Business improvement district

From Wikipedia, the free encyclopedia

A Business Improvement District (BID) is a public/private sector partnership in which property and business owners of a defined area elect to make a collective contribution to the maintenance, development and marketing/promotion of their commercial district. It is, in some ways, similar to a residential community association, but an appropriate analogy would be that of a suburban shopping mall, from which the idea for BIDs is, itself, modelled. Malls are generally single properties managed by one entity that rents out retail spaces to various tenants. Tenants pay a common maintenance fee to pay for services that enhance the appearance of the mall's common areas and provide cooperative advertising for the mall and its various stores. BIDs operate in much the same way.

BIDs are grassroots organizations, that are driven by community support and require legislative authorization by the municipality in which it resides, in order to be established.

BIDs typically provide services such as street and sidewalk maintenance, public safety officers, park and open space maintenance, marketing, capital improvements, and various development projects. The services provided by BIDs are a supplement to the services already provided by the municipality.

BIDs are funded through special assessments collected from the property owners in the defined boundaries of the district. The assessment is levied on the property owners who can, if the property lease allows, pass it on to their tenants. In New York City, the operating budgets of BIDs range from $53,000 to over $11 million. Typically, an individual property owner will pay an assessment of approximately 6% of his/her annual real estate tax charge.

BIDs are overseen by a Board of Directors that is elected by the members of the district.

BIDs first emerged in Toronto, Canada in the late 1960s and have subsequently emerged across Canada and the USA and into New Zealand, South Africa, Jamaica, Serbia, Albania, England and Wales, Germany and Ireland. BIDs, however, have numerous pseudonyms, these include Business Improvement Areas and Special Improvement Districts.

There are 55 BIDs in New York City. Toronto has 60 BIAs within its borders. In the province of Alberta, they are termed "business revitalization zones". There are 9 zones in the City of Calgary and 10 in Edmonton. The first special improvement district in New Jersey was formed in Cranford, New Jersey.

1 England and Wales
2 Criticism
3 References
4 External links

[edit] England and Wales

In England and Wales, business improvement districts were introduced in England and Wales through legislation (the Local Government Act 2003) and subsequent regulations in 2004. The Circle Initiative, a five year scheme funded by the [London Development Agency], set up the first pilot BIDs, five in London, all of which had successful ballots by March 2006. Association of Town Centre Management-coordinated pilot 'talking shops' in 22 locations in England and Wales corresponded with the development of BIDs' regulations.

The first BID to be created under this process was Kingston upon Thames. By August 2006, over 30 BIDs have emerged in town centres, city centres and industrial estates in England and Wales.

Unlike the US, BIDs in England and Wales are funded by a levy on the occupiers rather than the owners of the properties within the area. If voted in by local businesses, the BID levy is an extension to existing non-domestic business-rates.

Keswick in the English lake District Cumbria became the first rural business improvement district (BID) in the country, as a result of the ballot of the business community in September 2005. [2]

Private sector business people came forward and a company limited by guarantee was incorporated (April 2006) to deliver the business plan on which the vote was held. Keswick Business Improvement District Limited has been established with a 15 place Board of Directors, which represent a cross section of the business community within the town.

Every business rate payer of £2,900 or more, within the boundary of Keswick are members of the BID and are required by legislation to pay a 1% levy based on their business rateable value. The levy is collected by the local authority as the collection agency on behalf of the BID Company. The BID Company and the Directors are responsible for the effective delivery of the projects within the Keswick BID Business Plan.

[edit] Criticism

In the areas where BIDs have been implemented there has also been criticism of the districts. Critics argue that the BIDs provide services which should be provided by the government such as policing services. Critics also argue that there are services which should be paid for by the individual business owner such as sweeping/cleaning.^[1] Other critics believe that BIDs are too large and wield too much power and are taking away power from neighbourhood community organizations. In some neighbourhoods there are now umbrella groups made up of commercial landowners, property management firms, and condominium dwellers which aim to stop the BIDs.

BIDs have also become a powerful lobby group, lobbying government for improvements such as new sidewalks, trees, park benches and other restorations. BIDs can also lobby different levels of government for a complete facelift on their area if they feel its necessary to improve business. ^[2]. The Rideau Street BIA in Ottawa has lobbied the city for years to give the entire street a face-lift because of it's "run down" look.