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DATE: |
December 10, 2024 |
19 |
SUBJECT
Title
EXPLORE THE ESTABLISHMENT OF PROCEDURES TO FORM BUSINESS IMPROVEMENT DISTRICTS WITHIN SAN DIEGO COUNTY AND SUPPORTING FILIPINO ART IN NATIONAL CITY (DISTRICTS: ALL)
Body
OVERVIEW
The establishment of Business Improvement Districts (BIDs) allow communities to collectively improve their commercial areas, with the costs directly funded by the beneficiaries. Some of the successful BIDs in our region, such as in Little Italy and downtown Chula Vista, help improve and energize our downtown main streets and neighborhood commercial centers by successfully funding improvements that enhance the economic activity, public places, culture and support small businesses in that district.
Existing law authorizes cities and counties to establish various districts and other entities to provide improvements and other benefits within their jurisdiction. Existing State law, the Property and Business Improvement District Law of 1994, authorizes cities and counties, and joint exercise of powers agencies comprised of cities and counties, to establish property and business improvement districts for the purpose of financing certain activities and certain improvements on real property located within the district. The exploration of a BID enabling ordinance should include its applicability for district formations in collaboration with both General Law cities and Charter Cities in the region, as well as in unincorporated communities. If the County cannot take advantage of the charter city flexibility in the 1994 law, then the County would follow the regular procedures in the 1994 law to establish any future BIDs.
One such community that is considering establishing a BID is in National City. National City’s Filipino community is a dynamic and integral part of the city’s social fabric, deeply rooted in the city’s history and vibrant in its cultural contributions. According to the U.S. Census Bureau, Filipinos make up about 19 percent of the City of National City’s population and Council District 3 has the highest concentration of Filipino Americans in the nation. Through business, cultural festivals, and community organizations, Filipinos in National City honor their heritage while contributing to the area’s cultural diversity and economic vitality. This potential BID could serve as a regional destination for San Diego County’s 215,000 Filipinos. The exploration of a possible BID in the City of National City may include the installation of murals, banners and other artwork that honors this heritage.
The “Filipino Plaza” area in National City is one such example of the many different unique cultural identities that shapes our region. Organizing and promoting many of our cultural identities through place-based activities and improvements such as BIDs can be catalyzed by a regional arts and cultural strategy led by the Office of Economic Development and Government Affairs in collaboration with local arts commissions across the region, as well as the San Diego County’s Arts and Cultural Commission.
Today’s action would direct the Chief Administrative Office to explore whether the County of San Diego can establish procedures and requirements for the formation and operation of BIDs. In addition, today’s action directs the Chief Administrative Officer to explore funding opportunities to support the installation of Filipino art and activities to celebrate Filipino heritage in National City, as well as advise on projects that uplift the diverse cultural identities of communities across the region, and to include BIDs and other local arts commissions across the region.
RECOMMENDATION(S)
CHAIRWOMAN NORA VARGAS
1. Direct the Chief Administrative Officer to report back to the Board within 120 days with appropriate recommendations including funding source, and actions for the Board to facilitate the formation of Business Improvement Districts, including drafting an enabling ordinance that would establish procedures and requirements for formation and operation of Business Improvement Districts within San Diego County. This includes any necessary legal research and consultation to establish assessment districts within the framework provided by State statutes and the California Constitution, and to reach out to the respective cities to determine interest in the formation of a business improvement district.
2. Direct the Chief Administrative Officer to explore funding opportunities to support the installation of Filipino art and activities to celebrate Filipino heritage in National City, as well as advise on projects that uplift the diverse cultural identities of communities across the region, and to collaborate with Business Improvement Districts and other local arts commissions across the region, including the San Diego County Arts and Culture Commission.
EQUITY IMPACT STATEMENT
Business Improvement Districts (BIDs) can provide an opportunity for small and local businesses to provide residents, visitors and patrons a unique, localized experience. This may lead to more local economic activity that invests in diverse businesses, as well as expanding opportunities in traditionally underserved communities and businesses, especially communities of color and low income. Engagement of small businesses in the strategic planning for arts and culture can elevate some of the unique cultural diversities of San Diego in neighborhood commercial or “main street” pockets across the region. Funding for arts and culture promotes equity, diversity and a sense of belonging for communities across the region. Most notably, the Filipino community residing in National City would experience enhanced health outcomes and stronger community engagement. For example, the community could foster greater social cohesion through the creation of an art place-based space, where they can celebrate and share their heritage, culture, and lineage with one another and with neighboring cities.
SUSTAINABILITY IMPACT STATEMENT
The proposed action exploring Business Improvement Districts (BIDs) and supporting arts and culture within them may provide for place-based activities and improvements in some concentrated commercial areas. These BIDs are a tool to create safe and walkable “main street” environments with high pedestrian traffic. To the extent they may result in lesser driving, that may lead to lowering automobile emissions. In addition, the BIDs would support the San Diego County 2024 Climate Action Plan by reducing greenhouse gases and fostering a more sustainable environment. This would be achieved by creating walkable areas for the Filipino community, such as the development of an art-centered community space in close proximity to their home.
