1. Business Improvement Districts
Dr. Carol Becker

2. A Definition of BIDs
A public special taxing district that all businesses fund
A private non-profit implements or oversees the implementation of work plan (i.e. public-private partnership)
Typically does cleaning, marketing, security and other activities for a business area

3. Excludes: Purely public organizations Purely private organizations
Neighborhood Improvement Districts
Organizations funded primarily by TIF
Chambers of Commerce
Districts that only provide capital/debt service
Special districts that provide other services like water, sewer, fire, mailboxes
California Tourism Business Improvement District

4. Names for BIDs Municipal Improvement District (MID)
Local Improvement District
Economic Improvement Districts
Community Improvement Districts (CID) Special service Taxing District
Special improvement district (SID)
Local Improvement Taxing District
Municipal Service Districts
Special benefit assessment district
Downtown Improvement District
Special Business District
Public Improvement District (PID)
Economic Improvement Districts (EID)
Property-based business improvement district (PBID)
General Improvement District
Enhanced municipal service districts
Municipal Special Service Districts
Municipal management district
Community Improvement District (CID)
Self-Supported Municipal Improvement District (SSMID)
Principal Shopping District (PSD)
Business Improvement Zone (BIZ)
Special Service Area
Maintenance Assessment District
Community Benefit District (CBD)
Special Assessment Districts (SAD)
Special Community Benefit District
Residential Improvement District (RID)
Business Improvement Area (BIA)

5. How many BIDs are there?

6. Answer: 1,001

7. Business Improvement Districts in the United States

8. Terminated or Dormant BIDs
Although it was not a primary focus of this study, BIDs that were terminated or have gone dormant were noted.
50 located so far
Some terminate and later are restarted
From this very initial work, it appears that there is a less than 5% failure rate in BIDs

9. Size of City Population of city Number of BIDs 0 - 25,000 207
25, ,000
150
50, ,000 87
75, ,000 48
100, ,000
217
500, ,000,000 95
1 - 2,000,000 44
2 - 3,000,000 57
3,000,000 + 97
Total
1002

10. Creation accelerating

11. Created in response to economic stress

12. Budgets

13. Budget Size
Smallest: $2,500
Largest: $18,000,000
Median: $355,000

14. Largest Revenue Sources
What is the source of your current organizational budget revenues
Assessments:
95.9%
Member dues:
36.1%
Contracts:
41.2%
Sponsorships:
48.5%
Development fees:
21.6%
City General Revenues:
38.1%
Other:
56.2%

15. Other revenue sources Events (most mentioned) Voluntary Donations
TFCA and Lifeline Grants
Rental income & TIF funding
Revenue from operation of transportation system.
Clean Communities Grant & Recycling Trust Funds
Other levels of government and project partnerships
Farmers' Market Management
Fundraising events, promotions, misc
Contracted services
University partner

16. Basis for Assessment
What is the basis you calculate your BID assessments on in this district?
Based on assessed value for real estate taxes
55.9%
Based on sales tax
1.8%
On a square foot basis
12.2%
On a linear front footage basis
4.5%
Other (please specify)
25.7%

17. Other ways of Assessing
Combination of linear footage, building square footage, lot area, use, location
Gross receipts
Rate per $100 total assessed value plus rate per SF parcel
Business License Fees
Square foot, linear front footage and lot size
Flat fee - depends on type of business and location
Base fee plus tax per employee
Square footage plus the taxable rate and an additional flat rate is added to each parcel.
Combination of front footage and assessed value
Commercial rate on property is basis for calculation of "business levy" per $ worth of assessment.
Annual Business license
Based on a combination of assessed value and linear front footage
Combination of linear frontage which accounts for 65% of the budget and 35% based on square footage
Formula based on lot square footage and linear front footage

18. Other ways of Assessing (con’t)
SF of building, SF of land, and assessed value of building
Square footage of "visitable" retail space with a set maximum.
Based on percentage of business tax assessment receipts
Combination of various property related characteristics including parcel size, building size, amount of adjacent street frontage and a flat fee per parcel.
Based on business license fees. Generally 150% of license fee, with some flat rates, and a cap at $750
Sales tax and property tax
Both AV & linear front footage
Assessed value and square footage
Front footage, assessed land and building values.
Combination of assessed value, sq.ft., type of use, # stories, type and number of parking spaces,
Square footage of lot, taxable market value, square footage above first floor
City business tax

19. What do BIDs do?

20. Provide through contract
Maintenance
Provide with our staff
Provide through contract
Do not provide
Rubbish collection 38 69 95
Litter and graffiti removal 61 90 52
Sidewalk washing 75 87
Snow shoveling 16 41
134
Grass and tree cutting, flower 42 94 70
Streetscapes/lighting/street furniture installation 36 96 78
Directional signage 18
114

