One restructuring option presented by P.U.M.A. is to switch from an SBD to a CID, or Community Improvement District. Created in the 1990´s, it was designed as an improvement over the decades old Special Business District model. Most downtowns in Missouri, including Springfield, Lee´s Summit and St. Louis, have already shifted from an SBD to a CID.
What is a Community Improvement District?
What services can a Community Improvement District provide?
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What is a Community Improvement District?
A Community Improvement District is essentially a "super-sized" Special Business District (SBD) with more powers and an ability to pull in additional types of revenues, such as sales taxes or user fees. This added revenue (along with added powers) allows the district to better meet the needs of their members. Downtown CIDs throughout the state typically use their additional revenues for increased maintenance, safety patrols, marketing and other pressing needs. This increase in services directly benefits businesses, property owners, residents and customers.
Many downtowns in Missouri, including Springfield, Lee´s Summit and St. Louis, have already made the shift.
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What services can a Community Improvement District provide?
Specific programs and services are determined by members and limited by the total revenues of the district . Our recent member surveys showed that most members are interested in business recruitment, increased cleanliness, more beautification projects, more marketing, public safety programs and increased advocacy. Although the options for new programs and services are virtually endless, it´s important to remember that any new programs and services must be funded through an increase in revenue.
CIDs in Missouri and across the nation provide services such as:
Cleaning and Maintenance
Many downtowns have teams of uniformed
workers, providing up to 12 hours
of services every day. Duties
throughout the year vary, with
sidewalk snow removal during
the winter, and sweeping during
warmer weather. Additionally,
some maintenance teams also
handle graffiti removal.
Public Safety Programs
Due to high costs, most CIDs
do not hire their own armed
security force. Instead, they look to other ways to increase public safety. One option is security cameras placed in key areas to deter crime and vandalism. The cameras are monitored by the police but the CID helps fund the equipment. (By the way, the SBD is partnering with the City this year on a pilot project of eight security cameras to see if this is a good option for us.)
Another option is a team of trained community
service representatives,
"ambassadors," who provide
public safety, hospitality and
outreach every day.
Problems are quickly reported to
the responsible city department,
ensuring that downtown is a
comfortable place where crime
and vandalism are low.
Marketing
SBD has no marketing budget. All District
advertising and
promotions are done by
the CCA with a yearly budget of
$17,000——not nearly enough to fund necessary events,
promotions and advertising. A CID
can handle the marketing
of The District to customers,
tourists, new businesses,
developers, residents and more.
This includes maintaining a strong
brand identity, planning public
outreach activities, coordinating
and managing special events,
disseminating a wide range of
publications, and maintaining
cooperative relationships with
partner organizations. A CID
can also fund marketing
studies or track changes in
consumer perceptions about
the downtown area to aid in
economic development programs.
Capital Improvements and
Beautification
With combined SBD and City funding, new sidewalk amenities,
street lights, banners and
wayfinding signs have all
been installed in recent years.
However, funding for attractive
pedestrian corridors connecting
new development areas will become
more important as we move forward.
A CID can fund these and other
necessary improvements.
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A CID is essentially a contract between the district and its members. The plan is created through a petition signed by property owners with at least 50 percent of the assessed value of the real property, and more than 50 percent per capita of all owners of real property within the proposed CID. Although the law does not require businesses to sign the petition, they will still be an important part of the planning process. After a series of public hearings, the plan is voted on by the Columbia City Council.
The CID plan includes:
- Purpose of the district.
- Programs and services to be provided.
- Estimated costs of programs and services.
- A budget, including proposed revenue sources.
The actual funding mechanisms—sales taxes, property taxes, business license fees or other user fees—must be approved by the residents of the proposed district in an official election, requiring a 50–percent plus– one majority to pass. As you can see, this is a long process with many opportunities for input.
If the CID passes, the current SBD will cease to exist. All current assessments collected through the SBD will transfer to the CID—there would be no duplicate taxing.
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Increasing programs and services in The District— such as clean and safe programs, beautification projects, and business recruitment programs— helps everyone whether they´re property owners, business owners, employees, residents or customers. It´s important that one group isn´t bearing the entire funding burden.
The SBD is currently funded by business license fees and property taxes. Businesses pay 50 percent over and above the normal license fee—averaging about $60 per year. Property owners currently pay 47.78 cents per $100 of assessed valuation—averaging about $446 per year per property. Other than that, an SBD´s ability to generate revenue is limited.
In contrast, a CID has more revenue options. A CID can establish special assessments—essentially user fees—to help fund particular programs and services. For instance, Westport in Kansas City has a special assessment levied on bars and other entertainment venues. The funds are then used for public safety programs, weekend crowd control and cleaning services. The result is a better customer experience and thus increased business for the bars themselves.
A CID can also assess a sales tax to help fund additional services and programs. A sales tax would mean everyone enjoying The District would see a benefit for a very small investment. A half-cent increase, for instance, would add an additional 40 cents onto the price of an $80 dress and a family of four could enjoy pizza and sodas for only 15 cents more.
Most other major retail centers in Columbia already charge an extra half-cent sales tax. These include:
- 1. Columbia Mall
- 2. Shoppes at Stadium (Old Navy, Linen´s & Things, David´s Bridal, Macy´s and surrounding businesses)
- 3. Broadway-Fairview (Wal-Mart and surrounding businesses)
- 4. Grindstone Plaza (Wal-Mart and surrounding businesses)
- 5. CenterState (Bass Pro, Furniture Row and surrounding businesses)
- 6. Conley Road (Broadway Marketplace, including Wal-Mart, Lowe´s, Sam´s Club and surrounding businesses)
- 7. Stadium Corridor (Best Buy, Circuit City, Hobby Lobby and surrounding businesses)
- 8. Lake of the Woods (Ashley Furniture and Mid-America Harley Davidson and surrounding businesses)
- 9. Northwoods (Businesses at Range Line Street and Smiley Lane)
Because of the sheer number of businesses in Columbia who are already charging extra sales tax, a CID could raise the sales tax and still maintain parity with other shopping and dining areas in Columbia. The District would remain competitive in terms of prices but we would be better able to compete with other shopping and dining areas because of additional services and programs funded by a CID.
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CID proposal garners 63% of the vote. Thank you so much for your support!
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What will a nickle get me? Learn what types of programs and services we're proposing.
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Sample Ballot. What will the ballot I receive in the mail say?
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CID Map. If only residents can vote, how do I know if I'm in the CID?
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Q & A. Frequently asked questions.
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Coummunity Improvement District Management Plan. Read more about the new downtown CID.
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Downtown sales tax moves toward fall vote. District's residents would receive ballot.
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Downtown group begins planning for tax. "It gives us the opportunity to provide the level of service downtown deserves."
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