State And Local Issues

Business Improvment Districts Help Revive Downtowns

More than 1,200 cities nationwide have launched downtown revitalization programs, with the costs underwritten by local businesses. So far, 48 states have passed laws allowing formation of so-called improvement districts.

  • New Orleans formed the first such district in 1975 and Washington, D.C., became the latest to do so just yesterday.

  • The objective is to assure the public that downtown areas are as safe, clean and easy to negotiate as suburban shopping malls -- while uniformed men and women, often aided by walkie-talkies, welcome shoppers, steer lost tourists, erase graffiti, find shelters for the homeless and report crimes to the police.

  • Supporters say the concept has lowered crime rates, while increasing property values and occupancy rates in stores, hotels and office buildings.

  • Some 40 different improvement districts are scattered about New York City alone.

In Washington, 800 property owners in a 120-block area of downtown formed an organization and assessed themselves a monthly fee of a penny per square-foot to pay for services the city can't or won't provide. The assessment is in addition to property taxes and brings in about $6 million a year.

Source: Maria Puente, "Public-Private Teaming Is Revitalizing Downtowns," USA Today, November 18, 1997.

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