ECONOMIC VITALITY COMMITTEE AGENDA PACKET

Page 2 of 6 To ensure economic vitality in Downtown Pleasanton, it is recommended the City and Pleasanton Downtown Association evaluate the current business improvement district structure for increased funding for economic development opportunities. Several decades ago, the City established a Downtown Pleasanton Business Improvement District (BID) with the purpose and boundaries of which are set forth in Chapter 5.28 of the Pleasanton Municipal Code. Through an agreement with the City, the Pleasanton Downtown Association (PDA) serves as the manager of the BID. The recent 5-year agreement that expired on December 31, 2024, obligates the City to match the annual assessments paid by businesses in the BID. These City funds are remitted to the PDA and used to conduct promotions, programs and activities that benefit downtown Pleasanton. Under a new one-year agreement for 2025 - which allows time for Phase 2 of the PBID process to be conducted - staff recommends the City provide matching funds up to 50 percent of the collected assessments; this percentage could be reevaluated by the City Council at a later date in 2025 based on the City's financial position. This one-year agreement is presented to the City Council as a separate agenda item at this January 21 meeting. The assessment formula is based on the annual business license payment and is calculated as follows: • 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. The minimum assessment is $50 and the maximum is $350. Non-profit businesses within the district are not assessed. DISCUSSION The feasibility of a Property & Business Improvement District (PBID) is being explored to sustain and increase the vitality and economic health of the downtown district. PBIDs are funded through an assessment on properties within the district. The amount of the assessment is determined by property owners at the formation of the district, within particular legal guidelines. Certain types of property can be exempt from all or part of the assessment if they do not benefit from district services. Funds raised through the assessment must be spent within the district for the benefit of the properties paying the assessment. A PBID is typically formed for five years, initially. After five years, it can be renewed by property owners for up to 10 years. PBID assessments would be managed by the PDA and tailored to benefit the property owners paying the assessment. Possible services may include: • Marketing and Advertising • Signage Improvements and Wayfinding • Street and Sidewalk Sweeping • Graffiti removal