Story Road Business Improvement District
Item 8.1
February 3, 2026
Jen Baker
Blage Zelalich
Victor Farlie
Sal Alvarez
Director, City Manager’s Office of Economic Development and Cultural Affairs Deputy Director, City Manager’s Office of Economic Development and Cultural Affairs Assistant to the City Manager, City Manager’s Office of Economic Development and Cultural Affairs Senior Executive Analyst,City Manager’sOffice of Economic Development and CulturalAffairs BIDs are formed pursuant to the California Parking and Business Improvement Area Law of 1989.
BID law allows for the creation of special benefit assessment districts to raise funds within a specific geographic area.
BIDs allow business owners to organize their efforts and raise funds exclusively for the benefit of the district.
Business owners within the assessment district boundaries fund the district, and 99% of funds are used to provide services desired by and benefitting businesses within the district.
City Council renews the BID annually.
01 BUSINESS IMPROVEMENT DISTRICT (BID)
ABOUT THE DISTRICT
Major gateway connecting downtown
San José to Little Saigon and the
greater Story Road community.
Features landmark commercial
properties such as Vietnam Town and
Grand Century Mall.
400+ businesses operating within this
specific corridor.
Center for diverse small businesses.
Larger businesses include Walmart,
Public Storage, and an Amazon
Distribution Center.
02 03 ASSESSMENT RATES AND REVENUE
In Year 1, the annual forecasted income is $129,185.
Assessment
Category
Annual
Assessment Rate
Number of
Businesses
Total Assessment
Revenue
Buildings less than
25,000 sq. ft.
$350 416 $145,600
Buildings more than
25,000 sq. ft.
Additional $350 for
every 25,000 sq. ft.
18 $20,650
04 SERVICE PLAN AND BUDGET
Service Budget
Safety and Beautification – 40%: Improved corridor cleanliness, safety, and aesthetics, making Story Road more attractive to residents, customers and investors.
$51,674
Marketing and Activation – 40%: Activities designed to increase foot traffic, highlight local businesses, and promote the corridor as a destination.
$51,674
Administration and Contingency – 20%: Professional services to support district operations to ensure transparency, effective management, and long-term sustainability of the district. This includes a 1% administrative fee to The City.
$25,837
Total Expenses $129,185
05 DISTRICT FORMATION TIMELINE
Action Date
First Council Meeting
• Resolution of Intention to Establish a BID
February 3, 2026
Publication and Mailing of Notice to Assessment Payers February 7, 2026 Second Council Meeting
• Public Meeting to set the Public Hearing date
February 24, 2026
Third Council Meeting
• Public Hearing
April 7, 2026
Fourth Council Meeting
• Second Reading of the Ordinance
April 21, 2026
Ordinance becomes law (30 days after adoption) May 22, 2026 Assessment begins July 1, 2026