Business Improvement Districts

This collection of articles reflects the evolution of Business Improvement Districts from their early days in the United States when they were typically formed in large urban centers whose stakeholders were sufficiently concerned about the effect of “crime and grime” on their businesses and property values that they were willing to share the costs of remedial measures. Although BID experience in Canada had preceded the first American examples, the early ventures in the US were launched with little guidance. Earlier urban renewal programs were thought to have made things worse and Chambers of Commerce and merchant associations were toothless talk shops without useful resources. Voluntary activities, here and in Great Britain, produced little money and a significant group of freeloaders.

The elements remain simple: an organization representing diverse economic interests plans and manages a budget based on a compulsory charge adopted by local government. The investments are intended to advance business profitability and property values.

BIDs have generally been successful at:

Creating a favorable identity appealing to customers, visitors and investors;
Upgrading the appearance through improved lighting, landscaping, façade improvements on commercial properties;
Generating activity.

They have not, however, been universally successful.

Many lack clear economic goals, opening their treasuries to unessential claims;
Boards of Directors often fail to reconsider program emphases that may have become obsolete;
Few BIDs extend their influence beyond basic safe-clean-marketing when their commercial centers require leadership, expertise and some funding for redevelopment, planning and strategic property investments;
Having demonstrated that commercial areas are more valuable because of BID initiatives, few if any have negotiated transfers of responsibilities to general purpose governments;
After about ten years of favorable media treatment, BIDs rend to rest on their laurels. Repeating last year’s activities are easy choices because there is little tension in these decisions.

Chapter 1: Partnering Local Governments and Businesses

Chapter 2: Capitalist Tool

Chapter 3: Betting on BIDs

Chapter 4: Are BIDs Working?

Chapter 5: BIDs Come to Britain

Chapter 6: BIDs at Home and Abroad

Chapter 7: Gotham Gets Civil

Chapter 8: BIDs Growing Pains

Chapter 9: Smart Money

Chapter 10: The Future of BIDs: Smaller and More Creative

Chapter 11: Voluntary BIDs Lack Equity, Reliability

Chapter 12: “Creative” Investments Will Be Key to Long-Term BID Success