DRAFT 4/14/25_________
T-OCM-150001/79576
Council Agenda:5/6/25
Item No.: 1
RESOLUTION NO. ________
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF SUNNYVALE CONFIRMING THE DOWNTOWN
SUNNYVALE BUSINESS IMPROVEMENT DISTRICT
ANNUAL REPORT FOR FISCAL YEAR 2025/26 AND TO
LEVY AND COLLECT AN ANNUAL ASSESSMENT FOR
THE DOWNTOWN SUNNYVALE BUSINESS
IMPROVEMENT DISTRICT FOR FISCAL YEAR 2025/26
WHEREAS, on April 8, 2025, the City Council of the City of Sunnyvale (the “City”) adopted Resolution of Intention to Levy and Collect an Assessment and to Reauthorize the Downtown Sunnyvale Business Improvement District (Resolution No. 1288-25) (the “District”), to levy and collect a benefit assessment on all businesses, trades, professions, and vendors within said District, the proceeds of which shall be used for the public purposes herein described in the Parking and Business Improvement Area Law of 1989 (commencing with Section 36500) of the California Streets and Highways Code (the “Act”) and Title 3, Chapter 3.60 of the Sunnyvale Municipal Code; and
WHEREAS, the City Council conducted a public hearing on the reauthorization of the assessment, having given due notice thereof as required by law, on May 6, 2025, beginning at 7:00 p.m. at City Hall, 456 West Olive Avenue, Sunnyvale, California, and every interested person was provided an opportunity to object to or protest the report, the proposed improvements and the activities to be funded from levy of the assessments.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SUNNYVALE THAT:
1. Report. The City Council hereby confirms the Business Improvement District Annual Report for fiscal year 2025/26 (“Annual Report”) as set forth in Exhibit A, which is attached hereto.
2. Boundaries. The City Council hereby approves of the boundaries of the Business Improvement District and the benefit zones within the area as set forth in Exhibit A attached hereto.
3. Assessment. The City Council finds that the amount of the assessments has fairly and properly apportioned the cost of the improvements to each business in the District in proportion to the estimated benefits to be received by each business. The City Council hereby confirms the assessment and levies each individual assessment, as provided for in the Annual Report, for fiscal year 2025/26.
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T-OCM-150001/79576 2
Council Agenda: 5/6/25
Item No.:
4. Protest Hearing. The City Council conducted a hearing concerning the reauthorization of the business improvement district. At the conclusion of the public hearing, the City Council considered comments from the affected businesses, considered modifications in the report, and confirmed the report as originally filed or as changed by it, which constitute the levy of the assessment for the fiscal year 2025/26.
5. Method of Collection. The benefit assessment for Downtown Sunnyvale businesses shall be billed and collected by July 31, 2025. Payments will be considered late if not received on or before the due date listed on the invoice. The business will accrue late fees for every 30 days delinquent after the original due date. A 10% late penalty will be assessed in addition to the assessment amount for every 30 days payment is late. The penalty fees will be accrued for up to five months after the original due date. If payment is not received after five months, the City will forward delinquent accounts to a collection agency for further action. Once the business is assigned to the collection agency, additional fees will accrue.
Adopted by the City Council at a regular meeting held on May 6, 2025, by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
RECUSAL:
ATTEST: APPROVED:
____________________________________ ________________________________
DAVID CARNAHAN
City Clerk
LARRY KLEIN
Mayor
(SEAL)
APPROVED AS TO FORM:
_____________________________________
REBECCA L. MOON
City Attorney
ATTACHMENT 1
Febru
ary 14, 2025
To: Ho
norable Mayor and City Councilmembers
From:
Michael Johnson & The SDA/BID Board Sunnyvale Downtown Association (SDA) Subj: Sunnyvale Downtown Association's 2025/2026 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 Council for your continued SDA BID support and attendance at our events last season. The Sunnyvale Downtown Association is requesting the reauthorization of the Sunnyvale Downtown Business Improvement District for fiscal year 2025/2026. We look forward to another great year of exciting events for the community, our downtown businesses, and the City of Sunnyvale.
