One of the first questions that comes up when discussing a proposed CBD is “How much is this going to cost?”
There is nothing wrong with being concerned about the bottom line, but there is a danger of missing the bigger picture.
The intention of the CBD is to create value for your business or property by making it more desirable. It is important
to clearly understand that each dollar paid is used in the district for the purposes proposed. It is not tax revenue;
it cannot be used or diverted to any other purpose.
Noe Valley participants have seen an approximately 40% return on their investment. They have received close to one
million dollars in grants since they began in 2005. That means for every dollar a merchant or property owner is spending
they are seeing $1.40 worth of services.
Another perspective worth taking is realizing the cost of not taking advantage of this opportunity. Many other
shopping districts have already formed or are in the process of creating benefit districts already. As well as creating
more attractive environments for shopping, these established districts have a representative (Executive Director) who
advocates for the district at City Hall or in applications for grants. Right now nobody is doing that and as a consequence
we are not receiving any of the benefits. We are missing out. There is a reason that to date every existing district in
San Francisco that has come up for renewal has done so with only one exception. There is value.
Below is a simple chart that breaks down the budget and another that provides the rates and methods of assessments. You can
read the actual Plan for specific breakdowns by property.
Proposed West Portal CBD Budget
|EXPENDITURES||Budget||% of Budget|
|Maintenance, Beautification, Streetscape Improvements & Safety||$125,000||56.82%|
|Promotion & Economic Development||$48,000||21.82%|
|Advocacy & Administration||$47,000||21.36%|
|Other Revenue (non assessment funding to cover general benefit)||$7,102||3.23%|
Proposed West Portal CBD Assessment Rates
|Assessment Rates:||# of Feet||Budget Assigned To||Yearly Rate, per foot||Monthly Rate, per foot|
|Linear Frontage||4,861||$158,960 - $7,102 = $151,587||$31.2425||$2.6035|
|Building Square Footage||370,348||$61,040||$0.1648||$0.0137|
How it works. The flow.
The assessments appear on the property tax bill of all parcels in the district. The city collects the money but does
not have any control. It is turned over to District to be spent as proposed in the plan.