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Los Angeles Bid Consortium Report 2009
Los Angeles Bid Consortium Report 2009
Los Angeles Bid Consortium Report 2009
Los Angeles Bid Consortium Report 2009
Los Angeles Bid Consortium Report 2009
Los Angeles Bid Consortium Report 2009
Los Angeles Bid Consortium Report 2009
Los Angeles Bid Consortium Report 2009
Los Angeles Bid Consortium Report 2009
Los Angeles Bid Consortium Report 2009
Los Angeles Bid Consortium Report 2009
Los Angeles Bid Consortium Report 2009
Los Angeles Bid Consortium Report 2009
Los Angeles Bid Consortium Report 2009
Los Angeles Bid Consortium Report 2009
Los Angeles Bid Consortium Report 2009
Los Angeles Bid Consortium Report 2009
Los Angeles Bid Consortium Report 2009
Los Angeles Bid Consortium Report 2009
Los Angeles Bid Consortium Report 2009
Los Angeles Bid Consortium Report 2009
Los Angeles Bid Consortium Report 2009
Los Angeles Bid Consortium Report 2009
Los Angeles Bid Consortium Report 2009
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Los Angeles Bid Consortium Report 2009

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Los Angeles Bid Consortium Report 2009 …

Los Angeles Bid Consortium Report 2009
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  • 1. The State of Los Angeles’Business Improvement Districts Why BIDs Matter APRIL 2009 Prepared For: Prepared by:
  • 2. table of contentsINTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3EXECUTIVE SUMMARY. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4BIDS IN LOS ANGELES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6BID SURVEY RESULTS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7HIGHLIGHT OF SUCCESSFUL PROGRAMS. . . . . . . . . . . . . . . . . . . . . . . . . . 12CONCLUSION: VISION FOR THE FUTURE . . . . . . . . . . . . . . . . . . . . . . . . . . . 17Appendix A: Total Assessments Paid by LA BIDS . . . . . . . . . . . . . . . 19APPENDIX B: HISTORY OF THE BID MOVEMENT. . . . . . . . . . . . . . . . . . . . . 20APPENDIX C: LOS ANGELES CITY BID CONSORTIUM SURVEY . . . . . . . . 21 The Los Angeles BID Consortium
  • 3. Arts District Dear Honorable Councilmembers,Byzantine-Latino Quarter Pico Blvd.Brentwood Village We are excited to formally introduce to you the Los Angeles Business ImprovementCentury City District Consortium (Consortium). The Consortium collectively represents the currentChatsworth 38 Business Improvement Districts (BIDs) of Los Angeles that exist throughout the city.Downtown CenterDowntown Industrial Formed in the 1990s, the Consortium has made significant progress working to resolveDowntown San Pedro various citywide issues. In 2008, the Consortium prepared a survey that was completedEast Hollywood by BID members. It was from these results that we captured the key services thatEncino Commons BIDs are providing everyday. And so, we proudly present you with the “State of LosFashion District Angeles’ Business Improvement Districts Report: Why BIDs Matter.”Figueroa CorridorGateway to LA In this report you will learn about some of the innovative programs that the BIDsGreater Leimert Park have created to enhance the overall spectrum of business in communities. Our resultsHighland Park clearly demonstrate that the existence of a BID in an area decreases crime significantly,Historic Downtown LA enhances the cultural aesthetic of a community and fosters productive interactionsHistoric Old Town Canoga between businesses and the City of Los Angeles.Hollywood Entertainment DistrictHollywood Media District We will provide you with a snapshot of our programs and we look forward to discussingL.A. Chinatown in more detail what makes the Consortium so effective and what more we can doLarchmont Village for businesses all across Los Angeles. In addition, we have prepared a video thatLincoln Heights Industrial Park includes interviews with city officials and members of the business community thatLittle Tokyo have experience coordinating with BIDs and who understand the unique and effectiveLos Feliz Village dynamic they bring to business communities throughout the region.North Hollywood TransitOld Granada Village We hope you find this report informative and useful in understanding our role in thePanorama City city. As your partners, we work everyday to help make the City of Los Angeles a betterSouth Los Angeles Industrial Tract place to live, work and play. We extend an invitation to you to attend our monthlySouth Park meetings and meet our wonderful members.Studio CitySunset & Vine Respectfully yours,SylmarTarzana Safari WalkToy DistrictVillage at Sherman Oaks Laurie HughesWestchester Chair, Los Angeles BID ConsortiumWilmingtonWilshire Center The Los Angeles BID Consortium
  • 4. Executive SummaryIn 2008, the Consortium distributed a survey amongst its members in order to collect information on theservices and programs that each of the BIDs provide. The findings from the survey helped provide thepicture of the role that the BIDs play in the City.The City Clerk’s office found that from 1994-2007, the BIDs paid a total of $219 million in assessments.Out of the 38 BIDs that currently exist in the city, 26 surveys were returned. The survey listed a total of14 questions that asked respondents to evaluate the percentage of their operating budget and the dol-lars spent toward specific services. The data collected was based on expenditures from the fiscal year2007. We concluded that regardless of the size of the BID, all BIDs spend the majority of their budget onthe following three services: 1. Security and Safety 2. Community Beautification and Cleanliness 3. Economic Development and MarketingA recently released RAND Corporation study in 2009 found that in their areas, BIDS have made a re-markable impact that has resulted in: • Robbery rates dropping by an average of 12 percent • Violent crime rates dropping by an average of 8 percentThe study reinforces our findings that the dollars spent in paying for security personnel are providing theBIDs with a significant return on their investment. In 2007 the total number of dollars spent by all theBIDs surveyed was: • $10.1 million on security services • $6.4 million on street and sidewalk cleaning »» This number has allowed the BIDs to collect over 850,000 bags of trash per yearIn addition to the survey and the RAND study, we conducted phone interviews with BID directors repre-senting different geographic areas of the city. It was from these interviews that we discovered an addi-tional service. All BIDs are called upon to serve as a “one-stop clearing house.” BID directors, staff andconsultants are called upon by members and city officials to solve district-wide problems, serve as the The Los Angeles BID Consortium I 4
