IMPROVEMENT DISTRICT

An 'improvement district' is a special district created to make improvements, typically to infrastructure, in a given area. It is also called a 'self-taxing district', because the property owners agree among themselves to pay into the district, in return for services which they also agree on.
There are generally two kinds of improvement districts: business and rural. Business districts typically promote economic development, while rural ones usually concentrate on basic things like drainage and roads. An example of the latter is the Reedy Creek Improvement District for Disney World in Florida.
It differs from a tax-allocation district (TAD), in that a TAD only reallocates or defers existing taxes in an area that has an insufficient tax base to support redevelopment efforts otherwise.

Contents
Business districts
History
North America
England and Wales
Criticism
References
See also
External links

Business districts


A 'business improvement district' ('BID'), 'business improvement area' ('BIA'), 'business revitalization zone' ('BRZ'), or 'community improvement district' ('CID'), is a public-private partnership in which property and business owners of a defined area elect to make a collective contribution to the maintenance, development and marketing/promotion of their commercial district. It is, in some ways, similar to a residential community association, but an appropriate analogy would be that of a suburban shopping mall, from which the idea for BIDs is, itself, modelled. Malls are generally single properties managed by one entity that rents out retail spaces to various tenants. Tenants pay a common maintenance fee to pay for services that enhance the appearance of the mall's common areas and provide cooperative advertising for the mall and its various stores. BIDs operate in much the same way.
BIDs are grassroots organizations, that are driven by community support and require legislative authorization by the local government in which it resides, in order to be established.
BIDs typically provide services such as street and sidewalk maintenance, public safety officers, park and open space maintenance, marketing, capital improvements, and various development projects. The services provided by BIDs are a supplement to the services already provided by the municipality.
BIDs are funded through special assessments collected from the property owners in the defined boundaries of the district. Like a property tax, the assessment is levied on the property owners who can, if the property lease allows, pass it on to their tenants. In the city of New York, the operating budgets of BIDs range from $53,000 to over $11 million. Typically, an individual property owner will pay an assessment of approximately 6% of his/her annual real estate tax charge.
BIDs are overseen by a board of directors that is elected by the members of the district.
History

BIDs first emerged in Toronto, Ontario, Canada in the late 1960s and have subsequently emerged across Canada and the USA and into New Zealand, South Africa, Jamaica, Serbia, Albania, England and Wales, Germany and Ireland with BIDs legislation also being passed in Scotland in April 2007. BIDs, however, have numerous pseudonyms, these include business improvement areas and special improvement districts.

North America


There are 55 BIDs within New York City. Toronto has 60 BIAs within its city limit. In the province of Alberta, they are termed "business revitalization zones". There are nine zones in the city of Calgary and 10 in Edmonton. The first special improvement district in New Jersey was formed in Cranford, New Jersey. Several CIDs have been formed in Georgia, all in metro Atlanta. There are also BIDs within the city of Albany, New York.

England and Wales


In England and Wales, business improvement districts were introduced through legislation (the Local Government Act 2003) and subsequent regulations in 2004. The Circle Initiative, a five-year scheme funded by the London Development Agency, set up the first pilot BIDs, five in London, all of which had successful ballots by March 2006. Association of Town Centre Management-coordinated pilot 'talking shops' in 22 locations in England and Wales corresponded with the development of BIDs' regulations.
The first BID to be created under this process was Kingston upon Thames. By August 2006, over 30 BIDs have emerged in town and city centres and industrial estates in England and Wales.
Unlike the US, BIDs in England and Wales are funded by a levy on the occupiers rather than the owners of the properties within the area. If voted in by local businesses, the BID levy is an extension to existing non-domestic business-rates.
Keswick in the English lake District Cumbria became the first rural business improvement district (BID) in the country, as a result of the ballot of the business community in September 2005. [1]
Private sector business people came forward and a company limited by guarantee was incorporated (April 2006) to deliver the business plan on which the vote was held. Keswick Business Improvement District Limited has been established with a 15 place Board of Directors, which represent a cross section of the business community within the town.
Every business rate payer of £2,900 or more, within the boundary of Keswick are members of the BID and are required by legislation to pay a 1% levy based on their business rateable value. The levy is collected by the local authority as the collection agency on behalf of the BID Company. The BID Company and the Directors are responsible for the effective delivery of the projects within the Keswick BID Business Plan.

