DRAFT Miracle Mile Improvement District Property Based Business Improvement District Management District Plan Stockton, California March 29, 2012 Prepared by: PBID Renewal Committee Kevin Dougherty, Christopher Bennitt, Karen Carlson, and Denise Jefferson Reviewed by: Civitas Advisors Inc. Engineering Report by: Kristin Lowell Prepared pursuant to the State of California Property and Business Improvement District Law of 1994 and Article XIIID of the California Constitution to renew a property based business improvement district
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SECTION 1: Management District Plan Summary...2012/03/29 · Kevin Dougherty, Christopher Bennitt, Karen Carlson, and Denise Jefferson Reviewed by: Civitas Advisors Inc. Engineering
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DRAFT
Miracle Mile Improvement District
Property Based Business Improvement District
Management District Plan
Stockton, California
March 29, 2012
Prepared by:
PBID Renewal Committee
Kevin Dougherty, Christopher Bennitt,
Karen Carlson, and Denise Jefferson
Reviewed by:
Civitas Advisors Inc.
Engineering Report by:
Kristin Lowell
Prepared pursuant to the State of California
Property and Business Improvement District Law of 1994
and Article XIIID of the California Constitution
to renew a property based business improvement district
MIRACLE MILE IMPROVEMENT DISTRICT
PBID RENEWAL 2013
MANAGEMENT PLAN
TABLE OF CONTENTS
Section Number Page Number Page Number
1. Management Plan Summary 1
2. MMID PBID Improvement and Activity Plan 4
3. MMID PBID Operating Budget 7
4. Public Sector Participation 8
5. Assessment Methodology 9
6. MMID PBID Governance 13
7. Assessment Roll 14
8. MMID District Boundaries Map 17
9. City of Stockton Baseline Services Agreement 18
Appendix A: City of Stockton Council Resolution 19
Appendix B: Engineer’s Report 20
Miracle Mile Improvement District March 29, 2012
Draft Management District Plan Page 1
SECTION 1: Management District Plan Summary
Developed in 2007 by a coalition of property and business owners, the Miracle Mile
Improvement District (MMID) is a benefit assessment district designed to improve
and convey special benefits to properties within the commercial business district of
Pacific Avenue, commonly referred to as the "Miracle Mile." The MMID Property
and Business Improvement District was established pursuant to the state law, the
"Property and Business Improvement District Law of 1994", as amended. The
Miracle Mile PBID provides services and activities, including enhanced
maintenance, public security and safety, and marketing and promotional activities,
above and beyond those the City currently provides. Pursuant to the “Property and
Business Improvement District Law of 1994,” as amended, the MMID has
functioned and continues to function for a term of five years, beginning on January
1, 2008, and ending December 31, 2012.
A non-profit organization, the Miracle Mile Improvement District, was formed in
the fall of 2007 and designated as the Owners’ Association
Location: The renewed Miracle Mile Improvement District shall include those
commercial parcels in the Pacific Avenue area from Alpine Avenue on the north to
Harding Way on the south, and all commercial parcels that front Harding Way
between Lincoln Street on the west and North El Dorado Street on the east. A map
of the boundaries is attached.
Within this boundary there are two benefit zones that will receive varying levels of
services. Zone 1 includes all commercial parcels fronting Pacific Avenue south of
Regent Court and all commercial parcels fronting Harding Way from Lincoln Street
to North El Dorado Street. Zone 2 includes the remainder of the District, those
commercial parcels fronting Pacific Avenue north of Regent Court to Alpine
Avenue.
Services and Activities Provided
The services and activities to be provided include:
Enhanced Maintenance: Activities to maintain existing landscape, replace
landscaped planters as needed, add landscape in underserved areas, add trash
receptacles where needed, maintain and improve public parking lots, remove
graffiti, periodically power wash sidewalks, remove trash, gum, stickers and
debris, and maintain and improve parking lot and street lighting.
Public Security and Safety: Provide contracted security, work with
community partners on enhanced security provisions, develop and promote
safety programs including “No Loitering” programs and “No Panhandling”
programs, promote crosswalk safety programs, and promote alternative
transportation modes by installing bike racks and working with the local
transit district to enhance bus routes and bus stop locations.
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Draft Management District Plan Page 2
Marketing and Promotion: The MMID will provide services to the District
merchants to assist them in joint-effort marketing and advertising, as well as
placing advertisements in various media. The MMID website and facebook
page will be utilized to advertise the District’s events, bring more foot-traffic
to the area, and enhance the image of the District. The MMID will continue
to work to enhance the economic growth of the District through activities,
advertisements and events that promote the District’s image to attract
businesses and new customers.
