Community Benefit District (CBiD) Formation Process

There are approximately 200 property-based improvement districts in California. These districts range in size from smaller districts containing fewer than 50 properties to very large districts containing thousands of properties. Several have one or more CBIDs operating within their boundaries.

• Santa Rosa Courthouse Square
• Santa Rosa Railroad Square
• Old Pasadena
• Downtown Santa Cruz

A CBID is governed by a private nonprofit entity called an “Owners’ Association” as defined by Section 36612 of California’s Streets and Highways Code. Many Owners’ Associations require a certain portion of their Board seats to be held by District property owners, while other seats are held by District business owners.

No. The local government agency’s role is to initially approve the establishment of the PBID and collect or cause to be collected, the funds from the County Tax Collector. The funds will be used to pay for the programs and activities authorized by the approved Management Plan.

No. Taxes go into government agency general funds to be used throughout their jurisdictions as needed. PBID assessments can only be levied and used within the PBID boundaries to fund programs and activities authorized by the approved Management Plan. The PBID must be re-approved after each term that the PBID expires (5 or 8 years initially and up to 10-year periods thereafter).

The annual budget of a CBID is set by the Owners Association and is determined by the level and type of improvements and activities that property owners within the district wish to implement. As a result, CBID budgets range in size from under $100,000 to several million dollars.

Assessments are generally set using three metrics: Building area, lot square footage and linear property frontage. Below are examples of various formulas.

CBIDs  provide services selected by their members above and beyond those services already provided by the City.   Districts usually prioritize these general categories:

• District identity activities like branding, special events and marketing
• Maintenance and security, including sidewalk maintenance, beautification programs, and wayfinding signage.
• Demand creation that may include regional marketing or business attraction efforts.

District financing is based upon the levy of special assessments on real properties that receive special benefits from the improvements and activities implemented within the CBID’s Benefit Zone . Several factors can be used to determine proportional costs to the parcels within the District, including  linear frontage (excluding alleys), lot size or the footprint of the parcel, building square footage, and current & future residential condominiums that may be constructed within the District.

The process begins with a petition signed by a majority of property owners within the proposed district and involves submission and approval of required components such as a district management plan to City Council for approval. CBIDs must be established according to the State’s Streets and Highways Code.

Renewal is permitted once a district has reached the end of its pre-established term. The renewal term may not exceed ten years.

Disestablishment of a district may be requested by a majority of assessees during a specific time window once per year.

San Rafael Proposed CBID Area Jan 2025

This linked map provides parcel level information for properties that have been engaged to evaluate the potential of a CBID.

Across San Rafael, the vacancy rates in 2023 included: Office 15%, Retail 2.6%, and Industrial 3.6%