Knowledge

Business improvement districts in the United States

Source ๐Ÿ“

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BIDs to prioritize the interests of wealthy property owners over those of the broader community. Key issues cited included concerns of increased gentrification, displacement of low-income residents, and the allocation of resources to projects not aligned with community needs. Pushback from community members and activists highlighted a strong desire for more inclusive, equitable development practices. This case illustrates the complexities and local resistance that can arise with BID proposals, underscoring the importance of community planning efforts that originate from the communities they are meant to serve.
408: 201: 373: 293: 475: 399:, cities and townships in Michigan can establish a BID within a defined area. The municipality is allowed to fund the district by tax assessments and bonds to cover additional maintenance, security, and management of the district. Chapter 2 of the Act allows private property owners within a Business Improvement Zone (BIZ) to levy special assessments to finance programs that are established in a zone plan, over a period of seven years. 284:), construction of walkways, pedestrian-friendly areas or malls, bike paths, parking facilities and traffic congestion relief. Intangible improvements include reduction of crime, public health, safety and welfare improvements, promoting the economic vitality of the district. Downtown revitalization can also include sponsoring of events, marketing or promotions to promote the district internally and externally. 321:(1996), BIDs may no longer assess their participating businesses and property owners for general governmental services, but are limited to assessing fees for provision of special benefits to the affected properties over and above those conferred to the public at large, and the properties may only be assessed an amount proportional to the special benefit it receives. 422:
residents realized public resources were limited to improve commercial areas. In 1976, the first Special Assessment District legislation was passed, noting that the city would make capital improvements for an area under the condition that property owners would maintain them, the first Special Assessment District was
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followed the 1965 statute, and is the first known tourism improvement district enabling law. This act allows for a municipality to initiate the process to form the district, and requires the municipality to have a public hearing to form the district. It must also be renewed every year and overseen by
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tax, meaning the city can levy an additional tax on all property within the designated district. The process for which MSDs, or Business Improvement Districts, are formed, begins with defining the service area. The report must first express the need for why the proposed area requires the benefits of
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Studies have shown a reduction in crime within the district boundaries. One study found that there was a 12% reduction in robbery and an 8% total crime reduction within the boundaries of the BID in Los Angeles. There is no agreed upon standard for accountability for BID management organizations, but
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gives greater flexibility to the lodging business owners. This law allows for Tourism Improvement Districts to form in an initial term of 5 years with possibility of a 10-year renewal. To form the district, businesses that will pay 50% of the assessment are required to submit a petition, and three
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on property tax, and then managed by a nonprofit agency. BIDs provide an array of services to keep districts clean and managed to improve mix of activities, transportation, and aesthetics of public places. Business Improvement Districts became widely noted after their success in transforming Times
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In Rochester, NY, a proposed Business Improvement District (BID) faced significant community opposition that ultimately led to the abandonment of the effort in March of 2024. Critics, including local artists, community advocates, and working-class residents, raised concerns about the potential for
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The decision to suspend the BID formation process is the result of sustained community pushback. A coalition of ordinary residents, small businesses, community organizations, and artists came together to oppose RDDC's push to turn Downtown Rochester into a Business Improvement District that would
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Coloradoโ€™s Business Improvement District Law of 1988 includes key provisions that allow BIDs to provide a wide variety of services, including public safety, planning, events, and parking management, those services are provided by private sector organizations. The law holds BIDs accountable to all
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The International Downtown Association (IDA) 2011 BID census report states that all US states except Wyoming, including the District of Columbia, have at least one BID. The 2011 IDA report states that, at the time, there were 1,002 BIDs in the United States. As of 2010, North Dakota passed senate
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Often, BIDs are formed as a result of property owners in a defined district who seek funding for a variety of services, including governmental services such as cleaning and maintenance, non-governmental services such as marketing and promotion or beautification, and the implementation of capital
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Critics of Business Improvement Districts are concerned that there are few restrictions as to what the revenues going toward the BID will fund. With the limited restrictions, property owners within the district may be required to fund services that they do not particularly want or need. In many
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A Study of New York BIDs revealed that commercial properties within the defined areas of a business improvement district sold for 30.7 percent more than comparable properties in the same area but outside of the district boundaries. This study implies that the positive effects are exacerbated in
