Notes

Outline

Business Improvement Districts Defining and Organizing BIDs Lawrence O. Houstoun, Jr., AICP The Atlantic Group Philadelphia, Pennsylvania and Cranbury, New Jersey  USA

What is A BID? A BID Always: Is an arrangement by which two or more property owners or businesses agree to share the costs of meeting common needs or capitalizing on common opportunities in order to improve business and increase property values

What is A BID? A BID Always: Is an arrangement by which two or more property owners or businesses agree to share the costs of meeting common needs or capitalizing on common opportunities in order to improve business and increase property values Is planned and run principally by property owners and tenants

What is A BID? A BID Always: Is an arrangement by which two o more property owners or businesses agree to share the costs of meeting common needs or capitalizing on common opportunities in order to improve business and increase property values Is planned and run principally by property owners and tenants Has multi-year cost-sharing prescribed in a city ordinance or a binding agreement Cost sharing is inclusive of beneficiaries and compulsory

What is A BID? A BID Always: Is an arrangement by which two o more property owners or businesses agree to share the costs of meeting common needs or capitalizing on common opportunities in order to improve business and increase property values Is planned and run principally by property owners and tenants Has multi-year cost-sharing prescribed in a city ordinance or a binding agreement Cost sharing is inclusive of beneficiaries and compulsory Is a self-help device All who pay receive benefits Benefits are restricted to those who pay

What is A BID? A BID Always Is an arrangement by which two o more property owners or businesses agree to share the costs of meeting common needs or capitalizing on common opportunities in order to improve business and increase property values Is planned and run principally by property owners and tenants Has multi-year cost-sharing prescribed in a city ordinance or a binding agreement Cost sharing is inclusive of beneficiaries and compulsory Is a self-help device All who pay receive benefits Benefits are restricted to those who pay Functions in a legally-defined area

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Generalizations About US Business Improvement Districts Common Program Emphases Large Commercial BIDs Sidewalk cleaning, landscape maintenance Hospitality/security staff Customer attraction/events Business/tenant attraction Capital improvements/public signs (BID funds) Grant seeking Commercial facades, signs Parking >$500,000          100% Annual revenues

Generalizations About US Business Improvement Districts Common Program Emphases Small Commercial BIDs Sidewalk cleaning, landscape maintenance Hospitality/security staff Customer attraction/events Business attraction Capital improvements/public signs Grant seeking Commercial facades, signs Parking <$500,000          100% Annual Revenues

Generalizations About US Business Improvement Districts Less Common BID Activities Real estate, market research Advocacy Redevelopment Improving business practices Transit, bikes, pedestrians Public relations, image improvements Public space improvements Social services Visioning Planning and design CCTV

What Do US BIDs Cost? Typical Payments Equal To: Large BIDs $0.12/sf;12% of property tax Small BIDs $1.00-$3.00 per day Basis for Assessment Most frequent Each property’s assessed valuation Infrequent Gross leasable area (sq.ft.) Front feet Location relative to BID benefits (e.g., Denver) “Any method that equitably apportions costs among benefiting properties.” (e.g., Pennsylvania) Who pays? Almost always the occupier (tenant)

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Five Elements of the District Business Plan Services and Improvements What is needed to make the District attractive to residents, investors, businesses, consumers, visitors? (Includes purchased services, staff actions, advocacy)

Five Elements of the District Business Plan Services and Improvements What is needed to make the District attractive to residents, investors, businesses, consumers, visitors? (Includes purchased services, staff actions, advocacy) Budget How much needs to be spent on each of these over a multi-year period to make an important difference?  (Includes one-time costs and continuing programs)

Five Elements of the District Business Plan Services and Improvements What is needed to make the District attractive to residents, investors, businesses, consumers, visitors? (Includes purchased services, staff actions, advocacy) Budget How much needs to be spent on each of these over a multi-year period to make an important difference?  (Includes one-time costs and continuing programs) Service Area What properties need to be included in the designated area?

Five Elements of the District Business Plan Services and Improvements What is needed to make the District attractive to residents, investors, businesses, consumers, visitors? (Includes purchased services, staff actions, advocacy) Budget How much needs to be spent on each of these over a multi-year period to make an important difference?  (Includes one-time costs and continuing programs) Service Area What properties need to be included in the designated area? Cost Sharing What equitable and affordable assessment formula(s) is/are required? What other sources of funds can be called upon?

Five Elements of the District Business Plan Services and Improvements What is needed to make the District attractive to residents, investors, businesses, consumers, visitors? (Includes purchased services, staff actions, advocacy) Budget How much needs to be spent on each of these over a multi-year period to make an important difference?  (Includes one-time costs and continuing programs) Service Area What properties need to be included in the designated area? Cost Sharing What equitable and affordable assessment formula(s) is/are required? What other sources of funds can be called upon? Governance, Management How should the district be managed? How should the Board function? How should interested stakeholders be represented? How should the district relate to the local government and other organizations in the area?

