City of Sacramento
City Council Report
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Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2022-00449 7/19/2022 Public Hearing Item 24.
Title: Greater Broadway Property and Business Improvement District No. 2022-01 (Noticed 06/01/2022)
File ID: 2022-00449
Location: Districts 4 and 7
Recommendation: Conduct a public hearing and upon conclusion, pass a Motion approving the proposed assessment and proposed activities and improvements for the Greater Broadway Property and Business Improvement District (District), and directing the City Clerk to: 1) tabulate the assessment ballots submitted and not withdrawn before the hearing is closed; and 2) bring back the matter as a consent item on July 26, 2022, with the tabulation results, for Council’s adoption of the District renewal.
Contact: Sini Makasini, Development Project Manager, [email protected], (916) 808-7967; Sheri Smith, Special Districts Manager, [email protected], (916) 808-7204, Department of Finance
Presenter: Sini Makasini, Development Project Manager, [email protected], (916) 808-7967, Department of Finance
Attachments:
1-Description/Analysis
2-Schedule of Proceedings
3-Attachment A, Proposed Assessment and Improvements
4-Attachment B, District Map
Description/Analysis
Issue Detail: The District is a benefit assessment district intended to improve the Broadway area commercial corridor. Initially formed in 2007, the District was renewed in 2012 for a ten-year term that expires on December 31, 2022. Property owners representing 54% of the affected parcels within the District submitted petitions to the City requesting renewal of the District for a ten-year term that would City of Sacramento Page 1 of 3
File ID: 2022-00449 7/19/2022 Public Hearing Item 24.
run through June 30, 2032.
On May 31, 2022, Council adopted Resolution No. 2022-0152 directing staff to mail assessment ballots and notices of public hearing to the owners of real property within the proposed District and setting July 19, 2022, as the date for a public hearing on the proposed District and assessment.
Public Hearing notices were mailed to all affected property owners on June 1, 2022.
At the conclusion of the hearing, staff recommends that Council approve the proposed assessment and proposed activities and improvements shown as Attachment A, and direct the City Clerk to tabulate the assessment ballots submitted and not withdrawn to determine whether there is a majority protest against the assessment (i.e., a majority protest exists if the assessment ballots submitted, and not withdrawn, in opposition to the proposed assessment exceed the assessment ballots submitted, and not withdrawn, in its favor, weighting those assessment ballots by the amount of the proposed assessment to be imposed upon the identified parcel for which each assessment ballot was submitted).
Staff will report the results of the tabulation at the Council meeting on July 26, 2022. If there is no majority protest from ballots submitted and not withdrawn, staff will recommend that the Council adopt a resolution, declaring the results of the ballot proceeding and renewing the District for a new ten-year term.
Policy Considerations: The recommended actions in this report are in accordance with the California Property and Business Improvement District (PBID) Law of 1994 (California Streets and Highways Code section 36600 et seq.) and City Code Chapter 3.44.
Economic Impacts: Not applicable.
Environmental Considerations:
California Environmental Quality Act (CEQA): Renewal of the District creates a funding mechanism for maintenance and other services and does not have a significant impact on the environment. Accordingly, renewal of the District does not in itself constitute a project under CEQA and is therefore exempt from review pursuant to CEQA Guidelines section 15378(b)(4).
Sustainability: Not applicable.
Commission/Committee Action: None.
Rationale for Recommendation: The public hearing is a required step in the renewal process and its completion will allow the District renewal proceedings to continue. District activities will include enhance economic development and safety services above what the City currently provides. Specifically, those activities include focused marketing, outreach, and other activities to convey a positive image, expand existing businesses and attract new businesses to the Broadway commercial corridor resulting in increased economic activity and revenue.
City of Sacramento Page 2 of 3
File ID: 2022-00449 7/19/2022 Public Hearing Item 24.
The Greater Broadway District (Association), the governing body of the District, serves as a key partner to the City’s economic development efforts, particularly in enhancing a clean and safe environment while providing increased marketing for new business development. In addition, the Association has the potential to serve as a critical partner in identifying both business needs and opportunities, as the Association will in many instances become the first entity to be contacted by local businesses.
Financial Considerations: Financing is provided by the levy of assessments upon properties that benefit from improvements and activities. There are 1,095 assessed parcels in the District service area. The total District assessment budget for the first year of the renewal will be approximately $460,000. If the District is renewed, the City will continue to participate as a property owner. City- owned property will have a total first year annual assessment of approximately $81,000. Funding for the City property assessment will be supported by the City’s general fund. Future assessment rates will be subject to an increase of no more than five percent (5%) annually based on the annual increase in activity and improvement costs.
Local Business Enterprise (LBE): Not applicable.
City of Sacramento Page 3 of 3
SCHEDULE OF PROCEEDINGS
GREATER BROADWAY
PROPERTY AND BUSINESS IMPROVEMENT DISTRICT #2022-01
February 8, 2022 Petition Drive Kick-off
April 19, 2022 City Council – Authorization of City Manager Signature to Vote for City- Owned Property Inclusion in Renewal
May 31, 2022 City Council - Resolution of Intention to Renew
July 26, 2022 City Council - Ballot Results - Resolution of Renewal
August 2022 Assessment Roll to County
July 19, 2022 City Council – Public Hearing – Ballot Count
ATTACHMENT A
Proposed Assessment Rate & Activities & Improvements
Purpose: The purpose of the Greater Broadway PBID is to provide activities and improvements which constitute and convey a special benefit to assessed parcels. The Greater Broadway PBID will provide the following activities and improvements directly and only to assessed parcels within its boundaries: Clean, Safe and Beautiful (security, homeless outreach, maintenance, beautification and placemaking) ; and Economic Vitality (economic development, marketing, and communication).
Budget: The Greater Broadway PBID annual assessment budget for the initial year of its ten (10) year renewal term is anticipated to be $451,101. The annual budget will be subject to an increase in assessment rates up to, but no more than, f ive percent ( 5%) per year. The assessment funds will be supplemented by non -assessment funds (such as event income), so that the total budget for the initial renewal year is estimated at $460,000.
Cost: Commercial properties’ annual assessments are based upon an allocation of costs for activities and improvements and a calculation of lot square footage plus building square footage (see table below).
Non-commercial properties (including residential and t ax exempt) will pay an adjusted rate. Tax exempt properties fully benefit from Clean, Safe, and Beautiful activities, but do not benefit directly from the Economic Vitality activities. Residential properties receive half the level of Clean, Safe, and Beautiful activities and do not benefit directly from Economic Vitality activities. The assessment rates below are adjusted accordingly.
Land Use Lot Sq. Ft. Building Sq. Ft.
Commercial $0.0723 $0.0207
Tax Exempt $0.0516 $0.0000
Residential $0.0258 $0.0000
ATTACHMENT B