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Business improvement districts in the United States

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Business improvement districts in the United States (BIDs), also known as local improvement districts (LIDs), are United States special districts within a city that are overseen by a nonprofit entity. In the United States, business improvement districts are typically funded by an additional tax assessment, with the tax increase going toward improvements of the area.

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60-632: By 2010, BIDs had been used in nearly 1,000 major cities and small towns throughout the United States, including most major U.S. cities that have multiple BIDs. New York City alone has 76 BIDs. Business improvement districts are private sector initiatives to improve the environment of a business district. Services financed by a BID are intended to enhance existing city services, not replace public works or economic development departments. The International Downtown Association (IDA) 2011 BID census report states that all US states except Wyoming, including

120-498: A LID created in 2018. The following steps are required to establish a BID in Wisconsin: Private sector The private sector is the part of the economy which is owned by private groups, usually as a means of establishment for profit or non profit , rather than being owned by the government . The private sector employs most of the workforce in some countries. In private sector, activities are guided by

180-619: A nonprofit agency. BIDs provide an array of services to keep districts clean and managed to improve mix of activities, transportation, and aesthetics of public places. Business Improvement Districts became widely noted after their success in transforming Times Square and Union Square in New York City from places abandoned and filled with crime into dynamic neighborhoods. They are based on the premise that making attractive commercial districts will attract shoppers and make an environment conducive to thriving businesses. Often, BIDs are formed as

240-679: A number of inequities, the Northern Ireland Civil Rights Association was founded in 1967. It had five primary demands, and added the demand that each citizen in Northern Ireland be afforded the same number of votes for local government elections (as stated above, this was not yet the case anywhere in the United Kingdom). The slogan "one man, one vote" became a rallying cry for this campaign. The Parliament of Northern Ireland voted to update

300-429: A profit. Today, corporate-run prisons hold eight percent of America's inmates. Since it is from the private sector, their main priority is not rehabilitation, but profit. This has resulted in many human rights violations across the United States. One person one vote " One man, one vote " or " one vote, one value " is a slogan used to advocate for the principle of equal representation in voting. This slogan

360-459: A result of property owners in a defined district who seek funding for a variety of services, including governmental services such as cleaning and maintenance, non-governmental services such as marketing and promotion or beautification, and the implementation of capital investments. Most states rule that a BID must be governed by a board of directors that are composed of a certain percentage of property owners, business owners, and residents that are in

420-510: A resulting change in the number of seats to which that state was entitled in the House of Representatives. In many states, both North and South, this inaction resulted in a skewing of influence for voters in some districts over those in others, generally with a bias toward rural districts. For example, if the 2nd congressional district eventually had a population of 1.5 million, but the 3rd had only 500,000, then, in effect – since each district elected

480-442: A strong desire for more inclusive, equitable development practices. This case illustrates the complexities and local resistance that can arise with BID proposals, underscoring the importance of community planning efforts that originate from the communities they are meant to serve. The districts are areas within a municipality where some form of revenue generation is legally enforced to provide services for area, beyond those offered by

540-580: Is defined in terms of the North Carolina State Statute as projects that include, but are not limited to improvements in water, gas, storm, and sanitary sewer mains, power lines, improved lighting, streets and sidewalks (including easements and right of way ), construction of walkways, pedestrian-friendly areas or malls, bike paths, parking facilities and traffic congestion relief. Intangible improvements include reduction of crime, public health, safety and welfare improvements, promoting

600-710: Is used by advocates of democracy and political equality , especially with regard to electoral reforms like universal suffrage , direct elections , and proportional representation . The violation of equal representation on a seat per vote basis in various electoral systems can be measured with the Loosemore–Hanby index , the Gallagher index , and other measures of disproportionality. The phrase surged in English-language usage around 1880, thanks in part to British trade unionist George Howell , who used

660-645: The Civil Rights Movement to restore the ability of African Americans in the South to register and vote highlighted other voting inequities across the country. In 1964–1965, the Civil Rights Act of 1964 and Voting Rights Act of 1965 were passed, in part to enforce the constitutional voting rights of African Americans . Numerous court challenges were raised, including in Alabama, to correct

