What is a Business Improvement District?
A Business Improvement District (BID) is a type of special assessment district in which business owners collectively choose to be assessed, with the assessment proceeds then used by local business organizations to improve and promote the business district.
The Downtown Santa Ana BID was established in 1984 as a means of providing the Downtown business community with funding to promote the Downtown through events and advertising pieces, increase the security presence, enhance maintenance of the Downtown shopping corridors, and implement street improvement to the area.
The City serves as the collector of the funds through placement of a BID Charge on the business license tax. The City then provides the funds to Downtown Inc. and Santa Ana Business Council for programing.
What types of activities do the BID charges fund?
Per the Santa Ana municipal Code, BID charge revenue can fund he following activities:
- Decoration of any public place in the BID area;
- Promotion of public events which are to take place in the BID area;
- Furnishing of music in any public place in the BID area; and
- The general promotion of business activities in the BID area.
Business Tax Assessment
1.5 x assessment
The following businesses located within the boundaries of the Business Improvement District (BID), classified under City Ordinance NS 1690 as Amusement Services, Pawnbrokers, Service Station and Classification A, including, but not limited to Retail Sale of Goods, Hotel and Motels, Theaters and Food Establishments, shall pay an amount equal to one and one-half times their annual business license fee.
1 x assessment
All other businesses, including Professions, Trades and Services within the boundaries of the proposed Business District, shall pay an amount equal to their annual business license fee. Once the assessment formula is established, it cannot be changed without written notice to all businesses within the boundaries of the proposed Business Improvement District and a public hearing held by the City of Santa Ana.
0.25 x assessment
Businesses classified as Commercial Rental Property, Rental Property, Residential and Rooming House shall pay an amount equal to one-quarter times their annual business license fee.