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Property & Business Improvement Districts: Frequently Asked Questions

What is a Property & Business Improvement District?

A Property & Business Improvement District (PBID) is an assessment district which would provide additional services within a defined area. The services would be funded by an assessment on real property, which appears on property tax bills. PBIDs are proven to work by providing services that improve the overall viability of commercial districts, resulting in higher property values and sales volumes. PBIDs provide funding for programs which work efficiently to maintain the area as a safe and inviting environment. The services are chosen by property owners and customized to fit the needs of the district. All services are designed to provide direct benefits to those who pay into the PBID.

What services can a PBID provide?

PBID services must be carefully tailored to benefit the property owners paying the assessment. They will only be provided to properties paying the assessment. Possible services include:

  • Security patrols
  • Clean-Up Crews
  • Street Ambassadors
  • Marketing / Advertising
  • Advocacy
  • Signage Improvements
  • Street and Sidewalk Sweeping
  • Graffiti removal
  • Installation of bus benches, trash cans, tree wells, and art
  • Landscape maintenance
  • Special event sponsorship
  • Removal of large debris
  • Business attraction and retention

All services provided by the PBID will be in addition to the regular City/County services – the City/County cannot reduce services if the PBID is formed.

How long will this last?

The District will be formed for five years, initially. After five years it will automatically expire, unless it is renewed by property owners. A district can be renewed for up to 10 years.

Can I opt-out of the District?

No. Once the District is created, all parcels within the boundaries will be assessed and receive services. There are no “free riders,” but the cost of providing services will be relatively low as they are provided on a large scale. However, once per year there is an opportunity for property owners to petition the City/ County to dis-establish the District if they are not happy with the services.

Are there other PBIDs in California?

Yes. There are over 200 PBIDs throughout California. They include:

  • Downtown Sacramento
  • Downtown Oceanside
  • Downtown Morgan Hill
  • Downtown Burbank
  • Chinatown, San Francisco
  • Downtown San Jose
  • Shadelands Walnut Creek
  • Telegraph Hill, San Francisco
  • Koreatown, Los Angeles
  • Downtown Vallejo

Who will manage the PBID money?

The funds will be collected from property owners with property taxes. The City/County cannot keep the funds for its own purposes – they must be used on the PBID programs. The City/County will forward the funds to the Owners’ Association, which will be responsible for implementing PBID programs.

Why should I support the PBID?

Property & Business Improvement Districts have been used by property owners throughout California since 1994, and throughout the United States since the 1970s. They are a popular, and successful, way to provide funds for extra services. Many studies have been conducted on the benefits of PBIDs. The goals of the PBID are to maintain the area as a safe and inviting environment, to bring more tenants and shoppers, ultimately increasing property values and stabilizing occupancy. Studies have found that:

  • More activity attracts more people which increase rents and property values creating more
    business opportunity which means more activity and people on the street, and so on.
  • Customers and residents may feel more comfortable and safer within PBIDs that have less obvious signs of litter, graffiti, and abandoned cars.
  • Areas that have successfully implemented a PBID are attracting a larger number of visitors to that area than the residential population.
  • PBIDs have been important tools in halting a long slide toward economic decline in specific districts and transforming older areas into new opportunities for investment.
  • A stronger sense of place that accompanies cleaner streets encourages patronage and has increasingly positive repercussions in PBID areas.
  • Businesses consider quality-of-life issues to be more important factors in choosing a location than they do tax rates and real-estate prices.
  • PBID areas experienced greater, on average, yearly reductions in the number of robbery, violent, and total crimes that non-PBID areas do.
  • PBIDs in the City of Los Angeles were associated with 6 to 10-percent reductions in official crime.

Leverage

In addition to providing services, creation of a PBID will leverage owner funds. PBIDs throughout the country have been successful in obtaining additional grants and other funds for capital improvements and services. A PBID creates a unified voice for property owners and business owners with the City/ County and with other organizations.


This information was provided by Civitas who specializes in igniting local economies and establishing stable funding for destinations and downtown improvements throughout the United States. With more than 20 years of experience, Civitas provides expertise in all aspects of forming, modifying, and renewing improvement districts.