San Jose could create its first business improvement district in more than 15 years. Here’s where

San Jose officials are banking on a new business district along the Tully Road and Eastridge corridor to spur economic growth in East San Jose — the first piece of a larger vision to help small businesses thrive throughout the city.

The Tully Road-Eastridge Business Association (TREBA) has spent the past two years developing plans for an improvement district, pooling resources along the corridor to improve public safety, cleanliness and its marketing efforts.

“We’ve long needed to see meaningful improvements,” Board Chair Christina Bui said. “So for the last 35 years, not much has changed, but now, with the BID, there’s going to be a real opportunity to revitalize the area and make it a place we can all be proud of. Imagine a corridor that is more vibrant with cleaner streets and banners that proudly mark this as a true destination.”

The business corridor, which includes nearly 500 businesses employing 4,000 workers combined, stretches from Highway 101 to Capitol Expressway, anchored by Chuck E. Cheese and the Eastridge Mall.

The improvement districts levy a set assessment on businesses, depending on their category. For this particular district, financial institutions would pay $485 annually, while retail and professional services businesses would pay $385 and $300 per year, respectively.

For the first year, the district has forecasted the collection of $120,000, assuming a 65% collection rate. Except for a small city administrative fee, all funds must go towards services desired by or benefitting the district.

Cleaning and public safety improvements, such as purchasing security cameras, will account for 81% of the expenses, while the business association has proposed spending 11% of the district’s budget on additional marketing and branding efforts.

Creating a district requires a public hearing and the City Council’s approval of an ordinance, which it hopes to accomplish by Dec. 19.

If approved, it would be the first improvement district created in nearly 16 years and the first east of Highway 101.

“I have and always will be a strong advocate for our small business community because investing in them benefits not just our families and our neighbors but our entire local and city economy,” said District 8 Councilmember Domingo Candelas, who represents part of the corridor.

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San Jose has approved five other improvement districts since 1988, including Downtown, Japantown, and Willow Glen.

City officials hope the Tully Road-Eastridge district will be the first of six created in the next two years.

A report by the Office of Economic Development and Cultural Affairs from earlier this year showed that the city had an even greater plan over the next 10 years to establish business associations and districts on Monterey Road, Story Road, Alum Rock, the Alameda, Calle Willow, the East Village and Winchester Blvd., showing a more significant commitment to businesses throughout the city.

San Jose Mayor Matt Mahan expressed his excitement that the city is pushing to help form more districts to empower small businesses, which he noted could accomplish more together.

“That power of collective action is something we can help facilitate and is going to benefit all of our small businesses and all of our residents,” Mahan said.

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