On Febru
ary 14, 2025, the Board of Directors approved the 2025/26 BID Budget. Attached is a copy of the SDA’s expense & revenue report for July 1, 2024, through June 30, 2025, and actual projections for the 2025/26 fiscal year.
If you
have any questions, please do not hesitate to contact me at [email protected] or (408) 480-5437. Thank you for your continued support.
Sincerely,
Mike Johnson
Executive Director of the SDA
EXHIBIT A
ATTACHMENT 1
BID Renew
al Request
for 2025/2026
What i
s 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.
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.
ATTACHMENT 1
The Mission 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 & Treasurer – Amit Rajgarhia of DishDash Restaurants, Vice Chair – Justin Breining of WholeFoods Market, Secretary – Leigh Odum of Leigh's Favorite Books, and Members At Large – Kim Kilpatrick of Lincoln Property Group, Amal Allan of City National Bank, Dr. Gary Gold of Dr. Gary Gold and Associates, and Heather Stuart of YogaSix.
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
2024/25 BID fees collected from the businesses totaled $35,000 (approximately 11% of our Income), and the City of Sunnyvale’s contributions combined with community grants of $69,375 (approximately 22% of our Income) acts as SDA foundational funding. The rest of SDA revenue comes from a combination of developers, corporate sponsorships, sales/concessions, and event participant fees.
As always stated, we cannot guarantee that we will have this same level of developers, community and/or corporate sponsorship support in any given year. So, we rely on all support channels to ensure fiscal accountability.
On February 14, 2025, the SDA Board of Directors approved the BID 2024/2025 budget.
Below w
e have included a brief overview of some significant expense areas:
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Last fi
scal year, we delivered 32 events. This fiscal year, the SDA increased the 2024/25 season to 24 events, including partnering events in 2024 and 2025. Three of these seasons’ events generated “No sales revenue” but still supported the community, the city, and downtown businesses.
Events
for 2024/2025
• 8 Events: Summer Music Series - Every Wednesday - July and August. • 9 Events: Jazz & Beyond – Every Saturday – July and August. • 1 Day Event: Tech Expo (in partnership with City of Sunnyvale) – October. No sales revenue-generated event.
• 1 Day Event: Rides for Donations (in partnership with the Sunnyvale DPS) - November.
No sales revenue-generated event.
• 1 Day Event: Holiday Tree Lighting – December 7th. No sales revenue-generated event.
• 1 Day Event: Taste of the World Wine Stroll - May 10th • 2 Events
: First Sunday Art Festival – First Sundays of May and June. *New event for 2024/2025
• 1 Event: Sunnyvale Art and Wine Festival (in partnership with Sunnyvale Chamber of Commerce) – June.
Some even
ts are not included because some of these events overlap into the next fiscal year or have not yet happened within the timeframe of the State of the Downtown. These events attract new visitors from all over the Bay Area to our vibrant and growing downtown community.
ATTACHMENT 1
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 2024/25. We thank the City of Sunnyvale, Cityline Sunnyvale, El Camino Health, Google, LinkedIn, Specialty Waste, 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.
Event-Rel
ated Financial Breakdown
Our focus in 2024/2025 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, developers, and critical local and corporate sponsorships to help.
ATTACHMENT 1
** 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 2024/25 year proved successful despite the many challenges the SDA has experienced.
The downtown area is continually building towards a better community, with new opportunities to advocate for new businesses and host events.
We delivered the Taste of the World Wine Stroll, eight Summer Music concerts, nine Jazz & Beyond concerts, the Holiday Tree Lighting Celebration, and other partnering events. Crucially, some of these events were amplified by the invaluable charitable contributions that helped create memorable experiences for all attendees. However, we faced significant hurdles, including navigating complex and time-consuming permit processes, which often strained our resources. Additionally, the purchase of a new stage, while a long-time investment, resulted in unexpected monetary deficits. These challenges were compounded by ongoing issues with the previous stage, necessitating costly repairs and creating logistical difficulties.
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. Furthermore, we recognize the vital role of community participation in shaping the downtown’s development, ensuring it reflects the needs and desires of its residents.
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. The collaborative spirit of our community, including the active involvement of residents and local organizations, strengths our resolve to navigate these changes successfully. 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.
