Getting the Max for the Tax: An Examination of BID Performance Measures

REFERENCES AND NOTES

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• 31. Occasionally states or municipalities will have “pass-through” restrictions on net lease agreements so that tenants do not also pay the BID tax.
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• 32. For this reason the management agreement for Chicago SSAs states that those managed by a contractor are prohibited from co-mingling the BID tax levy with non-levy funding sources.
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• 33. In Chicago, commissioners are recommended to the City by the service provider, reviewed by city agencies, appointed by the Mayor, and confirmed by city council. Most commissioners are also property owners or lessees of local property owners, and the service providers and the City try to ensure that the commissions reflect land uses, geographic coverage, and demographics the BID service area. Commissioner terms typically last two years with renewal possibilities.
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• 42. The questionnaire built on those administered by Mitchell (2001) and Houstoun (1997) and had eight sections: service evaluation; management practices; personal information and characteristics of the Service Provider/SSA; initial SSA formation; assessment; commissioners; and services.
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• 46. In Chicago, SSAs eligible for renewal must go through the same establishment process as new SSAs, except the community outreach to gauge support may not be as extensive. If an SSA establishment ordinance specifies an ending authorization date, the service provider will typically submit a renewal application as this date nears. In the event of a “controversial” SSA, the City may request that the service provider and/or commission administer surveys to gauge property owner and elector satisfaction with the SSA. Aldermanic and municipal support will also factor in to the renewal decision. Local taxpayers do not vote on the renewal; rather, letters, testimony, and informal petitions reflecting opposition and support are assessed by the City. To address concerns of dissenters or acknowledge changes in district conditions, a renewing SSA may have to make changes to its mission or program goals.
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• 47. In Chicago, there is one all-residential SSA and two industrial SSAs. Residential SSAs are less common because local residents tend to be larger in number, more diffuse, and harder to organize. Residents are typically unwilling to take on the burden of an additional tax to pay for special services beyond what municipalities already offer them. The two industrial SSAs have focused on transportation access issues, security (prevention of illegal dumping, drag racing), business expansion, and public way maintenance.
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