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Board backs transition of Highway 1 tourism district to 1994 model with policy guidance on spending balance

San Luis Obispo County Board of Supervisors · July 28, 2026
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Summary

After extensive public comment from lodging and local fund area representatives, the board approved proceeding with a petition drive to convert the Highway 1 County tourism assessment district from the 1989 to the 1994 statute, asking the alliance to draft a board policy on balanced expenditures to return to the board.

The Board of Supervisors on July 28 gave direction to proceed with formation steps for a Highway 1 Tourism Business Improvement District under the 1994 Property and Business Improvement District Law while asking the Highway 1 Tourism Alliance to develop a companion board policy setting expectations for a balanced mix of marketing, beautification and infrastructure expenditures.

Staff presented options for moving from the county‑run 1989 model (annual renewal) to the '94 model, which would operate under a multi‑year management district plan administered by an owners' association but retain county oversight and annual reporting. Industry and local fund area speakers—hotel and vacation rental owners, local fund chairs and consultants—urged the board to approve the management district plan to provide stable, industry‑led funding and continued local control of spending decisions.

Vice Chair Gibson and other supervisors supported the transition while seeking language to ensure a balanced allocation between regional marketing and local tangible improvements such as trash receptacles, parking, and beautification projects. The board directed staff and the alliance to proceed with the lodging owner petition drive and asked that the alliance draft a board policy on expenditure balance and board composition to return to the supervisors during the formation timeline; the motion passed by roll call.