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New York City has the largest network of Business Improvement Districts in the United States, with 76 BIDs within the city. New York City's BIDs invest over $ 158 million in programs and services in their respective districts. New York's BID movement began in the 1960s when business owners and
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The districts are areas within a municipality where some form of revenue generation is legally enforced to provide services for area, beyond those offered by the municipal and county services. BID formation varies on a state-by-state level, and are also referred to as neighborhood improvement
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Property owners and people within the district who oppose a BID may see it as an attempt to delegate control of public space to the private sector. Without government accountability (elections), it is difficult for the public to make a change in the actions that the BID managing organization
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In California, there are 3 primary types of BIDs all of which have their own standards for assessments and require different legal actions. In California, the payments made by the businesses and property owners within the districts are technically "fees" and not "taxes." Due to
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a special district, as opposed to the remainder of the city. A report must be prepared with a map of district boundaries, statement of purpose for the district, and a plan for how the district is formed. The report is then open for public hearing, prior to adopting the plan.
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they are held accountable due to the limitations of what the budget can be appropriated to, making the abuse of power less likely. The small amount of stakeholders also limits the risk of corruption, with more individuals keeping watch of the activities managed by the BID
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Square and Union Square in New York City from places abandoned and filled with crime into dynamic neighborhoods. They are based on the premise that making attractive commercial districts will attract shoppers and make an environment conducive to thriving businesses.
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payees into the district through a board of directors that is composed of business and property owners located within the district. All property owners, lessees and residents within the district are given the opportunity to vote for the tax in their district.
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Downtown Revitalization is defined in terms of the North Carolina State Statute as projects that include, but are not limited to improvements in water, gas, storm, and sanitary sewer mains, power lines, improved lighting, streets and sidewalks (including
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places, BIDs are independent organizations and are not required to report extensively to their local government and stakeholders. This lack of accountability can be concerning to residents and property owners paying the additional tax.
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Critics are also concerned about the spillover of crime that may be diverted, and then concentrated outside of the BID districts, particularly in larger cities with BIDs that focus on security and crime prevention.
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Improvement Districts California, Montana and Washington have laws that enable tourism improvement districts, and other states are in the process of developing legislation, including Florida and South Carolina.
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North Carolina State Statute names Business Improvement Districts, or other taxing districts Municipal Services Districts (MSD). Municipal Services Districts or BIDs in North Carolina can only be funded by an
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BID Committee must draft initial plan that identifies the goals and objectives, highlights its relationship with a comprehensive or master plan, and how the assessment will be calculated and collected.
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initiatives to improve the environment of a business district. Services financed by a BID are intended to enhance existing city services, not replace public works or economic development departments.
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By 2010, BIDs had been used in nearly 1,000 major cities and small towns throughout the United States, including most major U.S. cities that have multiple BIDs. New York City alone has 76 BIDs.
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taxation of the businesses within the district. Following adoption of Proposition 13, other methods of allocating the assessment among participating businesses were required.
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principle. The ruling opposed the resident's claim, stating that a BID can have different voting classes because the results are disproportionate among property owners.
773:"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" 1087: 999: 363:
council hearings with option for public protest are required. The law also allows for a nonprofit organization to manage funds in cooperation with the municipality.
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that are composed of a certain percentage of property owners, business owners, and residents that are in the district, as well as public officials.
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Public hearing is held with proposed plan. The plan may be rejected if a petition is signed by over 40% of property owners within the district
600: 1000:"Business Improvement Districts and Proposition 218 After Silicon Valley Taxpayers Association v. Santa Clara County Open Space Authority" 526:: The managing organization is typically a nonprofit and boards are not elected. The local government can then levy the tax assessment. 426:
in Brooklyn. In 1981-1982, legislation was passed for property owners to levy taxes in self-funding Business Improvement Districts.
