Downtown San Bernardino Property and
Business Improvement District (PBID)
Formation
Presented by: Eric Levitt, City Manager
Luis Portillo, Director of Economic Development Department Jennifer Machuca, Economic Development Senior Management Analyst Background
What is a Property and Business Improvement District (PBID)? • Property-owner funded district.
• Funds are used to enhance services within the district beyond City baseline. • Assessments are collected on property tax bills.
• Managed by nonprofit organization and funds allocated to the agreed upon services defined in the PBID.
• Over 100 PBIDs operating in California.
Background
Downtown PBID Background
- Property owner interest initiated
- Feasibility study conducted by Civitas
- Stakeholder outreach and public
meetings completed
2022
Feasibility study finalized
• Defind boundaries
• Established budget
• Identified service framework
January 2023
- Staff presented City Council
information regarding the PBID
initiative at a Strategic Initiatives
Workshop
June 2023
- City Council directed staff to proceed
with next steps
September 2023
-City Council adopted Reso 2023-144,
approving $39,000 for Phase II
Formation process
October 2023
- Organizational leadership and staffing
changes delayed progression of the
project following Councils Oct 2023
approval.
Delays
- Bring forward for consideration the
resolution to allocate funding to
execute the PSA with Civitas, and to
engage in the Phase II Formation
process.
Next Steps
Downtown San Bernardino
Property & Business Improvement District
Feasibility Findings & Next Steps for Formation
Presented to the San Bernardino City Council | July 15, 2026 Kelly Rankin, Senior Project Manager & Director of Team Engagement, Civitas
A G E N D A
Tonight's Discussion
1 What a PBID is
How property owners across California fund
enhanced downtown services
2 What the feasibility study found
Findings from the 2022–2023 study funded
by the City
3 Where support stands today
Why Downtown San Bernardino is
positioned to move forward now
4 The formation process
A nine-month path to a formed district
T H E B A S I C S
What Is a PBID?
A PBID is a stable, owner-controlled funding source for improvements and services within a defined commercial area. Property owners assess themselves, and every dollar is spent inside the district on services that benefit the assessed parcels.
Owner funded
Owners pay an assessment that stays
downtown, funding services above
and beyond what the City provides
Owner governed
Owners petition for the district,
vote on it, and sit on the board that
directs spending
Defined term
Formed for up to 5 years initially;
continuing beyond that requires
owner approval again
Authorized by the Property and Business Improvement District Law of 1994 (Streets & Highways Code §36600 et seq.). More than 100 PBIDs operate across California today.
T H E M E C H A N I C S
How a PBID Works
1 Owners pay an
assessment
Each parcel pays its proportional
share based on the adopted
methodology
2 The County collects it
The assessment appears on the
regular property tax bill
3 A nonprofit delivers
services
An Owners' Association governed
by assessed property owners
manages the budget and programs
Accountability is built in
Assessed owners sit on the Owners’ Association's board and decide how funds are spent. The Association contracts with the City and submits an annual report on activities and expenditures. The Association must spend assessment funds in accordance with the Management District Plan and is subject to Brown Act and Public Records Request Act.
S E R V I C E S
What PBIDs Fund
Clean
Litter and bulky item removal, pressure washing, graffiti abatement, landscaping
Safe
Visible safety patrols, homeless outreach navigators, nuisance response
Capital improvements
Wayfinding signage, lighting, banners, placemaking and public space upgrades
A unified voice
One organization representing downtown owners' priorities
P R O V E N R E S U L T S
Watt Avenue PBID,
Sacramento County
30%
reduction in major crime
25%
reduction in burglary
Every service must confer special benefit on the assessed parcels that pay for it. 2022 – 2023
The Feasibility Study: What We Did
The City funded Civitas to test whether a downtown PBID could succeed. The study was built on direct engagement with the owners who would pay the assessment.
Steering committee
Led by downtown property owners proposed to
be assessed, meeting throughout the study
Open house
Virtual open house in December 2022
Boundary & data analysis
Parcel-by-parcel review of the proposed district
with the committee
Service plan
A detailed plan of proposed services, budget,
and boundaries shaped by owner feedback
F I N D I N G S
What the Study Found
A solid foundation of support
Owners and key stakeholders engaged through an open house and one-on-one meetings supported moving forward
Clean & safe is the top priority
Owner feedback consistently pointed to cleanliness, safety, and capital improvements
The City is the largest payer
City-owned parcels would carry the largest single share of the assessment
County & SoCalGas participation matters
Securing the County and SoCalGas’ support for its downtown parcels is a key step in formation
Proposed boundaries (2023 study)Bottom line: formation is feasible, and Civitas recommended the City proceed.
