PACC Awarded BID Planning Grant

Click here to see the results of the Fulton Street Business Improvement District (BID) Survey

 

The NYC Department of Small Businesses Services (SBS) awarded PACC a planning grant to create business improvement district (BID) services on Fulton Street in Fort Greene and Clinton Hill, Brooklyn. 

What is a Business Improvement District?  A BID is an organization of property owners in a commercial district who tax themselves to raise money for neighborhood improvement within a specified geographic boundary. The owners within this area contribute to programs aimed at management, maintenance, development and promotion of the district. The purpose is to supplement, not replace, city and government services.  BID assessments are restricted to commercial and industrial properties subject to real estate tax. Tax-exempt properties such as religious, public utility, or government properties or those used exclusively as residences are not included in the assessment district. A professional BID staff manages the day-to-day operations and operations through authority from the BID 's Board of Directors.  There are 50 successful BIDs in the five boroughs, and we are now looking to bring this model to Fulton Street in Fort Greene and Clinton Hill, Brooklyn.

PACC will conduct "needs assessments" of the Fulton Street commercial corridor and look at the feasibility of establishing a BID, specifically looking at the marketing, sanitation and safety needs of the area. A Steering committee has been created that is comprised of the area's major stakeholders, with Wellington Sharpe of Nelrak Child Development Center to Chair. Upon completion of the feasibility analyses, PACC and the BID Steering Committee will establish the appropriate BID structures as well as garner public support for its implementation.

What is a BID?
A Business Improvement District (BID) is a public/private partnership in which property and business owners elect to make a collective contribution to the maintenance, development, and promotion of their commercial district.

The idea for BIDS is modeled on the shared maintenance program of many suburban shopping centers. Malls are typically single properties, managed by one entity that sublets the retail space to multiple tenants. Tenants pay a common area maintenance fee to underwrite services that enhance the appearance of common areas and provide cooperative advertising for the mail and its stores.

A BID works in much the same way. However, because the BID is set in an urban context, multiple property owners agree to the extra fee (assessment). Thus, stakeholders in a commercial district can align themselves in much the same way to improve their area.

Several advantages result from this arrangement:
A cleaner, safer and more attractive business district
A steady and reliable funding source for supplemental services and programs
The ability to respond quickly to changing needs of the business community
The potential to increase property values, improve sales and decrease commercial vacancy rates
A district that is better able to compete with nearby retail and business centers

Where would the Fulton Street BID boundaries lie?
The BID would extend from Flatbush Avenue Extension to Classon Avenue on the south side of Fulton Street and from Rockwell Place to Classon Avenue on the north side of Fulton Street.

What does a BID do?
Business Improvement Districts deliver a range of supplemental services in coordination with municipal services and invest in the long-term economic development of their districts.

Supplemental services/improvements during the first year of the Fulton BID would include:
Maintenance Sidewalk cleaning Graffiti removal	Public safety Public safety officers Marketing Promotional materials Holiday Decorations	Landscaping Planting trees/flowers Treepit maintenance
Future improvements might include:
Community Service Fundraising Community events Business Development Commercial vacancy reduction Business mix improvement	Marketing Special events District public relations	Capital Improvements Improved streetlights Custom trash receptacles Directional street signage Custom newsboxes Flower boxes

How are BID programs and services paid for?
Funds to pay for BID programs and services are generated from a special assessment paid by the benefited property owners. The assessment is billed and collected by the City of New York and then disbursed directly to the BID, which in turn delivers the district’s services.

What is a BID assessment?
A BID assessment is a fee that each property owner pays to support the operations of the BID. The sum of all the individual assessments that property owners pay comprise the total yearly assessment of the BID, and underwrite most, if not all, annual operating expenses. The total yearly assessment is unique to each BID in NYC, ranging from $53,000 to more than $11 million. The Fulton BID Steering Committee is proposing a budget of $400,000 with an assessment rate of $64 per foot of front footage.

Will City Services be reduced if the BID is providing similar services?
No. The services provided by the BID are supplemental to the services provided to the district by the City. For example, if a BID provides sanitation services, it will still receive the same level of service from the Department of Sanitation as it did before supplemental services were added.

Who oversees the BID?
Each BID is governed by a Board of Directors that is elected by the members of the district. The Board of Directors has a fiduciary responsibility to the BID and hires the management that administers the BID on a day-to-day basis. The Board is divided into classes that include: commercial property owners, commercial tenants, residents and public officials. (Public officials include the Mayor, Comptroller, Borough President, and a member of the City Council and are defacto board members.) BID members vote for directors in their respective classes. The majority of directors must be property owners.

Are NYC’s BIDs successful?
There is significant evidence that indicates that BIDS have met great success and have improved business conditions throughout New York City. BIDs measure their success in a variety of ways:

Service Delivery: Examples of the level of services that are achieved help to understand the success of a BID. BIDS such as the Grand Central Partnership collect 54,600 tons of garbage per year. The public safety officers of the Times Square BID make 600,000 public contacts per year.

Commercial Property Rates: Many BIDS reduce their commercial occupancy rates by as much as 27 percentage points.

BID Renewal Rates: Each BID in New York City has elected to continue or expand its operation since its inception. None have chosen to dissolve.

What is the role of Pratt Area Community Council for the Fulton Street BID?
Pratt Area Community Council (PACC)’s economic development team has been working for many months to organize the BID proposal process. PACC helped guide the steering committee through the budget selection process, provided manpower to conduct community surveys, and acted as a liaison with the Department of Small Business Services.