Board renews county Tourism Business Improvement District; staff asked to develop 1994 management plan

The San Luis Obispo County Board of Supervisors on May 19 held the annual assessment renewal hearing for the county Tourism Business Improvement District (CBID) and voted to renew the district after staff reported protests totaled approximately 0.3115% of assessment revenue — well below the 50% threshold required to halt renewal.

Tessa Cornejo of the Executive Office explained the CBID’s structure under the Parking and Business Improvement Area law of 1989: a 2% assessment on occupied lodging rents, with 1% managed by the Highway 1 Tourism Alliance (H1TA) for district‑wide marketing and 1% distributed back to local fund areas for local marketing, events and beautification grants. Staff noted roughly 1,488 lodging businesses fall in the district and outlined grant examples that have included signage, trailhead interpretive displays and community beautification projects.

Public testimony included lodging operators and coastal business representatives who urged continued marketing and local support. A Pier Avenue property owner said her short‑term rental community feels poorly represented and formally registered a protest; she asked for additional advocacy and local consideration.

After discussion, board members voted to renew the CBID. Several supervisors emphasized policy concerns — including governance of local fund area boards, grant transparency and how dollars are split between marketing and community investments — and directed staff to work with H1TA and advisory boards and return later this year with a management district plan that could convert the district under the 1994 model if the board wishes.

The board member motion directs staff to bring back policy options and accountability measures before any conversion and seeks to ensure local fund areas have clearer decision‑making and reporting mechanisms.