crosswalk enhancements The Beautification, Maintenance, Infrastructure component is designed to specially benefit each identified and assessed parcel within the DNPBID by professionally managing the appearance of each parcel as an attractive and inviting place to work, transact business, shop and dine. This component is designed to attract more commercial customers and clients, employees, tenants and investors which are intended to increase business volumes, sales transactions, commercial occupancies, commercial rental income and return on investments. A poorly maintained environment deters commerce and may fail to attract patrons and visitors, and reduce commercial rents and commercial occupancies. Beautification, Maintenance, Infrastructure services and improvements will be provided only within the DNPBID boundaries and for the special benefit of identified and assessed parcels within the DNPBID.
Marketing, Wayfinding Signage Program $142,757 27.7% “Marketing” may include, but is not limited to, newsletters, website and social media management, development and distribution of promotional materials (such as event flyers, business coupon books, business directories/maps), special events, media advertising and other programs that will promote the array of goods and services available within the DNPBID. The Marketing program helps meet the goals of business attraction and retention and increased commerce.
The Marketing program is designed with the intent to increase the public’s awareness of the DNPBID as a single destination in order to attract consumers to the array of attractions, events, and services which are intended to increase commerce for each assessed parcel in the DNPBID. Marketing efforts will be designed to improve the commercial core by implementing programs to attract pedestrians, increase lease rates, commercial rentals, parking revenues, retail customers, restaurant patrons for the assessed parcels in the DNPBID. The Owners’ Association will continue to use the website supported by the Tourism Improvement District and Downtown Napa Association to promote the assessed DNPBID parcels in an effort to increase awareness of the District as a destination for consumers and tenants and increase occupancy and commerce on the assessed parcels. The website is designed to provide visitors information about the DNPBID in order to attract these visitors and attract more business from out of the area, to increase commerce and improve the economic vitality of assessed parcels.
Wayfinding Signage Program
Attracting folks to downtown is half the battle – the other half is helping them find their way around the area, find parking, and make decisions about where to spend their time and money. For the array of land uses within the DNPBID (i.e. retail, restaurant, office, service and general commercial), this work plan component is specifically designed to attract more customers, employees, tenants and investors. Special benefit will be conferred on each and every assessed parcel in the DNPBID as a result of marketing assessed parcels and the goods and services and spaces available on these assessed parcels. This, in turn, is intended to increase business volumes, sales transactions, commercial occupancies, commercial rental income and investment viability. The Wayfinding Signage work plan component will only be provided to, and for the direct and special benefit of, each identified assessed parcel within the DNPBID.
Advocacy & Administration $67,700 13.2 %
“Advocacy & Administration” includes the cost of personnel to oversee implementation of the Management District Plan and the various programs, services and improvement projects delineated in the Plan during the District’s 5-year term. This element also includes oversight of the Owners’ Association’s compliance with the terms of its contract with the City. This component also includes accounting/bookkeeping/legal fees and expenses, Directors & Officers and General Liability insurance and other operating expenses such as rent, equipment, printing, postage, supplies, production of the Annual Report and Budget and other reporting. This component also includes positioning the Owners’ Association to advocate for the priorities, funding and needs of DNPBID from the various levels of government.
This component is key to the proper expenditure of DNPBID assessment funds and the administration of DNPBID programs and activities that are intended to provide consistent and effective services for the special benefit of assessed properties within the DNPBID which may in turn, increase business volumes, commercial occupancies and rental income and return on investments for each parcel and business within the DNPBID. This component pertains only to the administration and operation of the DNPBID and will only be provided for matters pertaining to each individual assessed parcel within the DNPBID boundaries that will, in turn, specially benefit from this activity.
Contingency $8,765 1.7%
“Contingency” includes County collection fees, allowance for delinquent assessment payments and other variable and unforeseen expenses related to each program element. This program element may also include assessment reserves being held for future projects. Assessment funds remaining in the last two years of the proposed DNPBID renewal term may be used to develop the Management District Plan, Engineer’s Report and related renewal costs for the following renewal term.
In summary, all DNPBID funded services, programs and improvements described above confer special benefits to identified assessed parcels inside the DNPBID boundaries, and none will be provided outside of the DNPBID. Each assessed parcel within the DNPBID will proportionately specially benefit from the Beautification, Maintenance & Infrastructure; Marketing, Wayfinding Signage Program; and, Advocacy & Administration. These services, programs and improvements are intended to improve commerce, employment, rents, occupancy rates and investment viability of assessed parcels within the DNPBID by reducing litter and debris, maintaining landscaping and physical improvements and professionally marketing goods, services and spaces available within the DNPBID, all considered necessary in a competitive, properly managed contemporary business district. All DNPBID funded services, programs and improvements are considered supplemental, above normal base level services provided by the City of Napa and are only provided for the special benefit of each and every assessed parcel within the boundaries of the DNPBID.
