• BIDs are referred to in many ways, depending on the state or city.  Terms used include special improvement districts, special assessment districts, business assistance districts, business improvement zones and special services district.

• Bids are districts are areas in central cities defined by state and local legislation in which, “the private sector delivers services for revitalization beyond what the local government can reasonably be expected to provide.”  The properties and/or businesses within this  legally constituted district pay a special tax or assessment to cover the cost of providing facilities or services for which the district has a particular need.  The benefits are that while the city provides some oversight authority the bids control the purse strings.

How are BIDs created?

While state and local legal requirements vary, the creation of special districts involving extra fees usually requires some form of prior approval by a simple majority of district property owners, by owners who control a majority of the land area, or by owners responsible for the majority of the fees assessed.  Landowners involved in special assessment district financing may be residents desiring infrastructure improvements, developers interested in preparing property for major projects or commercial businesses helping to fund improvements that will enhance local economic activity.

Special assessment districts can be independent of local government, having almost complete autonomy to finance, construct and manage specific projects.  They can also be dependent on local government, created only to raise revenue for specific projects, which are administered and implemented by local government.

Characteristics of BIDs

BIDs can be defined by the services they provide as well as by how they are shaped by legal statutes.  Large BIDs (common in cities such as New York and Philadelphia) can almost resemble their own governments, ultimately creating some conflicts of interest with local governments. Some of largest bids have branched out into economic and community develoment activities that seek to enhance the quality of life of the entire neighborhood, a goal which ultimately intends to bring benefits both locally and on a more regional level.  Smaller BIDs tend to take on roles once play by chambers of commerce and merchant associations with one major difference--they can reliably predict projected costs and revenues in advance due to legally binding payments paid by property owners.

Benefits of BIDs

BIDs represent an entrepreneurial approach on behalf of downtown leaders or pariticpating businesses to solve their own problems.  By bypassing the slow movement and cumbersome processes of local government by creating their own organizatios, BIDs are able to quickly try and discard or continue different strategies which enhance the district’s environment.  Some specific benefits of BIDs include:

• finding innovative solutions to problems, such as helping to coordinate and facilitate the movement of homeless citizens into long-term rehabilitation environments;

• protecting and enhancing public spaces through the deployment of “security teams” or “ambassordors”;

• initiating services not provided by public agencies such as sidewalk cleaning and snow removal, marketing, promotions, business retention and recruitment;

• advocating on behalf of downtown business allowing them to communicate a unified vision/message that presses local government on issues that would aid the district’s revitalization;

• creating coopreration among competitive businesses which allows them to engage in activities that they would not be able to do on their own;

• generating financing for capital improvements for more attractive streetscapes

• researching and planning services such as collecting and analyze economic and demographic data, monitoring progress, setting and revising strategic goals and developing multiyear redevelopment programs.