Advocacy and Management: The MMID will employ an Executive Director to
manage the day-to-day operations of the organization and be an advocate to the
community for the MMID. The director shall continue to work closely with the
City of Stockton, Stockton Unified School District, the University of the
Pacific, the San Joaquin Rapid Transit District, and other organizations and
agencies in partnership towards maintaining and enhancing the Miracle Mile
Community as a hub for dining, shopping, entertainment, and education.
Budget: The MMID PBID total annual amount of assessment income to be expended
in 2013 is projected to be $235,000. The total assessment annual amount may increase
by no more than 3% per year thereafter.
Method of Financing: Levy of assessments upon real property that specially benefit
from the proposed services and activities.
Assessments: Annual assessments are calculated based upon each property's square
footage plus building square footage.
The first year's assessment rates are as follows:
Benefit Zone
Annual Assessment Rate
per Lot plus Bldg Sq.Ft.
Zone 1: $0.1276
Zone 2: $0.0622
Cap: The PBID budget and assessments may increase by as much as 3% per year to
keep pace with the consumer price index and other program costs.
Collection: Assessments will appear as a separate line item on the annual County of
San Joaquin Property Tax bills.
City Services: The City of Stockton has established a “Base Line Services Agreement”
with the MMID to maintain the current level of services within the District, and will
continue to provide said Base Line Services under the renewed PBID.
District Formation: The MMID PBID renewal requires submission of petitions
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Draft Management District Plan Page 3
from property owners within the District boundaries representing more than 50% of
total assessments. Following a public hearing, if ballots, weighted by assessments,
submitted in opposition to the assessment do not exceed the ballots submitted in favor
of the assessments, the City Council may authorize the levy of assessments.
Duration: Per state law, the renewed MMID PBID will have a five-year life
commencing January 1, 2013 and terminating December 31, 2017, unless the property
owners within the MMID elect to renew the District again.
Governance: The MMID shall continue to serve as the Owners’ Association pursuant to Section 36651 of the Streets and Highways Code. The Board of Directors or the Executive Board shall meet monthly (alternating months) to review the budget, policies, and services provided. The non-profit organization shall continue to provide staffing and contracted services to fulfill the goals of the MMID PBID.
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Draft Management District Plan Page 4
SECTION 2: PBID IMPROVEMENT AND ACTIVITY PLAN
As determined by area property and business owners, the top priority for services and activities
within the District area are consistent with the original intent, and include:
1. Enhanced Maintenance
2. Public Safety and Security
3. Marketing and Promotions
4. Administrative Services
Based upon these findings, the following service and activity categories are recommended for
continuation in the PBID renewal. Subsequent year’s programs and budgets will be
subject to the review and approval of the member-elected Board of Directors and overseen and
approved by the Stockton City Council.
All of the improvements and activities detailed below are provided only to individual assessed
parcels within the District boundary and provide special benefits which are particular and
distinct to each of the individual assessed parcels within the proposed District. No improvement
or activities are provided to parcels outside the District boundaries. All assessment revenues
generated from this District will only pay for services directly benefiting each of the individual
assessed parcels.
All benefits derived from the assessments outlined in the Management District Plan are for
services directly benefiting the individual assessed parcels and businesses within this area and
will support increased commerce, business attraction and retention, and increased property
rental income. The enhanced cleanliness, safety and marketing and promotions within this
commercial core will enhance the image and viability of the assessed parcels and businesses
within the District boundaries. No services will be provided to parcels outside the District
boundaries.
1. Enhanced Maintenance
The top priority for the Miracle Mile property owners is enhanced maintenance. MMID will
continue to provide contracted services to power-wash sidewalks, remove gum and stickers,
collect and remove trash from public trash containers, remove graffiti, collect and dispose of
litter, and to provide seasonal watering services of public landscape where irrigation is
nonexistent. The MMID shall also continue to assist in District beautification by planting
seasonal flowers in tree wells, and replacing missing or dying trees and shrubs when budget
allows. The MMID shall continue to work with local organizations to enhance and maintain
these plantings, including the trimming of trees and bushes and weeding of planters.
The MMID will work with the City of Stockton, existing organizations, and service contractors
to revitalize existing street furnishings (trash cans, streetlights, bollards, etc.) and to supply
furnishings where they are needed.