PROGRAM & ACTIVITY BUDGET
Each identified assessed parcel within the DNPBID will be assessed the full amount of the proportionate special benefit conferred upon it based on the level of DNPBID funded services provided within each benefit zone. The projected DNPBID program special benefit (assessments) allocation budget for Year 3 (2023) is shown in the following Table:
DNPBID Year 3 (2023) Assessment Budget By Zone
YEAR
BENEFIT ZONE
BEAUTIFICATION, MAINTENANCE, INFRASTRUCTURE
MARKETING, WAYFINDING SIGNAGE
ADVOCACY & ADMINISTRATION
CONTINGENCY
TOTAL
%
57.4%
27.7%
13.2%
1.7%
100.00%
3 1
$197985
$95647
$47390
$5873
$346,895
2 $97515
$47,110
$20310
$2892
$167,830
TOTAL
295,500
$142757
$67,700
$8,765
$514,722
It is recognized that market conditions may cause the cost of providing goods and services to fluctuate from year to year during the 5-year term of the proposed renewed District. Accordingly, the Owners’ Association shall have the ability to reallocate up to 25% of any budget line item, within the budget categories, based on such cost fluctuations subject to the review and approval by the Property Owners’ Association Board. Such reallocation will be included in the Annual Planning Report for the approval by the Napa City Council pursuant to the Streets and Highways Code Section 36650. Any accrued interest or delinquent payments may be expended in any budget category.
The DNPBID assessments may increase for each individual parcel each year during the 5-year effective operating period, but not to exceed 3% 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 Planning Report and adopted by the City of Napa City Council. Any accrued interest and delinquent payments will be expended within the budgeted categories. The Property Owners’ Association Board of Directors (“Property Owners’ Association of the DNPBID) shall determine the percentage increase to the annual assessment and the methodology employed to determine the amount of the increase. The Owners’ Association Executive Director shall communicate the annual increase to the City each year in which the District operates in documents provided for the Annual Report or at a time determined in the Administration Contract held between the Owners’ Association and the City of Napa.
Napa PBID - 2021-25 Actual Profit/Loss Budget Overview Jan through Dec 2021 Jan - Dec 21
Jan - Dec 21
Jan - Dec 21
Total
Zone One
Zone Two
Ordinary Income/Expense
Income
Interest Income
0 0
0 Carryover
253,014
169,519
83,495
Property Taxes
491,222
329,119
162,103
Total Income
744,236
329,119
415,117
Expense
Advocacy & Administration
Administration
60,000
40,200
19,800
Bank Charges
200
130
70 PBID Renewal
7,500
5,025
2,475
Total Advocacy & Administration
67,700
45,359
22,341
Beautify ,Maintain & Infrastructure
Christmas Garland
Replacement Garland & Storage
6,000
4,020
1,980
Christmas Garland
12,000
8,040
3,960
Total Christmas Garland
18,000
12,060
5,940
Christmas Lights
27,500
18,150
9,350
Hanging Flower Baskets
200,000
134,000
66,000
Sidewalk/Garage Cleaning
50,000
33,500
16,500
Total Beautify ,Maintain & Infrastructure
295,500
197,985
97,515
Contingency
8,765
5,873
2,892
Marketing
Maps of Historic DT
10,000
6,700
3,300
Way Finding Signage Project
237,500
159,125
78,375
Special Events
Christmas
10,000
6,700
3,300
Main Street Reunion Car Show
10,000
6,700
3,300
Napa's 175th Anniversary
30,000
20,100
9,900
Travel Writers Visits (FAM)
7,500
5,025
2,475
Total Marketing
305,000
204,350
100,650
Total Expense
676,965
453,567
223,398
Net Ordinary Income
67,271
45,072
22,199
Net Income
67,271
45,072
22,199
Napa PBID - 2021-25 Projected Profit/Loss Budget Overview Jan through Dec 2022 Jan - Dec 22
Jan - Dec 22
Jan - Dec 22
Total
Zone One
Zone Two
Ordinary Income/Expense
Income
Interest Income
0 0
0 Carryover
70,071
46,948
23,123
Property Taxes
491,222
329,119
162,103
Total Income
561,293
329,119
232,174
Expense
Advocacy & Administration
Administration
61,800
41,406
20,394
Bank Charges
200
130
70 PBID Renewal
7,500
5,025
2,475
Total Advocacy & Administration
69,500
46,565
22,935
Beautify, Maintain & Infrastructure
Christmas Garland
Replacement Garland & Storage
6,000
4,020
1,980
Christmas Garland
12,000
8,040
3,960
Total Christmas Garland
18,000
12,060
5,940
Christmas Lights
27,500
18,150
9,350
Hanging Flower Baskets
150,000
100,500
49,500
Sidewalk/Garage Cleaning
50,000
33,500
16,500
Total Beautify, Maintain & Infrastructure
245,500
164,485
81,015
Contingency
9,028
6,049
2,979
Marketing
Ambassador & Safekeeping
0 0
0 Art Walk
10,000
6,700
3,300
Maps of Historic DT
10,000
6,700
3,300
Napa Lighted Arts Festival
0 0
0 Special Events
Christmas
10,000
6,700
3,300
Main Street Reunion Car Show
10,000
6,700
3,300
Napa Live Inside and Out
0 0
0 Total Special Events
20,000
13,400
6,600
Way finding signage program
150,000
100,500
49,500
Travel Writers Visits (FAM)
15,000
10,050
4,950
Total Marketing
205,000
137,350
67,650
Total Expense
529,028
354,449
174,579
Net Ordinary Income
32,265
21,618
10,647
Net Income
32,265
21,618
10,647
DOWNTOWN NAPA PROPERTY & BUSINESS IMPROVEMENT DISTRICT
Required Components of Annual Report
From: State of California Streets and Highways Code (Section 36600 et sq) DNPBID - Year 3 - 2023
The California Streets and Highways Code Section 36650 requires that annual reports for Property and Business Improvement Districts contain the following information:
1. Any proposed changes in boundaries of the property and business improvement district or in any benefit zones or classification of property or businesses within the district.
