DEPARTMENT: Center City Development & Operations Department
DEPARTMENT HEAD: John Jacks, Interim Director
COUNCIL DISTRICTS IMPACTED: 1
SUBJECT:
Public hearing and consideration of an Ordinance approving the levy of a Special Assessment for the Downtown Public Improvement District; levying an assessment rate for Fiscal Year 2017 at $0.15 per $100.00 value of real property in the Downtown Public Improvement District and $0.09 per $100.00 value of residential condominiums; and approving the Fiscal Year 2017 Service and Assessment Plan for the Downtown Public Improvement District.
SUMMARY:
This public hearing is called to consider public comment in conjunction with City Council consideration of an Ordinance approving the levy of a special assessment to fund supplemental services for the Downtown Public Improvement District (PID); maintaining an assessment rate at $0.15 per $100.00 value of commercial real property in the PID and $0.09 per $100.00 value of residential condominiums in the PID; and approving the 2017 Service and Assessment Plan (the Plan) for the PID.
BACKGROUND INFORMATION:
A public improvement district is a mechanism authorized by Chapter 372 of the Local Government Code, known as the Public Improvement District Assessment Act (the Act), that permits the City to levy an additional assessment on property owners within specified boundaries that may be used for capital improvements or services which supplement those provided by city government. The Downtown PID was created in 1999 for an initial five-year term and was renewed again in 2004 and 2009. In May 2013, the City Council reauthorized the PID for a ten-year term beginning October 1, 2013 through September 30, 2023.
The Act provides for the creation of PIDs, outlines their uses and regulates how they may operate. A PID is created to provide supplemental services to enhance existing services, and a municipality may not reduce the provision of services within the PID boundaries. Attachment A is a map of the PID boundary.
The City contracts with the Centro Public Improvement District (Centro PID), a non-profit corporation to manage services within the PID. The Centro PID provides supplemental core services for the downtown experience; maintenance, landscaping/street-scaping and hospitality services; programs and other services such as the marketing and promotion of the District and business recruitment and retention activities; planning and research initiatives, and a Capital Improvement Program (CIP) that consists of small capital projects and other special projects of short duration. This plan details the levels of services and improvements for each program during the coming year, sets the assessment rate, includes financial plan/program budget and provides a five-year forecast.
ISSUE:
The Centro PID has developed and is recommending the attached Service and Assessment Plan for 2017 (Attachment B). The Plan reflects a total annual budget of $5,783,900.00 with the following program services:
• Maintenance to include sidewalk cleaning, pressure washing and graffiti abatement services performed by uniformed Centro PID crews. ($1,698,000.00)
• Landscaping including servicing light-pole mounted planters throughout the district, stair-rail planters along the River Walk and clusters of sidewalk planters throughout the PID.($353,000.00)
• Branding and marketing to develop and implement a branding, marketing and public relations campaign describing the services and activities in and around the District promoting programs, services, festivals and activities in and surrounding the District. ($528,000.00)
• Hospitality Ambassador Program provides information to downtown visitors about various downtown sites. ($807,900.00)
• Management services including oversight staff, administrative support, office space and overhead necessary for the daily services of the PID. ($742,000.00)
• District Operations Center funds provide management oversight of District Operation and office space for the daily District Operations. ($216,000.00)
• Business retention and recruitment program that includes the on-going development and implementation of an enhanced business retention and recruitment program and collaboration with the Economic Development Foundation, the City’s Economic Development Department and the San Antonio Chamber of Commerce in this area. ($214,000.00)
• Planning and research includes staff resources that will provide strategic direction and engage with property owners within the District to explore development opportunities. ($237,000.00)
• Other Projects will include partnering with the City for an update to the 1999 Downtown Neighborhood Plan and may include a pilot program to reduce panhandling within the District and the purchase or lease of security cameras for the use in the District. ($330,000.00)
• Unallocated contingency which may be used for services under any of the above programs with City approval. ($100,000.00)
• Funding is allocated for small capital projects and one-time, short duration programs within the District. ($366,000.00)
The proposed enhancements in this fiscal year include two new programs to enhance the pedestrian experience by engaging people who are experiencing homelessness and exhibiting anti-social behavior. Two Outreach Specialists from Haven for Hope will engage with people who are or appear to be experiencing homelessness within the District. The Corporation intends to enter into an agreement with SAPD to supplement the existing Bike Patrol schedule by expanding it for two hours each morning in areas within the District where there is a perceived lack of sufficient security. ($167,000.00)
The Service and Assessment Plan was approved by the Centro PID Board on Wednesday, August 17, 2016. The Act requires the Plan to be approved by City Council.
ALTERNATIVES:
The City Council is required by the Act to approve the Service and Assessment Plan on an annual basis. If the City Council does not approve the Plan, the City may not implement supplemental services within the PID. The downtown property owners might look to the City to fund the enhanced services they have received in the past seventeen years, which have been funded through the additional assessment.
FISCAL IMPACT:
The method of PID assessment is based on the value of real property as determined by the Bexar Appraisal District. The assessment rate for each year is set in the PID’s Service and Assessment Plan. The total estimated value of taxable real property in the PID for FY 2017 is $2,872,442,841. This represents a 12% increase in the total assessed value of the PID from 2016.
This year the Centro PID is recommending maintaining the assessment levy at $0.15 per $100.00 value. Residential condominiums are proposed to remain assessed at $0.09 per
$100.00 value. This levy will yield $4,166,000.00 in private property assessment.
For FY 2017, the City’s contribution to the PID is $266,310.00 and is based on the estimated value of City owned property within the PID boundaries. This includes facilities such as Municipal Plaza, City Hall, Metro Health Building, International Center, St. Mary’s St and Convention Center parking garages, Plaza de Armas, Spanish Governor’s Palace, Fire Station #1, EMS Supply, Casa de Mexico, Market Square and Market Square garage, Visitor Information Center, Central Library and parking garage, and La Villita. The City’s contribution is included in the FY 2017 budget to be approved by the City Council on September 15, 2016.
The PID budget also includes $294,000.00 from VIA for participation in the PID. These funds provide for the pressure washing of bus stops.
RECOMMENDATION:
Staff recommends approval of the 2017 PID Service and Assessment Plan to fund services and improvements for the Downtown PID.