Ventura Leaders Back Tax on Downtown Merchants Despite Some Opposition

Despite a lack of cooperation from one-third of business owners and vocal hostility from others, Ventura city leaders say they will continue levying a special tax on downtown merchants this year to pay for beautifying and promoting the city’s old commercial center.

A majority of council members say they support continuing the special tax district, even though a solid 30% of downtown business leaders have filed a formal request to dump the program designed to entice customers to return to downtown to eat, shop and otherwise spend their money.

“I think it’s a great opportunity for the downtown merchants to unite together,” Mayor Gregory L. Carson said. “I’m not going to let a few people spoil it for the other businesses.”

In about 10 days, the mayor and City Council will begin a set of two public hearings required to review the support and effectiveness of the special assessment district that was originally proposed and drawn up by downtown business leaders.

About 30% of the 332 businesses in the district filed requests last year to kill the program, but fell short of the 51% needed to end it. Opposition leaders say they are trying to muster a majority, but have not reached that goal yet.

According to city records, 110 of the businesses did not pay any assessment last year. Another 40 businesses only paid half of their assessments. Most of those that did not pay or only paid partially were restaurants and retail shops.

City officials, who have plans to redevelop downtown, praise business owners for helping stimulate the flagging economy in the area, bordered by Ash and Olive streets on the east and west, and by Poli Street and the Pacific Ocean on the north and south.

But opponents say little has been accomplished in the last year, and argue that joining the district should be voluntary.

“It hasn’t increased my business,” said Cliff Linder, who owns Poinsettia Collectibles on Main Street. “We have a right to join any group. This is being forced on us.”

But those business owners who favor the program say it has increased foot traffic and promoted the area.

“We’ve had more sales,” said Valerie Bowman, who manages the American Cancer Society Discovery Shop, a thrift store on Main Street. “I see a lot of tourists, and more people from Ventura discovering downtown, and I think a lot of it’s because of the district.”

Although a significant number of the business owners did not participate, the district’s first year was successful, said Stan Jacobs, president of the Ventura Image Program, the nonprofit organization that spends the tax dollars to lure more shoppers to the area.

“There’s room for improvement, but we have accomplished quite a bit,” Jacobs said.

About $73,000 was assessed last year, and only $48,000 was received, he said. Most of the money was spent on producing a retail shopping guide, launching two advertising campaigns and sponsoring weekend outdoor concerts, he said.

Organizers received numerous complaints from small retailers and restaurateurs about the fees, so assessments for some business owners will be lowered this year, Jacobs said.

“You can’t make it voluntary because those who don’t pay the assessment will benefit as well as those who pay,” he said.

Miriam Mack, the city’s Redevelopment Agency director, said it is likely that the city will take merchants to small claims court this year if they don’t pay.

A courtesy letter will be sent to delinquent business owners in January, and the city may file complaints with small claims court by April, she said.

“It’s not fair to the people who decided to pay, so we do have to collect,” Mack said.

Jacobs said one of his main goals this year will be to woo more business owners into participating.

“We need to educate them in what services we can offer and really emphasize how we can help them,” he said. “Once we do that, I think the noise and protest will go away.”

Some merchants say they willingly pay their assessments even though it’s doubtful that the district will directly benefit them.

“It’s part of my community commitment,” said Tim O’Neil, who owns an educational consulting firm and paid his total $150 assessment last year. “It hasn’t directly increased my business, but my business takes place primarily outside Ventura County. I think it brings the businesses together so we can work toward a favorable business climate.”

Karen Hoh, owner of Karen’s Bakery and Deli on Main Street, said she felt obligated to pay, but wasn’t happy about it.

“I pay it because I have to,” said Hoh, who gave $275 last year. “Business has not increased.”

In its golden years during the 1940s, downtown was a thriving area that drew hundreds of shoppers and moviegoers. It was considered the financial, political and cultural hub of the county until the eastern end of Ventura was developed.

Retailers left downtown in the 1960s when the Buenaventura Mall opened and the legal community also moved when the new County Government Center was built on Victoria Avenue.

City officials have been trying to revive downtown ever since. A redevelopment agency was formed and has renovated historical sites, constructed a beach promenade and train platform, and helped build the Mission Plaza Shopping Center.

A business improvement district was proposed in 1984, and at that time, about 30% of the merchants protested, Mack said. Council members rejected it because they felt that 30% was significant opposition, she said.

“The council isn’t forced to do the assessment,” Mack said.

Councilwoman Cathy Bean, who voted for the district last year, said, “I have no reservations about voting for it again. I think we have good people in downtown doing the right things.”

But she said she is willing to change her mind if a majority of merchants object to the program. “If they don’t want it, I certainly don’t want to jam it down their throats.”