Business Improvement Districts Arthur C. Nelson, Ph.D., FAICP Presidential Professor & Director Metropolitan Research Center University of Utah

BIDs – Making the Case Purposes of BIDs Purposes of BIDs Understanding BIDs Understanding BIDs Developing Proposals Developing Proposals Business Response Business Response Identifying Impact Identifying Impact

Why BIDs? Market erosion. Market erosion. Competition from suburbs. Competition from suburbs. Specialized needs. Specialized needs. Local government fiscal stress. Local government fiscal stress. Perhaps some business desperation. Perhaps some business desperation. Public sector tools can be leveraged for private benefit. Public sector tools can be leveraged for private benefit.

BID Priorities Safe & Clean Safe & Clean Safety from crime Safety from crime Clean streets, sidewalks, buildings Clean streets, sidewalks, buildings Enhanced physical settings Enhanced physical settings Street-scaping Street-scaping Traffic planning (Atlanta LCCs) Traffic planning (Atlanta LCCs) Promotions Promotions Lobbying Lobbying

Who Pays? Assessments on benefiting properties (reviewed later). Assessments on benefiting properties (reviewed later). Often some local government matching. Often some local government matching. Potential for “diversion” of funds. Potential for “diversion” of funds. Can leverage other private, nonprofit funds. Can leverage other private, nonprofit funds. Occasionally able to leverage into “enterprise zone” funds. Occasionally able to leverage into “enterprise zone” funds.

BIDs as an Investment More “foot traffic”, longer stays, higher spending. More “foot traffic”, longer stays, higher spending. Create a marketing “Buzz”. Create a marketing “Buzz”. Diversity of downtown use – retail, leisure, office. Diversity of downtown use – retail, leisure, office. Equitable funding mechanism with the private sector having a major input into the partnership delivery. Equitable funding mechanism with the private sector having a major input into the partnership delivery.

Partnership Elements Public Sector Support Public Sector Support Local government endorsement crucial Local government endorsement crucial Capital and revenue commitment Capital and revenue commitment Service agreement/baseline delivery Service agreement/baseline delivery Private Sector Support Private Sector Support Approval and involvement Approval and involvement Service charge reduction Service charge reduction

Business Plan Clear, succinct objectives and strategy. Clear, succinct objectives and strategy. Projects and services defined. Projects and services defined. Boundaries (assessment areas) clearly delineated. Boundaries (assessment areas) clearly delineated. Management structure clear. Management structure clear. Other/matching revenue sources identified. Other/matching revenue sources identified. Proposed tax/assessment levy rationale and mechanics known. Proposed tax/assessment levy rationale and mechanics known. Evaluation scheme presented Evaluation scheme presented Face-to-face engagement Face-to-face engagement

Governance Board of Directors Board of Directors Often appointed by local government Often appointed by local government Sometimes elected Sometimes elected By-laws By-laws Planning/budgeting process Planning/budgeting process Annual Annual Reporting Reporting Annual report/assessment Annual report/assessment Sunsetting Sunsetting

Bottom Line Usually more effective for business than without them. Usually more effective for business than without them. Can result in strong political force that supports elected officials – or threatens them. Can result in strong political force that supports elected officials – or threatens them. Creates identity for the area, often leading to incremental new investment. Creates identity for the area, often leading to incremental new investment.