By Clarence Cromwell
With a plan to promote the city's businesses nearly finished, the Saratoga Business Development Council is on the verge of asking merchants to form a business improvement district to assess themselves for promotion efforts.
Such a district would bring more shoppers to local businesses, and increased sales tax dollars to the city, according to community development consultant Dave Kilbourne. The district would also charge all businesses within its boundaries mandatory yearly fees, Kilbourne said at the Feb. 27 Business Development Council meeting.
The City Council hired Kilbourne Nov. 1 to help attract shoppers to Saratoga stores and lure merchants downtown.
Kilbourne emphasized that no decision has yet been made about the funding mechanism. But he also said few other options are practical. Alternatives include voluntary donations by businesses and partial funding from the city. California cities that market their merchants usually pay for improvements by setting up a business improvement district, Kilbourne said.
At an upcoming business council meeting, Kilbourne will ask business owners to complete a pair of surveys. One will ask how they think the promotional efforts should be paid for. Another survey will inquire what types of civic improvements the funding should provide. Kilbourne has suggested, among other things, murals on downtown buildings and decorative archways leading to business districts.
The city would set up and operate the district.
The City Council can establish a business improvement district by passing an ordinance that sets the boundaries of the district, formulas for assessing different types of businesses, and the uses of the money collected.
Kilbourne said the city could form a single district, or merchants in different shopping districts could form several small improvement districts. The move will bring increased sales-tax dollars to the city either way, Kilbourne said.
The city would collect the assessments and make payments for civic improvements and advertising.
Statewide, the average payment to a business improvement district is about $200-$300 per year, Kilbourne said.
Saratoga businesses might pay an average of $100 a year, he estimated.
Payments would vary, depending on the type of business; retail outlets would pay the most, and professionals, such as dentists or accountants, would pay the least.
The business council is planning several other projects to benefit local businesses. Members of the marketing subcommittee will help business owners incorporate into their own advertising the city's marketing theme, as soon as it has one.
The marketing committee is also working on a "paint-up and fix-up" plan for downtown businesses.
This article appeared in the Saratoga News, March 13, 1996.
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