On March 9, a "Local Mayors Speak" podcast on WHMP promoted itself as containing "strong words" from Northampton Mayor Clare Higgins "for those who oppose the Business Improvement District." The BID, as it's called, is one City Council vote away from approval for that city's downtown.
Unfortunately, neither the mayor's words, her arguments, nor her understanding of the opponents' positions were as stalwart as promised.
"I hope that the BID passes," the mayor said, "and I hope that those businesses that are downtown who could benefit will stay involved and not opt out. … We want to build that infrastructure so downtown can be successful, and I think that's what the BID can do."
BIDs are comprised of the property within the designated district and they are managed by the owners of those properties, not the business owners. While businesses that rent space from participating landlords may enjoy the benefits of a BID, unless they own the property themselves, they have no choice in whether or not they're members and what's done with the money they pay in the form of higher rents. In all but the handful of cities in Massachusetts that have BIDs, downtowns rely on the existing infrastructure of the local government and the Chamber of Commerce for their success, rather than creating a new bureaucracy only a select few have any control over.
According to BID proponents, the annual $935,500 budget for the Northampton BID is broken down thus: $296,500 (35 percent) for maintenance; $254,000 (25 percent) for marketing; $142,100 (15 percent) for public safety; $110,798 (12 percent) for special projects; $132,200 (14 percent) for administration. Only $675,600 of the budget comes from fees levied from property owners, leaving nearly a third to come from in-kind services and contributions from nonprofits and public properties included in the district. The only non-taxpaying entity to enter into a specific agreement with the BID is the city, which is giving $35,000 of public funds annually for general use and $50,000 on the behalf of the Academy of Music. It's not known yet where $175,000 of the budget is coming from.
Kelsey Flynn, a reporter for radio station WHMP, asked the mayor, "What do you say to the opponents who say how [the BID is] structured is not going to be as effective with all the money going to administrative costs or marketing, and not really about downtown?"
"I don't agree with them," the mayor replied. "All the money isn't going into marketing and administrative costs. There's a fair amount going into cleanup, and some other things like that. … Finally, I'd say to them: Get involved. Help shape the budget, because it's shaped by the members of the BID. … But the budget can be changed by a vote of the BID Board: get involved."
The problem with this "strong" advice is that many of those who oppose the formation of the BID will never have an opportunity to "get involved" even if they wanted to—unless they buy property within the improvement district. How the nearly million dollars will be spent each year will be up to the board elected by the property owners from their own ranks. Even though the mayor has committed city resources to the BID, she has done so without consulting the City Council or the public. While the Council is given the opportunity to vote on the BID now, once it's passed, only those that own property will have a direct say in its governance.
Further, many Northampton BID proponents have pointed out that if a property owner doesn't agree with the BID, they can opt out. Massachusetts is the only state with an initial opt-out option. Currently, though, Massachusetts BID participant cities and legislators are discussing eliminating that option and conforming to the national standard—which suggests that the allure of a BID alone hasn't been enough to spur adequate participation. If the opt-in option is removed, Higgins will have her wish, and property owners will be involved whether they like it or not.
