Title
Recommendation to Approve the Webster Street Business Improvement Area Annual Assessment Report;
Adoption of Resolution of Intention to Levy an Annual Assessment on the Webster Street Business Improvement Area of the City of Alameda for Fiscal Year 2026-27; and to Set a Public Hearing for May 5, 2026. (Base Reuse and Economic Development 10061810)
Body
To: Honorable Mayor and Members of the City Council
From: Adam W. Politzer, Interim City Manager
EXECUTIVE SUMMARY
The Webster Street Business Improvement Area (BIA), which is managed by the West Alameda Business Association (WABA), is funded from an assessment collected by the City of Alameda (City) from all businesses within that business district. Every year, WABA presents a report to the City Council on the activities and expenditures that have occurred during the past fiscal year. The annual report also provides recommendations on the proposed expenditure of BIA revenues for the next fiscal year.
Per the Alameda Municipal Code (AMC), each year the BIA assessment has an automatic Consumer Price Index (CPI) increase based on the San Francisco Area CPI. This year’s CPI of 3.0 percent would raise the minimum retail business annual fee by $11.00, to a total of $381.00.
Staff requests that the City Council adopt a resolution setting a public hearing on May 5, 2026 to levy the annual BIA assessment for Fiscal Year (FY) 2026-27.
BACKGROUND
In 1989, following the Parking and Business Improvement Area Law of 1979 in the California Streets and Highways Code, the City Council established regulations for Business Improvement Areas (BIAs) in the Park Street and Webster Street commercial areas. This staff report is for the Webster Street BIA, which is managed by WABA.
The BIA is funded from fees collected by the City from all businesses within the business district. The pooling of resources improves the business district as a whole and directly benefits business owners through the general promotion of business activities and public events, beautification and ambiance, construction and maintenance of parking facilities, and special projects benefiting the business area.
State law and the AMC require the City Council to work in collaboration with a BIA advisory board. The board prepares an annual report and provides recommendations to the City Council on the proposed expenditure of BIA revenues for its geographic area. The AMC also requires an annual review by the City Council and yearly consideration of the assessment.
DISCUSSION
WABA’s Board of Directors, designated as the BIA’s advisory board, has prepared the Annual Assessment Report for fiscal year (FY) 2026-27 (Exhibit 1). The report describes, in general terms, the activities and expenditures that have occurred in the Webster Street BIA during the current fiscal year, FY 2025-26, as well as a work plan outlining proposed use of BIA funds for the next, FY 2026-27. Base Reuse and Economic Development Department staff reviewed the report and found it to be complete and reasonable.
In 2025, WABA celebrated Webster Street’s 150-year anniversary by installing a cohesive banner series that functioned as both place-making and marketing. As part of this celebration, WABA rebranded the Healing Garden, at 1435 Webster Street as Webster Park and continues to host community events that support local non-profit organizations. WABA also continues to host two popular farmers’ markets each week, providing fresh, affordable produce, meats, and baked goods to the local community. In 2025, ten new businesses joined the district.
WABA formally brought on marketing and social media consultants to do coordinated storytelling across multiple platforms and promote Webster Street activities. This led to a significant increase in social media views that highlighted specific businesses and likely increased customers in an effort to solidify Webster Street as a strong commercial corridor for events, food and vibrancy. They also advocated for more communication regarding the Oakland Alameda Access Project and helped their businesses prepare for access and travel pattern changes. The Webster Tube will be closed overnight from 10pm to 5am, Sunday through Thursday, starting in April, so less impacts are anticipated.
The City’s Economic Development Department and Code Enforcement are also working with DABA and WABA to address vacant storefronts through a combination of marketing, support and enforcement. Economic Development staff also support existing businesses in the Park Street and Webster Street business districts.
The Webster Street BIA currently has approximately 215 members, and annual fees vary depending on the type of business. The BIA consists of a single zone. The assessment is calculated based on gross receipts. There is a minimum and a maximum assessment. A minimum assessment was established to ensure that there would be sufficient funds to administer the BIA. The maximum assessment acknowledges that there are a few business types (gas stations, fast food restaurants, etc.) whose gross receipts are much higher than other retailers and that a cap would be appropriate for those businesses. The Webster Street BIA also has an assessment surcharge for retailers larger than 30,000 square feet such as Target and Safeway.
