SAMPLEDISTRICTPLANFORTHE
NYCBUSINESSIMPROVEMENTDISTRICTINTHECITYOFNEWYORKBOROUGHOFMANHATTAN
PREPAREDPURSUANTTOSECTION25-405(a)OFCHAPTER 4 OFTITLE25OFTHEADMININISTRATIVECODEOFTHECITYOFNEWYORK
Last Updated:11/7/2016
TABLE OF CONTENTS
I. / MAP OF THE DISTRICT / 3II. / DISTRICT PROFILE: PRESENT USES OF THE DISTRICT / 3
III. / PROPOSEDSERVICES / 5
IV. / PROPOSEDIMPROVEMENTS / 8
V. / PROPOSEDSOURCES OFFUNDING / 9
VI. / PROPOSEDEXPENDITURES: ANNUAL BUDGET / 12
VII. / BENEFITED PROPERTIES / 14
VIII. / DISTRICT MANAGEMENT ASSOCIATION / 14
IX. / USERRIGHTS / 15
X. / REGULATIONS / 16
I.MAP OF THE DISTRICT
The NYC BusinessImprovement District (the "District") islocated inDowntown inthe southernsection of Manhattan.TheDistrict will generally include propertieson A Street from B Street to C Avenueincludingcorner propertieson D, E andF Streets;and will includeproperties onthesouthside ofDandthe sidewalk on the northside of D fromE Street to F Street;and will include properties onthenorth sideof A Street from B Streetto midblock between G Street and H Place.
The Mayor ofthe City of New York, by writtenauthorization datedSeptember 1,2003has providedforthe preparation ofthis plan (the "Plan") pursuant to authority granted by Chapter4 of Title 25 of theAdministrative Code of the City of New York(the "Law").
II.DISTRICT PROFILE: PRESENT USES OF DISTRICTPROPERTY
A.DISTRICT PROFILE
The District islocatedin the Downtownsectionof Manhattan.It isgenerally comprised of threemajorcommercialstrips: A Street from B Street onthe north to C Avenue on the south; D Street from EStreet to F Avenue; and G Street from H Street to I Avenue.
Downtown isNew York City’s third largest commercial district, withXX million square feet of officespace. Itishometomajorcorporate tenants suchasA,BandC;and numerousacademicinstitutions and cultural venues. Thereare currently XX,000people working downtown; XX,000 students attending the universities; and over XXX,000 people visiting Downtown on a daily basis.Portions of Downtown arecurrently served by three BIDs: K Street BID, J Avenue BID and HRoad BID.
Historically, Downtownwas the borough’s premiercommercial, retail, civicandentertainmentcenter, comprised ofofficebuildings, theCivic Centeranda department store/entertainment corridor.However, cycles of repeated lossofmajor anchors and owner disinvestment yieldedby the1970s adecaying regional commercial centerripe for revitalization –at which timethe plan for creating anewCivicCenterwas conceived and development begun.Overtheyears,thefull Civic Centerbuildout, inconjunction withadditionalnew development and rehabilitation/reuse coupled with somecapital
improvements, have brought Downtown a long way forwardfrom what it was in 1975 – although not as faras it has thepotential to become.
The NYC BID, which fills the gaps in BID coverage left by the other Downtown BIDs, containsapproximately XXX properties, that area variegatedmix of old, rehabilitated and newconstruction;historicand modern architecture; tenements, loft/warehouses and office/residential towers;and parking lots/garages and vacant development sites. Uses arealsowide-ranging: ground-floor retailand parking, above-street-level commercial and office, government offices and publicsector tenants,residential uses generally abovethe ground floor, with ascatteringof religious, educational and culturalusesthroughout.New development isyieldinga true mixofuses,with residential and retail spacecurrently in construction, and academic,culturalandcommercial use in the planningphase.
TheDistrict is locatedwithin Community Board X; the XthPolice District, and Sanitation DistrictX.
