A business improvement district, or BID, is a revitalization program by which real estate owners in a designated area agree to levy an assessment on their properties to generate revenue for the community to pay for services above and beyond those provided by local government. Districts In 2000, there were 41 BIDs in New York City. Manhattan's 18 BIDs, such as those in the 125th Street (Harlem), Grand Central Station, Times Square, and Union Square areas, center primarily around commercial districts. Levy Payers Levies are collected from property owners within the district. Levies Levies are based on a calculation method approved by the mayor. Calculation methods, which differ for each BID, are determined by BID activity expenditures and based on things like assessed values of properties within the district, street frontage, size of property, etc. Administration The BID is operated as a non-profit organization. Budgets Budgets are different for each BID: the Times Square BID's operating budget is $6 million annually, while the Lincoln Square BID's is $1 million (1999). Eligibility 51% or more of real estate owners in the district must give their consent. BIDs must be approved by the local Community Board, the City Planning Commission, the City Council and the Mayor. (1) When a BID is established, the City Department of Finance charges levies through its property tax collection system. In most cases the levy is added to tenant rents. In the Times Square BID, commercial property owners pay a compulsory 0.25% of the property's assessed value, and residential property owners $1 per year. (2) The levies collected by the City are periodically turned over to the BID. (3) Deficits are met through subsidies from other organizations and the private sector. Being a non-profit organization, contributions to the BID are tax deductible. (4) BID activities are determined by a board of directors comprised of property owners (who by State law must form the majority) and tenants, city personnel, residents and representatives of the local community. The New York City Department of Business Services (DBS) and the Audit Bureau sit on the boards of all BIDs in the City, supervise activities, and conduct regular audits. The hub of Manhattan transportation, commercial activities, and tourism, Times Square, which appears repeatedly in television and movies, is one of New York's most famous and flamboyant districts. The Times Square BID's efforts to further improve the neighborhood include the following initiatives. Public Safety - Public Safety Officer patrols (9am to midnight) - Reduction in crime Down 58% overall; illegal peddling down 83%, pickpockets down 38% (from 1993 to 1999) Sanitation - 50 sanitation workers clean daily (6am to 10pm) - Mechanical sweepers clean streets and sidewalks - Graffiti cleaning, painting street furniture, light poles, etc. Publications/Advertising - Three publications produced annually: Restaurant Guide, Entertainment Guide, and Times Square Map Community Service - Streetscape and public space improvements - Public art - Purging adult establishments - Petition to resolve pedestrian traffic congestion - Consortium for the homeless Visitor Center to Promote Tourism - Opened Times Square Visitor Center in 1998 - Open daily from 8am to 8pm - 1.5 million visitors (2000 estimate) - Services : sells Broadway and sightseeing tour tickets, provides BID information, ATMs, NYC transit museum, exhibit on the history of Times Square, free internet access, public toilets, etc. Events - New Years Eve in Times Square (Times Square BID) In 1904, the New York Times, then based at Times Square, began rooftop celebrations to usher in the New Year. Today, the time-honored New Year's Eve countdown is staged as a collaboration between the BID and the City. More than 2 billion television viewers watch the event worldwide. New Years Eve in Times Square - Broadway on Broadway (Times Square BID) An outdoor performance featuring excerpts from current and upcoming Broadway shows, the event draws corporate support and over 50,000 spectators. Broadway Theater District - Cow Parade (Fashion Center BID) Another interesting BID event, staged by the Fashion Center BID with its long history in the fashion industry, was the "cow parade," in which 500 cow statues designed by various artists were displayed around the City. Cow Parade New Years Eve in Times Square (c)NYC & Company Broadway Theater District (c)NYC & Company Cow Parade (Photo courtesy of Fashion Center BID) (c) Times Square BID

	The Empowerment Zone (EZ) is a program designed to revitalize distressed communities by using public funds and tax incentives to stimulate private investment. Proposed by the Clinton administration, nine areas throughout the nation were designated Empowerment Zones in 1994, and many more thereafter. Empowerment Zones are designated and supervised by federal authorities, and administrated by the designated community in cooperation with city (town) and state governments. The federal government spearheads the EZ program, offering the following benefits: The Employer Wage Credit EZ employers can claim credit of up to $3,000 per year against business taxes for each EZ resident employee. Increased Depreciable Property Deductions Businesses located in the EZ may deduct up to $38,000 of the cost of depreciable property (fixtures and equipment; buildings excluded) per annum, double the standard $17,500 deduction. Tax Exempt Bond Financing The federal government approves the issuance of tax-exempt bonds by local governments as a means of generating funds to support the EZ. EZ designated areas in New York City include Upper Manhattan and the South Bronx, which are collectively known as the New York Empowerment Zone (NYEZ). Here we cite the Upper Manhattan Empowerment Zone (UMEZ) in presenting the EZ program. 