He said businesses generally request creation of the districts and have the power to veto them if a majority object. But a lawyer for a tax-limit organization, representing four businesses that challenged the district fee, said he would appeal to the state Supreme Court. He said Proposition 218, which he drafted, should require approval by businesses that would have to pay a majority of the fees. Alternatively, the city could have required a vote by all residents of the district before the fee could be levied, he said. The City Council created the improvement district in Pacific Beach in 1997, one of 16 such districts in San Diego.
Fees vary according to the type of each business and the number of employees.
The revenue pays for parking facilities, street fairs and other public events, music in public places and promotion of business activities in the district.