  • 5. center of communication for its stakeholders, act as an intermediary and voice for the business district.BIDs have the ability to coordinate with multiple entities and address a myriad of issues that an individualbusiness, city official or city department cannot solve because of a lack in resources or expertise.The majority of BIDs are content with the programs and services they provide and are confident that theywill continue to maintain them at the same level for the near future. With regards to their working relation-ship with the city, almost all of the BIDs agreed that they would like to have better communication withthe city. A majority of the interviewees felt that this is one area that could be improved and the Consor-tium has identified four initiatives that will solve this problem. The four initiatives are: 1. Inclusion of BIDs into the early notification process for public and private development projects like neighborhood councils 2. Creation of a BID Czar to provide one source of interface between the BIDs and the City of Los Angeles 3. Allow BIDs to provide monitoring and enforcement for the City in areas like illegal tree trimming, illegal vending, trash violations, news rack and street furniture violations 4. Request that LAPD include a training module “Working with Business Improvement Districts” into its existing community policing training to strengthen the relationship between LAPD and BIDs The Los Angeles BID Consortium I 5
  • 6. BIDS in Los Angeles The Los Angeles BID Consortium I 6
  • 7. “The formation of the BID was critical to demonstrate to investors and potential developers that the property owners were not abandoning their community.” Kerry Morrison Executive Director of Hollywood Entertainment District Survey ResultsBackground on BID SurveyIn 2008, the Consortium distributed a survey amongst its members in order to collect information on theprograms and services that each of the BIDs provide. The data collected was based on numbers fromthe fiscal year 2007. After gathering the information, the Consortium developed four goals that it wouldlike to accomplish with the results of the survey: 1. Create a report that presents the overall picture of what the BIDS are doing in the City of Los Angeles; what role do they play and how they keep the City healthy? 2. Share the findings among Consortium members to foster an exchange of ideas and information about successful programs that they support 3. Educate a non-BID audience about why the BIDs are important 4. Stimulate an exchange of improved communications between the BIDs and the CityThis target audience consists of, but is not limited to: 1. City of Los Angeles elected officials and staff 2. City of Los Angeles department managers and staff 3. Local business communities that are interested in starting a BIDThe BID Survey (Appendix C) had a total of 14 questions that asked members to state the percentageof their operating budget spent toward services (e.g cleaning, security, marketing) and programs (e.g.shopping and housing tours). Of the 38 existing BIDs, 26 responded to the survey. Over 60 percent ofthe respondents were executive directors of their BIDs, and the remaining participants were either thedeputy directors or marketing managers.Typical Description of a BIDOut of the 26 BIDs that responded: • 23 are property-based BIDs • Only two are listed as merchant-based BIDs: Los Feliz and Wilshire Center BID • The average BID has been in existence for eight years »» The most recent has been in operation for only a year »» The oldest has been in operation for 16 years • A little less than half have been through one renewal, while a third have gone through five renewals • The average BID encompasses 30 square blocks »» The smallest spans two blocks »» The largest spans 110 square blocksUpon a closer look at the data, we found a nexus between the size of the BID and the number of renew-als it has gone through. The BIDs that have been in operation the longest have seen the greatest growth The Los Angeles BID Consortium I 7
  • 8. in their boundaries. From interviews with respondents, we heard that by the time a BID is up for renewal,non-BID property owners have noticed the change that exists in the BID area and they have becomeconvinced of the difference and “want to join the party.”In addition to this growing support of joining and renewing BIDs, we also looked to see if there wasa certain type of business that would receive the most benefit from a BID model. The survey resultsshowed that over a third of the businesses in the BIDs were classified as retail. The primary servicesthat BIDs provide best suit the needs of retail businesses since they look to create an environment that issafe and inviting for their customers. A more detailed explanation for this is provided later in the report.Who organizes the great work on behalf of the BIDs? The results from the survey indicated that theaverage number of full-time staff was two employees. In many of the cases, the executive directors areBID members and serve on a part-time basis as the director or president.Overall the survey found that regardless of the size of the BID, the BIDs provide four key services fortheir members: 1. Security and Safety 2. Economic Development and Marketing 3. Community Beautification and Cleanliness 4. One-Stop Clearing HouseSecurity & SafetyFrom our interviews, we found that the number one reason for forming a BID was to bring a privatesecurity presence to the area. The majority of BIDs top priority is to provide a safe environment forits members. • In 2007, the total number of dollars spent on security services by all the BIDs was over $10.1 million. »» The average spent per BID was $399,016 »» The smallest expenditure was $15,000 »» The largest expenditure was $1.5 million • Security services were the largest budget item in each of the BIDs’ operating budgets and in almost all of the cases, these services were contracted and performed by outside companies • The average number of security personnel or ambassadors that the BIDs contracted was nine members »» The range was one BID having 4 ambassadors to another having 44 • The overall number of calls received by security personnel was 17,865Survey respondents added that security personnel are often times the first responders and are sentto investigate and assess whether LAPD needs to be involved. They act as the “eyes on the streets”for the BIDs.What kind of impact do “eyes on the street” have on crime? A recent RAND Corporation Study looked at30 of Los Angeles’ BIDs and found that from 1994-2005: • Robbery crime dropped by an average of 12 percent • Violent crime dropped by an average of 8 percent The Los Angeles BID Consortium I 8
