Business Improvement Districts Albany NY & NYC

What is a BID and How Can It Help Improve an Urban Retail Area

Apr 29, 2009

Business Improvement Districts are non-profit organizations formed by a business area. What is a BID and how does it work to improve and revitalize an urban retail area?

Business Improvement Districts or BIDs are not-for-profit organizations that have been formed by a business area in order to improve and keep viable a commercial district within a city.

Typically a BID is formed when a group of business owners choose to form this public/private partnership with the city. Once a BID has been established, all property owners within the boundaries of the BID are assessed an annual tax by the city that is returned to the BID in order to carry out, on a local level, the responsibilities of promoting business vitality and residential quality of life within the designated district.

According to NYC Small Business Services, BIDs are an international endeavor with the United States and Canada having the largest number. The heaviest concentration of Business Improvement Districts are in the cities of New York, Los Angeles, Toronto, and Vancouver.

Focus on Albany NY - Lark Street BID

In Albany, there are three BIDs that were formed in 1996-97 that work within unique commercial areas of the city. According to the City of Albany's official website, "Albany's BIDs assist in economic development, promote the businesses and services within their district, and create a clean, safe environment for workers, residents, and visitors."

Michael Weidrich, Executive Director of Lark Street Business Improvement District, says "Lark Street BID is unique in that it includes residential properties as well as retail space in mixed-use buildings surrounded by a residential neighborhood, it is a model for a symbiotic relationship between residents and businesses."

The business area of Lark Street is smaller than the two other Albany BIDs, and the neighborhood is composed of a diverse mixture of urban residents who live in Victorian row houses. There are four active neighborhood associations that surround the Lark Street BID and weigh in on zoning issues, among other things, that affect the quality of life for the community.

Many of the residents are actively engaged in preserving and restoring the historic nature of the neighborhood. Weidrich says property values in the neighborhood have doubled since the initiation of the Lark Street BID in 1996.

The Lark Street BID sponsors 6 major events that attract thousands of people to the business district year round. One event, LarkFest, is the largest street fair in the region attracting more than 80,000 people annually.

Focus on New York City Business Improvement Districts

According the publication, Starting a Business Improvement District: A Step by Step Guide, by the NYC Department of Small Business Services, the first New York City BID was started in 1984. There are now 60 Business Improvement Districts in NYC that are spread out over five boroughs.

BIDs are accountable to a board of directors, like all other not-for-profit organizations. The BID boards typically are comprised of business owners and tenants, residential owners and tenants and representation from the city government or city council.

They compare BIDs to the shared maintenance concept of shopping malls that have individual business tenants pay a fee to the property management company or mall owner for maintenance and services for common areas, promotion and advertising of the mall and the individual stores. But in the case of a BID, the property owners within the district are assessed a tax that goes back to the maintenance and improvements for the district.

BID Promotes Revitalization on Local Level

Although some believe BIDs are providing services that should be supplied by the city government, BIDs allow those who have a stake in the designated area to make decisions about how to use funds that will most effectively keep their district viable, and that contributes to the overall vitality of the city.

The copyright of the article Business Improvement Districts Albany NY & NYC in Non-Profit Management is owned by Barbara Shema. Permission to republish Business Improvement Districts Albany NY & NYC in print or online must be granted by the author in writing.