The proposed maintenance service frequencies are provided below depending on actual cost
estimates to provide these services:
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Draft Management District Plan Page 5
FREQUENCY
SERVICE GOALS Zone 1 Zone 2
Power-washing sidewalks, gum and
sticker removal
Three times a year
between April and
October
Once a year in June
or July
Trash removal 6 days per week, year
round
1 day per week, April
to October
Graffiti removal 6 days per week as
needed
6 days per week as
needed
Litter removal and weeding services:
provided by SUSD workability program
Per SUSD school
calendar
Per SUSD school
calendar
Watering 6 days per week; April
through October
None
Planting April When budget allows
Street furnishings
replacement/improvement
Year round Year round
2. Public Safety and Security The second priority of the District property owners and the MMID Board of Directors is to provide a safe environment for businesses, employees and guests. The MMID security program will supplement local law enforcement agencies by providing contracted security personnel during peak hours as determined by monthly security reports. Security schedules will vary by day, week, and month based on reported activity or scheduled events within the district. The program will assist in the prevention of break-ins, graffiti tags and disruptive street behavior. Additionally, the security personnel will be available to escort guests and employees to their vehicles in the evening hours on a call-in basis. The MMID will develop a security plan with the southern District property owners (Harding Way) and businesses to decrease unfavorable activity along the southern portion of the District. The MMID will negotiate with business owners on Harding Way to form another supplement security program on Harding Way. The MMID will continue a “No Loitering” campaign and a “No Panhandler” campaign with the merchants to discourage the MMID guests from giving change to panhandlers. Providing change to panhandlers fuels the loitering issue and deters guests from visiting.
3. Marketing and Promotions
The third priority of District property owners and the MMID Board of Directors is marketing
and promoting the Miracle Mile as a destination for the shopping, dining, entertainment, and
educational needs of the community. These promotions and events will aim to improve the
overall business image of the District with the goal of attracting and retaining businesses, jobs
and investment. Included in marketing and promotions is joint-advertising opportunities, an
organizational website (Stocktonmiraclemile.com), a facebook page for constant connection
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and advertising, an annual report, brochures and flyers, street banners, and sponsorship of
related activities and events that will benefit the District’s image. A façade improvement
program was developed by the MMID which provides a small reimbursement fund for
merchants who improve the front façade of their buildings which improves the overall image of
the District as a whole.
4. Administrative Services
Administrative services will include compensation paid to the Executive Director to provide
staff services to the Board of Directors, manage the budget and bookkeeping of the
organization, maintain the records of the organization, oversee the contracts for services of the
District, manage the website, oversee advertising, promotions and events, assist merchants in
issues related to the enhancement of the District’s image, and act as official liaison to the City
of Stockton, the University of the Pacific, Stockton Unified School District, and other
organizations and agencies whose activities interact with the District. When available, the
Executive Director will be assisted by part-time volunteer interns and other volunteers to assist
with the day-to-day operations of the PBID. The Executive Director will also work with
outside agencies and interested parties to identify and obtain supplemental funds, such as
additional funds for security programs.
The budget for management and advocacy includes expenses relating to rent, telephone,
utilities, printing, postage, equipment, internet services, accounting and bookkeeping services,
and legal services when needed. Insurance premiums are also included to provide general
liability coverage for the District operations, activities, and events, director and officer liability
coverage, and health-care benefits for the Executive Director.
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Draft Management District Plan Page 7
Section 3: MMID OPERATING BUDGET 2013
SERVICE OR ACTIVITY 2013 BUDGET* % OF BUDGET
Assessments $235,000
TOTAL INCOME $235,000 100%
EXPENSES
Enhanced Maintenance $30,000 13%
Public Safety and Security $100,000 43%
Marketing and Promotions $20,000 9%
Subtotal General Services: $150,000
Administrative Support* $85,000 36%
TOTAL EXPENSES $235,000 100%
* Includes the required reserve fund
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Draft Management District Plan Page 8
SECTION 4: PUBLIC SECTOR PARTICIPATION
Baseline Services Agreement
It is not the intent of the PBID to use property assessment funds to pay for services that
the City currently provides. Assessment funds are to pay for services that are above
and beyond those services provided by the City.
In 2007 the City Council executed a baseline services agreement that established the
levels of City services that would continue after the MMID PBID was formed, and the
City intends to continue to support this agreement (see Baseline Service Agreement,
Section 9).