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720-660: The Equal Protection Clause of the constitution, the U.S. Supreme Court majority opinion (5–4) led by Chief Justice Earl Warren in Reynolds v. Sims (1964) ruled that state legislatures, unlike the U.S. Congress , needed to have representation in both houses that was based on districts containing roughly equal populations, with redistricting as needed after the decennial censuses. Some states had established an upper house based on an equal number of representatives to be elected from each county, modelled after

780-712: The House of Lords ), and also reduced and finally eliminated plural voting for Westminster elections. Plural voting for local-government elections outside the City of London was not abolished until the Representation of the People Act 1969 . When Northern Ireland was established in 1921, it adopted the same political system then in place for the Westminster Parliament and British local government. But

840-586: The Northern Territory . Historically, all states (other than Tasmania) have had some form of malapportionment , but electoral reform in recent decades has resulted in electoral legislation and policy frameworks based on the "one vote, one value" principle. However, in the Western Australian and Queensland Legislative Assemblies, seats covering areas greater than 100,000 square kilometres (38,600 sq mi) may have fewer electors than

900-597: The Parliament of Northern Ireland did not follow Westminster in changes to the franchise from 1945 . As a result, into the 1960s, plural voting was still allowed not only for local government (as it was for local government in Great Britain), but also for the Parliament of Northern Ireland. This meant that in local council elections (as in Great Britain), ratepayers and their spouses, whether renting or owning

960-666: The United States House of Representatives among the states, based on their population. Reapportionment has generally been conducted without incident with the exception of the reapportionment that should have followed the 1920 census , which was effectively skipped pending resolution by the Reapportionment Act of 1929 . State legislatures , however, initially established election of congressional representatives from districts that were often based on traditional counties or parishes that had preceded founding of

1020-411: The one person one vote principle. The ruling opposed the resident's claim, stating that a BID can have different voting classes because the results are disproportionate among property owners. Property owners and people within the district who oppose a BID may see it as an attempt to delegate control of public space to the private sector. Without government accountability (elections), it is difficult for

1080-569: The District of Columbia, have at least one BID. The 2011 IDA report states that, at the time, there were 1,002 BIDs in the United States. As of 2010, North Dakota passed senate bill 2356 to appeal section 40-22.1-01 of the North Dakota Century Code to allow special tax assessment districts in the state. In Rochester, NY, a proposed Business Improvement District (BID) faced significant community opposition that ultimately led to

1140-602: The Senate with two representatives, without regard to population. The Founding Fathers considered this principle of such importance that they included a clause in the Constitution to prohibit any state from being deprived of equal representation in the Senate without its permission; see Article V of the United States Constitution . For this reason, "one person, one vote" has never been implemented in

1200-601: The U.S. Senate, in terms of representation by states. When states established their legislatures, they often adopted a bicameral model based on colonial governments or the federal government. Many copied the Senate principle, establishing an upper house based on geography - for instance, a state senate with one representative drawn from each county. By the 20th century, this often resulted in state senators having widely varying amounts of political power, with ones from rural areas having votes equal in power to those of senators representing much greater urban populations. Activism in

1260-477: The US Senate. Because of changes following industrialization and urbanization, most population growth had been in cities, and the bicameral state legislatures gave undue political power to rural counties. In the 1964 Wesberry v. Sanders decision, the U.S. Supreme Court declared that equality of voting—one person, one vote—means that "the weight and worth of the citizens' votes as nearly as is practicable must be

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1320-750: The United States Supreme Court under Chief Justice Earl Warren overturned the previous decision in Colegrove holding that malapportionment claims under the Equal Protection Clause of the Fourteenth Amendment were not exempt from judicial review under Article IV, Section 4 , as the equal protection issue in this case was separate from any political questions. The "one person, one vote" doctrine, which requires electoral districts to be apportioned according to population, thus making each district roughly equal in population,

1380-510: The United States, the "one person, one vote" principle was invoked in a series of cases by the Warren Court in the 1960s during the height of related civil rights activities. By the second half of the 20th century, many states had neglected to redistrict for decades, because their legislatures were dominated by rural interests. But during the 20th century, population had increased in urban, industrialized areas. In addition to applying

