HUNTINGTON BEACH : Council Favors Business Tax District

Despite speeches by three business owners against the move, the City Council on Monday night moved a step closer to creating a special tax district to boost the downtown area.

The council voted 7 to 0 to hold a public hearing March 2 on whether to create a “business improvement district” for downtown. Unless more than 50% of the business owners in the area protest, the city will create the new district and start collecting a tax from the downtown merchants.

The assessment would vary according to the size and type of business, but the average annual levy would be about $200 to $300 per business, officials said. The money would go to a proposed nonprofit group to be called the Downtown Business Assn. That organization would use the funds for monthly promotions, including a summer sidewalk sale, a fall harvest festival, street festivals and concerts.

“The level of support (from downtown businesses) we’ve received is very positive,” said Suzanne Beukema, a cafe owner. She is on a committee working to create the business improvement district and spoke to the council about the idea.

But three other downtown business owners spoke against the tax district. One of them, restaurant-pub owner Doug Langevin, said it would be an unfair burden for small businesses.

“You’re subsidizing the (proposed) district on the backs of small businesses,” Langevin said.

Another opponent, surfboard-store businessman Guy Guzzardo, told the council, “We don’t need any more burdens on business. This (proposal) isn’t what it seems to be.”

In their discussion before the vote, council members said most of the business people they talked to had urged formation of the improvement district.

Beukema said the Downtown Business Assn. would “give the downtown merchants a voice to speak for us and to lobby at City Hall for things we need.” The new tax district would finance the activities of the association as well as business promotions.

A 1989 state law allows cities to form such business improvement districts. Huntington Beach officials said cities that have adopted new tax districts to help their downtowns include Santa Ana, San Diego, Long Beach, Pasadena, Glendale and Lake Elsinore.