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Nevada City business owners who refuse to pay fees to the Business Improvement District will not see a negative impact on their credit reports for now, but it could be an option down the road, the owner of a local collection agency said recently.
"People are so sensitive about their credit. We don't take that lightly," said Sheila Baker, owner of Retailers' Credit Association of Grass Valley Inc.
The collection agency was contracted by the Business Improvement District in October after 22 businesses refused to pay BID's annual fees. Since receiving collection notices, one business owner has paid the past-due fees and eight have filed formal written disputes.
City Council members created the BID by ordinance in late 2005 to fund improvements to the historic downtown that would attract more shoppers. In November 2006, council members renewed the BID after a 30-day protest period. In December, dissident members filed a protest with the city, which the city has not answered.
BID operates on funds from the city and fees collected from business owners; all people who operate a business within the district must belong to BID and must pay the fees.
Since its beginning, BID has struck a nerve among those who say the fee structure is unfair and is being ill-spent on projects like city benches and flower pots. Dissident members also question the legality of the procedures used to implement BID in the first place.
An Oct. 5 letter to one of those opposed to the BID, U.S. Hotel owner Katie Bennett, reads:
"You are hereby notified that a credit report reflecting on your credit record may be submitted to a credit reporting agency if you fail to fulfill the terms of your credit obligations."
Because of the controversy surrounding the BID, Retail Credit officials decided not to make credit reports regarding the past-due fees at this time, Baker said.
She is working with people to adjust their payment plans, but so far, Baker said, no one has come forward to make such arrangements.
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To contact Staff Writer Laura Brown, e-mail laurab@theunion.com or call 477-4231.
"People are so sensitive about their credit. We don't take that lightly," said Sheila Baker, owner of Retailers' Credit Association of Grass Valley Inc.
The collection agency was contracted by the Business Improvement District in October after 22 businesses refused to pay BID's annual fees. Since receiving collection notices, one business owner has paid the past-due fees and eight have filed formal written disputes.
City Council members created the BID by ordinance in late 2005 to fund improvements to the historic downtown that would attract more shoppers. In November 2006, council members renewed the BID after a 30-day protest period. In December, dissident members filed a protest with the city, which the city has not answered.
BID operates on funds from the city and fees collected from business owners; all people who operate a business within the district must belong to BID and must pay the fees.
Since its beginning, BID has struck a nerve among those who say the fee structure is unfair and is being ill-spent on projects like city benches and flower pots. Dissident members also question the legality of the procedures used to implement BID in the first place.
An Oct. 5 letter to one of those opposed to the BID, U.S. Hotel owner Katie Bennett, reads:
"You are hereby notified that a credit report reflecting on your credit record may be submitted to a credit reporting agency if you fail to fulfill the terms of your credit obligations."
Because of the controversy surrounding the BID, Retail Credit officials decided not to make credit reports regarding the past-due fees at this time, Baker said.
She is working with people to adjust their payment plans, but so far, Baker said, no one has come forward to make such arrangements.
ooo
To contact Staff Writer Laura Brown, e-mail laurab@theunion.com or call 477-4231.
