DATE: October 13, 2026
CATEGORY: Public Hearing
DEPT.: Community Development
TITLE: Downtown Business Improvement Area
No. 1 and Allocation of 2027 Business
Improvement Area No. 1 Revenues
RECOMMENDATION
1. Adopt a Resolution of the City Council of the City of Mountain View Confirming the Annual Report of the Downtown Mountain View Business Improvement Area No. 1 and Levying the Annual Benefit Assessments for Calendar Year 2027, to be read in title only, further reading waived (Attachment 1 to the Council report).
2. Authorize the City Manager or designee to allocate the 2027 revenues from Business Improvement Area No. 1 to the Mountain View Chamber of Commerce to fund a disbursement agreement with the Mountain View Chamber of Commerce to accomplish the purposes of the area.
BACKGROUND
Mountain View has two Business Improvement Areas (BIAs) originally created by the downtown businesses and Downtown Business Association (DBA). 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 professional (i.e., office). The 1991 Business Improvement Area, BIA No. 2, includes the 100, 200, and 300 blocks of Castro Street, and the fees are based upon type of business (restaurant, retail, or professional) and size of business (square feet). Businesses within both BIAs pay both fees, and the total BIA revenues are then allocated to the Mountain View Chamber of Commerce (Chamber). The Chamber utilizes BIA revenues for promoting the downtown, coordinating special events, and providing business advocacy.
ANALYSIS
State law requires the annual renewal of both BIAs go through a public meeting as well as a public hearing to levy the assessments and authorize the allocation of revenues. At the first public meeting on September 8, 2026 (Attachment 2), the City Council unanimously approved (Vice Mayor Clark and Councilmember Hicks abstained) the preliminary approval of the assessments Downtown Business Improvement Area No. 1 and
Allocation of 2027 Business Improvement Area No. 1 Revenues October 13, 2026
and set the public hearing. At this public hearing, the Council will be asked to levy the BIA assessment and allocate the 2027 revenues from BIA No. 1 to the Chamber to fund assessment activities in 2027. The Chamber would utilize allocated funds for 2027 pursuant to the disbursement agreement terms. After the Council takes final action, BIA assessment amounts will be included with business license renewal notices and sent to businesses located within the BIA boundaries in November.
FISCAL IMPACT
All 300-plus downtown businesses are included in BIA No. 1 and are assessed annually at $50 for professional businesses, $150 for retail businesses, and $200 for restaurants. The Chamber projects total 2027 assessment revenues of approximately $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.
There is no proposed increase or other change to the assessment rates or methodology for 2027.
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-toplay-limits-and-prohibitions.html.
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
Downtown Business Improvement Area No. 1 and
Allocation of 2027 Business Improvement Area No. 1 Revenues October 13, 2026
ALTERNATIVES
1. Do not adopt the resolution levying the BIA assessment. If the resolution is not adopted, the assessment would not be collected, and there would be no allocation of the BIA No. 1 2027 revenues to the Chamber. The Chamber would need to seek new 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. 1 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-10-13-26CR
Attachments: 1. Resolution of Intention to Levy Assessments for BIA No. 1
2. September 8, 2026 Council Report