On Dec. 16 the City Council approved resolutions of intention to begin formation processes for two commercial improvement districts: (1) an Alameda Business Improvement District and (2) an East Santa Clara/Alum Rock district.

Staff described both proposals: the Alameda district would rely on business-license-based assessments and projected first-year revenues (presented as conservative estimates based on a 70 percent collection rate) and would fund marketing and neighborhood promotion; the East Santa Clara/Alum Rock proposal would levy a $350 annual assessment per participating business with a proposed first-year revenue estimate and a spending split focused on safety and beautification.

Business leaders and local association representatives testified in support. Councilmembers emphasized the need for training, transitional support from contracted consultants and a careful transition to locally governed associations. Both resolutions passed unanimously.

Why it matters: The districts are intended to provide stable, locally controlled funding for marketing, beautification and small-business support in two commercial corridors and will require public notice, owner outreach and ordinance readings before assessments begin.

What happens next: Staff will proceed through the statutory formation steps (notice to businesses, public meetings, hearings and ordinance readings); if finalized, assessments could begin in April 2026.