Council approves steps to form two business improvement districts in Alameda and Alum Rock'Santa Clara corridors

San Jose City Council on Dec. 16 approved preliminary actions to form two business improvement districts (BIDs): an expanded Alameda BID and an Alum Rock'Santa Clara BID covering East San Jose corridors.

Office of Economic Development staff said the Alameda BID would cover roughly 1,731 active business tax certificates and, assuming a 70% collection rate in year one, generate about $258,930 for marketing and promotion in its first fiscal year. The Alum Rock'Santa Clara BID would cover about 540 businesses and, at the same assumed collection rate, generate approximately $266,070 initially, with a proposed budget split focusing 50% on safety and beautification and the balance on marketing and administration.

Councilmembers and business leaders emphasized that many businesses led these efforts and that consultant support (Community Strong Strategies) will train and advise boards on Brown Act compliance and fiduciary governance. Councilmember Ortiz, an early proponent of the Alum Rock effort, said the BID is a community-led tool to fund safety, cleanliness and marketing in the corridor.

Public comment included business association leaders and long-time merchants who said the BID model allows them to "pull ourselves up by our own bootstraps" and reinvest locally. Council approved resolutions of intent for both BIDs and set timelines that, if carried forward through required hearings and ordinance readings, could allow assessments to begin in April 2026.

Why it matters: BIDs create a dedicated, locally controlled funding stream for neighborhood commercial corridors and can support marketing, safety, maintenance and economic resiliency.

What's next: Staff will mail information to businesses, hold public meetings, finalize budgets and return for hearings and ordinance readings as required by state law. Staff and consultants will continue training and support for emerging boards.