TO: HONORABLE MAYOR AND FROM: Nanci Klein
CITY COUNCIL
SUBJECT: SEE BELOW DATE: May 1, 2023
Approved Date
5/10/23
COUNCIL DISTRICT: 3
SUBJECT: SET A PUBLIC HEARING ON THE LEVY OF THE PROPOSED
JAPANTOWN BUSINESS IMPROVEMENT DISTRICT ASSESSMENTS
RECOMMENDATION
(a) Preliminarily approve the 2023-2024 Budget Report as filed by the Japantown Business Improvement District Advisory Board, or as modified by City Council.
(b) Adopt a resolution of intention to levy the annual assessment for Fiscal Year 2023-2024, and set Tuesday, June 6, 2023 at 1:30 p.m. as the date and time for the public hearing on the levy of the proposed assessments.
SUMMARY AND OUTCOME
Approval of this action results in a resolution of intention to levy assessments for the upcoming fiscal year of the Japantown Business Improvement District and sets the time and date for the public hearing.
BACKGROUND
The Jackson-Taylor Business Improvement District was established by City Council in 1990 pursuant to the California Parking and Business Improvement Area Law and subsequently changed its name, with City Council approval, to Japantown Business Improvement District (BID) to promote the economic revitalization and physical maintenance of the Jackson-Taylor business district. City Council appointed the Jackson-Taylor Business and Professional Association (who have since changed its name to the Japantown Business Association to correspond with the neighborhood name) as the Advisory Board (Advisory Board) for the BID, to advise City 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 California Parking and Business Improvement Area Law, the Advisory Board must come before City Council on an annual basis to present a report. The report proposes a budget for the upcoming fiscal year for the BID to advise City Council on the levy of assessments in the BID and the COUNCIL AGENDA: 5/23/23
FILE: 23-738
ITEM: 2.12
HONORABLE MAYOR AND CITY COUNCIL
May 1, 2023
Subject: Set A Public Hearing on the Levy of the Proposed Japantown Business Improvement District Assessments
expenditure of revenues derived from the assessments for the benefit of the BID. City Council must then: 1) review the report and preliminarily approve it as proposed or as changed by City 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, City Council may approve the budget for fiscal year 2023-2024 as filed or as modified by City Council, and levy the BID assessments for the fiscal year 2023-2024.
ANALYSIS
The Advisory Board has prepared a budget report attached as Attachment B, for City Council’s consideration, as the budget for the Japantown BID for fiscal year 2023-2024. As required by California Parking and Business Improvement Area Law, the budget 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 2023-2024 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 2023-2024, described in the report, are the same as the assessments for fiscal year 2022- 2023.
City Council may approve the budget report as filed or modify the budget report and approve it as modified. After the approval of the budget report, City Council must adopt a resolution of intention to levy the annual assessment for the 2023-2024 fiscal year and fix a time and place for a public hearing to be held on the levy of the proposed assessment.
EVALUATION AND FOLLOW-UP
The Advisory Board will come before City Council next year to present a report that proposes a budget for the 2024-2025 fiscal year.
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 the 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 $30,475 in 2023-2024. The 2023-2024 Proposed Operating Budget, subject to City Council approval, includes projected assessment revenue and corresponding expenses totaling $63,725, 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.
HONORABLE MAYOR AND CITY COUNCIL
May 1, 2023
Subject: Set A Public Hearing on the Levy of the Proposed Japantown Business Improvement District Assessments
COORDINATION
This memorandum has been coordinated with the City Attorney’s Office, the City Clerk's Office, the City Manager’s Budget Office, the Finance Department, and Planning, Building, and Code Enforcement. This memorandum was also coordinated with the Japantown Business Association.
PUBLIC OUTREACH
The budget for fiscal year 2023-2024 was reviewed and approved by the Advisory Board on April 27, 2023 as shown in Attachment C. This memorandum will be posted on the City’s Council Agenda website for the May 23, 2023 City Council meeting.
COMMISSION RECOMMENDATION/INPUT
No commission recommendation or input is associated with this action.
CEQA
Statutorily Exempt, CEQA Guidelines Section 15061(b), Review for Exemption, File No. PP08-048.
PUBLIC SUBSIDY REPORTING
This item does not include a public subsidy as defined in section 53083 or 53083.1 of the California Government Code or the City’s Open Government Resolution.
/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 Map for FY 2023-2024
Attachment B – Japantown BID Budget for FY 2023-2024
Attachment C – Japantown BID Board Minutes for FY 2023-2024 Attachment A: Japantown BID Map for FY 2023-2024
Japantown BID Budget Report for Fiscal Year 2023-2024
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 2024-2025.
3. Improvements and activities funded by BID:
* The JBA has financial reserves to accommodate cost overruns for any of these categories in 2023-2024.