Future
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 fostering community pride.
This year the SDA will continue to focus on connecting more current and new businesses to our website to provide additional visibility through promotions, events, and job listings. We have also been proactively reaching out to banking, financial planning, social media experts, and other ATTACHMENT 1
service providers based on business-specific requests. Recognizing the diverse needs of our members, we are committed to providing targeted resources and support. In addition, we offer a conference room and training room, providing our members with valuable spaces to meet with clients and vendors and conduct staff training. 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.
To further boost local spending and foster community engagement, we are excited to announce the implementation of a new community gift card program called “Downtown Dollars” powered by Yiftee. This initiative will encourage residents to support downtown businesses while providing a convenient gift option for companies and families alike. Furthermore, we are actively developing new and innovative events designed to bring the community together and drive increased foot traffic to downtown Sunnyvale. We are also actively forging new partnerships with a wider array of community organizations; these partnerships will enhance our ability to deliver impactful programs and initiatives that benefit all Sunnyvale residents.
While we acknowledge the temporary inconveniences associated with ongoing construction in downtown Sunnyvale, we are confident that these developments will ultimately create a more vibrant and accessible destination for residents and visitors alike. The new infrastructure and amenities will enhance the overall experience, attracting more businesses and contributing to the long-term economic vitality of our downtown area.
This vision, however, cannot be realized without the vital support of the City of Sunnyvale, community sponsors, and the Sunnyvale Downtown Association's Business Improvement District. The SDA's BID plays a crucial role in fostering a thriving downtown, providing essential services and initiatives that directly benefit businesses and the community.
Sunnyvale Downtown Association
ATTACHMENT 1
Revenue
BID Funds 35,000.00 43,500.00
City Contributions 60,000.00 100,000.00 *pending
Community Grants 9,375.00 0.00 *SDA no longer eligible
Total City Contributions 104,375.00 143,500.00
Developer Support & Funding Income 50,000.00 0.00 *July 2024 was last of SR/HS payments Chartiable Contributions 10,000.00 0.00
CA Taxes and Fees Reimbursement 1,110.00 0.00
Holiday Tree Lighting
Sponsorships 11,250.00 13,000.00
Total Holiday Tree Lighting 11,250.00 13,000.00
Jazz & Beyond
Sales 25,610.54 25,000.00 *Price increase for beverages Sponsorships 25,000.00 30,000.00
Total Jazz & Beyond 50,610.54 55,000.00
Taste of The World and Wine Stroll
Sales 20,277.51 23,000.00 *Price increase for tickets
Sponsorships 9,000.00 15,000.00
Total Taste of World and Wine Stroll 29,277.51 38,000.00 Summer Series
Sales 21,541.80 21,500.00 *Price increase for beverages Sponsorships 21,000.00 26,000.00
Vendors 3,335.00 3,000.00
Total Summer Series 45,876.80 50,500.00
Tech Expo
Sponsorships 5,000.00 0.00 *funding unknown
Total Tech Expo Sales 5,000.00 0.00
First Sunday Art Festival
Sales 0.00 0.00
Sponsorships 3,000.00 5,000.00
Vendors 10,000.00 40,000.00
Total First Sunday Art Festival Sales 13,000.00 45,000.00 Halloween Pet Parade
Sales 0.00 0.00
Sponsorships 0.00 13,000.00
Vendors 0.00 5,000.00
Total Halloween Pet Parade Sales 0.00 18,000.00
Total Revenue 320,499.85 363,000.00
Sunnyvale Downtown Association
Statement of Activity-Revenues
July 2024 - June 2025
2024/2025
Actual
2025/2026
Projected
ATTACHMENT 1
Expenditures
Administrative
Advertising/Promotional 3,000.00 3,000.00
Banking Fee 1,000.00 3,000.00
Insurance 11,284.00 13,000.00
Legal & Accounting 2,500.00 3,000.00
Operational Expenses 4,200.00 5,000.00
Rent 30,000.00 30,000.00
Taxes & Licenses 3,751.00 3,000.00
Utilities 2,400.00 3,000.00
Telephone/Internet/Website 9,800.00 13,000.00
Total Administrative 67,935.00 76,000.00
Staffing
Payroll Expenses 160,000.00 170,000.00
Payroll Taxes 15,000.00 17,000.00
Consulting 0.00 0.00
Total Staff & ED Compensations/Commission 175,000.00 187,000.00 Event Expenses
Holiday Christmas Tree Lighting Fees 7,020.00 7,000.00
Jazz & Beyond Fees 43,549.00 35,000.00
Taste of the World Fees 14,219.00 15,000.00
Summer Series Fees 42,826.00 33,000.00
Technology Expo Fees 5,000.00 0.00
First Sunday Art Festival 0.00 8,000.00
Halloween Pet Parade 0.00 24,000.00
Total Event Expenses 112,614.00 122,000.00
Total Expense 355,549.00 385,000.00
Net Income (35,049.15) (22,000.00)
This season, the SDA had to replace our previous stage due to new ADA city-permitting guidelines, which cost us approixmently $12,000.00.
