Downtown San Jose PBID

Downtown San Jose PBID
PBID Committee
Co-chairs
Rick DiNapoli
DiNapoli Capital Partners
Art Bernstein
President, San Jose
Downtown Association
PBID Committee
Rich Sutton
Peggy Sue's #2
Eric Sahn
DJM Capital Partners
Diana Florian
Forest City Commercial
Management
Randy Knox III
Adobe Systems
Eileen Kong
Legacy Partners Commercial
Valerie Nicoletti
Santa Clara Valley
National Bank
Henry Cord
Cord Associates
Bill Ryan
Barry Swenson Builder
Janis Schneider
R & J Jewelry & Loan
Joan Gallo
Hopkins & Carley
A Law Corporation
Michael Shadman
Shadman Properties
PBID formation process at a glance
More than 100 downtown property and business owners and residents have already been involved in the process to develop a draft
management plan for the Downtown San Jose PBID. Steps in the process include:
PBID Steering Committee - To guide
the process and test the feasibility
of the PBID concept, a steering
committee of downtown property and
business owners was formed in 2005.
1
Survey - A direct-mail survey to property owners confirmed that the condition of downtown can be improved by
working on homeless issues, cleaning sidewalks and making aesthetic improvements.
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5
2
Community forums - Property owners
attended meetings to help design and
develop the business plan for the
PBID. Another community meeting will be
April 13 at 8 a.m. in the Gallery at Adobe
Systems, West Tower, 345 Park Ave.
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6
One-on-one meetings with key
property and business owners The steering committee members
and a consultant team held a series of
focus groups throughout the downtown
study area.
Petition - The steering committee is
currently asking property owners to
sign a petition. For the PBID process
to advance, owners representing a majority
of assessments must sign.
Ballot - The City Council holds
a hearing after verifying petitions
and sends a mailed ballot to property
owners. A majority of affirmative votes
results in the creation of the PBID.
Downtown San Jose PBID
Questions & Answers
What is the Downtown
San Jose PBID?
The PBID - or Property-Based Improvement District - is a special district where property is assessed to fund
specific downtown improvements and services in addition to those provided by the City of San Jose. The PBID
is self-imposed by a majority of property owners who must sign petitions and mark ballots to form the district.
A governing board of property owners will oversee the budget and management plan.
What services will
the PBID provide?
The PBID management plan focuses on cleaning services, public safety and image enhancement programs
above and beyond those already provided by the City of San Jose. Clean teams sweep and scrub sidewalks,
remove litter and graffiti and increase frequency of trash removal. Information and safety ambassadors
help to serve as “eyes and ears” for police by acting as witnesses to nuisance crimes such as aggressive
panhandling and public urination, connect unhoused people on downtown streets to social services, and
provide information about downtown activities and establishments. Image enhancement programs are
capital improvement/maintenance projects such as flowerpots, improved lighting, directional way-finding
signs and street furniture. All of these enhancements are aimed at improving perceptions of downtown and
increasing business and property values.
I already pay taxes.
Why support a PBID?
The city’s fund for downtown cleaning was slashed five years ago. With Downtown Association advocacy
efforts, the City Council has raised the cleaning funds the past two years, but still not to acceptable levels and the likelihood of future increases from the current baseline is slim. Meanwhile, downtown business
and property owners say the downtown is not as clean (or clean-smelling) as it should be. Supporting the
PBID will help make downtown sparkle and feel safer and friendlier, which will leverage existing and new
investment. In addition, PBID budget decisions are made by a board of property owners, which ensures
private-sector control and accountability for these enhanced services.
Who will manage
the Downtown PBID?
To keep administrative costs lower and leverage existing competencies, the San Jose Downtown Association
would be responsible for day-to-day operations. SJDA formed more than 20 years ago, and has experience
managing vendors and complex programs - and reporting to business and property owners. By contract,
SJDA will follow the lead of the property owners comprising the PBID Board of Directors.
Is this PBID unique
to San Jose?
No. More than 1,000 PBIDs exist throughout North America. In California, more than 70 PBIDs have been
established since 1995. These districts are viewed as an effective tool in helping business districts to compete
in challenging markets and dramatically improve downtown perceptions.
How would the PBID
differ from the BID
already in place?
The Business Improvement District (BID) performs different functions than the PBID, such as advocacy,
promotions, marketing and transportation services. BID programs include the free DASH shuttle, downtown
websites, maps and brochures, Downtown Ice, the Farmers’ Market, Music in the Park concert series and
outdoor movies in San Pedro Square and St. James Park. San Jose Downtown Association manages the
downtown BID, founded in 1989. PBID services will go toward different downtown needs: clean and safe
services, and physical cosmetic improvements.