Japantown BID Income, Zones 1 and 2 $30,475
Japantown Farmer's Market Booth Fees 21,600
CSJ Neighborhood Business District (NBD) Grant 5,000
Fundraising efforts (merchandise sales) 5,000
Parking Program Income (leasing from NPOs to businesses) 2,000 Non-BID membership 0
Total $64,075
Japantown Certified Farmer's Market $19,500
Marketing and design (advertising, promotions, social media) 14,000 Infrastructure repairs and improvements 7,500
Tree maintenance and planting 7,500
Street cleaning, maintenance and graffiti abatement 6,000 Office expenses (rent, insurance, hardware and software) 5,000 Utilities (web, phone, subscriptions) 2,000
Miscellaneous (sponsorship and local support) 1,000
Total $62,500
JAPANTOWN BUSINESS ASSOCIATION
JAPANTOWN BUSINESS ASSOCIATION
565 N. 6th Street, Suite G. San Jose, CA 95112. phone (408) 298-4303. [email protected]
Attachment B: Japantown BID Budget for FY 2023-2024
1 4. Fiscal Year 2023-2024 Planned Expenses for Japantown Farmer’s Market • The Japantown Farmer's Market will return as a seasonal event from May 7 through October 29, 2023 (24 Sundays). We have returned to self-managing and operations of the event, as we did in 2019.
5. Current Japantown BID Assessment rates are below:
Rent ($200 per market day) 4,800
GB Facility maintenance ($250/month paid for by JBA) 1,500 Permits, licensing and inspections 1,500
Promotional 1,000
Concessions (potable water, soft drinks, coffee, etc) 200 General expenses (garbage bags, storage, cleanup) 500
Volunteer Stipends 10,000
Total for Fiscal Year 2023-2024 $19,500
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
JAPANTOWN BUSINESS ASSOCIATION
Attachment B: Japantown BID Budget for FY 2023-2024
2 Japantown BID Address Range
*BID Income sources listed on next page
Japantown BID Income Sources 2023-2024
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 20 5,500 18
Retail (10 employees or less) 200 22 4,400 14
Professionals 200 20 4,000 13
Commercial Property Owners 175 33 5,775 19
Non-Retail 100 29 2,900 10
Zone 2, Any Businesses 75 93 6,975 23
Total Revenue 219 $30,475 100
JAPANTOWN BUSINESS ASSOCIATION
Attachment B: Japantown BID Budget for FY 2023-2024
3 JBA Board of Directors 2023-2024
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.
JAPANTOWN BUSINESS ASSOCIATION
Attachment B: Japantown BID Budget for FY 2023-2024
4 Highlights from 2022-2023 Fiscal Year
Communication: the JBA maintains a website for the Business Improvement District (www.japantownsanjose.org), two Instagram channels (@japantownsj and @japantownfarmersmarket), one Facebook page (Japantown Business Association), and a Facebook group (Fans of San Jose Japantown). JBA also maintains a private communication channel to help JBA businesses to keep apprised of San Jose City Office of Economic Development and District 3 postings and Japantown-specific notices, news and updates.
Social Media and Marketing/Merchandising: the JBA continues to design and market its own brand. Merchandise has been well received and helped increase visibility while supporting the organization. Japantown's official Instagram account, @japantownsj, has grown an additional 27% without any paid advertisements (8800 to 11.2K), in one year. The JBA also assisted in coordinating a collaboration between Team San Jose and Headliners to bring official San Jose branded merchandise to a brick-and-mortar shop in Japantown.
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. The JBA maintains a total of 50 juvenile street trees in Japantown planted in collaboration with Our City Forest and self-planted by our organization in 2020 and 2021. The tree watering duties are handled by neighbors and businesses that "adopted" trees. The trees were professionally pruned in early 2023 and the JBA handles fertilization and pesticide control.
Public Events and Festivals: Japantown festivals require JBA collaboration and community planning. Japantown hosted Viva Calle as a hub in May 2022 and is a planned hub in 2023.
Nikkei Matsuri, a festival held in Japantown since 1978, returned after a two-year absence with a major 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. Due to the popularity of the April 2022 event, the April 2023 event has grown to over 70 craft booths and required a larger street footprint. The JBA works with Dipsomania, Inc. to promote the regular Beerwalk/SakeWalk 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 plans 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:
A. Pedestrian, traffic and Dept. of Transportation issues, including the infrastructure of the neighborhood primary crosswalk zones, Union Pacific R.R. Quiet Zone implementation, Smart Meters and parking management, and mobility initiatives including vehicle-sharing, scooters, bike share programs, and other alternative modes of transportation.
