Loading...
2025-048 Downtown Public Improvement District Update May 16,2025 Report No. 2025-048 INFORMAL STAFF REPORT TO MAYOR AND CITY COUNCIL SUBJECT: Downtown Public Improvement District Update BACKGROUND: On November 7, 2023, City Council approved a two-year pilot for the implementation of the Downtown Ambassador Program as part of a multi-pronged approach to develop solutions for a cleaner, safer and more vibrant downtown. The pilot program, aligns with the City's strategic priority of strengthening community and quality of life,began January 2024 and is funded through the City's General Fund at an annual cost of$703,303. The City contracts with the third party, Block by Block, to administer the program, providing cleaning, safety and hospitality services downtown daily from 7 a.m. to 11 p.m. Ambassadors provide services within a 272-acre boundary running east to west from Carroll Boulevard to Exposition Street,and north to south from Congress Street to Eagle Drive (Attachment 1). An overview of services provided is included below. Cleaning Services: Cleaning, Power Washing, Trash Removal, Graffiti Removal, Beautification Safety Services: Referrals to Social Services & Collaboration with Outreach, Discourage Illegal Behavior, Regular Communication with Law Enforcement Hospitality Services: Hospitality Tasks: Directions, Motorist Assists, Safety & Umbrella Escorts, Business Contacts, Coordination with Parks Downtown Maintenance Subsequently, on September 17, 2024, City Council adopted the Design Downtown Plan. One of the plan's key recommendations was the establishment of a Downtown Public Improvement District (PID) to serve as a sustainable funding mechanism for initiatives aimed at improving the Downtown experience. The plan identified three core activities that could be supported through PID generated revenue: 1. Ambassador/Safety Program 2. Marketing and events 3. Public realm maintenance DISCUSSION: Economic Development and Community Services staff initiated research into the potential formation of a Downtown Public Improvement District. The purpose of a PID is to fund additional services or improvements within the defined geographic area of a city or county. PID's are special assessments paid by the landowners that benefit from the public services and/or improvements. May 16,2025 Report No. 2025-048 Downtown Public Improvement District Assessment Rates Assessment Annual Rate/$100 City Tax Assessment Ad Valorem Total Taxable Value Valuation Rate Pa ble Payable Payable $251,485,023 0.10 0.58542 $251,486 $1,472,249 $1,723,735 $251,485,023 0.20 0.58542 $502,972 $1,472,249 $1,975,221 $251,485,023 0.25 0.58542 $628,715 $1,472,249 $2,100,964 $251,485,023 0.30 0.58542 $754,458 $1,472,249 $2,226,707 *Notes: Boundaries based on the Design Downtown Plan; exempt and residential properties excluded. (Attachment 2) 133 Acres 355 Parcels 219 Downtown Pro pert Owners Total alue Land alue $110,088,677 Im rovement Value $142,521, 802 Market Value $252,610,479 Taxable Value $251,485,923 Key Milestones: • January 15, 2025: Staff met with Matt Beard, Director of Public Improvement Districts for the City of Fort Worth, to gain insights into the establishment and long-term sustainability of PID's. • January 17, 2025: Staff hosted an informational session for the Downtown property owners, focusing on the purpose,benefits, and use of PID funds. Twenty property owners attended the session, which included case studies from Downtown Fort Worth, Dallas and San Antonio. Participants engaged in a live poll to provide feedback to staff: o The attendees indicated support for: ■ Public Improvements ■ Safety and Security ■ Amenities and Facilities o Others requested more information on potential funding opportunities for the PID. Initial Survey Feedback: Following the session, staff developed a more comprehensive survey to collect detailed input from Downtown property owners. Survey information was distributed to 202 downtown property owner contacts via USPS and email. Fourteen property owners completed the survey. The 14 respondents own 28 properties, that represents approximately 13% of the identified 219 downtown property owners. Key survey findings include: • Willingness to Pay: o 21% (3 out of 14) of respondents indicated a willingness to pay an additional fixed PID assessment; 79% (11 out of 14) opposed May 16,2025 Report No. 2025-048 • Priority Services for PID funding: Ranked by importance: 1. Safety and Security 2. Cleanliness and Maintenance 3. Public Improvements ■ Additional services included