THE DOWNTOWN BID REPORT

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ISSUE

03 JULY 2018

QUARTERLY JOURNAL OF BUSINESS IMPROVEMENT

THE

DISTRICT NEWS

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SBDC-OC HELPS DOWNTOWN BY SPONSORING NEW ARTIST VILLAGE BANNERS Michael A. Ocasio President & CEO Small Business Development Corporation of Orange County has lead an active small business economic development organization in Downtown since 2001. Recently Ocasio offered to help Downtown BIDs with long time desired upgrades and beautification of the Artist Village in the way of Banners, the SBDC has awarded Downtown with a $5000.00 grant. Ocasio stated:

“We are delighted to be of assistance to help fund the acquisition of banners for the Art District. As we are a quasipublic/private 501(c)(3) non-profit organization we are tax exempt and simply, our grant funding activities are donations to support the public good.” Ocasio operates an Entrepreneur Loan Fund (“ELF”) providing direct capital assistance up to $10,000 and is seeking ideas of how to further promote the fund to small businesses (mom & pop) in the City of Santa Ana. If your are interested in the agency’s most recent Annual Report and related program information please contact Mr.Ocasio here: 271 N. Sycamore Street Santa Ana, CA 92701 714 571-1900 Office 951 538-9795 Cell mocasio@sbfdoc.org

SANTA ANA, CALIFORNIA

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What Good Is a BID Anyway? Merchants Question City Budget Shortfalls! Planning: To Serve the Downtown Community Downtown Development News Federal Plaza Specific Activation Mayor Pulido Rallies Downtown Merchants Downtown Arts & Gallery News Quarterly Downtown Business Highlight Downtown is Building a Professional Internship Pipeline

Photo Credit: Lisandro Orozco

Recognizing current social media postings and opeditorials critiquing Downtown Merchant Groups, has revealed that many folks are still confused about what a Business Improvement District does and whose interests the BID aims to serve. Therefore, this editorial in the spirit of transparency is tasked to be a point of clarification for B.I.D. members to clear up any misunderstandings that they hear circulating. 1. Overview Business Improvement Districts (BIDS) are business led partnerships created to deliver additional services to local businesses. BIDS are a powerful tool for organizing a district and directly involving local businesses into local activities within their district allowing the business community and the city to work together to improve the local trading environment for all within the district. 2. What is a Business Improvement District? A Business Improvement District is made up of a defined area in which a levy is charged on all business rate payers in addition to the business rates tax bill. This levy is used to develop projects which will benefit businesses within the district area. Through the BID mechanism local businesses have a method of financing amenities and serving the district directly through a redistribution of local tax dollars that directly serve to create enhancements within the district. This enables businesses funds to be redistributed and used for a variety of local services needed. There is no limit on what projects or services can be provided through a Business Improvement District. The only requirement is that it should be something that is in addition to services provided by local authorities. Improvements may include, but are not limited to, extra safety/security, cleaning and environmental measures.

Besides these tax funds which come from local merchants, Business Improvement Districts Groups have the possibility of raising money in ways similar to other nonprofit organizations through fundraising and other activities, yet a BIDs base funding is typically provided by this special tax. 3. Is Downtown Santa Ana’s Business Improvement District still considered a PBID? The answer is no! Although many are still of the belief that Downtown Santa Ana operates as a Property Based Improvement District (PBID) this is inaccurate. Over seven years ago businesses within downtown district fought to disestablish a PBID and won.

The current breakdown for BID services can be estimated at a median amount per month per business, totaling less than a phone bill. These costs assure a base set of services including district wide marketing, promotions and special events that bring attention to the District. These events are created by those who work for the BID as directed by their respective Directional Boards made up of a mix of merchants and property owners as well as residents within the BID district. (For more information look at page 7 in article “Understanding your BID fee) 4. How is a Business Improvement District established? Currently there are two distinct BID groups in Downtown Santa Ana, Santa Ana Business Council and Downtown Inc.


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