Business improvement districts in the United States

The International Downtown Association (IDA) 2011 BID census report states that all US states except Wyoming, including the District of Columbia, have at least one BID. The 2011 IDA report states that, at the time, there were 1,002 BIDs in the United States. As of 2010, North Dakota passed senate bill 2356 to appeal section 40-22.1-01 of the North Dakota Century Code to allow special tax assessment districts in the state. == Operations ==

The districts are areas within a municipality where some form of revenue generation is legally enforced to provide services for area, beyond those offered by the municipal and county services. BID formation varies on a state-by-state level, and are also referred to as neighborhood improvement districts, special improvement districts, Depending on state statute, business improvement districts can be funded a variety of ways, including through a tax assessment or mill levy or Tax Increment Financing on property tax, and then managed by a nonprofit agency. BIDs provide an array of services to keep districts clean and managed to improve mix of activities, transportation, and aesthetics of public places. Business Improvement Districts became widely noted after their success in transforming Times Square and Union Square in New York City from places abandoned and filled with crime into dynamic neighborhoods. They are based on the premise that making attractive commercial districts will attract shoppers and make an environment conducive to thriving businesses. Often, BIDs are formed as a result of property owners in a defined district who seek funding for a variety of services, including governmental services such as cleaning and maintenance, non-governmental services such as marketing and promotion or beautification, and the implementation of capital investments. Most states rule that a BID must be governed by a board of directors that are composed of a certain percentage of property owners, business owners, and residents that are in the district, as well as public officials. ==Benefits==

Crime reduction Studies have shown a reduction in crime within the district boundaries. One study found that there was a 12% reduction in robbery and an 8% total crime reduction within the boundaries of the BID in Los Angeles. There is no agreed upon standard for accountability for BID management organizations, but they are held accountable due to the limitations of what the budget can be appropriated to, making the abuse of power less likely. The small amount of stakeholders also limits the risk of corruption, with more individuals keeping watch of the activities managed by the BID Increased property values A Study of New York BIDs revealed that commercial properties within the defined areas of a business improvement district sold for 30.7 percent more than comparable properties in the same area but outside of the district boundaries. This study implies that the positive effects are exacerbated in larger BIDs, made of mostly office space, with larger budgets. ==Criticisms==

Accountability Critics of Business Improvement Districts are concerned that there are few restrictions as to what the revenues going toward the BID will fund. With the limited restrictions, property owners within the district may be required to fund services that they do not particularly want or need. In many places, BIDs are independent organizations and are not required to report extensively to their local government and stakeholders. This lack of accountability can be concerning to residents and property owners paying the additional tax. Crime spillover Critics are also concerned about the spillover of crime that may be diverted, and then concentrated outside of the BID districts, particularly in larger cities with BIDs that focus on security and crime prevention. One Person One Vote In Kessler Vs. Grand Central District Management Association, residents within the Manhattan BID argued that the election of board members were not completed fairly in accordance with the one person one vote principle. The ruling opposed the resident's claim, stating that a BID can have different voting classes because the results are disproportionate among property owners. Private control of public space Property owners and people within the district who oppose a BID may see it as an attempt to delegate control of public space to the private sector. Without government accountability (elections), it is difficult for the public to make a change in the actions that the BID managing organization controls. ==Other Improvement Districts or authorities==

• Tourism Improvement Districts California, Montana and Washington have laws that enable tourism improvement districts, and other states are in the process of developing legislation, including Florida and South Carolina. • Urban Renewal Authority • Downtown Development Authority • Special Districts • General Improvement Districts ==By state==

North Carolina in Raleigh, North Carolina North Carolina State Statute names Business Improvement Districts, or other taxing districts Municipal Services Districts (MSD). • Property-based BIDs (PBID) assess real property. • Business-based BIDs (BBID) assess business owners. Colorado in Boulder, Colorado Colorado’s Business Improvement District Law of 1988 includes key provisions that allow BIDs to provide a wide variety of services, including public safety, planning, events, and parking management, those services are provided by private sector organizations. The law holds BIDs accountable to all payees into the district through a board of directors that is composed of business and property owners located within the district. All property owners, lessees and residents within the district are given the opportunity to vote for the tax in their district. ovement began in the 1960s when business owners and residents realized public resources were limited to improve commercial areas. Washington Local improvement districts are codified in the Revised Code of Washington; the term "local improvement district" appeared in 1981 legislation. In Seattle, Washington, LIDs authorized by state law have been applied for a variety of large projects. The South Lake Union Streetcar was funded through $25 million in LID funds derived from a local property tax. The redevelopment of the city's waterfront is expected to be funded using a $200 million property tax through a LID created in 2018. Wisconsin The following steps are required to establish a BID in Wisconsin: • Form a BID committee that adequately represents all stakeholders within the district • BID Committee must draft initial plan that identifies the goals and objectives, highlights its relationship with a comprehensive or master plan, and how the assessment will be calculated and collected. • The committee petitions the local government for permission to establish the district • Local government creates notice of proposal and hosts a public hearing • Public hearing is held with proposed plan. The plan may be rejected if a petition is signed by over 40% of property owners within the district • Council votes to adopt or reject the plan to establish a BID • Mayor or city's CEO appoints BID board members, 5 of which have to be property owners within the district. Other States' BID laws and precedents • Georgia: The board of directors of BIDs are all elected, but local governments collect the assessment. • New Jersey: The managing organization is typically a nonprofit and boards are not elected. The local government can then levy the tax assessment. • Pennsylvania: Public authorities are formed, and board of directors are appointed by local government. ==References==