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What is a CBD?
It is a 15 year special assessment district previously known as a Business Improvement District (like the Union Square BID). It is a funding mechanism through which property owners in a residential / commercial district can vote, through a public hearing process, to ask the Board of Supervisors to levy special assessments on all properties in the district. The revenue appears as a line item levy on the property tax statements and the revenue would go entirely to fund special benefit services within the district. Such services could include whatever the community is willing to fund; services such as sidewalk cleaning, steam cleaning, graffiti removal, better public lighting and lampposts, private security services over and above the services of local police, improved streetscapes and landscape architecture, marketing and promotion of businesses in the district, street fairs, open spaces, tree planting, neighborhood signage, historic preservation, parking & traffic issues; virtually anything that the neighbors believe will enhance their neighborhood.
Why is a CBD needed?
For the simple reason that our high density mixed use (residential & commercial district is not being taken care of, and the enhanced services desired are not the responsibility of the City. Due to Prop 13, the City is extremely short of funds and is limited in how to raise more revenue to cover the mandated city services and will not have the resources in the foreseeable future to provide a greater level of services for neighborhood improvements. Since it is the property owners’ legal responsibility to clean sidewalks, etc., a CBD empowers the community to work together effectively.
How can a CBD benefit the community?
The CBD provides business and property owners with a strategy to increase commerce at a relatively low cost and to attract customers and tourists to revitalize small businesses in the neighborhood. The Polk/Van Ness, Downtown, Nob Hill neighborhood commercial corridors are losing too much business due to blighted conditions, dirty sidewalks, safety and quality of life issues, and lack of attractive reasons to come into the community. A CBD is an economic development tool to strengthen urban mixed use districts, so they can compete with well capitalized shopping malls and ‘Big Box’ chains. Many SF tourists and shoppers say ‘they would rather patronize local businesses, restaurants and clubs in our neighborhood but only if the area becomes safer, cleaner, more convenient and attractive’.
How would the CBD deal with Public Safety, Security and Homeless Issues?
Matters dealing with Law Enforcement and Homelessness will remain the responsibility of the City, State and Federal government. Goodwill Ambassadors act on behalf of the merchants and property owners as the trained eyes and ears of the district to liaise with City Departments such as Homeless Outreach Coordinators, SFPD etc. for effective help.
Who pays for a CBD?
Property owners pay for the special assessment which benefits everyone.
Will a CBD be able to access additional funding?
Yes. One of the primary purposes of a CBD is to improve the neighborhood by seeking City, State, Federal and private grants.
Are CBD Assessments Tax Deductible on Individual Tax Returns?
Yes.
How are the services, budget and assessment methodology determined?
After the community has been surveyed, an assessment methodology will be determined for the requested services. Ultimately the property owners in the CBD must vote with a 50% plus one majority to define the Assessment Methodology and the Services Management Plan to form the CBD. Votes are weighted according to what percentage of the CBD Budget a property owner will be paying. To get the weighting, you a) determine the assessment methodology, b) determine the dollar amount the owner will be paying, and c) determine what proportion of the total budget that comprises. Thus, property owners’ votes will be weighted according to the proportion of the costs they will bear.
Who manages a CBD?
If there is enough support to form a CBD, a local Non Profit Management Corporation will be formed by local stakeholders, residents and merchants to manage the enhancement services requested by the neighborhood for the neighborhood.
What percentage of the special assessment goes for actual services and for managing the district?
This will be outlined in the Management Plan according to survey results for desired level of services but usually 90% of funds are for actual services and 10% for management.
What are the boundaries?
The proposed boundaries include Van Ness to Mason, Sacramento to Geary with a northward extension of Polk Street and Van Ness to Broadway. The preliminary boundaries were formed based upon a petition by merchants, stakeholders and property owners living within the proposed service area. The final boundaries will ultimately depend upon a final vote. A CBD is a neighborhood choice and isn’t imposed or forced upon them.
When will the CBD be formed?
That depends entirely upon the majority of the community’s wishes. Usually it takes 1 to 3 years of planning, consensus building and elections before a CBD is established.
What can I do to help?
It can only happen if neighbors work together! For more information on how YOU can help, please contact us.
