(this tool is an excerpt from a larger research paper available in its entirety at the site listed below)

Throughout the country and in cities such as New York, San Francisco, Cleveland, and Philadelphia, Business Improvement Districts (BIDs) have been able to maintain cleaner and safer streets, decrease storefront vacancy rates, and address social welfare issues. BIDs levy assessments on real property for specific improvements beyond which local governments can reasonably provide. They have been effective in reversing decline and promoting commercial development in urban areas.

In general, BIDs are formed following a proposal by a group of property owners in a geographically defined area to fund supplemental government services (e.g. cleaning and maintenance), non-governmental services (e.g. landscaping, marketing and promotion), and capital investments (e.g. sidewalk widening). The municipality in which a BID is located collects the BID's supplemental property tax assessments through its general taxation powers and distributes them to the BID. A board of directors composed of property owners, merchants, residents and public sector representatives is then given authority by the government to undertake projects and programs with the district.

While the ability of BIDs to achieve their goals is rarely questioned, concerns have been raised over whether the success of BIDs has come at a cost. The article, "Business Improvement Districts: Issues in Alternative Local Public Service Provision" profiles the issues raised by both proponents and critics in a number of areas and provides case studies focussed on material from New York State to illustrate these points.

For more information:

Restructuring Local Government website

contact: Mildred E. Warner
Assistant Professor, Department of City and Regional Planning
mew15@cornell.edu