1440-438: The United States, with 76 BIDs within the city. New York City's BIDs invest over $ 158 million in programs and services in their respective districts. New York's BID movement began in the 1960s when business owners and residents realized public resources were limited to improve commercial areas. In 1976, the first Special Assessment District legislation was passed, noting that the city would make capital improvements for an area under

1500-558: The abandonment of the effort in March of 2024. Critics, including local artists, community advocates, and working-class residents, raised concerns about the potential for BIDs to prioritize the interests of wealthy property owners over those of the broader community. Key issues cited included concerns of increased gentrification, displacement of low-income residents, and the allocation of resources to projects not aligned with community needs. Pushback from community members and activists highlighted

1560-536: The additional tax. Critics are also concerned about the spillover of crime that may be diverted, and then concentrated outside of the BID districts, particularly in larger cities with BIDs that focus on security and crime prevention. In Kessler Vs. Grand Central District Management Association , residents within the Manhattan BID argued that the election of board members were not completed fairly in accordance with

1620-425: The budget can be appropriated to, making the abuse of power less likely. The small amount of stakeholders also limits the risk of corruption, with more individuals keeping watch of the activities managed by the BID A Study of New York BIDs revealed that commercial properties within the defined areas of a business improvement district sold for 30.7 percent more than comparable properties in the same area but outside of

1680-555: The business vote continued for elections to the House of Commons of Northern Ireland until 1969. They were abolished in 1948 for elections to the UK House of Commons (including Westminster seats in Northern Ireland). Historians and political scholars have debated the extent to which the franchise for local government contributed to unionist electoral success in controlling councils in nationalist -majority areas. Based on

1740-528: The condition that property owners would maintain them, the first Special Assessment District was Fulton Mall in Brooklyn. In 1981-1982, legislation was passed for property owners to levy taxes in self-funding Business Improvement Districts. In Portland, Oregon , local improvement districts are typically used to pave streets. Local improvement districts are codified in the Revised Code of Washington ;

1800-425: The constituencies varied widely, with different qualifications over time, such as owning property of a certain value, holding an apprenticeship, qualifying for paying the local-government rates, or holding a degree from the university in question. Those who qualified for the vote in more than one constituency were entitled to vote in each constituency, while many adults did not qualify for the vote at all. Plural voting

1860-557: The decades in which state legislative districts had not been redefined or reapportioned, resulting in lack of representation for many residents. In Colegrove v. Green , 328 U.S. 549 (1946) the United States Supreme Court held in a 4–3 plurality decision that Article I, Section 4 left to the legislature of each state the authority to establish the time, place, and manner of holding elections for representatives. However, in Baker v. Carr , 369 U.S. 186 (1962)

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1920-665: The district boundaries. This study implies that the positive effects are exacerbated in larger BIDs, made of mostly office space, with larger budgets. Critics of Business Improvement Districts are concerned that there are few restrictions as to what the revenues going toward the BID will fund. With the limited restrictions, property owners within the district may be required to fund services that they do not particularly want or need. In many places, BIDs are independent organizations and are not required to report extensively to their local government and stakeholders. This lack of accountability can be concerning to residents and property owners paying

1980-450: The district by tax assessments and bonds to cover additional maintenance, security, and management of the district. Chapter 2 of the Act allows private property owners within a Business Improvement Zone (BIZ) to levy special assessments to finance programs that are established in a zone plan, over a period of seven years. New York City has the largest network of Business Improvement Districts in

2040-456: The district through a board of directors that is composed of business and property owners located within the district. All property owners, lessees and residents within the district are given the opportunity to vote for the tax in their district. By result of Public Act 120 of 1961 , cities and townships in Michigan can establish a BID within a defined area. The municipality is allowed to fund

2100-462: The district, as well as public officials. Studies have shown a reduction in crime within the district boundaries. One study found that there was a 12% reduction in robbery and an 8% total crime reduction within the boundaries of the BID in Los Angeles. There is no agreed upon standard for accountability for BID management organizations, but they are held accountable due to the limitations of what