Criticism


In some areas where BIDs have been implemented there has also been criticism of the districts. For example, in Plymouth it has been claimed that vast amounts of taxpayers' money has been channelled into the promotion of the BID companies' directors business interests whilst their competition has been left unsupported. Moreover, despite being forced to pay a BID levy, membership to the Plymouth City Centre Company requires the approval of its directors, who have been known to refuse membership due to an applicant having a business that might compete with their own. Critics argue that the BIDs provide services which should be provided by the government such as policing services. Critics also argue that there are services which should be paid for by the individual business owner such as sweeping/cleaning.[1] Other critics believe that BIDs are too large and wield too much power and are taking away power from neighbourhood community organizations. In some neighbourhoods there are now umbrella groups made up of commercial landowners, property management firms, and condominium dwellers which aim to stop the BIDs.
BIDs have also become a powerful lobby group, lobbying government for improvements such as new sidewalks, trees, park benches and other restorations. BIDs can also lobby different levels of government for a complete facelift on their area if they feel its necessary to improve business. [2]. The Rideau Street BIA in Ottawa has lobbied the city for years to give the entire street a face-lift because of its "run down" look.
There is also very little public access to the accounts of the BID companies in the UK despite the fact that the vast majority of their income is derived from public taxes. In Plymouth, England, for example, the bid company known as the Plymouth City Centre Company does not publish its full accounts and questions are now being asked as to where and how millions of BID funds have been spent.
In addition, there has been some recent concern in social science literatures that critique aspects of the BID model. It is argued that the devolution of limited political authority to the private boards of these districts effectively privatizes the public spaces of the city. This privatization is potentially problematic given the important role that is played by public space in a democracy as a site of free speech, association and protest. There is concern that overt control of BIDs by business and property owners results in the privileging of the interests of those people over the democratic interests of society at large. There has also been substantial attention to the manner in which BIDs have often attempted to rid the spaces they control of the homeless (who by definition must be in public space since they do not own any private spaces), ethnic minorities, and political activists who might frighten off potential shoppers.

References


1. Seattle Weekly: [2]
2. Ottawa Business Journal: http://www.ottawabusinessjournal.com/293685399357911.php

Clough, N. and R. Vanderbeck. 2006. Managing Politics and Consumption in Business Improvement Districts: The Geographies of Political Activism on Burlington, Vermont's Church Street Marketplace. Urban Studies. Vol. 43 Issue 12.
Hoyt, L. and G. Devika. 2007. The Business Improvement District Model: A Balanced Review of Contemporary Debates . Geography Compass 1/4 2007
Schaller, S. and G. Modan. 2005. Contesting Public Space and Citizenship: Implications for Neighborhood Business Improvement Districts. Journal of Planning Education and Research, Vol. 24, No. 4, 394-407
Stokes, R. 2006. Business Improvement Districts and Inner City Revitalization: The Case Of Philadelphia's Frankford Special Services District. International Journal of Public Administration, Volume 29, Issue 1 - 3 January 2006 , pages 173 - 186
Ward, K. 2007. Business Improvement Districts: Policy Origins, Mobile Policies and Urban Liveability. Geography Compass. 1/3 2007

See also


'United States'

Indian Trail Improvement District, Florida

Town Center Improvement District, Texas

External links



'www.britishbids.info'- British BIDs - The primary aim of British BIDs is to establish an integrated membership organisation for both formal and developing BIDs, and stakeholders with an interest in BIDs, across Britain. British BIDs brings together BIDs and stakeholders to share in joint learning and inform future BIDs policy across the country. British BIDs is a collaborative venture between Partnership Solutions and BURA.

'www.londonbids.info'- London BIDs - The London BIDs BID Toolkit has been awarded the "South East Excellence Tools of the Trade Award", by BURA and SEEDA for being a practical, user-friendly guide, which enables users to develop individual and bespoke solutions to a variety of local issues and problems. It gives a step-by-step guide and downloadable tools for partnerships that are thinking about whether a BID is right way forward, or those that need support on specific aspects of Business Improvement Districts.

'www.bids-scotland.com' - Business Improvement Districts Scotland

www.urban-improvement-districts.de German research-website on Urban Improvement Districts, e.g. Business or Housing Improvement Districts with lots of links to German and international projects, statutories and publications

''Why Business Improvement Districts Work'' - article by the Manhattan Institute for Policy Research (May 1996)

Business Improvement Districts: A practical tool for the revitalization of downtown neighborhoods - website for a University of North Carolina at Chapel Hill urban planning course

Business Improvement Districts - a project led by Lorlene Hoyt at the Massachusetts Institute of Technology


BID Web Sites

Managing the Micropolis: Proposals to Strengthen BID Performance and Accountability - a 1997 report on the lack of accountability in some BIDs and recommendations for reform

Business Improvement Districts and Innovative Service Delivery - a comprehensive examination of BIDs

UKBIDs - The Association of Town Centre Management's BIDs website

The Policy Transfer of US Business Improvement Districts to England and Wales - a presentation by Ian R. Cook on how and why BIDs were introduced in England and Wales

www.keswick.org/bids.asp - Keswick Business Improvement District the Northern Lake District Cumbria

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