DATE: 06/03/2026
TO: Honorable Mayor and City Council Members
FROM: Economic Development Department
2026-212
REQUEST FOR CITY COUNCIL ACTION
SUBJECT:
UPDATE ON POTENTIAL DOWNTOWN BUSINESS IMPROVEMENT DISTRICT
FORMATION OUTREACH
EXECUTIVE SUMMARY:
This staff report updates the City Council on outreach efforts for a potential Downtown Business Improvement District and asks the Council to provide direction on next steps.
RECOMMENDED ACTION:
That the City Council direct staff to discontinue Business Improvement District formation activities.
BACKGROUND & HISTORY:
At the October 1, 2025 City Council meeting, staff provided an overview about Business Improvement Districts (BID) and proposed an outreach process for community education and to assess the level of support for the formation of a BID in Downtown Corona.
Formation of a BID is discussed extensively in the Downtown Revitalization Plan as a potential tool to address a wide array of downtown issues and provide another mechanism for supporting existing downtown businesses.
Over the last few months, Economic Development staff have made extensive efforts to connect with business owners and property owners in the Downtown area to discuss potential creation of a BID to support current revitalization efforts. Staff worked with Spicer Consulting to develop a boundary, framework, and estimated budgets to help educate and inform those within the proposed BID area.
Staff held a Community Meeting on March 10 to provide background information about the purpose and formation process of BIDs and gather initial feedback. Invitations were mailed out, as well as hand delivered, which successfully brought together approximately 100 participants. Following the first meeting, staff mailed out additional information packets and a survey QR code to get a pulse on needs and interest. In addition, staff held one-on-one stakeholder meetings with major property owners and businesses within the proposed boundary.
Following the initial meeting, staff held a follow up BID Expo on April 28 to further engage the community. Participants could learn more about the process from City staff as well as from Spicer Consulting. They were also able to get an estimate of their annual cost based on their address. A representative from the Downtown Riverside BID was present to offer a firsthand account of how that BID functions. Invitations were mailed out to both business owners and property owners, and approximately 25 property and business owners attended. Feedback was actively gathered from meetings, emails, surveys, and one-oneconversations.
ANALYSIS:
The feedback from those actively engaged in the BID process during community meetings, one-on-one conversations, and surveys show little to no interest in forming a BID at this time. While there were a handful of businesses that could see the potential benefit, the majority of respondents indicated that they do not want to participate in, and fund, a BID. In one-on-one consultations with Northgate and Southwest Healthcare - CRMC, each indicated that they were not in favor of the BID at this time. The general lack of support centered on a few key points:
Some do not believe their business could survive the additional costs, Some commented that the City baseline services are sufficient, s Some mentioned that their business types have no need for collaborative marketing and event efforts to increase foot traffic, and Some questioned the management structure and on-going city participation.
Based on this feedback, staff have concluded that moving forward to a vote on the formation would result in a majority ‘no’ vote and thus not be a prudent use of public funds.
Based on the feedback received to date, staff recommend to discontinue the BID formation process.
FINANCIAL IMPACT:
Suspending BID formation activities will not incur additional costs to the City.
ENVIRONMENTAL ANALYSIS:
This action is exempt pursuant to section 15061 (b)(3) for the Guidelines for the California Environmental Quality Act (CEQA), which states that a project is exempt from CEQA if covered by the commonsense exemption that CEQA applies to projects that have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. This action asks Council to receive and file a report on the Downtown Revitalization’s BID formation outreach. There is no possibility that approving the recommended action will have a significant effect on the environment. Therefore, no environmental analysis is required.
PREPARED BY: ASHLEY ZARAGOZA, ECONOMIC DEVELOPMENT MANAGER REVIEWED BY: JOEL BELDING, ECONOMIC DEVELOPMENT DIRECTOR REVIEWED BY: JUSTIN TUCKER, ASSISTANT CITY MANAGER