  • 9. The RAND Report, conducted by researchers at the University of Pennsylvania, determined that the“connection between economic development and crime at the local level is well established.” For thereport, researchers looked at the official LAPD crime rates from 1994-2005, mapped the crime data tothe BID locations and identified the crime trends. From that data they determined that the decrease incrime rates were not likely to have occurred “by chance alone.”For some BIDs (Arts, Industrial and Fashion Districts) these percentages had a significant impact inattracting businesses and customers by making the area a more desirable place to conduct business.The RAND findings that the “BIDs fit within crime prevention model” is further testament that their priorityto spend the necessary dollars on security patrols provides a significant return on their investment.Community Beautification & CleanlinessOne phrase that sums up what the BIDs are doing is “clean and safe.” In the previous section, we high-lighted how vital a safe environment is to the success of the business district. Without cleanliness, thatenvironment cannot be sustained - the “broken windows” theory often espoused by Los Angeles Po-lice Chief William Bratton. Most of the services that fell under this category in the survey were labeled:street/sidewalk cleaning and trash removal. The following numbers are based on the average BID: • In 2007, the total number used to pay for street/sidewalk cleaning by all the BIDs was $6.4 million »» The average number spent was $212,548 »» The largest single expenditure was $1,414,000 »» Over 70% of those services were conducted by an outside organization, such as Chrysalis • The total number of trash bags collected was 854,295 • The average number of trash bags collected per BID was 36,982 • Many of these services are contracted out to non-profit organizations like Chrysalis that create job opportunities for disadvantaged individuals in order for them to become self sufficientThe BIDs’ ability to respond to their members’ needs often spurs services that go beyond trash removaland sidewalk cleaning. The survey found several of the BIDs providing services that included tree trimming,tree planting and sidewalk repairs. All of these services fall under the category, “community beautification.”In most cases, the BIDs worked with the city departments to coordinate and accomplish these efforts ina timely manner. A majority of the respondents interviewed mentioned that an individual business ownerwould not have the time or city knowledge about how to coordinate these types of projects.A few other beautification projects were: • Working with the Department of Water and Power (DWP) to install or repair street lights • Construction of median streetscape improvements • Installation of sidewalk flower pots on street corridors • Placement of trash receptacles on sidewalks • Providing holiday lightingIf you create an environment where order exists, members of the community begin to feel responsible formaintaining a presentable appearance. If an area becomes blighted, members of the same communityno longer feel vested and begin to feel less concerned for their environment until it affects their ability tooperate. In some cases, providing “clean and safe” programs is merely the beginning for BIDs as we willsee in our next section. The Los Angeles BID Consortium I 9
  • 10. Economic Development & MarketingWhat is your area doing to attract new businesses and retain existing ones? Los Angeles’ vastgeographic spread presents many challenges that other cities do not encounter. Los Angeles is madeup of 469 square miles. It is a collection of many diverse communities that have distinct needs. Thispresents a challenge when a City sets to market itself and attract businesses. How do you market amelting pot of different communities? Each neighborhood or community must tell its own story.The survey found that BIDs create their own branding and marketing strategies to set themselves apartfrom other areas in an effort to attract the appropriate visitors and businesses. Each BID examines theirrespective areas and identifies what makes them unique. The way Chinatown markets itself is verydifferent than the Pico Byzantine Latino Quarter. For 10 respondents, an average of $32,167 was spenton advertising placements. These 10 BIDs found that by leveraging their dollars, it is far more costeffective to advertise a package of businesses in their district instead of each business owner buyingan individual ad.Special events are another tool for BIDs to enhance business. Nearly 90% of respondents organized aspecial event to highlight the businesses of the area, expose the local residents to local resources andattract new visitors to expand exposure. An emphasis on introducing local residents to local businessis a growing trend in all business districts. The widespread growth of mega-malls disenfranchisedresidents with local businesses and above all, mega-malls are able to provide the same “clean and safe”environment that BIDs now provide. As a result, Los Angeles experienced a significant downturn incertain neighborhoods. It was not until the 1990s that property owners, in efforts to attract businessesto fill empty store-fronts, offices and industrial spaces looked for a new model that could reawaken andre-energize their area.The BIDs implemented creative initiatives that provide a spotlight on their businesses. Some of theseefforts include: • Monthly newsletters that highlight local businesses, community events and provide discount coupons or other useful information • Partnership programs with local schools that encourage parents to “shop local” and turn in their receipts so that the schools receive some money from the BID • Neighborhood branding to bring back old community names that had been long been forgotten • Market research studies that identify local trends for businesses • Community surveys to determine the types of stores that residents prefer and which businesses are lacking in the area • Informational and promotional Websites »» Over 75% of the BIDs have a Website »» The Websites received an average number of 109,140 visitors a year »» Visitors log on to the site to locate a businesses or a particular type of businessThese are only a few of the efforts that the various BIDs “Since Proposition 13 passed, it is an are working on to sustain the economic engines of their unusual concept that we are asking property community. They serve as a community’s unofficial owners to pay an additional assessment economic development department. that in some instances is higher than their property taxes.Who would agree to that?” Kent Smith Executive Director Fashion District BID The Los Angeles BID Consortium I 10
