To: Honorable Mayor and Members of City Council
From: Vin Smith, Community Development Director
Prepared By: Jennifer Owen, Economic Development Program Coordinator
TITLE:
Title
FY 2024-2025 Annual Report for the Downtown Napa Property and Business Improvement District (PBID) and Levy of Assessments
LABEL
RECOMMENDED ACTION:
Recommendation
Adopt a resolution approving the FY 2024-2025 Annual Report for the Downtown Napa Property and Business Improvement District (PBID), levying assessments in the PBID, and determining that the actions authorized by this Resolution are exempt from CEQA.
Body
DISCUSSION:
The Napa Downtown Association (“NDA”) has submitted on behalf of the PBID Owners’ Association the annual budget, programs and promotional events, and roster of officers for the period July 1, 2024 to June 30, 2025, for the Downtown Napa Property and Business Improvement District (PBID). The PBID boundaries span the general area in the central Downtown Napa core and Oxbow area, along the Main Street corridor on the west side of Soscol, and along the First, Third and McKinstry Street corridors between Soscol and Silverado Trail, as shown on the map in Exhibit “A” to Attachment 1, and are split into two assessment zones, Zone 1 and Zone 2. Rates for each zone are included under Levy of PBID Assessments in this staff report.
The PBID was originally formed in 2005. It was renewed in 2010 for an additional five years, in 2015 for a third five-year term and on July 21, 2020 for an additional 5 year period ending in June 2025. Funds generated in one zone must be spent on promotions and activities in that particular zone. In accordance with the contract obligations contained in City Agreement 9354, “Napa Downtown Association Agreement, Management of Assessment Districts”, the NDA must prepare and file with the City an annual report which describes improvements and activities that will be performed by the NDA in the upcoming fiscal year using property taxes generated by the PBID in accordance with Streets and Highways Code Section 36650.
The City collects PBID property taxes from merchants within the PBID boundaries and pays those tax revenues to the NDA, and the NDA manages expenditures of the tax revenues for improvements and activities identified in the annual report, all under the terms of Agreement 9354.
Summary of Annual Report
A summary of the full annual report (See Exhibit “A” to Attachment 1) is as follows:
1. There have not been any boundary changes or proposed boundary changes for the 2024-2025 fiscal year. Some classifications have been changed, reflected on the parcel list.
2. The NDA plans to produce the following improvements and activities in FY 2024-2025:
Beautification, Maintenance & Infrastructure, Zones 1 and 2 ___ $420,292.70
• Wayfinding Signage Installation & Maintenance
• Hanging Flower Baskets on 160 Light Poles
• Christmas Holiday Lighting & Garland, Pre-Thanksgiving thru Week 1 January
• Sidewalk and Parking Garage Supplemental Cleaning
• Utility Box Art, Decorative Wrap Designs throughout Downtown Napa
Marketing __ $226,586.34
• Ambassador Program, Four 2-person teams providing personal assistance, direction and recommendations
• Fridays In the Park, free Veterans Park summer concerts and picnic opportunities
• Napa Table, Alfresco Dining down Main Street between First & Third Streets
• Production of Historic Downtown Napa Maps
• Other Special Events
Administration_______________________ ___$106,635.40
Perform day-to-day tasks and programming as directed by the PBID Owners’ Association.
3. The DNA estimates it will cost $753,514.44 to manage and promote PBID.
4. Assessments are based on the property size and use, location within Zone 1 or Zone 2, and are collected by the County via property taxes. This method was authorized under renewal of the PBID in 2020, as outlined in the Management District Plan. Assessment revenues are passed through to the City and onto the PBID. See Exhibit B Chart of Assessments.
5. The carryover from the 2023-2024 fiscal year is $316,644.
Levy of PBID Assessments
The City Council authorizes the levy of annual assessments on properties within the boundary of the PBID. Assessment rates are determined by the location, size and use of the property. Annual increases are calculated based on the percentage difference from year-to-year as determined by the Consumer Price Index (CPI) for All Urban Consumers, San Francisco/Oakland/San Jose Local Area Index, with a maximum annual increase of three percent. As required by the California Streets and Highways Code Section 36650 (b) (4), a chart of PBID properties showing the adjusted rates and assessments is attached as Exhibit “B”.
As noted in the attached Exhibit B, Chart of Assessments to be Levied for 2024-2025, PBID property assessments on 273 eligible properties will total $546,768. Each year, PBID assessments rates are increased based upon year-over-year CPI for the SF Bay Area, not to exceed 3% per year.
For FY 24-25, rates per property square-foot are as set forth in the Management District Plan:
Retail Non-Retail Parking Vacant
Zone 1 $0.2578 $0.1722 $0.0855 $0.0427
Zone 2 $0.0855 $0.0855 $0.0427 $0.0427
A breakdown of parcel count and projected revenue is as follows:
• Zone 1: 167 parcels
• 61% of PBID area is in Zone 1
• 66.4% of expected revenue to be generated from Zone 1: $363,544
• Zone 2: 106 parcels
• 39% of PBID is in Zone 2
• 33.6% of expected revenue to be generated from Zone 2: $183,224
Assessments levied by this action will be itemized on owners’ 2024/2025 property tax bill, collected by the Napa County Tax Assessor and forwarded to the City. The City Finance Department issues payment of these funds to the NDA/PBID Owners’ Association to fund work program. As indicated by Exhibit “B” in the attached resolution, the PBID Owner’s Association is estimated to receive approximately $546,768 in assessment revenue from the 273 qualifying properties.
FINANCIAL IMPACTS:
There are 27 properties in the PBID that are owned by various City entities, including the City of Napa, Housing Authority, and the Parking Authority. Twenty-three parcels contain parking lots or structures, and four are office buildings. The assessment on the City’s properties for the upcoming year will be approximately $64,260 which is part of the City’s budget.
CEQA:
City staff recommends that the City Council determine that the Recommended Action described in this Agenda Report is exempt from CEQA pursuant to CEQA Guidelines Section 15301 Existing Facilities (minor alterations of existing streets and sidewalks).
DOCUMENTS ATTACHED:
ATCH 1 - Resolution
EX A - 2024-2025 Annual Report for the PBID
EX B - PBID Chart of Assessments to be Levied for FY 24/25
NOTIFICATION:
The NDA and Napa PBID Owners’ Association were notified of this agenda item prior to the meeting date, a public hearing notice was published in the Napa Valley Register on June 8, 2024, and the agenda was posted in publicly accessible locations as required by law.