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.