complexity Business Improvement + opportunity Districts Increasing Value Presented by:

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1 complexity Business Improvement + opportunity Districts Increasing Value Presented by: Nancy Bird, AICP, AECOM Karen Selander, City of Seattle Kent Smith, LA Fashion District Patrick Edwards, San Diego BID Council National APA Conference April 15, 2012

2 challenge plan implementation Business Improvement Districts Increasing Value Crossroads Subarea Plan, Bellevue, WA

3 complexity time, money, resources

4 opportunity business improvement districts Billings, MT

5 panel insights overview of BIDs City of Seattle diversity and functions LA Fashion District economic development capacity San Diego BID Council measurable success opportunities lessons for planners

6 Business Improvement Districts Increasing Value Facts BID formation is on the rise 2,000 + Maintain cleaner and safer streets Reduce crime Increase rents and sales Decrease storefront vacancy rates Address social welfare issues Effective in reversing decline in neighborhoods Promotes equitable pay and service delivery for Successful BIDs have clear benefits for rate payers Grass roots

7 Business Improvement Districts Authorized by State Enabling Legislation / Enacted by City Councils Formed by a group of property or business owners Levy assessments on real property with a geographically defined area Supplements government services, similar to HOAs or CAMs Typically used for o Clean o Safe o Marketing Can also be used for o Capital improvements o Studies Board of Rate Payers governs focus tools for economic development

8 Business Improvement Areas At Work in Seattle City of Seattle Business Improvement Area Assistance Program

9 BIAs in Seattle EXISTING Downtown Capitol Hill Chinatown / International District Columbia City Pioneer Square University District West Seattle Junction Seattle Tourism Improvement Area IN PROGRESS Chinatown / International District (update) 23 rd & East Union Jackson Street Lake City City of Seattle BIA Assistance Program

10 Downtown Metropolitan Improvement District (MID) Budget: $5.5 million $0.29/$1000 of value + $0.31 / Lot Square Foot Activities:» Common area maintenance» Safety ambassadors» Marketing & special events» Research & market analysis» Professional management» Commute Seattle City of Seattle BIA Assistance Program

11 Capitol Hill Budget: $130,000 $2/$1000 of sales to $3,500 maximum Activities:» Common area maintenance» Street beautification» Winter lighting City of Seattle BIA Assistance Program

12 Chinatown / International District Budget: $191, / square foot; varies by type and location; different formulas for housing/hotels, parking, property and business owners, and others Activities:» Common area maintenance» Marketing and special events» Professional management City of Seattle BIA Assistance Program

13 Pioneer Square Budget: $157,000 $ /$1000 of sales; varies by type; $4000 maximum Activities:» Common area maintenance» Special events» Beautification» Professional management City of Seattle BIA Assistance Program

14 University District Budget: $124, /square foot; varies by type; $10,000 maximum Activities:» Common area maintenance» Security» Professional management City of Seattle BIA Assistance Program

15 West Seattle Junction Budget: $250,000 $ /$1000 of Sales; varies by type and location Activities» Parking management» Common area maintenance» Special events» Beautification» Professional management City of Seattle BIA Assistance Program

16 Columbia City Initial Budget: $50,000 Anticipated Budget: $85, / Property sq. ft / $1,000 Assessed Value Activities» Common area maintenance» Security» Beautification City of Seattle BIA Assistance Program

17 Seattle Tourism BIA Large Hotels Only Budget: $5-6 Million $2.00 / Occupied Room Night Activities: Increase Leisure Tourism, via:» Promotion» Advertising» Sales & Marketing» Professional Management City of Seattle BIA Assistance Program

18 Steps in Creating a BIA Core group Goals Work plan & Budget Assessment mechanism Marketing strategy» Major payers» Messages» One on one contacts» General meetings City legislative process City of Seattle BIA Assistance Program

19 Example Assessment Distribution 176 Property Owners $150,000 Annual Assessment 9 Owners = 68% of the Assessment ($100,000) Top 6 in room to design the formula $7,500 22,000 ea.) 97 Owners pay less than $150/year Reduced rate for industrial and warehouse uses 68% of Assessment City of Seattle BIA Assistance Program

