The Value of a BID
The programs and improvements you've seen in Chinatown, including
Clean Streets, Explore ChinatownSM, Taste of ChinatownSM,
and more, are temporarily funded by grants from government and
foundations.
A BID is the only way to consistently fund clean
streets. Improving
Chinatown attracts more visitors and more customers to local
businesses, helps keep Chinatown competitive with adjacent
neighborhoods and BIDs, and makes the neighborhood a better place to live,
work and visit.
To date,
65 BIDs have been created in New
York City alone. (1,800 BIDs worldwide.) Many of them have, in fact, expanded their service
areas.
How Are BIDs Funded & Managed?
BIDs are funded through an assessment on property owners, who
have agreed to pay for a range of improvement services determined by
the BID board. Some landlords can pass along the cost to
their commercial tenants, but not to residential tenants.
The board
is comprised of property owners, business owners and other community
representatives, all of whom have a stake in the proposed BID. The
majority of board members must be property owners and commercial
tenants.
How is a BID Formed?
BID formation begins with planning and outreach. In the planning
phase a steering committee is formed that, like the board to follow,
is comprised of property owners, business owners and other community
representatives. The steering committee's work includes:
- Defining service area. Only properties within the
Service Area pay for and are entitled to receive BID benefits.
See map on home page.
- Drafting the BID plan. This includes determining the services
and improvements to be provided by the BID, the first year's
budget and the assessment formula (hybrid of assessed value and
linear front frootage)
The Cost of Being in a BID Service
Area
The BID's board is responsible for developing the budget and
determining the rate of assessment needed to fund the services
provided by the BID.
We have estimated that 74% of
commercial property owners
pay an assessment of $1,000 or less annually to receive supplemental cleaning
services, holiday lights and advocacy for a fair share of government
services. There is an annual assessment "floor" of $200, and a
maximum assessment cap of $5,000 to ensure costs are fairly
shared. Residential condo and co-op owners pay $1 per year
in assessments.
The Cost of Not Having a BID
For Chinatown, the improvements created by a BID
would help ensure the neighborhood's economic viability, keeping it
competitive with adjacent neighborhoods. Without a BID, enhanced
sanitation services and other programs will end by 2010, and likely many of the problems that plagued Chinatown in
the past will return.
Approximately
$1,900,000 in government funding
for Chinatown may be
redirected to another community without a BID to receive and
manage services.