NEIGHBORHOOD BUSINESS IMPROVEMENT DISTRICT PROGRAM
What
is a Business Improvement District (BID)?
A
Business Improvement District (BID) is a mechanism in which all of the business
or property owners within specific boundaries pay an annual fee to an
assessment district.
Those
paying into the district create a non-profit corporation that acts on behalf of
the interests of the district. BID
revenues may be used for an array of activities, programs and improvements
ranging from enhanced security to special marketing events.
Why
establish a BID?
There
are an estimated 200 BIDs currently organized in California, including one in
Oakland, the Lakeshore Avenue Business Improvement District that was
established in 1998. The BID model
of organization resolves the major problems of business groups, creating both a
stable cash flow and incorporating all of the members of a business community
into an entity representing the interests of that community. BIDs are gaining popularity because:
§
BIDs are self-governed
and privately administered.
§
BIDs realize a cleaner,
safer, and more attractive district
which in turn maintains and/or increases retail sales and property
values.
§
By pooling resources,
the BID collectively pays for services that individual business or property
owners could not afford on their own.
§
Assessments are levied
on properties and/or business based on the relative benefit from improvements
and activities to be funded.
Types
of BID Services
BIDs
provide revenue for a variety of local improvements and services above those
provided by existing municipal services.
BIDs may choose to undertake the following:
|
Type of Service |
Description |
|
Maintenance |
Includes enhanced services such as sidewalk sweeping, trash and debris
removal, periodic power washing of sidewalks, and immediate graffiti removal. |
|
Security |
Security patrols and community policing "ambassadors" who have
customer service training to provide directions and assistance. |
|
Marketing And Promotions |
Collaborative promotional strategies, target marketing, etc. to
improve the image and competitiveness of business districts. |
|
Special Events |
Annual or holiday events to reinforce the drawing power of the
district as a destination of interest. |
|
Parking and Transportation |
Increase/improve parking supply through construction of additional
parking facilities, special token systems, etc. |
|
Economic Development |
Strategies to attract businesses, jobs and investment in districts,
including market analysis, etc. |
|
Capital Improvements |
Additional street lights, benches, kiosks, trash receptacles and
public art to improve the shopping environment. |
|
Human Services |
Social services and initiatives. |
BID
Formation and Fees
A
BID is initiated by local business or property owners who request that the City
establish the district through a formal balloting of those owners within the
specified boundaries. A weighted
majority of those affected is required to approve formation of the
district. The BID formation
process may take 12-24 months to complete, including development of the
Management Plan to guide BID activities and completion of the public process
through the City Council. The
total assessment dollars to be raised by the BID are determined during the
formation process, and depend on the types of activities and services desired
by those in the district.
Individual assessments may be calculated using a variety of factors
including business type or size, lot square footage, and linear street
frontage.
Oakland's
Neighborhood BID Program
The
NBID program seeks to assist in the establishment and support of the operation
of business and property-based assessment districts by providing financing and
technical assistance to neighborhood business or property owner groups for
business improvement district (BID) formation activities. Financial assistance
will take the form of 1) seed grants (not exceed $7,500) to start the process
and determine BID feasibility and 2) repayable loans to fund completion of the
process of BID formation. Funding
will be awarded to groups on a competitive basis.
Seed
grants are to be used by the BID proponent groups to develop a draft district
management plan, establish levels of assessments, and to conduct a preliminary
poll of support for establishing a BID.
If sufficient support for formation the district can be demonstrated,
the group may apply for a loan from CEDA to proceed in establishing the BID.
The loan amount will be repaid to CEDA from the first year assessment district
revenues according to a memorandum of understanding between the group and the
City.
Funding
Process/Criteria
Interested
groups are asked to prepare a letter of request for funding that specifies
requested funding amounts, and to attach any relevant information which
demonstrates community support and activity toward BID formation. Criteria for evaluating requests for
funding is as follows:
§
the level of
demonstrated community interest in the forming a BID (informal petitions, sign-in sheets from meetings, etc.);
§
identification of a
core stakeholder group to lead the process (provide name, phone and address);
§
the availability or
commitment of funds or in-kind services from the stakeholders group or other
sources;
§
level of activity
toward BID formation (provide evidence of meetings, data collection, consultant
interviews or proposals); and
§
the current
availability of funding in the program.
§
submission of a good
faith deposit of $1,000 to be collected from property or business owners within
the proposed district (attach a list of those contributing with your check)
The good
faith deposit will be used in conjunction with the grant to offset the cost of
the initial BID feasibility investigation. If the proposal is not selected for funding, the deposit
will be returned to the district proponents within 15 days after the final
funding decision.