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Depending on state statute, business improvement districts can be funded a variety of ways, including through a tax assessment or
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Mallett, William J. (September 1994). "Managing the Post-Industrial City: Business Improvement Districts in the United States".
141:, residents within the Manhattan BID argued that the election of board members were not completed fairly in accordance with the 50:
bill 2356 to appeal section 40-22.1-01 of the North Dakota Century Code to allow special tax assessment districts in the state.
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are typically funded by an additional tax assessment, with the tax increase going toward improvements of the area.
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Morcol, Goktug (November 2010). "Understanding Business Improvement Districts: A New Governance Framework".
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Mayor or city's CEO appoints BID board members, 5 of which have to be property owners within the district.
296: 1132: 1068: 455: 447: 1145: 1034: 300: 607: 454:, Washington, LIDs authorized by state law have been applied for a variety of large projects. The 208: 169: 71: 850:"The Impact of Business Improvement Districts on Property Values: Evidence from New York City". 724: 520:: The board of directors of BIDs are all elected, but local governments collect the assessment. 407: 632:"An Economic Benefit Study to Establish an Asheville Downtown Business Improvement District" 517: 479: 466:
is expected to be funded using a $ 200 million property tax through a LID created in 2018.
931: 532:: Public authorities are formed, and board of directors are appointed by local government. 8: 1172:"Those grand plans for Seattle waterfront? Time for property owners to pay up, city says" 1128: 372: 204: 142: 754: 463: 415: 411: 80: 1104: 772: 1176: 910: 887: 495:
The committee petitions the local government for permission to establish the district
380: 376: 229: 704:"The Business Improvement District Model: A Balanced Review of Contemporary Debates" 489:
Form a BID committee that adequately represents all stakeholders within the district
883: 831:"BIDs Fare Well: The Democratic Accountability of Business Improvement Districts". 435: 813:"The effect of business improvement districts on the incidence of violent crimes" 359: 352: 342: 345:
was California's first effort. This version of the enabling legislation allowed
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within a city that are overseen by a nonprofit entity. In the United States,
787:"Business Improvement Districts: Issues in Alternative Local Public Service" 529: 474: 459: 63:
districts, special improvement districts, or local improvement districts.
662: 450:; the term "local improvement district" appeared in 1981 legislation. In 423: 223: 949:"Levying the Property Tax: Earmarking Tax Revenue for Specific Purposes" 758: 523: 313: 241: 216: 498:
Local government creates notice of proposal and hosts a public hearing
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The following steps are required to establish a BID in Wisconsin:
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was funded through $ 25 million in LID funds derived from a local
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larger BIDs, made of mostly office space, with larger budgets.
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investments. Most states rule that a BID must be governed by a
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Council votes to adopt or reject the plan to establish a BID
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assessment (i.e., based on property value). As a result of
968:"Article 23 Municipal Services Districts (North Carolina)" 553: 551: 549: 547: 545: 139:
Kessler Vs. Grand Central District Management Association
1069:"Help For Neighborhoods: Business Improvement Districts" 511: 561:. California Downtown Association. 2005. pp. 1โ€“13. 542: 360:
Property and Business Improvement District Law of 1994
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Types of Municipal Service Districts in North Carolina
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Business improvement districts in the United States
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benefit the largest developers and property owners.
