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Board compares peer-city business-license models — Yountville, Martinez, Capitola, Monterey, Fairfield

Economic Development Board · May 28, 2025
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Summary

Members reviewed examples from other cities: Yountville’s retail-mix rule, Martinez’s tiered fees and short-term licenses, Capitola’s flat exemption/indexing idea, Monterey’s limited exemptions, and Fairfield’s use of permits to connect businesses to services.

Staff walked through peer-city approaches and suggested several elements the board might consider: explicit activity definitions, tiered gross-receipts rates, per-employee fees, short-term licenses for out‑of‑city contractors, targeted exemptions for creatives and home-based businesses, and indexing exemption thresholds to inflation.

Colette described Yountville’s requirement that a portion of downtown floor space be non-wine retail (cited at about 25%) and Martinez’s tiered fee chart and short-term contractor licenses. Rachel (introduced as representing Capitola) advocated an indexed flat exemption to avoid arbitrary thresholds, saying an indexing mechanism could prevent frequent, costly updates. Board members noted trade-offs between fairness and administrative complexity.