Public Property Assessments
This MMID Management District Plan assumes that the City of Stockton and any other
government or non-profit owned parcels within the District boundary will pay their
proportional assessment based on the special benefits conferred to each of those
individual assessed parcels. All publicly owned parcels receive the same level of service
and benefit respective of the benefit zone as all other properties within the District from
the proposed improvements and activities. Therefore, the publicly owned parcels are
apportioned their fair share of the project costs, based on the same assessment formula
applied to all other parcels in the District. Article XIIID of the California Constitution
was added in November 1996 and provides for these assessments.
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Draft Management District Plan Page 9
SECTION 5: ASSESSMENT METHODOLOGY
General
This Management District Plan provides for the levy of assessments for the purpose of
providing services and activities that specially benefit real property within the
boundaries of the MMID. These assessments are not taxes for the general benefit of the
City, but are assessments for services and activities which confer special benefits upon
the real property for which the services and activities are provided.
Assessment Factors
Miracle Mile property owners and business owners have emphasized that the
assessment formula for the MMID PBID be fair, balanced and have a direct relationship
to special benefits received. The State enabling legislation also states, "Assessments
levied on real property... shall be levied on the basis of the estimated benefit to the real
property within the district." The recommended methodology for the District is to use
lot plus building square footage as the assessment variable.
Lot plus Building Square Footages
The sum of lot and building square footage is the primary assessment variable for all
programs and services. The benefits derived from all PBID activities are designed to
improve the cleanliness, beauty, safety, security, image, tenancy and sales, which are
distributed throughout the district. Including lot square footage in the calculation
acknowledges the greater benefits of these services to the ground level of property.
Benefit Zones
As previously discussed the District is divided into two benefit zones receiving varying
levels of services. Zone 2 receives fewer general services than Zone 1, thus the square
footage of Zone 2 is reduced by 75% to create a “weighted square foot” amount. The
table below shows the total amount of assessable lot plus building square footage and
the weighted square footage for each zone:
Benefit Zone
Total Sqft Weighted Lot
Sqft
Weighted Bldg
Sqft
TOTAL
Weighted Sqft
Zone 1 1,591,924 997,529 594,395 1,591,924
Zone 2 513,004 102,932 25,319 128,251
TOTAL 2,104,928 1,100,461 619,714 1,720,175
Assessment Calculation
The benefit zones will receive varying levels of maintenance services, in particular
Zone 1 will receive the majority of the general services; therefore, the higher amount
apportioned to Zone 1 is in direct relationship to the cost for services in Zone 1.
Likewise, Zone 2 receives fewer services and less benefit than Zone 1; therefore, the
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amount apportioned to Zone 2 is less than Zone 1 and is in direct relationship to the
cost of the service for Zone 2.
To calculate the assessment for the services for each zone is to take the cost for the
“general services” (see budget, page 7), $150,000 and divide it by the total number
assessable square feet, 1,720,175 which equals an assessment of $0.0872 per foot. That
is the assessment rate for Zone 1. However, because Zone 2 receives fewer services
than Zone 1 they will be assessed at 25% of that rate or $0.0218 per foot. To calculate
the assessment for the “administrative support”, which benefit the District as a whole, is
to divide that portion of the budget, $85,000, by the total number assessable square feet,
1,720,175 which equals an assessment of $0.0404 per foot.
To calculate a parcel's assessment for Zone 1, multiply that parcel's lot square feet plus
building square feet by $0.1276 ($0.0872 + $0.0404) which equals the total parcel
assessment. To calculate a parcel's assessment for Zone 2, multiply that parcel's lot
square feet plus building square feet by $0.0622 ($0.0218 + $0.0404) which equals the
total parcel assessment. For example, a parcel in Zone 1 with 5,000 lot square feet plus
2,500 building square feet will receive an assessment of $957.00 (7,500 x $0.1276). A
parcel in Zone 2 with 5,000 lot square feet plus 2,500 building square feet will receive
an assessment of $466.50 (7,500 x $0.0622).
Assessment rates will not exceed the following during the first year of the PBID:
Benefit Zone
Annual Assmt Rate
per Lot plus Bldg
Sq.Ft
Zone 1: $0.1276
Zone 2: $0.0622
Annual Assessment Adjustments
Residential Properties: Parcels that are zoned residential, and used exclusively for
residential purposes, are exempt from the MMID assessments. This is based on the
finding that residential parcels do not receive benefit from the proposed activities as
presented in this Management District Plan. If at any time a residential property
converts its use to commercial purposes, then that property receives benefit from the
activities and is then subject to the assessment.