2160-486: The economic vitality of the district. Downtown revitalization can also include sponsoring of events, marketing or promotions to promote the district internally and externally. In California, there are 3 primary types of BIDs all of which have their own standards for assessments and require different legal actions. In California, the payments made by the businesses and property owners within the districts are technically "fees" and not "taxes." Due to Proposition 13 , adopted by

2220-477: The general tolerance would otherwise allow. The following chart documents the years that the upper and lower houses of each Australian state parliament replaced malapportionment with the 'one vote, one value' principle. The Whitlam Labor government proposed to amend the Constitution in a referendum in 1974 to require the use of population to determine the size of electorates rather than alternative methods of distributing seats, such as geographical size. The bill

2280-662: The motive to earn money, i.e. operate by capitalist standards. A 2013 study by the International Finance Corporation (part of the World Bank Group ) identified that 90 percent of jobs in developing countries are in the private sector. In free enterprise countries, such as the United States , the private sector is wider, and the state places fewer constraints on firms. In countries with more government authority, such as China ,

2340-421: The municipal and county services. BID formation varies on a state-by-state level, and are also referred to as neighborhood improvement districts, special improvement districts, or local improvement districts. Depending on state statute, business improvement districts can be funded a variety of ways, including through a tax assessment or mill levy or Tax Increment Financing on property tax, and then managed by

2400-424: The new government. The question then arose as to whether the legislatures were required to ensure that House districts were roughly equal in population and to draw new districts to accommodate demographic changes. Some U.S. states redrew their House districts every ten years to reflect changes in population patterns; many did not. Some never redrew them, except when it was mandated by reapportionment of Congress and

2460-516: The phrase "one man, one vote" in political pamphlets. During the mid-to-late 20th-century period of decolonisation and the struggles for national sovereignty, this phrase became widely used in developing countries where majority populations sought to gain political power in proportion to their numbers. The slogan was notably used by the anti-apartheid movement during the 1980s, which sought to end white minority rule in South Africa . In

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2520-418: The population of the state. Currently, for the House of Representatives, the number of enrolled voters in each division in a state or territory can vary by up to 10% from the average quota for the state or territory, and the number of voters can vary by up to 3.5% from the average projected enrolment three-and-a-half years into the future. The allowable quota variation of the number of electors in each division

2580-519: The property, could vote, and company directors had an extra vote by virtue of their company's status. However, unlike the situation in Great Britain, non-ratepayers did not have a vote in local government elections. The franchise for elections to the Parliament of Northern Ireland had been extended in 1928 to all adult citizens who were not disqualified, at the same time as the franchise for elections to Westminster. But, university representation and

2640-432: The public at large, and the properties may only be assessed an amount proportional to the special benefit it receives. Colorado’s Business Improvement District Law of 1988 includes key provisions that allow BIDs to provide a wide variety of services, including public safety, planning, events, and parking management, those services are provided by private sector organizations. The law holds BIDs accountable to all payees into

2700-613: The public sector makes up most of the economy. States legally regulate the private sector. Businesses operating within a country must comply with the laws in that country. In some cases, usually involving multinational corporations that can pick and choose their suppliers and locations based on their perception of the regulatory environment, local state regulations have resulted in uneven practices within one company. For example, workers in one country may benefit from strong labour unions , while workers in another country have very weak laws supporting labour unions, even though they work for

2760-568: The public to make a change in the actions that the BID managing organization controls. North Carolina State Statute names Business Improvement Districts, or other taxing districts Municipal Services Districts (MSD). Municipal Services Districts or BIDs in North Carolina can only be funded by an ad valorem tax, meaning the city can levy an additional tax on all property within the designated district. The process for which MSDs, or Business Improvement Districts, are formed, begins with defining

2820-475: The same employer. In some cases, industries and individual businesses choose self-regulation by applying higher standards for dealing with their workers, customers, or the environment than the minimum that is legally required of them. There can be negative effects from the private sector. In the early 1980s, the Corrections Corporation of America pioneered the idea of running prisons for

2880-532: The same number of enrolled voters (not residents or population), within a specified percentage of variance. The electoral laws of the federal House of Representatives , and of the state and territory parliaments, follow the principle, with a few exceptions. The principle does not apply to the Senate because, under the Australian constitution , each state is entitled to the same number of senators, irrespective of

