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.
WHY IS MY SUPPORT IMPORTANT?
BIDs are grass-roots, community-driven organizations that require legislative authorization to be established. It is the policy of the City to establish a new BID only after a substantial level of support from stakeholders in the district has been documented. With your support, a BID can be established to improve conditions in your neighborhood and have a direct, positive effect on your business.
WHY FORM A BID?
The purpose of a BID is to improve conditions for business in a specific area, attract and retain businesses, generate jobs and improve the quality of life for those who use the district. A BID enables stakeholders to decide which services to provide to meet the district’s unique needs.
These BID services for the FAB Alliance include:
Maintenance Public Safety / Hospitality
Street / sidewalk cleaning
Public safety officers
Business Development / Marketing
Commercial vacancy reduction
Marketing & Promotional Materials
Special Events/Holiday Planning & Decorations
Open space maintenance
Treepit / flower planting
Custom street furniture
The BID’s services supplement the services already provided by the City of New York.
HOW IS A BID FUNDED?
BID programs and services are underwritten by a special assessment collected from property owners in the defined boundaries of the district. The assessment is levied on the property-owners, who may then pass it on to their tenants, IF their lease contains such a provision. The assessment is billed and collected by the City of New York and then disbursed to the District Management Association who in turn delivers the district’s services.
WHAT IS THEAVERAGE ASSESSMENT? HOW MUCH WILL I PAY?
The BID assessment is a fee that each property owners pays to support the operations of the BID. The sum of all the individual assessments that property owners pay comprise the total yearly assessment (operating budget) of the BID. The FAB Alliance BID has a total budget of $300,000 with an assessment rate of $48 per front footage. The average cost for a 20 front foot storefront is $960 per year, $80 per month or $2.66 per day.
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 the fiduciary responsibility and hires management to administer 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. BID members vote for directors in their respective classes. The majority of directors must be property owners. The Mayor, Comptroller, Borough President and a member of the City Council are defacto board members.
WHAT IS A DISTRICT MANAGEMENT ASSOCIATION?
The District Management Association (DMA) is the formal name of the legal entity that is the BID.
HOW CAN I BE INVOLVED?
There are many ways to become involved with the FAB Alliance BID such as serving on the to-be-established Board of Directors or working on a special project once BID services are running. Currently the Interim Board of Directors is working diligently planning for the establishment of the District Management Association (DMA) – or the formal legal nonprofit entity that will run the management of the FAB Alliance. Once the DMA is established a open nomination and voting process will take place to name the permanent Board of Directors.
For more information on the FAB Alliance BID, please send your inquires to email@example.com.