Will the city reduce
its existing services
downtown?
No. An agreement with the city ensures baseline levels and frequencies of cleaning and maintenance services.
Leveraging the city downtown-cleaning program to its maximum is key to the PBID plan. If the city decreases
its base level of service downtown, for whatever reason, the PBID could also decide to decrease its assessments.
How much will it cost?
Assessments are based on benefit. Those in the basic area (see map) will be assessed at half the rate as
those in the premium zone. Accordingly, services in the premium zone will be double what is provided in
the basic zone. The assessment is calculated based on the square footage of the lot plus the square footage
of the building. A rate chart can be found on the next page. Residential property owners pay slightly less
than commercial property owners.
What is the process for
continuing the PBID?
By state law, the PBID has a five-year life. Any subsequent renewal of the district would require a
new management plan, petition and mail-ballot process, such as the process currently under way.
Downtown San Jose PBID
Facts
Proposed Budget
PBID benefits:
Improvements
and Services
Activity
Clean Teams
Information & Safety
Ambassadors
Image Enhancement
Administration
Total
Budget
$ 600,000
$ 600,000
% of total
37.6
37.6
$ 250,000
$ 145,000
$ 1,595,000
15.7
9.1
100
Proposed Rates
Per square foot
Per square foot of
of lot per year
building per year
Basic Service Zone
$ 0.0480
$ 0.0480
Premium Service Zone
$ 0.0831
$ 0.0831
Residential: Basic
$ 0.0351
$ 0.0351
Residential: Premium
$ 0.0703
$ 0.0703
Assessment formula = lot square foot + building square foot
All services are aimed at
improving perceptions of
downtown and increasing
property values.
Public Safety and
Information Assistance
Ambassadors would support
law enforcement, businesses
and property owners in overall
crime prevention efforts while providing concierge service to downtown customers, residents and employees. Specific duties include:
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Rate Examples (all premium zone)
Residential condominium on South Third Street $189 per year - 1,400-square-foot lot, and 1,300- square-foot layout
Small retail building (19 S. First St.) - $308 per year 2,200 square-foot lot with 1,500 square-foot of space
Large retail building (82 E. Santa Clara) - $3,540 per year 12,200-square-foot lot with 30,360 square feet
High-rise office building (160 W. Santa Clara) - $22,135 per year 56,250-square-foot lot, with 14 floors totaling 209,800 square feet
City Partnership
In January, San Jose City Manager Les White documented current
city cleaning levels downtown in a letter to the San Jose Downtown
Association.
“Should the formation of the Downtown PBID become more certain,
it is my intent to recommend to the City Council that the city
continue to deliver or pay for a baseline level of downtown cleaning
services,” the city manager confirmed.
By partnering with the city and combining PBID dollars with
city funds already allocated for cleaning, the total “Clean and
Green” budget would be highly leveraged with almost equal public
and private resources. The PBID steering committee expects
downtown will sparkle.
Next steps
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Cleaning Services
The Clean and Green team will use state-of-the-art, environmentally
friendly equipment to clean and maintain streets and pedestrian
areas. Frequency in the primary zone will double that of the basic
zone. Duties include:
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March: Launch petition drive.
May: Petition drive is completed.
June: City Council public hearing to accept petitions.
June: Ballots mailed to all property owners, with 45-day
response period.
August: City Council approval after a majority of property
owners vote in favor by returned ballot.
January 2008: Earliest PBID services could begin.
Direct and assist visitors
Distribute information about downtown events and activities
Escort employees and arts patrons
Serve as “eyes and ears” for police
Act as professional witnesses to nuisance crimes
Monitor panhandling
Deter drinking in public and curfew violators
Litter abatement
Report and document graffiti and general maintenance issues
Serve as communications link to other downtown stakeholders
Refer those in need on downtown streets to social services
Sweep and pressure-wash sidewalks, alleys and paseos
Pick up litter and leaves
Report and remove graffiti
Increase frequency of trash removal
Improve recycling programs
Deep cleaning and stain removal
Benchmark maintenance issues
Assist property owners with maintenance issues
Assist with pest control
Monitor dumpsters and trash receptacles
Act as “eyes and ears” for code enforcement
Assist in securing empty lots and vacant buildings
Image Enhancement
Image enhancement programs are capital improvement/
maintenance projects. Some examples:
➔ Flowerpots and hanging flower baskets
➔ Improved lighting
➔ Directional way-finding signs
➔ Chess tables
➔ Benches and other street furniture
Downtown San Jose PBID
Proposed boundary