School District Properties: Parcels that are used exclusively for school purposes
receive less benefit because they provide many services the district provides, they are
fenced, they have significant amount of open space, and they are not utilized for
purposes similar to a commercially zoned and/or developed parcel. This acknowledges
that the benefits to the school property are focused solely on the building.
Miracle Mile Improvement District March 29, 2012
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Budget Adjustment: Any annual budget surplus or deficit will be rolled over to the
following year's MMID budget and applied when needed. The Owners’ Association
may adjust the budget line items by no more than ten percent (10%) of the total budget
each year; except that the MMID reserve will be maintained at approximately 10% of
the annual MMID budget.
Government and Non-Profit Assessments: The City of Stockton and any other
government or non-profit owned parcels within the PBID boundary will pay their fair
share assessment based on the special benefits conferred to those parcels. Article XIIID
of the California Constitution was added in November 1996 and provides for these
assessments.
The table below s h o w s t h e p u b l i c l y owned parcels, City of Stockton and the
Stockton Unified School District, and their respective assessments.
APN OWNER ASSESSMENT 113 290 02 CITY OF STOCKTON $9,263.49
113 354 15 CITY OF STOCKTON $1,389.37 113 364 06 CITY OF STOCKTON $444.50 113 364 07 CITY OF STOCKTON $555.75 125 060 08 CITY OF STOCKTON $1,278.12 125 070 12 CITY OF STOCKTON $1,444.86 127 020 05 CITY OF STOCKTON $1,444.86 127 042 04 CITY OF STOCKTON $1,278.12 127 050 04 CITY OF STOCKTON $611.24 127 060 03 CITY OF STOCKTON $1,278.12
137 020 22 CITY OF STOCKTON $1.278.12
TOTAL
$20,266.54
137 060 01 STOCKTON UNIFIED SCHOOL DIST $1,237.54
137 060 02 STOCKTON UNIFIED SCHOOL DIST $18.588.68
TOTAL $19,826.22
Time and Manner for Collecting Assessments
As provided by state law, the Miracle Mile PBID assessment will appear as a separate
line item on the annual San Joaquin County property tax bills, and will be payable in
three installments as follows: first installment equals 53% of total assessment,
installment two equals 28% of the total, and the final installment contains the remaining
19% of the total assessment amount. Laws for enforcement and collection of property
taxes also apply to the PBID assessment. The MMID shall invoice these installments to
the City of Stockton, Economic Development Department, which is responsible for
collecting said assessments from the San Joaquin County Tax Assessors office. The
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Draft Management District Plan Page 12
City of Stockton and the Stockton Unified School District assessments shall be invoiced
to the respective agencies by the MMID annually.
Disestablishment
State law provides for the disestablishment of a PBID pursuant to an annual process.
The 30-day period begins each year on the anniversary day that the City Council first
established the District. Within this annual 30-day period, if the owners of real property
who pay more than 50 percent of the assessments levied submit a written petition for
disestablishment, the PBID may be dissolved. The City Council will hold a public
hearing on the disestablishment prior to actually doing so.
Duration
Per state law, the renewed MMID PBID will have a five-year life commencing January
1, 2013 and terminating December 31, 2017 unless the property owners within the
PBID elect to renew the District.
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Draft Management District Plan Page 13
SECTION 6: MMID GOVERNANCE
Consistent with business improvement district legislation throughout the nation, California's
"Property and Business Improvement District Law of 1994," and its amendments establish a
governance framework that allows property owners who pay assessments to determine how
those assessments are used. The following components are required within a PBID governing
structure.
PBID Governance
To encourage cost effective operations, maximize stakeholders' accountability and encourage a
unified management structure, the City of Stockton will continue its contract with the Miracle
Mile Improvement District, a non-profit organization, to provide the day-to-day operations of
the MMID. The MMID will hold an annual election of assessed property owners to select the
governing Board of Directors, which will meet regularly to oversee operations and activities of
the MMID. The MMID Board shall be comprised of 7 property owners with a geographic
representation of the entire district, 3 members shall be business owners, and 1 member
each shall be from the City of Stockton, Stockton Unified School District, and the
University of the Pacific. The MMID Board of Directors reserves the right to modify its
composition by amending the MMID Bylaws; provided that the Board shall always be
comprised of a majority of property owners paying the PBID assessment. The MMID Board
of Directors shall review the PBID budgets and policies within the limitations of the
Management District Plan and file annual reports with the property owners within the