CITY COUNCIL REGULAR AGENDA PACKET

Page 2 of 5 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. 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. Based on the analysis, and engagement with downtown property owners, It does not appear to be feasible to implement a PBID at this time due to lack of property owner support. However, the more up-to-date model represented by a PBID could be reconsidered in the future. The PDA outlined its new two-year strategic plan in the 2025 Annual Report. The strategic plan includes three key strategies for financial stability and expanding capacity to provide additional services and resources for the benefit of the Downtown and Downtown stakeholders: 1) Creation of the Pleasanton Downtown Foundation Fund; 2) Update of the BID assessment and 3) Launch of an Associate Member program. As part of the second strategy, the annual report recommended modifications to the method of levying the BID assessment for 2026. Current BID Assessment Revenue The current assessment formula is based on each business’s annual City business license payment and is calculated using 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 (1.5X) 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 when several independent contractors are located at one business address and conducting a similar service; 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, nor has the annual fee changed. The BID boundary was last updated in 2016 to exclude residential properties. The Downtown Pleasanton BID annual assessment revenue in 2026 is Page 103 of 376