Davis and Sacramento are close neighbors, and some business owners have restaurants in both cities. The differences between opening a business in Sacramento versus Davis comes down to the way city staff work with applicants more than the cost of permits.

A significant difference in opening a business in Davis compared to Sacramento is in the assistance new business owners have available at each city.

Shawn Eldredge, owner of Capitol Painting and Construction, said Friday that starting a business in Davis is “a breeze” compared to working with city of Sacramento.

Some of the local business projects Eldredge has worked on include the Firestone Public House in Sacramento and the new de Vere’s Irish Pub location in Davis.

“The biggest difference is that you can call people directly in Davis,” Eldredge said. “In Sacramento, you can’t call anyone – you get 3-1-1 (automated City Services line) at best.”

Eldredge said that what Sacramento needs is a “small business liaison” to help guide business owner applicants through the maze-like process.

“We need someone we can talk to personally,” Eldredge said. “The city of Sacramento leaves it up to one’s own accord to make it happen. If you get to talk to someone, they’ll quote you rules, but they don’t help you or guide you.”

Philippe Masoud, co-owner of Crepeville and Burgers & Brew, has businesses located in both Davis and Sacramento and said it’s hard to say just what makes one city easier to open in.

“It depends what time of year, what city, what building location and what changes you’re planning to make to the location,” Masoud said.

“In my mind, it’s still easier to start a business in Davis than in Sacramento,” Masoud said, “because (the process) is more organized.

“The biggest thing is finding the right location (that is) the right size,” Masoud said. “Location and the type of business. Each project is different.”

The Sacramento Business License Department counter is only open between 12:30 p.m. and 5 p.m., Monday through Friday, and phone hours are 9 a.m. to noon.

The Davis Business License Department is available by phone and at the counter Monday through Friday, 10 a.m. to 4 p.m.

“We at the chamber have heard complaints from people who start businesses or do a major remodel or move their business in Davis,” Christi Skibbins, executive director of the Davis Chamber of Commerce said Friday.

Skibbins said owners’ complaints range from trouble working with city staff to a long and involved permit approval process.

“We don’t know if that’s because they are new business owners and don’t understand the process and so it seems overwhelming,” Skibbins said, “or if the complaints directed at the city are actually meant for the county or the state.”

Skibbins said officials at the city of Davis try to consider what businesses look for when they want to open somewhere, and then make that criteria easy to come by.

“They want a shovel-ready location, and they want a streamlined application process,” Skibbins said. “We have to meet those criteria to bring business to Davis.”

The process is not only challenging, some business owners say, it is also time-consuming.

“If you play by the rules here in Sacramento, it’s a little difficult time-wise – it isn’t fast,”
Aziz Bellarbi-Salah, owner of Aioli Bodega Espanola, said Friday. “Getting an alcohol license in Sacramento is especially hard.”

Aioli also had a location in Davis that closed in February when the lease ended.

Michael Ault, executive director of the Downtown Sacramento Partnership, said Friday that there have been some challenges in the past in working with the city on opening a business in Sacramento, but it’s getting better.

Ault said the DSP has emphasized to city staff the importance of customer service and helping people in the process of getting what they need to start a business.

“We are in a competitive environment with other cities in the region, and we need to be thinking about giving people a reason to bring their business here.” Ault said. “If we don’t make Sacramento a good place to open a business while other places do, then I think we’re missing the point.”

Ault said that the city is starting to realize that service is important, and so is making the process easier.

“We see that (the city is) making some changes to address business owners’ concerns,” Ault said.

Henry de Vere White, co-owner of de Vere’s Irish Pub, with locations in both Sacramento and Davis, said Friday that his experience with each city has been “as smooth as it could be, so far.”

“Opening a restaurant is extremely hard, period, no matter where you go,”de Vere White said. “I benefit from the fact that I’ve done it before.”

De Vere White said that, just like everything else a business owner does, there are a lot of steps in the process, and they need to be done in order – going out of sequence won’t work.

“I think the important thing is being able to communicate between architects and contractors and the city,” de Vere White said. “Do your research, and be prepared.”

n Davis, the cost of an annual business tax certificate for restaurants – which is based on a business’ prior year’s sales receipts – starts at $9.00 for the first $10,000 and $3.00 for every $10,000 after that.

In Sacramento, the base tax on the first $10,000 is $30 and then $4 for every $10,000 after.

As of the 2010 census, Sacramento has a population of more than 486,000, while Davis’ population is only 65,622 – up from 60,300 in 2000.

It’s difficult to nail down the precise number of businesses in either Sacramento or Davis, because business licenses are given for both brick-and-mortar operations as well as in-home businesses, and there is such a wide difference in startup costs for those categories of business.

The initial one-time costs of opening business in each city are similar and depend largely on the type of business being opened. Permits required for everything from federal tax stamp permit to parking permits to health and safety certifications – some permits are required statewide, others are city or region specific.

Melissa Corker is a Staff Reporter for The Sacramento Press. Follow her on Twitter @MelissaCorker.