Community Benefit Districts

Background

Community Benefit Districts, which are property assessment districts set up to fund special benefit services above and beyond those provided by the City, have been widely adopted by property owners to enhance neighborhood appearance, increase marketing activities, improve local amenities and ultimately to develop a more vibrant, positive experience for visitors to the downtown. Community benefit districts have been found to provide quantitative benefits, including reduced crime rates and increased property values.

On March 24, 2015, the City Council adopted Ordinance No. 15-12 adding Article 20, Chapter 8 of the Hayward Municipal Code setting up the framework to allow future establishment of Community Benefit Districts. The Ordinance incorporates the provisions of the State’s Property and Business Improvement District Law of 1994 (Streets and Highway Code SS 36600 et seq. - the property-based improvement district or PBID Law). Rather than the five-year term prescribed by the State Law, the City’s Ordinance allows the CBD to exist for a maximum of 20 years. It also provides for the establishment of a not-for-profit corporation to govern the CBD.

Downtown Hayward Community Benefit District

Over the past three years, a group of property owners in Downtown Hayward have worked to gauge property-owner support for the development of a Downtown Hayward Community Benefit District. 

Downtown Hayward possesses a number of valuable assets which present an opportunity to make it a stand-out destination in the East Bay. It is highly walkable due to its compact size, mix of land uses, and relatively small scale of its buildings and streets. Secondly, it is filled with numerous locally owned stores, restaurants and services. Third, it is in close proximity to a regional BART station and City Hall which serve as anchors of the community. Finally, Downtown is known for a number of historic buildings and houses which have been restored and are in active use. The goal of the City, and the CBD, is to leverage these assets and shape the area into a destination and urban experience.

Staff estimates the Downtown Hayward Community Benefit District will raise $596,000 annually to be spent for special benefit services in Downtown for the purpose of increasing demand, commerce and creating a cleaner and more dynamic community.  Similar districts have produced a return on investment in the form of higher sales, higher rents, and higher property values. As described in the Management District Plan (link below), the Downtown Hayward CBD will specifically fund:

  1. Sidewalk Operations—This menu category of special benefits reserves 69% of expenditures for safety, cleanliness, beautification, and the maintenance of an attractive appearance of the District.
  2. District Identify and Streetscape Improvements—This category reserves 15% of expenditures for branding and advertising, seasonal decorations and events, art, potential valet service and public space design and development.
  3. Program Management and Corporate Operations—This category reserves 13% of expenditures for staff and administration, insurance, rent, legal, and accounting.
  4. Contingency/City and County Fees/Reserve—This category reserves 3% of expenditures for delinquencies, City and County fees, and reserves.
 
Under Article 20, Chapter 8 of the Hayward Municipal Code, owners of 50% of the total assessments under the CBD must submit signed petitions in order for the City Council to move forward with approval of a Resolution of Intention and balloting. Earlier this year, the City recieved signed petitions exceeding the 50% threshold, thus permitting the City Council to move forward with the Resolution of Intention, balloting, and public hearing. The balloting is tentatively scheduled to commence on May 15, 2018. Ballots will be tallied during a Public Hearing at the July 18, 2018 City Council Meeting. 

Documents

Dec. 18 2018 - City Council

Authorization to Negotiate and Execute a Management and Disbursement Agreement with The Downtown Hayward Improvement Association (DHIA), Non-Profit Public BenefitCorporation; to Appoint City Staff to the Downtown Hayward Improvement Association Board, and to Release the Downtown Community Benefit District Annual Assessment

Oct. 2, 2018 - City Council

Authorization for the City Manager to Negotiate and Execute a Professional Services Agreement with New City America for Establishing the Downtown Hayward Community Benefit District Non-Profit Management Corporation Interim Administration in an Amount Not to Exceed $30,000

Jul. 10, 2018 - City Council

Resolution of Formation to Form the Downtown Hayward Community Benefit District and Appropriation of Funds