During a recent city council meeting, members unanimously approved a motion related to the Salinas United Business Association (SUBA) and its fiscal year 2024-2025 annual assessment. The meeting highlighted significant challenges facing local businesses, particularly in the East Salinas area, as presented by SUBA's Executive Director, Alejandro Chavez.

Chavez reported a concerning trend of increasing vacancies and declining sales among businesses in the area, with many owners indicating they are either closing or selling their establishments. He noted that businesses are experiencing a drastic drop in sales, reporting only 50% of expected revenue compared to previous years. This downturn is attributed to a shift in the customer base, with seasonal workers replacing year-round residents, leading to reduced purchasing power.

In response to these challenges, SUBA has initiated various outreach efforts, including workshops and marketing campaigns, to support local businesses. However, financial sustainability remains a pressing issue, with assessment collections dropping significantly from $70,819 in 2018-2019 to just $42,448 in the most recent fiscal year. Chavez emphasized the need for innovative marketing strategies to attract new customers, particularly through tourism and digital platforms.

The council also discussed the rising cost of rent as a contributing factor to business struggles, with some rents increasing from $5,500 to $6,800 in certain shopping centers. Efforts are being made to negotiate with landlords to provide more flexible leasing options for struggling businesses.

The council is set to hold a public hearing on September 24, 2024, to further discuss the annual assessment levy and explore potential solutions to support the local business community.