FISCAL IMPACT
Funds for the actions requested are included in the Fiscal Year 2024-25 Operational Plan based on existing staff time in the Finance and General Government Group and Chief Administrative Office funded by General Purpose Revenue. There will be no change in net General Fund cost and no additional staff years. There may be fiscal impacts associated with future related recommendations which staff would return to the Board for consideration and approval.
BUSINESS IMPACT STATEMENT
The pandemic has had an unprecedented impact on small businesses and restaurants, many of which have yet to recover. Providing a tool for revitalization and branding of the County’s downtown “main street” areas and neighborhood commercial areas can provide economic vitality and pedestrian traffic.
Details
ADVISORY BOARD STATEMENT
N/A
BACKGROUND
Business Improvement Districts (BIDs) in California are special districts established to enhance public services and improve economic vitality in specific commercial areas. They are funded by assessments levied on businesses or property owners within the designated area and are managed by local business associations or nonprofit organizations. In California, they are governed by Property and Business Improvement District Law (1994) and the Parking and Business Improvement Area Law (1989). The formation process typically involves a petition by local business or property owners, development of a management plan that details the boundaries, types of services and improvements, assessment rates, budget, and duration, as well as a majority of business or property owner support.
In our region and across the State, BIDs provide activities, improvements and maintenance of public spaces:
• Activities: Promotion of public events and programs; music in public places; promotion of district or neighborhood identity within the district; marketing, planning, zoning, and economic development, including business retention and recruitment; providing security, sanitation, graffiti removal, street and sidewalk cleaning, parking, and other services supplemental to those normally provided by the local agency.
• Improvements: Parking facilities; planting areas, benches, booths, kiosks, display cases, trash receptacles; pedestrian shelters and signs; public restrooms; lighting and heating facilities; decorations; fountains; minor modifications of existing streets, facilities, or equipment, or any combination thereof, to enhance security of persons and property within the district; ramps, sidewalks, plazas, town centers, or pedestrian malls; rehabilitation or removal of existing public structures; installation or planting of landscaping, the installation or construction of statuary, fountains, and other ornamental structures and facilities; and installation or construction of other facilities like electrical, drainage, and irrigation.
• Maintenance: Repair, removal, or replacement of the above improvements; landscaping including cultivation, irrigation, trimming, spraying, fertilization, or treating for disease or injury; removal of trimmings, rubbish, debris, and other solid waste; and the cleaning, sandblasting, and painting of walls and other improvements to remove or cover graffiti.
While condensed in total physical size, downtown main streets and neighborhood commercial centers can provide diverse, inclusive, and resilient community spaces. Some examples of successful BIDs in our region are in Little Italy and downtown Chula Vista. There are an estimated 20 BIDs in incorporated cities in San Diego, and none within the unincorporated areas of the County. BIDs can provide walkable public places, elevate neighborhood and community spirit, and advance local/small business activities. The County has the ability to form BIDs within incorporated cities only with consent of the city council of that city. Due to their higher density and expansive user base, BIDs support a vibrant variety of retail, infrastructure, and institutional uses which can offer mutually reinforcing benefits to the communities in which they are formed.
In a memorandum to the Board of Supervisors on April 24, 2020, the LUEG Deputy Chief Administrative Officer (DCAO) suggested the establishment of BIDs as a potential new program to help remove barriers and provide support for existing and new businesses in response to the COVID-19 emergency. The DCAO memorandum suggested that the County could coordinate with community and business groups to develop business improvement districts to assist in the revitalization of villages and “Main Streets.” There are constraints in existing law that make the use of some types of districts infeasible. The DCAO memorandum suggested that Board of Supervisors’ action was needed on this program, and that the County could focus on forming districts pursuant to laws that can provide for the funding and continued maintenance of improvements through the lifecycle of the improvements. The business improvement districts would finance infrastructure improvements, such as streetscape improvements, shared parking, maintenance, and outreach. This would provide support for existing businesses and attract and encourage new businesses to occupy vacant space that become available, especially those impacted by Covid -19 emergency after the public health order was lifted. Costs to establish the business improvement districts were estimated at approximately $100K-$250K annually and depended on the duration of the program and level of interest. These costs included the evaluation that would need to be completed by staff to assist business groups with the development.
Proposed BID Enabling Ordinance
Most assessments are levied against real property, are generally collected on the property tax roll, are secured by a lien against the assessed property, and are subject to Proposition 218 that was approved by California voters in 1996. A BID created to assess the property would be subject to the procedural requirements of the 1994 law and Proposition 218 (Article XIII C and D of the California Constitution) requirements that determine which properties are included in a benefit assessment district and the apportionment of each assessment. Local agencies must determine the special benefit for each identified parcel and separate the general benefits because only special benefits are assessable. The cost of the assessment cannot exceed the reasonable cost of the proportional special benefit that parcel receives. Property-based assessment districts' notice, protest, and hearing requirements for new, extended, or increase assessments are governed by Proposition 218, which involves mailed protest ballots to all assessed property owners, a 45-day protest period, and a public hearing at which protests are counted and the presence or absence of a majority protest is determined. After complying with notice, protest, and hearing requirements, if a majority protest is not received from property owners, the legislative body may adopt a resolution to establish the assessment district and levy the assessment. Proposition 218 requires a professional engineer’s report to estimate the amount of special benefit to landowners and the amount of general benefit. The Constitution defines a “special benefit” as a particular and distinct benefit over and above general benefits conferred on real property located in the district or to the public at large. General enhancement of property value does not constitute “special benefit.”