20 Lessons Learned Involve the major payers early Base assessment on easily accessible data Make modifications where necessary, especially for major payers Realistic & strategic boundaries One-on-one outreach City of Seattle BIA Assistance Program

21 Business Improvement Areas At Work in Seattle City of Seattle Business Improvement Area Assistance Program

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23 Largest Geographic BID in Los Angeles 115 Blocks 941 Property Owners 1897 Parcels First BID in Los Angeles 1996 Since renewed 3 times $4 Million Revenue

24 Fashion District Boundaries

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28 San Pedro Wholesale Mart

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30 Santee Alley

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37 BID Growth since 1996 renewed 3 times Blocks 82 Blocks 96 Blocks 115 Blocks

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44 Social Media

45 Tree Trimming & Wayfinding

46 Completed Median

47 What s Next... Community Redevelopment Agency I LA Fashion District Design for Development Plan

48 L.A. Streetcar

49 We re working to help end homelessness

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51 Summary of Assessment Rates ZONE 1 ZONE 2 ZONE 3 ZONE 4 ZONE 5 ZONE 6 ZONE 7 STREET LINEAR FOOTAGE Per front ft. of sidewalk accessible space LAND AREA Per sq. ft. of land area BUILDING AREA Assessment on the building sq. ft. that exceeds land area sq. ft. ALLEY FOOTAGE Per front ft. of Santee Alley $24.54 $16.16 $14.92 $13.73 $11.30 $4.94 $13.97 $.221 $.128 $.128 $.093 $.070 $.022 $.132 $.017 $.017 $.017 $.017 $.017 $.017 $.017 North Alley - $ South Alley - $177.08

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53 Business Improvement Districts The Business Owner Perspective Building neighborhoods that work

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55 Profile: City of San Diego Population: 1.5m Neighborhoods*: 51 BIDs: 16 Micro BIDs: 11 Registered Businesses: 80,000 *Recognized Planning Group Boundaries by the City of San Diego.

56 Profile: North Park Population/Residents: 55,000 Population/Business : 300 Median Age: 34 Median Income: $37,000 *Recognized Planning Group Boundaries by the City of San Diego.

57 North Park MainStreet San Diego's first suburban commercial district: 100 years old 1985 BID Established (300 businesses) 1993 Historic North Park Sign restored 1996 BID receives a MainStreet designation from the National Trust of Historic Preservation 1997 Establishment of the Redevelopment PAC 1997 Maintenance Assessment District formed

58 Business Assistance Marketing commercial district Ensuring quality design and development Promoting historic preservation of commercial buildings Assisting developers and businesses navigate regulatory requirements Coordinating public safety and clean up campaigns Coordinating efforts to address transportation and parking issues Promoting North Park Art, Culture and Entertainment District Coordinating public safety and clean up campaigns

59 Promotions Business Owner Perspective: Promotions activities bring people together including: Farmer's Market weekly Festival of Arts (annual) 30,000 people Historic Toyland Parade (annual) Merchant Mixers Taste of North Park Concerts in neighborhood park

60 Business Growth Promoting historic preservation of commercial buildings Assisting developers and businesses navigate regulatory requirements Coordinating efforts to address transportation and parking issues Promoting North Park Art, Culture and Entertainment District Tenant mix, helps business types grow by seeking out businesses that compliment each other.

61 Contact Us Tiffany Bromfield, CEO W. Patrick Edwards, President of BID Council

62 application lessons for planners Westfield White City

63 Application Lessons for Planners BIDs are economic development tools Promote collaboration that can lead to larger visioning BID rate payers are a unified stakeholder group Significant opportunities for creative funding o Use of the assessment, o Leveraging the assessment, o Issuing bonds secured by future assessments, etc. BID actions often reveal progress in the short-term Ingredients for successful BIDs are similar to those for local plans

64 complexity Business Improvement + opportunity Districts Increasing Value Contacts: Nancy Bird, AICP, AECOM nancy.bird@aecom.com Karen Selander, City of Seattle karen.selander@seattle.gov Kent Smith, LA Fashion District kent@fashiondistrict.org Patrick Edwards, San Diego BID Council wpatrickedwards@gmail.com National APA Conference April 15, 2012