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Business Improvement Districts

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)

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Business Improvement Districts

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  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. 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) Names for BIDs

  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

  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

  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

  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 $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

  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. Maintenance

  21. Security

  22. Marketing/Hospitality

  23. Business Recruitment

  24. Public Space Management

  25. Accountability

  26. Accountability and Freedom

  27. Accountability and Freedom

  28. Answer: Reauthorization

  29. Answer: Wide Accountability of board members

  30. Answer: Special interest groups represented on governing boards

  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

  34. Answer: Performance Reporting

  35. Answer: Performance Reporting

  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 612-275-4437 CarolJeanBecker@gmail.com

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