City Council Agenda
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Memo to: |
Manteca City Council |
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From: |
Barbara Harb, Interim Director of Development Services |
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Prepared by: |
Barbara Harb, Interim Director of Development Services |
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Date: |
April 2, 2024 |
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Subject: |
Downtown Manteca Community Benefit District |
Recommendation:
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Adopt a resolution to form the Downtown Manteca Community Benefit District and authorize the City Manager to sign the ballot for City-owned property in favor of the district formation.
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Background:
Community Benefit Districts (also known as Property and Business Improvement Districts) offer a mechanism for property owners within these special assessment districts to provide supplemental services, programs, and improvements they might not otherwise have the ability to undertake or afford.
Downtown Manteca is an important, historic business center within the community, the City retained New City America, Inc. (the “Consultant”) to explore forming a business improvement area (the “Downtown Manteca Community Benefit District”) and identify areas for potential new multi-family development, cultural activities, and events in the Downtown. After months of discussions, surveys, and a series of meetings with downtown property owners, a consensus was developed among property owners to pursue establishing such a district. Property owners also identified key categories in which they would like to see funded through the proposed District, which have been incorporated into the Management District Plan. This unique benefit assessment district will enable downtown property owners located within the proposed District to work together to fund programs, improvements, and services that are above and beyond what the City of Manteca currently provides.
The California State legislature enacted the Property and Business Improvement District (PBID) Law of 1994, which authorizes cities to levy assessments within a business improvement area. PBID Law requires that potentially affected property owners in the proposed district that will collectively pay more than 50% of the assessment proposed to be levied sign a petition to establish the district.
The Consultant sent petitions to all potentially affected downtown property owners, including the City, in June 2023. The petitions were sent consistent with the requirements outlined in Section 36621 of the California Streets and Highways Code. As a result, downtown property owners expressed their support of the District by submitting petitions to the City that met the 50% threshold required to proceed with the formation process.
Further, Section 36622 of the California Streets and Highways Code requires that a district management plan be created as part of the formation of the District. The Downtown Manteca Community Benefit District Management District Plan, including the Assessment Engineer’s Report, (attached as Exhibit “A” to the resolution) has been completed and, as agreed to by a committee of downtown property owners and merchants, includes the following categories and corresponding percentage of funds allocated to each category:
• Civil Sidewalks (50%)
• District Identity and Placemaking (25%)
• Administration (20%)
• Contingency/Reserve (5%)
The City is the owner of APNs 217-210-10, 217-210-11, 217-210-12, 217-210-16, 217-210-18, 217-210-19, 217-210-28, 217-210-34, 217-210-35, 217-210-36, 217-210-50, 217-210-51, 217-210-64, 217-210-71, 219-400-07, 219-400-08, 219-410-12, 219-410-13, 221-030-25, 217-210-17, and 221-020-35 (collectively, the “Downtown City Properties”) located within the proposed Downtown Manteca Community Benefit District. The City petition shows the collective amount of the proposed assessments to be levied on the Downtown City Properties of $40,959.15.
The collective total amount of the assessments for the entire proposed Downtown Manteca Community Benefit District is $184,781.
The City does not have the means to revitalize Downtown Manteca on its own and the engagement and support of property owners and merchants is critical to growing and enhancing this vital business center. The proposed $188,552 annual budget ($184,781) in assessments, plus $3,771 in non-assessment revenue) will allow for improvements and activities that provide special benefits in favor of downtown property owners and businesses.
The City Council may initiate proceedings to form the Downtown Manteca Community Benefit District by the adoption of a resolution expressing its intention to form a district. The resolution of intention shall contain the following:
1. A brief description of the proposed activities and improvements, the amount of the proposed assessment, a statement as to whether the assessment will be levied on property or businesses within the district, a statement as to whether bonds will be issued, and a description of the exterior boundaries of the proposed district. The descriptions and statements do not need to be detailed and shall be sufficient if they enable an owner to generally identify the nature and extent of the improvements and activities and the location and extent of the proposed district.
2. A time and place for a public hearing on the establishment of the property and business improvement district and the levy of assessments, consistent with the requirements of Section 36623 which requires that the notice, protest and hearing procedures comply with Section 53753 of the Government Code.
Staff recommends that Council adopt the resolution of intention, pursuant to Section 36621 of the California Streets and Highways Code, to form the Downtown Manteca Community Benefit District. Following the adoption of the resolution of intent, staff will comply with Section 36623 of the California Streets and Highways Code and Section 53753 of the California Government Code regarding the notice, protest and hearing procedures.
Fiscal Impact:
There is no fiscal impact with this action.
Documents Attached:
1. Attachment 1 - Resolution of Intention
2. Attachment 2 - Exhibit “A” to the Resolution - Management District Plan including Engineer’s Report