The State of Los Angeles’

Business Improvement Districts

Why BIDs Matter

APRIL 2009

Prepared For:

Prepared by:
 table of contents

INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

EXECUTIVE SUMMARY. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

BIDS IN LOS ANGELES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

BID SURVEY RESULTS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

HIGHLIGHT OF SUCCESSFUL PROGRAMS. . . . . . . . . . . . . . . . . . . . . . . . . . 12

CONCLUSION: VISION FOR THE FUTURE . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

Appendix A: Total Assessments Paid by LA BIDS . . . . . . . . . . . . . . . 19

APPENDIX B: HISTORY OF THE BID MOVEMENT. . . . . . . . . . . . . . . . . . . . . 20

APPENDIX C: LOS ANGELES CITY BID CONSORTIUM SURVEY . . . . . . . . 21

The Los Angeles BID Consortium

Arts District Dear Honorable Councilmembers,
Byzantine-Latino Quarter Pico Blvd.

Brentwood Village We are excited to formally introduce to you the Los Angeles Business Improvement
Century City District Consortium (Consortium). The Consortium collectively represents the current
Chatsworth 38 Business Improvement Districts (BIDs) of Los Angeles that exist throughout the city.
Downtown Center

Downtown Industrial Formed in the 1990s, the Consortium has made significant progress working to resolve
Downtown San Pedro various citywide issues. In 2008, the Consortium prepared a survey that was completed
East Hollywood by BID members. It was from these results that we captured the key services that
Encino Commons BIDs are providing everyday. And so, we proudly present you with the “State of Los
Fashion District Angeles’ Business Improvement Districts Report: Why BIDs Matter.”
Figueroa Corridor

Gateway to LA In this report you will learn about some of the innovative programs that the BIDs
Greater Leimert Park have created to enhance the overall spectrum of business in communities. Our results
Highland 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 interactions
Historic Old Town Canoga between businesses and the City of Los Angeles.
Hollywood Entertainment District

Hollywood Media District We will provide you with a snapshot of our programs and we look forward to discussing
L.A. Chinatown in more detail what makes the Consortium so effective and what more we can do
Larchmont Village for businesses all across Los Angeles. In addition, we have prepared a video that
Lincoln Heights Industrial Park includes interviews with city officials and members of the business community that
Little Tokyo have experience coordinating with BIDs and who understand the unique and effective
Los Feliz Village dynamic they bring to business communities throughout the region.
North Hollywood Transit

Old Granada Village We hope you find this report informative and useful in understanding our role in the
Panorama City city. As your partners, we work everyday to help make the City of Los Angeles a better
South Los Angeles Industrial Tract place to live, work and play. We extend an invitation to you to attend our monthly
South Park meetings and meet our wonderful members.
Studio City

Sunset & Vine Respectfully yours,

Sylmar

Tarzana Safari Walk

Toy District

Village at Sherman Oaks Laurie Hughes

Westchester Chair, Los Angeles BID Consortium
Wilmington

Wilshire Center

The Los Angeles BID Consortium

 Executive Summary

In 2008, the Consortium distributed a survey amongst its members in order to collect information on the
services and programs that each of the BIDs provide. The findings from the survey helped provide the
picture 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 of
14 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 year
2007. We concluded that regardless of the size of the BID, all BIDs spend the majority of their budget on
the following three services:

1. Security and Safety

2. Community Beautification and Cleanliness
3. Economic Development and Marketing

A 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 percent

The study reinforces our findings that the dollars spent in paying for security personnel are providing the
BIDs with a significant return on their investment. In 2007 the total number of dollars spent by all the
BIDs 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 year

In 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 and
consultants are called upon by members and city officials to solve district-wide problems, serve as the

The Los Angeles BID Consortium I 4

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 individual
business, 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 they
will 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 with
the 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

BIDS in Los Angeles

The Los Angeles BID Consortium I 6

 “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 Results

Background on BID Survey

In 2008, the Consortium distributed a survey amongst its members in order to collect information on the
programs and services that each of the BIDs provide. The data collected was based on numbers from
the fiscal year 2007. After gathering the information, the Consortium developed four goals that it would
like 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 City

This 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 BID

The BID Survey (Appendix C) had a total of 14 questions that asked members to state the percentage
of 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 of
the respondents were executive directors of their BIDs, and the remaining participants were either the
deputy directors or marketing managers.

