San Jose business corridor forms district to fund improvements

One business corridor near downtown San Jose wants to attract more people with financial support from property owners.

A community benefit improvement district (CBID) has been formed along The Alameda to enhance the area’s safety, provide cleaner streets and attract more businesses. Property owners along The Alameda, from Schiele to Stockton avenues, will invest more than $327,000 annually for security along the corridor and projects to beautify the area. The Alameda Business Association will manage the funds and determine how to use the money over a 15-year period. Business owners have the option to renew the agreement when it expires. The City Council approved the district earlier this year, and it goes into effect in January.

“This (district), like others around the city, will provide stable, dedicated funding for enhanced services, clean and safe streets and beautification beyond what the city can provide with our normal level of funding,” Mayor Matt Mahan said at a recent news conference outside of Hop & Vine.

There are 454 businesses in The Alameda corridor, and the CBID will cover a portion of them. This marks the third CBID created, after downtown formed one in 2007 and Willow Glen in 2009. The Willow Glen Business Association has been able to create new light post banners, replace street light strings and commission murals along Lincoln Avenue with its funds.

Community benefit improvement districts are quasi-public entities that collect money from property owners to fund special services for designated areas. Payment amounts are usually set based on each property’s size and collected for both residential and commercial properties.

District 6 Councilmember Michael Mulcahy, who represents The Alameda, said money collected from a CBID is more reliable than other parts of the city that formed business improvement districts.

“A (business improvement district) is kind of an unreliable resource because it’s paid on somebody’s business license, and with all due respect to the city, they’re not very good about collecting those fees (and) the budget kind of goes up and down,” Mulcahy told San José Spotlight. “With a CBID, it goes on an owner’s property tax bill, and we all know that most people don’t typically skip their property tax bill.”

Last October, the Tully Road Eastridge Business Improvement District formed to coordinate events to draw more foot traffic. Other business improvement districts include the Monterey Road Business Improvement District and Japantown Business Improvement District.

San Jose aims to have four additional business improvement districts come online in the next nine months, Jen Baker, director of the Office of Economic Development and Cultural Affairs, said at the news conference. 
Victor Farlie, assistant to the city manager, said with the formation of the CBID, The Alameda has a chance to become the most popular business corridor in the city.

“This is a great opportunity for The Alameda to be the next Willow Glen, the next Japantown, and really overtake them,” Farlie told San José Spotlight.

Contact Joyce Chu at [email protected] or @joyce_speaks on X.