Lincoln Avenue businesses opposing the increase say some of the association's services, events and decorations only help businesses that thrive on increased foot traffic. Businesses such as the Law Office of Donald Kilmer and Arthouse Kids say the increase is inequitable.

"It's rotten that we have to pay anyway because we don't benefit from all the events on Lincoln," said Marylea Adams, co-owner of Arthouse Kids, 1043 Lincoln Ave., between Coe Avenue and Willow Street.

The San Jose City Council will hold a public hearing on the move to increase business fee revenues from $55,000 to $110,000 on June 7. The council will hold another public hearing and vote on the increase June 21.

Kilmer, whose office is at 1261 Lincoln Ave., is protesting the required membership and fees in the business association. Kilmer likens the association's services to a Chamber of Commerce, where membership is voluntary. He believes membership in the business association should also be voluntary.

Before moving his practice to Willow Glen in 1998, the family law and civil rights lawyer had refused to pay fees to the San Jose Downtown Association, where his office was located. San Jose sued Kilmer for the funds, and won in both small claims court and superior court on appeal. Yet, his losses in court have not deterred him.

"It's not cost-effective to fight the city," he said. "I think it makes us give [up] our basic right to associate, including who we don't want to associate with."

Noah's New York Bagels general manager Mike Sanford sees the fee increase as a "necessary evil," during a time when costs are rising everywhere. The bagel shop had to increase prices three months ago because of rising costs.

Sanford also knows that the business association has not raised fees in 15 years.

"Maybe we're paying for the past 10 years. I don't see that as an intrusion on the business," Sanford said. "In the long run it's good for business."

For retailers like Noah's, the business improvement district fees will increase from $240 to $400. If approved by the city council, the increase will cover $11,500 of association member service programs, including membership mixers, website maintenance, the newsletter and a new business directory. The increased fees will allocate $20,400 for beautification, including sidewalk power washing and holiday decorations. These services include all businesses from Coe to Minnesota avenues.

A large portion of the fees, $78,100, will also be used for other promotional activities, such as marketing and "cooperative advertising," association executive director Norma Ruiz said.

Ruiz believes that some of the negative response to the increase stems from a misconception about the fees usage. Merchants and businesses think that the funding is predominantly used for events such as Dancin' on the Avenue or Light-up Willow Glen, which offers horse-drawn carriage rides during the holidays. But Ruiz said this is a misconception. Both events pay for themselves.

The increased fees will also be applied toward developing a brand image for Willow Glen, advertise Willow Glen businesses and also help defray high advertising costs for individual businesses.

Violet Johnson, manager of Spa R & R, 1345 Lincoln Ave., does not agree with the fee increase but said help with advertising and marketing would be a welcome change.

Monica Holmes can understand the concerns of both the businesses and the goals of the business association, she said. Holmes is co-owner of Hicklebees and served on the business association board for nearly a decade in the 1990s.

"I don't think anyone's excited about paying more money," Holmes said. "I believe usually the fees are put to good use and serves the purpose to make Willow Glen a better retail environment."

For more information on the fee increase, visit www.downtownwillowglen.org/members.asp or call Norma Ruiz at 408. 298.2100. San Jose City Council has scheduled public hearings for June 7 and June 28 at 1:30 p.m. in San Jose City Hall Council Chambers, 801 N. First St.