Frequently Asked Questions

What is a CBID?

A CBID is a district which is formed by the property owners under the provisions of Proposition 218 and Chapter 14.31 of Title 14 of the Municipal Code of the City of San Jose, which incorporates the Property and Business Improvement District Law of 1994 of the California Streets and Highways Code. A charge is levied on and collected from property owners in the District for the purpose of funding and providing services beyond what the City traditionally provides such as sidewalk cleanliness, beautification, parking, district identity, streetscape improvements, marketing and promotions.

Why was the Willow Glen CBID formed?

In the summer of 2007 the Willow Glen Business Association (WGBA) board looked into the possibility of forming a Community Benefit District (CBID). This model was being implemented in many Bay Area cities (eleven CBIDs in San Francisco alone) with uniformly positive outcomes to the business districts. The WGBA also recognized that our business district was surrounded by incredible residential growth due to major transit-oriented residential projects just blocks from our district (KB Homes, Sobrato, Tamien Towers, and Ohlone are some of the larger approved projects with more projected to come) thus increasing our customer base by thousands. Based on current competition, the WGBA felt we needed to capture this new customer base by improving the desirability of our district as a destination to eat, shop, work and play. The CBID provides increased revenue that is also more stable and consistent since it is added to the property taxes paid by the property owners rather than an assessment on a business license. Based on feedback from the businesses, it was clear that there was not support to continue assessments for both a CBID and Business Improvement District (BID). As a result, the WGBA took the position that if a CBID was formed, the BID would be disestablished.

Since the approval of the CBID, the City of San Jose has made dramatic budget cuts. As a result of these cuts, such as the removal of landscaping and elimination of tree services, we are witnessing effects that are impacting business districts citywide and there will be more to come. It is quite fortuitous that the CBID was formed when it was as it now assures that we can make strides toward keeping our Willow Glen business district the special area that it is.

How was the CBID formed?

In November 2008, a CBID Steering Committee consisting of property and business owners and community members was formed. The CommitteeÕs purpose was to assess the support by property and business owners for the formation of the CBID. After many one-on-one and community meetings, the Steering Committee concluded that there was enough support to move to the next step and a draft CBID Management Plan (Plan) was developed by the Steering Committee. The draft Plan was sent to the City for review and approval. Subsequently, the City approved the draft Plan and that, in turn, resulted in a petition mailed to property owners for their endorsement of the Plan. Enough property owners endorsed the Plan and the City Council approved and mailed ballots to all property owners for their vote on whether or not the CBID should be formed. Ballots were returned and processed at a public hearing at the December 16, 2008 City Council meeting and tabulation of the ballots resulted in the approval of the CBID and the final CBID Management Plan.

Why were only property owners allowed to vote in the formation of the CBID?

Legally, only those which are levied the charge are allowed to vote. This was true when the BID was formed Ð only those with business licenses were allowed to vote for the formation of the BID.

The CBID is now formed, what happens to the BID?

On December 21, 2009, the City mailed a notification to all business owners that the Willow Glen BID was to be disestablished (eliminating the BID fees) due to the implementation of the CBID. A public hearing was set for January 12, 2010. The disestablishment of the BID was unanimously approved at this meeting. This means that no BID fees will be collected after January 1, 2010 and the BID will be dissolved as of July 1, 2010. BID fees collected for this period are supporting current programs and will be spent prior to the July 1, 2010 dissolution. A BID can always be formed in the future if the majority of businesses support the formation.

How is the CBID managed?

The City has entered into a contract with the WGBA (which has a board comprised of Willow Glen business and property owners and community members) for the management of the CBID. The CBID is one of many funding sources which WGBA manages. Even though it is the largest source, the CBID is not that different than the many grants that the WGBA has been awarded and has managed. The WGBA Board of Directors has the responsibility of developing a corporate budget that includes the CBID and other revenues and (as with all grants and contracts) the Board has oversight to ensure the WGBA is in compliance with the CBID Plan, grants and contract requirements. Annually, the Board of Directors reviews its strategic plan and goals and priorities are established.

The approved CBID Management Plan has a first year budget that has been incorporated into the current Board-approved corporate budget. The first year CBID budget was developed before the economic downturn. As a result, non-CBID items, such as branding, are impacted this fiscal year due to loss of non-CBID revenues such as sponsorships and festival sales. This will change as the economy improves. The CBID budget can also be adjusted in subsequent years in response to priorities of the CBID stakeholders.

When was the CBID implemented?

WGBA decided to delay the implementation of the CBID from January 2009 to January 2010 owing to the then-current economic conditions. Effective January 4, 2010, the WGBA contracted with San Jose General Building Maintenance to perform the sidewalk maintenance services. Upon receipt of CBID revenues (projected for April 2010) the WGBA will also contract for landscaping and tree trimming services.

For additional information, including first year budget, CBID district map, services, assessment methodology — visit www.willowglen.org — click on CBID on the menu. You can also call our office (408)298-2100 or e-mail norma@willowglen.org with additional questions.