Map of the 3rd District by Sura, December 4

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4 Dec 2007 | 4:47 pm | Questions from Constituents, 3rd District

2 comments

1. sally nordstrom wrote:
   January 30, 2008 at 7:15 pm

   Hi, Sura. This is a question rather than a comment. I just read the NE Side Plan you forwarded. Would you please list some pros and cons of BIDs, and where do you stand on BIDs for Riverwest?

2. Sura wrote:
   February 4, 2008 at 12:57 am

   The Northeast Side Area Plan Draft Chapters can be found here www.mkedcd.org/planning/plans/Northeast/plan.html

   According to Milwaukee’s Department of City Development (DCD), Business Improvement Districts (BIDs) are defined as areas where “property owners in designated geographic areas voluntarily collect annual assessments that are spent on projects that enhance the local business environment. These may include improvements to the streetscape, marketing efforts, business recruitment activity, and security programs.”

   Essentially, a BID is a public/private partnership which can be created on a street or in a larger area. I support the collective aspect of it. I think the idea of pooling wealth and assets is good for community. However, there are some caveats.

   I am concerned about how Milwaukee creates BIDs. It’s actually possible for a minority of property owners to create a BID even though it’s not approved by the majority. This is because it’s based on the lack of disapproval by, I believe, 40% of property owners. In other words, if 40% don’t oppose it, then the BID is approved by the city.

   First—in general on BIDs—I think their creation should be based on support, and not on lack of opposition. Second, I think the support should be clear and abundant—I’d make 70% the threshold so that stronger consensus is built around the self-imposed tax. Third, I’d make sure that all the business owners (who may be renters and not property owners) are incorporated into the decision-making. Fourth, I’d have some healthy public discussions about the potential benefits and dangers, so that all involved understand both the benefits and the risks.

   As I see it, potential benefits include power through organizing the collective strength and wealth; being proactive in affecting change instead of waiting for the city to do something about it; and creating tangible results that increase the perception of safety.

   Potential risks include spending money and not improving the business climate; and the privatization of public spaces in policing and street maintenance (which creates questions of whether public rights, like free speech, are still upheld in privately-controlled areas or if private security can move “disruptive” people out of the BID controlled area).

   Additionally, I think there should be some public opportunities for residents to be educated as to how decisions are made, how taxes are collected and if those two are correlated. Other questions include: Are taxes or votes based on square footage or on frontage? Are business owners who rent more adversely affected than those who own? Are BID finances and records open to the public? Can anyone join the BID? Can someone opt out? Is there a mechanism for limiting the power of BIDs? or as they get bigger, does their public reach grow further? Do areas with BIDs get more attention while other neighborhood business or residential areas are ignored?

   Regarding a BID in Riverwest, efforts over the years have failed because of lack of support. I think answering some of the concerns of stakeholders regarding taxation, transparency, public space issues, and equitable taxation might go a long way in alleviating worries. Ending comparisons of Center St. to Brady St. would be a necessary first step. Each street or area should have its own flavor. Let’s let Center Street be Center Street!

   Bottom line—I would be supportive if property and business owners and residents are supportive.

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