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Sewage collection and disposal systems of all types
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Business improvement districts in the United States
331:Tourism-based BIDs assess hospitality and tourism. 328:Business-based BIDs (BBID) assess business owners. 148: 624: 353:Parking and Business Improvement Area Law of 1989 343:Parking and Business Improvement Area Law of 1965 1226: 1075: 696: 446:Local improvement districts are codified in the 325:Property-based BIDs (PBID) assess real property. 262:Lighting at interstate highway interchange ramps 924: 805: 765: 1146:"Project Profile: South Lake Union Streetcar" 1135:Washington State Legislature official website 901: 899: 897: 1044: 998:Olson, Rebecca J.; Keys, Lacey (Fall 2008). 843: 826: 824: 822: 335: 100: 1052:"Business Improvement Districts Fact Sheet" 1027: 779: 655: 932:"What is a Business Improvement District?" 894: 869: 867: 865: 863: 861: 158:Other Improvement Districts or authorities 1191: 997: 962: 960: 958: 852:Brookings-Wharton Papers on Urban Affairs 819: 1061: 907:"Laws: Tourism District Resource Center" 473: 406: 371: 291: 232:and flood and hurricane protection works 199: 1169: 858: 744: 678:"Effort to establish downtown BID ends" 593: 1227: 955: 873: 580:Municipal Research and Services Center 132: 941: 738: 512:Other States' BID laws and precedents 1105:"Local Improvement Districts (LIDs)" 789:. Cornell University. Archived from 570: 568: 37:Business improvement districts are 13: 675: 123: 91: 14: 1246: 1109:Portland Bureau of Transportation 565: 195: 114: 1170:Beekman, Daniel (May 22, 2018). 888:10.1111/j.1540-6210.2010.02222.x 1163: 1138: 1122: 1097: 991: 149:Private control of public space 25:United States special districts 1150:Federal Highway Administration 713: 669: 175:Downtown Development Authority 29:business improvement districts 1: 1088:"11 Step BID Formation Guide" 721:"Local Improvement Districts" 663:"Senate Bill 2356, 2011-2012" 576:"Local Improvement Districts" 536: 441: 287: 265:Off-street parking facilities 185:General Improvement Districts 109: 57: 876:Public Administration Review 469: 248:Transit-oriented development 7: 559:The ABCs of California BIDs 462:. The redevelopment of the 402: 390: 367: 190: 86: 21:local improvement districts 10: 1251: 1133:Revised Code of Washington 747:Royal Geographical Society 456:South Lake Union Streetcar 448:Revised Code of Washington 44: 1035:"Colorado BID Fact Sheet" 839:(1): 374โ€“404. April 2003. 429: 336:Legislation in California 301:San Francisco, California 101:Increased property values 244:revitalization projects 236:Downtown revitalization 209:Raleigh, North Carolina 170:Urban Renewal Authority 72:Tax Increment Financing 1199:"BID Creation Process" 1007:The Public Law Journal 680:. Rochester Beacon Inc 482: 418: 397:Public Act 120 of 1961 383: 303: 211: 19:(BIDs), also known as 477: 410: 375: 295: 230:Beach erosion control 203: 793:on 26 September 2018 480:Milwaukee, Wisconsin 271:improvement projects 143:one person one vote 133:One Person One Vote 725:City of Marysville 483: 419: 416:Brooklyn, New York 412:Fulton Street Mall 384: 356:an advisory board. 