Taking matters into their own hands
–maybe – downtown property and business owners might charge
themselves to get needed improvements.
Taking matters into their own hands –maybe – downtown property and business owners might charge themselves to get needed improvements.
This unusual effort is called a property-based Business Improvement District and has been used successfully by other cities to enhance the “workability” of a business shopping area. A BID could pay for extra security, sidewalk cleaning and marketing, depending on what the participants decide.
Property owners could pass the charges along to their business tenants because they have a vested interest in improvements. Residential properties and school sites are not included in the PBID.
Kristin Lowell, a consultant whose Roseville company addresses public finance problems and who was hired by the Downtown Association, told a roomful of downtown business and property owners Wednesday that how, when or if they form a PBID depended entirely upon themselves and that the improvements would increase those already in place.
“The PBID would add to city funds and services, not supplant them,” Lowell said.
PBIDs have caught on in California, she said, with 70 in the state, 30 in Los Angeles alone. In the Bay Area, the most visible PBID is that surrounding ever-popular Union Square in San Francisco. Palo Alto has a successful PBID that some Downtown Association members investigated during a tour in April.
“Morgan Hill caught onto the wind,” Lowell said.
Advantages of a PBID are that it is designed and governed by those who would pay and would expire after a five-year trial period with the chance of 10-year extensions; all decisions are in the hands of participants.
“You design it, you run it and you only pay for five years,” Lowell said.
A board of directors would handle details; property owners, business owners and a city representative would make up the board, which would be a nonprofit most likely under the umbrella of the Downtown Association.
Common BID services – that would benefit participants and their customers – include maintenance and security, the top two choices, Lowell said. Marketing and promotions, special events, parking and transportation management, district identity – highly visible signage – traffic calming and economic development – bringing in more suitable businesses. Capital improvements – building projects – could also be added.
Another benefit to a PBID, Lowell said, is that property and business owners would have a single, unified voice to negotiate for city services. It could cost, she said, about one-and-a-half cent per square foot, per month.
There are several steps to get through before a PBID can be formed. Property owners must sign a petition confirming the plan detailing which owners would be included and how much they would be charged – one half of those covered must approve, with the vote weighted by the size of the property.
Then a ballot must be approved, from the majority of ballots returned; thirdly, the City Council must approve.
Business and property owners at Wednesday’s meeting appeared willing to consider the PBID; most were waiting for more information.
