Economic Development

By Ivette (Fuentes) Ricco

We must spur economic development.

The city has spent the last few years working on balancing the budget. This has taken the form of cuts, reductions or the elimination of services. Balancing a budget is done by reducing expenses, but, the other side of the ledger, increasing revenue, must also be addressed. How does a city increase revenue? They, increase fees, taxes and encourage economic development.

Pinole has successfully used its proximity to the Eastbound I-80 corridor to attract business. When speaking of this business corridor, "If they build it they will come", is truly applicable. However, that is not the case for other commercial corridors in Pinole. In this new economy, one in which redevelopment dollars are no longer available to provide incentives for economic development, it is time to develop new ideas and programs.

What I Will Propose - A Resolution to Establish a BID A Welcome to Pinole - Business Concierge Program A Shared Vision for Old Town Pinole A Business Walk Program

BID Program A. The establishment of a BID for three commercial corridors in Pinole:

Appian Way
San Pablo Ave South from Appian Way
Old Town

A BID is an opportunity for businesses to tax themselves, then control the use of the tax revenues for the benefits of their own businesses by improving their neighborhoods and paying for services and events. It is an innovative revitalization tool for commercial neighborhoods and business districts. Established by law in the late 1980's and early 1990's, BIDs are public/private sector partnerships that perform a variety of services to improve the image of their cities and promote individual business districts. They also carry out economic development services by working to attract, retain and expand businesses.

Business Improvement District Law In California, there are two separate laws that authorize the formation of a Business Improvement District: The Parking and Business Improvement Area Law of 1989 Property and Business Improvement District Law of 1994 Both laws enable a city, county, or joint powers authority (made up of cities and/or counties only) to establish a BID and levy annual assessments on businesses within its boundaries. Improvements which may be financed include parking facilities, parks, fountains, benches, trash receptacles, street lighting, and decorations. Services that may be financed include promotion of public events, furnishing music in public places and promotion of tourism. In addition to the above, the 1994 Act also allows financing of streets, rehabilitation or removal of existing structures, and security facilities and equipment. The 1989 Act allows financing of marketing and economic development, and various supplemental municipal services such as security and sanitation. Neither law allows bonds to be issued by the BIDs.

How is a Business Improvement District Formed? To form a BID, the city or county will propose a new district by adopting a resolution of intention. Types of improvements and activities to be financed are specified at this time. Then, public notice must be provided and a public hearing will be held. If not protested by a majority of businesses, the BID is established and an advisory board is appointed. Formation of a 1994 Act BID has stricter requirements including the mailing of individual notices to all business owners who would be affected, in addition to public notices published in local newspapers. Once formed, the BID is limited to those types of improvements or activities that were specified during formation.

How is the Annual Charge Determined? Business Improvement District assessments must be directly proportional to the estimated benefit being received by the businesses upon which they are levied. Normally these will be assessed annually on County property tax bills. In an area formed to promote tourism, only businesses that benefit from tourist visits may be assessed. A BID may assess property according to zones of benefit, in relation to the benefit being received by businesses within each zone. No assessments under this law can be levied on residential properties or on land zoned for agricultural use.

How Long Will the Charge Continue? Business Improvement Districts assess property annually as long as the special improvements and activities are being financed. 1994 Act Business Improvement Districts are limited to a maximum of five years of assessments.

B. Welcome to Pinole - Business Concierge Program I took this idea to staff in 2011. The Town of Danville has been successful in developing a business-friendly attitude with the help of this program. Small businesses are often stymied and frustrated by the paperwork and processes involved in opening or relocating a business in Pinole. The Concierge Program helps them through the process by providing a road map to success. It also helps them to understand what the costs are before they set out on a venture that may not be feasible in Pinole due to zoning restrictions or land use issues. There is a need to be proactive and customer friendly towards small businesses interested in doing business Pinole.

C. A Shared Vision for Old Town How often have you heard how charmed visitors are by Pinole's Old Town? It is one of the most unique areas in Pinole and the surrounding communities. Historic Down Towns have become largely irrelevant throughout the nation as businesses change their business models to meet consumer needs and demands, in spite of the efforts of organizations such as California Main Street Alliance. Pinole's Old Town is still the center of our community. It holds a special place in the hearts of Pinoleans. There have been some improvements over the years in Old Town, primarily due to the use of Redevelopment Funds. However, without redevelopment funds and without a shared and clear vision for Old Town, we will continue to see vacant store fronts and little foot traffic. People need a reason to visit Old Town. I believe we can and should define the vision for Old Town with input from residents and the business community. There is little reason for visitors to spend their time and/or their dollars in Old Town with the exception of patronizing the restaurants in the Old Town area. I believe that Old Town can become a destination by adding an entertainment element to its business district. Collaborative events that incorporate existing venues while encouraging businesses to offer appropriate forms of entertainment, such as music, comedy and theatre, can make Old Town a real destination. The city's vision is to bring in retail businesses. That is a good way to increase sales tax revenue, I'm in favor of that. But we must try to work towards making Old Town a true destination that will set Old Town apart.

D. A Business Walk Program: Communities in California have successfully reached out to their local businesses to learn from them exactly what their needs and concerns are. It is a simple premise, teams of local residents, council members, staff, and community organizations, select a day to walk to every business and ask three questions:

How's business? What do you like about doing business at your location? How can business be made better? The business walk gives individual business owners an opportunity to interact with civic leadership in their community, those who have the ability to act on their behalf to ensure a prosperous business climate. Let's start this conversation, sooner rather than later.

Pinole needs new Leadership, new ideas and a positive and creative approach to the future of our City.