B.PRESENT USES OF DISTRICT PROPERTY
1.ZONING
The District containsprimarily commercial zoning(C5-2A, C5-4, C6-1, C6-2A, C6-4) mid- to high-density commercial districts allowing a range of office, retail, residential and community facility uses; withlimited residential zoning (R6-A,R6-B and R7-A.)TheDistrict is alsoaffected by theSpecial DowntownDistrict, adopted in20XX, which includes urban design guidelines that requirestreetwallandretailcontinuity, streettree plantings and restrictionson new curbcut locations along important pedestriancorridors, includingJAvenue,KAvenueandD Street.
2.COMMERCIAL/RETAIL
Of the District’sXXX properties,most are presently partially orwholly commercial with ground-floor retail use. Currently, the retail vacancy rate in the district islessthan X%.
There are approximately XX national and regional retail chainsstore concentrated inthe District,including Barnes Noble, Sleepy’s, Dunkin’Donuts/Taco Bell/Nathan’s, McDonald’s, New York SportsClub,RadioShack, Duane Reade, True Value Hardware, American Apparel, HR Block, and JacksonHewitt Tax Services, among others.Several bankseither own/operate or havebranches inthe Districtincluding Chase, Washington Mutual and CommerceBank
Until recently, both B and C Streets havenot been thefocus ofnewor re-development activity,themajority of theretail businesses along thesecorridors are one-of-a-kind ownership in smaller andoldercommercial spaces, including many nail salons, food stores and takeout/delis.Asnewdevelopments with mandated ground-floor retail come online overthe next decade, the district’s retail isexpected to become more diverse, attracting shoppers froma broader socioeconomicstratum.
The District isservicedbyone public indoor parking facility,one free-standing parking garageand3 outdoor lots.
3.RESIDENTIAL
There are X properties which are wholly residential inthe District, out of approximately XXXproperties.Another XX propertieshavesome residential use, mixed in with retailand/or commercial use.
4.NOT-FOR-PROFIT, INSTITUTIONS AND PUBLIC
Withinthe NYC BID boundariescan befoundthe newly-restored Civic Center, the historicMunicipal Building, Law School, the YMCA, and offices of variousNew York City and New YorkStategovernmentalagencies.
5.TRANSPORTATION
The District is extremely well served by a comprehensive publictransportation network: thefollowing subway lineshave oneor more stops withinorimmediately adjacent to the District: A, B, C, N, Qand R.In addition, the following bus lines which connect Downtown with the rest of the City have stopsand/orstart/end points within the District: MXX, MXX, MXX and the MXX
III.PROPOSEDSERVICES
A.DESCRIPTION OF SERVICES
The servicesto be provided pursuant to thisPlan(the“Services”)shall include any servicesrequired forthe enjoyment, protection, and generalwelfare of the public, the promotion, and enhancementof the District, and to meet needs identified by members ofthe District. The Servicesshall not take the place of, but supplement thoseservicesprovided by the City on a citywide basis.TheServicesshall be performed under the direction oftheNYC District ManagementAssociation (hereinafter,“DMA”).
1.STREET MAINTENANCE
The Maintenance Programmaybe carried out in-house or it may be contracted out. The Programmay include, but shall not be limited to: manualsweeping and cleaning of sidewalks, curbs and gutters,emptying of pedestrian trash receptacles by replacement of trash receptacle liners and preparing garbagefor pickup bythe City; cleaning of graffiti from street furniture including security gates, maintenance ofstreet trees and treepits; and snow removal atbusshelters andcrosswalks. Special attention willbepaidto problems of over-flowingtrash receptacles, trash bags awaiting pickup being ripped open, andsanitation problems inthehours beforeshops open–all negatively impacting avibrant shopping area.
Posters and stickers will be removed; catch basins will receivespecial attention. Close coordination willbemaintainedwiththe NewYorkCitySanitation Department, the local Community Board, andwith private carters.
It is anticipated that uniformed maintenance personnel willworkseven daysaweekwith7-8persons per shift. The Program will include such equipment, supplies, insurance and uniforms as arerequired to deliver the services. The Program mayinclude such other maintenanceservices asarerequired fromtimetotimeto achieve a clean environment. The Program willcomplement but will notreplaceCity Sanitation services.
