Title
Public Hearing to Consider Adoption of Resolution Confirming the Park Street Business Improvement Area Report for Fiscal Year 2025-26 and Levying an Assessment on the Park Street Business Improvement Area of the City of Alameda with a Consumer Price Index Adjustment of 2.4 Percent for Fiscal Year 2025-26. (Base Reuse and Economic Development 10061810)
Body
To: Honorable Mayor and Members of the City Council
From: Jennifer Ott, City Manager
EXECUTIVE SUMMARY
The Alameda City Council is holding a public hearing to levy an annual assessment on the businesses within the Park Street Business Improvement Area (BIA), which is managed on behalf of the City of Alameda (City) by the Downtown Alameda Business Association (DABA). The public hearing allows business owners in the BIA an opportunity to comment on or protest, the proposed annual assessment.
On April 15, 2025, City Council adopted a resolution declaring its intention to set the proposed Fiscal Year (FY) 2025-26 BIA levy with the annual Consumer Price Index (CPI) adjustment of 2.4 percent.
Staff requests that City Council hold a public hearing and adopt a resolution to confirm the Park Street BIA’s annual report and to levy the annual BIA assessment for FY 2025-26.
BACKGROUND
In 1989, pursuant to Streets and Highways Code Section 36500, et seq., the City Council established regulations for BIAs in the Park Street and Webster Street commercial areas. This staff report is for the Park Street BIA, which is managed by DABA.
The Park Street 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 Alameda Municipal Code (AMC) require 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 a yearly consideration of the assessment.
On April 15, 2025, City Council approved the Downtown Alameda Businesses Association (DABA) annual assessment report for FY 2025-26, with its projected activities, budget (Exhibit 1). Base Reuse and Economic Development Department staff reviewed the report and found them to be complete and reasonable. City Council also received the BIA Assessment Fee Schedule (with the annual CPI adjustment, as requested), BIA Boundary Map, and the BIA Address list (Exhibits 2, 3, and 4). Lastly, City Council adopted a Resolution of Intention to Levy an Annual Assessment on the Park Street BIA and set a public hearing for May 6, 2025.
DISCUSSION
The Park Street BIA is divided into two areas, Area A and Area B. Businesses in Area A are in closer proximity to the retail core and pay a slightly higher rate than businesses in Area B. Pursuant to the AMC, each year the BIA assessment has an automatic CPI increase based on the San Francisco Area CPI. The FY 2025-26 CPI adjustment of 2.4 percent, based on December 2024, would raise the minimum retail business annual fee by $9.00, to $370, in Zone A and by $4.00, to $189, in Zone B.
The annual BIA assessment requires a two-step process. First, the City Council must approve the annual report and pass a Resolution of Intent to Levy an Assessment and, second, hold a public hearing to levy the assessment. The Resolution of Intent to Levy an Assessment was adopted on April 15, 2025. Notice of the May 6, 2024 public hearing was advertised in the Alameda Journal on April 25, 2025. All BIA members were mailed notification of the public hearing, in addition to instructions on how to protest the BIA renewal, should they wish to do so.
The next step to levy the annual assessment is to hold a public hearing, which allows affected parties a final opportunity to comment. The FY 2025-26 assessment cannot be levied if protests are received by the owners of businesses in the area which will pay a combined fifty percent (50%) or more of the assessment. While City Council approved the assessment report at its April 15, 2025 meeting, it may choose to modify the assessment report-including changes to the proposed assessment or activities-based on public comments it receives at the May 6, 2025 public hearing. 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 . . .
After the hearing, City Council may adopt a Resolution confirming the report as originally filed or as changed. Adoption of the Resolution will constitute the levy of the assessment for FY 2025-26.
Staff requests that City Council hold a public hearing and adopt a resolution to confirm the Park Street BIA’s annual report and to levy the annual BIA assessment with an annual CPI adjustment of 2.4 percent for FY 2025-26.
ALTERNATIVES
• Adopt a resolution to confirm the Park Street BIA’s annual report and to levy the annual BIA assessment with an annual CPI adjustment of 2.4 percent for FY 2025-26.
• Levy the annual BIA assessment with a lower or no annual CPI adjustment for FY 2025-26.
• Adopt a resolution with changes in other matters provided in the annual report, such as the annual assessment amount or proposed activities to be funded with BIA revenues, per AMC Section 6-7.13(b).
FINANCIAL IMPACT
BIA billing is processed 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. One financial impact to the General Fund is in the form of Finance Department staff costs to process BIA billing and expenditures, estimated to be approximately $7,500 annually ($2,250 for WABA and $5,250 for DABA) and included in the Business License Program Budget (Fund 10024056).
Base Reuse and Economic Development Department staff estimates it costs $18,700 annually to support and participate in monthly WABA and DABA board meetings and subcommittee meetings. This cost has been absorbed within existing staff workloads to provide indirect financial support to the business districts. (Fund 10061810).
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
The annual renewal of the BIA also 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.”
The annual renewal of the BIA supports the City’s three-year Strategic Plan that was adopted in 2023. The Vision Statement highlights “vibrant commercial centers”. One of the Plan’s six strategic priorities focuses on investing in economic opportunities to “support local businesses and workforce development”.
ENVIRONMENTAL REVIEW
This action involves government fiscal activities which do not include a commitment to any project which may result in a potentially significant physical impact on the environment and therefore is not a “project” under the California Environmental Quality Act pursuant to CEQA Guidelines section 15378(b)(4).
CLIMATE IMPACT
There are no identifiable climate impacts or climate action opportunities associated with the subject of this report.
RECOMMENDATION
Hold a public hearing and adopt a resolution confirming the Park Street BIA Report for Fiscal Year 2025-26, and levying an assessment on the Park Street BIA, with a consumer price index adjustment of 2.4 percent for FY 2025-26.
Respectfully submitted,
Abigail Thome-Lyman, Base Reuse and Economic Development Director
By,
Eric Fonstein, Development Manager
Financial Impact section reviewed,
Ross McCarthy, Acting Finance Director
Exhibits:
1. Annual Assessment Report
2. Assessment Fee Schedule FY 2025-26
3. Boundaries Map
4. Address List
cc: Downtown Alameda Business Association