sponsored by the Airport Area Business Association

To make the Airport Area a better place to visit and do business

Airport Area Property-Based Business Improvement District (PBID)

sponsored by the Airport Area Business Association

Business exerts a more effective, influential voice when it speaks and acts in unison.

Oaklands Airport Area.

Departure point of Amelia Earharts final flight. Home to storied world champion sports teams. Site of world-class entertainment. Location of our citys two most powerful economic engines. Transit hub for the East Bay. Recreation destination offering spectacular water views and wildlife refuge. Sought after by commercial, retail and residential developers. Valued for its unparalleled hospitality. This is Oaklands Airport Area. The Airport Area presents a rare combination of abundant transit options, available land and a centralized Bay Area location. And the last decade has seen significant transformation and improvement to this ever-evolving gateway as a result. Retailers now recognize the high visibility offered by more than 250,000 vehicles passing through daily and the 13 million travelers who use Californias fourth largest airport on an annual basis.

Airport Area Property-Based Business Improvement District

Rich in history. Rich in assets.

The lifeblood of the Airport Area remains its hospitality industry, served by Oakland International Airport and the Coliseum complex. After arriving to our city, a passenger is greeted by recent beautification of Hegenberger Road and other major arteries before choosing from one of over 2,000 hotel rooms within a few block radius. After settling in, a quick Starbucks can be enjoyed at Gateway Center after taking in an As game or playing a challenging round of golf at Metropolitan Golf Links. BART or a host of other transportation options whisks one to an important meeting across town or across the bay within minutes. The Airport Area continues to thrive as a commerce and employment center. FedEx, Rainin Instruments, Petfood Express, Revolution Foods, Comcast and UPS are just a few of the major manufacturers, distributors and service providers that have chosen to locate here. This is the thriving Airport Area a PBID will keep vital.

To make the Airport Area a better place to visit & do business

Selected Airport Area Companies & Amenities

AC Transit Amtrak Inter City Rail Platform Arena Center BART Bay Trail Best Western Inn Business Jet Center Coliseum Lexus of Oakland Comcast Courtyard by Marriott Days Hotel Oakland Airport East Oakland Sports Complex Fairfield Inn by Marriott FedEx Francescos Restaurant Give Something Back Hegenberger Gateway Retail Center Hilton Oakland Airport Holiday Inn & Suites Oakland Airport Holiday Inn Express & Suites Horizon Beverage KaiserAir, Inc. Martin Luther King, Jr. Shoreline Park Metropolitan Golf Links O.co Coliseum Oakland Airport Business Park Oakland Harley-Davidson Oakland International Airport One Toyota Oracle Arena Pet Food Express Rainin Instruments Revolution Foods United Parcel Service

Airport Area Property-Based Business Improvement District

What is a PBID?

Property-Based Business Improvement District Defined

: a private-public consortium : a product of motivated property owners : a geographically-defined special assessment district : the act of enhancing rather than replacing existing municipal services : self-assessed and self-governed special services, activities and programs : a coordinated effort to respond to the needs of the community : a legal and effective means of allowing property owners a say : a proven method of transforming a business district : a stable revenue source managed by stakeholders : a tool for sustaining economic development : a solution for the Airport Area

To make the Airport Area a better place to visit & do business

Property-Based Business Improvement Districts

PBIDs at a Glance

PBIDs are a stable funding source for property owners actively working to improve their business district PBIDs offer a proven model of success, with over 2,000 business assessment districts currently operating in the United States and Canada, and nine running successfully in Oakland PBIDs enhance, empower and amalgamate a business district, allowing for significant improvements that attract new businesses PBIDs implement enhancements to a business district that the city cannot fund PBIDs are designed and operated by property owners within a district through an annual self-tax PBID funds are dedicated and cannot be diverted or allowed to be used to replace existing city services PBIDs allow structure for economic development through revitalization and marketing efforts PBIDs provide property owners a say in the ongoing maintenance, marketing and security within their business district PBIDs drive consumers to a business district PBIDs are a long-term solution, in operation for ten years, sometimes longer PBIDs are legal, created under Californias Property and Business Improvement District Act of 1994 or the Parking and Business Improvement Area Law of 1989

