Escondido merchant group wants to revamp 'unfair' fees

By: DAVID GARRICK - Staff Writer
Dues would be based on geography, type of business | Thursday, January 24, 2008 11:14 PM PST ∞

ESCONDIDO ---- A new fee structure proposed by the Downtown Business Association would charge businesses based on how much benefit they receive from the association's marketing campaigns and other initiatives.

The proposal would also give the association extra revenue for better lighting in downtown alleys, more trash cans, better security and a shuttle to Grand Avenue from the Sprinter station near Quince Street and Valley Parkway, association officials said Thursday.

The new fee structure would increase the dues paid by most businesses on Grand and nearby streets, while giving large discounts to many businesses on the outskirts of downtown that benefit far less from association marketing efforts and cleaning of sidewalks.

The proposal, presented to about 50 downtown merchants at a Thursday morning meeting in the Escondido Library, would also increase the fees paid by restaurants and retail stores. Meanwhile, big discounts would go to banks, doctor's offices and other businesses that do not benefit much from marketing.

The association has collected annual fees ranging from $150 to $900 from its roughly 800 members since they agreed to form a business improvement district in 1989. The district covers 68 square blocks bordered by Washington Avenue, Centre City Parkway, Fifth Avenue and Palomar Medical Center.

Association officials said the current fee structure is unfair because it is based on the number of employees at a business and its estimated annual revenue rather than how much benefit the business receives from the association.

"We want it to be easier, we want it to be faster and we want it to be more equitable," said Jan Allen, a downtown attorney who led the presentation Thursday morning. Allen said she began reviewing the current fee system last summer at the request of the association.

Debra Rosen, chief executive of the association, said another flaw in the current system is that many business owners without their own storefronts, such as individual hairdressers and antique merchants, pay no fees at all.

The current system is also based on self-reported revenue from the businesses, said Rosen, explaining that there is some reason to doubt the accuracy of the revenue estimates.

Sales tax revenue generated by downtown businesses has tripled in the last six years, according to city data presented Thursday morning, but total fees collected by the association have remained at about $150,000 per year during that period, said Rosen.

"I think we're the only (business association) set up on the honor system," said Rosen, explaining to merchants that San Diego's Gaslamp District association sets its fees based on type of business and location.

Rosen said she strongly supports revamping the fee system.

She estimated the changes would increase annual fee revenue to about $200,000, allowing the association to tackle many projects that members have been requesting. The maximum fee would not climb above $900, but many merchants would see increases, she said.

At Thursday's meeting, merchants mostly praised the proposal.

"If my fees go up, it's still probably less than the cost of one ad in a magazine," said Liz Gulliver of Architectural Relics on Grand Avenue.

Olga Diaz, who owns a coffeehouse on Kalmia Street, said she was pleased that the association was seeking merchants' input.

"Some of us will pay more and some will pay less, but we'll come up with a good plan collectively," said Diaz.

Rosen said the association expects to unveil a detailed proposal in late February. If it is approved by the association's board of directors, the proposal would then be submitted to the Escondido City Council, Rosen said.

Contact staff writer David Garrick at (760) 740-5468 or dgarrick@nctimes.com.

13 comment(s)[-]Go to Top

More Money wrote on Jan 25, 2008 7:40 AM:This is a Plan for the DBA to get More Money. You will all see this when the final net numbers (income) go up.

Downtown Business Owner wrote on Jan 25, 2008 9:07 AM:Yes, the bottom line will go up to help subsidize the costs of what WE want and need to continue growing. The economy is not good and we must do what we can to continue to drive visitors to OUR downtown. I cannot afford to advetise and market on my own so what the association does benefits me. The current plan is unfair and I as a business owner resent that. I am pleased that it is being reviewed and if it costs me more so be it. It will still cost me less than an ad campaign one time to bring people into my store. I want to be in a downtown that is doing something proactive to continue the growth and not become stagnant. If this does not work for you maybe downtown is not the best place for you to have your business.

