Ventura Levies Downtown Business Tax Despite Foes

It was close, but a disgruntled collection of small business owners failed to muster the financial clout to kill a tax on downtown merchants aimed at beautifying and promoting Ventura’s old shopping district.

The Ventura City Council on Monday levied another yearly assessment fee on downtown business owners, even though about half of the merchants signed formal requests to drop the tax.

But the opponents represented only 47% of the total $56,653 yearly assessment of businesses in the special district, city officials said. And under state law, the council must drop the tax only if merchants representing more than 50% of the total assessed tax file objections.

In the final count, 181 of the 363 downtown business owners joined in opposition. But their influence was diluted because they pay smaller percentage of the taxes than bigger business that are more willing to help finance the program to increase tourism and commerce in downtown Ventura.

“We got the shaft,” said Frank Toms, a furniture store owner who helped round up opponents. “We’re just little guys.”

The council’s vote puts the issue to rest until next year, when state law will require the city to reconsider the tax.

The City Council has favored the special tax to increase commerce in downtown Ventura, as part of its overall plans to redevelop the area that has suffered economically in recent years.

The special tax program was created about a year ago so that merchants could pool their money to promote the downtown area. The designated district is bordered by Ash and Olive streets on the east and west, and by Poli Street and the Pacific Ocean on the north and south.

City officials act as the collection agency and turn the money over to the Ventura Image Program, a nonprofit organization that spends the funds.

So far, the program has produced a retail shopping guide, conducted two advertising campaigns and sponsored outdoor concerts on weekends.

“They should be given the opportunity to make it work,” Councilman James L. Monahan said during Monday night’s debate.

About 20 business owners bitterly debated the merits of the special tax before the council voted 6 to 1 to extend the tax another year.

“I think we’re better off getting out of this morass,” said Councilman Todd Collart, who cast the dissenting vote. “I think this is not working.”

Stan Jacobs, president of the nonprofit group that administers the program, said he was disappointed that so many merchants objected to the tax.

“I’m disappointed with the whole thing,” Jacobs said. He acknowledged that the program may now lose credibility among businesses this year.

Jacobs is general manager of the beachfront Holiday Inn, which pays about $1,500, the highest assessment fee in the district. The Holiday Inn also stands to benefit from increased tourism.

The smallest business retailers pay $120 annually, and the average assessment fee is $135.

According to city records, only $48,000 of the $73,000 assessed was collected last year. More than 100 businesses did not pay at all, and 40 more paid only half their assessments.

Assessment bills are scheduled to be sent out next week, and some opponents say they will refuse to pay it.

Miriam Mack, the city’s Redevelopment Agency director, said it is likely that the city will take merchants to Small Claims Court this year to collect unpaid fees.

Toms, who vocally opposed the tax, said he thought the district would die out this year.

“I think the supporters are tired of fighting with their neighbors,” he said, “and we’re tired of fighting with them.”