HUNTINGTON BEACH : City Drops Tax District Proposal

After a heated struggle, Huntington Beach has dropped an effort to establish a new tax district for the downtown area.

A vote of 174 business owners in the proposed tax district showed 76 in favor and 98 opposed.

The proposed Business Improvement District would have assessed store owners up to $500 a year and used the money to promote downtown shopping. A relatively new state law allows creation of such special-assessment areas, and Huntington Beach would have been an Orange County pioneer if it had established the new district.

But after a majority of business owners petitioned against the concept, the City Council on Monday night withdrew from the proposal.

Deputy City Administrator Barbara Kaiser noted that the idea for forming the district came from some of the downtown merchants. She said some of the store owners approached city government, asking its help in forming an improvement district based on the new state law.

Proponents of the Business Improvement District said it would enable monthly promotional events. Funds from the new district would also have been used for banners, decorations and street celebrations downtown, the proponents said.

But opponents argued that the new district would simply be another layer of government and another burdensome tax. Opponents said there are better ways to form a downtown business association other than using the new state law.

“I am in favor of some type of business improvement district, but not this type,” said Doug Langevin, a downtown property owner.

Suzanne Beukema, owner of a downtown cafe and chairwoman of the drive for the proposed district, said she was saddened by the defeat. “I saw this as a very viable entity to represent us downtown,” she said.

The enabling state law says that a proposed Business Improvement District cannot be established if store owners representing more than 50% of the total dollar value in the area oppose the proposal. Downtown businessmen representing 59% of the total dollar value of the proposed business district petitioned against the idea, Kaiser said.