BIDs are governed by Chapter 4 of Title 25 of the New York City Administrative Code. The process is set in law and it runs through the same institutions that handle land use.
The steps
- Local property owners, merchants and civic groups form a steering committee and work with the Department of Small Business Services to write a district plan: the boundaries, the services, the budget, and the formula for how the assessment is calculated.
- The district plan goes first to the City Planning Commission, which forwards a copy to the City Council and to the affected community board within five days.
- The community board notifies the public, may hold a public hearing, and may submit a written recommendation to the City Planning Commission within 30 days of receiving the plan.
- The Commission reviews the plan and the recommendations, holds a public hearing, and prepares a report. It sends that report to the Mayor, the borough president, the City Council and the affected council members, with copies of any community board recommendation, within 60 days of the close of the board's review period.
- The City Council votes a local law establishing the district. The Mayor signs it. That local law is what brings the BID into existence.
Who runs it once it exists
Day to day operations belong to a district management association, a nonprofit board. Under the Administrative Code, a majority of that board must represent property owners, and tenants of both commercial space and dwelling units must be represented as well. Four more seats are appointed: one each by the Mayor, the Comptroller, the borough president, and the council member representing the district. When a BID spans more than one council district, that fourth appointment is made by the Speaker of the City Council after consulting the council members involved.
Who pays
The assessment is levied on property inside the district, billed and collected by the city, and then passed through to the BID, which delivers the services. Many commercial leases let a landlord pass the assessment on to the tenant.
What has to go back to the Council
Amending a district plan, expanding boundaries, or raising an assessment all require returning to the City Council. A BID is not a one-time decision. It is a standing relationship between a commercial corridor and city government.
Sources: NYC Administrative Code, Title 25, Chapter 4. NYC Department of Small Business Services.