As the economic downturn reignites concerns about the fading Latino footprint in downtown Santa Ana, its businessmen are mobilizing on a scale not seen in years to rethink the area’s commercial and cultural needs.
Their appearance at the Nov. 15-15 city council meeting prompted a preliminary council vote to eliminate a special tax on their stores that mostly goes to downtown corporations, downtown economic interests and the area’s expanding high-end restaurants. Linked to the image of the bar.
Under an agreement with the city to run so-called Business Improvement Districts (BIDs), Downtown Inc. collects money from more than 600 businesses across the territory. In exchange, it hosts promotions and publicity events with the Santa Ana Business Council, a sister group it operates.
But questions have been raised as to who really wins in the arrangement, as smaller Latino businessmen — now a majority of city council members last month — describe community responses to the downtown group’s promotional practices and leadership unbalanced.
“Who is Alfredo Amescua?” City Councilman David Penaloza asked during the meeting as he read out the Santa Ana Business Council’s board of directors on what to expect. Provide advice on issues of concern to the business community in the region.
“He’s a lawyer in the city, he’s elected,” replied a city worker from the podium.
“Does he have business in this business district?”
“Do not.”
“Then why is he on the board?”
“The Santa Ana Business Council board can be pretty much anyone, but not necessarily — I’d have to look at the operating agreement…” the city staff began.
Penalosa stopped him as the audience groaned.
“Look, it doesn’t make sense to me,” he said.
Under the special tax regime, critics say, downtown business groups take money from struggling stores in exchange for marketing that does little for them, funded by whatever is not part of the downtown group’s own administrative costs. In some cases, merchants on Nov. 15 said they barely understood the system.
Several speakers said they only learned about the downtown group after businessmen organized to protest the OC streetcar construction blocking traffic on Fourth Street and the lack of help from local government officials.
At the time, representatives of the downtown group sided with the businessmen and demanded bailout funds from the local government.
But the streetcar’s economic hit to the region — coupled with the pandemic — has sent businessmen through one struggle after another, forcing them to drive some early mornings to occupy the streetcar’s muddy construction ditch with chairs and poster board signs .
As they crunch their bills, they’re curious about how downtown groups spend their tax dollars.
“What improvements did you make to the coin laundromat around the corner from French and Civic Center?” asked Shawn Makani, a Telas Fabrics veteran with over 30 years of experience, in a public comment on Nov. 8. 15 sessions.
“How about all the businesses on Main Street and 5th Street?”
The idea of disbanding the tax district was initially supported by the City Council in a 6-1 vote, but Councilman Phil Bacerra opposed it, as downtown businessmen found new ways to raise their own money for promotional funds more important.
Dissolution would leave Downtown Inc. in trouble. Controls an area it has long envisioned “uplifting” – making it a shopping, dining and entertainment destination with commercial and creative appeal.
Downtown Inc wrote, “We continue to believe in the incredible value of BID to our merchants and to the City of New York, and we cannot imagine the City without our weekly newsletter, social media, events, advocacy, partnerships and customer service.” What the center will look like,” President Ryan Chase said in a letter to council ahead of the meeting.
Chase added: “Frankly, it would be devastating and set the clock back even further, which is in the midst of COVID and [OC Streetcar] Construction, cannot happen. “
But it hasn’t been finalized yet. There are more steps in the dissolution process, one on December 10th. On the 20th, the council will vote on a “resolution of intent” to disband the business improvement district.
After that, the committee is expected to hold a public hearing on Jan. 1 and hold a final vote on the dissolution of the special tax district. 17 or next year.
The council’s November vote follows the city’s Community Development Council earlier in October recommending the removal of the special tax, a recommendation that occurred at a meeting that council member Jesse Lopez later publicly called “dramatic.” and “shameful”.
“a small part”
“Are you all focused on restaurants and bars?” Community Development Commissioner Richard Santana asked Santa Ana Business Council Representative Madeleine Spencer at an October board meeting. Merchant Complaints.
“No, we’re not,” Spencer said.
The crowd began to voice their disapproval.
“Please let her speak,” Santana said.
In response to claims of lack of outreach and awareness, Spencer said information about the Santa Ana Business Council and downtown companies, such as their financial and leadership structures, has always been available online to the public.
“The public may not know how to access the files, and the files may require some training, but at the same time, it’s always there,” Spencer said.
Downtown groups host events such as Savor Santa Ana, which reportedly has more than 40 participating restaurants and 2,000 attendees. The groups also donated $20,000 to more than a dozen event producers to bring events downtown and provide support for year-round pop-ups, according to a report by city staff attached to the November meeting agenda. Small grants of $10,000 were provided by businesses and small events. The two groups “continue to increase their social media presence and have more than 50,000
followers. “
Of the businesses Rep. Johnathan Ryan Hernandez said he heard, “many[say]BID works for them.”
“But the vast majority,” Hernandez added, “believe that many of them have never been in contact with any of the groups that represent them.”
“The people who came out today are just a fraction of what it’s really like to be in downtown Santa Ana — a group of business owners who are disenfranchised, marginalized and pushed aside,” Hernandez added.
However, the inner-city group has several supporters in the November election. 15 City Council meeting.
Among them: Raul Yanez of Mi Moda Menswear on Fourth Street.
“Where is it better?”
Speaking from the podium, Yanez addressed what critics see as redundancies in having two organizations — Downtown Inc. and the Santa Ana Business Council – governing the area.
But, Yanez said, “We are merging into one association and including new BID members with new ideas, better communication and better representation.”
As those behind him jeered, Yanez paused to clear his throat.
He went on to say that removing the special tax would be “devastating”.
“No promotions or events downtown – it’s going to be worse than construction and COVID,” Yanez added.
Bacerra, the only council opposed to dissolving the tax district, said the tax served its purpose.
“I think marketing in general is good, but that’s not to say the current way of marketing is right. I’d support doing it for another year in order to keep me going,” Barcella said.
Other business owners who spoke out in support of the downtown group promised there was room for improvement and reconciliation. Some peers aren’t worried.
“I respect the other comments – the only thing they can say is that BID will do better. Which is better? BID doesn’t pay for security. Getting rid of BID won’t give us more vandalism or what we already have in the city center (problem),” said Ana Padilla, owner of two downtown businesses.
She called herself “the perfect example of this tax not working.”
“On the one hand, I have Perla’s Mexican Cuisine, and I see a lot of ads on the Downtown Santa Ana page,” Padilla said. “On the other hand, I’m an accountant, in a professional business (in another part of the area) and have never advertised, not once.”
The “whole idea” of revamping the city center – Mayor Vicente Sarmiento said ahead of the vote “is not always a good thing because that creates displacement”.
“There are businesses that have been around for generations, legacy businesses, and are now being replaced by other businesses. It’s a challenge that changes the identity and culture of any inner city.”
Things have changed in Santa Ana, even beyond a pace that downtown groups can apparently keep up with.
“Some … businesses say they never knew about us — and that’s probably true,” Spencer told the community development commissioner in October. “Anyone who came here pre-COVID, in the last two years or whatever, they probably don’t know who we are.”
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