304: 212: 81:board of directors 1177:The Seattle Times 464:city's waterfront 381:Boulder, Colorado 377:Pearl Street Mall 180:Special Districts 1242: 1220: 1219: 1217: 1216: 1210: 1204:. Archived from 1203: 1195: 1189: 1188: 1186: 1184: 1167: 1161: 1160: 1158: 1156: 1142: 1136: 1126: 1120: 1119: 1117: 1115: 1101: 1095: 1094: 1092: 1084: 1073: 1072: 1065: 1059: 1058: 1056: 1048: 1042: 1041: 1039: 1031: 1025: 1024: 1022: 1021: 1015: 1009:. Archived from 1004: 995: 989: 988: 986: 985: 979: 973:. Archived from 972: 964: 953: 952: 945: 939: 938: 936: 928: 922: 921: 919: 918: 909:. Archived from 903: 892: 891: 871: 856: 855: 854:(8): 1โ€“31. 2007. 847: 841: 840: 828: 817: 816: 809: 803: 802: 800: 798: 783: 777: 776: 769: 763: 762: 742: 736: 735: 733: 731: 717: 711: 710: 708: 700: 694: 693: 687: 685: 673: 667: 666: 659: 653: 652: 650: 649: 643: 637:. Archived from 636: 628: 622: 621: 619: 618: 612: 606:. Archived from 605: 601:"BID Fact Sheet" 597: 591: 590: 588: 586: 572: 563: 562: 555: 436:Portland, Oregon 1250: 1249: 1245: 1244: 1243: 1241: 1240: 1239: 1225: 1224: 1223: 1214: 1212: 1208: 1201: 1197: 1196: 1192: 1182: 1180: 1168: 1164: 1154: 1152: 1144: 1143: 1139: 1127: 1123: 1113: 1111: 1103: 1102: 1098: 1090: 1086: 1085: 1076: 1067: 1066: 1062: 1054: 1050: 1049: 1045: 1037: 1033: 1032: 1028: 1019: 1017: 1013: 1002: 996: 992: 983: 981: 977: 970: 966: 965: 956: 947: 946: 942: 934: 930: 929: 925: 916: 914: 905: 904: 895: 872: 859: 849: 848: 844: 830: 829: 820: 811: 810: 806: 796: 794: 785: 784: 780: 775:. October 2011. 771: 770: 766: 743: 739: 729: 727: 719: 718: 714: 706: 702: 701: 697: 683: 681: 676:Smriti, Jacob. 674: 670: 661: 660: 656: 647: 645: 641: 634: 630: 629: 625: 616: 614: 610: 603: 599: 598: 594: 584: 582: 574: 573: 566: 557: 556: 543: 539: 514: 472: 444: 432: 405: 393: 370: 338: 319:Proposition 218 290: 226: 198: 193: 160: 151: 135: 126: 124:Crime spillover 117: 112: 103: 94: 92:Crime reduction 89: 60: 47: 12: 11: 5: 1248: 1238: 1237: 1222: 1221: 1190: 1162: 1137: 1121: 1096: 1074: 1060: 1043: 1026: 990: 954: 940: 923: 893: 882:(6): 906โ€“913. 857: 842: 833:NYU Law Review 818: 804: 778: 764: 753:(3): 276โ€“287. 737: 712: 695: 668: 654: 623: 592: 564: 540: 538: 535: 534: 533: 527: 521: 513: 510: 509: 508: 505: 502: 499: 496: 493: 490: 471: 468: 443: 440: 431: 428: 404: 401: 392: 389: 369: 366: 365: 364: 357: 350: 337: 334: 333: 332: 329: 326: 309:Proposition 13 289: 286: 273: 272: 266: 263: 260: 257: 251: 245: 239: 233: 225: 222: 197: 196:North Carolina 194: 192: 189: 188: 187: 182: 177: 172: 167: 159: 156: 150: 147: 134: 131: 125: 122: 116: 115:Accountability 113: 111: 108: 102: 99: 93: 90: 88: 85: 59: 56: 46: 43: 39:private sector 9: 6: 4: 3: 2: 1247: 1236: 1233: 1232: 1230: 1211:on 2015-06-05 1207: 1200: 1194: 1179: 1178: 1173: 1166: 1151: 1147: 1141: 1134: 1130: 1129:RCW 36.94.220 1125: 1110: 1106: 1100: 1089: 1083: 1081: 1079: 1070: 1064: 1053: 1047: 1036: 1030: 1016:on 2016-03-04 1012: 1008: 1001: 994: 980:on 