Taxed Out

Main Street Pilates, formerly located in Oldtown Salinas at 25 East Gabilan St., pictured, relocated after rent increased.

In Oldtown Salinas these days, sidewalks look clean, trees are manicured, and a police officer can be seen looping the business area. A streetscape fairy didn’t bring those changes: Property owners did when they voted in July 2015 to tax themselves each year to fund basic upkeep of their storefronts.

The changes have occurred over the past few months, and some business owners say the improvements have made the area safer and helped bring more people downtown, which is good for business.

However, Corinne White, owner of Main Street Pilates, says the tax forced her business out of downtown after her landlords increased her rent.

White rented the storefront, so she didn’t get to vote on the tax – a power that was reserved for property owners only, which she says left her disenfranchised. White has since moved her business from the corner of Gabilan and Monterey streets to Toro Park.

Property owner Patrick Corrigan says White’s departure was unrelated to the tax, but he opposed it and voted against it last year.

After property owners, including the city of Salinas, voted to create the Downtown Salinas Community Benefit District, the Oldtown Salinas Association was dissolved. The city has also rebranded the neighborhood, replacing the name Oldtown with Salinas City Center.

Corrigan says his building was incorrectly assessed and he was overcharged. Property owners’ taxes are calculated based on the benefits a storefront receives from the beautification plans, says City Attorney Chris Callihan.

(1) comment

Trish Sullivan

This sure sucks for downtown! NOT good to be losing our small businesses. What can we do?!

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