Fe
bruary 14, 2024
TO: Mayor and City Councilmembers
From: Michael Johnson & The SDA/BID Board Sunnyvale Downtown Associa�on (SDA) Subj: Sunnyvale Downtown Associa�on's 2024/2025 BID Renewal Request To the Mayor and City Councilmembers of Sunnyvale, First, I’d like to thank the City of Sunnyvale, the Mayor, and the City Council for your con�nued SDA BID support, and atendance of our events last season. The Sunnyvale Downtown Associa�on is reques�ng the reauthoriza�on of the Sunnyvale Downtown Business Improvement District for fiscal year 2024/2025. We look forward to another great year of exci�ng events for the community, our downtown businesses, and the City of Sunnyvale.
On February 14, 2024, the Board of Directors approved the 2024/25 BID Budget. Atached is a copy of the SDA’s expense & revenue report for July 1, 2023, through June 30, 2024, actuals along with projec�ons for the 2024/25 fiscal year.
If you have any ques�ons, please do not hesitate to contact me at [email protected] or (408) 480-5437. Thank you for your con�nued support.
Sincerely,
Mike Johnson
Execu�ve Director of the SDA
Attachment 1
BID Re
newal Request
for
2024/2025
What is a BID?
A BID (Business Improvement District, authorized by State of California law) provides funding for promoting and improving a specific area. All business license holders inside the said district are self-assessed with an annual fee based on anticipated benefits they receive from the BID.
The BID is reauthorized yearly by the City Council at the request of the businesses’ Board of Directors. A BID is used by over 200 business areas in California, including Mountain View, Palo Alto, Santa Clara, Morgan Hill, and San Jose. The BID has legal requirements to be reauthorized. Specifically, the City Council must approve the Annual Budget and adopt a Resolution of Intent (ROI) to reauthorize the BID for another year. Once the ROI is adopted, a public hearing must be held during a Council meeting.
Each year after the city has reauthorized the BID, businesses receive an invoice from the city finance department for BID fees. The city collects the fees annually, and businesses are invoiced at the beginning of June for the next fiscal year. Once received, funds can only be used for projects within the BID boundaries. The BID maintains complete control of all BID funds collected.
The formula for defining our BID assessment amount is as follows: the Sunnyvale Downtown Association (SDA) Board considers the businesses’ type, size, and location. Then, it selects the most equitable formula for every business. Typically, BID assessments are included as a separate charge from the business license tax and are billed to every business within the BID boundaries.
Assessments are levied on businesses based on relative benefits from annual activities. All assessment funds collected by the City are returned to the BID through annual contract agreements. The city does collect a fee for administrative costs associated with this service. The price is reviewed and adjusted annually as needed.
By state law, we use the BID funds to support community business activities, promote public events, decorate public places, and provide entertainment within the BID. In addition, BID funds include advertising, marketing materials, digital guides, operational expenditures, websites, e- letters, street/holiday lighting, and events.
Attachment 1
Our
BID fees are a self-imposed tax on the downtown businesses, outside of paying their standard fees, taxes, and license fees associated with owning and operating a business in our downtown district.
The M
ission of the Sunnyvale Downtown Association (SDA)
SDA is a non-profit membership-based organization whose mission is to promote, advocate and enhance the vitality of downtown Sunnyvale. The SDA is funded by BID fees, city grants, sponsorships, and revenue-producing events.
The current SDA Board of Directors includes Chair – Dr. Gary Gold of Dr. Gary Gold & Associates, Secretary – Leigh Odum of Leigh's Favorite Books, Treasurer - Amit Rajgarhia of Dish Dash, and Members At Large –Katie Voong of Mayan Kitchen/K’Tea Cafe, Justin Breining of Whole Foods Market, Amal Allan of City National Bank and Salvatore Foresta of Sweet Sicily.
The SDA also serves as the voice of downtown Sunnyvale by:
• Advocating for policies, programs, and events that support the economic growth of the downtown.
• Acting as the downtown marketing arm, voice, and ambassador for the City of Sunnyvale.
• Producing attractive events for the community.
