CITY OF SAN MATEO
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CITY OF SAN MATEO
Agenda Report
City Hall
330 W. 20th Avenue
San Mateo CA 94403
www.cityofsanmateo.org
Agenda Number: 7 Section Name: {{section.name}} Account Number: 14-1311 File ID: {{item.tracking_number}} TO: City Council
FROM: Alex Khojikian, City Manager
PREPARED BY: City Manager's Office
MEETING DATE: May 5, 2025
SUBJECT:
Downtown Business Improvement Area – Approval
RECOMMENDATION:
Adopt a Resolution of Intent to Levy the Annual Assessments for the Downtown Business Improvement Area for fiscal year 2025-26; accept the fiscal year 2024-25 Downtown San Mateo Association Annual Report; and set a public hearing for the May 19, 2025, City Council meeting for the annual levy.
BACKGROUND:
The Downtown Business Improvement Area (DBIA) was formed in 1986 for the purpose of improving Downtown San Mateo and promoting businesses within the area. The Downtown San Mateo Association (DSMA) has served as the DBIA administrator since its formation. Annually, the DSMA provides the City Council with a report of activities and expenditures for the previous fiscal year and proposes an assessment schedule for the upcoming fiscal year, as required by the California Street and Highways Code Section 36533.
In April 2025, the DSMA submitted its annual report, incorporating a summary of fiscal year 2024-25 activities and proposed program and budget for fiscal year 2025-26 (included as Attachment 2). Before City Council may act on the DSMA’s request to renew the DBIA assessments, the request must be considered at two City Council meetings. At the first meeting on May 5, 2025, the City Council is asked to accept the DSMA’s annual report and adopt a Resolution of Intent to Levy the Annual Assessment (included as Attachment 1). At the second meeting on May 19, 2025, the City Council conducts a public hearing on the proposed assessment schedule and considers adoption.
The DSMA continues to strengthen its role as a champion for Downtown businesses and the community. In 2022, the City Council approved a modification to the business assessments—the first since 2009. The updated assessment formula improved equity among Downtown businesses and enabled the DSMA to expand its operations and better support the district. With increased assessments, the DSMA was able to hire Executive Director Mackenzie Jakoubek in July 2023. With an Executive Director in place, the DSMA was able to better collaborate with the City Manager’s Office, Parks and Recreation, Self-Help for the Elderly, B Street Boosters, the San Mateo Chamber of Commerce, and Downtown businesses to bring more energy, events, and resources to Downtown.
Key Accomplishments, 2024–2025:
•More than 74 Downtown merchants directly participated in DSMA events •14 pop-up community events (a 27 percent increase year over year) •$95K allocated for Downtown clean-up efforts
•Social media activity increased by 17 percent on Facebook and 41 percent on Instagram •Hosted the first-ever Boba Day, drawing over 5,000 attendees
CITY OF SAN MATEO
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•Restarted a Lunar New Year celebration, attracting hundreds of visitors to downtown businesses •Launched Headwest Marketplace, a monthly event held on the pedestrian mall Financial Overview:
The DSMA anticipates generating approximately $355,000 in DBIA assessments, sponsorships, and partnership funds for FY 2025–26, aligning with its projected expenditures. While payroll is expected to remain flat, modest cost increases are anticipated for Downtown cleanup, marketing, professional services, banners, and events due to inflation and rising costs.
Looking ahead, the DSMA is exploring opportunities to expand revenue in FY 2026–27. Additionally, the DSMA maintains a money market account with $240,000 in reserves, set aside for emergency use.
Next Steps
After the Council adopts the Resolution of Intent to Levy the Annual Assessments (Attachment 1), a notice will be published in the newspaper announcing the public hearing for no less than seven days prior to the meeting on May 19, 2025.
According to Streets and Highways Code Section 36535, if written protests are submitted by business owners in the DBIA, and these protests collectively represent 50 percent or more of the proposed assessments, no additional actions to impose the assessments will occur for a period of one year. Any written protests received will be provided at the May 19, 2025 Council meeting.
At the May 19th public hearing, Mackenzie Jakoubek, Executive Director of the DSMA, will provide an overview of DSMA’s accomplishments and will be available to address any questions from the City Council and the public prior to Council consideration of levying the assessment for the next fiscal year.
BUDGET IMPACT:
The levying of the annual DBIA assessment does not have an impact on the General Fund.
ENVIRONMENTAL DETERMINATION:
This item is not a project subject to CEQA, because it is an organizational or administrative activity that will not result in direct or indirect physical changes in the environment. (CEQA Guidelines Section 15378(b)(5).)
NOTICE PROVIDED
All meeting noticing requirements were met. As required by the California Streets and Highways Code Section 36534, a notice shall be provided in the local newspaper no less than seven (7) days prior to the May 19, 2025 City Council public hearing.
ATTACHMENTS
Att 1 – Proposed Resolution of Intent
Att 2 – DSMA Annual Report for Fiscal Year 2024-25
STAFF CONTACT
Jennifer Chen, Economic Development Manager
[email protected]
(650) 522-7009