Merchants Reject New Assessments : Business: By a slight majority, business people vote not to tax themselves to achieve a united front.

A slight majority of business people in Sierra Madre rejected forming a controversial Business Improvement District during a hearing that filled the City Council chambers Tuesday.

About 50 people wearing yellow ribbons attended the City Council meeting to protest formation of the district. Written votes submitted earlier by business owners on the proposal were tallied by computer and announced. The votes were weighted according to the size of the business, and 51.256% of the total dollars that would have been assessed were against the district.

Business owners against the assessment cited high costs in relation to possible benefits. Supporters, including the Sierra Madre Chamber of Commerce, contended that an improvement district could accomplish more than businesses working alone.

“I thought the BID was a good way to draw a small community together and let businesses have a say,” said Joan Sheets, owner of the Little Stuga gift shop.

But “when you are forced to join something, it creates resentment,” said Bill Sullivan, owner of the Bottle Shop liquor store. “It was a bad business decision with a lopsided budget.”

The Business Improvement District would have assessed businesses from $250 to $500 a year, depending on their size, to continue Sierra Madre’s 3-year-old downtown Main Street Program, which promotes economic and image development. Ron Hutson, director of the program, said its future was uncertain.