Downtown Huntington Beach group delays financial review

A proposed review of the Huntington Beach Downtown Business Improvement District’s financial practices has been temporarily tabled.

The BID’s board of directors agreed Thursday to try to renegotiate the $15,000 cost of the review.

The downtown group is considering whether to hire International Downtown Assn., or IDA, which provides reviews and recommendations to business improvement districts worldwide.

A Business Improvement District is a public-private partnership that aims to revitalize a commercial neighborhood. Huntington Beach has three, including the Auto Dealers BID and the Hotel/Motel BID.

The City Council requested that the BID hire the IDA to conduct an analysis of operations and provide advice on improvements following a separate financial review from the city Finance Commission.

The commission review was convened to address potentially improper use of funds or assets, but the body found no evidence to back that up.

Steve Daniel, BID president, said he wants to move forward with the IDA review so that the BID can figure out and correct any shortcomings.

“We need to get our business practices in line,” Daniel said. “This is a good thing.”

Daniel also proposed the Finance Commission review to the council.

Kids paraded in their costumes during the Huntington Beach Halloween Fest held every year by the Huntington Beach Downtown Business Improvement District.

(Susan Hoffman / Daily Pilot)

Susie Smith, a new member of the BID board, said the BID shouldn’t have to carry all of the costs of the new assessment and requested that the city provide funds.

Smith launched a petition in February with about 100 signatures from downtown business owners calling for the removal of the then nine-current members of the BID board. She replaced member Scott Blakeslee in March because he couldn’t regularly attend meetings.

Kellee Fritzal, the city’s deputy director of economic development, said the city is unwilling to fund the assessment.

Matt Peterson said he isn’t against the review but the group should try to renegotiate because the cost is high without knowing “what the net result of the study would be.”

Members Bob Bolen and Dick Thorpe agreed.

Daniel said he will get in touch with the IDA over the next few days to try and reduce the assessment price and the board would reconvene for a vote in the coming weeks.

Daniel said he wants to go forward with the review, even if the IDA doesn’t lower their cost.

benjamin.brazil@latimes.com

Twitter:@benbrazilpilot