TO: HONORABLE MAYOR
AND CITY COUNCIL
FROM: Lee Wilcox
SUBJECT: See Below DATE: May 27, 2025
Approved
Date:
6/2/25
COUNCIL DISTRICT: 7
SUBJECT: Public Hearing on the Monterey Corridor Business Improvement District and Levy of Assessments for Fiscal Year 2025-2026
RECOMMENDATION
Conduct a Public Hearing and adopt a resolution approving the Monterey Corridor Business Improvement District Budget Report for Fiscal Year 2025-2026 as filed or modified by City Council and levying the Monterey Corridor Business Improvement District assessments for Fiscal Year 2025-2026.
SUMMARY AND OUTCOME
Approval of this action will result in the levy of assessments for the upcoming fiscal year of the Monterey Corridor Business Improvement District (Monterey Corridor BID).
BACKGROUND
The Monterey Corridor BID was established by City Council in 2024 pursuant to the California Parking and Business Improvement Area Law of 1989 (BID Law) to promote the economic revitalization and physical maintenance of the Monterey business corridor as shown in Attachment A. In 2024, City Council appointed the Monterey Corridor Business Association as the Advisory Board for the Monterey Corridor BID, to advise City Council on the levy of assessments in the Monterey Corridor BID and manage the expenditure of revenues derived from the assessments for the benefit of the Monterey Corridor BID.
Pursuant to BID Law, an annual public hearing is required in order to approve an annual budget report and levy the annual assessments. On June 3, 2025, the City Council preliminarily approved the Fiscal Year (FY) 2025-2026 Budget Report as shown in COUNCIL AGENDA: 6/17/25
FILE: 25-720
ITEM: 8.3
HONORABLE MAYOR AND CITY COUNCIL
May 27, 2025
Subject: Public Hearing on the Monterey Corridor Business Improvement District and Levy of Assessments for Fiscal Year 2025-2026
Attachment B, adopted a resolution of intention to levy the annual assessments for FY 2025-2026 for the Monterey Corridor BID, and set June 17, 2025, at 1:30 p.m. as the date and time for the required public hearing on the levy of the proposed FY 2025-2026 assessments. In accordance with BID Law, the City Clerk published the required legal notice regarding the levy of assessments for FY 2025-2026.
ANALYSIS
Under BID Law, when a public hearing is held to levy assessments of a BID, the City Council shall hear and consider all protests against the continued authorization of the BID, the district boundaries, the assessments, the furnishing of specified improvements or activities. Protests may be made orally or in writing. Written protests must be filed with the City Clerk at or before the time fixed for the public hearing. BID Law requires that the proceedings shall terminate if the protests made in writing against the continued authorization of the BID are from businesses or property owners in the proposed district that will pay a majority of the assessed charges. If the majority protest is only against the furnishing of a specified type or types of improvement or activity within the area, those improvements or activities shall be eliminated.
As required by the BID 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 by the Monterey Corridor BID in FY 2025-2026, and an estimate of the cost of providing the improvements and activities. The Advisory Board has recommended no change in the Monterey Corridor BID boundaries or the method and basis for levying assessments. Therefore, the proposed assessments in the Monterey Corridor BID for FY 2025-2026, described in the Budget Report, are the same as the assessments for FY 2024-2025.
During the course, or upon conclusion of the public hearing, City Council may order changes in any of the matters provided in the Advisory Board’s Budget Report. At the conclusion of the public hearing, City Council may adopt a resolution confirming the Budget Report as originally filed or as modified by City Council. The adoption of the resolution constitutes the levy of the assessment for the FY 2025-2026.
EVALUATION AND FOLLOW-UP
The Advisory Board will come before City Council next year to present a report that proposes a budget for the FY 2026-2027.
