Merced leaders seek support from businesses, owners on plan to further revitalize downtown
Merced leaders say that a new designation for downtown could help bring the heart of the city to the next level.
The City Council on Tuesday unanimously gave staff the green light to distribute petitions to downtown property owners to gauge interest in a proposed property-based improvement district (PBID).
Encompassing G to V streets east to west and 16th to 19th streets south to north, the new district could spur economic development and beautification downtown, as well as bolster public safety, according to the proposal’s proponents.
The city has made a concerted push in recent years to revitalize downtown Merced, including making changes to improve downtown parking, and renovating key iconic buildings like Hotel El Capitan, The Tioga and The Mainzer theater.
Elected officials have said 2022 will be an exciting time for more positive momentum to come to fruition downtown, as new restaurants open doors, businesses set up shop and more public art goes up.
Downtown currently falls under a business improvement area, which generates about $60,000 to $90,000 annually, Merced Deputy City Manager Frank Quintero said Tuesday.
“Truth be told, for what we want to do and what we want to support in the downtown area, that might not be enough,” he said.
According to the PBID plan, the proposal “is designed to meet the goals of the district, to improve the appearance and safety of the PBID, to increase building occupancy and lease rates, to encourage new business development and attract ancillary businesses and services.”
If designated, the PBID would be governed by a nonprofit owners’ association with a board of directors comprised mostly of downtown property owners. The board would be in charge of deciding annual PBID services and budgets. Financing would come from levies upon real property in the district.
Ultimately, the result would be increased special benefits to downtown properties within the roughly 40-square block district — above and beyond those currently provided by the city, Merced officials said.
“I’m a big fan of PBID,” Councilmember Kevin Blake said, adding that many vibrant downtown cities are enhanced by a PBID designation.
Establishing a PBID by June of this year was pinpointed in the City Council’s 2021-22 goals and priorities for improving downtown Merced and the city’s economic development.
City outreach with downtown property owners and businesses has so far shown interest in receiving better public safety, maintenance, lighting, event management and marketing. “The outcome has been that there is a consensus, generally speaking, for these services to be provided through a PBID,” Quintero said.
If the PBID moves forward, the district would be split into three benefit zones that receive varying levels of services based on need.
Petitions will go out this month and be collected through March, according to the city’s timeline. The non-binding petitions must show support from at least 51% of property owners in the proposed district.
After receiving the petitions in April, the Merced City Council will set a public hearing and mail official ballots to downtown property owners. The final public hearing and ballot tabulation is expected in June.
This story was originally published January 19, 2022 at 10:03 AM.