Business & Tech
Burlingame's Downtown Brouhaha
Business Improvement District is a hot issue at city hall and on the streets.
The struggles of running a business in downtown Burlingame during recessionary times are being underscored by growing debate on street corners and at city hall over formation of a Business Improvement District.
If the special assessment district is approved, each business would be required to pay an annual fee for funding joint projects such as marketing, maintenance and events.
Burlingame's debate has polarized the business community: One side saying tough times dictate banding together and thinking about local commerce in new and different ways; the other believing a challenging economy gives them no choice but to concentrate on day-to-day operations without distraction.
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Karen Francis, owner of Plum Studios Salon on Lorton Avenue, thinks a new approach is necessary and has devoted dozens of volunteer hours to making the Business Improvement District (BID) a reality.
"I want the community to come together for many of the obvious reasons, like marketing, event planning and tackling common concerns," she said, "but I also want to create a network of people who can help drive traffic to each one of our businesses."
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Opponents argue that fee assessments may be too high, or that their business location within the district will receive little, if any, benefit from the accumulated levies.
"To have a group of businesses voice common concerns and develop common goals is a good thing," conceded Gary Doss, owner of Burlingame's Museum of Pez Memorobilia. "I just don't think the current fee schedule, in this economy, is a good idea. I would support and work for a volunteer effort."
Conceived more than 20 years ago as a tool for revitalizing commercial neighborhoods, BIDs are public/private partnerships designed to provide communal services and to engage in economic development activities.
California has two separate laws authorizing formation of BIDs -- the Parking and Business Improvement Area Law passed in 1989 and the Property and Business Improvement District Law of 1994, both permitting annual assessments for parking facilities, parks, fountains, trash receptacles, street lighting and decorations, music in public places and promotion of tourism. The 1994 laws expanded a BID's powers, permitting financing street improvements, rehabilitating or removing existing structures and providing security facilities. However, neither law permits BIDs to unilaterally issue bonds or other forms of debt.
Some businessmen have taken their complaints to city hall, voicing opposition at recent city council meetings.
One of those, Scheherezade Sharabianlou, owner of PIP Printing on California Drive, says the city should not expect its merchants to supplement what taxes should already be paying for.
"If they want to plant flowers or fix the sidewalks, they should pay for it -- or let the merchants plant their own flowers in front of their businesses," he said.
Others, however, like Kathleen Goss, general manager of Trina Turk, a women's boutique on Burlingame Avenue, believe the BID will go beyond what tax dollars can do.
"All the businesses located downtown are here for a reason, and in my opinion, the reason is that it's a pleasant environment," she said. "That environment needs to be nurtured through activities that maintain and improve the area in the short term and the long term."
Goss sees the BID's intent as not only bringing the community together, but also raising enough funding so those merchants trying to solving problems like advertising or area maintenance will have a budget to provide those services.
Final public testimony will be heard by the city council at its meeting Sept. 20, along with a report from city attorney Gus Guinan on the number of valid protest forms that have been submitted. Each business assessed by the BID is entitled to file a protest which is weighted based on the establishment's location within the district and its square footage. If more than 51% of the protest forms are valid, the BID will not be approved.