Billy wrote on Jan 25, 2008 9:59 AM: The city should only be concerned with the needs of their people and stop promoting businesses. It is the businesses responsibility to run their business. The businesses should consider the three most important rules-of-thumb when starting a business: location, location, and location.

re: Billy's comment wrote on Jan 25, 2008 10:23 AM:location, location, location? I choose NOT to do business in downtown Escondido because of the crime, the gang activity and all of the illegals!! have you driven down grand avenue lately? looks like many businesses feel the same way as I do, and they've moved out. lots of empty storefronts...what a shame. escondido USED to be such a unique, neat place! that's just not the case anymore.

HAPPY DOWNTOWN wrote on Jan 25, 2008 11:32 AM:To re: Billy's comment; Are you kidding me? As a downtown business owner I am very happy with the efforts of the DBA. as far as the empty store fronts, it has nothing to do with "crime, gang activity and all of the illegals". Just in case you haven't been listening or watching, it has been a difficult economic atmosphere for ALL businesses. Downtown rents are 1/3 the price of the rents in any other area of Escondido and I feel the area has improved and continues to do so. I am curious though. How can you tell if someone is an illegal just by driving by? Maybe I'm just ignorant but I haven't seen the gang activity that you speak of and wouldn't know if someone is legal or not without asking. If you have so much disdain, please do stay away from Grand Ave.

Billy wrote on Jan 25, 2008 12:35 PM: To Happy down town: I'll bet you are happy down town. You must have a product that sells itself. At the very least you have a city council that is spending the taxpayers money to futher your business when it should be the down town business that are paying for the improvements. When choosing a business sight, or electing to remain at a business sight, the three major concerns should be location, location, location. And perhaps you have chosen right - heck the city is piling money on top of money to keep you in business.

John wrote on Jan 25, 2008 1:53 PM:re Billy's comment re City Council
The City Council has seen fit to invest in the downtown area with the result that sales taxes generated by the DBA merchants have grown substantially over the past 5-10 years. Not all of us have a product that sells itself but we advertise, promote, do direct marketing and we have had the two most successful years in our history since moving downtown.
P.S. And we love the environment of the restaurants, bakeries services that we find downtown within walking distance of our office.

here come wrote on Jan 25, 2008 3:15 PM:the negative bloggers as usual that are so unhappy with their lives they need to put everyone and the city down. I for one think that downtown has so much character and is a wonderful place to go. At least we have a nice downtown. Can't say much for any other north county city. I do not see any "gangbanger" or "illegals" hanging out grand. There is nothing there for them. Keep your negative thoughts to yourself. Go find something that will make you happy. Good job Escondido for making Grand a nice place to go. ...

Wondering wrote on Jan 25, 2008 3:20 PM:Who cares?

BD wrote on Jan 25, 2008 5:11 PM:The DBA is not the City Council. The DBA's efforts are funded by a "BID" which is funded by the business themselves, not tax dollars. I'd be mad too if the City were funding business' marketing efforts. Fortunately, they're not.

john wrote on Jan 27, 2008 10:21 AM:you guys all need to grow up and get a life

Jealous wrote on Jan 27, 2008 8:43 PM:of Escondido's grand ave. One of the best restraunts in San Diego county Sirinos is there, they have cruzin grand nights, and are even progressive enough to allow an adult buisness. I wish Vista would get it's act together like that.

Jeanne wrote on Mar 27, 2008 9:56 AM:Can we not be grateful for programs, events and services that promote the atmosphere of family, friends, and comminity? Whatever it takes to support the "home town" atmosphere of Grand Ave should be encouraged. Personally, I love seeing people of all ages and walks of life enjoying Friday evenings together. People, young or old, families or single are walking, smiling, talking and enjoying an evening outside - all good things physically and mentally. I welcome any effort encouraging a sense of community!

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