AGENDA TITLE:
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Adopt a Resolution Consenting to the County of San Joaquin’s Establishment of the Lodi Winery Business Improvement District (LWBID), and Inclusion of the City of Lodi’s Jurisdictional Boundaries in the Established LWBID (ED)
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MEETING DATE:
November 5, 2025
PREPARED BY:
Luis Aguilar, Economic Development Director
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RECOMMENDED ACTION:
Adopt a resolution consenting to the County of San Joaquin’s establishment of the Lodi Winery Business Improvement District (LWBID), and inclusion of the City of Lodi’s jurisdictional boundaries in the established LWBID.
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BACKGROUND INFORMATION:
The Lodi Winegrape Commission, wine tasting facility owners, and representatives from the County met to consider the formation of the Lodi Winery Business Improvement District (LWBID). The County Board of Supervisors (“Board”) accepted the petitions in support of the formation of the LWBID and adopted R-25-138, a Resolution of Intention to establish the LWBID on September 9, 2025, as shown in Attachment 1.
The LWBID is a benefit assessment district proposed to establish a revenue source to help fund marketing and brand awareness and business improvement and community engagement promotions for assessed wineries. This approach has been used successfully in other wine destinations throughout the state to increase assessed business sales and revenue. The proposed LWBID orignally proposed to include all wineries, existing and in the future, within the boundaries of the Lodi AVA, which generally includes areas within the Counties of Sacramento and San Joaquin and the Cities of Elk Grove, Galt and Lodi.
Winery business owners decided to pursue formation of the LWBID in order to establish a revenue source devoted to promoting wineries in the Lodi AVA. If established, the LWBID would generate approximately $575,000 on an annual basis for promotion of wineries specific to the LWBID to increase winery sales revenue.
Wine BUSINESS Improvement Districts
Wine Business Improvement Districts (WBIDs) are an evolution of the traditional Business Improvement District (BID). BIDs utilize the efficiencies of private sector operation in the market-based promotion of business districts. These special assessment districts allow assessed business owners to organize their efforts to increase sales and promotional efforts. Business owners within the BID fund the BID, and those funds are used to provide services that are desired by and benefit the assessed businesses within the BID.
BID benefits:
• Are customized to fit the needs of each district.
• Allow for a wide range of services, including infrastructure improvements, marketing of the district, business promotion, and sales lead generation.
• Are designed, created, and governed by those who will pay the assessment.
• Provide a stable funding source for business promotion.
• Funds cannot be diverted for other government programs.
In California, BIDs are primarily formed pursuant to the Property and Business Improvement District Law of 1994 (“94 Law”). This law allows for the creation of special benefit assessment districts to raise funds within a specific geographic area. The key difference between BIDs and other special benefit assessment districts is that funds raised are managed by the private non-profit corporation governing the BID.
MANAGEMENT DISTRICT PLAN
The LWBID will be governed by a Management District Plan (the initial proposed version is included as shown in Attachment 2), which provides the service plan and budget for the District.
The current version of the Management District Plan includes an annual assessment rate of 1.5% of gross direct to consumer sales revenue. Based on the benefit received, assessments will not be collected on purchases made outside of the state of California or purchases made pursuant to event contracts executed prior to January 1, 2026. Revenue generated from the LWBID is intended only to provide programs and services for assessed winery businesses. Sales made outside of the state of California are not subject to assessment due to a lack of benefit. Assessment dollars may be spent outside of California to elevate the reputation of the Lodi AVA as a premier winery destination with the desired outcome of increased in-person visitation to winery businesses paying the assessment.
As currently written, the proposed LWBID will have a five-year term, beginning January 1, 2026, or as soon as possible thereafter, and ending five years from its start date. The assessment will be implemented beginning January 1, 2026. Once per year, beginning on the anniversary of LWBID formation, there is a thirty-day period in which business owners paying 50% or more of the assessment may protest and begin proceedings to terminate the LWBID.
A third-party collection agency will be responsible for collecting the assessment on a quarterly basis from each assessed business. The third-party collection agency shall forward the assessments to the Owners’ Association, which will have the responsibility of managing LWBID programs as provided in the Management District Plan. The third-party collection agency shall be paid a fee equal to up to 2% of the amount of assessment collected to cover its costs of collection and administration.
Reduced Boundaries of the LWBID and Revised Management Plan
Winery businesses and the Lodi Winegrape Commission have expressed their intent to request that the County Board adopt a revised Management District Plan at the final hearing on November 18, 2025. Pursuant to the 94 Law, the lead jurisdiction has the authority to reduce the boundaries of a district at the close of the final public hearing, so the Board may adopt the requested revisions.
If approved by the Board, the proposed revision would reduce the LWBID boundaries to include only the County of San Joaquin and the City of Lodi. However, at this time, the City has not received any confirmation or documentation from the County indicating that it plans to adopt reduced boundaries for the LWBID, nor has the City received a revised Management District Plan describing the reduced boundaries, for Council consideration with this item.
Request for Council Consent
Because the LWBID will include the City of Lodi, consent must be granted to the County Board by the City Council of Lodi in order for the City of Lodi jurisdictional boundaries to be included in the creation, operation and future renewals of the LWBID. The County has requested the inclusion of the City of Lodi in the LWBID by Resolution R-25-139, as shown in Attachment 3.
The City Council could choose not to adopt the Resolution Granting Consent. If the City Council does not provide consent to the County for inclusion of its jurisdictional boundaries to be incorporated in the proposed LWBID, winery businesses in the City of Lodi will be excluded from the District and will not be subject to the assessment and will be excluded from District-funded services or benefits.
STRATEGIC VISION:
1A. Downtown: Community and Economic Development.
FISCAL IMPACT:
No immediate impact. The LWBID programs are intended to increase visitation to wineries in the boundaries, including the City of Lodi, there may be an increase in sales tax collections.
FUNDING AVAILABLE:
Not applicable.