CITY COUNCIL REGULAR MEETING AGENDA PACKET

Page 3 of 10 Based on the EDSP’s direction, in 2024, staff evaluated the feasibility of a property-based business improvement district (PBID), in which property owners are assessed to fund supplemental services within the District, versus the current structure, which assesses businesses. The feasibility study provided three assessment scenarios that could generate, at the highest assessment, up to $314,166 annually, and at the lowest assessment up to $104,722, with a mid-range amount of $209,443 for the District. The annual cost to a property owner would be based on parcel lot size, benefit zone, and parcel use. Over the course of four months, the City engaged with property owners through meetings, a survey, and an open house. The analysis revealed that of the 45 percent of property owners engaged, only 14 percent expressed support, weighted by the proportion of the total assessment they would pay. 19 percent of respondents were leaning toward support – a signal that further education and outreach is needed to solidify their position – and the remaining 12 percent were undecided, leaning toward opposition, or fully opposed. The position of the remaining 55percent of unengaged/unresponsive property owners is unknown until further outreach is conducted. The PBID feasibility study results were presented to the City Council at its meeting on January 21, 2025. The City Council postponed the approval of a PBID formation or further outreach activities to allow the PDA, property owners, and downtown businesses to have further discussions on downtown economic vitality and other funding strategies. The PDA conducted outreach with downtown stakeholders through property owner and business meetings, and after hiring its new Executive Director, Gabrielle Welk in April, developed a new two-year strategic plan to pursue alternate ways to augment its current, non- City funding. The PDA strategic plan consists of three key strategies for new or enhanced funding streams: 1) Creation of the Pleasanton Downtown Foundation Fund; 2) Update of the BID and 3) Launch of an Associate Member program. Ms. Welk provided an update and presented the three key strategies of the PDA Strategic Plan to the City Council at the August 19, 2025, City Council meeting. Current BID Assessment Revenue The current assessment formula is based on each business’s annual City business license payment and is calculated based on the following formula: • Businesses located curbside and downstairs on Main Street are assessed at two times (2X) their business license; • Businesses with a Main Street address located upstairs, or not curbside, are assessed at a rate of one and a half times (1½X) their business license; • All other businesses (those located off Main Street) pay an amount equal to one times (1X) their business license. Notwithstanding these factors, the existing formula sets a minimum and maximum assessment for any business, at a minimum of $50 and a maximum of $350 per business. Non-profit businesses within the District are not assessed. There are instances where businesses are exempt from the City’s business license fee, but pay an annual fee of $200, including where several independent contractors are located at one business address and conducting a similar service and the maximum charge of $200 is paid by the owner of this business. The assessment formula and minimum and maximum amounts have not changed since 1996, Page 144 of 264