Merchants Get First Look at Business Improvement District Proposal
Feasibility study gives merchants examples of how assessments could be structured and spent.
First Street merchants got their initial look Tuesday, February 9, at how a downtown Business Improvement District would be funded and how the money raised by the district would be spent.
A feasibility study conducted by Civitas Advisors came up with four basic conclusions according to a letter sent to downtown business owners. One of those conclusions, that business owners and not property owners fund the district doesn’t sit well with some business owners in the downtown.
“It’s not equitable,” said Stan Houston, owner of ABC Music on First Street. “They share in the long term sustainability of the downtown.”
Houston did appreciate a different conclusion of the study that if approved the district should be modest in its revenue goals. “The scope of work is extremely reasonable,” said Houston.
A Business Improvement District is a method of funding specific projects by means of a self-assessment. The money raised would fund projects approved by the people paying the assessment.
Examples projects and how much each merchant would pay are part of the packet sent out from City Hall on Monday.
The assessments in the examples differ depending on the type of business being assessed with retail businesses paying the highest amount and service businesses paying the lowest and the assessment for restaurants in the middle.
According to Mario Giluiani, acting Economic Development Manager for Benicia, this is normal. “They (the assessments) are based on the legal requirements of forming a Business Improvement District.
Another conclusion of the study is that only businesses located on First Street and on Military East between East Second and First Street be assessed. This is another legal requirement of a Business Improvement District. The programs funded with the assessments are required to have a direct link to the businesses paying the assessment.
Civitas Advisors thought it would be difficult to establish that link to businesses anywhere else in the city.
At least one downtown business owner believes the whole city should have a stake in the success of the downtown. “I don’t know if it’s fair for business owners on First Street,” said Maryellen Hayes, owner of the Camellia Tea Room and a downtown property owner. “I kind of feel that the improvements ought to be on the back of property owners. It seems to me the whole community should be responsible.”
Michael Cooley
8:46 am on Thursday, February 9, 2012
I would agree with Maryellen. I do not own a business in Benicia, but I feel that support of the downtown is important. I think that improvement in the kinds of business on the 1st street is crucial to maintaining our property values. I was disheartened to find that we now have a tattoo parlor just a half a block off of 1st street. This is the sort of thing I might expect of Vallejo, not Benicia. We need to keep up the appearance of prosperity or our property values will suffer. As a property owner I am willing to pay. Admittedly I would not expect to pay at the same level as a business, who might benefit directly. There are a lot of property owners. If we all pay a little bit, it might amount to something worthwhile.
Mike C.
Karl Voigt
9:21 am on Thursday, February 9, 2012
I ,on the other hand, do not agree. I think our property values are better protected by a good school system and good basic municipal services like police, fire, water and waste water, well maintained city streets and parks provided by a fiscally responsible city govt. Subsidizing a sub-set of small businesses on 1st St. seems to me a trivial contribution to preserving property values in Benicia. Mr Cooley brought up Vallejo.
OK, lets look at all the money Vallejo sunk into it's Georgia St. "restoration" I don't think anyone would call that effort a great protection of Vallejo's property values. Even if you limit the goal to property values on and around Georgia St.
Robert Livesay
9:31 am on Thursday, February 9, 2012
The single most important issue is how will it improve business and the extra taxes to the city. It must have a revenue projection. I have seen many city's in Calif. do some thing like this and guess what no revenue increase. Flowers, nice brick ribbon sidewalks and all that stuff. Go look at them now. I do not suggest this would happen to Benicia. It needs more than what is proposed. Now Healdburg in the heart of the wine country is a different story. I have not heard anyone say they want to be a Healdburg. I sure would.
Michael Kauzer
1:54 pm on Thursday, February 9, 2012
As a business and property owner on First Street, I welcome the prospect of a renovation district. I agree with Maryellen. As a property owner I have an incentive in the higher rents that will accrue from the renovation. It's somewhat ironic that taxing the business owner for the renovation will result in higher rent costs...taking away the incentive for the business owner to contribute.
Mary Julia Klimenko
7:57 pm on Thursday, February 9, 2012
As a business owner and renter on First Street, I think it should be one or the other and not both. Otherwise, I would be paying twice. Once for the assessment and twice because of an increase in my rent. Also, Vallejo was ruined by well intentioned people who, more than once, "renovated" the downtown area. When I was a kid, the downtown area of Vallejo had beautiful Victorian business buildings, which were torn down to make the downtown area better (?), Downtown was the center of Vallejo's businesses. Georgia Street went all the way to the waterfront. Today it has finally been re-connected to the waterfront after many revisions, consultations, advisors, and "improvements" that cut Georgia Street off from one of it's most beautiful assets. Some years ago I worked with the Waterfront Planning and Development Commission to create a waterfront development plan that was approved by the city council and implemented. It was a well thought out plan that took a couple of years to create, which is why we have such a lovely waterfront area today. I hope that any "improvements" to Benicia's downtown area are subject to a vote of more than just a few people. Also, Benicia is a designated historical Main Street town. I don't know if that has any bearing on what the city of Benicia can do to the downtown area.
MJ Klimenko
Robert Livesay
8:29 pm on Thursday, February 9, 2012
Benicia has a wonderful downtown with great merchants. i am a believer that the city needs to start putting money into the city rather than the merchants. Now we are not Healdburg so there is a difference. That was an explosion waitintg to happen. This city is a destination that needs to be discovered. Lights, ornaments, clean sidewalks will not get it. The city must support this city with big time money. Convince the Greenies that it is in there best interest and it might work.
Shem Isaac
9:58 pm on Saturday, February 11, 2012
What a scurrilous sham. I own a business on first street, have attended numerous meetings at various locations, handed my card directly to Mario, and another to the Civetas advisor (owner/founder) and have yet to be informed legally of this report. Numerous individuals have asked me if I've received it, and to all I've said no.
Shem Isaac
10:01 pm on Saturday, February 11, 2012
Robert. We need to talk. Come see me or tell me where to find you. This is the first time I have taken exception to one of your posts. I hope you are as humble as you are intelligent.
Shem Isaac
10:04 pm on Saturday, February 11, 2012
I have many hundreds, not dozens, hundreds of clients. I have had to wrestle with these loyal, wonderful people to help them shop at home, because our city drives them over a bridge for basic shopping.
Shem Isaac
10:08 pm on Saturday, February 11, 2012
It's not their crime, but our cities that keeps them from shopping local. Our city doesn't drive them from us by action, but by inaction.
Robert Livesay
8:23 am on Sunday, February 12, 2012
Sherm what is the name of your business? i am always around. Sherm i do on occasions try to be humble. Thank you We may just be on the same page.