Typical Description of a BID

Out 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 blocks

Upon 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

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 become
convinced 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 was
a certain type of business that would receive the most benefit from a BID model. The survey results
showed that over a third of the businesses in the BIDs were classified as retail. The primary services
that BIDs provide best suit the needs of retail businesses since they look to create an environment that is
safe 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 the
average number of full-time staff was two employees. In many of the cases, the executive directors are
BID 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 for
their members:

1. Security and Safety

2. Economic Development and Marketing
3. Community Beautification and Cleanliness
4. One-Stop Clearing House

Security & Safety

From our interviews, we found that the number one reason for forming a BID was to bring a private
security presence to the area. The majority of BIDs top priority is to provide a safe environment for
its 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 17,865

Survey respondents added that security personnel are often times the first responders and are sent
to 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 at
30 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

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 the
report, researchers looked at the official LAPD crime rates from 1994-2005, mapped the crime data to
the BID locations and identified the crime trends. From that data they determined that the decrease in
crime rates were not likely to have occurred “by chance alone.”

For some BIDs (Arts, Industrial and Fashion Districts) these percentages had a significant impact in
attracting 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 priority
to spend the necessary dollars on security patrols provides a significant return on their investment.

Community Beautification & Cleanliness

One 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, that
environment 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 sufficient

The BIDs’ ability to respond to their members’ needs often spurs services that go beyond trash removal
and 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 in
a timely manner. A majority of the respondents interviewed mentioned that an individual business owner
would 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 lighting

If you create an environment where order exists, members of the community begin to feel responsible for
maintaining a presentable appearance. If an area becomes blighted, members of the same community
no longer feel vested and begin to feel less concerned for their environment until it affects their ability to
operate. In some cases, providing “clean and safe” programs is merely the beginning for BIDs as we will
see in our next section.

The Los Angeles BID Consortium I 9

Economic Development & Marketing
What is your area doing to attract new businesses and retain existing ones? Los Angeles’ vast
geographic spread presents many challenges that other cities do not encounter. Los Angeles is made
up of 469 square miles. It is a collection of many diverse communities that have distinct needs. This
presents a challenge when a City sets to market itself and attract businesses. How do you market a
melting 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 apart
from other areas in an effort to attract the appropriate visitors and businesses. Each BID examines their
respective areas and identifies what makes them unique. The way Chinatown markets itself is very
different than the Pico Byzantine Latino Quarter. For 10 respondents, an average of $32,167 was spent
on advertising placements. These 10 BIDs found that by leveraging their dollars, it is far more cost
effective to advertise a package of businesses in their district instead of each business owner buying
an individual ad.

Special events are another tool for BIDs to enhance business. Nearly 90% of respondents organized a
special event to highlight the businesses of the area, expose the local residents to local resources and
attract new visitors to expand exposure. An emphasis on introducing local residents to local business
is a growing trend in all business districts. The widespread growth of mega-malls disenfranchised
residents 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 in
certain neighborhoods. It was not until the 1990s that property owners, in efforts to attract businesses
to fill empty store-fronts, offices and industrial spaces looked for a new model that could reawaken and
re-energize their area.

The BIDs implemented creative initiatives that provide a spotlight on their businesses. Some of these
efforts 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 business

These 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

BIDs: Business’ One-Stop Clearing House
During 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 their
business. Instead of calling the city, a member calls the BID staff and informs them of the issue. It is
from that point that BID staff take over the issue. In most cases, an issue or complaint is also affecting
several other businesses in the area. Staff will make calls to the appropriate city departments in order to
resolve the issue. A BID acts as “one-stop clearing house”. They not only handle the issues that affect
the entire district but also its individual members.

The BID acts as a unifying force serving as the hub of communication. Whether it is through monthly
newsletters, website updates, sending emails, placing phone calls or even knocking on doors, BID staff
is tasked with getting information to their stakeholders. Even if BID members have their differences with
each 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-encompassing
business 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 a
daily basis. It is not only during BID renewal time that a BID shows up to city council meetings. Often
times BID leadership or staff work to gather supporters to speak on issues affecting their community
and the region.

