What is a Community Benefit District?

Hi everyone,

The Express-Times featured a story on the possibility of a Community Benefit District coming to Bethlehem and Easton. Perfect timing, then, to explain what exactly a CBD is.

A Community Benefit District (also known as a Business Improvement District, or BID) is basically a funding mechanism that allows for revitalization programs to support themselves. The CBD is governed by a board (made up of local business and property owners, not the government) that would collect funding based on a fee that would be assessed to all properties (excluding non-profits) within the district. The board would then use the money to hire staff and manage programs. Of course, the funding could be enhanced by government, business and non-profit contributions. The fee is mandatory - after a certain percentage of property owners within the district agreed to started the CBD, all properties would have to pay the fee (the amount varies). CBDs have been used across Pennsylvania - they are a great way of revitalizing downtowns, particularly after state-funding for a Main or Elm Street program has ended. Of course, since they involve assessing another fee. In the long-run, the benefits to the district (enhanced business, reduced crime, better physical appearance, higher property values, etc) are supposed to outweigh the assessment of the fee itself. However, the assessment of the fee (often seen by property owners as another tax) can be highly controversial. The process of determining how to spread the costs and the amount of the fee is determined by the community.

Really, at the end of the day, community engagement and input is the only way that any bid district will succeed. The community has to be committed to paying the fee, managing the board and determining the priorities and goals of the CBD - otherwise, it is doomed to failure.

Happy Holidays to all!