DATE:
September 8, 2026
CATEGORY:
Public Hearing
DEPT.:
Community Development
TITLE: Public Hearing on Downtown Business
Improvement Area No. 2
RECOMMENDATION
1. Approve the Annual Report.
2. Adopt a Resolution of the City Council of the City of Mountain View Approving the Annual Report of the Downtown Mountain View Business Improvement Area No. 2 and Declaring Its Intention to Levy Assessments for 2027, to be read in title only, further reading waived, and set a public hearing date of October 13, 2026 (Attachment 1 to the Council report).
BACKGROUND
A business improvement area (BIA) is a common way to generate funds to promote a downtown area. BIAs require each business in the area to pay a BIA fee in addition to the business license tax. The amount of the BIA fee that each business pays varies by the type, size, and/or location of the business. State law requires that BIA fees be used for advertising, promotions, special events, or other activities that promote the designate d business area. The fees can either be used by the jurisdiction or allocated to an appropriate organization, such as a business association or chamber of commerce . BIAs are usually formed by a business association or chamber of commerce, given the interest of such organizations to support a business district.
Mountain View has two BIAs (Attachment 2), both originally created by the downtown businesses, historically organized as the Central Business Association and , later, the Downtown Business Association (DBA), with revenues historically allocated to them. In May 2021, the City Council designated the Mountain View Chamber of Commerce (Chamber) to provide support to the downtown businesses and to receive and manage both BIAs and their revenues. The 1983 Business Improvement Area, BIA No. 1, includes the entire length of Castro Street ( from West Evelyn Avenue to El Camino Real) and some side streets. BIA No. 1 fees are based upon the type of business , specifically restaurant, retail , and profession al (i.e. , office). In 1991, the DBA recommended, and the Council approved, the formation of a second BIA when the DBA identified the need to increase BIA revenues . BIA No. 2 includes a smaller area in the 100, 200, and 300 blocks of Castro Street and is geographically contained entirely within BIA No. 1. The rationale
Public Hearing on Downtown Business Improvement Area No. 2 September 8, 2026
for the boundaries of BIA No. 2 is that this area receives the most benefit from the resources provided by the BIA. BIA No. 2 fees are based upon the type of business (restaurant, retail, and professional) and size of business in square feet.
Both BIAs serve the purpose of supporting downtown businesses but wer e enacted under different state-enabling legislation. BIA No. 1 was created under the Parking and Business Improvement Area Law of 1979. The 1979 BIA law was replaced by a 1989 law under which BIA No. 2 was created. Businesses located within both BIAs pay both fees.
ANALYSIS
Under state law, both BIAs require an annual public meeting and public hearing to levy assessments and authorize expenditure of funds. The Chamber estimates the two BIAs will generate $60,000 in assessment revenues ($ 45,000 for BIA No. 1 and $15,000 for BIA No. 2) in 2027. The Chamber does not propose an increase or change in this year’s BIA assessment , including the assessment rate or methodology. The cost of operating the DBA , however, continues to outpace available revenues, limiting the organization’s capacity to sustain current marketing, events, and day -to-day functions that support the downtown district. At the same time, the City and DBA regularly hear from the business community about a desire for expanded events and activations, increased safety patrols and programming, and enhanced maintenance efforts. In recognition of both the funding constraints facing the DBA and the City’s existing downtown services, staff is exploring potential funding mechanisms to bring additional resources that will enhance downtown vibrancy and better meet community expectations.
For the public meeting on September 8, 2026, Council is being asked to review the proposed programming the BIAs should fund, receive any comments or other input from members of the public, preliminarily approve the annual report submitted by the Chamber (Attachment 3), and set October 13, 2026 as the date of the public hearing. The Chamber report identifies businesses within the BIAs, their proposed assessments, and recommendations for how the Chamber plans to use the revenue for downtown promotions and activities for 2027 (see below for a summary).
Council may also identify additional information it would like available.
At the public hearing on October 13, 2026, Council will be asked to review and give final approval to the Chamber report, levy the assessments, and allocate the 2027 funds from both BIAs to the Chamber. After Council takes final action, BIA fee amounts will be included with the business license renewal notices and will be sent in January to the businesses located within the BIA boundaries.
The Chamber’s primary role is to provide staffing support to the DBA. The Chamber will continue to advise the DBA on the BIAs, including how to utilize BIA funds for marketing and promotional Public Hearing on Downtown Business Improvement Area No. 2 September 8, 2026
events downtown, and expand its business advocacy role in supporting the downtown area.
Some highlights of the 2026 accomplishments include:
• Meet and Greet on Castro Street: Held a highly successful community-building event at the Monte Carlo Night Club with 150 attendees comprised of business owners, City staff/elected officials, and the public. The event featured short introductory videos for 20 local businesses and a moderated panel with four featured business owners.
• Oktoberfest Expansion: Moved the signature festival to a larger footprint on the 500 block of Castro Street, drawing over 12,000 attendees (a 16% increase over the previous year) and driving significant foot traffic to downtown merchants.