  • 11. BIDs: Business’ One-Stop Clearing HouseDuring our interviews, we heard countless stories about how often the BIDs receive calls from mem-bers who have a parking, security, sidewalk or street issue that is affecting their ability to operate theirbusiness. Instead of calling the city, a member calls the BID staff and informs them of the issue. It isfrom that point that BID staff take over the issue. In most cases, an issue or complaint is also affectingseveral other businesses in the area. Staff will make calls to the appropriate city departments in order toresolve the issue. A BID acts as “one-stop clearing house”. They not only handle the issues that affectthe entire district but also its individual members.The BID acts as a unifying force serving as the hub of communication. Whether it is through monthlynewsletters, website updates, sending emails, placing phone calls or even knocking on doors, BID staffis tasked with getting information to their stakeholders. Even if BID members have their differences witheach other, staff can act as an intermediary to resolve issues.BIDs in Los Angeles advocate and are a voice for their stakeholders. Unlike large, all-encompassingbusiness organizations in Los Angeles, BIDs are able to focus on specific needs of smaller regions,making them highly-effective at advocating for basic amenities that make remarkable differences on adaily basis. It is not only during BID renewal time that a BID shows up to city council meetings. Oftentimes BID leadership or staff work to gather supporters to speak on issues affecting their communityand the region.We found that a BID creates and implements a common vision. Are clean sidewalks and landscapedstreet medians a priority? Or do they want to find ways to make their district a destination area? A BIDmust have strong leadership if it wants to be able to implement that vision. The strength of the BID liesin the leadership of its board of directors (made up of BID members) followed by the executive directors.If a director does not have the backing of its board, no matter how hard that director may work, he orshe will not be able to move the rest of their BID members. Similarly, if a board does not have the back-ing of its members, they will be limited in what they can accomplish. The Los Angeles BID Consortium I 11
  • 12. “It’s always a good business decision to make a neighborhood better and safer, but it’s great for the community.” Rick Stoff, Chrysalis Works Successful ProgramsHollywood Entertainment District (HED):Navigate Hollywood WebsiteChallenge:In the late 1990s Hollywood embarked on revival to bring it back to the entertainment destination it hadbeen in the past. By mid 2000, the Hollywood renaissance was in full bloom, resulting in several new en-tertainment opportunities that attracted many visitors. As it became busier, Hollywood became a victimof its own success. The availability of parking spaces shrank and the many events it had would lead tostreet closures that created traffic nightmares on the weekends. Business owners and landlords becameconcerned that the gridlock would deter the interested visitors.Action:Hearing the concerns of its members, HED decided that if it could help inform visitors of what problemslay ahead, they would not be deterred to travel. HED launched the Navigate Hollywood Website thatprovides real-time information to the public about pending street closures, where to find parking facilitiesand transit stops in an effort to improve mobility in Hollywood.Result:The businesses began to notice that their customers were no longer complaining about the lack of park-ing or being late because of unexpected delays. The website did not end or resolve the issues of streetclosures or add parking, but it became the vehicle that presented visitors with information and optionsthey could use during their visit.Gateway to LA Trolley: Making a DestinationChallenge:Having the largest concentration of hotels in Los Ange-les next to one of the world’s busiest airports has thenecessary ingredients to make an area a successfuldestination location. The Century Boulevard corridor,on the other hand, because of its location next to LAX,has a misperception of high crime, congestion and lackof what other destination places have: shopping, diningand entertainment (SDE).Action:Seeing that visitors were taking their stays elsewhere, the stakeholders banded together and workedwith Gateway to LA BID to come up with a solution. In order to attract visitors, they needed to connectvisitors with what they wanted. They recognized that the area was surrounded by SDE opportunitiesand had to find a way to connect their guests with the locations. The BID came up with the Gateway to The Los Angeles BID Consortium I 12
  • 13. LA Trolley that runs daily from 9 a.m. to 9 p.m. The Trolley picks up visitors at 6 locations along CenturyBlvd. and drops them off at the local SDE opportunities. Visitors have an opportunity to spend severalhours at the SDE of their choice and are returned to their hotels when they are done.Result:Gateway to LA BID began receiving feedback from the stakeholders that the program was a success.The levels of ridership began to increase to the point that they added another trolley to the route tohandle the demand. By connecting hotel guests and businesses with SDEs, the hotels saw an increasein the average hotel stay and office landlords could tout easy access to shopping, dining and entertain-ment to prospective tenants.Downtown Center and Fashion LA District BIDs:Housing and Shopping ToursChallenge:BIDs often act as an economic development agency focused on re-awakening a particular area of the city. In the process, attracting theright businesses is as important as attracting residents to an area tobe