The property owners in downtown San Bruno are exploring the feasibility of creating a property-based business improvement district (PBID). Currently, they are sponsoring a series of focus group meetings with property owners and merchants to determine the types of services and improvements that should be included in a business plan for downtown. Check back at this web page to see how the PBID process is progressing.
Have questions? Contact Nancy Hormann of Hormann Associates (818-386-9038) or the San Bruno City Planning Department (650-877-8855).
What is a BID?
A Property-Based Business Improvement District is based upon the "benefit assessment district" concept, which provides for an assessment on commercial property to be raised within a geographic district with proceeds directed back to the district to provide services that benefit it.
Modeled after laws in more than 40 states the "Property and Business Improvement District Law of 1994" ushers in a new generation of management districts in California by allowing a greater range of services and independence from government. Today there are over 1,200 BID's in operation throughout the U.S. and Canada
Key provisions include:
· Wide range of service options, including security, maintenance, marketing, economic development, special events, etc.
· Governed by those who pay.
· Encourages private sector management.
· Requires petition support from private property owners paying more than 50% of proposed private property assessments.
· Requires caps on assessments and a 5-year life for a district, requiring a new petition process to renew.
How will the District be funded?
The State of California enabling legislation allows property owners to assess themselves a fee for enhanced services. During the course of the study process the most efficient and equitable way to raise resources is determined.
Stakeholders should agree on an assessment formula for the District that will be fair, balanced and commensurate with benefits received.
The revenues would be raised directly by the BID and would be used entirely within the designated area. To ensure existing services remain at current levels, a ìbaseline policy with The City, guaranteeing the continuance of existing services should be endorsed by the City Council.
Who controls how the funds are spent?
The legislation requires that a business plan be developed and approved by the property owners specifying a governance structure which will be made up primarily of property and business owners in the BID. The group or "Advisory Committee" will decide how the funds are spent and make the final decisions on proposed guidelines including program area and budget. While the Advisory Committee must report to the City Council annually, the municipal government has no control over the expenditures of these resources.