California County Sending Collectors After Business Dues

At least 24 Nevada businesses are refusing to pay their monthly dues as part of Nevada City’s Business Improvement District.

The dues have been controversial.  Normally one pays dues to a club one joins willingly; BID members haven’t necessarily joined so much as they were told they were joining — and then charged monthly.

Businesses who fall behind — either willingly or unwillingly — are starting to receive collections notices from collection agencies.  And, since the non-payments are considered default, businesses could see their credit ratings effected.

"BID is not an ‘opt in, opt out’ situation," said Patrick Dyer, chairman of the BID. The potential for tarnished credit "is the absolute hammer we have," Dyer said.

It’s unclear what will happen next. Dyer has said in the past that BID board members would not be able to discuss changing the fee structure – a sore spot in the dispute – until a March meeting. Even if the fee structure were changed, it would not go into effect until 2008, Dyer has said.

The BID was established through a city ordinance that was voted into place by a slim majority just more than a year ago. City officials renewed the ordinance in November, and Shea and dissidents filed an appeal Dec. 1.

The city has yet to answer.