San Jose Council Gives Nod to Proposal for Willow Glen Business District by Denis C. Theriault, Mercury News, 10/28/2008

Blessing an issue that had flared across some Willow Glen e-mail lists in recent months, the San Jose City Council on Tuesday approved a plan for a special district along Lincoln Avenue that could one day serve as a model for neighborhoods across the city.

The council's unanimous decision clears the way for a Dec. 16 public meeting where property owners along the popular shopping strip will vote on taxing themselves to create what would be known as the Willow Glen Community Benefit and Improvement District.

The goal of the district is to raise money for cleaner sidewalks and other improvements, as well as manage parking and pay for promotion of neighborhood events.

But Allen Rice, who lives in Willow Glen but doesn't own property along Lincoln Avenue, criticized Tuesday's decision, saying the voting procedure appears too tilted "to the powers that be on the street." By his reckoning, most of the property on Lincoln is owned by a small group of landlords who would have a disproportionate share of the vote.

"I'm not quite sure this is the right way to do it. It's compelling people to pay a tax they may not want to pay," he said.

Councilman Pierluigi Oliverio, whose district includes Willow Glen, praised the council's decision. These districts "have been done all over the country," he said, noting all the "extra amenities" they pay for.

He also defended the process, saying property owners "should be able to vote in proportion” to their holdings.

"Even the largest property owners only own 9 or 10 percent," he said. "It's still a very diverse group."

That diverse group includes the city. Because San Jose owns property on the strip — which stretches roughly from Lester Avenue to Minnesota Avenue with spurs on either side of Willow Avenue— the council will be among the owners submitting a ballot. In the city's case, the new assessment would amount to $4,700 a year.

The district has a proposed $196,738 budget for its first year, based on potential assessments on 103 parcels. The assessments would appear on county tax bills starting next year.

Ballots are scheduled to be mailed at the end of the month and must be submitted to the city clerk's office before the end of the public hearing in December.

Oliverio said the "deep benefits" the district would provide should outweigh any skepticism about the fees. Any projects funded through the district would be subject to the city's usual planning rules. And if it works in Willow Glen, he hopes the idea could spread to other areas, including West San Carlos Street, Story Road or The Alameda.

The push to create the district was led in part by former mayoral candidate Michael Mulcahy, the head of the Willow Glen Business Association.

In other news, council members voted 9-1 to raise rates for cab drivers who work out of Mineta San Jose International Airport. In addition to establishing a minimum fare of $15 for trips that start at the airport, the council also streamlined the process for future increases, delegating its authority to do so to the city's transportation director.

"I don't think it should take an act of the council every time to make minor adjustments," Councilman Pete Constant said.

There was some concern among council members Tuesday that the increase had not gone before the city's volunteer airport commission. But two motions to let the commission weigh in failed, as the majority said time is of the essence for drivers buffeted by rising fuel prices and a diminishing number of air travelers.

Oliverio cast the dissenting vote, noting that gas prices have dropped dramatically since the $15 minimum was first proposed over the summer.

Another item on Tuesday's agenda, a proposal to grant so-called "living wage" increases to hundreds of employees at the airport, was under discussion as of press time. Members of the council, including Mayor Chuck Reed, said earlier this week that they expected it to pass after working on a compromise with representatives from Southwest, the busiest carrier at the airport, to exempt airline employees who already have union contract