MID YEAR REPORT

July-December 2018

SAN FRANCISCO STARTS HERE

Karin Flood Executive Director

From the Board of Directors

On behalf of the Union

Square Business Improvement

District (USBID) and our

Board of Directors and staff,

I am pleased to present this

Mid-Year Report to USBID

members, stakeholders

and the City & County of San

Francisco. The attached

report highlights the BID’s

major accomplishments

and financial performance

from July-December 2018.

I welcome your feedback,

encourage you to join

our efforts and stop by our

office to meet us in person.

Given Union Square’s

importance to the City’s

image and brand, it has been

the USBID’s focus since

its founding in 1999, to keep

the district clean, safe,

attractive, and vibrant. Union

Square is an international

destination for flagship

and luxury shopping, world

renowned hotels, and

entertainment. Approximately

1 million visitors come

to Union Square every week

to experience the heart of

San Francisco and its vibrant,

urban environment.

In recent years, Union Square

has become a center for

economic development and

investment in San Francisco

with new hotels and other

mixed-use developments have

opened. Continuing to thrive in

a changing retail environment,

the Union Square community

remains resilient and adaptable.

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Winter Walk(NOV-DEC 2018)

5th Annual

Winter Walk annual

2.2M

Locals and tourists

attended

No. 1

Most visited holiday

attraction

5 weeks

of food, craft cocktails,

decor, and entertainment

Union Square

Foundation

$51,000

Raised at annual Holiday

Fundraiser to benefit

homeless service programs

$200K

Donation received from

Chris Larsen Fund* for

security enhancements

Installed

Holiday Décor

and Lighting

Launched Strategic

Planning & Fundraising

Development Process

Downtown

Streets Team

Partnership with

Downtown Streets Team

to provide workforce

development opportunities

to homeless individuals.

1,678

Needles removed

43,200 lbs

of debris collected

4

New members employed

Over

3,100 Cleaning Hours

Contributed to Union Square

Major Accomplishments

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*: An advised fund of the

Silicon Valley Community Foundation

Miracle Messages

Partnership with Miracle

Messages to connect

those experiencing

homelessness with family

and friends.

Pilot Program

Launched in October 2018

110

Interactions

17

Messages recorded

11

Messages successfully

delivered

6

Reunions orchestrated

Advocacy

& Economic Impact

Advised The City and

County of San Francisco on

retail environment and

realistic uses of 2nd &

3rd floor spaces

Created Cannabis

Economic Development

Policy

Completed Economic

Impact Study

Received $1M

for Safe Shopper Program

From an anonymous donorx

Public Realm

Activations

Installed

“Paparazzi Dogs”

Temporary Art Statues on

Powell and O'Farrell Streets

Held 2nd Annual

Lunch on the Lane

on Maiden Lane between

April to November of 2018

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x From a Donor-Advised Fund through the

Silicon Valley Community Foundation

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17

20

18

20

19

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20July 2019

Resolution voted on by SF Board of Supervisors and signed by Mayor.

February 2019Petitions mailed to USBID members

for initial round of voting.

November 2018USBID Board approved assessment

methodology and boundaries.

Summer 2018Engaged in community outreach

September 2017Launched renewal campaign with

USBID members, community stakeholders and the City.

November 2017Membership survey conducted to gather feedback and shared vision.

September 2018USBID Board approved budget and services levels.

January 2019USBID Board approved management plan and engineer’s report.

May 201945-day mailing period when USBID members receive and vote on their ballots.

January 2020Launch new services

Renewal Timeline

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USBID Core Services

CLEANING

SAFETY

PUBLIC REALM

DESTINATION MARKETING

ADVOCACY

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Clean & Safe by the NumbersJULY-DECEMBER 2018

The amount of graffiti tags

we removed can stretch

across the Golden Gate

Bridge 1.5 times!

That is nearly 3 miles!

4,836

Hazardous waste

cleanup incidences

Removed

7,295 graffiti tags

Reached out to the

mentally ill 23,765 times

Disposed of

4,134 needles

Picked up 223,925 lbs

of trash and debris

Gave directions to over

11,328 visitors and tourists

The weight of trash and

debris we picked up is

equivalent of the weight

of more than 640

adult sea lions!

08

ASSESSMENT METHODOLOGY AND FINANCIAL STATEMENTS JUL-DEC YTD '18

Picked up 223,925 lbs

of trash and debris

Gave directions to over

11,328 visitors and tourists

The USBID is a 501(C)4 nonprofit organization and currently the largest of San Francisco’s 16 existing property based BID's and CBD's. The Union Square district covers 27 blocks and includes nearly 600 parcels, both publicly and privately owned. Funding for the district is proportionally shared by property owners, who are self-assessed to supplement services provided by the City.

These annual assessments are based on the following variables:

• Linear (sidewalk) frontage• Building square footage of non-residential properties• Property usage

Each property owner’s assessment is calculated according to the special benefit received from the services provided by the USBID. Accordingly, each property owner is assessed for their proportional special benefit for the following services:

• Cleaning, maintenance and safety services• Marketing, beautification and streetscape

improvements and advocacy (non-residential properties only)

How Property Assessments Are Calculated

Property Type x Clean & Safe

x x Marketing, Advocacy & Public Realm

Category 1: Less than 2,000 bldg sqft $ 85.30 $ 90.63Category 2: 2,000-4,999 bldg sqft $ 85.30 $ 181.27Category 3: 5,000-9,999 bldg sqft $ 85.30 $ 604.25Category 4: 10,000-29,999 bldg sqft $ 85.30 $ 1,208.51Category 5: 30,000-99,999 bldg sqft $ 85.30 $ 1,510.63Category 6: 100,000 or more bldg sqft $ 85.30 $ 6,042.55Residential & Public $ 85.30 $ 0.00Hallidie Plaza Parcels x x x $ 4.29 $ 0.00

x per linear street foot x x per building x x x per lot square footage

Assessment Rate Calculation Chart 18–19FY

a s se s sm e n t m e t ho d ol o g y a n d f i na nc i a l s tat e m e n t s j u l- dec y t d ' 1710