re-developed. The same applies to areas that are seeking to con-nect the customers with business. It’s a related cycle: more residentsattract more business, and more business is attracted when there aremore residents.Action:The Downtown Center BID created a program for potential residentsand investors to be able to visit Downtown residences for lease and forsale. Twice a month on Saturday, the BID hosts organized bus toursshowcasing several properties at a time. It is a convenient way foranyone interested in the housing market in Downtown to get educatedabout what the area has to offer and to get connected to the rightpeople for follow-ups.Fashion District LA began conducting shopping tours for interested visitors who wanted to connect withspecific merchants. Realizing that it would take time away from doing their everyday jobs, the FashionBID decided to help incubate the shopping tour into its own business. It worked with other BID membersto provide a low-cost commercial space and supply a portion of the initial seed capital.Result:Both the Downtown Center and Fashion District LA BIDs served as the connectors. The housing tourshave consistently been well attended, proof that they are filling a need in the community, even during theeconomical downturn experienced in 2008. The shopping tours have even allowed visitors to be able todownload and use Podcasts of different self-guided tours.The BIDs were able to provide a service that satisfies a variety of interests, from a prospective residentto businesses moving into the area, stimulating the demand in both areas. As a result, the number ofresidents moving to Downtown L.A. is increasing, several key businesses have been recruited to Down-town and the Fashion District has seen a flurry of visitors. The Los Angeles BID Consortium I 13
  • 14. Downtown Industrial District:Storage Depot of Personal Belongings for HomelessChallenge:BIDs often take the toughest challenges that seem to have nosolution and turn them into an opportunity that provides a greatbenefit to its members. The Downtown Industrial BID began re-ceiving calls from its members that homeless people would leave behind their belongings in front of theirbusinesses, thus disrupting the ability of these firms to operate. BID security patrols would respond tothe calls and remove the “abandoned” items. The problem arose that if they removed those items, wherewould they go, as it was illegal to simply throw away someone’s personal belongings?Action:Realizing that this problem was a frequent recurrence in this area, the BID staff, together with homelessadvocates, the LAPD and the City Attorney’s office, developed the concept of a storage depot forpersonal belongings. The goal was to create a place where individuals could leave their belongingsinstead of having to carry them around. A BID board member donated a 20,000 sq.ft. warehouse wherethe BID placed 500 locked storage bins that would hold personal belongings. Individuals that need thistype of service can check in their belongings and leave them in secure storage for a renewable period ofseven days.Result:This solution dramatically decreased the problem of blocked commercial doorways, decreased visualblight in the business district, respected the rights of the disadvantaged and allowed individuals to have asafe place to store their belongings. It remains today as the only such storage center of its kind in the U.S.Leimert Park: Personal Assistance FairChallenge:Leimert Park BID covers the area on Crenshaw Boulevardthat is the home of African American art and culture in LosAngeles and the vibrant Baldwin Hills Plaza. The area beganexperiencing a challenge with a rise in homelessness. At their weekly meetings, BID members began in-forming staff that there was an increasing population of homeless individuals in the area and feared thatthey would deter potential customers from visiting their businesses. The BID decided to take a closerlook at the situation and find out who these people were and how they could be helped.Action:BID staff conducted outreach to the homeless and determined that many had mental health issues. Theyfound that others had recently become homeless because of financial issues. The BID decided that itcould not ignore these new members of their community. The BID put together a health fair and invitedmany social service providers (e.g. Veterans Affairs Department, Social Security Department, child careservices, health providers) to engage the displaced individuals and assist them.Result:The event connected individuals with the services they needed. As a result, the district saw a decline inthe number of homeless, not because they were pushed out, but because they were finally receiving theservices they needed. Due to its success of the event, it is viewed as a model and will be utilizedagain if needed. The Los Angeles BID Consortium I 14
  • 15. South Los Angeles Industrial Tract BID (SLAIT):Clean and Safe ProgramsChallenge:Long regarded the City’s “Dumping Grounds”, the SLAIT areahad been overrun by debris and high levels of crime. Many ofthe industrial parcels were owned by absentee landlords whoin some cases had not seen their property in many years.Around 2006 the area became a Redevelopment Area andthe CRA provided seed money to form a BID as an effort to revitalize the community. But to get the BIDoff the ground, it first needed to convince the disconnected landlords that their voluntary participation inpaying assessments would result in change the area for the better.Action:SLAIT’s first actions were to implement its Clean and Safe programs. SLAIT contracted a cleaningservice to pick-up the industrial and commercial trash that was entering the area. It also hired a securityservice that worked in conjunction with LAPD to increase patrolling of the area. Lastly, the CRA pur-chased and installed security cameras throughout the district with the agreement that the BID would payfor their maintenance.Result:The BID’s actions had an immediate impact to the area. The security patrols assisted in lowering thelevel of crime and the number of illegal vendors that previously operated in the district. The cameras notonly deterred crime but also scared away potential dumpers who had previously been able to get awaywith their illegal dumping. The deterrence of additional dumping allowed cleaning crews to focus onthe removal and clean-up of long-time debris. As progress became visible, property owners began toengage in a dialogue with BID