Airport Area Property-Based Business Improvement District

Oakland Business Assessment Districts

Lake Merritt-Uptown CBD Formed 2008 Annual operating budget $1,092,000 Downtown CBD Formed 2008 Annual operating budget $902,000 Koreatown-Northgate CBD Formed 2007 Annual operating budget $279,000 Fruitvale PBID Formed 2006 Annual operating budget $325,000 Laurel District PBID Formed 2005 Annual operating budget $165,000 Temescal-Telegraph Avenue PBID Formed 2004 Annual operating budget $141,000 Montclair BID Formed 2001 Annual operating budget $98,000 Rockridge BID Formed 2000 Annual operating budget $249,000 Lakeshore BID Formed 1998 Annual operating budget $249,000

$3.5 million in privately-sourced and controlled enhancement funds are currently being utilized in Oakland on an annual basis

To make the Airport Area a better place to visit & do business

What would an Airport Area PBID do?

Enhance existing city services. A PBIDs function is not meant to replace existing city services but rather, by law, enhance them. The function and operation of an Airport Area PBID would be determined by property owners funding the district. Its activities could include but not be limited to any one of the following services and special projects: Security services over and above the services provided by local law enforcement Removal of trash and recyclable material Enhanced parking or transportation-related services Cultivation of economic development Advocacy on behalf of district stakeholders Beautification and decoration Landscape maintenance Special lighting Business attraction and retention Graffiti abatement Maintenance of public rights of way cleanliness Maintenance of public order through an ambassador program Steam cleaning of the sidewalks within the district Implementation of capital and infrastructure improvements Marketing and promotion Branding to create a positive district identity Fostering of cultural opportunities Creation and maintenance of new public spaces Hosting of special community fairs, festivals and events

Airport Area Property-Based Business Improvement District

Forming the Airport Area PBID

Under the Property and Business Improvement District Law of 1994, PBID formation in the Airport Area would generally involve six steps: 1. Accessing Resources 2. Identify Steering Committee members Obtain property owner database to identify owners

Owner Outreach & Education Educate property owners about PBID via handouts and meetings Hold focus groups and circulate surveys to obtain input Obtain support from property owners

3.

District Plan Development Identify district boundaries and included properties Identify potential benefit zones Determine specific services to be provided by the district Determine assessment rate and budget Determine governance structure Draft and review district plan

4.

Petition Drive Prepare, distribute and collect petitions Submit petitions to the City Council, demonstrating a show of support by at least 50% of owners willing pay into the assessment district

5.

Initial Hearing Preparation of a Resolution of Intention Preparation of a Notice of Public Hearing and ballot A Resolution of Intention hearing is held Owners are noticed with a ballot

6.

Public Hearing A public hearing is held before the City Council and/or County Board of Supervisors where any protests are heard Cast ballots are tallied Resolution of Formation is adopted by 51% of ballots cast in favor

The process for establishing an Airport Area PBID would take anywhere from 6-24 months, depending on a number of factors

To make the Airport Area a better place to visit & do business

Proposed Airport Area PBID Boundaries

The proposed Airport Area PBID sits between Oaklands two most powerful economic drivers

Airport Area Property-Based Business Improvement District

How would an Airport Area PBID be funded?

By proactive property owners. PBIDs are funded through an assessment on properties within the district. The amount of assessment is determined by property owners during formation of the district according to specific legal guidelines. Certain types of property can be exempt from all or part of the assessment if district services are determined to be unbeneficial. Funds raised through the assessment must be spent within the district for the benefit of properties paying the assessment. Several standard formulas are used to create an assessment methodology. PBID assessments are not based on property value but rather criteria based upon one or more of the following: lot size building square footage linear frontage on a main commercial corridor the use of the property and the specific zoning restrictions in place

The chosen formula used for assessment is: reasonable and affordable to the majority of potential district participants sufficient to cover projected service needs and special projects easily explained to property owners in proper proportion as to assessments paid versus services rendered

How would Airport Area PBID funds be collected for use?

