Business fees for merchants in downtown San Mateo are going up, with the money going to a new executive director, increase cleaning, expand marketing and promoting events.
To help invest in downtown services and fill the long-standing vacant executive director position, the Downtown San Mateo Association plans to raise assessment fees on businesses in the area.
The increased revenue would allow the Downtown San Mateo Association to hire a full-time executive director for downtown advocacy and work, increase street cleaning, expand marketing and promote art and social events. The Downtown San Mateo Association, or DSMA, is a nonprofit advisory board that is charged by the council with managing downtown assessment fee funds and addressing issues. The downtown area has dealt with issues around cleanliness, larger vacancy rates and the pandemic in recent years, with Burlingame and San Carlos now cited as standards on the Peninsula. Colleen Rafferty, a DSMA board member and co-owner of Christensen & Rafferty Fine Jewelry in San Mateo, said the fees would help strengthen downtown and the city as a gathering place to support the community.
“Downtown San Mateo is the heart of our city and region, and having a healthy heart is essential to having strong cities and regions,” Rafferty said.
The proposed rate would be based on business type, location, size and employee count, with the costs intended to be more equitable. Businesses are now categorized based on retail, professional, service and financial. The city calculates the proposed rate for retail businesses through gross business receipts. The gross business receipts rates would keep the existing five tiers at $0-$150,000, $150,001-$400-000, $400,001-600,000, $600-001-$1 million and over $1 million, according to a staff report.
The proposed rate for professional and service businesses is based on the number of employees. The proposal would see some increases for retail but would be more costly for those in the professional sector like real estate, lawyers, accounting, engineers and the medical field. Proximity to the downtown core will also play a factor, with businesses in zone 1 closer to downtown paying more because of benefits from cleanliness and marketing projects. Those in zone two are assessed at 50% of zone one.
DSMA Board Member Lew Cohen, who also owns B Street Books, said the board’s motivation was about more equitable fees to protect mom-and-pop retail businesses and ensuring larger companies aren’t just paying a flat fee.
“This was about bringing equity to all the businesses downtown, so we are on a more level playing field,” said Cohen.
According to a city staff report, the revenue estimate for this year is $150,000, with an adjustment necessary to maintain existing services and provide long-term sustainability around cleanliness, restrooms, more public art and pedestrian services. Under the new fees, the annual revenue would range from $360,000 to $400,000. The fee has stayed the same for 12 years.
Because the DSMA is a business improvement district, the organization and the city work together to make downtown improvements, and the city collects assessments from members and contracts with the DSMA to run the downtown district, according to a staff report. If the council decides the DSMA did not meet its set goals, it can choose not to assess or reduce the fees. The City Council supported introducing the ordinance increasing assessment fees in the downtown business improvement area at its Nov. 7 meeting. Fee increases would start July 1, with city staff implementing the changes over the next three to six months.
Councilmember Eric Rodriguez felt the downtown needed the changes, provided the city monitor success through tangible metrics through polling and surveys. He thought it was long overdue to help the downtown get through tough times.
“I think this is a very important step in the right direction that is going to help us fulfill its unfilled potential,” Rodriguez said.
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Councilmember Amourence Lee felt getting the DSMA a dedicated executive director to lead downtown businesses would help organization efficiency and optimization and ensure resources help the business community.
“I think getting the DSMA an executive director gives us that possibility,” Lee said.
The DSMA executive committee will meet next week to discuss hiring an executive director, with hopes to hire someone soon. Cohen said the person needed to understand the many responsibilities of improving downtown.
“We need to find the right person who can work with our businesses community and plan events and do marketing,” Cohen said. “It’s a multifaceted position that is going to need the right person.”
Heather Cleary is the vice chair of the San Mateo Area Chamber of Commerce and the CEO of Peninsula Family Service, an organization downtown working to help residents address their life needs. She said the chamber supported the rate increases because it would attract more customers and jobs and show downtown San Mateo is a place to visit.
“We have talked to a number of businesses downtown, and they are all supportive,” Cleary said. “They believe every dollar is very important right now and do not take those dollars lightly, but we need the investment in our downtown, in our clean streets and [through] bringing more people and having more activity downtown.”
Cleary said the downtown had suffered during the pandemic, with changing conditions around eating. Cleary said helping to address the perceptions around dirty areas, particularly along B Street, was critical. She noted that closing B Street to improve walkability was an excellent first step, with more events a priority.
“I’ve very optimistic about what we can do with the city to support both our businesses and residents,” Cleary said.
So the city enacts policies during COVID to deprive businesses of income. Now when (hopefully) businesses are getting back on their feet, the city wants to put their hands into business wallets to recoup the piece of the pie they missed out on due to their self-inflicted business killing policies, while also charging you for services that I would expect were already in place? Businesses, if your leases are up, or if you’re thinking of joining Downtown San Mateo, think twice before signing another lease. For arguments sake, is an executive director required, why not just a regular director? Perhaps those who support the new fees can offer to pay the fees for those who don’t support the fee. Residents, get ready for even higher prices.
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So the city enacts policies during COVID to deprive businesses of income. Now when (hopefully) businesses are getting back on their feet, the city wants to put their hands into business wallets to recoup the piece of the pie they missed out on due to their self-inflicted business killing policies, while also charging you for services that I would expect were already in place? Businesses, if your leases are up, or if you’re thinking of joining Downtown San Mateo, think twice before signing another lease. For arguments sake, is an executive director required, why not just a regular director? Perhaps those who support the new fees can offer to pay the fees for those who don’t support the fee. Residents, get ready for even higher prices.
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Keep the discussion civilized. Absolutely NO personal attacks or insults directed toward writers, nor others who make comments.
Keep it clean. Please avoid obscene, vulgar, lewd, racist or sexually-oriented language.
Don't threaten. Threats of harming another person will not be tolerated.
Be truthful. Don't knowingly lie about anyone or anything.
Be proactive. Use the 'Report' link on each comment to let us know of abusive posts.
PLEASE TURN OFF YOUR CAPS LOCK.
Anyone violating these rules will be issued a warning. After the warning, comment privileges can be revoked.