HomeMy WebLinkAboutAn Examination of Wisconsin BIDs An Examination of
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Wisconsin BIDs
Charles Law,Ph.D., Director of UW-Extension's Local Government Center
Beth Richmond,Master's degree candidate,UW-Madison's Department
of Planning and Landscape Architecture
With the passage of Wisconsin Act 184 in 1983,the state Wisconsin ranks third in the country with 83 BIDs currently
has allowed Wisconsin municipalities (i.e.,cities,villages,and in operation.BIDs can be found in any size Wisconsin
towns)to create and operate funding mechanisms known as community,but unlike in most states,Wisconsin has a
Business Improvement Districts (or BIDs)under the same disproportionate number of BIDs in small communities.
state statutes legislating special assessments. According to the national BID census completed in 2008,
A BID represents a specified geographic area where owners
20.7%of BIDs are located in communities with a population
under 25,000.In Wisconsin,that proportion jumps to 48.8%.
of commercial(and,in some cases,industrial)properties
are assessed each year to generate funds that can be used Many Wisconsin BIDs focus on the more traditional aspects
for promoting,managing,maintaining or developing the of downtown development including:physical improvement
district.Tax-exempt properties (i.e.,religious,public utility,or to buildings and the installation and maintenance of street
government properties) or those used exclusively as residences furnishings,lighting,landscaping;marketing and promotional
are excluded from the assessments.* programs;and advocating on behalf of district businesses.
But BIDs generally do much more.Rather than focus on
LTW-Extension instituted a longitudinal study examining the procedures for creating a BID which are documented
Business Improvement Districts beginning in 1992.As we elsewhere this article will examine four different BIDs in
celebrate over a quarter century of this work let's reflect on the state and explore some of the lessons learned from over
what makes the Wisconsin experience unique and what we 25 years of research.
have learned.
There are now over 1,000 BIDs throughout the country.What Eau Claire
makes Wisconsin unique are the number of BIDs that have The South Barstow BID in Eau Claire (population 66,339)
been created and continue to operate as well as how these was established in 1985 and was the first BID created in the
districts can be found in both very small and large communities. state.Formed out of the Downtown Business Association,
whose director and president were eager to find a way to fund
Wisconsl n Mpin Sheet Communities downtown beautification projects,it is the largest district of
'
s.:• WE€3C Connect Communities 0 four that currently operate within the city.
■steer The BID was initially responsible for mostly small-scale
ixAMlSu9 ■�91e Elver
■ aesthetic improvements including the installation of banners,
fate Lake'
■T s informational kiosks,and holiday lighting,as well as street
""""11e; `t.°°�` F.%'w ""'9° maintenance and cleanup.These tasks are now completed by
■IGVer FaK Eau Lla:e fi4� � ausau' sn�r,a
Fa�a■ city staff and hired professionals.Today,BID funds are still
"—d"■ ■k`a"h"`Id �; +;` used to make the district more pleasing,but focus on more
omaa• tfemah �i>pPere two sr .•
■0"-h= enhanced streetscape improvements including plantings in
FIPen^■F[Jdu L ' Sh24Pygan G
",,-AOw..W. ■ ■ �e�anFaiiF• large flower pots and hanging baskets and the outdoor sound
* wea,send
wlvomsinL�ell:■ Furtin.da • F�waFk��vrwe•
■aa.,a, !� ■ MenemeneeFMO system used to play music along the street.
sM F4alr;p
Madlaan . Wauwatma Milwaukee i321^D
D-,WdI WentFllK It is important to note that while the BID budget has
��■WFe4eneva o Rados i3i'o
^^°^ '■ & !Ile!o„,u■ increased slightly over time,levy rates in the district have
► p.13
*More information on BIDS:UW-Extension Local Government Center's Fact Sheet No.9 https.//lgc.uwex.edu✓resources for-local-offcials/#factsheets
12 The Municipality July 2018
1=
decreased due to the significant amount of new development chairperson,noted that establishing the BID wasn't easy.
in the area,including the much-anticipated $51 million "About a half dozen property owners didn't want it and
Confluence Center in a once blighted part of the downtown. people in general didn't care about it,so we were creative in
According to Mike Schatz,Eau Claire's Economic determining what properties to include."