B. 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.
JAPANTOWN BUSINESS ASSOCIATION
Attachment B: Japantown BID Budget for FY 2023-2024
5 Meeting Minutes
Thursday, April 27th, 2022 at 6:30pm via Zoom Video Conference Japantown Business Association
President Tamiko Rast, Vice President Jacqueline Bates, Treasurer Carolyn Kogura, Secretary Miles Rast, Richard Kogura, Jim Nagareda, My Nguyen, Carole Rast, Mark Santo, Jordan Trigg, Patty Dobashi-Yasukawa
I. Attendees
Board Members: Carolyn Kogura, Richard Kogura, Jacqueline Bates, James (Jim) Nagareda, My Nguyen, Carole Rast, Miles Rast, Tamiko Rast, Jordan Trigg, Patty Dobashi-Yasukawa. Absent: Mark Santo.
II. Additions or Deletions
A. No additions or deletions.
III. Reports
A. Reports
Miles motions to approve the March 2023 JBA meeting minutes, Jordan seconds the motion with full board approval.
The JBA received $3,400 in BID fees last month. Miles motions to approve the March 2023 JBA Financial Report, Carole seconds the motion with full board approval.
B. JBA Board Nominations
- President Nomination. Tamiko inquires whether any Board Members would like to take President position, no takers. Offers to continue serving as President; nominates self for the JBA President position, My seconds with full board approval.
- Vice President Nomination. Carolyn reminds that during last election, Jim offered to serve after Jacqueline. Miles nominates Jim Nagareda, My seconds the nomination with full board approval.
- Treasurer Nomination. Carolyn inquires whether any Board Members would like to take Treasurer position, no takers. Tamiko nominates Carolyn Kogura, Miles seconds with unanimous board approval.
JAPANTOWN BUSINESS ASSOCIATION
565 N 6th Street, Suite G - San Jose, CA 95112 - (408) 298-4303 Attachment C: Japantown BID Board Minutes for FY 2023-2024 1 - Secretary Nomination: Jim nominates Miles Rast, Car olyn seconds with
unanimous board approval.
C. JBA BID
The Japantown Business Association BID for 2023 was reviewed for City submission. Miles makes a motion to approve the BID, Carolyn seconds with unanimous board approval.
D. Japantown Farmer’s Market
The Japantown Farmer’s Market starts next week, May 7th. Dan Gordon is allowing a banner to be placed on his fence to promote the market.
Tamiko has been coordinating with vendors, receiving signed contracts, and ensuring market compliance. Tamiko provided an extensive list of new and existing vendors for the initial market and future weeks.
The Board discussed dispensing gross profits earned from the Farmer’s Market back to whomever holds the Market Manager position; for the near term, it is Tamiko, but are factoring in long-term planning for market and eventual successors. The money would compensate the manager for time coordinating the vendors and promoting the event and ensuring vendor compliance.
Richard proposed that the board should provide a minimum payment to selected Market Manager. Potential compensation to the Market Manager will be discussed in one month when accurate financials come back from the market.
Carolyn noted that she will be providing summaries for the market in the JBA Treasurer’s Report, but will not be handling the weekly finances for the market. Responsibilities of weekly finances and invoicing will be that of the Market Manager with required reporting back to JBA.
E. Corporation Yard Development
Richard: no updates.
F. Jacqueline enters meeting; Jordan exits meeting.
G. JCCsj and JNA
JCCsj - Welcoming America tour (approximately 50 people), visited Japantown with hosts including JAMsj and Jim Nagareda. JCCsj also hosted a meet-and-greet and walking tour with D3's Councilman Omar Torres and D3 staff.
Attachment C: Japantown BID Board Minutes for FY 2023-2024 2 IV. Events
H. Events
Nikkei Matsuri was very successful in attendance and for businesses. Street sweeping and cleanup was very solid, except for benches.
Miles puts forward a motion that any event held in Japantown should require the hosting party to help clean-up at night or the following day, which includes sweeping and bench cleanup. Jim seconds the motion, with unanimous board approval.
V. 2023 Planning and Priorities
I. Maintenance Projects
Punted this discussion due to meeting time restrictions and lack of update.
J. Merchandise
No updates.
V. Announcements
K. Crime and Safety Updates
An unhoused regular seen in Japantown on prior occasions, “Annie” started a fire on the Pacific Gateway property landing; a police report was filed and nearby businesses informed to keep aware.
L. Business Updates
No updates.
M. Neighborhood Updates
The JBA is receiving an award from Assemblyman Ash Kalra on May 19th for its advocacy and community service. The award is a 2022 Leader in Business Award for the AAPI Heritage Month.
Tamiko spoke with the City of San Jose about their street sweeping crews leaving a slurry of debris along neighborhood streets; CSJ responded that they've informed their staff and outside contractors to make improvements.
Tamiko also reported the voids in crosswalks on Jackson Street between 2nd and 4th Streets to the CSJ Dept of Transportation, which the City is patching.
N. Miscellaneous Updates.
The Prayer Garden Church of God is celebrating its 80th Anniversary this weekend; 6th Street will be closed from Jackson to Taylor from 4pm to midnight, celebration starts at 7pm.
The meeting was adjourned at 7:42pm.
Attachment C: Japantown BID Board Minutes for FY 2023-2024 3