A Property-Based Improvement District, or PBID, is a defined area in which property owners may approve an assessment to fund additional services and improvements that provide special benefit to properties within the district.

Potential services can include enhanced cleaning, public safety services, beautification, maintenance, and downtown marketing or promotion. The Downtown Redding PBID remains under evaluation and has not yet been formed.

A PBID could provide a stable, locally directed source of funding for services and improvements beyond those ordinarily provided by the City through its general budget.

Property owner and stakeholder input would help determine whether a PBID should move forward and, if so, which services should be included. No final decision regarding formation has been made.

The City facilitates the evaluation and potential formation process. This can include coordinating stakeholder outreach, reviewing formation documents, conducting required public proceedings, and administering the assessment ballot process.

If a PBID is formed, its management structure and day-to-day responsibilities would be established in the approved management district plan. The City may administer the district directly, or the plan may designate a private nonprofit owners’ association to provide the approved services under contract with the City.

Formation requires several steps under California law. These generally include preparing a management district plan and engineer’s report, establishing the proposed boundary and services, calculating proposed assessments, and obtaining the required petition support from affected property owners.

If the petition requirement is met, the City may initiate formal proceedings, provide required notices, conduct a public hearing, and mail assessment ballots to affected property owners. Ballots are weighted according to each property’s proposed assessment—not simply the property’s market value.

If the weighted ballots opposing the assessment do not exceed those supporting it, no majority protest exists. The City Council may then decide whether to approve formation of the PBID.

Each affected property owner may submit an assessment ballot supporting or opposing the proposed PBID. Ballots are weighted based on the proposed assessment assigned to each property.

If the PBID is ultimately approved, all assessable properties within the established boundary would be subject to the approved assessment, including properties whose owners voted against formation.

A registered professional engineer prepares an engineer’s report identifying the special benefit that proposed services would provide to each assessed property. The assessment assigned to a property cannot exceed the reasonable cost of the proportional special benefit it receives.

The assessment methodology may consider factors such as lot size, building size, street frontage, property use, benefit zone, or another measurable property characteristic. The exact methodology for Downtown Redding has not yet been finalized.

For example, two properties with different amounts of street frontage could receive different levels of benefit from enhanced sidewalk or street cleaning. If frontage is included in the approved assessment methodology, the property with greater frontage may pay a larger share. The actual calculation would be documented in the engineer’s report rather than based on this example alone.

The approved management district plan must explain the assessment method, the amount or rate of assessment, and any authorized annual adjustments.

Assessments may be adjusted only as permitted by the approved formation documents and applicable law. A new or increased assessment beyond the amount or adjustment schedule previously approved would require the applicable notice, public hearing, and assessment ballot procedures.

Generally, a newly formed district may have an initial term of up to five years. At the end of that term, the district may be renewed through another formal formation process for a term of up to 10 years. Different term limits may apply if a district is established or renewed to finance capital improvements with bonds.

The proposed term for a Downtown Redding PBID has not yet been established.

The specific services and budget have not yet been finalized. Depending on property owner input and the approved management district plan, potential services could include:

• Enhanced street and sidewalk cleaning
• Public safety or security services
• Landscaping and beautification
• Maintenance of public spaces and amenities
• Downtown marketing, promotion, and events
• Other services providing special benefit to assessed properties

The approved management district plan would identify the services, budget, assessment methodology, governance structure, and areas receiving service. Assessments must be tied to the proportional special benefit received by assessed properties.

If the PBID is formed, required annual reports would provide information about planned services, costs, assessment methodology, assessment revenue, and other required financial information. The City Council would review these reports as part of its ongoing oversight responsibilities.

The district’s governance structure and opportunities for property owner participation would be described in the management district plan and, if applicable, the owners’ association’s governing documents.

A PBID allows property owners to pool resources for services that may be difficult to provide consistently on an individual basis. Depending on the final service plan, these services could help create a cleaner, better-maintained, and more welcoming downtown environment.

A PBID does not guarantee increases in property value, occupancy, or business activity. Its services are intended to provide identifiable special benefit to assessed properties within the district.

Potential services such as enhanced cleaning, safety programs, beautification, coordinated marketing, and downtown events could support the overall business environment and visitor experience.

The specific services would be determined through the planning and formation process. Results such as increased visitation, customer activity, or tenant retention cannot be guaranteed.

Additional project information and opportunities to participate will be announced as planning resumes. These opportunities may include stakeholder outreach, surveys, informational meetings, or other community engagement activities.

Visit the Downtown Redding PBID project page for current information and future project updates.

You can also join the Redding by CivicMic Facebook group to follow project announcements and community discussions.