TO: HONORABLE MAYOR AND FROM: Nanci Klein
CITY COUNCIL
SUBJECT: SEE BELOW DATE: May 17, 2022
Approved Date
05/24/22
COUNCIL DISTRICT: 3
SUBJECT: PRELIMINARY APPROVAL OF 2022-2023 BUDGET REPORT, ADOPTION OF RESOLUTION OF INTENTION TO LEVY 2022-2023
ASSESSMENTS IN THE JAPANTOWN BUSINESS IMPROVEMENT
DISTRICT, AND SETTING THE DATE AND TIME FOR THE PUBLIC
HEARING ON THE LEVY OF ASSESSMENTS
RECOMMENDATION
(a) Preliminarily approve the 2022-2023 Budget Report as filed by the Japantown Business Improvement District Advisory Board, or as modified by Council.
(b) Adopt a resolution of intention to:
(1) Levy the annual assessment for Fiscal Year 2022-2023; and (2) Set Tuesday, June 21, 2022, at 1:30 p.m. as the date and time for the Public Hearing on the levy of the proposed assessments.
OUTCOME
Approval of this action will result in a resolution of intention to levy assessments for the upcoming fiscal year of the Japantown Business Improvement District (BID) and set the time and date for the public hearing.
BACKGROUND
The Jackson-Taylor Business Improvement District was established by Council in 1990 pursuant to the California Parking and Business Improvement Area Law (BID Law) and subsequently changed its name, with Council approval, to Japantown BID to promote the economic revitalization and physical maintenance of the Jackson-Taylor business district. Council appointed the Jackson-Taylor Business and Professional Association (who have since changed COUNCIL AGENDA: 06/07/22
FILE: 22-827
ITEM: 2.11
HONORABLE MAYOR AND CITY COUNCIL
May 17, 2022
Subject: Preliminary Approval of 2022-2023 Budget Report, Adoption of Resolution of Intention to Levy 2022-2023 Assessments in the Japantown BID, and Setting the Date and Time for the Public Hearing on the Levy of Assessments
their name to the Japantown Business Association to correspond with the neighborhood name) as the Advisory Board (Advisory Board) for the BID, to advise Council on the levy of assessments in the BID and the expenditure of revenues derived from the assessments for the benefit of the BID. The Japantown BID service area is shown in Attachment A.
Pursuant to BID Law, the Advisory Board must come before Council on an annual basis to present a report. The report proposes a budget for the upcoming fiscal year for the BID to advise the Council on the levy of assessments in the BID and the expenditure of revenues derived from the assessments for the benefit of the BID. Council must then: 1) review the report and preliminarily approve it as proposed or as changed by Council; 2) adopt a resolution of intention to levy the assessments for the upcoming fiscal year; 3) set a date and time for the public hearing on the BID-related actions. Absent a majority protest at the public hearing, at the conclusion of the public hearing Council may adopt a resolution approving the budget for Fiscal Year 2022- 2023 as filed or as modified by Council. The adoption of the resolution constitutes the levying of the BID assessments for the Fiscal Year 2022-2023.
ANALYSIS
The Advisory Board has prepared a budget report (the “report”) attached as Attachment B, for Council’s consideration, as the budget for the Japantown BID for Fiscal Year 2022-2023. As required by BID Law, the report has been filed with the City Clerk and contains, among other things, a list of the improvements and activities proposed to be provided in the BID in Fiscal Year 2022-2023 and an estimate of the cost of providing the improvements and activities. The Advisory Board has recommended no change in the BID boundaries or the method and basis for levying assessments. Therefore, the proposed assessments in the BID for Fiscal Year 2022- 2023, described in the report, are the same as the assessments for Fiscal Year 2021-2022.
Council may approve the report as filed or modify the report and approve it as modified. After the approval of the report, Council must adopt a resolution of intention to levy the annual assessment for the 2022-2023 fiscal year and fix a time and place for a public hearing to be held on the levy of the proposed assessment.
CONCLUSION
Approval of this action will result in the adoption of a resolution of intention to levy the assessments for the upcoming fiscal year of the Japantown BID and set the time and date for the public hearing on Tuesday, June 21, 2022, at 1:30 p.m.
HONORABLE MAYOR AND CITY COUNCIL
May 17, 2022
Subject: Preliminary Approval of 2022-2023 Budget Report, Adoption of Resolution of Intention to Levy 2022-2023 Assessments in the Japantown BID, and Setting the Date and Time for the Public Hearing on the Levy of Assessments
EVALUATION AND FOLLOW-UP
The Advisory Board will come before Council next year to present a report that proposes a budget for the 2023-2024 fiscal year.
