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Downtown business owners could see an increase in fees they have to pay the Pleasanton Downtown Association next year, following the Pleasanton City Council’s unanimous support for a fee restructuring.
The proposed fee restructuring was just one piece of the Sept. 16 discussion on the Downtown Pleasanton’s Business Improvement District (BID) 2025 annual report and the 2026 budget, which aims to improve the partnership between the PDA and downtown business and property owners so that those businesses can thrive in and around Main Street.
“Economic vitality downtown is not a Sunday issue anymore for us. It’s urgent now,” Mayor Jack Balch said during the meeting. “We’ve seen the closures, the residents are asking what’s coming next and so are the fellow businesses … so it’s just about being very clear about our competition and what we need to do to bolster our economic outlook on the downtown.”
According to the city, every business located within the boundaries of the downtown area is part of the BID. The boundaries stretch from Peters Avenue to the west, First Street to the east, Bernal Avenue to the south and Del Valle Parkway to the north.
Businesses within the boundaries are required to pay membership fees to the PDA, which are calculated through an annual assessment based on the proximity to Main Street. For example, businesses located on the ground level of Main Street typically pay a higher annual fee than those located on the second floor or on other downtown streets.
The BID assessment is also based on the annual business licence — nonprofits within the BID are not assessed.
Every year, the PDA undergoes a process to levy the downtown Pleasanton BID and is now in the process of doing so for the next year’s collection period. The council had already appointed an advisory board to prepare the PDA’s 2025 annual report and 2026 budget before approving the documents last week.
As part of the approval, the council voiced their support for some of the recommended changes to the BID for next year, including the fee restructuring.
City economic development manager Lisa Adamos said that for 2025, the BID assessment was estimated at $80,000 which the city matched dollar for dollar as approved at the Jan. 21 council meeting. She said the current structure also projects about $80,000 for the next year.
But instead of maintaining the status quo, which has mostly stayed the same since 1996, Adamos said the PDA is now suggesting a significant change that would have business owners pay more each year.
Currently, the minimum assessment fee is $50 and the maximum is $350. Certain businesses pay an annual fee of $200.
Under the newly proposed assessment structure option, all businesses located curbside and downstairs on Main Street would be assessed at a rate of three times their business license while businesses with a Main Street address located upstairs or not curbside would be assessed at a rate of two times their business license.
All other businesses located off Main Street would be assessed at a rate of one and a half times their business license.
Additionally, the proposed restructuring would increase the minimum assessment from $50 to $125 and the maximum from $350 to $750. The annual charge paid by any business exempt from the city’s business license tax would go up from $200 to $450.
The assessment would also be subject to an annual escalator tied to the CPI, Adamos said.
With that recommendation, the estimated assessment would be about $140,000 — an increase of approximately $60,000 compared to last year’s assessment.
“Over the past several months the PDA has made a strong effort to engage with businesses and communicate the benefits of being part of the district,” Adamos said. “Based on that outreach, the advisory board and PDA staff believe there is adequate support from businesses to recommend this BID restructuring.”
PDA Executive Director Gabrielle Welk went over some of the ways the increase in funding would help the downtown organization better support businesses in the area. She said the PDA plans on putting that money toward business support expansion, new events and community programs, downtown beautification and placemaking programs and improving visitor experience by leveraging technology.
She said the additional funds would also be used to enhance tourism and support business recruitment and retention initiatives.
Welk also mentioned there are some new businesses that might not know much about the PDA or the benefits of becoming a member with the PDA but that the organization is — and has been — working on developing those relationships so they understand what is going on as the PDA continues moving forward with its assessment process.
“We have had conversations with many many businesses and … (many of them) have expressed that they would be in full support of that,” Welk said. “I think the businesses that are aware of what their benefits currently are and that interact with us are showing full support.”
Several of those downtown business and property owners also spoke up in support of the assessment increase as a way to better improve the partnership between them and the PDA.
“I don’t see this as a fee, I see this as a partnership,” Neighborhood Sports Bar and Cellar Door owner Scott Larson said during public comment. “If somebody said I have a team of three people that can help you increase your marketing, increase your social media presence, put money in my drawer … and this team is going to cost you $750 a year — (that’s a) no brainer.”
Balch also asked Welk to address some of the recent vacancies in downtown Pleasanton — Starbucks and Main Street Brewery are among those on that list — to which Welk said the increase in assessment revenue could also help the PDA’s efforts to recruit new businesses to the area.
She said the PDA has also been coming up with strategies to address the vacancies like making the empty buildings look more inviting and circulating more information to prospective tenants about the viability of downtown Pleasanton.
And while the BID assessment restructuring is just one aspect of the PDA’s overall strategic plan to modernize its structure, increase funding capacity and expand engagement with local downtown stakeholders, Welk and city staff said it is key to help ensure the long-term success of businesses in the area.
“I think it’s great to see the PDA and the businesses coming together and building something for their own benefit with the help of city staff,” Councilmember Craig Eicher said. “It’s nice to see you guys driving it as opposed to the city driving it and I think that’s going to be a big win for you in the long run.”
Staff will present an ordinance to levy the new assessment for 2026 to the council at the Oct. 7 meeting and staff will then return for a second reading and public hearing on Nov. 4.
I would like to see significant assessments on building owners who have empty spaces to encourage them to find new tenants, possibly increasing the assessments the longer the spaces remain vacant.