What is a BID?
A Business Improvement District (BID) is a non-profit organization that bands property and business owners together to bring significant improvements to a given commercial district and community.
What does a BID do?
A BID provides supplemental services and programs and advocates on behalf of the community, resulting in decreased vacancy rates, better competition with other commercial areas, and over time, possible increased property values.
What does a BID pay for?
Each BID funds supplemental services chosen to improve the overall economic health and vitality of the district. These services are non-duplicative to existing services provided by the City and City services do not change when a BID forms. Instead, a BID is able to provide additional services such as marketing and promotion, sidewalk cleaning, special events, holiday lighting, streetscape improvements and maintenance, and landscaping, bringing cleaner, more pedestrian friendly streets and sidewalks to its residents and visitors.
What will our BID do?
Based on responses from a Needs Assessment Survey conducted in late 2008, our BID will provide 1) marketing and promotion services to bring additional foot traffic to the Avenue: including development of a district logo, creation of additional special events, group advertising and PR, continuation of the shopping guide and website, creation of district banners to be displayed on lampposts, and holiday lighting; 2) beautification and streetscape improvements: including preservation of the historic lighting, continuation of the store signage program, and tree pit guard maintenance and plantings; 3) sanitation: sidewalk sweeping and litter removal; and 4) improved advocacy work: serving as a voice for the community on issues such as parking, development and more. The BID will hire a full-time professional Executive Director, experienced in grant-writing, fund-raising and advocacy.
Why do we need a BID now?
The efforts that attracted businesses, residents and shoppers to the Avenue can no longer continue on a volunteer basis. At this critical time and for the future, a BID is needed to provide a sustainable organization with professional staff that can continue to improve the district and maintain Atlantic Avenue as a competitive destination and successfully capture foot traffic from the many new hotel, residential and commercial developments. Additionally, the BID is committed to funding the maintenance of the historic lighting on Atlantic Avenue. Without those payments, the historic lighting will be removed by the Dept. of Transportation. Secondly, the Court Livingston Schermerhorn (CLS) BID has already taken a portion of Atlantic Avenue. If we do not form our own BID, the CLS BID could extend their BID further onto our Avenue. The minimum assessment for the CLS BID is $2,400/year, about four times higher than our average assessment. Finally, a BID is the strongest advocate for our community and will be needed to effectively advocate on behalf of the community during upcoming large-scale development and reconstruction projects including: the Atlantic Yards Arena and 17 high-rise towers, the possible doubling of the jail, and the BQE reconstruction project from Atlantic Ave to Sand St.
How is a BID financed?
In order to ensure a fair, sustainable effort, every property owner within the BID district is billed an annual assessment. Commercial leases include a pass-through clause, allowing property owners to pass the BID assessment on to their commercial tenants. The assessment is billed and collected by the City of New York and 100% of the funds are returned to the BID.
What about the BID already on Atlantic Avenue?
The Court Livingston Schemerhorn BID (CLS), which is part of the Downtown Brooklyn Partnership run by Joe Chan, occupies several blocks on Atlantic Avenue. If we do not form our own BID, the CLS BID could continue to annex pieces of our district. The choice is clear: we either form our own BID, allowing us to set our own priorities, or let another group decide for us.
What is the support to date?
Support for the BID has been overwhelmingly positive at 90%, with 133 ballots and counting in favor of the BID.
What is the proposed budget?
The proposed budget is $240,000. For a BID of our size, this is a rather modest budget. BIDs of similar size, such as the Myrtle Avenue Brooklyn Partnership BID in Fort Greene, have a $350,000 budget for a district with only 150 commercial properties, whereas our district will serve about 300 businesses. On the other hand, the CLS BID has a minimum assessment of $2,400, more than four times the average assessment of our proposed district.
What kind of funding is available to BIDs?
As a BID, we can go after significant grants and funding. For example, on Myrtle Ave. they have received a total of $6 million from various sources over the course of five years for the design and construction of a public plaza on Myrtle Avenue. On a more modest note, Flatbush Avenue received $5,000 from a local elected official for the restoration of the clock tower at the north end of their district, preserving the historic character of that neighborhood.
What will we pay as business & property owners?
Each commercial property will pay approximately $20.33 per frontal foot of property. This works out to an annual assessment of $508 for a 25-foot property, the average in our district, and is equal to a daily investment of $1.39 for all services provided by the BID. By law, residential property owners pay $1, while government, non-profit and religious organizations are exempt from paying the assessment.
