To: Honorable Mayor and Members of City Council
From: Molly Rattigan, Interim Community Development Director
Prepared By: Jennifer Owen, Economic Development Program Coordinator
TITLE:
Title
Downtown Napa Property and Business Improvement District Renewal Public Hearing
LABEL
RECOMMENDED ACTION:
Recommendation
Adopt a resolution (1) declaring the results of the Majority-Protest Proceedings; (2) renewing the Downtown Napa Property and Business Improvement District (DNPBID) for a seven-year term from January 1, 2026 through December 31, 2032; and (3) approving the Assessment Formula and levying Assessments in the DNPBID.
Body
DISCUSSION:
Overview
The Downtown Napa Property and Business Improvement District (DNPBID), formed in February 2005, is a benefit assessment district that funds marketing programs such as advertising and events, environmental enhancements such as circulation improvements, landscaping, artistic amenities, street furniture, lighting, signage, and services that create a benefit to the member properties. These benefits are concentrated within the distinct geographic boundaries of the DNPBID and are funded by means of a special assessment on parcels within the DNPBID boundary, currently totaling 273 individual assessed parcels.
The DNPBID is managed by the Napa Downtown Association (NDA) and overseen by a Board made up of property owners in the district or their designated representatives.
Background
The DNPBID has been renewed every five years starting in 2010. This renewal period, they are seeking approval to renew for a seven-year term. To date, City Council has taken the following actions relating to the current DNPBID renewal process:
• On April 1, 2025, a Special Meeting of the Housing Authority, Parking Authority, and City Council was held where each body adopted a resolution authorizing the City Manager to sign any documents necessary to grant property owner approval for City owned property to renew the DNPID for a seven-year term from January 1, 2026 - December 31, 2032. (R2025-31, HA2025-001, NPA2025-001)
• On April 15, 2025, City Council adopted a Resolution of Intention to initiate proceedings to renew the DNPBID and schedule a public hearing for Tuesday, June 17, 2025 at 6:30pm. (R2025-38)
If the majority of the ballots being tabulated at the June 17th 2025 meeting (weighted by assessment) are in favor of the assessment, the Council can adopt a resolution of renewal (Attachment 1), which will renew the Downtown Napa PBID for an additional seven years. Today’s actions will conclude City Council’s actions for the DNPBID Renewal Process.
Assessment Rates
Parcel assessments are based on parcel size, land use and benefit zone. The special benefits to be funded by the renewed DNPBID, if approved, are described in the Management District Plan (Attachment 2) and fall into four main categories. The Plan proposes four budget categories of service for the 2026 - 2032 term and the percentage of total budget for each category:
|
PBID Term |
Beautification Maintenance Infrastructure |
Marketing Ambassador Safekeeping |
Advocacy & Administration |
Total |
|
2026-2032 |
60% |
30% |
10% |
100% |
|
2020-2025 |
54.10% |
30.82% |
13.24% |
100% |
|
% Change |
+10% |
-2.66% |
-24.47% |
|
Properties in the DNPBID boundary are designated in two separate Zones, 1 and 2 (see Exhibit A in Attachment 1). Parcels in Zone 1 are those located in the Downtown Core and Oxbow District, which are commercially intensive, highly visible and would receive a greater level of special benefit. Those parcels in Zone 2 are located on the periphery of the district and would not receive as much special benefit as those in Zone 1; accordingly, the rates are higher for commercial uses in Zone 1 to reflect the projected higher level of special benefit.
Find in Attachment 3 an exhibit Chart of Assessments to be levied for FY 25/26 that shows the final assessments by zone, with the owner and property use. It is slightly different than the chart in the Management District Plan (Attachment 2) where assessments are precisely calculated, as the assessments shown in Attachment 3 reflect the assessments in whole, even dollars, as the County of Napa requires when reflected upon the owners' property tax statements. It will accompany the Certified Resolution, which is also required by the County each year when the assessments are submitted.
FINANCIAL IMPACTS:
Renewal of the DNPBID would assess properties owned by the City, Housing Authority and Parking Authority at a combined total of $66,154.19 for calendar year 2026 and up to $69,461.90 for calendar year 2027. The annual assessment on each parcel is subject to an annual increase not to exceed 3% each year for actual program cost increases plus an optional 2% for special improvement projects. Rate increases would offset any annual labor and expense increases realized by the DNPBID in order to maintain continual levels of service from year to year plus any programmed special improvement projects. The annual DNPBID payment would be included for approval in the City’s two-year budget for fiscal years 2025-2026 and 2026-2027 as a General Fund expenditure. The DNPBID Owners’ Association is required to submit an annual report to the City each year outlining the assessment rate per parcel, and the City’s proposed assessment amount is provided each year at this time. The City levies the annual DNPBID assessments for collection by the Napa County Tax Collector.
CEQA:
The Interim Community Development Director has determined that the Recommended Action described in this Staff Report is not in-and-of-itself a “project” pursuant to CEQA Guidelines Section 15378 since it does not result in a physical change in the environment. However, the Recommended Action is a part of a larger “project” that will be subject to environmental review in accordance with CEQA at the “earliest feasible time” prior to “approval” consistent with CEQA Guidelines Sections 15004 and 15352. The larger “project” includes the individual improvements funded by DNPBID revenue, some of which may be categorically exempt, but some of which may require further CEQA analysis after design work is completed and prior to approval of construction.
DOCUMENTS ATTACHED:
ATCH 1 - Resolution
EX A - Map of Proposed DNPBID Boundary 2026 - 2032
ATCH 2 - Management District Plan
ATCH 3 - Exhibit for PBID Assessments Levied
NOTIFICATION:
Property owners in the proposed DNPBID were provided notice of this hearing on ballots mailed April 30, 2025. The DNPBID Owners’ Association and Downtown Napa Association have been notified of this agenda item. A public hearing notice was published in the Napa Valley Register on Thursday, June 5, 2025, and an agenda has been posted in publicly accessible locations as required by law.