The Washington Post recently published a well-done rationale for business improvement districts (BIDs) in its coverage area. The article offers a good review for district management corporation board members and district stakeholders in New Jersey of the many functions and benefits of a well-run BID.
While “business improvement district” has become a popular term, the New Jersey statute enabling such districts refers to them as special improvement districts (SIDs). It is important to remember that the funds that pay for SID activities constitute an assessment, not a tax. An assessment pays directly for a specific benefit — in this instance, the operation of the SID, managed by a non-profit district management corporation.