CLIMATE SMART SAN JOSE
The recommendation in this memo has no effect on Climate Smart San José energy, water, or mobility goals.
PUBLIC OUTREACH
The budget for Fiscal Year 2022-2023 was reviewed and approved by the Advisory Board on May 19, 2022 as shown in Attachment C. This memorandum will be posted on the City’s website for the June 7, 2022 Council agenda.
COORDINATION
This memorandum has been coordinated with the City Attorney’s Office, the Finance Department, Planning, Building and Code Enforcement, the City Manager’s Budget Office, the Japantown Business Association, and the City Clerk's Office.
COMMISSION RECOMMENDATION/INPUT
No commission recommendation or input is associated with this action.
FISCAL/POLICY ALIGNMENT
This action is consistent with the Economic Development Strategy approved by Council, specifically Initiative No. 5, “Support Startup and Growth of Local Businesses, in Tech as well as Non-Tech fields” and Initiative No. 13, “Develop Retail to Full Potential, Maximizing Revenue Impact and Neighborhood Livability.” A healthy Business Improvement District will encourage growth of the retail community and consequently result in additional sales tax revenue for the City.
HONORABLE MAYOR AND CITY COUNCIL
May 17, 2022
Subject: Preliminary Approval of 2022-2023 Budget Report, Adoption of Resolution of Intention to Levy 2022-2023 Assessments in the Japantown BID, and Setting the Date and Time for the Public Hearing on the Levy of Assessments
COST SUMMARY/IMPLICATIONS
Adoption of the proposed Japantown BID budget does not directly impact City revenue. It is anticipated that a healthy Japantown BID will encourage growth of the retail community, which indirectly generates additional business tax and sales tax revenue for the City. The Japantown BID assessments are restricted for use exclusively by the Japantown BID and it is estimated at $31,725 in 2022-2023. The 2022-2023 Proposed Operating Budget, subject to City Council approval, includes projected assessment revenue and corresponding expenses totaling $40,000, as detailed in the Source and Use Statement for the Business Improvement District Fund (351).
Subsequent actions will be brought forward as part of the regular budget process to align these budgeted amounts to the levels recommended in this memorandum.
CEQA
Statutorily Exempt, CEQA Guidelines Section 15061(b), Review for Exemption, File No. PP08- 048.
/s/
NANCI KLEIN
Director of Economic Development and
Cultural Affairs
For questions, please contact Sal Alvarez, Executive Analyst, at (408) 793-6943.
Attachments:
Attachment A – Japantown BID Budget Report for FY 2022-2023 Attachment B – Japantown BID Map for FY 2022-2023
Japantown BID Budget Report for Fiscal Year 2022-2023
1. There are no proposed changes to the boundaries of the BID. Zone 1 and Zone 2 remain the same in terms of geography. See attached BID address range sheet.
2. Estimated budget and improvements:
* All figures are estimates. Any additional or unused BID funding will be used for beautification, marketing, events, office expenses, or carried over for Year 2023-2024.
3. Improvements and activities funded by BID:
* The JBA has financial reserves to accommodate any cost overruns for infrastructure improvements in 2022-2023.
Japantown BID Income, Zones 1 and 2 $31,725
CSJ Neighborhood Business District (NBD) Grant 25,000
Fundraising efforts 2,000
Parking Program Income (leasing from NPOs to businesses) 2,000 BeerWalk/SakeWalk/events benefitting JBA 3,000
Non-BID membership 0
Total $63,725
Infrastructure repairs and improvements $20,000
Tree maintenance and planting 8,175
Japantown Certified Farmer’s Market 4,350
Marketing and design (advertising, promotions) 14,000
Office expenses (rent, insurance, hardware and software) 7,000 Street cleaning, maintenance and graffiti abatement 5,200 Utilities (web, phone, subscriptions) 3,000
Miscellaneous (sponsorship and local support) 2,000
Total $63,725
JAPANTOWN BUSINESS ASSOCIATION 05/12/2022 of 1 6
JAPANTOWN BUSINESS ASSOCIATION
565 N. 6th Street, Suite G. San Jose, CA 95112. phone (408) 298-4303. [email protected]
Attachment A
4. Fiscal Year 2022-2023 Planned Expenses for Japantown Farmer’s Market • The Japantown Farmer's Market reopened in May 2022 after a two-year pandemic closure. The event is now being co-managed by the Pacific Coast Farmer's Market Association and Japantown Business Association; expenses are mostly covered by PCFMA.