How was the assessment determined?
The assessment must be fairly divided between all properties (determined by tax lot) on the Avenue. The Steering Committee, vetting many formulas, chose the one that was based on a reliable data point (frontal footage) and was the most fair for the most property owners.
Who benefits from the BID?
Property owners benefit because their commercial and residential spaces will be more desirable. Merchants will benefit from increased foot traffic and by being competitive with other retail areas. Service businesses will benefit because the district will be cleaner and more attractive to clients/customers. Realtors will benefit because the BID services will make the district a more desirable place to live, work and buy or rent property. Everyone will benefit because a BID is the strongest advocate recognized by City agencies and elected officials.
QUESTIONS RAISED DURING THE PUBLIC MEETING HELD ON FEB. 23, 2010:
Who pays – business or property owners?
The bill for the BID assessment is sent to property owners. However, commercial leases may contain a pass-through, allowing the assessment to be passed to commercial tenants.
Do side streets pay the same amount?
No, properties on side streets deduct $100 from the assessment amount. To find out your specific assessment amount, please contact Ariana MacPherson, AABID Project Manager, at aabidsteeringcommittee@gmail.com
Is the assessment tax deductible?
Yes, whether the property or business owner pays the assessment, it is considered a business expense and is tax deductible. However, it is still recommended that you check with your tax preparer regarding this expense.
Why wasn’t the square footage formula chosen?
Frontal footage is the most accurate and verifiable data point available to us. Additionally, many of the services to be provided are determined by the street footage, not the square footage of businesses, such as sidewalk sweeping, holiday lighting and banners for the district, solidifying our feeling that this was the most appropriate data point to use.
What protection do property owners have against increases in the budget and assessment?
In order for the budget to increase even one dollar, the BID Board of Directors must first approve a change. The proposed increase is then introduced as a new bill in the City Council and presented to the entire BID membership at the annual meeting. The legislation will only go into effect once it has been approved by both the City Council and the Mayor himself.
If the BID is approved, who makes up the Board of Directors?
The Board of Directors, elected by all members of the BID district, is made up of commercial property owners, commercial tenants, residents and public officials (including the Mayor, Comptroller, Borough President and a member of the city council who serve as de facto board members). BID members vote for directors in their respective classes (i.e. business owners vote for business owners) and the majority of directors must be property owners.
How will a BID give us clout with the City?
Because BIDs are a formal entity that will exist from one year to the next, City officials are more apt to listen to the requests and issues raised by BID staff than to individuals, giving them greater access to elected officials, funding and additional City services.
What will be the relationship between the BID and other organizations of the avenue?
AABA and the AALDC enthusiastically support the proposed Atlantic Avenue BID. The BID will take over the physical improvements, promotion and marketing activities currently provided by AABA and will work in cooperation with existing organizations to bring long-term economic growth to our district.
Can the BID issue a bond?
The proposed Atlantic Avenue BID does not have the capacity to issue a bond. The process of issuing a bond is complex and would require the retention of a specialized law firm whose fee would most likely cost many times more than our annual assessment. Furthermore, because our assessment is so low, it would be difficult, if not impossible, to find an underwriter.
Have you asked the business owners how they are doing during these tough economic times?
Yes. In late 2008, a needs assessment survey was walked to every commercial tenant within the district and numerous follow-ups were made. There was a link to the survey posted online and emails, containing a link to the survey, were sent to businesses requesting their response. This survey provided the perfect opportunity for business owners to express the state of their business during these tough times. In mid-2009, information packets containing a letter to all business owners, a brochure on the Atlantic Avenue BID, a support ballot and a flyer advertising a series of six informational meetings held throughout September of 2009, was mailed to every commercial tenant in the district. If mailings were returned with the wrong address, we made persistent efforts to secure the correct address. In the end, out of over 400 packets, only ten were returned. Lastly, we hand delivered flyers advertising our first official public meeting, held on February 23, 2010, to every commercial tenant in the district. Furthermore, members of the Steering Committee are volunteers who have worked many years to help businesses by identifying their needs and remain actively in touch with the businesses within the district. The Steering Committee is made up of businesses and property owners on the Avenue, and they are convinced that during tough economic times it is imperative to ensure a sustained marketing and advocacy effort.
If you have further questions or want to find out your specific assessment amount, please contact Ariana MacPherson, AABID Project Manager, at aabidsteeringcommittee@gmail.com
