New City America

Property owners mull formation of downtown group

Tuesday, Jul 25, 2006 (Lodi News-Sentinel)
By Ross Farrow, Staff Writer

A group of downtown Lodi property owners are exploring the idea of establishing another business improvement district in downtown Lodi.

Lodi already has the Downtown Lodi Business Partnership, but a new fee-based organization — which would include some of the same people as the business partnership — would generate money to clean sidewalks, maintain landscaping and improve street lighting, said Dave Kirsten, a downtown business and property owner.

"If the project gains momentum, it would be completely independent of the city of Lodi, chamber of commerce or the DLBP," Kirsten said.

Kirsten also serves on the DLBP board of directors and stressed he did not speak for the partnership when discussing the possibility of a new group.

"I'm putting together a group of interested property owners to explore if it has merit in downtown Lodi," he said.

Kirsten plans to personally hire a consultant to explain the concept and give property owners a better idea if such a venture would be successful.

"I'm open to all suggestions and discussions," Kirsten said, before qualifying his comment to, "We're open to all productive suggestions."

The idea to consider a new district focused on property owners arose during a meeting of DLBP leaders and Lodi City Manager Blair King on July 10.

While talking about how to stregthen the city's relationship with the DLBP, King set up a conference call with Marco Li Mandri, a San Diego consultant who is an expert at working with downtown business and property owners.

Li Mandri discussed the idea of a benefit district involving property owners. Kirsten and Jaime Watts, the DLBP's executive director, ran with it as something separate from the downtown partnership.

Since 1996, Li Mandri's company, named New City America, has established 40 business improvement districts and community benefit districts, according to the company's Web site.

New City America is under contract to manage or form 15 business districts in the cities of San Francisco, Oakland, Los Angeles and San Diego as well as Pittsburgh, Pa.

King said any effort to form a property owners district would have to be generated by downtown property owners, not by the city.

Nevertheless, King said he is concerned that the business partnership doesn't have enough money to provide all the services it should to promote downtown Lodi.

"I am very supportive of anything we can do to make downtown more visible, more vibrant," he said.

Dan Ingrum, owner of Danz Jewelers on School Street, said he hasn't made up his mind whether a new property owners district would be a good idea.

"I think you always have to be open to ideas to improve things down here," Ingrum said. "It's always a good idea to look at it."

Although Ingrum pays dues to the Downtown Lodi Business Partnership, he said he wouldn't be averse to paying a second fee to spruce up the downtown area.

About 50 people in downtown Lodi not only own a business, but own the space they occupy. Kirsten said it hasn't been determined how much a second fee would cost.

"If we keep our value, it is well worth the investment," Ingrum said. "An additional fee would be worth it, depending on what the fees are."

Business owners pay annual fees to the DLBP depending on the size, type and location of their business. For example, retail businesses and restaurants in most of the downtown area pay from $200 to $400, depending on the number of employees. Those with businesses in the fringe areas of the business partnership area, mainly outside the School Street area between Locust Street and Lodi Avenue, pay from $100 to $200 in dues.

Financial institutions pay the highest fees — $500 — to the DLBP.

Joe Hassan, who owns a clothing and western wear shop on North Sacramento Street, said he hadn't heard about Kirsten's proposal, so he hesitated to comment on it.

"I'm for anything that will improve downtown," Hassan said.

But Bill McPherson, who has owned a Napa Auto Parts shop north of Sacramento and Elm streets for 12 years, questioned the need for another downtown group.

"We haven't seen the first redevelopment yet," McPherson said.

When he was informed that revenue from the property owners-based district would focus on cleaning sidewalks and maintaining street lamps and landscaping, McPherson said: "That was kind of the three things we were promised (by the DLBP).

"Would it be un-American to give us what we pay for before they reassess us?" McPherson asked.

The auto parts store owner added he doesn't envision a second business improvement district benefitting the downtown area.

"It's hard to trust anybody when they're in and out of power before they can complete their promises and projects," McPherson said.

Kirsten said he has no idea whether he will generate enough support to for a new benefit district to fly.

King and Easterling continually say that the property owner-based concept is being driven by themselves, not by the city or DLBP.

The next step, Kirsten said, is to invite Li Mandri to discuss the concept with interested property owners. Then they would decide whether to hire Li Mandri as a consultant.

"This is new territory for me," Kirsten said. "I would hope people would be open minded."

For more information on Li Mandre, see his Web site, http://www.newcityamerica.com.

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