May 3, 2022
Economic Development
DATE: May 3, 2022
TO: Mayor Butt and Members of the City Council
FROM:
Shasa Curl, City Manager
Thomas Omolo, Senior Management Analyst
Lizeht Zepeda, Senior Business Assistance Officer
Subject:
Downtown Richmond Property and Business
Improvement District (DRPBID) Renewal
FINANCIAL IMPACT: There is no immediate financial impact. If the DRPBID renewal is successful, then the City will continue its
annual contribution, which would be $39,305.10
beginning in the fiscal year 2022-2023 (01917090-
400391).
PREVIOUS COUNCIL
ACTION:
July 6, 2021
STATEMENT OF THE
ISSUE:
The City of Richmond is a property owner in the
Downtown Richmond Property and Business
Improvement District (DRPBID) and, as such,
participates in the process to vote on the formation and continuance of the DRPBID program. City staff is
requesting authorization for the City Manager to execute all documents on behalf of the City of Richmond in
support of the renewal of the DRPBID.
RECOMMENDED ACTION:
ADOPT a resolution authorizing the City Manager to
execute all documents on behalf of the City of
Richmond in support of the renewal of the Downtown
Richmond Property and Business Improvement District
(DRPBID) – City Manager’s Office (Shasa Curl/Thomas
Omolo 620-5560).
AGENDA
REPORT
May 3, 2022
DISCUSSION:
The Richmond Main Street Initiative and Downtown Richmond Property and Business Improvement District (DRPBID) property owners have proposed the renewal of the DRPBID to continue providing activities and improvements which constitute and convey special benefits to assessed property owners. The renewed DRPBID will provide additional maintenance, safety and nuisance abatement, marketing, promotions and business development, capital improvements, and related administration to assessed properties within the DRPBID boundary.
After a majority of the property owners subject to assessment, weighted according to the amount of assessment to be paid by each property owner, petitioned the City Council to establish the Downtown Richmond Property and Business Improvement District (“DRPBID”); the City Council adopted a resolution on July 17, 2012, to establish the DRPBID (which includes City property). The DRPBID was renewed at the July 11, 2017, Richmond City Council meeting. The City of Richmond is a significant property owner in the district. City staff is requesting City Council approval for renewing of the DRPBID program. This support is through designating the City Manager with the authority to sign petitions and ballots in favor of formation and signing all other documents necessary on behalf of City-owned properties during the renewal process.
The DRPBID will be governed in accordance with a written Management District Plan, pursuant to Streets and Highways Code Section 36622. The Plan sets guidelines for the district, including the assessment rate, service plan, collection provisions, and governance (Attachment 2).
The DRPBID proposed assessment rate (cost to the parcel owner) is based on parcel type and square footage. The initial annual assessment rate applied to commercial parcels will be $0.15 per square foot per year, and applied to non-profit housing parcels will be $0.08 per square foot per year. Assessment rates may be subject to an increase of no more than three percent (3%) per year.
Under “The Right to Vote on Taxes Act” (also known as Proposition 218), all public agencies are required to pay the same assessments for a public property that applies to private property unless they can demonstrate by clear and convincing evidence that the public property does not receive a benefit. The Management District Plan provides that the City and other public entities should pay their “fair share” of all assessments.
District renewal requires the submittal of petitions from property owners representing at least 50 percent of the total annual assessment, followed by a ballot vote of the property owners. The “Right to Vote on Taxes Act” requires that more than 50 percent of the ballots received, weighted by assessment, be in support of the district. The final renewal of the district boundaries and reading of the vote is expected to take place in front of the City Council in or around July 2022, depending on the timing of the ballot mailings.
May 3, 2022
DOCUMENTS ATTACHED:
Attachment 1 – Resolution Authorize City Manager to Sign Documents Attachment 2 – DRPBID Management District Plan
Attachment 3 – District Parcels Map
Attachment 4 – City of Richmond and Redevelopment Agency Assessed Properties Attachment 5 – DRBID All Properties and Owners