HONORABLE MAYOR AND CITY COUNCIL
May 27, 2025
Subject: Public Hearing on the Monterey Corridor Business Improvement District and Levy of Assessments for Fiscal Year 2025-2026
COST SUMMARY/IMPLICATIONS
The Monterey Corridor BID assessments are restricted for use exclusively by the Monterey Corridor BID. It is anticipated that a healthy Monterey Corridor BID will encourage the growth of the retail community, which indirectly generates business tax and sales tax for the City. The FY 2025-2026 Operating Budget, subject to City Council approval, includes projected assessment revenue and corresponding expenses totaling $252,000, as detailed in the Source and Use Statement for the Business Improvement District Fund (351). The Proposed Operating Budget includes an administration fee to be retained by the City equal to one percent of the amount of assessment revenue estimated at $2,520 in the FY 2025-2026. The forecast net income to be paid to the Advisory Board in the FY 2025-2026 is $249,480.
COORDINATION
This memorandum has been coordinated with the City Attorney's Office, City Clerk's Office, City Manager's Budget Office, Finance Department, the Planning, Building, and Code Enforcement Department, and the Monterey Corridor Business Association.
PUBLIC OUTREACH
In accordance with the California Parking and Business Improvement Area Law, the City Clerk has published the required legal notice with regard to the levy of assessments for FY 2025-2026. The budget for FY 2025-2026 was reviewed and approved by the Advisory Board on May 8, 2025 as shown in Attachment C.
This memorandum will be posted on the City’s website for the June 17, 2025 City Council meeting agenda.
COMMISSION RECOMMENDATION AND INPUT
No commission recommendation or input is associated with this action.
CEQA
Not a Project, File No PP17-004, Government Funding Mechanism or Fiscal Activity with no commitment to a specific project which may result in a potentially significant impact on the environment.
HONORABLE MAYOR AND CITY COUNCIL
May 27, 2025
Subject: Public Hearing on the Monterey Corridor Business Improvement District and Levy of Assessments for Fiscal Year 2025-2026
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.
Lee Wilcox
Assistant City Manager
Acting Director, City Manager’s Office
of Economic Development and
Cultural Affairs
The principal author of this memorandum is Jessica Munoz, Senior Executive Analyst, City Manager’s Office of Economic Development and Cultural Affairs, and Victor Farlie, Assistant to the City Manager, City Manager’s Office of Economic Development and Cultural Affairs. For questions, please contact Jessica Munoz, Senior Executive Analyst, at [email protected] or (408) 659-0202.
ATTACHMENTS
A: Monterey Corridor BID Boundary Map for Fiscal Year 2025-2026 B: Monterey Corridor Budget Report for Fiscal Year 2025-2026 C: Monterey Corridor Business Association Board Minutes for Fiscal Year 2025-2026 Association Boundary Map
MCBA Annual Report
The Monterey Corridor Business Association consists of
1,500 business within the City of San Jose, Council District 7.
Attachment A: Monterey Corridor BID Boundary Map for Fiscal Year 2025-2026 Association Boundary Map
MCBA Annual Report
395
Attachment A: Monterey Corridor BID Boundary Map for Fiscal Year 2025-2026 Association Boundary Map
MCBA Annual Report
Attachment A
FY 2024-2025
There was $7,000 donated from the Business Owners in the district that was spent on operational costs (i.e. insurance and state, non-profit filings, board meeting lunches). No additional BID funding was collected, expended.
OEDCA provided $30,000 for marketing and beautification in which $6,000 was used to build the website (www.mcbasj.com) and provide social media services; $24,000 was used for two murals in the district.
F
Y 2025-2026
The budget for the upcoming fiscal year will be $252,000 and will be predominately focused on the following services:
Clean and Safe:
hiring Downtown Streets Team at $65,000 to reduce blight and increase safety throughout the district.
purchase of security tower cameras and fixed cameras on buildings that face public spaces that have historically had issues.
Marketing and Branding: these expenses will be for operations of social media and hiring of consultant to implement.
Assessments are $250 per business tax license.
MCBA Annual Report
0 " /
Attachment B
Beautification
One mural was created by Together We
Create (Wispr) that reduces blight and
adds context to the area. Another
mural is slated to be created on the
Glencore Recycle building on the
northend of the wall, which graffiti is
rampant and blight is high.
Website and Social Media
A new website was created that has
updated information about the board
members, the business association and
Business Improvement District, such as
a FAQ and budget. This is important for
existing and new members as this will
have updated information about the
association (www.mcbasj.com).
The instagram page was created
@montereycorridorba and has content
related to board meetings and projects
for the public to view.
