Business Alliance of Kingston Q & A from 9/29/11 Public Hearing Re: Business Improvement Districts Do not-for-profits get a seat

on the board? No, not unless they are invited by the business owners to be non-voting members of the board. What % of buildings in the proposed BID area are non profits? Non-profits by law do not vote on a BID board. If the BID wishes to allow a nonvoting, non-profit seat on the Board it may do so. E.g., if the hospitals continue to provide $2,500 a year, or more, it might be desirable to have them. "This is a 20% tax increase" No. Although it may be collected like taxes, it is money that can only be used by the Business Improvement District. It is similar to Common Area Maintenance charges in a shopping center where everyone pays their fair share rather than relying on dues where some carry the freight for others. A tax increase cant be gotten rid of; this can. What is the sunset period? How do you get rid of a BID? A BID can be removed when 51% of the property owners vote it out. Thats either 51% of the people who own the buildings, or the people who own 51% of the assessed value. What are term limits for BID board members? The plan will set out term limits. Most BIDs turn over half their members one year, and the other half the next year. Who is on the BID board, by law? The majority must be building owners. It can have as many members as wanted but must have these categories: A majority of building owners 3 City officials (the Mayor, the City Treasurer, the Common Council president or their designees) 1 business owner (non-building owner) 1 homeowner or renter Optional: A non-voting, non-profit representative It should be an odd number to prevent ties, so 9, 11 or 13 might be right number. Who nominates? Who votes? How are elections held? An interested group puts a slate together. Anyone else can oppose them, with another slate. The BID building owners get one vote for each building they own. Like categories vote for like categories, such as property owners vote for property owner representatives. Those with the most votes (which can be weighted by assessment) win.

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Business Alliance of Kingston

Why does the legislation talk about borrowing authority? Do the taxpayers become liable if the BID fails and debts are left over? It is pro forma in the state law. The BID can legislate borrowing authority out of the by-laws. Can a BID charge a flat rate to everyone? The law is set up to follow the logic of stockholders. If its a flat rate, the largest property owners have no advantage, although economically they have more at stake and pay higher taxes. Everyone pays the same rate, assessments differ. Does the Common Council vote supersede the vote of the building owners? In theory, the Council could approve a BID over many objections, but it is hard to imagine a scenario wherein they would commit this type of political suicide. Why does it say nothing happens in Year 1? See District Plan, page 7, B. It says the opposite. It says the BID must commence its work in Year 1, as soon as possible. Why does the map include side streets? The goal was to include these larger property owners in the decision making but the map is open to negotiation. Why are some buildings in and others, not in, on the same street? Decisions had to be made, and lines drawn. Its open to negotiation. Interesting facts: The City may NOT remove services because the BID is performing work in the same service category. The City MAY choose to contract with the BID for services it would like handled. E.g. City of New Rochelle hires the BID to do enhanced cleanup. The BID plan can be withdrawn, temporarily, until re-drafted to include important revisions, then re-filed. If the BID is defeated, it can be re-visited after one year, and this is a common route for many. Some BIDs have NO employees, and the Kingston BID could adopt that model. All services could be provided by contractors.

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Business Alliance of Kingston

FOR IMMEDIATE RELEASE

October 2, 2011

MAYOR BLOOMBERG DISCUSSES HOW BUSINESS IMPROVEMENT DISTRICTS, INCLUDING TWO NEWLY CREATED THIS WEEK, WILL HELP CREATE JOBS IN NEW YORK CITY IN WEEKLY RADIO ADDRESS The following is the text of Mayor Michael R. Bloombergs weekly radio address as prepared for delivery on 1010 WINS News Radio for Sunday, September 25, 2011 Good Morning. This is Mayor Mike Bloomberg. Small businesses have always provided the heartbeat of our citys economy. They account for 50% of the jobs in our private sector workforce. They push our economy forward with new ideas, services, and products, and they are the glue that holds our neighborhoods together. Creating more jobs for New Yorkers during this downturn requires us to keep investing in our small businesses and one of the best ways we can do that is through Business Improvement Districts. Business Improvement Districts, or BIDs, rose to fame a couple of decades ago because of their success in transforming Times Square and Union Square from areas racked by abandonment and crime into the dynamic neighborhoods they are today. BIDs are essentially public-private partnerships in which property and business owners channel funds towards various activities to improve and promote their retail corridors including street cleaning, street improvements, additional security, holiday lighting, and marketing. Our Administration has actively supported BIDs because they are an important tool for improving our quality of life and creating jobs. The more attractive our commercial districts are, the more shoppers theyll attract, and the more our small businesses will thrive. And thats why weve made it considerably easier for BIDs to form, and for BIDs to grow. Last week, I signed legislation that creates two exciting new Business Improvement Districts one in Chinatown, and one along Atlantic Avenue in Brooklyn. That brings the total number of BIDs formed under our Administration to 22 more than any other previous
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Business Alliance of Kingston

administration and 19 of them are outside of Manhattan, including the very first one on Staten Island. In total, there are now 66 BIDs in all five boroughs the most of any city in America. Collectively, these BIDs contributed over $100 million in services to more than 64,000 businesses during the past year. They employ more than 1,200 sanitation workers, public safety agents, and other staff. Our BIDs are also about bringing merchants together and harnessing their resources to take already-bustling commercial districts to the next level. And you can see that happening on Fordham Road in the Bronx, where merchants have joined together to clean the blocks of graffiti or on Forest Avenue in Staten Island, where businesses have hosted special events to enliven the streets and attract more shoppers. Building great, attractive neighborhoods is one of the pillars of our strategy for creating jobs and growing our economy. And building great neighborhoods happens by building great partnerships. City government cant do everything wed like to do thats why public-private partnerships are so important. We all want our small businesses to thrive and grow and hire more people and through Business Improvement Districts, were all working together to make that come true. This is Mayor Mike Bloomberg. Thanks for listening. - 30 Contact: Stu Loeser (212) 788-2958

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