A Business Improvement District (BID) is a geographical area where local stakeholders oversee and fund the maintenance, improvement, and promotion of their commercial district.
What BIDs Do
BIDs create vibrant, clean, and safe districts. They deliver services and improvements above and beyond those typically provided by the City. These services can include:
- Street cleaning and maintenance
- Public safety and hospitality
- Marketing and events
- Capital improvements
- Beautification
- Advocacy
- Business development
BID services do not replace those provided by the City. By law, City services cannot be reduced because of the existence of a BID.
BIDs help to brand their districts and market small businesses on their corridor. They facilitate networking among merchants, host community events, and advocate for improvements to the district.
BIDs also serve as a liaison between local businesses and stakeholders and the City government. In doing so, BIDs provide a collective voice for the neighborhood and help inform City policy based on their unique local knowledge.
BID Oversight & Management
Each BID is run by a not-for-profit organization with a Board of Directors. Elected by members in the district, the Board must include property owners, merchants, residents, and representatives of local elected office. The Board is in charge of making key decisions about programs and services, budget, goals, policies, and staffing.
BID Funding
BID programs and services are funded by a special assessment billed to property owners within a district. Assessments are unique to each BID and decided upon by the BID’s stakeholders. The City assists with the collection of the special assessment, which in turn, is distributed directly to the BID. The BID receives 100% of the money collected.
On average, assessments make up 75% of BID budgets. Most BIDs also fundraise, apply for grants, and generate revenue from programs to support the services they provide.
Source: https://www1.nyc.gov/site/sbs/neighborhoods/bids.page