ESCONDIDO — The city has agreed to support the formation of a new business improvement district in the downtown area.
In a 4-0 vote on May 13, the Escondido City Council authorized the city manager to sign a petition and ballot to form the Downtown Escondido Property Business Improvement District, or PBID.
Councilmember Consuelo Martinez recused herself because she rents a booth at the Escondido Antique Mall, which is within the proposed district.
A PBID is a special assessment district in which property owners levy assessments on themselves to fund services beyond those provided by the city, including enhanced street cleaning, additional security and lighting, and marketing events.
The city owns 30 parcels within the proposed PBID, resulting in an annual assessment of $219,759 — nearly one-third of the district’s overall budget. Assessments could also increase by up to 7% annually, as determined by the district’s management.
City staff began exploring the formation of a downtown PBID in 2022. Efforts paused during the campaign for the city’s one-cent sales tax measure, but resumed last year after it passed.
The district would cover approximately 26 square blocks of varying size. Boundaries include restaurants, retailers, service businesses, office buildings, market-rate and residential housing, hotels, industrial properties, and civic buildings such as City Hall, Grape Day Park and the Escondido Public Library.
Late last year, Greystar, owner of Marlowe Palomar Heights, and the North County Transit District, two major downtown stakeholders, informed the city they would not participate in the proposed district.
Parcels in Benefit Zone 1 would pay a higher fee but also receive greater benefits than those in Benefit Zone 2 because of their location in the district’s core area.
To form the district, petitions from private and public property owners within the proposed boundaries must represent at least 50% of the first year’s total assessment. Once verified, the City Council will consider a resolution of intention and mail ballots to all property owners in the district, who will then vote on whether to establish the PBID.
Carol Rogers, a board member of the Escondido Downtown Business Association and chair of the Escondido Public Art Commission, voiced support for the PBID.
Rogers, who is also a business owner and a 20-year resident, said she has seen Escondido go through many ups and downs during her time in the city and was initially hesitant to support the district.
“I’ve gone back and forth on this, but I really believe this is the right time and the right next step for growth in downtown Escondido,” Rogers said.
She noted that while the Downtown Business Association has worked extensively to improve downtown, its volunteers can only do so much.
“A downtown benefit district would provide focused resources from dedicated staff and reliable funding that would allow us to create a clear, more vibrant, more welcoming downtown,” she said.
Jason Schafer, meanwhile, warned that some property owners may not be well informed about the district because notices were mailed to incorrect addresses. He also argued that the district’s costs — which he said appeared duplicative of existing city services — would likely be passed on to businesses along Grand Avenue that are already struggling with high rental costs.
According to Rogers, the additional services would complement, not duplicate, the city’s existing services.
The city expects to hold a public hearing to count ballots in either late June or early July.
