A Government for Our Time? Business Improvement Districts and Urban Governance

The emergence and rapid spread of business improvement districts ("BIDs") is one ofthe most important recent devehpments in American cities. BIDs have been controversial, with both supporters and proponents viewing the districts as part of a trend toward the privatization ofthe public sector. By examining the legal and political structures that determine BID formation, functions, finances and governance, this Article determines that BIDs are not private entities but are, instead, a distinctive hybrid of public and private elements. Moreover, although the particular fusion of public and private institutions, values and concerns embodied in the BID is unique, Professor Briffault demonstrates that an interplay of public and pri? vate themes is a longstanding tradition in American local government law. BIDs depart from the norm of democratic governance and they raise ques? tions concerning equity in the delivery of hcal services. BIDs, however, are ultimately subject to municipal control and they provide a mechanism for providing the public services and investment that financially strapped cities need ifthey are to survive. With appropriate municipal oversight and limits, BIDs, and the experimentation in combining public and private roles that BIDs represent, can make a significant contribution to the quality of urban public life. Introduction: The Emergence of BIDs. 366 I. The Basics of BIDs. 377 A. The Law and Politics of BID Formation. 377 1. BID Enabling Legislation. 377 2. BID Formation in Practice. 381 3. Termination. 387 B. Finances. 389 C. Functions. 394