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Two more Adams merchants step aside

July 20, 2004

Josh Kleinbaum

Two more members of the Adams Square Merchants Assn.'s board of

directors stepped down Monday, joining President John Cianfrini and

continuing the ominous beginning for the area's new business

improvement district.

Vice President Steve Brown and Treasurer Al Valenzuela resigned

from the board, saying the City Council and city staff misled them

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during the creation and implementation of the business improvement

district. Cianfrini, the association's founder, resigned last week.

"You could say we're collectively protesting," Brown said. "I just

felt that we weren't treated with respect."

The City Council is expected to vote on creating a business

improvement district at tonight's City Council meeting, and the

merchants association has been the driving force behind the district.

The district will require the 50 merchants in Adams Square to pay an

annual assessment to the city. The assessment money would be given to

a merchant organization to use to promote the area with advertising

and public events.

But merchants' association members believe the council twice

misled them.

First, the council told the merchants association that the city

would match any assessment fees collected up to $15,000. The

merchants set the fee at $300 to maximize the matching funds. But

some merchants who are not members of the association led a

last-minute protest that could have thwarted the district's creation.

The council lowered the fee to $120 to placate those merchants and

promised to fund the full $15,000.

"The city does a complete flip on us," Valenzuela said. "What it

does, it basically puts egg on our face. It's pretty embarrassing for

the merchants' association. We look like we're out for blood."

Then, council members insisted on an election to determine the

district's advisory board. City officials had told association

members that the association's board would serve as the advisory

board, at least on an interim basis, said Director of Development

Services Jeanne Armstrong.

"We've been in the thick of this thing, we set the thing up, and

now all of the sudden we're not going to be elected," Brown said. "It

doesn't make sense to me."

Now, with the board decimated, Adams Square must start its

business improvement district with little experience. Bob Gallegos,

who owns Dr. Bob's Auto Repair and who led the group of merchants

protesting the $300 fee, said several merchants have already told him

they want to be on the board. He said he expects to run too.

"I don't want to say anything bad against the [old] board,"

Gallegos said. "They thought everything would run exactly the way

they had been running it before. Now they've involved everyone else,

so things are going to be a little different."

Councilman Dave Weaver said the council made a mistake by

insisting on elections.

"I'm very, very disappointed to hear that those guys resigned,

because they've done so much of the work to get it where it is,"

Weaver said. "I believe the whole board ought to still be on. Now

it's just going to implode."

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