Downtown Huntington Beach business owners want a district board overhaul
A petition signed by about 100 downtown Huntington Beach business owners demanding the removal of the nine current members of the Downtown Business Improvement District board was emailed to the city Wednesday, the Daily Pilot has learned.
The move comes amid controversy surrounding the finances of the Downtown BID and the council’s vote Tuesday to have the city’s Finance Commission launch an audit.
The petition alleges that the BID — a public-private partnership that aims to revitalize the downtown area — has kept two sets of books since 2011 and that one of the accounts, totaling $271,000 as of September, was kept secret from the council.
Some signatures are repeated, but Susie Smith, former BID president and one of the organizers of the petition drive, said Thursday that’s because some signers have more than one downtown business and have to pay BID dues for each, which grants them multiple votes when electing BID board members.
Smith said the BID board gives the City Council an annual financial report but omits the “secret” account. Smith owns Makin’ Waves Salon, at 320 Main St.
Steve Daniel, president of the Downtown BID, said Friday that there is no secret account. Daniel said the account referred to by petitioners contains the revenue from Surf City Nights, a popular Tuesday night street fair sponsored by the BID, and that the money is being saved for major projects, like new lighting in the area that could cost as much as $1 million.
He said the account has never been concealed from the council and hasn’t been submitted in the annual financial statement only because the city hasn’t requested it.
Assistant City Manager Ken Domer echoed Daniel’s sentiment Friday, saying the account is not secret.
“That this full information was not included in previous renewal documents is less their fault and more a continuation of past practice and that we didn’t request it,” Domer said in an email.
Domer said that when the BID presents its financial report this year, the group will be required to include “all revenues.” Daniel said the BID would provide what the city requests.
Smith said these funds should not be sitting dormant in an account when the downtown has what she termed major problems.
According to the petition, downtown is in “dire” shape, facing “street people” and public safety issues. It includes pictures of pill bottles and trash.
The petition quotes an unnamed restaurant manager referencing problems with homeless people who have caused “a few bad situations” at the person’s property. The document states that a new board of directors is needed to improve the situation.
Daniel said the BID is currently working with police on the homeless issue.
Domer said he was aware of plans for new lighting and that it was his understanding the money come from the Surf City Nights account.
Smith said a primary reason BID stakeholders want a leadership overhaul is to fill the board with business owners. Currently, employees of downtown businesses make up some of the members. Smith said employees “do not have enough stake” in improving downtown.
The petition includes the names of 21 downtown business owners, Smith included, who are willing to serve on the board until the BID elections are held in September, which marks the end of its fiscal year. Board members are elected by district business owners.
Smith said she held a meeting with about 40 downtown business owners in early December, informed them of the issue and began collecting signatures.
Mayor Barbara Delgleize said Friday that she wants the Finance Commission to move forward with the review of the BID’s financial statements, which is supposed to be completed within 60 days.
“We have to do a review to have our facts first,” she said.
Daniel said Friday that he requested the review to disprove the allegations against the BID.
Council members Erik Peterson and Mike Posey have sought the appointment of three council members to the BID board “to ensure that the DBID is efficient, transparent and operating in the best interests of all downtown businesses,” according to a document submitted to the council a few weeks ago.
Posey and Peterson decided to pull the item from the Feb. 6 council agenda.
Posey said Friday that the proposal was “premature” and he wanted to wait after the financial review.
Twitter: @benbrazilpilot