officials.Studio City BID: Creation of Local Parking StructureChallenge:The property owners along Ventura Boulevard began receiv-ing complaints from the local businesses that there was notenough street parking available. The lack of parking posed arisk that customers might find another more convenient loca-tion to do their shopping and dining.Action:The property owners decided to band together and form a BID. They had seen how the BID format hadhelped other areas in the city solve their issues of parking. One of the main reasons that the Studio CityBID was formed was to create more parking for Studio City. Upon formation of the BID, one of the firstactions of the BID was to hire a parking consultant to prepare a study on the parking problem. The BIDworked with the local city council office to turn a city-owned parking lot into a multi-story structure.Result:A public parking structure with 390 spaces was created, resulting in an overall gain in the number ofparking spaces available in the area, which in turn attracted more customers to the local businesses. The Los Angeles BID Consortium I 15
  • 16. Wilshire Center BID: Cool DistrictChallenge/Opportunity:The Wilshire Center BID area is a dense collection ofhigh-rise office buildings, hotels, large regional shoppingcomplexes, entertainment centers and diverse residentialbuildings. Seeking an innovative approach to address the issues posed by climate change, the BIDcreated the first Cool District in North America. The BID has pledged to reduce its greenhouse gasemissions (GHG) of its existing buildings and infrastructure by at least two percent every year over thenext 40 years. The implementation of this commitment will create a healthier district and planet as wellas inspire other BIDs to do the same.Action:Their vision incorporates all aspects of urban life including home, work, transportation and food, as wellas, durable and consumables goods. From this perspective three categories will be considered in termsof resource management and carbon reductions: Buildings, Transportation, and Goods.Result:The District’s strategy for carbon reduction success is based on an overall vision starting with imple-menting energy efficiency measures and renewable energy in its existing building portfolio. The com-mercial and more challenging residential buildings will be audited, retrofitted and monitored to achieveat least an aggregate 20% and possibly up to 35% energy savings over the next 10 years. The BID willleverage energy and environment-related programs with the City programs and services, such as recy-cling, transportation and water usage. This strategy will increase the economic vitality, energy security,and environmental quality in the District. The Los Angeles BID Consortium I 16
  • 17. “These are not the splashy things, they are the nuts and bolts of keeping an area vibrant and functional.” Cecilia Estolano CEO of CRA/LA Conclusion: a Vision for the FutureWhere do the BIDS go from here? If there is one thing that any BID member will tell you, it’s that thework never stops. While the BIDs have come up with some innovative programs that have had success,they understand that they cannot stop and rest on their laurels. A city the size of Los Angeles facesdifficult challenges in providing the types of services that businesses need in order to thrive, even whenthe economy is doing well. BIDS recognize that the city is faced with mounting budget deficits and thatit must cut back on services. It is important for the city to know it is not left alone in these tough times.The BIDs will continue to be a committed partner.BIDs will continue providing the essential services (keeping communities clean and safe) that their mem-bers need and continue to find dynamic solutions to complex problems. BID services allow their mem-bers to focus on keeping their businesses going, without having to divert their attention to other matters.Every time a BID is renewed, it is a testament that the businesses believe in their work. Some BID mem-bers refer to the assessment as their donation to the community. In spite of the difficult times that theCity finds itself in, the public-private BID model will sustain communities and in some cases keep themfrom deteriorating. In good economic times, the BID model is used to revitalize an area in order to attractnew businesses to come in. At the present time, the BIDs will work to sustain businesses and find waysto keep them afloat.RecommendationsIf there was one thing that every BID would like to see more of is better communication between the cityand the BIDs. The Consortium has identified four initiatives that will allow for better communication andfoster a stronger partnership: 1. Inclusion of BIDs into the early notification process for public and private development projects like neighborhood councils 2. Creation of a BID Czar to provide one source of interface between the BIDs and the City of Los Angeles 3. Allow BIDs to provide monitoring and enforcement for the City in areas like illegal tree trimming, illegal vending, trash violations, news rack and street furniture violations 4. Request that LAPD include a training module “Working with Business Improvement Districts” into its existing community policing training to strengthen the relationship between LAPD and BIDsEarly NotificationBIDs are the keeper of knowledge for a business district. “You can’t attract the economic investmentBIDs that are actively engaged with their members an on without having the clean and safe programs.a day-to-day basis know what the environment is like in But you can’t pay for those services withouttheir district. But, when it comes to public notification investment.”on a city project (street maintenance, private entityconstruction), they are sometimes the last to receive Carol Schatznotification. The BID knows the most effective method Executive Director of Downtown Center BID The Los Angeles BID Consortium I 17