1) Location and Characteristics of the UMEZ The UMEZ occupies the northern end of Manhattan, centered around the primarily African-American community of Harlem. Once renowned for its thriving jazz culture, and cultural institutions such as the Apollo Theater and the Cotton Club, Upper Manhattan was showing signs of distress. The Apollo Theater, a symbol of Harlem culture. (Photo courtesy of HarlemLIVE, www.harlemlive.org) 2) The Road to NYEZ Designation The New York Empowerment Zone was established through a competition between several cities across the United States to receive EZ designation and concomitant federal funds. Other cities that competed also benefited, because they had established organizations and prepared materials that made it easier to attract private funds. 3) The UMEZ's Administrative Body The UMEZ is administered by the Upper Manhattan Empowerment Zone Development Corporation (UMEZDC), a non-profit organization. Likewise, the New York Empowerment Zone Corporation (NYEZC) administers the larger NYEZ, to which the UMEZ belongs. The NYEZC is a corporate entity financed by the City and State with a board of directors comprised of representatives from the City, State, Federal Department of Housing and Urban Development, UMEZDC and BOEDC (Bronx Overall Economic Development Corporation, which administers the South Bronx EZ, and existed before the NYEZ project), as well as congressmen from the Bronx and Manhattan. 4) Project Selection and Distribution of Funds The Board of Directors reviews requests for funding for proposed projects quarterly and votes on them. The projects are selected based on their benefit to the EZ areas. The money is generally distributed in the form of low-interest loans. Very little of the money is "grant" money, and this is mostly for cultural projects. 5) NYEZ and UMEZ Project Funding Along with the EZ designation, the federal government grants the region a total of $100 million in funds over a 10-year period. Normally, the federal funding is granted to the state, but in New York the funds are granted to the New York Empowerment Zone Corporation. New York State and New York City subsequently matched the federal funding, raising the investment pool to $300 million in public funds. Currently, roughly 83% of the NYEZ investment pool is apportioned to the UMEZ; the remaining 17% is administered by the BOEDC. (***Courtesy of the NYC Economic Development Corporation & the New York Empowerment Zone Corporation) 6) UMEZDC Activities In addition to the tax incentives mentioned above, the UMEZDC conducts the following activities: - Business financing, including loans to small businesses - Grants to non-profit organizations - Technical advice to expanding businesses - Guidance on starting a business 7) The Effects of UMEZDC Activities First year (1994) results include: - 29 projects approved for funding - Approximately 2400 jobs created and maintained - Approximately $26.5 million in EZ investments, with $68 million in private and other public funds generated (for a total investment of approximately $95 million). EZ subsidies generated 2.6 times their value in private and other public investments. Presently, the UMEZ continues to be economically and culturally revitalized with construction underway of a large-scale multi-use commercial facility and other new projects. Harlem USA (c)Upper Manhattan Empowerment Zone Development Corporation States and cities also offer a number of incentives designed to revitalize local communities that complement the EZ program. EZ businesses that also meet state and city criteria receive additional benefits. New York State, for instance, has its own State Economic Development Zone (EDZ) designation program, which offers a variety of incentives including the following: Corporate Tax Credit (The State Wage Credit) EDZ employers receive a $1,500 income tax credit for each new employee who is paid a specified wage or more (at least 135% of minimum wage). Personal Income Tax or Corporate Franchise Tax Credits (The EDZ Capital Credit) A credit of 25% of an investment against state personal income taxes or state corporate franchise taxes, up to $100,000, for: an investment in an EDZ capital corporation, direct equity investments in certified EDZ businesses, or contributions for community development projects. Sales Tax Credit A 4% credit on sales tax paid on building materials used with industrial or commercial property regardless of locale. New York City has developed a variety of standard tax incentives, such as the following: Real Property Tax Exemption (The Industrial and Commercial Incentive Program) A partial 25-year exemption on real property taxes for eligible manufacturing or commercial buildings located north of 96th Street in Manhattan and throughout the other boroughs. Corporate Tax Credits (The Relocation and Employment Assistance Program) A tax credit of $1,000 per employee against NYC's business taxes for companies relocating above 96th Street in Manhattan or to any other borough. Employee Relocation-related Tax Credit (The Employment Opportunity Relocation Cost Credit) A business tax credit for companies relocating ten or more employees from outside New York State, with credits of $300 for each commercial job and $500 for each industrial job relocated. Energy Cost Savings Direct reductions in energy costs or tax credits for companies relocating to specific areas within NYC.

