BID stands for Business Improvement District. A BID is authorized by state law and created by the city council. Its purpose is to promote and improve a specific area for the benefit of businesses within the area. The BID fee a property assesment that pays for that work. In San Jose, the city assesses all business license holders a BID fee annually.

The San Jose Downtown BID is bounded roughly by Julian Street, Fourth Street and highways 280 and 87, where it jogs west to include the arena and the train station, and Coleman Loop area.

Every year since 1989, the San Jose Downtown Association (SJDA), a nonprofit organization, has been selected by the city council to manage the Downtown BID. Every business in the boundaries pays fees and is automatically a member of the Downtown Association. The members elect a board of directors to determine budgets and programs.

No. Since 1989, the BID has been raised three times: in 1994, when the BID boundaries extended to include the Arena area; in 2003 to include San Jose MarketCenter, and a modest rate adjustment in 2011.

BID fees represent about 25 percent of SJDA’s budget. The rest of SJDA revenue comes from earned income through events and sponsorships, plus contracts and fees for services. For every dollar the business community puts into the BID, four more dollars are leveraged by SJDA to improve Downtown. By state law, the BID money can only be used to support general business activities, promote public events, decorate public places and provide music and entertainment in the BID area. The Downtown Association uses its budget to promote downtown through stragetic marketing, by helping businesses navigate city hall and events including Music in the Park.

BID funds are spent on a variety of projects including advertising, marketing brochures, maps, websites, weekly e-letters, holiday lighting and events including the Farmers’ Market, South First Fridays and Downtown Ice, the outdoor skating rink. SJDA advocates on behalf of BID members for a vital and vibrant Downtown for businesses, their clients, customers and employees. Association staff members are available to assist BID businesses and property owners and address their individual concerns. SJDA provides a strong voice for Downtown to the media, government officials and policy makers and manages the Groundwerx clean, safe and beautiful services.