5. Current Japantown BID Assessment rates are below:
Rent ($2.5K/quarter reimbursed by PCFMA) N/A (PCFMA)
GB Facility maintenance ($250/month paid for by JBA) 3,000 Permits, licensing and inspections N/A (PCFMA)
Promotional 1,000
Concessions (potable water, soft drinks, coffee, etc) N/A (PCFMA) General expenses (garbage bags, storage, cleanup) 350
Total for Fiscal Year 2022-2023 $4,350
Zone 1 $
Financial institutions 550
Retail (over 10 employees) 375
Restaurants 275
Professional Services (CPAs, Attys, Drs, Agents, etc) 200 Retail (10 employees or less) 200
Commercial Property Owners 175
Non-Retail (Artists, Industrial, Mfg, Repair, Wholesale) 100 Zone 2
Any business 75
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Japantown BID Address Range: 2022-2023
*BID Income sources listed on next page
Japantown BID Income Sources 2022-2023
Zone 1 - per breakdown* Zone 2 - $75 any
E. Taylor St. 131-275 (odd)
52-274 (even)
E. Taylor St. 2-50 (even)
281-340 (all)
Jackson St. 80-300 (all) Jackson St. 1-79 (all)
N. 1st St. — N. 1st St. 598-698 (even)
N. 2nd St. — N. 2nd St. 595-694 (all)
N. 3rd St. 600, 601, 608, 698 N. 3rd St. 607, 609-694 (all) N. 4th St. 573-605 (odd)
576-620 (even)
680-702 (all)
N. 4th St. 607-679 (odd)
624-674 (even)
N. 5th St. 575-607 (odd)
590-640 (even)
683, 690, 695
N. 5th St. 565-573 (odd)
613-681 (odd)
560-580 (even)
650-680 (even)
N. 6th St. 520-702 (all) N. 6th St. —
N. 7th St. — N. 7th St. 598-702 (all)
Business Classification Fee ($) Number/
Qty.
Gross
Revenue ($)
% of
Revenue
Financial Institutions 550 1 550 2
Retail (over 10 employees) 375 1 375 1
Restaurants 275 21 5,775 18
Retail (10 employees or less) 200 26 5,200 16
Professionals 200 19 3,800 12
Commercial Property Owners 175 34 5,950 19
Non-Retail 100 31 3,100 10
Zone 2, Any Businesses 75 93 6,975 22
Total Revenue 226 $31,725 100
JAPANTOWN BUSINESS ASSOCIATION 05/12/2022 of 3 6
JBA Board of Directors 2022-2023
Tamiko Rast, President 408-564-1663 [email protected] Rasteroids Design, Ernest & Fred [email protected] Jacqueline Bates, VP 408-234-4537 [email protected]
Prayer Garden Church of God, Commercial Property Owner
Carolyn Kogura, Treasurer 408-605-1880 [email protected] Kogura Company, Commercial Property Owner
Miles Rast, Secretary 408-564-1662 [email protected] Rasteroids Design
Kari (Dobashi) Barton 408-221-3775 [email protected]
Representative for Commercial Property Owner
Patty (Dobashi) Yasukawa 408-221-5126 [email protected] Commercial Property Owner
Richard Kogura 408-605-5530 rkogura@mcmdiversified.com
Kogura Company, Commercial Property Owner
Jim Nagareda 408-219-4103 [email protected]
Nagareda Studio, Nikkei Traditions, Commercial Property Owner My Nguyen 408-421-1420 [email protected]
Headliners
Carole Rast 408-807-3365 [email protected]
Roy's Station
Mark Santo 408-295-5406 [email protected]
Santo Market
Jordan Trigg 408-839-2309 [email protected]
Jack’s Bar, 7 Bamboo, Jtown Pizza, Dipsomania Inc.
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Highlights from 2021-2022 Fiscal Year
The Restaurant Subsidy Program (May 2020 – Nov. 2021): To alleviate financial damages from the pandemic, the JBA created a Restaurant Subsidy Program in which $200 was given to a different Japantown restaurant every week to donate free meals to first responders, teachers, people-in-need, and nonprofit volunteers. In 2021, the JBA doubled the weekly donations to $400. Over 10 restaurants participated and donors include: Japantown Prepared safety patrollers, Muwekma Ohlone Middle School, Wesley United Methodist Church’s Food Distribution Program, Yu-Ai Kai’s Brown Bag Program, Guadalupe River Park Conservancy, Sutter Health Respiratory Clinic, Valley Medical staff, and Mexican Heritage Plaza. The program was funded in part by Suzume No Gakko, Japantown’s after-school summer program. A final report was issued to our fiscal co-sponsor, the Japantown Community Congress of San Jose, in November 2021.
