Midtown BID
Following interest from business owners in the Midtown area for a potential business improvement district, the City of Santa Cruz contracted with Community Strong Strategies, KLI, Inc. and Civitas to engage business and property owners for feasibility and potential formation of an improvement district.
The feasibility analysis and initial outreach resulted in interest from business owners to form a Business Improvement District (BID). From there, business walks (which included a survey to determine what services businesses were most interested in) and two hybrid meetings were held. Businesses were noticed at least two weeks prior to these events.
Midtown business owners, sign up to receive updates about the proposed Midtown BID here.
Midtown Business Improvement District Proposed Assessment Area
Midtown BID Formation Timeline
The formation timeline has been paused to provide more time for staff and businesses to engage
September 9, 2025
City Council:
- Resolution of Intention to form BID
October 28, 2025
City Council:
- Public Meeting
- 1st Reading of Ordinance, Allow public testimony regarding the establishment of the BID, no action taken
- Status: Continued to a later date - item will not be heard at City Council
November 18, 2025
- Public Meeting
- 2nd Reading of Ordinance
- Protest ballots counted and action taken on establishment of BID
- Status: Continued to a later date - item will not be heard at City Council
Any questions can be directed to kferraro@santacruzca.gov
What is a Business Improvement District (BID)?
BIDs are a stable funding source for organizations of business owners working to improve their business district. Owners within the district work together to make significant improvements, attract consumers and develop the area. BIDs can have many functions, all of which are aimed at increasing business activity. The operations of a BID are determined by the businesses funding the BID. BID activities can include print and internet advertising, special event sponsorship, capital improvements, beautification efforts, and many other programs that benefit the businesses within the district.
What does a BID do?
BIDs can have many functions, all of which are aimed at increasing business activity. The operations of a BID are determined by the businesses funding the BID. BID activities can include print and Internet advertising, special event sponsorship, capital improvements, beautification efforts, and many other programs that benefit the businesses within the district.
Who manages a BID?
An advisory board, made up of business owners from the district and initially appointed by City Council, would be responsible for managing the BID, managing funds and implementing programs in accordance with the BID's establishment ordinance. The BID is a separate organization that oversees the management and spending of assessment revenues. The City is only involved to help with the collection of funds and the formation and renewal process.
How is a BID funded?
The BID is an assessment collected from business owners through their business license information. The City collects the assessment on behalf of the BID and passes it through the organization created to manage the BID. The BID organization is managed by an Advisory Board comprised of the business owners in the District and will be responsible for implementing BID programs. The City cannot keep the funds for its own purposes – the funds must be allocated to the BID and used on the BID programs.
Why should I support forming a BID?
The Midtown BID will be managed by a board of representative business owners. Your participation will help define the decisions that benefit Midtown the most. BIDs have successfully improved commercial districts throughout California and nationally by providing marketing, branding, special events, maintenance and landscaping enhancements—resulting in higher sales, occupancies, and creating a sense of community.
The MSCBID is proposed to provide specific benefits to payors, by funding, in general, Beautiful, Clean, and Safe programs, Marketing, Branding, and Special Events programs, and Administration services. BIDs provide stable funding for business owners to ensure their district is clean, safe, and an attractive place to visit.
Because BID funds are not a tax for the City's general purposes, they cannot be subjected to the budget cuts municipalities have been forced to make.
What are the advantages of a BID?
• They provide a stable funding source for improvements and marketing
• They are designed and created by those who pay the assessment
• They are governed by those who pay the assessment
• Funds cannot be diverted for other government programs
• They are customized to fit the needs of their district
• A wide range of services can be provided