San Bernardino Council Revisits Downtown PBID Amid Broader Revitalization Debate

A yearslong push to establish a Property and Business Improvement District (PBID) in downtown San Bernardino returned to the City Council on Aug. 19, but council members stopped short of advancing the proposal and instead called for it to become part of a broader discussion about downtown revitalization.

The PBID appeared as a receive-and-file item, meaning no decision was required. No district was formed, no assessment was approved and the council took no action to begin the formal formation process.

Still, the discussion marked the latest public step in an effort downtown property owners have pursued for more than five years.

Kelly Rankin, senior project manager with Civitas, presented findings from a feasibility study completed in early 2023 and outlined what formation could look like if the city ultimately chooses to proceed.

A PBID allows property owners within a defined area to assess themselves to pay for additional services inside that district. Property owners would petition and vote on formation and could serve on the nonprofit owners association responsible for overseeing the district.

“The property owners who pay the assessment approve the services and budget and decide how those funds are spent,” Rankin said.

According to Rankin, the feasibility study found support among property owners and stakeholders who participated in the process, with cleanliness, safety and capital improvements emerging as the strongest priorities.

The city itself would play an outsized role.

Rankin said city-owned property represented approximately 25% of the overall square footage within the district modeled in 2023, making San Bernardino the largest single participant. San Bernardino County and Southern California Gas Co. also hold significant property interests within the proposed area.

Under the 2023 model, the PBID could generate slightly more than $300,000 annually, with approximately 70% dedicated to clean-and-safe activities. Rankin cautioned that the figures are outdated and would have to be refreshed using current county assessor records if formation moves forward.

“Ultimately, we did decide that formation is feasible,” Rankin said, adding that Civitas recommended proceeding with the process.

But several council members drew a distinction between whether a PBID could be formed and whether the city is ready to pursue one.

Councilmember Treasure Ortiz said she wants the conversation to include a deeper examination of the city’s own commitment to downtown.

“I always find it interesting to say, let’s proceed on something that’s feasible versus something that we’re prepared to do,” Ortiz said.

She questioned what partnership would look like with the city positioned as the largest property owner within the proposed district and said the PBID should be considered in the context of a larger revitalization effort.

“I want to learn more about this, in a way, from the city’s perspective on being a full partner in it,” Ortiz said.

Mayor Pro Tem Kim Knaus echoed that concern, saying the proposal warrants additional discussion rather than continuing to move through City Hall without resolution.

“I think it does warrant us having a little bit more robust discussion,” Knaus said, “and I think it would be more appropriate to tie it into our conversations regarding our downtown revitalization efforts.”

Knaus recommended bringing the PBID back when the council discusses downtown revitalization, which she said is expected in September.

David Friedman, a downtown property owner who has advocated for the PBID for more than five years, told council members that businesses and property owners want to participate financially in improving downtown rather than relying solely on city resources.

“We want to help collaborate with the city to fix up downtown,” Friedman said. “We want to pay into that and be a part of that.”

Friedman said the estimated cost of forming the district has increased from about $39,000 in 2023 to roughly $65,000 today. He also said formation expenses could potentially be written into the management plan for reimbursement to the city.

He argued that volunteer efforts alone cannot provide the long-term resources needed for downtown improvements.

“We shouldn’t be just relying on the kindness of people,” Friedman said. “We need money and resources and ways to pull more resources into the city.”

Friedman said a PBID could support landscaping, lighting, safety efforts, business retention and other downtown improvements. He also emphasized that he does not envision property owners alone controlling the district, saying businesses, residents, nonprofits and cultural organizations should have a role in its direction.

Resident Miriam Nieto told the council she generally supports the concept but wants stronger safeguards, clearer governance and greater consideration of businesses and tenants who could ultimately be affected by costs passed through by property owners.

“I am in favor of it, but I believe that there has to be a good governmental structure and more understanding on what safeguards we can provide,” Nieto said.

If San Bernardino eventually proceeds, Rankin said the formation process would take roughly nine months and include updated property data, a management district plan, an independent engineer’s report, property-owner petitions, mailed ballots and a public hearing.

Property owners representing more than half of the proposed assessments would first have to sign petitions before the matter could return to the council. A majority protest during the subsequent ballot process would prevent the PBID from being formed.

Rankin said completing formation in time for the county’s 2027 property tax deadline could allow the district to begin operating in January 2028. Missing that window would delay implementation by another year.

For now, however, the question before San Bernardino is broader than whether a downtown PBID is technically feasible. The next debate is increasingly shaping up around where the district fits within the city’s larger strategy — and how much City Hall itself is prepared to invest in downtown’s future.