CITY OF SAN MATEO
5 5
5 2
CITY OF SAN MATEO
Agenda Report
City Hall
330 W. 20th Avenue
San Mateo CA 94403
www.cityofsanmateo.org
Agenda Number: 17 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 19, 2025
SUBJECT:
Downtown Business Improvement Area – Annual Renewal
RECOMMENDATION:
Adopt a Resolution to Levy the Annual Assessments for the Downtown Business Improvement Area for fiscal year 2025-26.
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. The DSMA provides the City Council with a report of its 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 the 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 previous meeting on May 5, 2025, the City Council accepted the DSMA’s annual report, adopted a Resolution of Intent to Levy the Annual Assessment, and set a public hearing date for May 19, 2025. At the second meeting, the City Council is asked to adopt the Resolution to levy the annual assessment (included as Attachment 1).
Annual Assessment
This is the second year the DSMA has had a full-time Executive Director, Mackenzie Jakoubek, who brings 15 years of experience in nonprofit management, customer service, and event planning. After the resignation of the previous Executive Director in 2017, Downtown business owners—with administrative support from the City—kept the organization running as volunteers. A major step forward came in 2022, when the City Council approved the first update to the business assessment formula since 2009, making contributions more equitable and enabling DSMA to expand operations. These updated assessments made it possible to hire a full-time executive director.
Since taking on her role in July 2023, Ms. Jakoubek has reenergized DSMA’s presence in the community, engaging with merchants and community partners including the City of San Mateo, the Chamber of Commerce, and B Street Boosters.
Her leadership has steadied and strengthened DSMA’s mission to champion Downtown businesses and revitalize the district.
Key Accomplishments (2024–2025):
Engaged over 74 Downtown merchants in DSMA events
CITY OF SAN MATEO
5 5
5 2
Hosted 14 pop-up community events (a 27 percent year-over-year increase) Allocated $95,000 for Downtown clean-up efforts
Increased social media engagement by 17 percent on Facebook and 41 percent on Instagram Launched the first-ever Boba Day, attracting more than 5,000 attendees Partnered with Headwest Market to pilot a holiday vendor fair on the pedestrian mall These accomplishments reflect DSMA’s renewed capacity to create meaningful experiences for residents and visitors, foster business growth, and cultivate a thriving Downtown community.
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.
For the fiscal year 2025-26, the DSMA expects to generate approximately $355,000 from DBIA assessments, aligning with its budget.
The DSMA shares an office with the Downtown Coordinator and does not utilize any City equipment or furniture. The shared space allows the DSMA to redirect savings towards programs and events. Additionally, the shared office facilitates a closer relationship between the City and the DSMA, enhancing collaboration and communication. While some stakeholders have voiced dissent in having to participate in the fees, the majority have noticed the benefits of having increased events, enhanced marketing, and vibrancy in the Downtown.
At the May 19, 2025 public hearing, Mackenzie Jakoubek, Executive Director of the DSMA will present an overview of the DSMA’s Annual Report and will be able to address any questions from the Council and public.
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 prior to the May 19, 2025 Council meeting. Should Council adopt the Resolution levying the proposed annual Downtown Business Improvement Area assessment, the Finance Department will include the 2025-26 DBIA assessments in the City business tax license fees for businesses located within the boundaries of the DBIA.
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
CITY OF SAN MATEO
5 5
5 2
All meeting noticing requirements were met. Pursuant to California Streets and Highways Code Section 36534, a notice for the public hearing was published in the San Mateo Daily Journal at least seven (7) days prior to the May 19, 2025 City Council hearing.
ATTACHMENTS
Att 1 – Proposed Resolution
Att 2 – DSMA Annual Report 2024-2025
Att 3 – Support Letters
STAFF CONTACT
Jennifer Chen, Economic Development Manager
[email protected]
(650) 522-7009