BID Testifies at City Council Hearing

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Richard H. Bradley, executive director of the DowntownDC Business Improvement District (DowntownDC BID), along with leaders from the city’s seven other BIDs and Main Street organizations, testified on Thursday, July 12, before the DC City Council’s Committee on Small and Local Business Development about overall BID accomplishments and contributions to the city. The Committee, chaired by Councilmember Vincent B. Orange, held a Public Oversight Roundtable on The Current Status of Main Street Organizations and Business Improvement Districts.

During his testimony, Bradley reported the DowntownDC BID area provides the city a net fiscal benefit that exceeds $560 million annually—an important funding source for city operations because of the local taxes and other revenues that are generated by Downtown businesses.

Bradley said that since its founding in 1997, the DowntownDC BID, through targeted investments that encourage economic growth and diligent attention to an aggressive clean and safe street agenda, has helped to transform Downtown and its image—at the same time adding to the city’s continuous job and fiscal growth.

“It would be presumptuous for us to argue that the DowntownDC BID was responsible for all of this,” he said, “but it is clear that without the BID, it is doubtful that other public and private investments would have been made in Downtown.”

Bradley told the Committee that forming partnerships is vital to the BID’s success and Downtown’s revitalization. Thus, the BID works to build strong public-private partnerships and supports major public planning efforts which lead to major projects being launched. Over the past 15 years, the BID has assisted with planning for several key projects and programs that have reaped fiscal and economic benefits for the city.

Among them, including projects now underway, are the CityCenterDC mixed-use project; the Marriott Marquis Convention Center Headquarters Hotel; the DC Circulator; DC Streetcar system; and a variety of new cultural institutions such as the Shakespeare Theatre (450 7th Street) and Woolly Mammoth Theatre Company (641 D Street).

Noting highlights from the BID’s 2011 Annual Report and State of Downtown report, Bradley shared the following cumulative effects that these partnerships, and investments, have had on Downtown DC over the years:

  • New development totaling $10.9 billion
  • A total of 63,000 new jobs, across all income brackets
  • Average Class A office rents increasing from $240 per square foot (SF) to $653 per SF
  • An increase in residential units, from 4,500 to 8,500
  • Hotel room rates climbing from $142 per night to $222
  • More than 9.5 million visitors to cultural and entertainment events
  • The number of restaurant growing from 78 to 144

In addition to a $10 million annual budget that provides premier business services to enhance the public environment and improve the economy, the BID also promotes business development and markets the area to new investors. Funded through a special district where property owners tax themselves to improve the BID area and promote and retain businesses, the BID employs about 130 employees; approximately 70% of whom are DC residents. The organization purchases about 70% of its goods and services from DC-based businesses to support the local workforce and businesses.

Seven other organizations constituting the city’s existing BIDs are Adams Morgan, Capitol Hill, Capitol Riverfront, Georgetown, Golden Triangle, NoMa and the Mount Vernon Triangle Community Improvement District. The DowntownDC BID is the oldest, and today remains the largest, BID in the city.