Why do we need a BID in Downtown Troy?

• The purpose of a BID is to improve conditions in a specific area, attract and retain businesses and enhance the district experience for anyone who lives, works in or visits Troy. When we work independently, achieving these goals is difficult or impossible. When we join together, the possibilities become limitless. A BID enables stakeholders to work together to decide which services to provide to meet the district's unique needs, and makes change possible. A Business Improvement District is a public/private partnership in which property and business owners make a collective contribution to the maintenance, development and promotion of their commercial district. BIDs are grassroots, community driven organizations that require legislative authorization to be established.
• The purpose of a BID is to improve conditions in a specific area, attract and retain businesses and enhance the district experience for anyone who lives, works or visits downtown Troy. Working independently, achieving these goals is difficult or impossible. Joining together, the possibilities are limitless. A BID enables stakeholders to work together to decide which services meet the district's unique needs, while ensuring that a consistent financial base is in place so that objectives may be reached.

Rationale

• The most basic principle of a sanctioned Business Improvement District is that it guarantees and ensures that financial resources are applied consistently to the area and programs for which it is intended, without diversion and without having to compete with other municipal government obligations.
  • The Downtown Troy BID will ensure an adequate financial resource base that is    predictable, sustainable, and of sufficient scale to make tangible improvements in the target area.
  • BID services and programs are underwritten by a special five percent tax assessment collected from commercial property owners defined by the boundaries of the district. This special assessment comes only from the city tax charge.
  • Additional funding for BID operations will be provided through private and institutional donations, federal, state and local grants, and fundraising. Overall the Troy BID expects funds raised through the special assessment will be leveraged approximately 2 to 1.
• BIDs are founded on the principles of entrepreneurial management: they are non-bureaucratic, flexible, and aimed at devising effective solutions to district specific problems.
  • The Downtown Troy BID will be business-community based. The primary stakeholders, business and property owners, will provide oversight and direction.
  • A Board of Directors comprised of business and property owners will govern the Downtown Troy BID. This board will be democratically elected by their peers.
  • Daily Operations of the Downtown Troy BID will be managed by a formal association led and controlled by private interests working together to attain common goals. Initiatives will be determined and executed by the business community.
  • Although a BID can serve a crucial role in filling gaps in government services, the Troy Business Improvement District does not intend to take over mainstream functions of the City of Troy, but rather aim to supplement them.
• Business and property owner in a Business Improvement District have a fundamental, vested interest in increasing retail sales, expanding property tax base and accelerating community growth.
  • The Downtown Troy BID will work to capture a greater share of Capital District retail sales in an effort to increase the long-term financial benefits of the City of Troy and Rensselaer County.
  • Establishment of a Downtown Troy BID will encourage further investment in Troy, expand the tax base, generate new revenues, and recruit private sector employers for the betterment of the entire community.
  • The Troy BID is eager to create an eighteen-hour downtown

BID Funding

The total BID assessment for all properties is $84,655. The minimum BID assessment is $4 per year, and the maximum is $3,913. The average is $252 per property per year. More than half of all property owners' assessments would be under $120 per year. The remainder of BID funding will come from event sponsorships and sustainable grants.

BID Timeline

Over the past 12 months, the TDC has held 6 public meetings to gain input and feedback on the BID plan.

On March 6th, 2008, the Troy City Council officially tasked the TDC with creating a plan for a Business Improvement District In downtown Troy.

At the September 2nd City Council meeting, a date will be set for a public hearing about the BID. Notice of the hearing, along with an executive summary of the BID plan will be mailed to property owners and tenants within the district.

After the public hearing, property owners will have 30 days to register their complaint with the City Clerk’s office if they are not in favor of the BID.  At the conclusion of the 30 day period, City Council will vote on the plan.

When all local approvals have been met, the plan will be sent to the State Comptroller for review. This process should be complete by early 2009.