Communication: the JBA maintained a COVID-specific informational webpage from the beginning of the pandemic, keeping the public apprised of changing business hours and contact information for Japantown's businesses and the Japantown Farmer's Market vendors. It was regularly updated. A second private communication channel was established for JBA businesses to keep apprised of San Jose City Office of Economic Development and District 3 postings and Japantown-specific notices, news and updates.
Beautification: the JBA continues to work with the Rast Family to maintain the appearance of Japantown, including graffiti abatement, street sweeping, and litter/biohazard cleanup.
A. New street banners and hardware were installed on Jackson Street in June 2021.
Hardware replaced failing and hazardous metal poles and carabiners with hurricane-rated flexible poles.
B. The JBA planted an additional 30 street trees in empty tree wells in the Japantown district and held a campaign to "adopt out" the tree watering duties for all 50 new trees (including the 20 planted by Our City Forest and JBA in 2019), to neighbors and local businesses.
The JBA maintains responsibility for the ongoing pruning and maintenance of these juvenile trees.
C. Japantown's mature New Bradford Pear street trees were professionally trimmed, shortened and thinned for pedestrian safety in January 2022; two large branches snapped in Fall 2021 due to high winds.
D. Eight large plastic planters were placed on sidewalk bulb-outs on the N. 5th/Jackson Street intersection. These bulb-outs are known to be poorly engineered with no curb sight-lines for drivers, but there are no current plans by the CSJ Dept. of Transportation to repair them, so the planters help visibility for drivers and provide extra safety for pedestrians.
E. Pavers were installed in the large tree wells along Jackson Street, increasing the pedestrian walkway and abating the uneven surface from compacted granite "gold fines".
F. Restoration of the Japantown Gateway Monument (Redevelopment Agency, artist Ken Matsumoto) on N. 5th/Taylor Streets occurred in April 2022. Repainted with automotive- grade paints and installation of new, in-ground LED fixtures to illuminate the sculpture.
G. Restoration of the Japantown Plum Blossom Gates on N. 5th/Jackson Streets occurred in March 2022. Fully repainted with automotive-grade paints for the first time since its installation in the 1980s.
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Social Media and Marketing/Merchandising: the JBA designed and created new branded merchandise for 2022 – including t-shirts and drinkware. All were very well received and helped increase visibility while supporting the organization. Japantown's official Instagram account, @japantownsj, has grown an additional 29% without any paid advertisements (6800 followers to over 8800), in one year.
Public Events and Festivals: The return of in-person festivals to Japantown required JBA collaboration and community planning. Japantown hosted Viva Calle as a hub in September 2021 and May 2022. Nikkei Matsuri, a festival held in Japantown since 1978, returned after a two-year absence with a change of planning (inclusion of music, beer, contemporary food choices), resulting in larger-than-expected crowds, food vendors and local businesses sold out of food, and all craft vendors expressed a desire to return in 2023. The JBA works with Dipsomania, Inc. to promote the regular Beerwalk events, Gordon Biersch and Moveable Feast to promote the Taylor Street Night Market, Yu-Ai Kai for the Nihonmachi Run, the Buddhist Church Betsuin for the Obon Festival, Wesley United Methodist Church for Aki Matsuri, and plan for the Shukai car exhibition in October.
Engagement: the JBA worked with the City of San Jose, Japantown Community Congress, Japantown Neighborhood Association, and to a lesser degree, neighborhood groups from Hensley, Vendome, Hyde Park and Northside to disseminate information, provide feedback and collaborate on the following issues:
H. Pedestrian, traffic and Dept. of Transportation issues, including the N. 6th/Taylor intersection and signal installation; Union Pacific R.R. Quiet Zone implementation; Smart Meters and parking management; Bike Plan 2025; mobility initiatives including vehicle- sharing, scooters, bike share programs, and other alternative modes of transportation.
I. Safety and crime issues, including repeat offenders responsible for theft, vandalism, and property destruction. Regular correspondence with the CSJ, Homeless Concerns and Beautify SJ regarding encampments and individuals in crisis within the BID, and updates to D3 and SJPD regarding speeding and traffic enforcement concerns.
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Attachment B