Business Business Improvement Improvement

DistrictsDistricts

Arthur C. Nelson, Ph.D., FAICPArthur C. Nelson, Ph.D., FAICP

Presidential Professor & DirectorPresidential Professor & Director

Metropolitan Research CenterMetropolitan Research Center

University of UtahUniversity of Utah

BIDs – Making the Case BIDs – Making the Case

Purposes of BIDsPurposes of BIDs Understanding BIDsUnderstanding BIDs Developing ProposalsDeveloping Proposals Business ResponseBusiness Response Identifying ImpactIdentifying Impact

Why BIDs?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 Perhaps some business

desperation.desperation. Public sector tools can be Public sector tools can be

leveraged for private benefit.leveraged for private benefit.

BID PrioritiesBID Priorities

Safe & CleanSafe & Clean Safety from crimeSafety from crime Clean streets, sidewalks, buildingsClean streets, sidewalks, buildings

Enhanced physical settingsEnhanced physical settings Street-scapingStreet-scaping Traffic planning (Atlanta LCCs)Traffic planning (Atlanta LCCs)

PromotionsPromotions Lobbying Lobbying

Who Pays?Who Pays?

Assessments on benefiting Assessments on benefiting properties (reviewed later).properties (reviewed later).

Often some local government Often some local government matching.matching.

Potential for “diversion” of funds.Potential for “diversion” of funds. Can leverage other private, Can leverage other private,

nonprofit funds.nonprofit funds. Occasionally able to leverage Occasionally able to leverage

into “enterprise zone” funds.into “enterprise zone” funds.

BIDs as an InvestmentBIDs as an Investment

More “foot traffic”, longer stays, More “foot traffic”, longer stays, higher spending.higher spending.

Create a marketing “Buzz”.Create a marketing “Buzz”. Diversity of downtown use – retail, Diversity of downtown use – retail,

leisure, office.leisure, office. Equitable funding mechanism with Equitable funding mechanism with

the private sector having a the private sector having a major input into the major input into the

partnership partnership delivery.delivery.

Partnership ElementsPartnership Elements

Public Sector SupportPublic Sector Support Local government endorsement Local government endorsement

crucialcrucial Capital and revenue commitmentCapital and revenue commitment Service agreement/baseline Service agreement/baseline

deliverydelivery Private Sector SupportPrivate Sector Support

Approval and involvementApproval and involvement Service charge reduction Service charge reduction 

Business PlanBusiness Plan Clear, succinct objectives and strategy.Clear, succinct objectives and strategy. Projects and services defined.Projects and services defined. Boundaries (assessment areas) clearly Boundaries (assessment areas) clearly

delineated.delineated. Management structure clear.Management structure clear. Other/matching revenue sources Other/matching revenue sources

identified.identified. Proposed tax/assessment levy rationale Proposed tax/assessment levy rationale

and mechanics known.and mechanics known. Evaluation scheme presentedEvaluation scheme presented Face-to-face engagementFace-to-face engagement

GovernanceGovernance Board of DirectorsBoard of Directors

Often appointed by local Often appointed by local governmentgovernment

Sometimes electedSometimes elected By-lawsBy-laws Planning/budgeting processPlanning/budgeting process

AnnualAnnual ReportingReporting

Annual report/assessmentAnnual report/assessment SunsettingSunsetting

Bottom LineBottom Line

Usually more effective for Usually more effective for business than without them.business than without them.

Can result in strong political force Can result in strong political force that supports elected officials that supports elected officials

– – or threatens them.or threatens them. Creates identity for the area, Creates identity for the area,

often leading to incremental often leading to incremental new investment.new investment.