Hey, here’s a great idea for a PBID study … You pay for it.
Mammoth’s Planning and Economic Development Commission (PEDC) continued to discuss the formation of a Property-Based Improvement District (PBID) and Infrastructure Financing District (IFD) that would assist in the creation of snow management and parking districts along Main Street.
Urban design and planning studio Winter & Company, which acted as lead consultant on the Main Street Plan, presented its recommendation that the Town pursue a Property-Based Improvement District (PBID) at a May 14 special Town Council meeting.
At that time, presenter Jamie Licko of Centro, Inc., explained how the PBID would generate money through an additional property assessment placed on property owners’ tax bills in a specific district area. The PBID would be led and managed by stakeholders, with the Town acting as a partner.
Collected funds would go toward the management of the district, maintenance, and enhancements, such as snow removal, trash and recycling services, special events, and parking and access management.
Like the Tourism Business Improvement District (TBID) assessment passed in July of last year, the PBID would require the support of property owners representing 50 percent plus one of the assessed property, and would depend upon Council approval.
Unlike the TBID, the PBID would also be subject to a Prop. 218 vote.
Licko projected the PBID could raise about $557,384 annually for Main Street.
The assessment would be for five years, with an option to renew for 10 years after.
An IFD, on the other hand, would be Town-led, with support from the affected taxing bodies, such as the School District and Fire District. The IFD would not increase existing property taxes. Instead, a percentage of the growth in property tax above that baseline level would be re-dedicated to improvements in infrastructure.
An IFD could generate between $20,000-57,000 in its first year, depending on whether it focused on specific project sites or an entire district area. The IFD could be established for up to 30 years.
At the Town Council meeting, Noré Winter of Winter & Co. observed that “TBID is promoting the product. We’re helping enhance the product.”
PEDC Commissioners discussed next steps at their May 28 meeting, including talking with [Main Street] property owners, other local agencies [such as the districts affected by an IFD], and seeing the feasibility of actually implementing these tools.
Senior Planner Sandra Moberly said that staff generated an estimate of $22,000 for a feasibility study. The total cost for consultant services to implement both PBID and IFD, including the $22,000, would be $118,500.
“There is currently no money in the budget, without using the Reserve for Economic Uncertainty,” she noted. Moberly said there had been some talk of private donations from the business owners themselves.
According to Licko, entities that help fund the formation of a PBID can be repaid out of the PBID’s first year of revenues. That is, if the PBID goes through.
Licko said that the cost of creating the PBID would be about $75,000 including legal fees, an engineers report, and the election of the assessment. “IFD would be similar to that,” she added.
PEDC Commissioner Elizabeth Tenney said that she had witnessed two stakeholders and major property owners (John Veruck and Tom Cage) “jump up and say they are willing to help finance this” at the meeting prior to Town Council.
Perhaps given this testament to business owners’ enthusiasm, the PEDC suggested a private-public partnership to push the PBID and IFD through. Chair Brown proposed a 50-50 split, with $11,000 raised privately by business owners, and $11,000 raised by the town to perform the feasibility study.
“Option 2 would be that $22,000 could be raised privately,” she said.
“Is there no option for a smaller portion of private funding?” wondered Vice Chair Colin Fernie. “Just to play devil’s advocate,” he added.
“Anything less, and you don’t want to get it done,” argued Commissioner Rhonda Duggan. “As much as we don’t want to tax the public with it, if they can come through, that would be very helpful.”
Duggan noted that Main Street is currently “not prepared to present the best of what [it] has,” and could benefit from improved snow management and parking options … “If it snows again,” she added.
The PEDC agreed to support pursuing the feasibility study, with the intent to explore 50-50 private-public funding, and with the understanding that the Commission will extend invitations to stakeholders and chair any PBID/IDF meetings.
The recommendation will go before Town Council on June 4.