F I N D I N G S
Proposed District Framework
Assessment rates (per parcel sq. ft.)
Commercial parcels $0.0150
Vacant parcels $0.0125
Tax-exempt parcels $0.0050
Initial term: up to 5 years, then renewable only
with owner approval
$301K
estimated initial annual
budget
Clean & Safe (70%)
Capital Improvements
(15%)
Administration (10%)
Contingency/Reserve
(3%)
Collection Fee (2%)
How the budget would be allocated
Figures reflect the 2023 feasibility study. All parameters will be refreshed and confirmed with property owners during formation.
W H Y N O W
Ready to Move Forward
Stakeholders are still engaged
Stakeholders who shaped the study continue to support a downtown PBID
The groundwork is done
Boundaries, services, and budget scenarios from the study give formation a running start
Data will be refreshed
Ownership records are rebuilt from current County Assessor data, and support is re-confirmed owner by owner
Timing matters
Completing formation by July 2027 places assessments on the 2027– 28 tax roll, funding services beginning January 2028
T H E P A T H F O R W A R D
The Formation Process: 9 Months
M O N T H S 1– 2
Launch & data refresh
Re-convene the steering committee;
rebuild the parcel and ownership
database
M O N T H S 3– 4
Plan & Engineer's Report
Draft the Management District Plan;
independent engineer documents
special benefit
M O N T H S 4– 6
Petition drive
Owners who will pay more than 50% of
assessments must sign petitions in
support
M O N T H 7
Resolution of Intention
Council adopts the ROI; ballots and
hearing notice are mailed to every
owner
M O N T H S 7– 9
45-day ballot period
Owners cast assessment ballots under
Proposition 218, weighted by what
each pays
M O N T H 9
Hearing & formation
Council holds the public hearing,
tabulates ballots, and may adopt the
Resolution of Formation
Owner approval is built in twice: the petition threshold and a weighted Proposition 218 ballot. A majority protest means the district is not formed.
T I M E L I N E
Key Dates
JUL 2026
Contract approved, project
launches
EARLY 2027
Petition drive, then
Resolution of Intention
SPRING 2027
45-day ballot, public
hearing, formation vote
JUL 2027
Deadline to reach the 2027–
28 tax roll
JAN 2028
Collection begins, services
launch downtown
Formation must be complete by July 2027 for the County to place assessments on the property tax roll.
Discussion
9-Month PBID
Formation Timeline
starting after
resolution approval
and execution of
the PSA.
Fiscal Impact
General Fund Impact
• $74,500
o $39,000 was previously allocated to Economic Development during FY 23/24 and relinquished as the project didn’t move forward at that time. o We are asking for the original $39,000 that was already approved and relinquished back to the General Fund, and the additional $35,500 difference to complete the project in FY 26/27.
Conclusion
Staff Recommendation
1. It is recommended that the Mayor and City Council of the City of San Bernardino adopt Resolution No. 2026-XXX:
• Receive and file the oral presentation from Civitas Advisors Inc., on the Downtown San Bernardino Property and Business Improvement District (PBID) Formation Phase I Final Feasibility Study and Findings / Overview of the proposed Phase II Formation process; and
• Authorizing the City Manager, or designee, to execute the Professional Services Agreement (PSA) with Civitas Advisors Inc., for the Downtown San Bernardino Property and Business Improvement District (PBID) Formation Services Phase II in an amount not- to-exceed $74,500 and, signing subsequent, necessary, and related documents to implement the PSA; and • Authorizing the Director of Finance and Management Services, or designee, to amend the FY 2026/27 Operating Budget in the amount of $74,500 for the Phase II Formation of the Downtown San Bernardino Property and Business Improvement District, and; moving the funds into Economic Development Department Professional Contractual Services; and • Authorizing the Director of Finance and Management Services, or designee, to issue a purchase order in the amount of $74,500 to Civitas Advisors, Inc.
Questions?
Kelly Rankin
Senior Project Manager & Director of Team Engagement
[email protected] | (916) 437-4300 | civitasadvisors.com