Municipal Business Improvement Districts (BIDs)
Business Improvement District (BID) is the generic term for a variety of local-level municipal tax districts, named differently in many states and cities. BIDs range in size from a few blocks to many miles of streetscape and can be found in areas as diverse as Times Square and small resort towns. The common characteristic is that BIDs apply a tax surcharge on property in the district pursuant to state and/or municipal enabling legislation. The tax proceeds are returned to the district for use by a locally-guided commission of stakeholders, generally local businesspersons.
BIDs are generally governed by a nonprofit board, a public commission, or a hybrid public-private partnership. Projects undertaken by BIDs include marketing, streetscape improvements (sidewalk cleaning, landscaping, street furniture, etc), transit enhancements, façade rebates and events management. Sidewalks and pedestrian amenities are central to most BIDs' action plans. Two major categories of streetscape activities are capital projects and maintenance projects. The day-to-day upkeep of an area may be just as important as the initial capital improvements, requiring a substantial investment for sidewalk cleaning, extra garbage pick-ups, snow removal, graffiti removal and maintenance of street vegetation.
In a time of ever-tightening municipal budgets, BIDs are an opportunity to allow communities to self-select to increase taxes, with the proceeds returning to the area where the taxes are generated. The long-term effect of improved economic development is a boon to municipal sales tax coffers, as well as to local businesses--a win-win situation for all. The locally-determined allocation of resources offers the opportunity to create unique destinations, which are generally more attractive to visitors. The wide range of innovative investments increases the number of models for urban redevelopment that can be used by other BIDs or by city planners generally. There are few downsides to BIDs, although there are time costs for establishing enabling legislation for the concept generally and for creating and training each new BID's board/commission members and staff.
Most BIDs promote walkable, pedestrian-oriented spaces, and many provide transit enhancements. Designing attractive, inviting spaces for people rather than for vehicle storage can lead to a reduction in emissions. Landscaping features may be added for their aesthetic and economic development aspects, but will usually have a positive effect on stormwater management as an ancillary benefit, whether BID managers are aware of that benefit or not. A few BIDs are beginning to take "greening" their district to mean more than tree cover and to promote overall sustainable policies as a way of defining their district.
Any party with an interest in an initiative.
