Roosevelt Avenue: Contested Terrain, Neighborhood Center, or Border?
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"What is a BID?"
BASIC FACTS ABOUT A BID
•Business Improvement District
•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
•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?
•1960’s/1970’s
•In response to limited public resources and deteriorating commercial districts.
•Legislation permitting property owners to define and self-fund similar districts
•In response to limited public resources and deteriorating commercial districts.
•Legislation permitting property owners to define and self-fund similar districts
• Sanitation & Maintenance
•Public safety/hospitality
•Business development
•Marketing
•Capital improvements
•Landscaping
•Community service
•Public safety/hospitality
•Business development
•Marketing
•Capital improvements
•Landscaping
•Community service
What is the BID assessment?
•A fee that each property owner pays to support BID operations
•The sum of these fees comprise the annual operating expense of the BID
•The sum of these fees comprise the annual operating expense of the BID
How are BID programs/services financed?
•Benefitting property owners in the area pay the assessment to NYC and then the funds are distributed to BIDs and then services are delivered
•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
•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?
•Formulas are based on property size and/or value in the area
•BID fees vary depending on the location
•BID fees vary depending on the location
How is the BID different from a merchant association?
BID: -steady and reliable source of income
-all property owners must pay assessment fee
MA:-unreliable source of funding because contributions are voluntary
-does not require 100% participation by property owners
-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 increases and improves the services that the city provides
•BID areas still benefit from the city services
•BID areas still benefit from the city services
Who oversees the BID?
•governed by a Board of Directors that is elected by the members of the district
What are the Board of Directors’ responsibilities?
•Hires management that administers the BID daily
•Fiduciary responsibility
•Divided into classes; members vote for directors in their respective class
•Public officials are de facto members
•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?
•Property crimes, thefts, and auto thefts are decreased
•Attract new costumers
•Keep costumers in the area for longer (leading to more purchases)
•Attract new costumers
•Keep costumers in the area for longer (leading to more purchases)
Can BID formation be started independently and spontaneously?
•No. First and foremost, a group/individual must contact Small Business Services (SBS) before proceeding
•The entire BID formation process must be done with the assistance and partnership of SBS
•The entire BID formation process must be done with the assistance and partnership of SBS
What are the phases of the BID formation?
•Phase 1: Planning
-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
-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?
• Service delivery
-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.
-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?
•Service-driven budget estimate
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
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?
•9-12 months for the legal process to go through; 2 years in total
Who are the stakeholders that determine whether the BID is formed?
•Property owners
•Business owners
•Residents
•Business owners
•Residents
How does the BID impact the surrounding area?
•There is a tendency for “spillover”. Consequences of the creation of the BID location, such as reduced crime and increased property values, can extend to areas outside of the particular boundary that receives the BID services.
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.
