A PBID for Carlsbad Village
Ensuring long-term success in the Village
What do thousands of downtowns in the U.S. and around the world have in common? From Napa to New Haven, from Boulder to Buffalo, downtowns and commercial districts have discovered the benefits of having a strong private-sector leadership organization funded by a Property-based Business Improvement District (a “PBID”).
Over the past nearly three years, Urban Place Consulting Group has acted as advocates for the Village by implementing pilot projects, writing grants, creating new programs and events, and facilitating new investment in the Village. The Village needs an “advocate” long after we’re gone to continue to attract new investment, to promote the downtown, to increase retail sales, and to create a thriving commercial district for its nearby residents. That is the role PBIDs play in downtowns around the world.
Part of Urban Place’s three-year contract with the City of Carlsbad is to set up a private-sector organization with the funding and leadership to continue the Village’s success into the future. A PBID is the best mechanism by which to accomplish this, and Urban Place has established or renewed over 50 PBIDs across the country. Over the past year, we’ve met with property owners and held public workshops to explore the possibility of a PBID here in the Village.
Frequently Asked Questions
What exactly is a PBID?
A PBID (property-based Business Improvement District) is a private sector initiative to manage and improve the environment of a business district. The services provided are financed by a self-imposed and self-governed assessment on real property.
Are these things legal?
PBIDs were enabled in California by state legislation in 1994. Since then, over 80 PBIDs have been established in this state. There are over 1,000 PBIDs in the U.S. alone, and more than half of them are in cities with under 100,000 people. The median annual budget of PBIDs in the U.S. is $342,000, according to the International Downtown Association.
What do they do?
It depends on the needs of the downtown, but a PBID’s services can include public safety, maintenance and cleaning, economic development, marketing, special events, and more.
Why do they work?
PBIDs work because they provide enhanced services above existing city services that are tailored to the specific needs of the downtown. The district is governed by a non-profit board including property owners who pay the assessment, and it unifies the private sector into a strong downtown leadership organization with improved political clout.
How do you form a PBID?
A downtown consultant, such as Urban Place, is usually involved to help guide the somewhat-lengthy and legal process. Initial steps include determining the downtown’s needs and educating stakeholders, and developing the “management plan,” which is the business plan for the district (more on this in the next question). Next, we’ll need to develop consensus around the management plan, and then complete both a petition campaign and a ballot process. If those are successful, City Council would hold public hearings to establish the district, and then contract with the non-profit management organization with a board of directors.
What’s in a Management Plan?
The term of the district, its boundaries, programs, budget, and assessment methodology are included in the Management Plan.
What is the term?
It depends, but the maximum initial term for a PBID is five years. The PBID automatically sunsets at the end of the term. If, towards the end of the term, property owners are happy with the programs and wish to continue it, a petition campaign and ballot process must be completed again in order to renew the PBID. In most downtowns, property owners have voted to renew the PBIDs at the end of their terms.
What are the boundaries?
Generally, the commercial core of the Village, east of the railroad tracks. If the district passes, all properties within the district are required to pay the assessment whether they voted for it or not.
What might the programs be for Carlsbad?
Initial meetings with stakeholders have focused on business and economic development, marketing and communication, and advocacy.
What is the budget?
The programs and services identified have an annual cost of approximately $90,000.
How would properties be assessed?
For PBIDs in California, a property’s value is not an allowed method for assessment. Instead, a property must be assessed on some characteristic of the property, such as streetfront footage, building square footage, or lot square footage. The current recommendation for the Village is a combination of building and lot square footage.
Conclusion
Success in a downtown over the long-term requires the participation of three parties: business owners, property owners, and the public sector. Merchants and cities are usually involved in most downtowns – it’s the property owners, however, that often don’t have a seat at the table. But because they have a long-term vested interest in, and a vision for, their neighborhoods, their involvement is critical. Renewed interest in the Village and a changing economy have led to more than $42 million in private investment committed in the Village over the next two years! The Village must continue to attract new investment, new businesses, and new residents in order to become the economically viable, vibrant, and active heart of Carlsbad.