In light of ongoing economic demands in California cities, many communities are facing reduced or depleted project and operation budgets which historically funded central business district services and activities. Regular programs have been eliminated, projects delayed and levels of service reduced. In addition, with an increased awareness of social issues (homelessness, panhandling, crime, etc.) and environmental concerns (littering, graffiti, etc) the public perceives a greater need for supplemental business district security and maintenance services.

Additionally, there is an ever-increasing amount of competition for traditional business districts from shopping malls, off-price centers, big box warehouse retailers and factory outlets, as well as a myriad of mail order catalogs, internet sales and home shopping networks. There is a significantly greater need to aggressively market goods and services and create physical environments and services comparable to the competition. Business districts everywhere must work harder and smarter just to capture a portion of their proportionate market share.

In order to thrive in the face of such competition, traditional business districts cannot rely solely on discretionary governmental funding or typical tax supported programs and services. There is a need to pool private resources so as to independently fund vital activities, services and improvements. Business districts throughout California are finding that one of the most effective methods today to accomplish this is through a Property and Business Improvement District (PBID).

This unique assessment mechanism can fund a full array of activities ranging from enhanced maintenance to art festivals and street fairs to beautification projects such as holiday decorations and landscape planters, to urgently needed services such as supplemental security and economic development. By pooling private dollars, PBIDs are able to collectively pay for and manage activities, programs and improvements which would not be possible on an individual owner basis. In a time of stretched public resources, PBIDs are one of the most valuable and effective private sector business district finance tools available.

PBID ELIGIBLE USE OF FUNDS

 PBID assessments are levied directly on properties within a prescribed area on the basis of relative special benefit from the improvements and activities to be funded and defined in the California State PBID law (The Property and Business Improvement Area Law of 1994, Section 36600 Streets and Highways Code), as follows:

“Improvement”means the acquisition, construction, installation, or maintenance of any tangible property with an estimated useful life of five years or more including, but not limited to, the following:

     (a) Parking facilities.

     (b) Benches, booths, kiosks, display cases, pedestrian shelters and signs.

     (c) Trash receptacles and public restrooms.

     (d) Lighting and heating facilities.

     (e) Decorations.

     (f) Parks.

     (g) Fountains.

      (h) Planting areas.

     (i) Closing, opening, widening, or narrowing of existing streets.

     (j) Facilities or equipment, or both, to enhance security of persons/property within the area.

     (k) Ramps, sidewalks, plazas, and pedestrian malls.

     (l) Rehabilitation or removal of existing structures.

 “Activities”means, but is not limited to, all of the following:

     (a) Promotion of public events which benefit businesses or real property in the district.

     (b) Furnishing of music in any public place in the area. 

     (c) Promotion of tourism within the district.

     (d) Marketing and economic development, including retail retention and recruitment.

     (e) Providing security, sanitation, graffiti removal, street and sidewalk cleaning, and other municipal services supplemental to those  normally provided by the municipality.

     (f) Activities which benefit businesses and real property located in the district.

REQUIRED INFORMATION IN A PBID MANAGEMENT DISTRICT PLAN

 As stipulated by California State PBID Law the following information and data must be included in a PBID Management District Plan:

Section 36622. The management district plan shall contain all of the following:

     (a) A map of the district in sufficient detail to locate each parcel of property within the district.

     (b) The name of the proposed district.

     (c) A description of the boundaries of the district, including the boundaries of any benefit zones, proposed for establishment or extension in a manner sufficient to identify the lands included. Under no circumstances shall the boundaries of a proposed district overlap with the boundaries of another existing district created pursuant to this part. Nothing in this part prohibits the boundaries of a district created pursuant to this part to overlap with other assessment districts established pursuant to other provisions of law including, but not limited to, the Parking and Business Improvement Area Law of 1989.

     (d) The improvements and activities proposed for each year of operation of the district and the maximum cost thereof.

     (e) The total annual amount proposed to be expended for improvements, maintenance and operations in each year of operation of the district.

     (f) The proposed source or sources of financing including the proposed method and basis of levying the assessment in sufficient detail to allow each property owner to calculate the amount of the assessment to be levied against his of her property.

     (g) The time and manner of collecting the assessments.

     (h) The specific number of years, to a maximum of five years initially, and 10 years thereafter in which assessments will be levied. The management district plan may set forth specific increases in assessments for each year of operation of the district.

     (i) The proposed time for implementation and completion of the management district plan.

     (j) Any proposed rules and regulations to be applicable to the district.

     (k) A list of the properties to be assessed, including the assessor’s parcel number, and a statement of the method or methods by which the expenses of a district will be imposed upon benefited real property, in proportion to the benefit received by the property, to defray the cost thereof, including operation and maintenance. The plan may provide that all or any class or category of real property which is exempt by law from real property taxation may nevertheless be included within the boundaries of the district but shall not be subject to the assessment.

     (l) A statement whether bonds will be issued in relation to the operation of the district.

     (m) Any other item or matter required to be incorporated therein by the city council.

The La Mesa PBID Formation Committee has recently approved the Management District Plan.  It is now being finalized for minor changes.  Additional information will be published as soon as the plan is completed.

 La Mesa Downtown Village is the historic commercial and government center of the City offering a widearray of services, goods and dining spots all within an architecturally pleasant pedestrian oriented compact easily accessible hub. It has been nearly 30 years since the Village was last revitalized with a comprehensive streetscape beautification project. While this last effort served the area well during the better part of the last three decades, it is now showing overt signs of deterioration and outdated design amenities in need of a freshened image.

In order to provide an invigoration of new appeal, energy and competitiveness to the Village, the City of La Mesa City Council has committed substantial resources towards the design and construction of a comprehensive multi-phased streetscape improvement project within the greater Village area. In order to facilitate this major beautification effort, the City Council has asked Village stakeholders to consider the direct financing of supplemental maintenance services for the new streetscape improvements.

 An exploratory Committee was selected in mid 2010 to review and analyze public/private funding options to pay for the requested supplemental maintenance services. The Committee was also asked to consider whether there was a need to fund other activities in the Village area that would be typical of other California downtowns. The Committee determined that, yes, there were several unfunded or underfunded programs that were needed in the Village in order to be competitive in the regional marketplace. These other activities included supplemental security, marketing and promotions, decorative amenities such as tree lighting, holiday decorations and landscaped planters as well as paid management staff to oversee these activities and programs. It was determined that the best tool available to fund and manage these supplemental activities and improvements was a Property and Business Improvement District or “PBID”.

PBIDs have been used successfully in over 200 business districts throughout California over the past 15 years. As a result of this exploratory effort, the City Council agreed to fund the formation of a PBID in the Downtown Village area.

A PBID formation Committee was assembled in early 2011 to work with a PBID Consultant to review, analyze and draft all the necessary components of a PBID formation proposal. Included in the Committee’s review were District boundaries, benefit zones, a work plan, a budget and an assessment formula. This group met approximately twice a month from January through October to analyze each and every aspect of a PBID and to assist in the development and preparation of a Management District Plan, a guiding document that will be used by stakeholders initially to consider when signing petitions and casting ballots and then eventually as the master plan to guide the ongoing management and implementation of PBID activities and improvements.