Vista council sets Valentine's Day meeting to debate fee hike

By: CRAIG TENBROECK - Staff Writer | Tuesday, January 24, 2006 11:54 PM PST ∞

VISTA ---- A booster group for downtown Vista businesses says it needs more money to pay for enhanced marketing and attention-grabbing promotions, but its proposed revenue-boosting strategy has drawn criticism from some of the businesses it is striving to promote.

At Tuesday's City Council meeting, representatives from the Vista Village Business Association outlined a plan to increase its revenue by expanding the boundaries of the Central Vista Business Improvement District and increasing the annual fees levied against some of the merchants in the district.

It would be the first rate hike in the improvement district's 10-year history and would require the council's approval.

The business 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 downtown core and the Vista Village shopping and entertainment center. The city collects annual assessments from area businesses and provides a financial match before handing the money to the association.

No one from the public opposed the plan at Tuesday's meeting, and the council generally praised the association for its past efforts. On Monday, however, the city received a petition signed by the owners of 32 businesses seeking to disestablish the business improvement district.

"The way I look at it, it's another tax," said signer Mark Olinger, owner and sole employee of Dura Paint on Main Street.

Olinger, reached by phone before the council meeting, said he is assessed $200 annually and "I see nothing benefiting me whatsoever."

Another signatory, Terry Grant of Vista Electronics, said he would need more information before he could support a fee hike. "I'd be interested to see how much money the increase would generate and what it would specifically be used for," he said. "If I could be shown that, maybe I could be convinced."

After the meeting, Councilman Steve Gronke said he didn't believe the petitioners' views were shared by the mainstream, but "we need to listen to those complaints to see if there's any legitimacy to them."

The City Council scheduled a public hearing for 6:30 p.m. on Valentine's Day, Feb. 14, to consider the proposed changes. If business owners who would pay 50 percent of the fees protest in writing, the proposed changes would be off the table for one year.

Association President Tom Fleming addressed the petition before the meeting: "No matter what you do, you're going to be criticized by some. But I think we have an excellent plan for the future."

If approved, the association's plan to expand the boundaries of the improvement district would add 60 businesses. The new zones would include the Lowe's Home Improvement Store as well as two small shopping and commercial centers along West Vista Way just east of Melrose Drive.

Businesses within the improvement district are assessed $33 to $500 annually, depending on the type of business, their location and the number of people they employ. Under the proposed fee structure, some businesses would see fee hikes of 25 percent or 50 percent, while others would see no change.

The fees raised about $34,000 last year, and the city added a $30,000 match. The revised fees would generate about $60,000, according to Kevin Ham, the city's economic development director.

The association is also asking the city to increase its match to $40,000.

Karen Clay, the association's executive director, said the extra revenue would help fund promotions such as an "arts and culture" brochure and a chocolate festival.

Fleming said money generated by improvement district fees and the city matching funds accounted for about half of the association's budget last year.

Contact staff writer Craig TenBroeck at (760) 631-6621 or ctenbroeck@nctimes.com. To comment, visit nctimes.com.

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