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There are generally two kinds of improvement districts: Business and Rural . Business districts typically promote Economic Development , while rural ones usually concentrate on basic things like Drainage and Road s. An example of the latter is the Reedy Creek Improvement District for Disney World in Florida . It differs from a Tax-allocation District (TAD), in that a TAD only reallocates or Defer s existing taxes in an area that has an insufficient Tax Base to support Redevelopment efforts otherwise. BUSINESS DISTRICTS A business improvement district ('''BID'''), '''business improvement area''' ('''BIA'''), '''business revitalization zone''' ('''BRZ'''), or '''community improvement district''' ('''CID'''), is a Public-private Partnership in which property and business owners of a defined area elect to make a collective contribution to the Maintenance , Development and Marketing /promotion of their Commercial District . It is, in some ways, similar to a Residential Community Association , but an appropriate analogy would be that of a suburban Shopping Mall , from which the idea for BIDs is, itself, modelled. Malls are generally single properties managed by one entity that rents out retail spaces to various tenants. Tenants pay a common maintenance fee to pay for services that enhance the appearance of the mall's common areas and provide cooperative advertising for the mall and its various stores. BIDs operate in much the same way. BIDs are Grassroots organizations, that are driven by community support and require Legislative authorization by the Local Government in which it resides, in order to be established. BIDs typically provide services such as street and Sidewalk maintenance, public safety officers, Park and open space maintenance, marketing, capital improvements, and various development projects. The services provided by BIDs are a supplement to the services already provided by the municipality. BIDs are funded through special assessments collected from the property owners in the defined boundaries of the district. Like a Property Tax , the assessment is levied on the property owners who can, if the property Lease allows, pass it on to their tenants. In the city of New York , the operating budgets of BIDs range from $53,000 to over $11 million. Typically, an individual property owner will pay an assessment of approximately 6% of his/her annual Real Estate tax charge. BIDs are overseen by a Board Of Directors that is elected by the members of the district. History BIDs first emerged in Toronto, Ontario, Canada in the late 1960s and have subsequently emerged across Canada and the USA and into New Zealand , South Africa , Jamaica , Serbia , Albania , England and Wales , Germany and Ireland with BIDs legislation also being passed in Scotland in April 2007. BIDs, however, have numerous pseudonyms, these include business improvement areas and special improvement districts. NORTH AMERICA There are 55 BIDs within New York City . Toronto has 60 BIAs within its City Limit . In the province of Alberta , they are termed "business revitalization zones". There are nine zones in the city of Calgary and 10 in Edmonton . The first special improvement district in New Jersey was formed in Cranford, New Jersey . Several CIDs have been formed in Georgia , all in Metro Atlanta . There are also BIDs within the city of Albany, New York . ENGLAND AND WALES In England And Wales , business improvement districts were introduced through legislation (the Local Government Act 2003 ) and subsequent regulations in 2004. The Circle Initiative, a five-year scheme funded by the London Development Agency , set up the first pilot BIDs, five in London, all of which had successful ballots by March 2006. Association Of Town Centre Management -coordinated pilot 'talking shops' in 22 locations in England and Wales corresponded with the development of BIDs' regulations. The first BID to be created under this process was Kingston Upon Thames . By August 2006, over 30 BIDs have emerged in town and city centres and industrial estates in England and Wales. Unlike the US, BIDs in England and Wales are funded by a levy on the occupiers rather than the owners of the properties within the area. If voted in by local businesses, the BID levy is an extension to existing non-domestic business-rates. Keswick in the English lake District Cumbria became the first rural business improvement district (BID) in the country, as a result of the ballot of the business community in September 2005. {Link without Title} Private sector business people came forward and a company limited by guarantee was incorporated (April 2006) to deliver the business plan on which the vote was held. Keswick Business Improvement District Limited has been established with a 15 place Board of Directors, which represent a cross section of the business community within the town. Every business rate payer of £2,900 or more, within the boundary of Keswick are members of the BID and are required by legislation to pay a 1% levy based on their business rateable value. The levy is collected by the local authority as the collection agency on behalf of the BID Company. The BID Company and the Directors are responsible for the effective delivery of the projects within the Keswick BID Business Plan. CRITICISM In some areas where BIDs have been implemented there has also been criticism of the districts. For example, in Plymouth it has been claimed that vast amounts of taxpayers' money has been channelled into the promotion of the BID companies' directors business interests whilst their competition has been left unsupported. Moreover, despite being forced to pay a BID levy, membership to the Plymouth City Centre Company requires the approval of its directors, who have been known to refuse membership due to an applicant having a business that might compete with their own. Critics argue that the BIDs provide services which should be provided by the community organizations. In some neighbourhoods there are now Umbrella Group s made up of commercial landowners, property management firms, and Condominium dwellers which aim to stop the BIDs. BIDs have also become a powerful has lobbied the city for years to give the entire street a face-lift because of its "run down" look. There is also very little public access to the accounts of the BID companies in the UK despite the fact that the vast majority of their income is derived from public taxes. In Plymouth, England, for example, the bid company known as the Plymouth City Centre Company does not publish its full accounts and questions are now being asked as to where and how millions of BID funds have been spent. In addition, there has been some recent concern in social science literatures that critique aspects of the BID model. It is argued that the devolution of limited political authority to the private boards of these districts effectively privatizes the public spaces of the city. This privatization is potentially problematic given the important role that is played by public space in a democracy as a site of free speech, association and protest. There is concern that overt control of BIDs by business and property owners results in the privileging of the interests of those people over the democratic interests of society at large. There has also been substantial attention to the manner in which BIDs have often attempted to rid the spaces they control of the homeless (who by definition must be in public space since they do not own any private spaces), ethnic minorities, and political activists who might frighten off potential shoppers. REFERENCES Clough, N. and R. Vanderbeck. 2006. Managing Politics and Consumption in Business Improvement Districts: The Geographies of Political Activism on Burlington, Vermont's Church Street Marketplace. Urban Studies. Vol. 43 Issue 12. Hoyt, L. and G. Devika. 2007. The Business Improvement District Model: A Balanced Review of Contemporary Debates . Geography Compass 1/4 2007 Schaller, S. and G. Modan. 2005. Contesting Public Space and Citizenship: Implications for Neighborhood Business Improvement Districts. Journal of Planning Education and Research, Vol. 24, No. 4, 394-407 Stokes, R. 2006. Business Improvement Districts and Inner City Revitalization: The Case Of Philadelphia's Frankford Special Services District. International Journal of Public Administration, Volume 29, Issue 1 - 3 January 2006 , pages 173 - 186 Ward, K. 2007. Business Improvement Districts: Policy Origins, Mobile Policies and Urban Liveability. Geography Compass. 1/3 2007 SEE ALSO United States
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