12/31/2018AssetCash $ 3,349,959 Receivables (Net) $ 216,452 Prepaids & Deposits $ 150,157 Fixed Assets (Net) $ 184,316 Total Net Assets $ 3,900,885

LIABILITIES & EQUITYLiabilitiesAccounts and Grants Payable & Accrued Expenses $ 1,536,939 Deferred Revenue $ 68,126 Total Liabilities $ 1,605,065

Net AssetsTemporarily Restricted Net Assets $ 284,361 Unrestricted Net Assets $ 2,011,459 Total Net Assets $ 2,295,820 Total Liabilities & Net Assets $ 3,900,885

Revenue & Carry-Over Actual Budget VarianceCarry over used from fiscal year 17-18FY $ 1,596,631 $ 1,596,631 $ -- Assessment Income $ 2,164,306 $ 2,121,686 $ 42,620 Other $ 461,637 $ 158,004 $ 303,633 Total Income $ 2,625,943 $ 2,279,690 $ 346,253

Expenses Actual Budget VarianceClean & Safe $ 1,418,023 $ 1,429,506 $ 11,483 Public Realm, Marketing, Events & Advocacy $ 472,669 $ 344,494 $ (128,175)Management & Administration $ 343,207 $ 392,936 $ 49,729 Total Assessment Expenses $ 2,233,899 $ 2,166,936 $ (66,963)Net Surplus (Deficit) $ 392,044 $ 112,754 $ 279,290

Assessment & Core Operations

*Assessment payment received in early January 2018 but recognized in December 2017

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These statements are interim and have not

been audited, reviewed, or compiled by a

CPA. They are the representation of the

financial status of the operation according to

the USBID management.

Statement of Financial Position jul-dec

Revenue & Carry Over Actual Budget VarianceCarry over used from fiscal year 17-18FY $ 2,037,580 $ 2,037,580 $ -- Assessment Income * $ 2,164,306 $ 2,121,686 $ 42,620 Grants $ 1,000,000 $ -- $ 1,000,000 Other $ 739,000 $ 482,765 $ 256,235 Total Income $ 3,903,306 $ 2,604,451 $ 1,298,855

Expenses Actual Budget VarianceClean & Safe $ 2,671,608 $ 1,689,833 $ (981,775)Public Realm, Marketing, Events & Advocacy $ 578,395 $ 594,997 $ 16,602 Management & Administration $ 395,063 $ 444,343 $ 49,280 Total Assessment Expenses $ 3,645,066 $ 2,729,173 $ (915,893)Net Surplus (Deficit) $ 258,240 $ (124,722) $ 382,962

a s se s sm e n t m e t ho d ol o g y a n d f i na nc i a l s tat e m e n t s j u l- dec y t d ' 171 2

*Assessment payment received in early January 2018 but recognized in December 2017

Total Results (Including Grants & Other Funds)

USBID BOARD OF DIRECTORS AND STAFF

Russell D. Keil, Jr.Audit CommitteePresident, The Keil Companies

Julie TaylorFinance CommitteeExecutive VP, Colliers International

Phillip CostonMarketing CommitteeSr. Store Manger, Brooks Brothers

Corinna LuebbePublic Affairs CommitteeGM, Taj Campton Place

Don ThomasServices & Public Safety CommitteeVP, Board of Directors, Club Donatello

Manuela KingStreetscapes & Public Realm CommitteePresident, RHAA Landscape Architects

Wes Tyler, Board PresidentGM, Chancellor Hotel on Union Square

Julie Taylor, TreasurerExecutive VP, Colliers International

Mark Purdy, SecretarySVP & GM, Grosvenor Americas

Board of Officers

Advisory Committee Chairs

usb i d b oa r d of di r ec t or a n d s ta f f14

Cammy BlackstoneDirector, External Affairs, AT&T

Stephen BrettPrincipal, Brett & Company

Matthew ColemanSalon Manager, Harry Winston

J. Timothy FalveySVP, Hanford-Freud & Company

James C. FloodPresident, Flood Corporation

Phil GinsburgGM, SF Recreation & Parks

Leah HeilSr. GM, San Francisco Centre Westfield

Shirley Howard-JohnsonArts Consultant

Jon KimballGM, Westin St. Francis Hotel

Russell D. Keil, Jr.President, The Keil Companies

Richard LeiderChief Financial Officer, Anvil Builders

Terry LewisGM, Hilton Union Square SF

Karl BijanOperations Manager

Tad MoorePrincipal, 250 Post Street LP

Kelly PowersAssociate Director, Hotel Council SF

Jim SangiacomoPrincipal, 233 Post Street LP

Spencer SechlerDirector, Business Development Impark

Minna TaoGM, Recology

Don ThomasVP, Board of DirectorsClub Donatello

Joshua Chan Project Coordinator

Chris BossDirector of Services

Bri CaspersenProject Coordinator

Karin FloodExecutive Director

Robbie SilverDirector of Marketing & Public Realm

Benjamin HorneDeputy Director

Staff of USBID

Clean & Safe Services provided by Block by Block

Board of Officers

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info@unionsquarebid.com • (415) 781-7880 • www.visitunionsquaresf.com