  • 18. of communication to its members. If the City departments share more information sooner, the BIDscan assist in notifying the property and business owners of the work. They can send out emails, placephone calls and post information in their newsletters and websites to reach all interested parties. TheBIDs would also like to receive the early notification on the list of development projects in their area sothat they can educate themselves on these projects and pass the information along to their members. Acity system is currently set up for notifying neighborhood councils and BIDs would benefit greatly from asimilar notification system.Creation of a City BID OfficialOne of the strengths of a BID is their knowledge of the inner workings of the city. BIDs have establishedworking relationships with city staff and work together to solve complex issues that often take years toresolve. Just like the BID serves as a one-stop clearing house, the BID would like to work with one cityofficial who handles BID issues, a so-called “BID Czar.” This individual could be someone in the Mayor’soffice who would serve as the point person on BID issues. This official would be responsible for workingwith the all the different BIDs to form relationships with BID staff and serve as an intermediary with othermayoral staff, city council offices and city departments. This connection would establish a better line ofcommunication between the city and business communities and within the city’s own structure.The BIDs as Monitors and EnforcersAllow the BIDs to serve as the eyes on the streets. The RAND Report found that by increasing thesecurity presence in an area, the BIDs have been effective in lowering crime. Aside from violent crime,there are types of violations and transgressions that the city does not have the resources to go after.When a company has illegally trimmed trees or a street furniture company has illegally installed newsracks without the necessary permits, the BID can serve as the city’s monitor and enforcer not onlythrough surveillance cameras but through its BID ambassadors. BID ambassadors can work with lawenforcement, building and safety officers, and others to alert the proper authorities of illegal activity andticket the violators. The BID has the ability to assist in keeping a record of the violation as well. The Citycannot monitor every corner, but where there is a BID, it can assist in enforcing the law and creating asustainable and vibrant business environment.LAPD Working With BIDsA key partnership of our security and safety programs is the relationship we have with LAPD officers whoare assigned to the BID areas. BID security interfaces with LAPD officers and works in partnership withLAPD to address quality of life issues in our communities. BIDs are often referred to by LAPD as “forcemultipliers” in keeping business districts safe. A “Working with the BIDs” training module as a part ofthe LAPD’s community policing curriculum would provide officers a working knowledge of BIDs beforethey encounter BID public safety personnel on the streets. The cadets will gain an understanding of howLAPD and the BIDs work cooperatively to effectively prevent crime. We strongly believe that this will fur-ther strengthen and enrich the relationship between the BIDs and the LAPD.As we move ahead this year, we want to emphasize to the City that it is not left alone to face the eco-nomic challenges. The BIDs are a key partner with the City and hope to continue that successful partner-ship for many years to come. The Los Angeles BID Consortium I 18
  • 19. Appendix A: Assessments Paid byLos Angeles Business Improvements Districts from 1994-Present Total Assessments Paid: $219,079,117FISCAL YEAR DOLLAR TOTALS FY 94-95 $327,106 FY 95-96 $3,332,200 FY 96-97 $3,344,272 FY 97-98 $8,786,060 FY 98-99 $13,174,024 FY 99-00 $15,688,154 FY 00-01 $17,888,206 FY 01-02 $19,709,857 FY 02-03 $19,335,649 FY 03-04 $19,781,680 FY 04-05 $21,471,221 FY 05-06 $20,400,427 FY 06-07 $27,799,922 FY 07-08 $28,040,338 The Los Angeles BID Consortium I 19
  • 20. Appendix B: History of the Bid MovementBIDs were developed by business communities for the purpose of raising the funding to provide servicesand benefits beyond those provided by municipal government. “BIDs are self-organizing, local private-public organizations that collect assessments from local business merchants or property owners (RANDReport: The Effect of Business Improvement Districts).” The idea of a special assessment district orpaying for special benefits is based on a California statute known as the “Parking and Business Improve-ment Area Law of 1965.” This law expanded on earlier assessment legislation that was designed to payfor public improvements such as street lights or sidewalk improvements.Milestones: • 1965 – Model Statute for creation of BIDs was introduced in California • Early 1990’s – business owners on downtown’s Broadway corridor joined forces to establish the first BID to oversee the restoration of the historic theatre district. • 1992 - City Clerk’s office directed to facilitate establishment of BIDs and oversee operations. • 1993 – first L.A. BID ordinance enacted establishing the Broadway BID • 1994 – the State Legislature approves the Property and Business Improvement District Law (Streets & Highways Code 36600 et seq.) that enables a city, county or joint powers authority the power to levy assessments on businesses OR properties within a district’s boundaries • 1995 – Wilshire Center merchant-based improvement district established • 1996 -1997 – property-based business improvement districts established (Downtown Center, Fashion District, Century Corridor – Gateway to L.A., Hollywood Entertainment District, Lincoln Heights, Tarzana) Since 1994, 38 BIDs have sprung up throughout Los Angeles, each with the goal of creating a thrivingand inviting business environment. They exist in all 15 of the Council Districts and range in size fromsmall to large providing a wide array of services to their local communities. The Los Angeles BID Consortium I 20
  • 21. Appendix C: los angeles city bid consortium survey LOS ANGELES CITY BID CONSORTIUM SURVEYDear BID Member: The Los Angeles BID Consortium serves as a forum for sharing,discussing and resolving common BID issues, and to provide a platform foreducating local governmental officials about BID activities and selected BIDinterests. It is to this end that the following survey has been developed with theresults to be used as the basis for a PowerPoint presentation available to each ofyou, suitable for use with elected officials, local businesses and others. Pleasecomplete your survey by August 15. Please note all data you provide is confidentialand will be used only in aggregate. 1. BID Name: _____________________________________________________ 2. Contact Person: ________________________Title: _____________________ 3. Phone: (________) _________________ e-mail: ___________________ 4. Council District: _____________ � Property BID or � Merchant BID 5. Years in operation: ________________ Number of renewals: _______________ 6. Number of board directors: ___________ 7. What size area does your BID encompass (square blocks) _____________ 8. Total # Number of assessed properties or businesses: _______________ 9. Based on the number of assessed entities in your BID, what is the percentage ratio by business type as follows (as of Fiscal Year 2007): a. Retail business ____________% b. Office ____________% c. Industrial ____________% d. Hotel/paid lodging ____________% e. Other commercial ____________% f. Residential ____________% g. Parking ____________% h. Total 100% 10. Please insert the number of BID Full and Part time staff and contracted staff in the appropriate box: Full Time Part Time Contract Staff Staff Staff Marketing Administrative Security Maintenance Ambassador/information Other services: (specify) Other services: (specify) Total BID staff/contractors The Los Angeles BID Consortium I 21