2.MARKETING, PROMOTION AND HOLIDAY LIGHTING
A Marketing and Promotion Program for the District, including jointadvertising, special events,festivals and publications(such asbusiness directories, maps, etc.) may be carried out. The purpose ofthe Program isto increasebusiness activityfor allretailersand businesses within the District.
Holiday and seasonal decorations may include,but will not be limited to, the installation ofornaments and/or lighting in the Districtduring holidays andthe winter holiday season.
3.SECURITY
The Security Program mayinclude, but shallnot be limited to, unarmed patrol of the District,creation ofa Neighborhood Watch and/or safety education programs.Alicensedand bonded securitycompany would work inconjunction withthelocal Police Precinct toprovide servicesduring weekendsand holiday periods.Itis anticipated that securityserviceswillbeundertaken on apart-timebasis,primarily during the holiday shopping period and forspecial events, in the first year of operation.
4.ECONOMIC DEVELOPMENT NEW INITIATIVES
Economic development activities and new program initiatives may include, but shall not be limitedto,operatingbusiness attraction and retention programs, operatinga storefront improvement program,creating heritage tourism links, and hiring a development consultant to identify andsecureadditionalfinancial resources for theDMA program initiatives.
5.ADMINISTRATION
Administration of the District shall be bya salariedstaff (the“Staff”)whichmay include anExecutive Director,Community Liaison, clericaland bookkeeper support, other special staffand/orconsultants thattheBoardof Directors may, from time to time, deemnecessary. TheExecutive DirectorwilloverseeDistrict Services and Improvements (hereinafter defined) asdirected by the DMA Board ofDirectors for the benefit ofthe Districtconstituency.The Executive Director will serve asspokespersonfortheBID owners and tenantscollectively and individually, as authorized by the BID’s Board ofDirectors andwith permission ofthe individual owneror tenant.Administrative expenses alsomayinclude officerental, utility services, equipment, supplies and insurance, mailingsto owners andtenants,and newsletters. Legal and accountingserviceswillbe contractedonan as-needed basis. Whenpossible, in-kind services will be used.
6.ADDITIONAL SERVICES
Subject to any approvals and controlsthat maybe required bya City agency having jurisdictionthereof, and in addition to the approval of the Board ofDirectors of the DMA, in subsequent years theDistrict may provide such additional servicesas are permitted by law.
B.IMPLEMENTATION
It is anticipated that the DMA will commence mostServices during the first Contract Year(hereinafter defined).
C.GENERAL PROVISIONS
1.AllServices shall be inaddition to (andnot in substitution for)required and customarymunicipal services provided by the Cityon a citywide basis. Benchmarks for existing City serviceswill bedeveloped and monitored by the DMA.
2.All Services need not be performed in every Contract Year.
3.The staffand/orsubcontractors of theDMAmay render such administrative servicesasare needed to support performance of theServices.
4.Inthe event that in any given Contract Yearthe sources offunding ashereinafterdescribed do not in the aggregate produce revenues equal to the Total Annual Budget Amount(hereinafter defined) for such Contract Year,theDMAmay,subjecttothe Contract (hereinafter defined),forego providing one ormore or all Servicesin order to have revenuessufficient to pay debt servicerequired intheBudget (hereinafter defined) fortheContract Year.
IV.PROPOSED IMPROVEMENTS
A.IMPROVEMENTS
The improvements (the “Improvements”) to be provided pursuantto this Plan mayinclude, but are not limitedto, the following, provided that any Improvements thatrequire reviewandapproval by an appropriateCity Agency shall be submitted to thatCity Agency and to the affectedcommunity board(s) prior to undertakingany Improvement.
1.Sidewalk amenities to identify,enhance and beautify theDistrictincluding thefollowing proposals but not limited to:
a.Sidewalk plantings, tree, shrubs and flowers in tubs, atgradeorabove groundlevel (i.e., on light standards)
b.Sidewalk logos, banners, medallionsand/or plaquesidentifying the area of theDistrict astheNYCBusinessImprovement District (hereinafter“BID”).
