Are they Innovative or un-American?
Self-assessed fees would enhance safety, cleanliness of district
It’s clear that our city’s budget dollars are stretched and are in ever growing demand. Understanding those facts, many needs remain unmet and are part of the reason a business improvement district (BID) is warranted.
I was a vocal opponent of this concept and was vehemently against imposing an additional fee on downtown property owners for services that I felt the city should provide. But after listening, arguing, investigating and really digging into it, I am now one of the many top supporters who own property and work in the proposed BID area.
My support may surprise many who know me as a conservative businessperson and staunch advocate for private property rights. But the use of a self-assessed fee to meet the prioritized needs of those who pay into it is a very conservative approach to pay for services that benefit you, not a redistribution of earnings from one area of town to benefit
another. Further, the BID process has been grassroots-driven with overwhelming representation of those who live and work in the designated area who understand their property downtown can be improved with their own investment.
In various locales throughout Hamilton County, neighborhoods and subdivisions have neighborhood associations and homeowner’s associations. These organizations exist for the purpose of improving a specific area through safety, a greater sense of community, standards and vigilance. These common organizations are made up of people who care about their neighborhoods and identify projects to best serve the area that will increase property values and benefit the livability of the area. Dues and fees are understood to be an investment. A business improvement district serves an identical purpose and function.
Instead of a productive discussion of the merits of a self-assessment to enhance property supported by property owners that possess 82% of the assessed value of the property within this area, the pitchforks and torches have come out led by some who will never be impacted by this BID outside the benefit to our community at large.
There are three options that could be proposed to fulfill the needs that exist in some of the most visible areas of our community. One would be to do nothing. A second would be to mobilize for a tax increase of all property owners throughout Chattanooga; it’s too soon after the huge increase from 2017-2018. The third is to self-impose a fee on those served by the enhanced safety and cleaning along with improved maintenance of infrastructure, all of which makes the neighborhood better.
It’s frustrating that not only do essential services go unmet but also that there’s opposition to this “neighborhood association” to collect fees and pay for those prioritized projects identified by those who pay the dues. Downtown is the chief economic engine of our community and should be the best that it can be.
In the U.S. and Canada, there are more than 1,000 designated business improvement districts with Chattanooga recognized as one of the largest cities in America and the only major city in Tennessee without a business investment district.
Our business represents about 750,000 square feet of leasable space and more than 100 companies who are current business owners in this BID. I have spoken with many of these business owners, and they have expressed their support of this BID. The argument that tenants would have no voice in this process is flawed and erroneous. These business owners are our business partners. We want to know what’s important to them and a majority of these folks are supportive of the BID. Furthermore, leases are contracts negotiated by landlords and tenants that do not permit arbitrary changes and edits. Rent and lease agreements are determined by what a market will bear, by what the parties agree to, and not occasional whims of the moment. Tenants have voices that are heard in every negotiation window with a property owner. We will all benefit from the creation of a BID.
Unfortunately, the issue of race has been injected into this voluntary improvement effort. There is nothing about this effort that excludes anyone. Everyone will benefit from a cleaner, safer and more beautiful downtown. This process has been conducted as governed by state statute with just under 30 stakeholder meetings and direct contact with almost 90% of the current property owners. The attempt to paint this as some random process that has been conjured up behind closed doors is not only untrue, it’s pitifully deceptive.
Property owners care about their investment and are willing to invest more. We need our elected leaders and community to embrace this business improvement district and allow it to make additional improvements that will benefit the entire community.
Steve Hunt is the managing partner at Berry & Hunt.