In 1988, the founding members of SJDA received approval from the City Council to form a Business Improvement District (BID) in downtown San Jose, and SJDA was selected to manage it. All business license holders in the BID are charged an annual fee based on the anticipated benefits they receive from the BID. The downtown BID boundaries are Interstate 280, Highway 87, Julian & Fourth Streets, plus the area surrounding the San Jose Arena bounded by West San Fernando Street, the Caltrain tracks, Julian, Montgomery, West Saint John & Autumn Streets.