The Santa Ana City Council unanimously voted last week to dissolve its Downtown Business Improvement District, to which local merchants have been required to pay annual fees—on top of business taxes—after an outcry from some of the area’s merchants.
The area’s improvement district, known as a BID, was started in 1984 to fund promotions and for landscaping and maintenance, according to city officials.
But merchants claim a management group that has run the BID since 2013 has overlooked the area’s smaller businesses in favor of promoting nightlife such as clubs and expensive restaurants.
Some have said such is especially damaging to their businesses on the heels of the COVID-19 pandemic and the ongoing OC Streetcar construction, which has deterred customers from coming to the area.
“Last year, construction and financial hardship brought us all together,” said one business owner during public comment at the city council’s Jan. 17 board meeting. “That was our eye-opening time to realize not only the business improvement district has not worked for us, but all those years we were paying to be neglected, ignored, abused, and cheated.”
During the meeting, another business owner called for the creation of a new system that partnered with merchants.
“I’m really excited that the city listened to the merchants,” the business owner said during public comment. “This is a golden opportunity to create something better together.”
The BID has received roughly $100,000 per year in assessments from businesses, according to city officials.
Now, any leftover revenue will be refunded to business owners, city officials said.
A final vote on the matter is scheduled for Feb. 7.
A spokesperson for the management company that has run the BID, Downtown Inc., did not respond to requests for comment by press deadline.