• Promoting downtown as a premier venue for other groups to produce events. • Working with other community-based organizations that share downtown Sunnyvale's growth and continued vitality.
Budget
2023/24 BID fees collected from the businesses totaled $35,000 (approximately 9.8% of our Income), and the City of Sunnyvale’s contributions combined with community grants of $67,500 (19% of our Income) acts as SDA foundational funding. The rest of SDA revenue comes from a combination of developer support, corporate sponsorships, sales/concessions, and event participant fees.
As always stated, we cannot guarantee that we will have this same level of developer, community and/or corporate sponsorship support in any given year. So, we rely on all support channels to ensure fiscal accountability.
On February 14, 2024, the SDA Board of Directors approved the BID 2023/2024 budget.
Attachment 1
Below we have included a brief overview of some significant expense areas:
Last fiscal year, we delivered twenty-six events. This fiscal year, the SDA increased the 2023/24 season to thirty-two events, including partnering events in 2023. Eighteen of these seasons’ events generated “No sales revenue” and supporting the community, the city, and downtown businesses.
Even
ts for 2023/2024
• 16 Events: Dining and Dancing - Every Wednesday & Thursday - May and June. No sales revenue is generated at these events. *New event for 2023/2024 • 1 Day Event: Taste of the World Wine Stroll - May 11th • 7 Ev
ents: Summer Music Series - Every Wednesday - July and August. • 7 Events: Jazz & Beyond – Every Saturday – July and August. • 1 Day Event: Rides for Donations (in partnership with the Sunnyvale DPS) - November.
No sales revenue is generated at this event.
• 1-Day Event: Holiday Tree Lighting. No sales revenue-generating event.
These events attract new visitors from all over the Bay Area to our vibrant and growing downtown community.
Attachment 1
2023/ 2024 2024 / 2025
Actual Projected
INCOME
BIID Funds 35,000.00 43,500.00
Citv Contributions 60,000.00 60,000.00
Communitv Grants 7,500.00 10,000.00
Developer Support 120,000.00 55,000.00
Events Revenue (Sponsorsh ips and Sales) 133,331.33 166,500.00 TOTAL INCOME 355 ,831 .33 335,000 .00
EXPENSES
Personnel Related Expenses
Office/ Genereal Admin Expenses
Event Expenses
TOTAL EXPENSE 350,986.18 360,250.00
TOTAL PROFIT/ LOSS 4,845 .15 -25,250.00
Event Sponsorships & City Contribution
We are grateful for continued support from the city and sponsors who help keep our SDA events growing and serving the community in 2023/24. We thank the City of Sunnyvale, Cityline Sunnyvale, Minkoff Group, El Camino Health, Google, LinkedIn, Specialty Waste, PNC Bank, Murphy Square, Silicon Valley Clean Energy and StarOne Credit Union for continuing their support.
As we’ve always stated, more than ever, the SDA and our downtown businesses need city and other sponsorship support for these events. Due to the current economic uncertainty ahead, supply cost increases, ongoing fixed costs, and annual wage increases, these events allow business owners to weather these challenges during this unprecedented period.
Each year in January, the SDA evaluates what sponsorship support we have coming in. We always plan months in advance to ensure that we can deliver the events the SDA puts on annually. However, it is always hard to predict what our budget will look like six months before the coming fiscal year.
Even
t-Related Financial Breakdown
Our focus in 2023/2024 has continued to address our SDA businesses’ needs amidst the economic challenges that have impacted our downtown district. We continued working through the many financial challenges despite corporate sponsorship reductions and were unable to host events throughout the downtown due to construction. Over the last couple of years, we were fortunate to have received support from community grants, annual City support, developer support, and critical local and corporate sponsorships to help.