Board meetings
Monthly board meetings have met
quorum every month which is a strong
sign of engagement. Discussions
usually involve the Councilmember,
PD, OEDCA, and business members.
This allows for constant
communication and feedback between
partners and members.
MCBA Annual Report
Highlights
Attachment B
Sean Panchal (Board Chair) - Business and property owner Dave Lujan (Secretary) - Stucco Supply
Beth Seibert (Co-Treasurer) - Property owner
Melissa Volau (Co-Treasurer) - Little Orchard Self Storage Mike McGrath, board member - Graniterock
Chad Erickson, board member - Angelicakes
Caroline Niemiec, board member - Premier Recycle
Eire Stewart, board member - JP Dinapoli Companies
Nicole Youngblood, board member - Western Site Services MCBA Annual Report
Board of Directors
Attachment B
Monterey Corridor Business Association (MCBA) Meeting
Thursday, May 8, 2025
12 p.m. - 1:30 p.m.
Zoom (click here)
Agenda
I. Roll call
Sean Panchal (chair)- present
Beth Seibert (co-treasurer)- present
Melissa Volau (co-treasurer)- present
Dave Lujan (secretary)- present
Caroline Niemiec- absent
Mike McGrath- present
Eire Stewart- absent
Nicole Youngblood- absent
Chad Erickson-absent
II. Introductions
III. Updates
A. Mayor’s Office
B. Council District 7- encourage participation at the state of the city event, May 17th C. SJPD- absent
D. OED- absent
E. Small Business Ally Program- continue push for the restaurant streamline program and ADA complaint program; Juan clarified Annes’s question regarding a recent mailer from the county about an environmental impact review, noting that this matter will need to be addressed directly with the County. He also responded to Anne’s inquiry about business owners installing mural on personal property, explaining that while no permit is required, the mural design must comply with the city’s guidelines (available on the city’s website) F. BeautifySJ- The team noted ongoing issues with delayed pickup of dumped items, reported by board members
G. OLIVE Program- allows businesses owners to report RVs and lived in vehicles through 311 app. The enforcement zones change location regularly, concentrating enforcement effort in one area while making sure coverage at other hotspots.
IV. Old Business
A. Glencore Mural update
Patrick Bielejec made a note that the warmer and sunnier weather meant that the Glencore mural could be started potentially in May. The Attachment C - Monterey Corridor Business Association Board Minutes for Fiscal Year 2025-2026 Community Strong Strategies team will continue to identify additional sources of funding for the extended version of the mural.
B. Martha’s Kitchen Debrief (Sean)
Sean, Beth, and Dave gave a comprehensive overview of the meeting with the CEO of Martha’s Kitchen. There is concern from the group about the lack of follow-up. Dave will send an email to the CEO, Bill Lee, to continue establishing communications.
V. New business
A. Business Improvement District
1. Annual report and filings with City
2. Vote: Adopt 2025/2026 budget: $252,000 - https://www.mcbasj.com/bid Motion: Beth Seibert
Second: Dave Lujan
In Favor: 5
Oppose: 0
Result: Approved
B. Advocacy
1. Just Breakfast incident
Ken and Jane Wall shared their experience with one of the auto repair shops near them. Starting six months ago, cars are often parked tightly along the street, including in the bike lane. This lane blocking for bike riders is a safety concern. Ken and Jane have asked for assistance from the business association and shared a positive update; SJPD and Parking Enforcement have been working with them.
C. Cameras
Beth explained to the group that once more funds are collected, a budget can be created and refined for the amount of units and camera types.
D. Meeting with Home First May 21 @ 11:30am
VI. Reports
A. President’s Report (Sean)
B. Treasurer's Report (Beth/Melissa)
C. Secretary’s Report (Dave)
VII. Consent items
A. Approve April 17, 2025 minutes
Vote: Approving the April Minutes
Motion: Beth Seibert
Second: Caroline Niemiec
In Favor: 5
Oppose: 0
Result: Approved
VIII. Next board meeting (Second Thurs of the Month @ noon):
A. Date – June 12, 2025 (zoom)
IX. Any other business/topics
X. Adjournment