BASIC FACTS ABOUT A BID
What exactly is a BID?•Public/private partnership in which property and business owners elect to make a collective contribution to the maintenance, development and promotion of their commercial district.
•They all contribute a fee to collectively benefit from the improvements of the area
When did BIDs movement first come into existence?
•In response to limited public resources and deteriorating commercial districts.
•Legislation permitting property owners to define and self-fund similar districts
What type of services/improvements does it include?
•Public safety/hospitality
•Business development
•Marketing
•Capital improvements
•Landscaping
•Community service
What is the BID assessment?
•The sum of these fees comprise the annual operating expense of the BID
How are BID programs/services financed?
•Different properties pay different assessments
oProperty types include residential, vacant, industrial, and federal owned properties
oDepending on the property type, pay commercial rate or a reduced assessment, or are exempt from paying
How are assessment fees calculated?
•BID fees vary depending on the location
How is the BID different from a merchant association?
-all property owners must pay assessment fee
MA:-unreliable source of funding because contributions are voluntary
-does not require 100% participation by property owners
What does the BID provide that city services do not? Do BID areas lose the city services benefits?
•BID areas still benefit from the city services
Who oversees the BID?
What are the Board of Directors’ responsibilities?
•Fiduciary responsibility
•Divided into classes; members vote for directors in their respective class
•Public officials are de facto members
How do business owners particularly benefit from the BID?
•Attract new costumers
•Keep costumers in the area for longer (leading to more purchases)
Can BID formation be started independently and spontaneously?
•The entire BID formation process must be done with the assistance and partnership of SBS
What are the phases of the BID formation?
-Contact SBS, formation, assessing needs, draft plans
•Phase 2: Outreach
oInformational mailings, public meetings, document support gathering
•Phase 3: Legislative Authorization
-SBS takes over and sends the BID proposal ad through a series of various legislative branches, and it finally is authorized
How is the success of the BID determined?
-Sanitation (garbage pickup)
-Hospitality assistance (public safety officers)
-Fair business practices (decrease in illegal peddling)
•Commercial occupancy rate
-Consequent reduction in vacancy
•BID renewal
-A majority of property owners must agree to dissolve a BID after it is created. However, every BID has remained in existence or has expanded.
How are the budget and fees determined?
oDetermine which particular services are needed, and how much they cost
•Assessment formula
-Compute what each property owner should pay, an amount that is proportional to the benefit they receive by the BID on their property
How long does the BID formation process take, on average?
Who are the stakeholders that determine whether the BID is formed?
•Business owners
•Residents
How does the BID impact the surrounding area?
Works Cited:
1. Newhouse, Mark, George Glatter, Sien Mittiga, and Lily Kam. “Starting a Business Improvement District a Step-by-Step Guide.”Http://www.nyc.gov/html/sbs/downloads/pdf/bid_guide_complete.pdf. N.p., n.d. Web. <http://www.nyc.gov/html/sbs/downloads/pdf/bid_guide_complete.pdf>.
2. “THE FAQs.” Park Slope 7th Avenue BID. <http://www.parkslope7avebid.com/?page_id=19>.
3. “Welcome to the Jackson Heights-Corona Business Improvement District.”Jhcoronabid.org. N.p., 2013. Web. <http://jhcoronabid.org/faqs/>.
4. “Smart Growth / Smart Energy Toolkit – Business Improvement Districts.” Smart Growth / Smart Energy Toolkit – Business Improvement Districts. N.p., n.d. Web. <http://www.mass.gov/envir/smart_growth_toolkit/pages/mod-bid.html>.
5. mass.gov. <http://www.mass.gov/envir/smart_growth_toolkit/pages/mod-bid.html>.
6. New York City Global Partners. Best Practice: Business Improvement Districts.