We found that a BID creates and implements a common vision. Are clean sidewalks and landscaped
street medians a priority? Or do they want to find ways to make their district a destination area? A BID
must have strong leadership if it wants to be able to implement that vision. The strength of the BID lies
in 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 or
she 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

 “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 Programs

Hollywood Entertainment District (HED):

Navigate Hollywood Website

Challenge:
In the late 1990s Hollywood embarked on revival to bring it back to the entertainment destination it had
been 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 victim
of its own success. The availability of parking spaces shrank and the many events it had would lead to
street closures that created traffic nightmares on the weekends. Business owners and landlords became
concerned 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 problems
lay ahead, they would not be deterred to travel. HED launched the Navigate Hollywood Website that
provides real-time information to the public about pending street closures, where to find parking facilities
and 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 street
closures or add parking, but it became the vehicle that presented visitors with information and options
they could use during their visit.

Gateway to LA Trolley: Making a Destination

Challenge:
Having the largest concentration of hotels in Los Ange-
les next to one of the world’s busiest airports has the
necessary ingredients to make an area a successful
destination location. The Century Boulevard corridor,
on the other hand, because of its location next to LAX,
has a misperception of high crime, congestion and lack
of what other destination places have: shopping, dining
and entertainment (SDE).

Action:
Seeing that visitors were taking their stays elsewhere, the stakeholders banded together and worked
with Gateway to LA BID to come up with a solution. In order to attract visitors, they needed to connect
visitors with what they wanted. They recognized that the area was surrounded by SDE opportunities
and 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

LA Trolley that runs daily from 9 a.m. to 9 p.m. The Trolley picks up visitors at 6 locations along Century
Blvd. and drops them off at the local SDE opportunities. Visitors have an opportunity to spend several
hours 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 to
handle the demand. By connecting hotel guests and businesses with SDEs, the hotels saw an increase
in 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 Tours

Challenge:
BIDs often act as an economic development agency focused on re-
awakening a particular area of the city. In the process, attracting the
right businesses is as important as attracting residents to an area to
be re-developed. The same applies to areas that are seeking to con-
nect the customers with business. It’s a related cycle: more residents
attract more business, and more business is attracted when there are
more residents.

Action:
The Downtown Center BID created a program for potential residents
and investors to be able to visit Downtown residences for lease and for
sale. Twice a month on Saturday, the BID hosts organized bus tours
showcasing several properties at a time. It is a convenient way for
anyone interested in the housing market in Downtown to get educated
about what the area has to offer and to get connected to the right
people for follow-ups.

Fashion District LA began conducting shopping tours for interested visitors who wanted to connect with
specific merchants. Realizing that it would take time away from doing their everyday jobs, the Fashion
BID decided to help incubate the shopping tour into its own business. It worked with other BID members
to 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 tours
have consistently been well attended, proof that they are filling a need in the community, even during the
economical downturn experienced in 2008. The shopping tours have even allowed visitors to be able to
download 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 resident
to businesses moving into the area, stimulating the demand in both areas. As a result, the number of
residents 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

Downtown Industrial District:
Storage Depot of Personal Belongings for Homeless

Challenge:
BIDs often take the toughest challenges that seem to have no
solution and turn them into an opportunity that provides a great
benefit 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 their
businesses, thus disrupting the ability of these firms to operate. BID security patrols would respond to
the calls and remove the “abandoned” items. The problem arose that if they removed those items, where
would 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 homeless
advocates, the LAPD and the City Attorney’s office, developed the concept of a storage depot for
personal belongings. The goal was to create a place where individuals could leave their belongings
instead of having to carry them around. A BID board member donated a 20,000 sq.ft. warehouse where
the BID placed 500 locked storage bins that would hold personal belongings. Individuals that need this
type of service can check in their belongings and leave them in secure storage for a renewable period of
seven days.

Result:
This solution dramatically decreased the problem of blocked commercial doorways, decreased visual
blight in the business district, respected the rights of the disadvantaged and allowed individuals to have a
safe 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 Fair

Challenge:
Leimert Park BID covers the area on Crenshaw Boulevard
that is the home of African American art and culture in Los
Angeles and the vibrant Baldwin Hills Plaza. The area began
experiencing 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 that
they would deter potential customers from visiting their businesses. The BID decided to take a closer
look 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. They
found that others had recently become homeless because of financial issues. The BID decided that it
could not ignore these new members of their community. The BID put together a health fair and invited
many social service providers (e.g. Veterans Affairs Department, Social Security Department, child care
services, 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 in
the number of homeless, not because they were pushed out, but because they were finally receiving the
services they needed. Due to its success of the event, it is viewed as a model and will be utilized
again if needed.