2940-464: The same number of representatives – a voter in the 3rd district had three times the voting power of a 2nd-district voter. Alabama's state legislature resisted redistricting from 1910 to 1972 (when forced by federal court order). As a result, rural residents retained a wildly disproportionate amount of power in a time when other areas of the state became urbanized and industrialized, attracting greater populations. Such urban areas were under-represented in

3000-472: The same". They ruled that states must draw federal congressional districts containing roughly equal represented populations. This phrase was traditionally used in the context of demands for suffrage reform. Historically the emphasis within the House of Commons was on representing areas : counties, boroughs and, later on, universities . The entitlement to vote for the Members of Parliament representing

3060-409: The service area. The report must first express the need for why the proposed area requires the benefits of a special district, as opposed to the remainder of the city. A report must be prepared with a map of district boundaries, statement of purpose for the district, and a plan for how the district is formed. The report is then open for public hearing, prior to adopting the plan. Downtown Revitalization

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3120-466: The state legislature and underserved; their residents had difficulty getting needed funding for infrastructure and services. Such areas paid far more in taxes to the state than they received in benefits in relation to the population. The Constitution incorporates the result of the Great Compromise , which established representation for the U.S. Senate. Each state was equally represented in

3180-448: The term "local improvement district" appeared in 1981 legislation. In Seattle , Washington, LIDs authorized by state law have been applied for a variety of large projects. The South Lake Union Streetcar was funded through $ 25 million in LID funds derived from a local property tax . The redevelopment of the city's waterfront is expected to be funded using a $ 200 million property tax through

3240-406: The voters in 1978, California State statute no longer allows for ad valorem assessment (i.e., based on property value). As a result of Proposition 218 (1996), BIDs may no longer assess their participating businesses and property owners for general governmental services, but are limited to assessing fees for provision of special benefits to the affected properties over and above those conferred to

3300-543: The voting rules for elections to the Northern Ireland House of Commons, which were implemented for the 1969 Northern Ireland general election , and for local government elections, which was done by the Electoral Law Act (Northern Ireland) 1969 , passed on 25 November 1969. The United States Constitution requires a decennial census for the purpose of assuring fair apportionment of seats in

3360-465: Was also present in local government, whereby the owners of business property qualified for votes in the relevant wards . Reformers argued that Members of Parliament and other elected officials should represent citizens equally, and that each voter should be entitled to exercise the vote once in an election. Successive Reform Acts by 1950 had both extended the franchise eventually to almost all adult citizens (barring convicts , lunatics and members of

3420-624: Was further affirmed by the Warren Court in the landmark cases that followed Baker , including Gray v. Sanders , 372 U.S. 368 (1963), which concerned the county unit system in Georgia; Reynolds v. Sims , 377 U.S. 533 (1964) which concerned state legislature districts; Wesberry v. Sanders , 376 U.S. 1 (1964), which concerned U.S. congressional districts; and Avery v. Midland County , 390 U.S. 474 (1968) which concerned local government districts. The Warren Court's decision

3480-627: Was not passed by the Senate and instead the referendum was put to voters using the deadlock provision in Section 128 . The referendum was not carried, obtaining a majority in just one State and achieving 47.20% support, an overall minority of 407,398 votes. In 1988, the Hawke Labor government submitted a referendum proposal to enshrine the principle in the Australian Constitution . The referendum question came about due to

3540-579: Was reduced from 20% to 10% by the Commonwealth Electoral Act (No. 2) 1973 , passed at the joint sitting of Parliament in 1974. The change was instigated by the Whitlam Labor government . However, for various reasons, such as the constitutional requirement that Tasmania must have at least five lower house members, larger seats like Cowper (New South Wales) comprise almost double the electors of smaller seats like Solomon in

3600-499: Was upheld in Board of Estimate of City of New York v. Morris , 489 U.S. 688 (1989). Evenwel v. Abbott , 578 U.S. 2016, said states may use total population in drawing districts. In Australia , one vote, one value is a democratic principle, applied in electoral laws governing redistributions of electoral divisions of the House of Representatives . The principle calls for all electoral divisions to have

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