CITY COUNCIL REGULAR MEETING AGENDA PACKET

Page 2 of 10 and level of activity needed to effectively sustain the downtown's vitality and economic health. This situation has become more acute as the City faces ongoing budget challenges that limit its ability to supplement PDA's BID-derived funding. City Contribution to the PDA and Downtown District The City has had an agreement with the PDA to administer the Downtown BID since the inception of the District. The most recent agreement is for one year and is set to expire at the end of this year, but historically, the agreement would span five years. Through the terms of the agreement, the City is required to match 100 percent of the BID assessment revenue generated by the businesses within the downtown. For the 2026 Budget, the City contribution was estimated at around $80,000, which equals the estimated amount of the BID assessment revenue for 2025. Through the BID Assessment match and other support, the City has been a longstanding and significant partner to the PDA in supporting economic vitality and growth in the downtown. Based on a review of available financial data for the last ten years, the City has provided a total of approximately $810,000 in matching BID assessment funding and an additional $130,000 in sponsorship funding from the General Fund. The sponsorship funding includes $100,000 for Weekend on Main events in 2022, $16,000 for Small Business Saturday events, and approximately $14,000 for Concerts in the Park and other sponsorships. Recognizing the community importance of a vibrant downtown, the City has provided support in many other ways, beyond these direct financial contributions. For example, the cost to the City for Weekends on Main street closures is estimated at approximately $260,000 over the last four years. The City has also made significant financial investment in the downtown District with the Transportation Corridor improvements, new newspaper racks, downtown parklet grant program, sponsorship of events such as Hometown Holidays, and more recently, the new bandstand and Lions Wayside and Delucchi Park renovations, as well as enhanced maintenance of planters/landscaping, street furniture and signage. As the City faces ongoing fiscal challenges, the City’s contribution for future years will be evaluated during consideration of a new agreement with the PDA. A future agreement will also provide an opportunity to discuss and decide on other City support for downtown activities and events such as Weekends on Main, which are most successful where there is synergy between the street closures and programming of the closure area with activities and attractions for visitors. BID Update and PBID Feasibility Study In August 2023, the City Council adopted the updated Economic Development Strategic Plan (EDSP). The five-year plan comprises five implementation plan priorities. Among these, under Priority 3: Local Revenue Growth, the EDSP includes action Item 3.2 related to downtown Pleasanton: 3.2: Evaluate the Pleasanton Downtown Association’s Business Improvement District Structure To ensure economic vitality in Downtown Pleasanton, it is recommended that the City and Pleasanton Downtown Association evaluate the current business improvement district structure for increased funding for economic development opportunities. Page 143 of 264