Value Capture: Business Improvement Districts

Federal Highway Administration2018PDFBriefUnited States. Federal Highway Administration. Office of Innovative Program DeliveryBishop, ThayUnited States. Federal Highway Administration. Office of Innovative Program DeliveryUnited StatesValue captureImprovementsLand valuesBusiness districtsBusiness improvement districts (BIDs) are privately directed and publicly sanctioned organizations that supplement public services within geographically defined boundaries by generating multiyear revenue through a compulsory assessment on local property owners and/or businesses.1 BIDs are managed by public or nonprofit boards, predominantly with local business representation, and often also include residents and local governments. BIDs create collective economic benefits for their members, which cannot be achieved on an individual basis. The BID model is similar to the special assessment value capture technique, as both concepts capitalize on incremental tax assessments levied on properties within a defined geographic area that are directed toward improvement purposes within the district. BIDs often rely on other sources of revenue, in addition to the tax assessment, to fund their operations.109