About the Echo Park
BUSINESS IMPROVEMENT DISTRICT (BID)
FOR CLEANER, SAFER STREETS IN ECHO PARK
BIDs deliver a range of supplemental services in coordination with municipal services and invest in the long-term economic development of their districts. Our goals include:
A cleaner and safer business district
A steady and reliable funding source to supplemental services and programs
The potential to increase property values, improve sales & decrease commercial vacancy rates
WHAT IS A BID?
A Business Improvement District (BID) is a public/private partnership in which property and business owners elect to make a collective contribution to the maintenance, development and promotion of their commercial district.
The idea for BIDs is molded on the shared maintenance program of many shopping centers. Tenants pay a common area maintenance fee to underwrite services that enhance the appearance of common areas and provide a cooperative advertising for its tenants and store owners.
A BID works in much the same way. However because the BID is set in an urban context, multiple property owners agree to the extra fee (assessment). Thus, stakeholders in a commercial district can align themselves in much the same way to improve their area.
HOW ARE BID PROGRAMS AND SERVICES PAID FOR?
Funds to pay for BID programs and services are generated from a special assessment paid by the benefited property owners. (Note: Many leases have a clause that allows property owners to pass the BID assessment on to their tenants.) The sum of all the individual assessments equals the yearly assessment of the BID and underwrites most of the annual operating expenses. Additional sources of funds can be MOUs (Memorandum of Understanding) and contributions and grants. The assessment is billed and collected by the City then disbursed to the BID, which in turn delivers the district’s services.
The assessment is a ratio of the items below. The ratio is determined by the BID committee and must be approved by a majority of the assessed group.
Lot square footage
Property square footage
The average BID allocates 61% of its yearly budget towards Clean and Safe Services.