Per the AMC, each year the BIA assessment has an automatic Consumer Price Index (CPI) increase based on the San Francisco Area CPI. This year’s CPI of 3.0 percent would raise the minimum retail business annual fee by $11.00 to a total of $381.00.
Included with this report is the FY 2026-27 BIA assessment fee schedule with the 3.0 percent CPI adjustment (Exhibit 2), a map of the BIA (Exhibit 3), and a BIA address list (Exhibit 4).
The annual BIA assessment requires a two-step process. First, City Council must approve the Annual Assessment Report and pass a Resolution of Intent to Levy an Assessment. Second, City Council must set a public hearing to approve the new assessment. The public hearing is scheduled for May 5, 2026. At the public hearing, the City Council can modify the Assessment Report or confirm the report as filed. At the public hearing, City Council may also decide not to include the annual CPI adjustment to the assessment fees. According to the AMC, Section 6-7.13(b):
During the course or upon the conclusion of the public hearing, the City Council may order changes in any of the matters provided in the report, including changes in the proposed assessments.
All BIA members will receive notification of the public hearing, in addition to instructions on how to protest the BIA renewal, should they wish to do so. FY 2026-27 assessments cannot be levied if protests are received by the owners of businesses in the area which will pay fifty percent (50%) or more of the proposed assessment.
ALTERNATIVES
• Approve the Webster Street BIA annual report, adopt a Resolution of Intention to Levy an Annual Assessment, and set a public hearing for May 5, 2026 to levy an annual assessment for the Webster Street BIA.
• Postpone the public hearing until a future City Council meeting.
• Decline to adopt the Resolution of Intention to Levy an Annual Assessment
FINANCIAL IMPACT
BIA billing is done concurrently with Business License billing. Revenues from the BIA directly benefit business owners in specified geographic and benefit zones through the promotion of business and similar eligible activities. The primary financial impact to the General Fund is in the form of Finance Department staff costs to process BIA billings and expenditures, estimated to be approximately $6,500 annually ($1,856 for WABA and $4,644 for DABA) and included in the Business License Program Budget (Fund 10024056).
The Base Reuse and Economic Development Department staff works closely with WABA, attending monthly board meetings and subcommittee meetings, estimated to be $2,300 annually (Fund 10061810). This staffing cost has been absorbed within existing staff workloads to provide indirect financial support to the business districts.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
Citywide Strategic Plan TIE 26: “Expand Citywide business economic development activities”
The annual renewal of the BIA supports the goals of the Economic Development Strategic Plan (EDSP) through continued operation of the business association consistent with AMC. Sec. 6-7 et seq.
EDSP Strategy 4 states: “the City of Alameda’s role is to continue to support existing shopping and dining districts by working with private property owners and business associations to improve retail spaces and the public realm”.
ENVIRONMENTAL REVIEW
This action does not constitute a “project” as defined in California Environmental Quality Act (CEQA) Guidelines Section 15378 and therefore no further CEQA analysis is required.
CLIMATE IMPACTS
There are no identifiable climate impacts or climate action opportunities associated with the subject of this report.
RECOMMENDATION
Approve the Webster Street Business Improvement Area Annual Assessment Report; Adopt a Resolution of Intention to Levy an Annual Assessment on the Webster Street Webster Street Business Improvement Area for Fiscal Year 2026-27; and Set a Public Hearing for May 5, 2026 to Levy an Annual Assessment on the Webster Street Webster Street Business Improvement Area.
Respectfully submitted,
Abigail Thorne-Lyman, Base Reuse and Economic Development Director
By
Cesar Mesias, Economic Development Specialist II
Financial Impact section reviewed,
Ross McCarthy, Finance Director
Exhibits:
1. WABA’s Annual Assessment Report
2. BIA Assessment Fee Schedule FY 2026-27
3. BIA Boundaries Map
4. BIA Address List
cc: West Alameda Business Association