City of San Diego Business Improvement Districts

Business Improvement Districts

Business Improvement Districts (BIDs) are a type of assessment district in which business owners choose to be assessed a fee, which is collected on their behalf by the City, for use in promoting and improving the business area. In California, BIDs date back to 1965 with the approval of Assembly Bill 103 - the "Parking and Business Improvement Area Law." Today there are approximately 200 BIDs in the state.

San Diego's Program
Benefits
Marketing Activities
Additional Funding
Other City Assistance
Forming a BID
Assessment Fees
BID Locations
Contact Information

San Diego's Program

The City of San Diego's BID program, the largest in the state of California and one of the most active in the nation, is administered by the City's Office of Small Business. San Diego's program dates back to 1970 with the creation of the Downtown Improvement Area, California's first metropolitan downtown district. Since that time, the small business community and the City of San Diego have created 18 separate districts, with another two in the preliminary stages of formation. More than 11,000 small businesses participate in these self-assessment districts, raising more than $1 million annually.

Benefits

A BID provides a business area with the resources to develop marketing campaigns, increase awareness and lobbying efforts, secure additional funding and enhance public improvement and beautification projects in partnership with the City. An organized business community can work more effectively to create positive change and increase support for businesses in the area. In San Diego, BIDs work closely with elected officials and city staff to voice collective concerns, monitor business regulations and obtain funding and support for their business development projects.

Marketing Activities

The BIDs have developed a variety of successful marketing activities that generate business for the districts. These activities range from special events such as restaurant tours, block parties, weekly farmers markets and holiday festivals to developing public relations and marketing materials. BIDs use the Internet, develop coupon books, coordinate cooperative advertising campaigns and develop and distribute district brochures. BIDs also coordinate some of San Diego's most popular, large-scale street festivals, including the Adams Avenue Street Fair, Gaslamp's Mardi Gras and Hillcrest's CityFest. BIDs also market the districts to potential businesses in an effort to reduce vacancies, provide a good mix of businesses and strengthen the BID. All of these activities help to further market the district to customers.

Additional Funding

Many BIDs receive additional funding through various City grant programs. BID assessments are often used to leverage funding for a variety of projects. While a BID pools its resources through assessment, the City of San Diego is allocating millions of additional dollars to many of the same business development and revitalization goals within BIDs. Many BIDs are receiving a significant City match of funds for their assessments. That is an extraordinary return on investment for individual small businesses and the BIDs as a whole.

Many of San Diego's BIDs receive funding from the City's Transient Occupancy Tax and from City parking meter revenues. Several of the BIDs also run very successful special events and secure corporate sponsorships for various projects, which helps to supplement business improvement projects. The City also invests millions of dollars in many of the City's BIDs through extensive streetscape improvement and redevelopment projects.

Other City Assistance

The City of San Diego is committed to supporting BIDs because they are strengthening the small business community, creating new jobs, attracting new businesses, and revitalizing older neighborhood commercial districts across the city. To improve and diversify the economic base of the districts, the City's Office of Small Business assists the BIDs with market assessments, sales tax revenue assessments, business plans, property owner assistance, retail recruiting, and database collection to measure neighborhood economic activity. The City also provides assistance to BIDs through several other targeted programs.

In addition to the matching funds and strategic assistance that BIDs receive directly, many other programs of the City's Office of Small Business are geared toward assisting individual businesses. For instance, the City's Storefront Improvement Program, which provides small businesses with matching grants to assist in storefront renovation costs, is available to BID businesses.

The City also supports the Business Improvement District Council, which is an association of the BIDs in San Diego whose purpose is to disseminate information, resources and expertise to its member districts. The Business Improvement District Council is primarily funded by the City of San Diego.

Forming a BID

Typically, a BID is initiated by local business owners petitioning the City to establish a BID on their behalf. Once the City Council has approved a resolution of intention, a copy of the BID proposal and resolution is sent to all affected businesses. After the City Council conducts two public hearings it may approve the BID establishment by ordinance, provided written protests are not received from business owners who will represent 50 percent or more of the total assessments to be collected.

Assessment Fees

The formula for determining the assessment amount is determined by the business organization that initiates the BID process, not the City. The respective business group takes into account the type, size, and location of the businesses. Assessments are levied on businesses on the basis of relative benefit from the improvements and activities to be funded. In San Diego, the fees generally range from $40 to $500 per business each year. A few of the newer BIDs have higher fees, ranging from $90 to $1,200 per year, with some anchor businesses paying up to $5,000 to support BID-related projects.

The fees help to fund BID board-approved business-related activities and improvements which will benefit the businesses. Activities, programs and improvements range from farmers' markets to business promotions to installing street lighting and removing graffiti. By pooling private resources, business owners in BIDs collectively pay for activities which they could not afford on an individual basis. Further, since a BID fee is a benefit assessment and not a tax, BIDs can consistently enact programs and activities without relying on scarce public funding. BIDs are one of the most valuable and effective finance tools available to the small business community.

The City collects the fee on an annual basis. The BID assessment is included as a separate charge on the business tax certificate bill that every business receives. All assessment funds are returned to the BIDs through annual contract agreements. The City of San Diego does not charge BIDs for the City staff or administrative costs associated with this service.

BID Locations

A Business Improvement District Chart (PDF: 200K) is available that provides more detailed information on specific BID's.

A Business Improvement District Map is available that highlights the approximate location of each BID in the City of San Diego. The map also provides direct links to respective BID web sites.

Business Development and Incentive Zone Mapping System

Contact Information

For more information, contact the City's Office of Small Business or contact the Business Improvement District executive management contacts directly.

Business Improvement Districts Contact List (PDF: 20K)