The Steering Committee WHO? Major economic interests -- large, small, different areas, day-night People who will be paying charge Generally friendly to BID concept WHAT? Shape the business plan and sell it! WHEN? Lead the decision process Advocate for the plan WHY? Need for private sector image A private sector plan

BID Services and Local Government BIDs pay for services when government can’t, won’t , or shouldn’t provide needed services Government services are judged to be not timely, not adequate, not in sufficient quantity BID-government Agreements What BIDs will do What government will do

Goal Example:  Strengthen Local Economy Make Chestnut Hill “Business Friendly” Create ‘Welcome Package’ for new businesses CHBA services, events, parking, security Develop events for professional firms to show that they are an important part of the business district Hire consultant to look at current parking system and ‘bring it all under one roof’ Create more parking lots in the Lower Hill Directional signs for Bethlehem Pike Employ hospitality persons/hosts to welcome and guide visitors

Goal Example:  Strengthen Local Economy Attract New Customers to Chestnut Hill Have different events ─ ‘Restaurant Night’ or ‘Gallery Night’ or ‘Discover a Block’─ geared toward bringing people into the stores not just onto the street Cross marketing among stores Gear events for children and families

Survey:  Worst to Best What Customers Tell Us About Shopping in Chestnut Hill Rank Item Rated (Worst First) Rated1    1 Variety of stores 2.4   2 Convenient hours 4.5   3 Competitive pricing 6.9   4 Selection within specific categories 6.9   5 Availability of parking 7.4   6 Safety of district 7.6   7 Quality of shops 7.7   8 Cleanliness of streets/sidewalks 7.8   9 Friendly, knowledgeable sales people 7.8 10 Appearance of shopping district 7.9

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Shaping the District Business Plan Public Participation Opportunities Steering Committee Representative stakeholders Plans and leads decision process Agrees on elements of Business Plan Services and improvements Budget Cost sharing Service area Governance and management Communicates with: Municipality Owners Press Other organizations

Shaping the District Business Plan Public Participation Opportunities Three Community Meetings First:  Understand BIDs Begin to shape priorities  “What do we need?” Second:  Review Program Committee’s Preliminary service options Improvement options Third:  Review Steering Committee’s Business Plan Encourage widespread participation at each stage

Business Improvement Districts An International Movement Business Responsibility for Business Districts Cooperation Among Economic Interests Partnerships between Business and Government

Selling the BID Top-of-the-line materials Keep score Personal contacts Owners Local officials

A Great Downtown! For the Price of a Coffee, a Shake, a Fast Food Lunch!!

West Chester’s Business Improvement District A Tiny Charge ─ A Major Boost for Business!

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Technical Assistance Organizing BIDs Branding Research “Business Improvement Districts” Second Edition

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Examples of BID Activities Marketing to customers Restaurant promotions Common assets Theatres Transit Parking Business recruitment PR, communications Events

Marketing to Customers

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Restaurant Promotions

Support for Common Assets Reopening Old Theatres Sponsoring Transit

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Business Recruitment

Recruiting Strong Businesses Form business attraction committee Set priorities Office Hotel Retail Entertainment Restaurants Residential

Recruiting Strong Businesses Research Trade area Consumers Demographics Assets Pedestrian counts Inventory properties Update quarterly Prepare marketing materials High image

Recruiting Strong Businesses Staff systematically contacts Businesses Developers Realtor partnerships Semi-annual breakfast presentations Help realtors Offer bonuses for desired businesses Financial incentives Occupants Owners

Recruiting Strong Businesses Disseminate Newsletters Data Brochures Survey information Publicize new businesses Operate customer attraction events Promotions Assure good parking Have significant number of   retailers open weekends

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"PR," PR, Communications

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Events

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Making Downtown Comfortable After Dark

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P.T. Barnum said: “In Every Crowd There is a Silver Lining!” Small BIDs emphasize customer attractions!

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Small BID with Large Achievements….     Manayunk, Philadelphia Pedestrian Lighting Shopper-Friendly Parking

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When You Can’t See the Shop or the Restaurant….

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Selling the BID Proposal

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Mall/Park Management Lincoln Road Mall Bryant Park Sixteenth Street Mall

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“Where Can I Find…?” Freeport Times Square

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Large BIDs Can Afford Safe and Clean Services More Sophisticated Marketing

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"BIDs Build Successful Commercial Areas..." BIDs Build Successful Commercial Areas That Are: Convenient Attractive Friendly Popular and active

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"Business Improvement District" Business Improvement District An International Movement Business Responsibility for Business Districts Cooperation among economic interests Partnerships between business and government

Are BIDs Working? There are more than 1000 in North America, with more every year BIDs are forming in Germany, Great Britain, Australia, New Zealand, South Africa, Austria, Ireland Each year, BID Boards, representing rate payers vote to continue and sometimes expand With more than 25 years of experience, BID services and improvements are producing safer, cleaner, more prosperous, more popular places BIDS create places where people want to be