Board agrees to begin process for Lodi Winery Business Improvement District after months of debate

The San Joaquin County Board of Supervisors on Tuesday adopted a resolution of intention to begin formal proceedings to form a Lodi Winery Business Improvement District, setting a public meeting for Oct. 7 and a public hearing for Nov. 18.

The action by the board follows a multi-year feasibility process run by the Lodi Wine Grape Commission and consultant Civitas and came after a lengthy public discussion at the Sept. 9 meeting in which winery owners, industry representatives and some small tasting-room operators disagreed over governance, assessment mechanics and disclosure of the sales data used to calculate a weighted petition threshold.

Proponents said the district will create a stable funding source for top-of-funnel marketing to bring more visitors to Lodi tasting rooms and to capture more of the value-added wine economy locally. “This program is an economic impact tool,” said Stuart Spencer, representing the Lodi Wine Grape Commission. “The more we can capture the value-added portion of that in San Joaquin County, the better our county will be.”

Gina Reed, senior project manager for Civitas, told the board 35 petitions have been returned representing 64.33% of the assessed wineries — exceeding the 50% weighted threshold the county requires to proceed under California law. Reed said the proposed management district plan was revised after industry feedback and that the assessment rate was “reduced by half a percent” from the initial draft.

Opponents questioned transparency of the weighted vote calculation and governance of the proposed board that would run the BID. Attorney Brett Jolley, representing several wineries, asked the county to pause and provide a clearer explanation of how the weighted vote was computed without releasing confidential tax data. “We don’t understand how the weighting was done, how the numbers were calculated,” Jolley said during public comment.

The board approved the motion to proceed and included an instruction to place the confidential sales data supporting the weighted petitions under seal so a judge could review it in camera if a legal challenge arises. The board also directed staff to obtain consent from other jurisdictions that would be included in the district boundary — the city of Lodi and portions of Elk Grove, Galt and Sacramento are listed in the management plan — before the final November hearing.

Les Ray, president and CEO of Visit Lodi, said the BID would let winery promotion dollars be used in a coordinated way to increase hotel room nights and restaurant business. “Strong winery demand is a front door to our visitor economy,” Ray said.

Opponents, including some small tasting-room owners, said they were concerned about an added charge on customer receipts and the lack of a concrete marketing plan at the time petitions were circulated. “My customers who support me are writing a blank check,” said Suzanne Burns of Jesse’s Grove Winery. Others called for continued conversation and for the proponents to try to build broader industry consensus before formal formation.

What the board approved Tuesday starts the statutory formation timeline: notice to assessed businesses, a public meeting to collect input and a final hearing where the board may adopt the ordinance forming the district. If any jurisdictions decline to consent to inclusion in the proposed boundaries, staff told the board they will reduce the district boundaries and return for the final hearing.

The board vote was 5-0 to initiate the proceedings; supervisors voting yes were Paul Canepa (chair), Quddus Dhaliwal (vice chair), Kathy Guardia, Thomas Ding and Richard Rickman.

If the district is eventually formed, the BID will be governed by a board of winery representatives and operated by a nonprofit owners association required to file an annual report with the county that documents spending and priorities. The management district plan explains the proposed uses: destination marketing, media/public relations, event coordination and cooperative promotion of Lodi wineries.

The county will act as the lead agency through the formation process, but the board stressed it expects proponents to return with clarified governance bylaws and outreach to smaller tasting-room operators before the final hearing.