Establishment of the Story Road Business Improvement District and Approval to Levy Assessments in the Story Road Business Improvement District for Fiscal Year 2026-2027.

The City Council is establishing the Story Road Business Improvement District (SRBID) and approving the levy of assessments for Fiscal Year 2026-2027. This action, authorized by the California Parking and Business Improvement Area Law of 1989, aims to fund physical maintenance, marketing, and promotion efforts to boost commercial activity in the Story Road business corridor.

Key Provisions:

• District Boundaries: The SRBID encompasses businesses along Story Road, McLaughlin Avenue, Remillard Court, Felipe Avenue, Lucretia Avenue, and Olinder Court.
• Purpose: To provide revenues for physical maintenance, marketing, and promotion to increase commercial activity.
• Assessment Rate: A base assessment of $350.00 annually per business. Businesses occupying more than 25,000 square feet will incur an additional $350.00 assessment for every additional 25,000 square feet.
• Collection: Assessments will be collected concurrently with the City's business tax.
• Penalties: Late payments will incur penalties of 10% for the first offense, an additional 10% for delinquency over 30 days, and potentially 25% for intentional misrepresentation or fraud. Interest will also apply. The City may refer delinquent accounts to a collection agency after 120 days.
• Administration: The Story Rd. Business Association, Inc. (SRBA) will administer the SRBID. The City will charge a 1.0% administrative fee on collected assessments.
• Budget: The total budgeted revenue for FY 2026-2027 is approximately $129,185, with funds allocated to Clean, Safe, and Beautiful (40%), Marketing and Activation (40%), and Administration and Contingency (20%).

Timeline:

• Public Hearing: April 7, 2026
• Ordinance First Reading: April 7, 2026
• Resolution to Approve Budget and Levy Assessment: April 7, 2026
• City of San José Agreement with SRBA: April 7, 2026
• Ordinance Second Reading: April 21, 2026
• Ordinance Becomes Law: May 22, 2026
• Assessment Begins: July 1, 2026