The 1994 law also allows assessments to be imposed against the business and/or against the property. Additionally, charter cities can establish their own process for approval of a BID. If the flexibility under this law for charter cities extends to the County, the County could adopt a proposed BID enabling ordinance, which would establish procedures and requirements for the formation and operation of the BID with community engagement, that are informed by the experience of similar successful districts in the region and the State. Further research is required to determine if the County has this option.
If this option is available, the procedures established by County ordinance could be more flexible than those required by the 1994 law. Some of the potential considerations for the procedures may include the requirement for a petition to be signed by property owners in the proposed district at a minimum who will pay more than 30 percent of the assessments proposed to be levied, and the inclusion of community groups in an advisory role. The ordinance could provide for guidelines on public/community meetings, majority protest, duration of district - such as not to exceed 20 years, duration of assessments that can provide for the funding and continued maintenance of improvements through the lifecycle of the improvements, as well as the description of “special benefits” from the specified activities, improvements, and maintenance to be funded by the district. It may also provide for the operation of the BID by a nonprofit management company with regular updates to the community. The exploration of this enabling ordinance should include its applicability for district formations in collaboration with both General Law cities and Charter Cities in the region, as well as in unincorporated communities. If the County cannot take advantage of the charter city flexibility in the 1994 law, then the County would follow the regular procedures in the 1994 law to establish any future BIDs.
Filipinos in National City
The Asian American and Pacific Islander (AAPI) community encompasses a broad and diverse range of ethnicities and cultural groups consisting of almost 502,000 people in San Diego County. Within this multicultural AAPI umbrella in the region, Filipinos constitute the largest share - about 42 percent. National City has a significant Filipino community, with a rich cultural and historical presence that has helped shape the city’s identity. It has one of the largest Filipino populations per capita in the United States. According to the 2020 U.S. Census, Filipinos (either alone or in combination with other races) make up 19% of the city’s population, contributing to its multicultural diversity. Specifically, National City Council District 3 has the highest concentration of Filipino Americans in the United States. The community includes both first-generation immigrants and U.S.-born Filipino Americans. This generational mix contributes to a blend of traditional and modern Filipino culture within the city. The proximity of military bases in San Diego has also meant that a significant number of Filipino Americans in National City are veterans or active-duty personnel.
The “Filipino Plaza” area of National City has a concentration of Filipino-owned businesses, restaurants, and shops that offer traditional Filipino goods and services especially in food, retail, and healthcare. The surrounding area going eastward along Plaza Boulevard provides cultural products, services, and cuisine, contributing to the local economy and job creation. The district serves as a hub for community events, cultural programs, language and heritage preservation, and a regional anchor for San Diego county’s 215,000 Filipinos and the larger AAPI community. Filipino cuisine is highly visible in National City, with numerous restaurants offering traditional dishes like adobo, lumpia, and halo-halo. The annual Filipino Mabuhay Festival, held in the city, is a vibrant celebration of Filipino culture, featuring traditional dance, music, and food, attracting thousands each year. National City is also investing in infrastructure improvements, such as the Eastside I-805 Community Greenbelt Project (Greenbelt Project). The Greenbelt Project includes improvements along the east side of I-805 from Plaza to Division Street and will include improved paved paths for bikes and pedestrians, new fencing along the freeway, lighting, public art, educational signage, and landscape improvements.
The exploration of a possible BID in the City of National City would require outreach to its city council and may include the installation of murals, banners and other artwork that honors this heritage, as well as cultural activities that promote the identity of the proposed district.
The San Diego Arts and Culture Commission was established by the Board of Supervisors (Ord. No. 10800 (N.S.), effective 7-28-22; amended by Ord. No. 10867 (N.S.), effective 11-23-23) to promote greater cultural equity, access, and inclusion; to champion the arts as essential to daily life by investing in a vibrant arts community; shape innovative cultural policy; and build public awareness of the value and benefits of the arts and cultural diversity. This regional commission is staffed by the Office of Economic Development and Government Affairs and is in the process of developing a Strategic Plan. There are other local arts commissions established by other cities in the region as well that would be included in the collaborative approach in funding cultural and business districts.
LINKAGE TO THE COUNTY OF SAN DIEGO STRATEGIC PLAN
Today’s actions support the County of San Diego 2024-2029 Strategic Plan Initiatives of Community and Equity by providing a new program that can enhance the community through increasing the well-being of our residents, businesses and our environments, as well as expanding opportunities in traditionally underserved communities and businesses, especially communities of color and low income.
Respectfully submitted,
NORA VARGAS
Supervisor, First District