Business improvement districts in New York: the private sector in public service or the public sector privatized?

Abstract

Business improvement districts (BIDs) are dominant economic development tools in North America today, with more than 1500 in place in the United States and Canada alone. BIDs are place-based private–public partnerships created for the purpose of enhancing local economies through the provision of member defined services and infrastructure. The 67 BIDs in operation in New York City today collectively control more than $100 million in revenue. This article considers the implications of differences in BID structure for their ability to serve the interests of members, places, and the broader urban public of the city writ large. The key finding is that while BIDs in New York are reflective of privatization trends, they do not always benefit the public that they serve.

Keywords:

• business improvement district
• privatization
• private–public partnership
• democracy and governance

Notes

^1. It is important to realize that in New York City, the Department of Sanitation is only responsible for collection of public waste from publicly provided trash cans, street cleanliness, and partial sidewalk cleanliness at a certain distance from the storefront. But, businesses are required to contract with private providers for the collection of business waste and recycling, and to maintain and upkeep the sidewalks immediately in front of their businesses.

^2. I do not discuss the impacts of investments in security for the New York case, because systematic analysis has yet to be done. Studies of the relationship between BIDs and crime in Philadelphia provide mixed outcomes some found crime displacement while others did not (Hoyt and Gopal-Agge 2007).