21. Security With our staff Through contracts Do not provide
Non-uniformed ambassador 9 4
176
Uniformed, unarmed ambassador 27
141
Uniformed, armed ambassadors/security personnel 1
181
Uniformed/unarmed private security personnel 7 19
162
Uniformed/armed private security personnel 10
177
Sworn police officers 2 33
158
Electronic security/ security cameras 11 18
160
Community policing program 23 17
153
Program to share crime information 63
120
Community court 3
182
Supervision of persons serving a sentence from community court 6
165

22. Marketing/Hospitality
With our staff
Through contracts
Do not provide
Street guides or ambassadors 53 28
117
Tourism kiosks 37 13
141
Maps and area information
132 27
Marketing/advertising campaigns
142 31
Festivals
121 20 58
Farmer's markets 62 19
108
Arts events 95 80
Historic tours 49 8
Holiday decorations 89 59 48

23. Business Recruitment
Which of these Business Recruitment and Retention activities do you provide with funding from the BID:
With our staff
Through contracts
Do not provide
Market research 79 44 75
Performance reporting 82 15 98
Financial incentives for new/expanding businesses 46 13
135
Business recruiting
113 11 76
Marketing
137 28 37

24. Public Space Management
Which of these Public Space services do you provide with funding from the BID:
With our staff
Through contracts
Do not provide
Sidewalk vending management 21 7
171
Management of street performances and artists 52 16
133
Code compliance 47 14
137
Management of loitering 40 28
134
Development of urban design/facade guidelines 66 24
109
Enforcement of facade or design requirements 46 15
136

25. Accountability

26. Accountability and Freedom
Does your Governing Board have the right to:
Yes No
We recommend, government
decides
Set its own level of assessment revenues?
109 28 80
Set its own budget?
167 10 42
Make personnel/hiring decisions?
195 7 12
Make choices about the bundle of services?
192 5 19
Make choices over the level of services provided? 3 21

27. Accountability and Freedom
Has government ever set a different level of funding than the one you originally requested?
Response
Government doesn't levy funding for us
14.7%
Yes
12.8% No
72.5%

28. Answer: Reauthorization
Does your organization's fee or assessment exist for a limited time, at which point government has to renew approval?
Expires
64.1%
Exists indefinitely
35.9%
Does the contract that government has with the BID organization extend indefinitely or does it require periodic renewals?
Indefinitely
31.7%
Periodic renewal by government
68.3%

29. Answer: Wide Accountability of board members
How are the members of your board elected or appointed?
Appointed by city mayor
23.0%
Appointed by city council
22.1%
Appointed by another level of government
8.9%
Selected by organization's existing governing board
37.6%
Members are elected officials from city, state or other government
8.0%
Elections held within the service district
40.4%
Recommended by BID but approved by local government
13.1%
Other (please specify)
16.9%

30. Answer: Special interest groups represented on governing boards
Are you required to have certain members of your board represent specific interests? (you must have one board member who is a renter or two board members who are business owners, etc.)
Yes
65.1% No
34.9%

31. Special Interest Groups on Governing Boards
Some examples: individuals who pay at different levels of taxation; individuals who represent different sectors, including retail, commercial, small businesses, renters, tenants; individuals from different geographic areas; individuals by sectors, including non-profit, for-profit and government sectors; and a wide range of other alternatives.

32. Answer: BID Scale
Most BIDs are sub-municipal organizations, providing direct service to a relatively small group. Because of their size, there is little to go wrong, little incentive for shenanigans and many eyes watching.

33. Answer (sort of): Performance reporting
Does your organization:
Yes No
Report performance information to a governmental organization
177 32
Publish an annual budget
186 22
Publish an annual financial report
168 38
Conduct an annual independent financial audit
169 39
Publish annual performance information
154 51
Report budget or other financial information to a governmental organization
183 25
Publish or make publicly available the pay levels of employees 95
109

34. Answer: Performance Reporting
How does your organization measure its performance?
Business Surveys
64.8%
Visitor Surveys
25.5%
Balanced Score Cards
6.1%
Focus Groups
20.9%
Data from the local government
38.3%
Data from the state government
7.1%
Data from the federal government
4.6%
Data from private organizations
23.5%
Other (please specify)
39.3%

35. Answer: Performance Reporting
What information do you present in your performance reporting?
Square feet leased or vacancy
38.7%
New construction
38.1%
Retail Sales
20.1%
Number of visitors
23.7%
Change in employment
16.0%
Population
23.2%
Number of businesses
61.9%
Crime statistics
36.6%
Number of pedestrians
15.5%
Business perceptions
55.2%
Visitor perceptions
39.7%
53.6%

36. Article coming out this summer
Public Performance & Management Review (PPMR): Special edition on Public-Private Partnerships: “Democratic Accountability and Business Improvement Districts”

37. Contact
Carol Becker