The Chula Vista City Council heard from the Downtown Chula Vista Property-Based Business Improvement District last week regarding its annual expenditures and budget, approving the 2026 annual report, despite public criticism from some in the business community over the district’s financial transparency and governance.
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State law requires improvement districts — property-based districts in which businesses and property owners are assessed fees to fund enhanced services within a defined area — to submit an annual report detailing their budget, boundaries and financing method.
The report showed $929,050 in total expenditures and $937,549 in total revenue for 2026, with property assessments accounting for $461,849, or 49.3%, of income.
The district spans roughly 16 blocks along Third Avenue and has operated since 2001. It is administered by the Downtown Chula Vista Association, formerly known as the Third Avenue Village Association, which took on its current name after an organizational transition in 2024. The district’s current term expires Dec. 31, and property owners are pursuing a renewal.
David Graham, the city’s director of economic development, told the council more than a third of the district’s budget funds sidewalk cleaning and maintenance, while about 20% supports events such as the Taste of Third Avenue and Dia de los Muertos.
“Simply put, it really is one of the heartbeats of our Chula Vista community,” Graham said.
District Manager Dominic LiMandri, whose firm New City America contracts with the association to manage the district, said nearly half of the association’s operating budget comes from non-assessment sources, including grants and event revenue. He said the group performs an annual financial review that is posted online, and that “we perform a financial review every single year and those are posted online.”
Several public speakers raised concerns during the meeting.
Resident Stephanie Arechiga criticized the report’s lack of detail on how funds are administered, including the contract with New City America.
Of the report’s $929,050 in total expenditures, the largest share, 35.4%, goes toward “civil sidewalks” services such as personnel costs, utilities and landscaping, followed by administration at 32.5%, event expenditures at 20.8%, district identity and placemaking at 8.1%, and grant-related expenditures at 3.2%, according to the report.
“This was a beautiful presentation with lots of pretty pictures, but it was missing a lot of key information about their financial assets and plans,” Arechiga said. “So although the report technically meets the minimum standard of the California Streets and Highway Code, I don’t think the city of Chula Vista should settle for the bare minimum.”
According to the staff report, Streets and Highways Code section 36650 is the state law provision that requires an improvement district’s owner’s association to prepare an annual report for each fiscal year in which assessments are levied and collected.
Tim Parker, co-founder of Chula Vista Brewery, alleged mismanagement of the association’s board and called for a financial audit.
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“This board has been hijacked, it’s out of control, and they have zero oversight,” he said.
Dali Parker, the other co-founder of Chula Vista Brewery, asked the council to delay approval of the report pending an independent review, requesting “corrective actions on findings, further review and ongoing accountability.”
LiMandri addressed the concerns raised, saying the association has met with Tim Parker and Dali Parker in the past to try to resolve issues and had emailed them the week before the meeting without receiving a response. He said the association has worked with Chula Vista Brewery at its annual Taste of Third Avenue event and featured the business’s beer at the June 18 World Cup watch party.
“Chula Vista Brewery, I’ve said this many times before, is very much symbolic of our downtown brand and we don’t want to see anybody feel like they are not part of our community,” LiMandri said. “So again, despite the comments tonight, I’m still open to working with Chula Vista Brewery.”
He said the association performs a financial review every year that is posted online, along with monthly profit-and-loss statements included in board and committee meeting packets dating back six years. LiMandri said the association’s 2025 financial review was still pending completion, tied to tax filings required for a county grant application.
Councilmember Jose Preciado pressed staff on the scope of the council’s authority over the report.
“Today’s action is an action to do specifically what?” Preciado said. “Are we approving their business practices? Are we approving a 990 report? What are we approving?”
City Attorney Marco Verdugo said state law requires six components in the report — boundaries, assessment budget, financing method, surplus or deficit, and other funding contributions — and that the council could approve the report as submitted or propose changes.
Graham and LiMandri said the council’s action Tuesday was limited to confirming the report met state requirements and did not extend to auditing the association’s finances or evaluating its board structure.
Preciado said he hoped the discussion would prompt further examination of the association’s governance as its renewal process moves forward.
“I’m hoping today begins an examination by all of you involved in this organization, including your board of directors, so that we can look forward to seeing whatever succession organization comes forward,” Preciado said.
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