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The Voice of
Business, Industry & the Professions Since 1942 |
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By Tony Pressley Across North Carolina and throughout the nation, people are returning to urban centers. A desire to cut commuting time; our country's growing numbers of singles, couples without children and empty-nesters; and a rejection of the growing isolation of our computerized, suburban culture have all been cited as reasons why people are choosing to live in diverse, densely populated urban neighborhoods. Whatever the reasons, it's good news for many cities, especially those that are able to reverse the cycle of urban decay before it's too late. One important ingredient needed to facilitate this revitalization has already been recognized by North Carolina's elected officials - with assistance from NCCBI. That is the importance of enabling developers to create new, safe uses for center city land that had previous industrial use. The Brownfields Reuse Act of 1997 went a long way to help encourage the redevelopment of “brownfields,” industrial or commercial properties that have environmental problems, but have development potential if the proposed use will not pose a risk to public health or the environment. Over time, this legislation will help bring new investment for North Carolina's center cities. It will attract new employment opportunities and new housing, enhance tax bases for municipalities, lead to new initiatives to reduce crime and more. But to really fulfill the potential for these neighborhoods, our state needs to go an extra step. We need to establish complementary programs that will encourage urban redevelopment and rebuild our center cities. For this reason, I encourage all members of NCCBI to support the expansion of special tax districts (also known as Business Improvement Districts or Municipal Service Districts) for business areas outside of the traditional downtown. What is a BID? It is a legal device by which commercial interests within an area can band together, plan business services and/or public improvements considered important to their economic vitality, and share costs through a tax or assessment paid by all. In North Carolina, Municipal Service Districts have been established to meet these goals. N.C.'s Municipal Service Districts are restricted to serve five specific purposes: beach erosion/flood control; downtown revitalization projects; drainage and sewer projects; off-street parking facilities; and watershed improvements. BIDs can benefit relatively small, urban commercial areas. For example, New York City has BIDs in four of its five boroughs (all except Staten Island). BIDs may be run by a municipal authority or a nonprofit corporation. They may be responsible for a range of activities, including keeping sidewalks clean, providing supplementary security personnel who serve as ambassadors for the neighborhood, landscaping, sponsoring special events, promoting area amenities and undertaking other projects that make the streetscape more attractive and inviting. BIDs focus on quality of life issues that make a city a better place to live, work and visit. Extending the Municipal Service District designation for business revitalization projects beyond a city's downtown and into the first-generation business corridors would provide tremendous opportunities for those commercial areas to chart their own destinies. Just like downtown businesses, businesses and property owners in these neighboring communities could agree to tax themselves to support their own programs of work for the benefit of their neighborhood. This is a sensible approach to addressing the needs of these business areas - democratically allowing those who will be affected by the tax to agree to tax themselves. The tax is levied equally upon all who benefit from the initiatives in the business area. The financial burden is typically small on individual property owners, but collectively can have a significant impact on the future health of the business area. As with the current legislation, the expanded Municipal Service District legislation can be quite specific about what communities will qualify and what are appropriate uses for the funds collected. And, property owners in a neighborhood must convince their local elected officials that the majority of property owners support this establishment of a Municipal Service District before one will be established in their neighborhood. As the founder and a past president of the South End Development Corp. in Charlotte, I have real life experience with the needs of an aging, center city business area. This experience has made me a believer in special tax districts. I am quite proud of the volunteers and financial contributors in our community who had the pioneering spirit to help rebuild South End. However, the rewards of redevelopment that will be shared by all should be financially supported by all. The burden on a few individuals is too great. I recognize how much more we could have achieved in South End to date if the energy of our volunteers had not been drained with an endless cycle of fund raisers and funding appeals. Having worked with most of the seven other urban business corridors in Charlotte, and seen the challenges facing other corridors in the state that wish to rebuild themselves, I view the Municipal Service District concept as a vital tool that can take volunteerism and grassroots efforts to a higher level. I urge you to support the expansion of Municipal Service Districts with the N.C. legislature. Anthony T. (Tony) Pressley is president and COO of MECA Real Estate Services LLC, a diversified, full-service commercial real estate development, brokerage and property management firm located in Charlotte. |
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