The City Council will join the downtown tax discussion Wednesday
night when it considers taking part in a special assessment
district to improve the area.
The City Council will join the downtown tax discussion Wednesday night when it considers taking part in a special assessment district to improve the area.
Called a property-based business district (PBID), the idea is for property owners to pay an assessment based on land size, with the money used mainly to improve the neighborhood, relieving the taxpayers of the job and punching up local business and land values.
Property owners, including the city, have been mulling over a petition to move ahead on a PBID sent by the Morgan Hill Downtown Association.
If the petition receives enough support, property owners will then vote on having a PBID. By a 1995 California law, the PBID must get approval from property owners representing more than one-half of the assessments to be paid, which means that the big owners should be on board.
MHDTA Executive Director Dan Craig said the reaction so far from property owners has been mixed and there are a couple of big hold-outs, but he has hopes that enough will sign on to what has been a winning move in other cities.
The PBID boundary includes 21 blocks with Central Avenue on the north, Hale and Del Monte avenues to the west, Bisceglia Avenue to the south and Butterfield Boulevard to the east.
The 207 parcels within the official downtown boundaries have assessments ranging from $52.44 to $6,245.43. City- and county-owned parcels in the district also would be assessed.
A successful PBID would collect a maximum of $200,445 in the first year; $50,000 would be used for marketing, $5,000 for Monterey Road maintenance, $135,900 for PBID management and advocacy and $9,545 for a reserve fund. Besides providing revenue for customer-drawing upgrades and the chance to create a critical mass of unique retail shops, restaurants and entertainment venues able to compete with the more common appeal of chain stores and eateries, a PBID allows the property owners to speak with a single voice, much like businesses in a mall do, according to Craig.
The assessment would be for five years.
Property owners also received a survey of preferences on spending the money: Public safety, maintenance, beautification, traffic calming and parking management, special events and marketing the area to customers and new business.
PBID funds would also be used to continue the Downtown Association and pay Craig’s salary. The council, which has subsidized the DTA for three years, wants it to become self-supporting. The DTA members include both business and property owners.
Council on Wednesday can consider the petition to start the PBID if there are enough signatures and say they intend to begin special assessment proceedings. Or, if the petition lacks enough “yes” votes, council could ask the MHDTA to collect more signatures or ask City Manager Ed Tewes to move ahead if and when the required signature threshold is met.
City Council and the Redevelopment Agency meet at 7 p.m. Wednesday in City Hall Chambers, 17555 Peak Ave. Details: www.morganhill.ca.gov or 779-7271. Council meetings are broadcast live on cable access channel 17.
