Making BID to improve local economy

By Matthew Bernat
Turley Publications Staff Writer

STURBRIDGE - The problem is clearly defined – fiscal stagnation on Main Street. The solution, members of the Economic Development Committee hope, lies in solidarity.
Last week, committee members prepared to contact 56 local businesses to raise support for the creation of one or more Business Improvement Districts (BID) along Routes 20 and 131.
The benefit of one or more BIDs would lay in the support its members receive during tough times, Committee Chairman Michael Cimini said.
“While [BIDS] don’t necessarily help you any more in the good times, they are a proven mitigating factor during a recession,” he said.
The districts do that by collecting dues from businesses that opt into the BID. The cost of dues is included on those businesses’ municipal tax bill, which assures payment, Cimini said.
BID partners elect a board of directors who in turn govern the organization by setting the fee amount and deciding how the collected money is spent. Depending on the size of businesses in the BID, fees may be capped for the smaller operations, along with other common sense allowances, Cimini said.
The group uses collected revenue to make improvements as they see fit, he said, and the results are often tangible.
“Vacancy rates are lower in the districts and tax revenues are better during recessions,” Cimini said citing information gleaned from a conference he recently attended to learn more about BIDs.
Money collected can be put towards sidewalk and parking improvements, purchasing signs, funding a neighbor festival or anything else BID members can think of to drum up business.
The BID movement started in large cities such as New York and Los Angeles, but has since trickled down to smaller ones. In the Bay State, Hyannis, Springfield and Westfield, along with other municipalities, have established the districts.
There are rules that guide the creation of a BID, including filing with the state. Also, a BID must be comprised of real estate owners in a contiguous area. However, one or more BIDs can be created within a town.
Cimini said the committee plans to move quickly and the sooner one or more of the districts that can be filed with the state the better.
Part of the committee’s preparation included reaching out to the businesses owners by letter, followed by a phone call encouraging them to attend a presentation.
Cimini said he expected the process to move slowly and that it might take some time before a large number of owners could be convinced of the benefits a BID could provide.
In the long run, he said, the advantages of the districts ultimately outweigh the costs.