Council renews Capitola Village BIA assessment and authorizes contract with nonprofit

The Capitola City Council on Aug. 28 adopted the FY 2025–26 levies for the Capitola Village and Wharf Business Improvement Area (BIA) and accepted the BIA annual plan and budget. The council also authorized the city manager to execute an agreement with the BIA nonprofit for up to $90,000 to deliver marketing and village improvements funded by the assessments and restricted TOT revenues.

Staff described the BIA as a business-imposed self-assessment established by ordinance in 2005; assessments are unchanged from recent years and are set at 75% of the maximum allowable for most business types and 50% for hotel/lodging classifications. The nonprofit BIA presented the annual plan; board members attended the meeting and said they wanted time to review the final contract language. Council approved the assessment resolution and allowed the city manager to finalize the contract subject to minor administrative changes and city-attorney approval; substantive changes would return to council.

Board leaders thanked the council and noted the BIA’s program budget would include scope items paid with both assessment proceeds and an allocation of restricted Transient Occupancy Tax designated for village improvements. Council and BIA representatives said the organization will reimburse city administrative costs and will deliver marketing and village support within the authorized contract amount.

The vote was unanimous.