2012 IDA Conference & Trade ShowTrends and Hot Topics: How Cities Encourage BIDs: Trends and Challenges Saturday, September 22, 2012 10:30am – 12:00pm
Moderator Rena Leddy, Vice President Progressive Urban Management Associates (PUMA) Panelists Miranda Paster, Senior Management Analyst City Clerk, City of Los Angeles Elizabeth De Leon, Esq., Deputy Commissioner Neighborhood Development Division, City of New York James Mettham, Executive Director BID Program Management, NYC Department of Small Business Services Gina M. Caruso, AICP, Assistant Commissioner Economic Development Bureau, Department of Housing and Economic Development, City of Chicago Annie Coakley, Assistant to the Commissioner Economic Development Bureau, Department of Housing and Economic Development, City of Chicago Adjunct Panelist: Emily Yen, Doctoral Candidate, Department of Sociology, UCLA
SSA Stats SSA #49 South Shore & • 44 active SSAs; 54 created since 1977 • City contracts with 35 non-profits • 300 Appointed SSA Commissioners • 2012 Budgets = $25 million
2012 SSA Budgets by Category (44 SSAs) Total Budgets: $25 million Top 3 Programs Maintenance (25%) • Aesthetics (20%) • Safety (13%) $194k (1%) Other $1.5m (6%) Loss Collection $2.1m (9%) Admin $960k (5%) District Planning $2.8m (12%) Ads/Promos $5.9m (25%) Maintenance $2.9m (13%) Security $4.6m (20%) Aesthetics $940k (4%) Parking/Transit $836k (4%) Façade Programs $548k (2%) Business Attraction
The Bloomberg Administration and BIDs • Mayor Bloomberg recognized the impact BIDs have on the economic development of New York City and created a 5-point plan to re-energize the BID Program: • Simplify formation and expansion procedures and create one-stop, user-friendly BID Formation guide • Allow BIDs to increase budgets and boundaries • Streamline the assessment collection and distribution process • Provide grants to spearhead formation targeting neighborhoods outside Manhattan • Allow issuance of long-term debt “In these tough times, we must strengthen business improvement districts and local economic development corporations throughout the City.” -Mayor Michael Bloomberg 2002 State of the City Address
Business Improvement Districts in New York City BID created before Bloomberg administration (44) BID created under Bloomberg administration (23) Under Mayor Bloomberg, 23 new BIDs have been created, 20 of which are in boroughs outside of Manhattan. 39 BIDs have budgets under $500,000.
BID Spending by Budget Size Although BIDs vary greatly in size, they provide comparable services and pay for an executive director and office space. Smaller BIDs pay a much higher percentage to administrative costs and much lowerto service delivery. Administrative costs are a high hurdlefor smaller commercial corridors to overcome.
Creation Trends: View & Political Research: surprising role of civic pride/ engagement coupled with long-term financial interests
Recap and Forecast • Navigate BID use as an economic development tool in larger context of place-making and civic pride • mitigate resident stakeholder lawsuits with focus on enhancing place as well as economy (encourage “land use blindness”) • Reduce barriers to creating BIDs, but expect more accountability by stakeholders
Recap and Forecast • Government can/should: • first cultivate excellence and innovation • breed consistency • rely on laws and cultivate strong partnerships • Stakeholders can/should: • know and respond to their needs • establish expectations and assessment • set value and willingness to pay
Recap and Forecast • Need for smarter collaborations and partnerships • inter-department, inter-governmental, and public/private partnerships • BID collaborations, BID Consortiums • Need for enhanced localized and industry-wide best practices • builds predictability locally, nationally and internationally • more affordable oversight with “off the shelf” policies/procedures and assessment tools