• Holiday Blood Drive: Partnered with the Stanford Blood Center to host a downtown blood drive, successfully filling nearly all available walk-in and appointment slots.
• Super Bowl Promotions : Partnered with the City to capture regional tourism through soccer- and football-themed watch parties, special menus, promotional giveaways, and an interactive online dining and lodging guide.
• New Business Activations : Supported the ribbon -cutting and grand opening of Don’t Eat Me!, a highly collaborative pop-up retail space shared by four micro-businesses.
• Taste of Mountain View (June) : Drew 500 attendees and featured 17 local merchants, introducing several new businesses to the public.
• “Summer of Soccer” World Cup Activations : Partnered with the City to capture regional tourism through soccer-themed watch parties, special menus, promotional giveaways, and an interactive online dining and business deal guide.
• Social Media and Print Marketing: Maintained a strong social media presence (minimum of five posts per week via a dedicated contractor) and distributed 5,000 hard copies of the updated Downtown Shopping Map and Community Guide to 75+ strategic locations.
• Small Business Advocacy : Led crucial advocacy discussions with the California Attorney General’s Office regarding the impact of tariffs on local storefronts and participating in regional roundtables to support small businesses.
Public Hearing on Downtown Business Improvement Area No. 2 September 8, 2026
For 2027, the Chamber has developed a work plan that is focused on marketing and promotions, small business advocacy, growing the advisory group of downtown businesses, and providing direct assistance to businesses:
• Meet and Greet: Revise and launch a second iteration of the “ Meet and Greet on Castro Street” to highlight additional businesses and focus on targeted problem-solving.
• Web and Digital Resource Relaunch : Completely redesign and integrate the DBA’s web assets into high-traffic regional platforms, such as ilovemv.org and chambermv.org.
• Vibrancy through Public Art: Develop programs to highlight existing public art installations and bring new art activations to downtown streets to increase foot traffic.
• Proactive Americans with Disabilities Act (ADA) Compliance and Certified Access Specialist (CASp) Inspection Program: Partner with Representative Sam Liccardo’s office to support national legislation establishing “fix-it” periods for federal ADA lawsuits. In parallel, launch a proactive, local ADA/CASp preventative inspection program in collaboration with the City.
• Long-Term Funding Strategy: Analyze the long-term value proposition of the DBA and, in partnership with the City, explore sustainable funding mechanisms for downtown promotion, including evaluating a renewed BIA or transitioning to a Property -Based Improvement District (PBID).
• Neighborhood and Community Alliances: Attend local neighborhood association meetings and invite residents to monthly DBA meetings to coordinate mutually beneficial community events and address neighborhood concerns.
FISCAL IMPACT
The Chamber projects total assessment revenues of $60,000, consisting of $45,000 from BIA No. 1 and $ 15,000 from BIA No. 2 . The assessment revenues are allocated to the Chamber to support downtown promotions, business advocacy, and event planning. The assessments for both areas are collected by the City as part of the business license process and will be due with the January 2027 business license renewals.
LEVINE ACT
California Government Code Section 84308 (also known as the Levine Act) prohibits city officials from participating in any proceeding involving a “license, permit, or other entitlement for use” if the official has received a campaign contribution exceeding $500 from a party, participant, or agent of a party or participant within the last 12 months. The Levine Act is intended to prevent financial influence on decisions that affect specific, identifiable persons or participants. For more information see the Fair Political Practices Commission website: www.fppc.ca.gov/learn/pay-to- play-limits-and-prohibitions.html.
Public Hearing on Downtown Business Improvement Area No. 2 September 8, 2026
Please see below for information about whether the recommended action for this agenda item is subject to or exempt from the Levine Act.
SUBJECT TO THE LEVINE ACT
☒ Contract or franchise agreement
ALTERNATIVES
1. Do not preliminarily approve the Chamber report, and do not set October 13, 2026, as the date of the public hearing. If the report from the Chamber is not preliminarily approved and the resolutions are not adopted, fees for BIA No. 2 would not be levied as part of the annual renewal process that the Finance and Administrative Services Department begins in November for the business license tax, and there would be no funds for 2027 from BIA No. 2 to be allocated to the Chamber. The Chamber would need to seek alternative funding or reduce its programming.
2. Provide other direction.
PUBLIC NOTICING
The renewal of the annual BIAs was presented at the Downtown Committee meeting on September 1, 2026. The Council meeting agenda and Council report were posted on the City’s website and announced on Channel 26 cable television. Notice of the public meeting and hearing was mailed to all businesses in the BIA No. 2 area and published in the San Jose Post-Record.
Prepared by:
Toni Gomez
Economic Vitality Strategist
Amanda Rotella
Economic Vitality Manager
Approved by:
Christian Murdock
Community Development Director
Kimbra McCarthy
City Manager
CDD/AR/TG-09-08-26CR-1
Attachments: 1. Resolution
2. Business Improvement Area Map
3. Chamber Annual Report 2026