  • 22. LA BID Consortium BID Survey 11. Please indicate your FY 2007 annual budget for each of the major categories below. (Note, if these are not your BID’s exact categories please specify and include those amounts in the “Other” spaces below): a. Security $_____________________ b. Street/Sidewalk repair $_____________________ c. Street/Sidewalk cleaning/maintenance $_____________________ d. Graffiti Removal $_____________________ e. Marketing $_____________________ f. Administrative $_____________________ g. Ambassadors/information $_____________________ h. Other (specify) ____________ $_____________________ i. Other (specify) ____________ $_____________________ j. Other (specify) ____________ $_____________________ k. Other (specify) ____________ $_____________________ l. Other (specify) ____________ $_____________________ m. Other (specify) ____________ $_____________________ n. Total $___________________11a. Did the BID receive any funds other than from assessed businesses? If so, what werethose sources and what % of your operating budget did they represent in FY 2007? � Did not receive outside non-assessment funds � Did receive outside funds Sources: ______________________________________________________ % of FY 2007 budget: ____________%12. For each of the services listed below, please quantify the services performed by the BIDstaff or for the BID by BID contractors for fiscal year 2007:a. Security: � Performed by BID � Contracted out � Not Performed by BID (skip tonext) # of person-hours: ____________ # calls received: ____________ # video surveillance cameras: ___________b. Trash pick-up: � Performed by BID � Contracted out � Not Performed by BID (skipto next) # of bags collected during FY: ______________________c. Adopt-A-Basket: � Performed by BID � Contracted out � Not Performed by BID (skipto next) # of cans sponsored (as of end of FY 2007): ______________________c. Graffiti Removal: � Performed by BID � Contracted out � Not Performed by BID(skip to next) # of removal request calls answered during FY:_______________ The Los Angeles BID Consortium I 22
  • 23. LA BID Consortium BID Surveyd. Street/Sidewalk Cleaning: � Performed by BID � Contracted out � Not Performedby BID (skip to next) Miles of sidewalk cleaned during FY:__________e. Tree Planting: � Performed by BID � Contracted out � Not Performed by BID (skip tonext) Annual # of trees planted ________________f. Tree Trimming: � Performed by BID � Contracted out � Not Performed by BID (skipto next) Annual # of trees trimmed: __________________g. Street/Sidewalk repairs, improvements: � Performed by BID � Contracted out� Not Performed by BID (skip to next) # of repairs made: ___________________h. Beautification Projects: (e.g. center medians, street furniture, lighting, planters, etc.) � Performed by BID � Contracted out � Not Performed by BID (skip to next) # of projects during FY: ___________________ Please describe these projects) __________________________________________i. Transportation Programs/Initiatives: � Performed by BID � Contracted out � NotPerformed by BID (skip to next) Please describe these programs/initiatives: ________________________________k. Marketing: � Performed by BID � Contracted out � Not Performed by BID (skip tonext) k1. Advertising: � Performed by BID � Contracted out � Not Performed by BID (skipto next) Annual value of ad placements during FY: $____________________ K2. Public Relations: � Performed by BID � Contracted out � Not Performed by BID(skip to next) Value of media coverage during FY:$____________________ K3. Special Events: � Performed by BID � Contracted out � Not Performed by BID(skip to next) # of events held during FY: ________________ Please list the names of the events: __________________ The Los Angeles BID Consortium I 23
  • 24. LA BID Consortium BID SurveyK4. Website: � BID has website � BID does not have web site (skip to next) # of website visits for FY:____________________K5. Visitor Programs: � Performed by BID � Contracted out � Not Performed by BID(skip to next) Please check which of the following visitor programs the BID performed or provided: � visitor maps ---! Number printed (annual supply) ___________ � visitor area guides/directories ! Number printed (annual supply) ___________ � visitor marketing � visitor information phone line ! Number calls answered: _________________ � Other (please specify) K6.Other marketing programs (specify) ____________________________________l. Green Initiatives/Recycling programs: � BID has such programs place � BID doeshave such programs (skip to next) Tons of materials recycled during FY: __________________ Please describe these programs: _______________________________m. Homeless Outreach programs: � Performed by BID � Contracted out � NotPerformed by BID (skip to next) # annual requests for assistance during FY: __________________13. What makes your BID or BID area distinctive (e.g. largest concentration of hotel roomsin Los Angeles, historic venue or district, etc.)_________________________________________________________________________14. Please provide pictures, charts or other visual aids by e-mail to Laurie Hugheslhughes@gatewaytola.org . Examples include: ! BID Logo ! Recognizable photos of the BID (scan photos to CD) ! List of Board MembersNote, pictures or materials not in a digital or electronic format can be scanned onto a CDand mailed to Laurie Hughes, Gateway to L.A., 6151 W. Century Blvd., Ste. 121, Los Angeles, CA90045. Thank You Very Much! The Los Angeles BID Consortium I 24

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