	The TIF district program is used widely in the United States as an approach to redevelopment and revitalization. The program generates funds to pay for improvements to underused land, so that it becomes productive again, thus producing increased taxes for the designated district overall. The program is unique in that funds are generated not by increasing property tax rates, but rather through the increased tax revenue derived from improvements in the district (i.e., the tax revenue that exceeds a "baseline" level of tax revenue that is determined at the creation of the TIF district). Chicago's TIF program is presented here as an example. 1) TIF District Designation Criteria In the State of Illinois, a community must have some of the following problems to be eligible: - Dilapidation or deterioration - Excessive vacancies - Lack of community planning - Poor external appearance, etc. The minimum eligible land area is 1.5 acres (roughly 6,070m2). TIF designation is verified jointly by the City Council, local Community Board, entrepreneurs and developers. 2) The Thinking Behind the TIF Program As impoverished properties within the district return to appropriate uses, the value of property in the district increases overall, generating increased tax revenues. The "increment" created between the "baseline" value and the new value is used for improvements within the TIF district. TIF-eligible areas have lower property values than comparable areas, therefore, they are contributing less to the City's tax base. The City creates a TIF redevelopment plan to revitalize the neighborhood that reflects the opinions of city residents. Once the redevelopment plan is completed, the City Council votes on the creation of the TIF district. 3) Effects of the TIF Program In 1998, $272 million in public funds invested in the TIF program in 1998 generated $1.7 billion in private sector investments, a ratio of 1 to 6.3. The maximum life of a TIF district is 23 years. When all TIF activities in the city of Chicago end in 2020, the program will have generated an estimated $244.8 million in increased tax revenue, 45% of which is to be directly invested in public schools. As of September 2001, there were more than 110 TIF districts in the City of Chicago. One such district is the Central Loop TIF, which we present here as an exemplary TIF. Target area Chicago Loop area Characteristics The city's high-rise building district within the elevated railway loop. An economic and political hub, Federal, State, and City government buildings, banks, and financial institutions are clustered in this area. Land area 155 acres (63ha) Zoning Commercial and retail 1) Background In the early 1980's, new business districts in outlying areas posed a threat to the downtown Loop district's aging buildings. To help overcome this challenge, the North Loop TIF District was created in 1984 (later expanded and renamed the Central Loop TIF). 2) Activities By provided financial assistance, the TIF has supported numerous revitalization activities, such as: - creating new office buildings - creating new parking facilities - preserving landmark buildings - creating a new downtown theater district - repairing major streets The Central Loop TIF District Today (Courtesy of the City of Chicago) The Central Loop TIF District Today (Courtesy of the City of Chicago) The Central Loop TIF District comprises the area of central Chicago located within the elevated railroad "loop" line. 3) Effects The TIF has created and retained more than 20,000 jobs, securing working population that would otherwise have been lost to surrounding communities. The use of TIF funds to attract and retain businesses will also translate into over $68 million in additional tax revenues in 2007.

	Top Page		Archives		About "Mid-Tokyo Maps"		Viewers' voices		Inquiries
Copyright (c) 2001 Mori Building Co., Ltd.