The Los Angeles BID Consortium I 14

South Los Angeles Industrial Tract BID (SLAIT):
Clean and Safe Programs

Challenge:
Long regarded the City’s “Dumping Grounds”, the SLAIT area
had been overrun by debris and high levels of crime. Many of
the industrial parcels were owned by absentee landlords who
in some cases had not seen their property in many years.
Around 2006 the area became a Redevelopment Area and
the CRA provided seed money to form a BID as an effort to revitalize the community. But to get the BID
off the ground, it first needed to convince the disconnected landlords that their voluntary participation in
paying 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 cleaning
service to pick-up the industrial and commercial trash that was entering the area. It also hired a security
service 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 pay
for their maintenance.

Result:
The BID’s actions had an immediate impact to the area. The security patrols assisted in lowering the
level of crime and the number of illegal vendors that previously operated in the district. The cameras not
only deterred crime but also scared away potential dumpers who had previously been able to get away
with their illegal dumping. The deterrence of additional dumping allowed cleaning crews to focus on
the removal and clean-up of long-time debris. As progress became visible, property owners began to
engage in a dialogue with BID officials.

Studio City BID: Creation of Local Parking Structure

Challenge:
The property owners along Ventura Boulevard began receiv-
ing complaints from the local businesses that there was not
enough street parking available. The lack of parking posed a
risk 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 had
helped other areas in the city solve their issues of parking. One of the main reasons that the Studio City
BID was formed was to create more parking for Studio City. Upon formation of the BID, one of the first
actions of the BID was to hire a parking consultant to prepare a study on the parking problem. The BID
worked 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 of
parking spaces available in the area, which in turn attracted more customers to the local businesses.

The Los Angeles BID Consortium I 15

Wilshire Center BID: Cool District

Challenge/Opportunity:
The Wilshire Center BID area is a dense collection of
high-rise office buildings, hotels, large regional shopping
complexes, entertainment centers and diverse residential
buildings. Seeking an innovative approach to address the issues posed by climate change, the BID
created the first Cool District in North America. The BID has pledged to reduce its greenhouse gas
emissions (GHG) of its existing buildings and infrastructure by at least two percent every year over the
next 40 years. The implementation of this commitment will create a healthier district and planet as well
as inspire other BIDs to do the same.

Action:
Their vision incorporates all aspects of urban life including home, work, transportation and food, as well
as, durable and consumables goods. From this perspective three categories will be considered in terms
of 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 achieve
at least an aggregate 20% and possibly up to 35% energy savings over the next 10 years. The BID will
leverage 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

 “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 Future

Where do the BIDS go from here? If there is one thing that any BID member will tell you, it’s that the
work 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 faces
difficult challenges in providing the types of services that businesses need in order to thrive, even when
the economy is doing well. BIDS recognize that the city is faced with mounting budget deficits and that
it 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 the
City finds itself in, the public-private BID model will sustain communities and in some cases keep them
from deteriorating. In good economic times, the BID model is used to revitalize an area in order to attract
new businesses to come in. At the present time, the BIDs will work to sustain businesses and find ways
to keep them afloat.

Recommendations
If there was one thing that every BID would like to see more of is better communication between the city
and the BIDs. The Consortium has identified four initiatives that will allow for better communication and
foster 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 BIDs

Early Notification
BIDs are the keeper of knowledge for a business district. “You can’t attract the economic investment
BIDs 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 without
their district. But, when it comes to public notification investment.”
on a city project (street maintenance, private entity
construction), they are sometimes the last to receive Carol Schatz
notification. The BID knows the most effective method Executive Director of Downtown Center BID

The Los Angeles BID Consortium I 17

of communication to its members. If the City departments share more information sooner, the BIDs
can assist in notifying the property and business owners of the work. They can send out emails, place
phone calls and post information in their newsletters and websites to reach all interested parties. The
BIDs would also like to receive the early notification on the list of development projects in their area so
that they can educate themselves on these projects and pass the information along to their members. A
city system is currently set up for notifying neighborhood councils and BIDs would benefit greatly from a
similar notification system.

Creation of a City BID Official

One of the strengths of a BID is their knowledge of the inner workings of the city. BIDs have established
working relationships with city staff and work together to solve complex issues that often take years to
resolve. Just like the BID serves as a one-stop clearing house, the BID would like to work with one city
official who handles BID issues, a so-called “BID Czar.” This individual could be someone in the Mayor’s
office who would serve as the point person on BID issues. This official would be responsible for working
with the all the different BIDs to form relationships with BID staff and serve as an intermediary with other
mayoral staff, city council offices and city departments. This connection would establish a better line of
communication between the city and business communities and within the city’s own structure.

