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Council expands authorized uses of Arroyo Grande tourism improvement funds to include street furniture and public art
Summary
The council voted to modify authorized uses of the Arroyo Grande Tourism Business Improvement District (AGT BID) assessments to allow funding for long-term physical improvements such as benches, lighting, wayfinding, trash receptacles and public art; staff said peer cities saw economic benefit from similar investments.
Director Volkin presented a public hearing and staff recommendation to amend the authorized uses of assessments collected through the Arroyo Grande Tourism Business Improvement District and to amend Chapter 3.46 of the Arroyo Grande Municipal Code. The recommendation, which had come from the AGT BID advisory board, would expand permissible spending beyond marketing and administration to permit long-term physical improvements that support tourism.
Volkin told the council the advisory board began discussing the expansion in October 2024 and in December 2024 unanimously recommended the change. Staff cited examples from peer communities: Paso Robles reported a 25% increase in transient occupancy tax after investments in public art and wayfinding; San Luis Obispo had recovered downtown vibrancy and pre-pandemic TOT revenues following beautification work; and Pismo Beach invested in ADA-accessible infrastructure and ecotourism amenities. Staff recommended the council conduct the hearing, determine whether a majority protest existed and, if none, adopt a resolution modifying authorized uses and introduce an ordinance to amend the municipal code. Staff said the action was not subject to CEQA.
The city clerk reported zero protests at the close of the public hearing. Council Members Guthrie and Maravilla each expressed support during council comment, describing the change as a long-sought expansion that could increase effectiveness and create new opportunities for the BID. Council Member Guthrie said she was "certainly in favor" and Council Member Maravilla expressed excitement about competing regionally with Pismo Beach.
Councilmember Maravilla moved the resolution and instructed staff to introduce the ordinance; a second was recorded and a roll-call vote approved the resolution with Council Member Guthrie, Council Member Maravilla, Mayor Pro Tem Seacrest and Mayor Ray Russom voting yes. Council staff said first reading of the ordinance had been completed and the ordinance would return on consent at the next meeting.