Moved 4 of the 8 events back onto Washington Ave. and added 3 more events last season, our labor increased by $17,483 YOY.
Our Cityline development support also ended in July, and the revenue loss was $70,000.00.
Regarding the 2025/26 projections we are still waiting on three, possibly more sponsors over the next 30 - 45 days.
Sunnyvale Downtown Association
Statement of Activity-Expenditures
July 2024 - June 2025
ATTACHMENT 1
Downtown Su
nnyvale Business Improvement District
Proposed Improvements and Activities for Fiscal Year 2025/2026 Income
Zone A 32 Businesses paying an average annual benefit fee of $459. $14,700 Zone B 81 Businesses paying an average of $133. $10,750 Zone C 144 Businesses paying an average of $123. $17,700 Pending business licenses $1,500 $1,500
Total potential BID assessment collections $44,650
Projected assessment collections $43,500
Revenues from SDA special events and fund-raisers $219,500 Grants, event sponsorships and other misc. revenue $100,000 Total BID Program annual budget $363,000
Expenditures
Program Amount Percent
1) Commercial Marketing Program
a) Advertising and promotion (Ads, social media, etc.)
b) Theme development
c) Special ev
ents and activities
d) Visitor attraction
$123,200 32%
2) Civic Beautification and Signage Program
a) Streetscape beautification, lighting
$3,850 1%
3) Programs Administration and BID Management $257,950 67% Totals $385,000 100%
ATTACHMENT 1
FLORA VISTA AVE
WASHINGTON AVE
MC KINLEY AVE
EVELYN AVE
MURPHY AVE
IOWA AVE
SUNNYVALE
AVE
CARROLL ST
TAAFFE
ST
TAAFFE ST
CHARLES ST
MATHILDA AVE
ARIES WAY
ALTAIR WAY
FRANCES STOLSON WY
MURPHY AVE
HENDY AVEFLORENCE ST
FRANCES ST
ANGEL AVE
FRANCES ST
MURPHY
AVE
DOWNTOWN BUSINESS IMPROVEMENT
DISTRICT ZONES
0 250 500125 Feet
Zone A
Zone B
Zone C
/
ATTACHMENT 1
BID Zones & Fee Breakdown
ZONE A ZONE B ZONE C
Retailers, Restaurants, Bars $500 $300 $150
Service Businesses $300 $200 $100
Lodging $10/rm $10/rm $10/rm
Professional Services $100 $100 $100
Financial Institutions $500 $500 $500
Busine
ss type definitions:
Retail an
d Restaurant: Businesses that buy and resell goods, examples are clothing stores, shoe stores, office supplies as well as businesses that sell prepared foods and drinks.
Servi
ce Businesses: Businesses that sell services. Examples are beauty and barber shops, repair shops, most automotive-oriented businesses, entertainment businesses such as theaters, etc.
Lodgi
ng: Includes renting rooms by the day or the week.
Prof
essional Services: Includes Architects, Engineers, Attorneys, Dentists, Doctors, Accountants, Optometrists, Realtors, Insurance offices, Mortgage Brokers and most other businesses that require advanced and/or specialized licenses and/or advanced academic degrees.
Financ
ial Institutions: Includes banking and savings and loan institutions as well as credit unions, etc.
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