Attachment 1
2023 / 2024 2024 / 2025
INCOME Actual
Holiday Tree Li
Jazz & Beyond 47,000.00
Taste of World and Wine Strol l 28,500 .00 38,000.00
Music on Murphy 7,500 .00 13,000.00
44,652 .00 50,500.00
0 5,000.00
133,331.33 166,500 .00
I EXPENSES I
Holiday Christmas Tree Lighting
Fees 9,500 .00 7,000.00
Jazz & Beyond Fees 36,252 .85 35,000.00
Taste of the World Fees 18,920 .67 15,000.00
Music on Murphy Expenses 3,766 .87 5,000.00
Stronger Together Fees 0 0
Summer Series Fees 28,467.44 27,500.00
Technology Expo Fees 0 5,000.00
[TOTAL EVENT EXPENSES 96,907.83 94,500 .00
** The event expenses only reflect general marketing and promotional material, day of staffing, wine, beer, performers, and some equipment. It does not include pre-event preparation costs for staff labor to follow up with vendors, host location coordination, design time for marketing products, booking bands, volunteer coordination, poster/flyer design, social media outreach & website, ticket sales, beverage sales, and various other tasks required to deliver the SDA events annually.
Overview
The 2023/24 year proved successful despite the many challenges the SDA has experienced.
We invested in better financial strategies, management tools, and marketing solutions early in the year. The downtown is continually building towards a better community, with new opportunities to advocate for new businesses and host events.
We delivered sixteen Dining and Dancing on Murphy events, the Taste of the World Wine Stroll, seven Summer Music concerts, seven Jazz & Beyond concerts, the Annual Holiday Tree Lighting Celebration, and other partnering events. This year, our Dining and Dancing events have enhanced the dining experience, while new partnerships with other community events have expanded our downtown footprint.
The SDA continues to work with Cityline Sunnyvale and other developers, property managers, and the City of Sunnyvale to promote cohesion between the existing businesses in Sunnyvale and the expansion of downtown Sunnyvale.
We also want to thank all the downtown Sunnyvale businesses that make this possible with their continued participation and support. We appreciate the sacrifices our BID members have endured with the changes in our downtown's new developments. We are excited and optimistic about the future and its possibilities. Downtown Sunnyvale continues to expand with many new commercial and retail businesses, and entertainment destinations.
Futur
e
Keeping the BID fee assessment in conjunction with the city’s contribution provides the foundational funding for our organization. The SDA’s goal is to continue producing quality events and promoting downtown Sunnyvale as a great place to shop, dine, work, and live. In addition, these events attract new visitors to our vibrant and growing downtown with community pride.
This year the SDA will continue to focus on connecting more current and new businesses to our website to provide additional visibility with promotions, events, and job listings. We have also been reaching out to banking, financial planning, IT Services, social media experts, and other services based on business-specific requests. In addition, we offer a conference room and training room so our members can have an area to meet with clients and vendors and train their staff. The new construction is ongoing for the next few years; many new businesses are looking for direction and support in their new community; the SDA is here to assist them in navigating our city and downtown.
Attachment 1
We appreciate the continued support of the SDA’s BID, and we do not take the support for granted. The SDA continues to be good stewards of all funds, grants, and sponsorships we receive and considers this partnership with the common goals for a vibrant downtown.
Michael Johnson
Executive Director
Sunnyvale Downtown Association
Attachment 1
2023/2024
Actual
2024/2025
Projected
BID Funds 35,000.00 43,500.00
