Central Vista businesses may see hike in annual fees
VISTA ---- A merchants group wants to expand the Central Vista Business Improvement District and increase the annual fees levied against businesses within its boundaries so that it can use the extra revenue to better promote the city's downtown area, officials said Friday.
It would be the first rate hike in the improvement district's on-and-off 10-year history and would nearly double the amount of money raised by the district each year.
"We have kind of settled into a plateau, and now we're stretching for the next level," said Tom Fleming, president of the Vista Village Business Association, a group funded by the improvement district that works to preserve and promote downtown businesses.
Fees paid into the district are collected by the city, which provides a financial match before handing the money over to the business association.
The City Council will decide Tuesday whether to schedule a public hearing in February to discuss the proposed changes.
The annual fees currently range from $33 to $500, depending on the type of business, the number of people it employs and where it is located within the district. Under the proposed fee structure, businesses in some areas would see a 50 percent fee bump, while other would see a smaller change or none at all.
The program raised about $34,000 last year, and the city added a $30,000 match. The revised fees would generate about $60,000, said Kevin Ham, the city's economic development director.
The business association will also ask the city to increase its match to $40,000.
The improvement district is generally located along South Santa Fe Avenue and Vista Village Drive, with about 270 business within its current boundaries that include the city's quaint downtown core and the Vista Village shopping and entertainment center.
The association wants to tweak the borders, adding an additional 60 businesses, according to Karen Clay, the association's executive director. The new boundaries would include the area that holds Lowe's Home Improvement Store as well as two small shopping and commercial centers along West Vista Way just east of Melrose Drive.
The money would allow for bigger and better promotions, such as a downtown chocolate festival, Clay said.
"We basically don't have a budget for marketing and advertising," she said.
Over the past few months, the business association has sent letters to business owners within the district, announcing its desire to raise fees, Fleming said.
If the council opts to proceed with a public hearing, it would likely be scheduled for Valentine's Day, Feb. 14. If businesses that would pay 50 percent of the fees protest, the changes would be off the table for one year. Otherwise, it would be up to the council.
If approved, the rate hikes would go into effect April 1, but business owners would not be billed until July 1, when the next year's assessments are due.
The City Council meets at 5:30 p.m. Tuesday in its chambers, 600 Eucalyptus Ave.
Contact staff writer Craig TenBroeck at (760) 631-6621 or ctenbroeck@nctimes.com.