Arts District looking northeast towards SCI-Arc. photo Katie McArthy

Property Owners Establish Downtown LA’s
10th Business Improvement District:

The Arts District BID

CCEA, which will contract to provide services to the district, now represents three BIDs: Toy District, Downtown Industrial District and Arts District. These three BIDs represent 1,100 property owners, 1,600 businesses and 15,000 employees in a 110-block area from Los Angeles Street to the Los Angeles River.

..Nearly two years ago, a group of Downtown property owners approached CCEA to discuss forming a Business Improvement District in the area east of Alameda.
..The Steering Committee, chaired by longtime Arts District property owner Howard Klein (Ocean Beauty Seafood, Factory Place Lofts), laid out a vision and a budget for the primary services needed in the area: security, maintenance, marketing and advocacy. After a successful petition stage, the City launched the official Proposition 218 election earlier this year.
On September 12 th, 2006, the Arts BID election closed. The ballot results:
64% YES
36% NO
...On the following day, the Los Angeles City Council certified the election results and voted to establish the BID. CCEA will administer the new Arts District BID in addition to the existing Toy District and Downtown Industrial District. CCEA now represents the eastern half of Downtown LA – 110 blocks, 1,100 property owners, 1,600 businesses, and 15,000 employees.
...CCEA and the Arts District BID Steering Committee wish to thank all of the property owners who voted to establish the BID – we are honored by your vote of confidence and look forward to the opportunity to serve you!

About the Arts District BID: The Arts District BID is roughly bounded by 7 th Place, Alameda, the 101 freeway, and the Los Angeles River(please see map for further detail). It represents the most diverse neighborhood within Downtown Los Angeles – it is home to a major railyard, cold storage, pallet yards, warehouses, food processing, furniture design/manufacturing, fashion design/manufacturing, personal storage, government facilities, and film locations. It is also home to thousands of artists, and their live/work spaces that support creative entrepreneurial businesses and non-profits. The district is also home to a major school of architecture and eclectic retail and galleries. The Arts BID annual budget is approximately $1 million. The District will offer 24/7 security, daytime maintenance, marketing, and government/community advocacy. The Arts District BID will officially launch services to the area in January 2007.


...The Management District Plan for the Arts District has been developed in response to the comments and suggestions obtained from property business owners and residents through a series of surveys, focus groups and individual meetings. As described in the plan, it is proposed that the BID will provide enhanced safety, maintenance, business support and economic development programs, above and beyond those provided by the City.

FAQ

What is a BID (Business Improvement District)?

A business improvement district (BID) (also known as a special improvement district or a business improvement area) is a public/private sector partnership in which property and business owners of a defined area elect to make a collective contribution to the maintenance, development and marketing/promotion of their commercial district.

BIDs typically provide services such as street and sidewalk maintenance, public safety officers, park and open space maintenance, marketing, capital improvements, and various development projects. The services provided by BIDs are a supplement to the services already provided by the municipality.

The proposed Arts BID is a property-based BID, which means that the BID is funded through special assessments collected from the property owners in the defined boundaries of the district. If the BID is approved, this assessment will appear on your property tax bill. This assessment is passed from the County Assessor to the Los Angeles City Clerk, who distributes funds to your BID.

What does this petition mean?

BID formation requires two steps:

1. Petition process – this surveys property owners to gauge interest in BID formation. Property owners representing 50% + $1 of the total BID District assessment must vote yes in order to move on to step 2.

2. Ballot process – ballots are sent to all property owners within the proposed BID boundaries. Property owners may vote “yes” or “no.” The City calculates the total assessment for the ballots received. Property owners representing 50% + $1 of that total must vote “yes.”

If the proposed Arts BID is approved, it will have a 5-year life, after which it must be renewed by a new vote of the district property owners.

What is the BID budget?

The proposed Arts BID budget is $1,008,486 million:

$811,831 Safe and Clean programs (security and maintenance) 80.5%

$70,594 Advocacy/Administration 7%

$65,552 Communications/Development (marketing/promotion) 6.5%

$60,509 Reserve fund (to cover slow or delinquent taxpayers) 6%

Why should I pay for a BID?

• The City is unable to provide the level of clean and safe services that this area needs.

• The BID can create and maintain a consistently cleaner and safer public-right-of way for your employees, visitors and customers. 80.5% of the BID budget goes directly to maintenance and security.

• Physical blight (trash, debris, graffiti, encampments) and perceived blight (negative impressions of an area) adversely affect your property value. A BID can improve the overall perception of a community through maintenance, security, advocacy and marketing.

• The proposed Arts BID area is the only substantial portion of Downtown that has not established a BID. Without the security, maintenance and advocacy that a BID can provide, there is every reason to expect problems to worsen in the Arts BID area.

• BIDs have clout. BIDs have significant political strength because they advocate for hundreds of property owners in the District. For example, the City of Los Angeles routinely consults with BIDs in order to make policy decisions for a community. BIDs also lobby at the state and federal levels.

• BIDs can help you solve problems in your community and identify resources for your business.

• Unlike many taxes, the BID assessment provides direct, known services to your area. You have the opportunity for input and control over how these tax dollars are spent.

• The Arts BID must be renewed every five years by a new vote of the assessed property owners. CCEA currently operates two BIDs, Toy District and Central Industrial District, which were formed in 1998. In 2003, both were successfully renewed by a majority of property owners who are pleased with BID services. During renewal, Central Industrial expanded its boundaries at the request of property owners who wanted to become part of the BID.