TO: HONORABLE MAYOR
AND CITY COUNCIL
FROM: Jen Baker
SUBJECT: See Below DATE: December 17, 2025
Approved
Date:
12/17/25
COUNCIL DISTRICT: 6
SUBJECT: Establishment of The Alameda Business Improvement District
RECOMMENDATION
Accept the report and receive public comment on the establishment of The Alameda Business Improvement District.
SUMMARY AND OUTCOME
The City Council may incorporate any input from the public meeting on January 13, 2026, into its evaluation of the merits of creating The Alameda Business Improvement District (TABID). The City Council will take formal action on the proposal to form TABID on February 3, 2026.
BACKGROUND
Business Improvement Districts (BIDs) are formed pursuant to the California Parking and Business Improvement Area Law of 1989, Streets and Highways Code §36500 et seq. (BID Law) to allow businesses or property owners to assess themselves to support joint efforts such as physical maintenance, marketing, and promotion. Under BID Law, the City Council may establish a BID by adopting a resolution of intention, conducting a public meeting and a public hearing, fulfilling certain noticing requirements, and adopting an ordinance to establish the BID. The BID must be renewed annually by action of the City Council. BID Law allows for an Advisory Board to be appointed by the City Council to advise the City Council on all issues related to the improvement district.
At the City Council meeting on December 16, 2025, the City Council appointed The Alameda Business Association Board as the Advisory Board for the establishment of COUNCIL AGENDA: 1/13/26
FILE: 26-030
ITEM: 8.1
HONORABLE MAYOR AND CITY COUNCIL
December 17, 2025
Subject: Establishment of The Alameda Business Improvement District
TABID. At the same meeting, the City Council adopted resolutions indicating its intention to establish a BID and levy an assessment for FY 2025-2026.
ANALYSIS
BID Law allows for the creation of special benefit assessment districts to raise funds within a specific geographic area. Assessment districts allow business owners to organize their efforts and raise funds exclusively for the benefit of the district. Business owners within assessment district boundaries fund the district, and those funds are used to provide services desired by and benefit businesses within the district. At a neighborhood level, the example of mature BIDs in San José, such as those for Downtown and Japantown, highlights the positive long-term impact on residents, businesses, and the City.
Noticing Status
Notifications have been sent to all businesses within the proposed assessment district boundary, informing them that the City is considering the establishment of TABID. The letter also states that public comments regarding the formation of the district will be heard at a public meeting on January 13, 2026, and a public hearing on February 3, 2026, and that written objections to the formation of TABID may be submitted at or prior to the public hearing. If there is a majority protest, no further proceeding shall be taken for a period of one year to establish a BID.
The Clerk’s Office has published the required notices.
Remaining Steps in the Creation of a New BID
1. Holding Public Hearing. At the public hearing scheduled for February 3, 2026, City Council will take testimony on the establishment of TABID, the boundaries of the district, the annual budget of the district, and the types of activities proposed to be funded from the assessment. If the businesses that would be responsible for paying a majority of TABID assessment protest, the City Council cannot initially establish TABID.
2. Ordinance Reading: The first and second readings of an ordinance establishing TABID and the levy of an assessment are the final steps in creating the district.
Ordinances are effective 30 days after the second reading.
The following is a proposed timeline for the creation of TABID and initial funding of the district’s activities:
Public Meeting January 13, 2026
Public Hearing February 3, 2026
Ordinance First Reading February 3, 2026
HONORABLE MAYOR AND CITY COUNCIL
December 17, 2025
Subject: Establishment of The Alameda Business Improvement District
Resolution to Approve Budget and
Levy Assessment for FY 2025-2026 February 3, 2026
City of San José Agreement with The Alameda
Business Association February 3, 2026
Ordinance Second Reading February 24, 2026
Ordinance Becomes Law March 27, 2026
Assessment Begins* April 26, 2026
* Assessments will be collected on a rolling basis as part of the annual business tax account renewal for each business in the district and remitted to TABID.
EVALUATION AND FOLLOW-UP
The Advisory Board will report annually to the City Council to secure the renewal of TABID. The first report is expected in June 2026 and will include a budget report for the FY 2026-2027.
COORDINATION
This memorandum has been coordinated with the City Attorney’s Office, City Clerk’s Office, City Manager’s Budget Office, Finance Department, and the Planning, Building and Code Enforcement Department. This memorandum was also coordinated with The Alameda Business Association Board.
PUBLIC OUTREACH
The Alameda Business Association Board held monthly member meetings from February to October 2025 to discuss the benefits of forming a BID, and a survey was launched in August 2025. Information regarding the formation of the district and the services it would provide was mailed to all prospective BID payors on October 14, 2025, for the October 22, 2025, Town Hall meeting. Additionally, this memorandum will be posted on the City’s Council Agenda website for the January 13, 2026, City Council meeting.
COMMISSION RECOMMENDATION AND INPUT
No commission recommendation or input is associated with this action.
HONORABLE MAYOR AND CITY COUNCIL
December 17, 2025
Subject: Establishment of The Alameda Business Improvement District
CEQA
Not a Project, File No. PP17-009, Staff Reports, Assessments, Annual Reports, and Informational Memos that involve no approvals of any City action.
PUBLIC SUBSIDY REPORTING
This item does not include a public subsidy as defined in section 53083 or 53083.1 of the California Government Code or the City’s Open Government Resolution.
JEN BAKER
Director, City Manager’s Office of
Economic Development and Cultural
Affairs
The principal author of this memorandum is Sal Alvarez, Senior Executive Analyst, City Manager’s Office of Economic Development and Cultural Affairs, and Victor Farlie, Assistant to the City Manager, City Manager’s Office of Economic Development and Cultural Affairs.
For questions, please contact [email protected] or (408) 793-6943.