Response: There are no proposed changes to the boundaries or classifications of the PBID.
2. The improvements and activities to be provided for Year 3 - 2023.
Response:
In Zone 1:
Beautification: Maintenance & Infrastructure: Sidewalk/Garage Cleaning, Hanging Flower Baskets, Christmas Garland and Lighting Marketing: Wayfinding Signage Program, Production of Historic Downtown Maps, ArtWalk Contribution, Main Street Reunion Car Show, Christmas Activities Administration: PBID Renewal costs, contributions to the PBID Contingency Reserve.
In Zone 2:
Beautification: Maintenance & Infrastructure: Sidewalk/Garage Cleaning, Christmas Garland and Lighting Marketing: Wayfinding Signage Program, Production of Historic Downtown Maps, ArtWalk Contribution, Christmas Activities Administration: PBID Renewal costs, contributions to the PBID Contingency Reserve.
3. An estimate of the cost to provide the improvements and activities for the Fiscal Year.
Response:
The estimated cost to provide these activities is $529,028, with $354,449 designated for parcels within Zone 1, and $174,579 designated for parcels in Zone 2.
4. The method and basis of levying the assessment in sufficient detail to allow each real property or businesses owner, as appropriate, to estimate the amount of the assessment to be levied against his or her property or business for that fiscal year.
Response:
The activities listed above and programmed for Year 3- 2022-2023 will be funded by revenues levied in 2021/22. Assessments are based on rates determined by the land use and the land area of the parcel. The assessment formula for the DNPBID is as follows:
Assessment = Land Area (Sq Ft) x Zone Rate ($/SF)
There are four land use/occupancy types that further determine the parcel land area assessment rate in each Zone based on a commercial component and type of commercial land use. Each land use type is determined by the predominant land use of a given parcel each year when assessments are determined for all parcels before placing the assessments on the County’s Property Tax Rolls. The four land use types are:
Type A. Retail Uses
Type B. Non-Retail Uses
Type C. Parking Uses (Surface or structured)
Type D. Vacant Land or Vacant Buildings
The PBID Management District Plan identified base-year rates in its 2020 renewal. Annual rate increases are calculated based on the percentage difference from year-to-year as determined by the property owners’ association board of directors (POABOD), with a maximum annual increase of 3%. A 3% assessment rate increase has been approved by the POABOD for FY 2023. Assessments to be levied in 2022/23 for PBID Work Program in 2023 will be determined by the following rates:
YEAR 3 – 2022/23 Assessment Rates
BENEFIT ZONE
RETAIL LAND AREA RATE ($/SF)
NON- RETAIL LAND AREA RATE ($/SF)
PARKING LAND AREA RATE ($/SF)
VACANT LAND AREA RATE ($/SF)
YEAR 3
1 $0.2430
$0.1623
$0.0806
$0.0403
2 $0.0806
$0.0806
$0.0403
$0.0403
Exhibit B, “Chart of Assessments” is provided with detailed information regarding each parcel and the estimated assessment to be levied in 2022/23.
5. The amount of any surplus or deficit revenues to be carried over from the previous fiscal year.
Response: The 2023 PBID budget anticipates a carryover of $70,071 from 2022; $46,948 generated from properties in Zone 1 and $23,123 generated from properties in Zone 2.
6. The amount of any contributions to be made from sources other than assessments levied pursuant to this part.
Response: The budget identifies $0 in interest income: $0 from Zone 1 and $0 from Zone 2.
DNPBID Property Owners’ Association Board of Directors:
Name Representing:
Ryan Gregory Committee Chair, Property Owner
Sara Brooks Napa River Inn, Napa Downtown Association
Mike Butler Property Owner
Tony Giaccio Napa Valley Wine Train
Michael Holcomb First & Main NV, LLC
Zen Hunter- Ishikawa Wiseman Company
Bob Johnstone Member-at-large
Kelly Moore Napa Parkway Plaza LLC
Vin Smith City of Napa
Craig Smith Staff
Napa PBID Zone 1 & 2 Boundary
2 EXHIBIT A