COLUMBIA — Downtown organizers predict their budget would more than double if property owners approve a community improvement district, with most of the increase coming from a proposed sales tax.
The proposed district would replace the existing Special Business District and Central Columbia Association.
"That's a big deal for both of those boards and everyone who owns property and does business downtown," said Mike Vangel, chairman of a steering committee in charge of the transition.
The two groups have a combined budget of about $218,000, most of which comes from business licenses, property assessments and member dues. A projected budget for the community improvement district is expected to be nearly $500,000.
The community improvement district, unlike the existing organizations, could charge a half-percent sales tax within its boundaries, and that would account for the lion's share of the increase.
Organizers expect to collect $300,000 of the $500,000 from downtown shoppers every year. The rest would be mostly generated through property assessments.
The projected numbers come from a petition that will be circulated among downtown property owners, who must approve the new district's formation. The petition was approved this week by the two groups' boards.
The sales tax would also need approval from registered voters living in the district.
Carrie Gartner, director of both existing groups, said the budget projections are just an estimate.
"It's designed to let people know where the money is being placed and where the priorities are," she said.
The proposed budget would double the money used for cleaning and maintenance, public safety and beautification.
"We want to make sure the district is both clean and safe," Vangel said. "That's very appealing to both merchants and visitors."
New budget items include:
The new organization would eliminate the business license fees collected by the Special Business District — something Gartner called a "nuisance fee" that serves as a barrier to starting a business downtown.
The business support manager would manage a database of property owners and tenants, set up incentives to attract new businesses and assist with zoning and permit challenges.
Gartner said the petition drive will start in January. The CID would be
formed as soon as enough signatures are collected and the petition is
filed, she said, ideally within 60 to 75 days.
The City Council has already approved a fiscal year 2010 budget for the
Special Business District, which is officially a government body.
Gartner said that if the petition passes, that organization will
fulfill its obligations for the rest of the fiscal year before the
community improvement district budget is adopted.
"We need to make sure the transition between the SBD and the CID is done in a way that we don't double-charge people," she said.