Business Improvement District (BID)
BID proposed 2011-12 changes
The SJDA Board of Directors unanimously approved a proposal on March 11
to raise downtown Business Improvement District (BID) fees or face a
substantial cut in BID programs and services beginning in July. The
approval of the BID rests with the City Council and requires three
public hearings.
Fees for most businesses, including retail establishments, would
increase 10 percent. Non-retail businesses would experience a slightly
higher increase. A new $100 flat fee for nonprofits, which were
previously exempt from BID assessments, is also proposed.
- Rates of retail businesses with fewer than 10 full-time employees would increase from $240 to $264.
- Rates of non-retail businesses with fewer than 10 full-time employees would increase from $150 to $185.
- Non-profits would be charged $100 for the first time.
- Rates for apartments and hotels would increase from $7.20 per room / unit to $7.92, with minimum from $240 to $264.
- Commercial property owners:
- Less than 10,000 square feet - rates would increase from $400 to $440.
- 10,001-50,000 square feet - rates would increase from $900 to $990.
- 50,001-100,000 square feet - rates would increase from $1,400 to $1,540.
- More than 100,001 square feet - rates would increase from $2,000 to $2,200.
The Downtown Association faces a $400,000 budget gap resulting from a 62 percent reduction in contract funding by the San Jose Redevelopment Agency. The small increase in BID fees will cover a quarter of the gap, but SJDA will also need to boost sponsorship revenue and decrease overall expenses to balance its budget.
For information, contact Jenna Tenorio.
Download the Council Resolution To Increase BID fees
Download the Business Improvement District proposed 2011-12 changes
BID Q & A
What is a BID?
BID stands for Business Improvement District. A BID is authorized by state law and created by the City Council. Its purpose is to promote and improve a specific area for the benefit of businesses within the area. The BID fee is a benefit assessment. In San Jose, the city assesses all business license holders a BID fee annually, based on anticipated benefits. The San Jose Downtown BID is bounded roughly by Julian Street, Fourth Street, and Highways 280 and 87, where it jogs west to include the arena and the train station, and Coleman Loop area.
Who manages the BID?
Every year since 1989, the San Jose Downtown Association (SJDA), a nonprofit organization, has been selected by the City Council to manage the Downtown BID. Every business that pays the BID is automatically a member of the Downtown Association. The members elect a board of directors to determine budgets and programs.
Do you raise the BID every year?
No. Since 1989, the BID has been raised twice: in 1994, when the BID boundaries extended to include the Arena area; and again in 2003 to include San Jose MarketCenter.
How is the BID money used?
In 2010-11, BID fees generated about $600,000 representing 18 percent of SJDA’s budget. The rest of SJDA revenue comes from earned income through events and sponsorships, plus contracts and fees for services. For every dollar the business community puts into the BID, six more dollars are leveraged by SJDA to improve Downtown. By state law, the BID money can only be used to support general business activities, promote public events, decorate public places and provide music and entertainment in the BID area..
How much do I pay?
The annual fees are calculated on expected benefit. For example, retail pays more than non-retail, and large businesses pay more than small businesses with maximum annual assessment fee of $6,000. The rate schedule is: retail $29.04 per employee/$264 minimum; non-retail $19.35 per employee/$185 minimum; apartments and hotels $7.92 per room/$264 minimum; property owners/parking lots range from $440 to $2,200 maximum charge per year depending on square footage.
How does the rate work for commercial landlords?
About half of the commercial landlords in the BID pay $400 a year. The fee scale is graduated upward, with landlords with more leasable space paying higher fees.
What do I get for my BID fees?
In general, BID funds are spent on a variety of projects including graffiti removal, flower planters, marketing brochures, maps, websites, weekly e-letters, holiday street lighting, and events such as the Farmers’ Market, Music in the Park, Starlight Cinemas, South First Fridays and Downtown Ice outdoor holiday skating rink. SJDA advocates on behalf of BID members for a vital and vibrant Downtown for businesses and their clients, customers and employees. Association staff members are available to assist BID businesses and property owners and address their individual concerns. SJDA provides a strong voice for Downtown to the media, government officials and policy makers.
Download the Business Improvement District Q & A
BID Benefits
Make downtown a desirable destination and good business address
- · Promote validated parking program for retail businesses
- · Develop policy incentives such as discounted monthly parking
- · Manage Groundwerx cleanliness, safety and beautification programs
- · Install lighting to make streets look, feel and be safer.
- · Add flower planters, decorative and tree lighting, and kiosk information
- · Work with police on crime prevention and homeless issues
- · Clean up vacant historic buildings and install art exhibits
- · Provide holiday lights, banners, and seasonal promotions
- · Host orientation meetings for new businesses locating downtown
- · Convene information forums and town hall meetings
- · Staff more than a dozen ongoing committees working on promotions or solutions to specific downtown and neighborhood issues
- · Offer free DASH shuttle service
Promote downtown as a business and entertainment destination
- Advocate on policy and fee issues on behalf of downtown businesses
- Upgrade downtown’s image as clean, friendly and fun
- Arrange media coverage of positive news
- Write Op/Ed editorials and frame downtown issues
- Promote arts, dining, nightlife and special events
- Develop cooperative advertising opportunities for members
- Produce brochures, rack cards, fliers, gift certificates and special offers
- Promote parking validation program with signs, and in ads and brochures
- Provide parking directions and maps at sjdowntownparking.com
- Maintain sjdowntown.com web site and links to members
- Produce Downtown Dimension monthly newsletter and Downtowner Online weekly calendar
- Co–produce and distribute visitors guides, event brochures, maps, and posters
- Organize special promotions for downtown retailers and districts
- Produce an online downtown Business Directory
- Provide a one–stop–shop for downtown information to serve developers, employers and visitors
Bring people downtown and make it a positive experience
- SJDA produces events more than 100 days a year that attract more than 300,000 people:
- Music in the Park series (Plaza de Cesar Chavez)
- Downtown Farmers’ Market (San Pedro Square)
- Downtown Ice Rink (Circle of Palms)
- South First Fridays art walk (SoFA district)
- Starlight Cinemas (Post Street, San Pedro Square, SoFA)
- Dine Downtown “restaurant week” (participating restaurants)
- City Bites sampler day (participating restaurants)
- Phantom Art Galleries (in vacant store windows)
- Open House events (downtown high-rises)
- www.sjdowntown.com attracts more than 250,000 unique visitors per year
- Groundwerx, managed by SJDA, picks 55 tons of garbage and debris off downtown sidewalks and removes 20,000 graffiti tags
Download the Business Improvement District Benefits
More questions and concerns?
- If you have questions about BID. fees or want more information, call Scott Knies, 279-1775.
- To become a member, email Ellen Lee and include the name of your business, contact name, address, phone number and web information, if you have a website.
- Si tiene alguna pregunta acerca del BID, o si necesita mas informacion, llame a Jan Schneider, 295-3610.
- Ñeå ñöôïc theâm chi tieác veà BID, xin goïi 408-279-1775. Ñeå ñöôïc phuïc vuï baøng tieáng Vieät, xin lieân laïc Ong Scott Knies ñeå gaëp vôùi thoâng dòch vieân.