Council renews Downtown Business Improvement Area assessment as DSMA points to rising foot traffic

The San Mateo City Council voted 5-0 to adopt the resolution levying assessments for the Downtown Business Improvement Area for fiscal year 2025'6 following a presentation from the Downtown San Mateo Association (DSMA).

Why it matters: The DBIA assessments fund the DSMAprograms that provide cleaning, events, marketing and merchant support in downtown San Mateo, affecting merchants, employees and visitors.

Key points from the DSMA presentation: - Executive Director Mackenzie Jakobek said it has been "a rewarding second year" and highlighted programming, marketing and merchant services that the DSMA provides. She cited a Placer.ai metric showing a roughly 19% increase in foot traffic to the B Street pedestrian mall compared with the prior year and a 121% increase compared with two years prior. - DSMA said about 20% of downtown businesses are food and drink establishments and described a suite of events (large-scale and pop-ups) intended to drive customers to merchants. - The DSMA reported revenue for FY 2024and expense priorities (payroll/admin, cleaning, marketing and events) and noted a reserve balance the director and council discussed in questions.

Public comment and council discussion: - Multiple downtown business owners and volunteers spoke in favor of the DSMA, describing increased visibility, event participation, and direct referrals to businesses. Speakers included Kathy Levitt (Tri Counties Bank), Amy Lee (volunteer), Robert Anderson (DSMA board member), Erica Wood (CEO, San Mateo Area Chamber of Commerce), Laurie Morales (merchant, DSMA board member), and Rick Bonilla (council supporter). Robert Anderson and others praised the partnership between DSMA and city departments such as Public Works and the Police Department. - Council members praised the partnership and suggested priorities for the DSMA board, including exploring strategic use of a reported reserve (council-member discussion referenced a $240,000 reserve) and considering cost-of-living adjustments for DSMA staff pay. - Council members also encouraged continued outreach to expand events beyond the central pedestrian mall (for example, North B Street) and to diversify programming to attract teens and seniors.

Action taken: Council adopted the resolution levying DBIA assessments for FY 2025'6 on a 5-0 vote and directed staff and the DSMA to continue coordination on events, cleaning, and downtown programming.

What happens next: The DSMA will continue programming and pursue a financial sustainability plan; the DSMA board and staff will follow up on council suggestions about reserve use and staff compensation as part of their planning.

Speakers (selected): Mackenzie Jakobek (Executive Director, Downtown San Mateo Association); Jennifer Chen (Economic Development Manager, City of San Mateo); Kathy Levitt (Tri Counties Bank, downtown business); Amy Lee (volunteer); Robert Anderson (DSMA board member); Erica Wood (CEO, San Mateo Area Chamber of Commerce); Laurie Morales (merchant, DSMA board member); Rick Bonilla (resident/commenter); Mayor Robert Newsom Jr.; Council members Fernandez, Verkogodicki, Diaz Nash and Deputy Mayor Lorraine.

Topics: ["downtown-business","economic-development","events","public-private partnership"]