Development Director and BID manager for the South The BID levy per property was originally$2.50/$1,000
Barstow BID since 2002,"developers choose their of assessed value.This generated about $4,000 which was
development sites carefully after taking neighborhood matched dollar-for-dollar by the city.Its initial focus was
characteristics into account."The BID businesses and property working with property owners to spruce up their buildings.
owners have taken care of the South Barstow area for years, The BID paid for half the cost of window replacement (up to
and the once neglected neighborhood is now attractive to $250 per window) and the chemical cleaning of brickwork and
downtown development.The BID has also helped guide the window trim.
area through the new challenges brought about by the recent
development,including parking concerns and road closures; The BID also improved the streetscape. Street trees,flower
experience obtained through a rich history of doing business in barrels,and hanging pots were paid for through BID
assessments.The BID built a gazebo,a new wall,and added
and promoting the area.
plantings in the district's park square.Donations of labor and
As things have improved within the district,there has been an money pay for maintenance.
increased demand for plantings,streetscaping,and bike racks
outside the district boundaries. People began to notice these improvements and recognized
the commitment the BID was making to preserve historic
The BID has enjoyed a strong working relationship with the downtown buildings and enhance the look of the downtown.
city.At its inception,a city planning staff member monitored Property owners responded in kind with individuals paying
the BID budget,took BID Board meeting minutes,and kept for approximately 30 new light posts of a historic design (each
lines of communication open between the city and the BID. costing approximately$1,000).
In 2001,Downtown Eau Claire Inc. (DELI)was created and
is now responsible for managing all four of Eau Claire's BIDs The BID also supports general improvements to areas outside
and serving as a liaison between the BIDs and the city.These the district as a way of attracting visitors and contributing
to the quality of life for all residents in the community.This
organizations complement each other well and have made
included new community entryway signs and partial funding
downtown Eau Claire stronger.
for three murals.The BID has also helped fund marketing
With over three decades under its belt,it's safe to say that the strategies to attract newcomers to the community including
South Barstow BID continues to prove its worth.What started magazine advertising,billboards,and radio ads.They are
out as a strategy to fund beautification projects in Eau Claire's currently supporting the development of a new website and
downtown has grown into a dedicated business community social media campaigns.
and reliable funding source used to promote the aesthetics of
the area and to support and integrate new development within Throughout the year,the BID supports a number of
the district. promotional events and,most recently,helped start summer
Sunday night concerts in a park a block away from the district.
Brodhead
City officials have never questioned the annual BID operating
The City of Brodhead (population 3,276)is one of the plans and,like many other BIDs,the assessment has varied
smallest Wisconsin municipalities with a BID.Operating since little over time.After the city went through a reassessment
1987,BID support grows stronger every year.Unlike their process about 20 years ago,they decreased the assessment to
larger counterparts,the Brodhead BID has never had a paid $1.80/$1,000,and it has remained that way ever since.
employee.All of their activities are supported by a volunteer
Brodhead's efforts represent as harmonious an example as you
corps that most communities would envy.
will ever find in downtown development.They work hard to
Centrally located in idyllic Green County,Amish buggies are a create opportunities for residents to be involved,keep them
common sight in the community. engaged,and keeps things positive.The BID provides the
Brodhead Mayor Doug Pinnow,a BID Board member for foundational funding necessary to accomplish this.
30 years,and for a majority of those years the BID Board
► p.14
The Municipality July 2018 13
•
Beloit ArtWalk featuring local artists;to a Saturday morning farmers'
With a population of not quite 37,000,Beloit is a medium-
market that draws more than 90 vendors and 9,200 people
sized BID community.The BID is located in its traditional weekly.The downtown district prides itself on its low vacancy
downtown business area.Described by Shauna El-Amin,the rate,which currently is less than 4/o.
BID's Executive Director,as a community"with an urban The district provides salaries for two full-time and two
flair.Beloit celebrates the arts in all its forms and gives a warm seasonal part-time staff to support its programs and activities.
nod to an industrial past.Downtown Beloit is very much a Over its 30-year lifespan there have been only four BID
neighborhood,where customers are friends and culture and art managers or directors.
are accessible to all."
The BID assessment has only changed once when the original
Centered on the banks of the Rock River,the district boasts rate of$3.21/$1,000 was increased to $4.27/$1,000.The
hanging baskets and urns on tree-lined streets,bike paths and boundaries have not been altered except to reflect changes in
a public canoe/kayak launch to encourage walking,biking,and street alignment.
skating,as well as quiet water sports.