The BIDs as Monitors and Enforcers

Allow the BIDs to serve as the eyes on the streets. The RAND Report found that by increasing the
security 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 news
racks without the necessary permits, the BID can serve as the city’s monitor and enforcer not only
through surveillance cameras but through its BID ambassadors. BID ambassadors can work with law
enforcement, building and safety officers, and others to alert the proper authorities of illegal activity and
ticket the violators. The BID has the ability to assist in keeping a record of the violation as well. The City
cannot monitor every corner, but where there is a BID, it can assist in enforcing the law and creating a
sustainable and vibrant business environment.

LAPD Working With BIDs

A key partnership of our security and safety programs is the relationship we have with LAPD officers who
are assigned to the BID areas. BID security interfaces with LAPD officers and works in partnership with
LAPD to address quality of life issues in our communities. BIDs are often referred to by LAPD as “force
multipliers” in keeping business districts safe. A “Working with the BIDs” training module as a part of
the LAPD’s community policing curriculum would provide officers a working knowledge of BIDs before
they encounter BID public safety personnel on the streets. The cadets will gain an understanding of how
LAPD 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

 Appendix A: Assessments Paid by
Los Angeles Business Improvements Districts from 1994-Present

Total Assessments Paid: $219,079,117

FISCAL 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

 Appendix B: History of the Bid Movement

BIDs were developed by business communities for the purpose of raising the funding to provide services
and 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 (RAND
Report: The Effect of Business Improvement Districts).” The idea of a special assessment district or
paying 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 pay
for 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 thriving
and inviting business environment. They exist in all 15 of the Council Districts and range in size from
small to large providing a wide array of services to their local communities.

The Los Angeles BID Consortium I 20

 Appendix C: los angeles city bid consortium survey

LOS ANGELES CITY BID CONSORTIUM SURVEY

Dear BID Member: The Los Angeles BID Consortium serves as a forum for sharing,
discussing and resolving common BID issues, and to provide a platform for
educating local governmental officials about BID activities and selected BID
interests. It is to this end that the following survey has been developed with the
results to be used as the basis for a PowerPoint presentation available to each of
you, suitable for use with elected officials, local businesses and others. Please
complete your survey by August 15. Please note all data you provide is confidential
and 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

 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 were
those 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 BID
staff or for the BID by BID contractors for fiscal year 2007:

a. Security: � Performed by BID � Contracted out � Not Performed by BID (skip to

next)

# of person-hours: ____________
# calls received: ____________
# video surveillance cameras: ___________

b. Trash pick-up: � Performed by BID � Contracted out � Not Performed by BID (skip
to next)

# of bags collected during FY: ______________________

c. Adopt-A-Basket: � Performed by BID � Contracted out � Not Performed by BID (skip

to 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

 LA BID Consortium
BID Survey

d. Street/Sidewalk Cleaning: � Performed by BID � Contracted out � Not Performed

by BID (skip to next)
Miles of sidewalk cleaned during FY:__________

e. Tree Planting: � Performed by BID � Contracted out � Not Performed by BID (skip to
next)

Annual # of trees planted ________________

f. Tree Trimming: � Performed by BID � Contracted out � Not Performed by BID (skip
to 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 � Not

Performed by BID (skip to next)

Please describe these programs/initiatives: ________________________________

k. Marketing: � Performed by BID � Contracted out � Not Performed by BID (skip to

next)

k1. Advertising: � Performed by BID � Contracted out � Not Performed by BID (skip
to 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

 LA BID Consortium
BID Survey

K4. 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 does
have such programs (skip to next)

Tons of materials recycled during FY: __________________

Please describe these programs: _______________________________

m. Homeless Outreach programs: � Performed by BID � Contracted out � Not

Performed 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 rooms
in Los Angeles, historic venue or district, etc.)

_________________________________________________________________________

14. Please provide pictures, charts or other visual aids by e-mail to Laurie Hughes
lhughes@gatewaytola.org . Examples include:

! BID Logo
! Recognizable photos of the BID (scan photos to CD)
! List of Board Members

Note, pictures or materials not in a digital or electronic format can be scanned onto a CD
and mailed to Laurie Hughes, Gateway to L.A., 6151 W. Century Blvd., Ste. 121, Los Angeles, CA
90045.

Thank You Very Much!

The Los Angeles BID Consortium I 24