2012-10-23 976: 969: 963: 961: 959: 950: 944: 933: 927: 913:on 2016-12-06 912: 908: 902: 900: 898: 889: 885: 881: 877: 870: 868: 866: 864: 862: 853: 846: 838: 834: 827: 825: 823: 814: 808: 792: 788: 782: 774: 768: 760: 756: 752: 748: 741: 726: 722: 716: 705: 699: 692: 679: 672: 664: 658: 644:on 2012-10-23 640: 633: 627: 613:on 2016-10-12 609: 602: 596: 581: 577: 571: 569: 560: 554: 552: 550: 548: 546: 541: 531: 528: 525: 522: 519: 516: 515: 506: 503: 500: 497: 494: 491: 488: 487: 486: 481: 476: 467: 465: 461: 457: 453: 449: 439: 437: 427: 425: 417: 413: 409: 400: 398: 395:By result of 388: 382: 378: 374: 361: 358: 354: 351: 348: 344: 340: 339: 330: 327: 324: 323: 322: 320: 316: 315: 310: 302: 298: 294: 285: 283: 279: 270: 267: 264: 261: 258: 255: 252: 249: 246: 243: 240: 237: 234: 231: 228: 227: 221: 218: 210: 206: 202: 186: 183: 181: 178: 176: 173: 171: 168: 165: 162: 161: 155: 146: 144: 140: 130: 121: 107: 98: 84: 82: 76: 73: 69: 64: 55: 51: 42: 40: 35: 32: 30: 26: 22: 18: 1213:. 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Retrieved 558: 530:Pennsylvania 484: 460:property tax 445: 433: 420: 394: 385: 346: 312: 305: 297:Union Square 282:right of way 274: 213: 152: 136: 127: 118: 104: 95: 77: 65: 61: 52: 48: 36: 33: 23:(LIDs), are 20: 16: 15: 797:13 February 424:Fulton Mall 205:City Market 1215:2013-04-28 1020:2015-01-08 984:2013-02-11 917:2013-04-24 648:2013-02-11 617:2013-04-16 537:References 524:New Jersey 442:Washington 347:ad valorem 314:ad valorem 288:California 242:Urban area 217:ad valorem 154:controls. 110:Criticisms 58:Operations 478:Downtown 470:Wisconsin 278:easements 269:Watershed 68:mill levy 1229:Category 759:20003458 684:26 March 403:New York 391:Michigan 368:Colorado 256:projects 254:Drainage 250:projects 238:projects 191:By state 87:Benefits 518:Georgia 452:Seattle 164:Tourism 45:History 757:  430:Oregon 1209:(PDF) 1202:(PDF) 1091:(PDF) 1055:(PDF) 1038:(PDF) 1014:(PDF) 1003:(PDF) 978:(PDF) 971:(PDF) 935:(PDF) 755:JSTOR 707:(PDF) 642:(PDF) 635:(PDF) 611:(PDF) 604:(PDF) 1185:2019 1157:2019 1116:2019 799:2013 732:2019 686:2024 587:2019 341:The 280:and 70:or 884:doi 434:In 414:in 379:in 299:in 207:in 137:In 1231:: 1174:. 1148:. 1131:, 1107:. 1077:^ 1005:. 957:^ 896:^ 880:70 878:. 860:^ 837:78 835:. 821:^ 751:26 749:. 723:. 688:. 578:. 567:^ 544:^ 1218:. 1187:. 1159:. 1118:. 1093:. 1071:. 1057:. 1040:. 1023:. 987:. 951:. 937:. 920:. 890:. 886:: 815:. 801:. 761:. 734:. 709:. 665:. 651:. 620:. 589:.

Index

United States special districts
business improvement districts
private sector
mill levy
Tax Increment Financing
board of directors
Kessler Vs. Grand Central District Management Association
one person one vote
Tourism
Urban Renewal Authority
Downtown Development Authority
Special Districts
General Improvement Districts

City Market
Raleigh, North Carolina
ad valorem
Beach erosion control
Downtown revitalization
Urban area
Transit-oriented development
Drainage
Watershed
easements
right of way

Union Square
San Francisco, California
Proposition 13
ad valorem

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