Business Improvement Districts Dr. Carol Becker

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

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

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)

How many BIDs are there?

Answer: 1,001

Business Improvement Districts in the United States

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

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

Creation accelerating

Created in response to economic stress

Budgets

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

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%

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

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%

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 $100.00 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

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

What do BIDs do?

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

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

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

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

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

Accountability

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

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%

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%

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%

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%  

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.

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.

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

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%

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%

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

Contact Carol Becker 612-275-4437 CarolJeanBecker@gmail.com