By the County of Alameda. Assessments that fund PBIDs are collected by the County as part of property tax billing. Funds are submitted to the City of Oakland, that in turn transfers them to the contracted nonprofit PBID management corporation.

How would an Airport Area PBID be managed?

By a corporation accountable to property owners. PBIDs are typically managed by a new nonprofit corporation specifically formed to fill this role. Property owners forming the PBID decide who will manage the PBID and how. In most cases, the sponsoring entity is charged with managing the new nonprofit according to a detailed management plan approved by property owners. Submission of annual reports to ensure accountability to assessed property owners is required by PBID corporations.

To make the Airport Area a better place to visit & do business

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Why would anyone want to pay more money? Isnt the city supposed to provide these services?

PBIDs provide services every business district and property owner needs but that will not be funded by the city.

Cities provide general benefit services. These services normally include police, fire, transportation, utilities, planning and zoning, street paving, lighting, trash and refuse, and housing, among other general benefits. These services do not and cannot fully respond to the special needs of a given business district.

PBIDs provide enhanced benefit services. PBIDs pick up where cities leave off by providing the special services desired and needed by property owners and business districts looking to drive consumer spending and gain a stronger identity. In a time of overwhelming local, state and national deficits, these enhanced benefits are the most efficient and effective means of ensuring that dedicated funds stay and are spent within a district and managed in a manner acceptable to the property owners. PBIDs provide services every business district and property owner needs but that will not be funded by the city.

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Airport Area Property-Based Business Improvement District

Why should an Airport Area PBID be formed?

The time is right. The City of Oakland continues to suffer budget woes and staff shortages that threaten supplemental services beyond the basics. The Oakland Police Department is understaffed and able to respond only to critically-essential law enforcement needs of Airport Area businesses on a consistent basis. Enhanced security services provided by the city remain a band-aid, at best. The elimination of redevelopment funding by the State to implement future Airport Area projects looms, putting revitalization and economic growth here in jeopardy. The need exists. Supplemental city services once relied upon may be unavailable to Airport Area property owners in the near future while crime and ongoing maintenance issues persist. Property owners must meet the need and close the loop themselves to ensure that economic development continues and does not suffer as a result. The means are available. A viable means of enhancing existing services is at the disposal of committed property owners who see the value in funding capital improvement, maintenance, safety, and other valuable services themselves. Results can be transformative. Self-funded programs revitalize a business community by strengthening or redefining its image, as defined by the property owners doing business there. Marketing efforts that include business directories, advertising, websites, street fairs, dining-out events, holiday celebrations, and banner programs all serve to transform the way consumers and visitors view the business corridor and shape their views about buying and staying there. Consumers willingly patronize business districts that are organized, safe, clean and controlled.

The interests of a business community can be no better served than by its stakeholders.

To make the Airport Area a better place to visit & do business

12

What does it cost to launch a PBID?

In actuality, nothing. Should the PBID be approved by at least 51% of property owners within the district and be formally adopted, launch funds are returned to investors with the initial distribution of assessment funding routed to the city through County property tax rolls. Initial seed funds are needed to conduct a feasibility study of property owner interest. Should the study, conducted by the steering committee in concert with a hired consultant, find the PBID feasible, additional funds are then needed to proceed through the six-step process of legal PBID formation. There is a risk to seed investors that funds expended on a feasibility study that does not yield a finding of feasibility would be lost and nonrefundable. Should the PBID be found to be feasible, there is a risk to investors that funds expended on the six-step process leading to a ballot vote could be lost and nonrefundable, should the PBID not pass in the affirmative by at least 51% of property owners within district boundaries. Best estimates put the total upfront seed funding of launching a PBID at between $25-75,000, depending upon district size, consultant chosen, number of property owners to be assessed, and other factors that can be identified through proven methodology.