City Contributions 60,000.00 60,000.00
Community Grants 7,500.00 10,000.00
Total City Contributions 102,500.00 113,500.00
Developer Support & Funding Income 120,000.00 55,000.00 Holiday Tree Lighting
Sponsorships 13,000.00 13,000.00
Total Holiday Tree Lighting 13,000.00 13,000.00
Jazz & Beyond
Sales 17,679.33 21,000.00 *Price increase for beverages Sponsorships 22,000.00 26,000.00
Total Jazz & Beyond 39,679.33 47,000.00
Taste of The World and Wine Stroll
Sales 18,000.00 23,000.00 *Price increase for tickets
Sponsorships 10,500.00 15,000.00
Total Taste of World and Wine Stroll 28,500.00 38,000.00 Music on Murphy
Sponsorships 7,500.00 13,000.00 *changed event name
Total Music on Murphy 7,500.00 13,000.00
Summer Series
Sales 17,652.00 21,500.00 *Price increase for beverages Sponsorships 25,000.00 26,000.00
Vendors 2,000.00 3,000.00
Total Summer Series 44,652.00 50,500.00
Tech Expo
Sponsorships 0.00 5,000.00
Total Tech Expo Sales 0.00 5,000.00
Total Revenue 355,831.33 335,000.00
Revenue
Sunnyvale Downtown Association
Statement of Activity
July 2023 - June 2024
Attachment 1
2023/2024
Actual
2024/2025
Projected
Administrative
Advertising/Promotional 10,000.00 10,000.00
Banking Fee 27.30 300.00
Insurance 2,684.00 3,000.00
Legal & Accounting 4,015.00 4,050.00
Operational Expenses 814.05 900.00
Rent 30,000.00 30,000.00
Taxes & Licenses 2,649.00 3,000.00
Utilities 1,800.00 2,000.00
Telephone/Internet/Website 10,000.00 13,000.00
Total Administrative 61,989.35 66,250.00
Staffing
Payroll Expenses 175,000.00 182,000.00
Payroll Taxes 13,500.00 15,500.00
Consulting 3,589.00 2,000.00
Total Staff & ED Compensations/Commission 192,089.00 199,500.00 Event Expenses
Holiday Christmas Tree Lighting Fees 9,500.00 7,000.00
Jazz & Beyond Fees 36,252.85 35,000.00
Taste of the World Fees 18,920.67 15,000.00
Music on Murphy Expenses 3,766.87 5,000.00 *changed event name Stronger Together Fees 0.00 0.00 *ended promo
Summer Series Fees 28,467.44 27,500.00
Technology Expo Fees 0.00 5,000.00
Total Event Expenses 96,907.83 94,500.00
Total Expense 350,986.18 360,250.00
Net Income 4,845.15 (25,250.00)
Sunnyvale Downtown Association
Statement of Activity
July 2023 - June 2024
Expenditures
Attachment 1
Downtow
n Sunnyvale Business Improvement District
Proposed Improvements and Activities for Fiscal Year 2024/2025 Income
Zone A 35 Businesses paying an average annual benefit fee of $488. $17,100 Zone B 46 Businesses paying an average of $165. $7,600
Zone C 149 Businesses paying an average of $114. $17,050 Total potential BID assessment collections $41,750
Projected assessment collections $43,500
Revenues from SDA special events and fund-raisers $168,500 Grants, event sponsorships and other misc. revenue $123,000 Total BID Program annual budget $335,000
Expenditures
Program Amount Percent
1) Commercial Marketing Program
a) Advertising and promotion (Ads, social media, etc.)
b) Theme development
c) Special events and activities
d) Visitor attraction
$137,350 41%
2) Civic Beautification and Signage Program
a) Streetscape beautification, lighting
$3,350 1%
3) Programs Administration and BID Management $194,300 58% Totals $335,000 100%
Attachment 1
IOWA
EVELYN
MATHILDA
TAAFFE
SUNNYVALE
CHARLES
MURPHYWASHINGTON
CARROLL
HENDY
FLORENCE
ARIES OLSON
MCKINLEY
MC KINLEY
ANGEL
FRANCES
FLORA VISTA
WAVERLY
ALTAIR
BAYVIEW
WB EVELYN TO NB MATHILDA
ANAHEIM
SB MATHILDA TO WB EVELYN
POLARIS
BOOKER
MATHILDA
MC KINLEY
MURPHY
TAAFFE
MURPHY
FRANCES
FRANCES
IOWA
EVELYN
MATHILDA
TAAFFE
SUNNYVALE
CHARLES
MURPHYWASHINGTON
CARROLL
HENDY
FLORENCE
ARIES OLSON
MCKINLEY
MC KINLEY
ANGEL
FRANCES
FLORA VISTA
WAVERLY
ALTAIR
BAYVIEW
WB EVELYN TO NB MATHILDA
ANAHEIM
SB MATHILDA TO WB EVELYN
POLARIS
BOOKER
MATHILDA
MC KINLEY
MURPHY
TAAFFE
MURPHY
FRANCES
FRANCES
0 260 520130 Feet
Legend
ZONE A
ZONE B
ZONE C
DOWNTOWN BUSINESS IMPROVEMENT
DISTRICT ZONES
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Attachment 1, Page 11 of 11