San José is a diverse city with unique neighborhoods like Little Saigon, East San José, Japantown, Calle Willow, Downtown reflecting the city's rich cultural identity. 

 Through the Office of Economic Development and Cultural Affairs, and with support from City Council offices and partners, the city supports the businesses in these neighborhoods by establishing strong business networks and associations, promoting each neighborhood, and providing resources to build their capacity for self-determination.    

Two business neighborhoods, the Tully Road – Eastridge and Monterey Road corridors, celebrated a major milestone towards this goal with the recent establishment of Business Improvement Districts (BIDs), the first new ones in San José in more than 15 years.  

What is a Business Improvement District?

 A BID is a special district where business owners organize and collectively invest to improve their area. This could be for services like street cleaning, private security, and marketing. These improvements can ultimately attract more visitors and increase economic opportunities for local businesses. 

Before 2024, San José had only three BIDs: Downtown, Willow Glen (Lincoln Avenue), and Japantown. Thanks to the funding provided by the BID’s, business associations in these areas have been able to mature, enabling businesses to beautify their neighborhoods and promote their businesses on their own terms.  

"Over the years, with the funds, the Willow Glen Business Association has been able to maintain sidewalk cleanliness, enhance street side planters, create new light post banners, as well as commission murals and art sculptures all along Lincoln Avenue, ” said Kendra Middendorf, Office Manager of the Willow Glen Business Association.   

More recently, the funds helped replace old, aging light strings stretching across the street with 21 brighter, more modern LED light strings, bringing more foot traffic to the Avenue during the later evening hours.   

“These funds have helped Willow Glen maintain a thriving business district, while still maintaining its small-town feel."  

In late 2024, the City Council adopted resolutions to establish BIDs and levy annual assessments for the Tully Road - Eastridge and Monterey Corridor areas. They assigned the respective business associations in each area to advise the City Council on all issues related to the improvement districts. After an outreach process where businesses could provide input, both BIDs became official on January 17, 2025.

About the Monterey and Tully Road - Eastridge Business Neighborhoods 

Monterey Road is a historic thoroughfare in San José and the southern gateway into the city’s urban core. The Monterey Corridor, from Alma Avenue to Capitol Expressway, is home to about 1,500 businesses and 11,000 jobs. It includes breweries, restaurants, retail stores, and major employers like Maxar Space Satellites, Sim's Metal, Capitol Drive-In and the businesses at The Plant shopping center. 

Not too far from Monterey is the Tully Road - Eastridge Corridor, bordered by Highway 101 and Capitol Expressway, featuring approximately 500 primarily small, immigrant-owned businesses, many of which are Vietnamese restaurants and shops. Eastridge Shopping Center and the original Chuck E. Cheese are also key anchors of this area. 

Both corridors are represented by nonprofit business associations: the Monterey Corridor Business Association (MCBA) and the Tully Road - Eastridge Business Association (TREBA). These groups work with the city and partners to advocated for their businesses in the corridor and ensure they remain safe and welcoming spaces for tenants, shoppers and visitors.  

Thanks to the leadership of these business associations and their work with city staff, the Business Improvement Districts were able to become a reality, with potential for the two businesses districts to now raise between a total of $360,000 - $549,000 annually to reinvest in their business neighborhoods. 

 "Becoming a Business Improvement District represents a significant step toward revitalizing the corridor, strengthening our small businesses, and ensuring long-term economic sustainability,” said Christina Bui, Chair of the Tully Road – Eastridge Business Association. “We’re excited to see the positive changes this will bring to our local entrepreneurs and the broader San Jose community." 

"The Monterey Corridor is a cornerstone of San José, contributing to our city's diverse economy and cultural identity,” added Jill Rodby, Chair of the Monterey Corridor Business Association. “By investing in a Business Improvement District, we can unlock the full potential of this neighborhood. The proposed BID will provide essential services including enhanced security and improved cleanliness."

What’s Next? Developing More Business Improvement Districts in San José 

With these two improvement districts in place, the City will work with the associations to administer the BIDs, with funding becoming available to the associations in spring 2025.   The City is also actively working to establish two additional improvement districts in 2025 along The Alameda and Story Road business corridors, both of whom have strong and active business associations.    The City continues to encourage residents and visitors to explore San José and shop, dine, and play locally – visit the City’s Shop Local page for a guide on more than 300 unique small businesses in 12 business neighborhoods and find your next adventure!