BIDs can revitalize downtowns, lift burdens from municipal governments

The leaders of business improvement districts in Philadelphia, Yonkers and Ithaca say the three cities have dynamic and energic downtowns because property owners were willing to invest in areas that their municipal governments couldn’t address.

“Part of the reason we exist is to do the work that is harder for our government partners to accomplish,” said Nan Rohrer, CEO, Downtown Ithaca Alliance. “Downtowns are everybody’s downtown, and BIDs help provide a safe experience and a fun experience.”

Civic and business leaders in Rochester are pushing for formation of a business improvement district (BID) for a large swath of downtown. When a BID is implemented, property owners essentially tax themselves and the BID’s board, which is comprised of building owners, business owners and residents, then determines how those resources are allotted.

Backed by Partnership for Downtown Rochester and the Rochester Downtown Development Corp., organizers say an entity focused strictly on the central business district will enhance the viability of commerce, increase tourism and make the neighborhood more attractive to residents.

Paul Levy agrees. Levy is the founding president and outgoing CEO of Center City Philadelphia, the BID that has had oversight in the City of Brotherly Love for the past 30 years.

“There are those who say, ‘This is the city’s job, why should I do that? I already pay too much in taxes to a government that I can’t trust to do the job,’ ” Levy said.

“But the status quo, if left alone, will undermine the vitality of city centers.”

The first BID was formed in Toronto by a group of business owners on Bloor Street in 1977. Since then, more than 1,000 have been formed across North America.

“I’m surprised it’s taken so long to float across the lake,” Levy said of Rochester’s lack of a downtown BID.

Center City Philadelphia launched in 1990. The goal was to enhance quality of life and the competitiveness of the downtown district.

“If a retailer has no advertising budget, how can they compete with a regional mall?” Levy said.

Philadelphia had what was primarily a 9-to-5 downtown with some residential units, but since the launch of the Center City BID, there have been major investments in the arts, a convention center opened in 1994 and a regional marketing initiative began in 1997, he said.

Over the years, 10 million square feet of office space has been converted to apartments and condominiums, Levy said.

“The economic base of the district has dramatically diversified,” he said.

When Center City Philadelphia was formed, fees from members provided a $6.5 million budget. Today, the budget is $31 million.

“We did not raise rates,” Levy said. “That’s the rise in value (of properties).”

The organization also has staying power. Under Pennsylvania law, reauthorization of a BID is required every five years through a vote of property owners. If one-third of the property owners are opposed, the BID is dissolved. That means two-thirds of the stakeholders must be in favor of continuation.

The city of Yonkers sits along the Hudson River in Westchester County. The Downtown Waterfront Business Improvement District of Yonkers was formed in 2002.

“We’re showcasing the neighborhood,” said Sara Brody, executive director of the Yonkers BID. “We handle events, provide supplemental cleaning and maintenance, beautification services, and we provide economic development for the 250 businesses in the district.

“When you have someone advocating for you, you become an attractive area.”

Because of beautification and efforts to enhance safety, downtown Yonkers has become a far more desirable place to visit and live, and the arts community is now thriving, she said.

“There was mostly only low-income housing before,” Brody said. “Now it’s a combination of market rate, affordable housing and Section 8. The neighborhood and the good of the people and businesses are at the forefront of what we do.”

In Ithaca, businesses within the Downtown Ithaca Alliance expressed concern about viability during the week. They did fine on weekends, Rohrer said, but traffic Monday through Wednesday was far too light.

Over time that discussion blossomed into creation of the soon-to-open Downtown Ithaca Conference Center, an 11-story building that includes retail space and 181 affordable-rate apartments.

“There’s a visionary component and a reactionary component to what we do,” Rohrer said.

Not everyone believes BIDs are beneficial. In Rochester, opponents have formed No BID ROC, saying the organizations are bad for small business, bad for renters and bad for inclusivity and neighborhood identity.

“But I’ve seen it go both ways,” said Rohrer, who previously was associated with BID activities in Baltimore for two decades before taking over in Ithaca in July. “I’ve seen property owners upset because they weren’t included in the district, because they understand the benefits of the cleaning and greening and hospitality services.”

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