Note: The online Request to Speak window has expired.
The online Comment window has expired
Agenda Item
9 25-0230 Subject: Ordinance To Modify The Maximum BID Term From 10 Years To 20 Years
From: Economic And Workforce Development Department
Recommendation: Adopt A Ordinance Amending Oakland Municipal Code Chapter 4.48 Business Improvement Management Districts Section 4.48.080 To Increase The Maximum Term Length For Business Improvement Management Districts From Ten (10) To Twenty (20) Years
Please support this staff recommended ordinance modification. ALL Oakland BIDs have signed a letter of support for the extension of the maximum term length to 20 years. There are numerous benefits to extending the threshold, a few listed below, and NO negative implications as choosing the length of renewal is at the discretion of each BID, to be voted on and approved by those assessed, and 20 is the maximum so a BID will choose the duration that will best match their stakeholders needs, ie. 5, 8, 10, 14, 20, any number of years, whatever the duration is the best fit. Additionally, all BIDs have a method to disestablish at any time during the term.
The most significant benefits include:
- Cost - regardless of the size of the BID the cost to renew is about the same: consultant fees + association staff time = $75,000 to $100,000. I serve as the Exec. Director for the Laurel District Association and the cost of renewal is about 50% of an entire year of assessments, funds that could be best spent serving the needs of the districts.
- City Staff Time - there are currently 11 BIDs in Oakland and every time they have to renew a substantial amount of city staff time is involved.
- Access to Capital for Greater Improvements - With longer term durations smaller BIDs with modest annual assessments have an opportunity to fund more significant capital improvement projects by qualifying for loans that can be serviced over a more manageable term.
Please support this staff recommended ordinance modification. ALL Oakland BIDs have signed a letter of support for the extension of the maximum term length to 20 years. There are numerous benefits to extending the threshold, a few listed below, and NO negative implications as choosing the length of renewal is at the discretion of each BID, to be voted on and approved by those assessed, and 20 is the maximum so a BID will choose the duration that will best match their stakeholders needs, ie. 5, 8, 10, 14, 20, any number of years, whatever the duration is the best fit. Additionally, all BIDs have a method to disestablish at any time during the term.
The most significant benefits include:
- Cost - regardless of the size of the BID the cost to renew is about the same: consultant fees + association staff time = $75,000 to $100,000. I serve as the Exec. Director for the Laurel District Association and the cost of renewal is about 50% of an entire year of assessments, funds that could be best spent serving the needs of the districts.
- City Staff Time - there are currently 11 BIDs in Oakland and every time they have to renew a substantial amount of city staff time is involved.
- Access to Capital for Greater Improvements - With longer term durations smaller BIDs with modest annual assessments have an opportunity to fund more significant capital improvement projects by qualifying for loans that can be serviced over a more manageable term.
Thank you for your support!