Millbrae council delays vote on proposed downtown community benefit district amid economic uncertainty

The Millbrae City Council on April 8 voted to continue consideration of a petition that would start balloting for a proposed Millbrae Downtown and El Camino Real Community Benefit District until April 22, citing recent federal trade policy announcements and related market volatility.

Mayor Wayne Fung moved to continue the item “to give it a little time to examine some of those changes that is happening at the highest level of our government,” and the motion passed 5-0. The council also voted 5-0 to appoint Mayor Fung and Vice Mayor Ruben Oliver to an ad hoc subcommittee to refine district boundaries, outreach and governance details before the item returns to the council.

The council’s action came after more than an hour of public comment from downtown property owners, hotel operators and residents who raised concerns about timing, governance, and the assessment’s potential cost for small businesses. Christina Augarth, owner of a Millbrae hotel, asked whether hotels and short-term rentals would be required to pay the assessment and urged the council to consider separate treatment for lodging because hotels already contribute city revenue through transient occupancy tax. “Will short term rentals be required to contribute?” Augarth asked the council.

Several speakers told the council that the proposal was well developed but that the timing — coming amid recent federal tariff announcements and a sharp market downturn — made property owners hesitant to commit to a new assessment. Mayor Fung noted new federal tariff announcements and market losses in recent days and said the council should “take a little time” to evaluate how those developments might affect property owners’ ability to support an assessment. Council members also discussed outreach and governance concerns raised by community members and recommended additional targeted engagement with property owners.

City staff and legal counsel clarified the process: the current item sought council authority for the city, as a property owner, to sign a petition in favor of initiating balloting. If enough property owners sign, the matter would return to the council for a resolution of intent and a Prop 218 balloting process. City Manager Tom Williams said that delaying the council’s decision would not forfeit opportunities but would likely push any implementation into a later tax roll cycle if the district were ultimately adopted.

The council’s subcommittee will meet publicly under Brown Act requirements to refine district boundaries, identify likely assessment allocation and clarify governance and outreach materials. The item is scheduled to return to the City Council on April 22.

The council’s decision to delay followed a broad public conversation at the meeting about downtown revitalization tools and city efforts to support businesses. Several speakers urged the council not to cancel discussion permanently; rather, they asked for clear, transparent outreach about who would pay, who would serve on any oversight board, and how assessments would be calculated.

What happens next: staff will bring updated materials and outreach recommendations to the council on April 22. If the council decides to proceed at that time, the Prop 218 notice and ballot timeline would follow the state process for property-owner balloting and tax-roll assessment implementation.