The City Council on Tuesday night barely approved a downtown Business Improvement District (BID) on first reading.
Several council members said they needed to first hear from the public and that had not yet happened. There was discussion about possibly tabling the vote.
There was not a second to table, and the council then could not muster the five votes needed for approval on first reading.
Stacy Richardson, the mayor's chief of staff, said under the state BID law that the council needed to first vote its approval. She said the time for the public hearing under the law was just prior to the second reading. She noted that is different than the council's normal procedure, but said it was state law.
She said if the council did not vote approval on first reading that it could not on the second after the public hearing. She said an initial denial would in effect kill the BID.
Councilwoman Demetrus Coonrod then changed her vote to make it a majority of five in favor.
Those in favor at the last vote were Chairman Erskine Oglesby and council members Coonrod, Jerry Mitchell, Anthony Byrd and Chip Henderson.
Councilwoman Carol Berz abstained. She said she is very much in favor of BIDs, but some issues about this BID needed to be clarified.
Opposed were council members Ken Smith, Russell Gilbert and Darrin Ledford.
A public hearing is set for the next council meeting next Tuesday, and a final vote is expected at the same meeting.
Councilman Mitchell said a large majority of the property owners in the downtown district were in favor.
Councilman Henderson said he wanted a provision that the city could not be required to be part of the BID as it is now situated. He said he also needed to see "overwhelming support" from the public for the BID before voting in favor.
City Attorney Phil Noblett said adding provisions could possibly delay the approval of the BID and require additional votes.
Under a BID, if a majority of property owners approve, then all property owners in the district are required to pay for special services designed at making the district safer and more attractive.
Earlier on Tuesday, Kim White of River City told the council that a BID would assure the area is clean and safe as well as providing beautification projects and other benefits such as promoting special and seasonal events.
She compared the BID to a Homeowner’s Association that would work in the businesses own interests and that it would be considered a partner with the downtown area. The program would be funded with a fee formula determined by roadway frontage and lot or building size. Condominiums would be charged a flat rate. Rates would be based on how the services in the CBID would benefit the entity.
There would be a “hardship clause” and non-profits and Pilot programs that request not paying the fee would have to come before the city council to receive written approval. Property owners have indicated that they are willing to put money into this, said Ms. White.
She said the City Council would have to approve the fee charged which is proposed as being a maximum of five percent. This fee would be billed and collected by the Hamilton County Trustee for a charge of two percent. The program as currently proposed would be managed by a board of 9-15 people who have been very engaged in the program from the beginning, people who have applied, a resident, someone that represents those who have reservations about the plan and a member from the city council. They would come from both small and large commercial entities. The makeup is intended to be representative of the property owners in the area. This board would report to the council every year.
Consultants have recommended implementing the plan for a 10-year period, said Ms. White with adjustments made after five years.
Council member Smith suggested reducing the five year “look-back” so changes, if needed, could be made sooner. The board would have the authority to establish a budget, determine the services that are provided and have limited power to regulate street and landscaping improvements.
It would be required to comply with all city ordinances, said City Attorney Noblett.
Of 195 non-government buildings / businesses in the area, Ms. White said that 118, or 65.5 percent, have completed a survey and were in support of the program and were willing to pay the fees even with the possibility of Hamilton County taxes being increased.
A concern from Councilman Smith was that the cost of the fee would be passed on to the tenants of the property. Ms. White said there was no promise that would not happen and she does not know if tenants would be “on board,” but she hoped that property owners have talked to the tenants about benefits of having the district.
The Convention and Visitor Bureau is supportive of the plan but will not participate in funding it, said Ms. White.
Ms. White said that this is common practice in other major cities and the renewal rates average 95 percent in the other locations that have been studied. She said she is confident that a BID would increase more retail downtown because that has happened in other places.
Councilman Oglesby said, “This shows how many residents and business owners are willing to do what they can to make downtown a better place.”