Administration, Marketing, and Amenities/Facilities • Examples of High-Priority Needs: o Addressing homelessness o Enhanced street and sidewalk lighting o Sidewalk and trash receptacle cleanliness • Additional Suggested Improvements: o Parking solutions (e.g. remote lot shuttles, trolley service, 2-hour parking enforcement) o Road and sidewalk repairs • Support for Downtown Ambassador Program: o 36% (5 out of 14) in favor; 64% (9 out of 14) opposed Property owners appreciated the opportunity to provide feedback. Staff committed to further engagement, including follow-up meetings and one-on-one discussions to collect additional input. April 29, 2025: Staff conducted a follow-up meeting to review: • Survey Results • Existing City Services (e.g., landscaping and maintenance by Parks and Recreation) • Potential PID-funded enhancements such as safety, signage, wayfinding,public art, beautification, and pedestrian zone activations. Staff communicated to property owners that General Fund dollars for the Downtown Ambassador Pilot Program would be fully expended December 2025, and the program will end. Property owners were informed of the anticipated impact to services downtown upon discontinuation of the pilot program, as outlined in the below table (Figure 1). May 16,2025 Report No. 2025-048 Impact to Services Service Type Continued with Some Change Discontinued Power Washing Less frequent/slower response anticipated Clean Graffiti Removal Less frequent/slower response anticipated Downtown Litter Removal&Trash Bin Less frequent/slower response anticipated Hazardous Clean-up Less frequent/slower response anticipated Safety Escorts Discontinued Motorist Assistance Discontinued Safe Downtown Homeless Referrals Less frequent/slower response anticipated Daily Business De-escalation Discontinued Support Greeting Downtown Visitors Discontinued More Vibrant Business Engagement Continued by Main Street Program Manager Downtown Wayfinding&Recommendations Via signage and by request at Discover Denton Figure 1:Anticipated Impact to Services Downtown Beginning January 2026 Eighteen downtown property owners attended the meeting, and ten of the attendees participated in a real-time poll gaging support or opposition to the PID. Final polling from this session showed: • Overall PID Support o The majority(9 out of 10) do not currently support establishing a PID. • Ambassador Program Support o All ten property owners who voted in the live poll would support the program at a reduced service level and cost through alternate funding sources. CONCLUSION: Based on feedback and the general consensus from Downtown property owners, gathered through survey responses and in-person meetings, staff does not recommend moving forward with the establishment of a Downtown Public Improvement District at this time, as the PID must be property owner driven. Without an alternate funding source secured, the Downtown Ambassador Pilot Program will conclude in December 2025. ATTACHMENTS: 1. Downtown Denton Ambassador Pilot Program Boundary 2. Proposed Downtown Public Improvement Boundary May 16, 2025 Report No. 2025-048 STAFF CONTACT: Kristen Pulido Office of Economic Development Main Street Program Manager Kristen.Pulido(&,,cityofdenton.com (940) 349-7531 Courtney Douangdara Deputy Director of Community Services Courtney.Douan dg ara(d),cityofdenton.com (940) 349-7235 REOUESTOR: Staff Initiated STAFF TIME TO COMPLETE REPORT: 3hrs PARTICIPATING DEPARTMENTS: Community Services and Economic Development May 16,2025 Report No. 2025-048 Attachment 1 Downtown Denton Ambassador Pilot Program Boundary anhandle St Hann St W'if�rs St a 11 t Paisley Juicy Pig Bart ecue Parkway St in E w W Oak St w Denton County r Z Brewing Company The Campus Theatre E Hickory St E Mulberry St Y1 Fuzzy's Tacos 8 Stro Transit Center W Prairie St E Prairie St en One Artisinat W Highland St Cheese c Maple St t� 8 Clara's Kitchen U Mitt St rl May 16,2025 Report No. 2025-048 Attachment 2 Proposed Downtown Public Improvement District Boundary Unh—ilky Or •. t— J North Pe—CreeAWN .' ./• t� a MAPLEGEND t l Proposed PID Boundary '44 I it t� �1 e :1�11; •1 er. , � h ,a E �� vPa - 8 dad • Panhandle St _��m _ - J � ,; `-d� Egan St It (, aj� FFF I a `•J • i Congress St Parkway St�y` �•.. •- ; N Mc Ninneyit Greg St ..�"a'1r1.. .'•r.,,e a � . Oak St +, 1 E Oak St e �e 7 e W Hickory St NO- ___ _ I '• _ as Mulberry St r .e Sycamore St St „ ..............� Ch—tn.tSt ®� E Prairie St Prairie St a7, -----------_ Highland St -, Pecan 4 -_- - M.Ple St r w �agkO•���" Mill St O�O DESIGN DOWN701W'N D N US