Kenosha
Beloit's BID was formed in 1987.A year later it became one The property owners in the Kenosha BID known as the
of the first communities to be selected by the Wisconsin
Uptown Brass Village (UBV) are interested in reestablishing
Department of Commerce,now Wisconsin Economic
Development Corporation (WEDC),as a Main Street the previously dissolved district.After 20 years of operation it
Program. disbanded in 2005 over concerns of fiscal mismanagement and
the perception of impropriety.
Over the past 30 years,downtown Beloit has experienced a
true renaissance.The BID contributes to more than 50 days UBV is a historic commercial district with many assets located
within a dense residential neighborhood,just over 20 blocks
of events a year: from a summer lunchtime concert series to an
p.16
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14 The Municipality July 2018
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west of Kenosha's lakefront in the heart of the city.With the might want to consider new ways to provide incentives to
dissolution of the BID,the area experienced a significant expand participation in Business Improvement Districts.
decline in its retail mix and widespread disinvestment.
More information about Wisconsin BIDs can be found at:
The push to recreate the UBV has been met with some lgc.uwex.edu
skepticism as the district struggles to overcome negative
perceptions.To build the community's confidence and About the Authors:
establish credibility,UBV gained the Wisconsin Economic Chuck is a Community Planning and Design Specialist
Development Corporation's (WEDC) Connect Community who has served as the Director ofUW-Extension's Local
designation in 2017.They have begun hosting high profile art Government Center since 1999.His great Uncle Jim served
promotions and cleanup events and leveraging key partnerships as President of the League of Wisconsin Municipalities from
within the community.UBV now looks forward to tapping the 1939-41 while mayor of Madison.As a result of the research
valued experience and technical expertise of their downtown outlined in this article he is often called upon to help educate
counterparts in Kenosha's Lakeshore BID (which earned Wisconsin communities about BIDS,how they are created,and
Wisconsin Main Street designation in 2013) and will likewise how they operate. Contact Chuck at chuck.law@uwex.edu
be considering the formation of up to four sub-committees,
fashioned after the WEDC Main Street Program approach Beth is a recent graduate of UW-Madison's Planning&
(i.e.,Design,Organization,Promotion,Economic Vitality) as Landscape Architecture Department.While earning her
it grows its volunteer base in numbers and capacity. master's degree,she worked with Chuck inventorying Wisconsin
Lessons Learned BIDS and collaborating with BID managers and BID board
members across the state. She now works in Minneapolis as a
BIDS have been a stable funding mechanism for supporting planner.Contact Beth at brichmond3@wisc.edu
and sustaining long-term development in many of the state's
traditional business areas and commercial corridors.Despite
the fact that BIDS can be dissolved,relatively few(only 10)
have done so.The majority of Wisconsin's BIDS have been
operating over 21 years.
Baker Tilly's public sectorspecialists
Administrative turnover is low. Kaye Tenerelli,Executive understand the challenges municipalities
Director of the Superior BID retired in 2015 after serving the jn meeting community --• - delivering
community for 23 years.Beth Weirick has led Milwaukee's government
Downtown Business Improvement District(#21) since its
inception in 1998.Menomonie's BID Manager Marilyn Tye Throughindustryinsight,we speak
held that position for over 25 years. • •- • goals • • language
BIDS offer flexibility. State statutes do not dictate how a deliver solutions that are just right for you.
community will assess properties within the BID.Assessment
rates and/or the methodology employed are established by
the community.BID programs and services can be virtually
anything as long as they can be reasonably aligned with the bakertiI....
"promotion,management,maintenance or development"of the Alla
PA,P
bakerti
district. 2387
BIDS can often muster collective action on issues requiring Our services include:
>Accounting and assurance >Internal control reviews and recommendations
more than municipal leadership and can initiate marketing >Consolidation/shared services >Outsourced accounting services
>Enterprise Resource Planning >Renewable energy for governments
campaigns and retain professional expertise and physical >Financial forecasting and analysis >Resource optimization/process improvement
improvement projects that business owners would be unable to >Fraud and forensics >Software and systems/data management
im
P P � >Impact fees >TIF projections
afford on their own. >Intergovernmental agreements >User fees/utility rates
While local municipalities often augment the BID through BAKER TILLY
grants,joint production,and coordination of special events,the A de tmemee ofBa r,,yI to at,o
provision of office space and/or equipment,local policymakers 018Ba rT1"V,r°.K` LLP B,k,r T""`,r,t°B,k,r T11yVr .Kr " d,nty °a nd.,n,g,d ..b,r°f B,k,r T11y-`°t-1
16 The Municipality July 2018