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Airport Area Property-Based Business Improvement District

Use of PBID Seed Contributions

Phase I
Feasibility Study
Owner Outreach: Property owner contact in person, via email and telephone with the purpose of determining level of owner interest, level of support for creating PBID, identifying potential assessment scenarios, specialized services owners are willing to support, feasible PBID boundaries Owner Surveys: Hardcopy surveys issued to owners, collected and tallied Outreach & Informational Meetings: Coordination of group meetings that focus owner interest & preference Feasibility Report: Preparation of a final report on the results of the feasibility study, including conclusions on owner support levels, and recommendations as to the most feasible boundaries, assessment methodology, and specialized services preferred by property owners

Phase II
District Formation
District Plan Development: Identification of district boundaries and included properties; determination of services to be provided; determination of assessment rate and budget; determination of governance structure; drafting of district plan Petition Drive: Preparation, distribution and collection of petitions for formation; submission of petitions to City Council, demonstrating a show of support by at least 50% of owners willing pay assessment Initial Hearing: Preparation of Resolution of Intention; preparation of Notice of Public Meeting and ballot; Resolution of Intention hearing; owner balloting Public Hearing: Tallying of ballots; adoption of Resolution of Formation

To make the Airport Area a better place to visit & do business

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About the Sponsoring Organization

The Airport Area Business Association exists to promote and sustain commerce and industry in the Airport & Coliseum area. Our slogan, Business Exerts a More Effective and Influential Voice When It Speaks and Acts In Unison, still holds true today, 45 years after our founding members joined together to build a dynamic organization that serves its members by providing a range of programs and informational activities. AABA was formed in the interest of developing the areas surrounding Oakland International Airport and the Oakland-Alameda County Coliseum. The organization is composed of member firms actively working to improve the economic and environmental conditions of this key growth area to the benefit of both businesses and residents. Companies of all sizes and trade benefit from membership in AABA.

Why AABA?
Why is the Airport Area Business Association sponsoring the effort to institute a PBID here? Why is it the logical organization to undertake this task? AABA remains a self-sustaining, stable presence in the area to the benefit of the local business community, as it has since its inception 45 years ago. AABA has competent staff, a committed board of directors and resources at its disposal to see the PBID project through to fruition. AABA is taking the lead on this effort because the time is right to do so, the need exists and the creation of a successful PBID in the Airport Area is reasonable, realistic and attainable. The leadership of AABA believes the time for an Airport Area PBID is now.

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Airport Area Property-Based Business Improvement District

AABA Programs & Activities

Economic Development Group Mission is to provide a voice to Airport Area property and business owners, with the goal of guiding development, and providing access to information and assistance with specific member issues Hospitality Group Mission is to network hotels, restaurants, transportation service providers, sports-related amenities & teams, airport concessions, and other business entities having an investment in the Airport Area hospitality industry Business Outreach Mission is to contact, on a one-to-one basis, members of AABA to survey individual concerns and needs from the organization Youth Outreach Mission is to work with area schools to provide opportunities for mentoring, shadowing, internships and in-class learning about career choices and the world of business Coliseum BusinessAlert Mission is to provide a forum for Airport Area business managers to voice safety and security concerns, working in concert with OPD and other agencies in seeking solutions Security Advisory Group Mission is to coalesce local member security service providers in an effort to support the activities of Coliseum BusinessAlert Networking, Educational & Informational Events Mission is to provide opportunities to network local managers while providing timely information and education on relevant topics Newsletter and Website Mission is to inform members of local activity and upcoming events relevant to the Airport Area Advisory Board Mission is to provide access to specialized information and advice for member businesses

To make the Airport Area a better place to visit & do business

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Airport Area Business Association

Executive Committee
Randall Whitney Safe Storage Management Co. President Alton Jelks Jelks Group Dynamics Vice President Ron Risi Recology East Bay Secretary Ana Chretien ABC Security Service, Inc. Treasurer

Directors
Mark Bryant Port of Oakland Ann Cooke Ultimate Sports Guide Sharon Simontacchi LAZ Parking Mike Tallent The Art Sign Company Kyle Taylor Shred Works Mike Yoell Core Security Solutions

Executive Director
Debra Hauser

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Airport Area Property-Based Business Improvement District

This document was prepared by the Economic Development Group of the Airport Area Business Association

To make the Airport Area a better place to visit & do business