The fee increase will help expand the association's financial base--a key component in an eight-year strategic plan that was approved by the board in 2003.

This approval and implementation also indicates the association has recovered from the problems it faced back in 2001.

During 2001 the association was on the verge of disbanding and fighting for its existence. There was an investigation, led by former association president Bob Waligore, who accused then-business manager Demetri Rizos of possible embezzlement of association funds. That same year the board elected to cancel Founder's Day, an annual street festival, due to lack of funds and volunteers. And its former president, Karen Naegeli, resigned because she disagreed with the board's philosophy.

With the association's leadership on shaky grounds, San Jose District 6 Councilman Ken Yeager stepped in because he was strongly committed to the association's survival.

"I really believe that the avenue needs a business organization," he said at the time.

His office asked the San Jose Office of Economic Development to research and report back on how the association could operate in a manner that was beneficial to merchants on the avenue.

City economic development officer Chris Coggins requested from the association's board information about its officers, bylaws and open meetings. Former board member Chris Carris said the organization provided all the requested information in September 2001. Shortly thereafter Yeager asked the board to resign.

At the time he said, "I asked them to step down, because I thought it would benefit the association to make a fresh start."

The first step on the road to recovery, after operating for 50 years, was to understand the needs of its members. The association conducted a survey in November 2001 in which members said downtown beautification, parking and special events were their top priorities. This information became part of the framework for the new board's development of a strategic plan.

"I spent a lot of time in the very beginning trying to resurrect them," said Yeager, who worked with the association to develop a new board.

Looking back on that time, Yeager said his work with the association was "gratifying."

In 2002, new board members Cara Finn, owner of The Grapevine; Cathy Adkins, owner of Willow Glen Books; and Linda Waltrip, owner of Park Place, helped breathe new life into the organization, current executive director Norma Ruiz said.

Ruiz was hired by the women to fill the business manager position that had been vacant for 1 ¹/2 years.

For Ruiz, joining the struggling association was a way to flex her talents, she said.

"The challenges were right up my alley--creating a structure and helping maintain a momentum," she said. "It was something I found exciting and it hasn't disappointed me yet."

At the same time, the San Jose Redevelopment Agency was also contracted to do a $200,000 study that would review traffic and parking problems and merchant concerns in downtown Willow Glen. Yeager said the new board's input was integral to this process.

This study opened up additional parking at Bank of America to customers, added street cleanings, lighting and trash cans.

This was just the beginning. The next step was to focus on the expansion of revenues, improving membership communication and developing a brand image for the downtown area.

"It was a very ambitious undertaking," Ruiz said. "They did an amazing job."

Yeager credits Ruiz and current board members, such as Michael Mulcahy and Marvin Bamburg, for maintaining the momentum that began three years ago.

Part of that momentum continues today through its outreach. Board members went into the downtown business' community earlier this year to explain why the association needed to increase in the business improvement district fees. The fees had not gone up in 15 years. The hike would enable the association's fee revenues to climb from $55,000 to $110,000, but the jump created opposition from Lincoln Avenue merchants on the northern end of the district between Coe Avenue and Willow Street.

For Mulcahy and Ruiz, this dissatisfaction became an opportunity to begin a dialogue with that side of the business district, a section of the downtown that is mostly businesses professionals and generates less foot traffic.

Working with members from both the northern and southern portion of the district, the board plans to develop a brand image for the entire downtown area. The association has already formed a committee to develop the concept.

With money from the business fees, cash donations and special events, the downtown will now be able to bring back Founder's Day, move forward with its strategic plan and finalize its branding image.

"We have fabulous volunteers and that's why we've gotten so far," Ruiz said. "The more people who get involved, the more successful it will be."