San Rafael business district expands budget

After consecutive years of lingering pandemic stress, the Downtown San Rafael Business Improvement District appears to be on the rebound.

In 2024, the first full year the district has been supported by the San Rafael Chamber of Commerce, the nonprofit introduced new events and expanded its budget, which is continuing to grow.

“With roughly $60,000 in our operating budget, I strive to produce events and promotions that either raise money or pay for themselves to make sure we have a robust calendar of activity in our downtown,” Sarah Tipple, director of the district, said at a presentation to the City Council on Dec. 16.

The district, which produces the May Madness hot-rod car show, the Hops and Vine Stroll, the Holiday of Lights and Winter Wonderland and more, added new programs such as the Chinese New Year dragon hunt, Pride Month window paintings, Juneteenth activities and a Dancing Under the Lights event, which is an evolution of the previous Dining Under the Lights program.

Tipple said programs are designed to add vibrancy, art and community.

“I’m hoping that these first annuals become staples in our downtown schedule of promotions for years to come,” Tipple said.

At the meeting, the City Council voted unanimously to support the district’s recommendation to renew annual assessments it collects from businesses on the the Fourth Street corridor from Lincoln Avenue to the West End neighborhood.

The assessments range from $25 for a personal service practitioner, like a salon in the West End, up to $425 for a financial institution on the main drag.

For 2024, the city has collected $63,525 in assessment revenue, lower than the pre-pandemic average of $83,000, indicating that some payments are delinquent or unpaid, or there are empty storefronts.

In 2023, the pandemic-strained business improvement district was thrown a lifeline because it faced a potential third year of revenue losses. The City Council voted unanimously to approve a two-year contract with the Chamber of Commerce to help re-energize the district.

This year, district events netted about a $22,000 profit for the district.

After expenses, the district is expected to close the year with a total profit of more than $2,000. Next year, the district’s total revenues are projected to increase about $23,000 to more than $135,000.

The events and marketing budget is expected to jump about $10,000 to more than $62,000, and the operating budget is expected to increase about $5,000 to more than $71,000, according to a financial report presented to the city.

Tipple said the addition of a part-time social media marketing manager last year continues to drive new online traffic to the district, its events and businesses. She said participatory events such as scavenger hunts encourage shoppers to go into stores.

For the next year, the district is working on several initiatives to spruce up the downtown, including a public art plan with the Downtown San Rafael Arts District and city staff; a mulching project on landscaped areas; and power washing, graffiti removal and storefront improvements.

The 2025 plan also includes a concerted effort to fill vacancies and put art on vacant storefronts. Other targets for the year include growing the Thursday night summer farmers market and supporting cultural diversity through celebrations for Lunar New Year, Pride Month and Dia de los Muertos.

Karen Strolia, chief executive officer of the San Rafael Chamber of Commerce, thanked the city for its support and credited the success of the partnership and the planned growth to Tipple’s leadership.

“Sarah is a force to be reckoned with: She has a vision for this community, she’s extremely passionate, she shows up, blood, sweat and tears with high energy, to make sure our downtown district is well and happy and healthy and thriving,” Strolia said.

Councilmember Eli Hill said he continues to be impressed with how much the business improvement district accomplishes each year on a shoestring budget.

“I am thrilled that the the BID continues to evolve,” Hill said.

“This is a hard job, and it’s gone up and down with the coming back from the pandemic and business changes,” said Councilmember Rachel Kertz. “And you’ve been able to really bring together all of Fourth Street.”

Mayor Kate Colin applauded Tipple and Strolia for adjusting to the new partnership.

“Congratulations to both of you for making that work over the past year, it’s a great model,” Colin said. “And you’ll continue to grow and build on it in the year to come, so thank you for an incredible year.”