Agenda Item Wording:
title
Town-Center Business Improvement Area annual report - Accept and approve the Annual Town-Center Business Improvement Area report, renewing the TCBIA management agreement with Downtown Visalians for an additional one-year term to begin July 1, 2026.
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Agenda Date: 06/01/2026
Prepared by:
Nichol Ritchie, Finance Manager, (559) 713-4379, Nichol.ritchie@visalia.gov,
Ruth Pena, Financial Analyst (559) 713-4327, ruth.pena@visalia.gov,
Renee Nagel, Finance & Technology Director, (559) 713-4375 Renee.Nagel@visalia.gov
Department Recommendation:
That Council accept and approve the annual report for the Town-Center Business Improvement Area (TCBIA), renewing the TCBIA management agreement with Downtown Visalians, Inc. for an additional one-year term to commence July 1, 2026.
Summary:
Business owners located in the Town-Center Business Improvement Area (TCBIA) pay a surcharge on their business tax (BT) for the purpose of providing parking, decorations, music, and promotion of public events and Downtown businesses. The revenue from this surcharge is collected during the City's BT billing process and administered by Downtown Visalians, Inc. (DTV) through a management agreement with the City. This agreement requires submission of an Annual Operations Report of all matters covered under the agreement for the preceding fiscal year. Approval of the report triggers renewal of the management agreement for another year. The calendar year 2025 Report is provided as attachment A part 1, and attachment A part 2 to this agenda item.
The current TCBIA management agreement was initially approved in May 2025, and the current one-year term runs from July 1, 2025 to June 30, 2026. The agreement is renewable annually, and according to the agreement terms, acceptance and approval of the attached annual report will renew the agreement for an additional one-year term, commencing on the following July 1st. Acceptance and approval of the annual TCBIA 2025 report will renew the management agreement for a term which will run from July 1, 2026 to June 30, 2027.
Background Discussion:
The economic vitality of the Downtown Visalia area has long been a high priority for both the City, and the business owners located there. The Town-Center Business Improvement Area was formed with the support of Downtown business owners, under the authority of State legislation in 1966 to support merchants in the downtown area. The formation of the TCBIA generated revenue with a 100% business tax surcharge for the purpose of improving the downtown area and promoting businesses located there. TCBIA has generated an average of $180,000 in Downtown Surcharge annually over the last 7 calendar years and is projected to receive $188,000 in 2026 calendar year as shown in Table 1 - TCBIA Revenue History. Revenues can fluctuate from year to year based upon economic conditions and timing of when renewals are paid.
Table 1 - TCBIA Revenue History
DTV was formed in 1963 and laid the foundations for the long-standing efforts of both the business owners and the City to keep Downtown Visalia thriving. DTV was instrumental in the adoption of the TCBIA, and this funding source was enacted to support their activities. For this reason, the DTV has been contracted for the administration of the TCBIA since inception, and as noted in the management contract, the DTV Board also serves as the TCBIA Board. Membership of this board is limited to property and business owners in the Downtown area and is governed by the DTV’s Board By-Laws. A list of current DTV and POA Board members is included in the attached report.
The TCBIA was formed under the California Streets and Highways Code, Part 5. Parking and Business Improvement Area Law of 1965 (Sections 36000-36081). Under this law, the TCBIA revenue may be used for the following purposes:
a) The acquisition, construction, or maintenance of parking facilities for the benefit of the area.
b) Decoration of any public place in the area.
c) Promotion of public events which are to take place on, or in public places in the area.
d) Furnishing of music in any public place in the area.
e) The general promotion of retail trade activities in the area
The report required by state law and the management agreement is to include:
i. All actual revenue, activities and expenditures during the Program year of the TCBIA
ii. A specific management plan, including operating budget, for the following Program year.
Report Elements
Financial and Budget Information:
The report included in attachment A, part 1 & part 2 contains a summary of receipts and disbursements for the 2025 calendar year (January 1-December 31) as well as the 2026 budget which lists planned and projected revenues and disbursements. The expenditures summarized in the report complies with the requirements of the Parking and Business Improvement Area Law of 1965 as summarized above.
Fiscal Impact including annual maintenance and operating costs:
The TCBIA surcharge is one of many funding sources used by the DTV to promote Downtown businesses. 100% of the revenue generated from the TCBIA surcharge is collected by the City and passed through to the DTV to be used for the purposes stated in California Law and discussed above. All funds collected are paid to the DTV quarterly, and the full balance of 2025 collections (January 1, 2024 through December 31, 2025) was paid to the DTV at the end of the 2025 calendar year.
Billing for these funds happens concurrently with collection of the regular business tax payments at no material increase in cost to the City.
Prior Council Action:
The Annual Operations Report for the Downtown Visalia Property and Business Improvement District (DTVPBID) was brought to council on 5/19/25.
Alternatives: N/A
Recommended Motion (and Alternative Motions if expected):
recommendation
I move to accept the annual report for the Town-Center Business Improvement Area and approve the renewal of the TCBIA management agreement with Downtown Visalians, Inc. for an additional one-year term to commence July 1, 2026.
Environmental Assessment Status: N/A
CEQA Review: N/A
Deadline for Action: 06/01/2026
Attachments:
Attachment A: (Part 1) TCBIA Annual Report for the 2025 Calendar Year
Attachment A: (Part 2) Financial Report TCBIA 2025 Calendar Year
Attachment B: TCBIA Management Agreement
Attachment C: TCBIA Boundary Map
Attachment D: Power Point presentation
Strategic Goal: Indicates which City Strategic Goal(s) this item supports. Check all that apply.
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☒  Infrastructure & Growth |
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