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Change in policy for Coastal Business Improvement District, determining how funds are used

By Valentina Saldaña Aug 3, 2026 | 11:42 PM

The Coastal Business Improvement District is a tourism marketing district covering San Simeon, Ragged Point, Cambria, Cayucos, Los Osos, Baywood Park, Edna Valley, Avila Beach, Oceano, and Nipomo and collects a 2% assessment

Through anybody whos visiting and staying overnight,” said Dawn Ortiz-Legg, District 3 supervisor. “Its a bed tax. We have our tot and then all cities also have additional assessments this is what was referred to as an additional assessment.

That assessment can bring in from $1.5 to $2 million dollars a year according to Ortiz-Legg

Highway 1 Alliance was created about 16 years ago to aid that.

And the reason for its formation was all the hoteliers got together and wanted representation and marketing to help put those areas on the map to guests and travelers coming to the area, said Aaron Graves, Highway 1 Alliance chairman.

The Board of Supervisors was looking for standards of the process such as filling board vacancies in some areas and strengthening the community impact. So, changes are being made.

Were looking to take it from an 89 district into a 94 district and theres a lot of subtle differences in there but one of the greatest ones is it creates greater efficiency as a 94 district, Graves said.

One of the changes would be to the governing body.

Changing from an advisory board appointed by the county to a non-profit corporation selected and organized by stakeholders with approval by the county to adopt a management district plan, the local fund committees would recommend expenditures to the non-profit who has the ultimate approval.

While a big chunk of those funds goes toward marketing it can also be used for infrastructure and beautification projects.

Whether its more garbage or you know paving the bob Jones trail or something like that theyve been open to all those suggestions which is really great, Ortiz-Legg said.

Since it was established in 2009, the Coastal Business Improvement District has invested nearly $580,000 in projects from CBID funds.

Some of those include the Avila Beach pier renovations, Cayucos Veterans Hall restoration, and public bathrooms for the Cambria skate park.

Highway 1 Alliance now needs to create those changes and go before the board a couple more times before it’s approved to move forward.