Downtown Santa Barbara Community Benefit Improvement District - Building an economically vibrant future for Downtown

Statement of Purpose

The purpose of the proposed Community Benefit Improvement District (CBID) is to ensure the future economic vitality of downtown by assessing property owners within the proposed District to independently fund and direct special benefits to address cleanliness, safety, beautification, maintenance, identity and placemaking, above and beyond what the City provides now and into the future.

This important initiative is presented by the Downtown Organization of Santa Barbara, the Santa Barbara South Coast Chamber of Commerce and the
CBID Steering Committee.

Formation of the CBID would give property owners in the District a unified voice to advocate for the District, collectively liaise with the City, and independently manage use of funds to their benefit.

The assessments on real property within the proposed District will fund enhanced benefits with the purpose of attracting new customers, new businesses, welcoming residents, and appealing to visitors throughout downtown.

What is a CBID?

A CBID is a Property-based Community Benefit Improvement District. A unique funding tool which allows business district property owners to pool their financial resources by assessing themselves to pay for certain district-wide activities and improvements. There are hundreds of CBIDs throughout California and thousands throughout the country. CBIDs are a more modern way for urban districts to invest in and support themselves that offer additional legal authorities and benefits to its members.

How are CBIDs
paid for?

CBIDs are funded primarily through special assessment fees that property owners within the district’s defined boundaries have agreed to pay.

The fees are then used to fund various improvement projects that typically include addressing safety and the homeless population, maintaining sidewalk and street cleanliness, improving landscaping, installing decorative amenities like lighting and art, promoting and protecting downtown's image, managing events and programming, and providing directional signs and services.

Why?

Creating a CBID for Downtown Santa Barbara will establish a new District to enhance downtown services, economic growth, district vitality and act independent of City budgets for the future of our downtown.

Proposed District
for Downtown
Santa Barbara
and the Funk Zone

Boundaries

The Proposed Downtown Santa Barbara CBID consists of approximately 22 square blocks (blocks vary in size on each side of Highway 101), consisting of 542 parcels owned by 370 property owners.

Zone 1: Core Area:

In general,
On the northwest side: the southern side of Sola Street
On the northeast side: the parcels on the west side of Anacapa Street
On the southwest side, the eastern side of Chapala Street
On the southeast side, the northern side of Gutierrez Street

Zone 2:

In general,
All of the parcels on the east side of Anacapa Street from Sola Street on the northeast corner side to Highway 101 on the southeast corner.

Programs & Services

Through a 2022 survey of all property owners in the proposed District, the survey results informed the priority services desired by the property owners.

The top five special benefits are:
1. Respond to homelessness, panhandling, and loitering activities that interfere with business in downtown Santa Barbara

2. Safety ambassadors and private security
for downtown Santa Barbara

3. Fund community events to improve the identity and
bring positive attention to downtown Santa Barbara

4. Enhanced sidewalk and gutter sweeping services,
enhanced cleaning/graffiti removal, and increase
pressure washing of sidewalks

5. Marketing, promotions, social media and branding
programs or campaigns to bring new business
and attract new tenants

Funding Allocations & Budget

The CBID Management Plan will direct services and budget funds to benefit property owners addressing the following areas:

of funds used to enhance safety, cleanliness, beautification, and maintenance

of funds used to enhance placemaking and identity to improve the image of the District

of funds used to Administer the District benefits

of funds
allocated to contingency/
reserve

Proposed First Year Downtown Santa Barbara District CBID Budget

Civil Sidewalks

66% of Budget
$1,320,000 1st Year Allocation
(rounded)

District Identity and
Placemaking

14% of Budget
$280,000 1st Year Allocation
(rounded)

Administration

15% of Budget
$300,000 1st Year Allocation
(rounded)

Contingency/Reserve

5% of Budget
$100,000 1st Year Allocation
(rounded)

Total First Year Budget - $2,000,000

Timeline & Term

July 2023 - March 2024

Petitions Distributed. Need 30% of assessed costs to sign the petition in surpport for it to go to City Council for adopting a Resolution of Intent.

April 2024

If City Council approves the Resolution of Intent, Ballots will be mailed to all property owners in the District. Ballots are then collected and counted. The ballots list the assessment amount and are attached with the plan summary of the CBID. Property owners will know which services they will be funding and what their contribution will be, printed on the ballot. All returned ballots must have a signature of the owner of the property
as well as a box checked either "yes" or "no" for the ballot to be valid.

June 2024

Ballots will be counted at the public hearing and if the weighted returned ballots demonstrate support for the
establishment of the CBID, the City Council will adopt a "Resolution of Formation and instruct the appropriate City Dept. to communicate that the assessments should be included in the Fall 2024 property tax bills. The first assessments shouId come with the December 2024 property tax bills and the City wilI then transfer those assessments to a new non-profit management corporation which will oversee the day to day operations of the CBID and manage the funds as articulated in the Management District Plan. Services should begin in early 2025.

Implementation of the Management Plan and delivery of services
is scheduled to commence in 2025.

TERM: Under the Santa Barbara local enabling ordinance, the District may be established for an initial term of 5 years, and the term for renewal of the existing district may be as long as 20 years and shall not exceed 20 years. State law and the local enabling ordinance permits this annual disestablishment of the District based upon petition and vote of the property owners.

The threshold needed to trigger the balloting for the formation of the district is the same as the process