By now everyone who owns property in an established downtown
area has received a packet from the Morgan Hill Downtown
Association extolling the virtues of a PBID, a property-based
business improvement district.
By now everyone who owns property in an established downtown area has received a packet from the Morgan Hill Downtown Association extolling the virtues of a PBID, a property-based business improvement district.
In a PBID, property owners and often their tenants pay an assessment used only to improve the neighborhood; relieving the taxpayers of the job.
DTA members fastened onto the PBID idea when they saw one in action during a tour of downtown Palo Alto in April 2004.
Much of the charm of that area – flowers, benches, decorative metal trash cans and corralled news racks – were paid for with PBID funds, not taxpayer money. Regular sidewalk cleaning and trash removal – a must in making the area pleasant – plus immediate graffiti removal and joint marketing also are PBID efforts.
A PBID in Morgan Hill would 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, the same from coast to coast, according to a pamphlet with which the steering committee said it hopes to persuade its voters.
More importantly, the steering committee explained in the packet, a PBID allows the property owners to speak with a single voice, much like businesses in a mall do.
Property owner and steering committee member Gary Walton said he is supporting the downtown PBID for just that reason.
“(It’s) the most effective tool to level the playing field with the malls and shopping centers,” Walton said.
He owns a building at 17085 Monterey Road and would have an annual assessment of $2,754.15. Businessman Brad Jones sees a PBID as a way to protect them from out-of-town behemoths.
“It is extremely important – given the current retail environment – that the downtown property owners and tenants work together as a team to reach common goals,” Jones said.
The packet includes a preliminary petition to form a PBID including the potential assessment: There are 207 parcels with assessments ranging from $52.44 to $6,245.43. City and county-owned parcels in the district would also be assessed.
The answers are due back by April 30. If the petition receives enough support, property owners will then vote.
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.
The packet also includes an owner survey of preferences on spending the money: Public safety, maintenance, beautification, traffic calming and parking management, signal, special events and marketing the area to customers and new business. The assessment endures for five years and would be used only for business district improvements and administered by the Downtown Association PBID.
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.
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 district is divided in two parts: premium – parcels between Main, Del Monte, Dunne and the railroad tracks – and standard – everything else. Monterey Road properties would be assessed the higher rate because Monterey would receive the most benefit from PBID spending though side street properties would benefit from marketing and easier parking.
Property and business owners have worked with the DTA since fall to develop the PBID, with the help of Kristin Lowel, Inc., a Roseville consulting company. Consultant fees came from the DTA budget.
Carol Holzgrafe covers City Hall for The Times. She can be reached by e-mail at [email protected] or phoning (408) 779-4106 Ext. 201.