2.Streetand sidewalk amenities to improve pedestrian circulation andsafety, which may include, but not limited to:
a.Trash receptacles
b.Light poles
c.Street telephones
d.Signage
e.Key building identification
f.Banners and/or medallions
g.Gateways
h.Benches and/or street furniture
i.Parking facilities
j.Information boardsand kiosks
k.New news boxes and newsstands
l.Street, subway and other transportation modes identification
m.Intersectionrepair
B.IMPLEMENTATION SCHEDULE
TheImprovementsmay be implemented onan as-needed basis.
C.GENERAL PROVISIONS
1.All Improvementsshall be in addition to and not in substitution for required andcustomary municipal improvements provided bytheCityonacitywide basis, benchmarks for which arepresently being studied and recorded.
2.Thestaffand/or subcontractors oftheDMA may render such administrative servicesas are needed to support installation of the Improvements.
V. PROPOSED SOURCES OF FUNDING
A.SOURCES OF FUNDING GENERAL
The proposed sources of funding forall(i) Services, (ii) Improvements, (iii) proceedsarising from indebtedness as permittedpursuant toparagraph D herein below, and(iv) administrativecosts necessary to supportthe programcontemplatedunder this Plan shall be the sources of fundingdescribed inparagraphs BthroughF(inclusive). Subject to requirements of the law, the DMAmay applyall moniesderived fromthesources of funding permitted herein to fund any expenditure permitted underthisPlan.
B.SOURCES OF FUNDING: ASSESSMENTS
The DMA may enter into a Contract for thepurpose ofhavingthe City levyand collectandthen disburse totheDMA, assessments withrespect to the Benefited Properties. Such assessments,as describedherein below,shallbe defined as“Assessments” (hereinafter defined).
1.GENERAL
To defray thecost of Servicesand Improvements in the District as herein beforedescribed allreal property inthe Districtshall beassessed in proportion to the benefit such propertyreceives fromthe Servicesand Improvements. Eachproperty shallbe assessedanamount,that whentotaled together with amounts for other properties inthe Districtshall yieldan amount sufficient tomeetthe District’sannual budget as determined bythe DMA.
The amounts,exclusiveofdebtservice,assessed and levied in a given year against thebenefited properties as Assessments,maynot exceed 20% of the total general city taxes levied in thatyear against the benefited properties.
2.SPECIFIC FORMULA
All propertiesas classified in themost recent New York City tax rolls and asdescribedbelow asClasses A,B,CandDshall be assessed as follows:
CLASS A PROPERTY – COMMERCIAL
All propertiesin whole orinpartdevotedtocommercial usesincluding vacant land shallconstitute Class A property and shall beassessed atarate anticipated tobenotmorethan$23 per individual property linear frontfoot(FF)plus not morethan$.0024per dollarof individual property assessed valuation(AV)forthefirst Contract Year. Class A propertyshallbe assessedinthe following manner:
Rate 1=50%the BUDGETTOTAL CLASS A LINEARFF
Rate 2=50% of the BUDGET
TOTAL CLASS A ASSESSED VALUATION
Individual Assessment=Rate 1 (Individual Property FF) +Rate 2(Individual Property AV)
When a property has multiple frontageswithinthe District, front footage shall becalculatedas 100% ofthe longest frontage plus 50% of the sum of all otherfrontages.No individual Class A property shall payless than $2,400 or more than $35,000 inthe first year of the BID’s operation.
CLASS B PROPERTY – RESIDENTIAL
All propertiesdevotedinwholeto residential usesshall be assessed atone dollar ($1.00)per year.(They may however, choose tomake voluntary annualcontributions to the NYC Business Improvement District’s operating budget.) Condominiums and
cooperative properties devoted in wholeto residentialusesshall beassessed atonedollar($1.00) per year. Those portions ofCooperative and/orCondominium propertiesdevotedto commercial and/or for-profit usesshall constitute ClassA property andtheportionoftheproperty devoted to commercialand/orfor-profit uses shallbe assessed inthe same manner asClass A properties.
CLASS C PROPERTY – GOVERNMENT NOT-FOR-PROFIT
Governmentand not-for-profit owned property devoted entirely to public ornot-for-profituseshall be exemptfromdistrict assessment.They may, however, choose to makevoluntary annual contributions tothe NYC Business Improvement District’s operatingbudget.Government or not-for-profit owned properties devoted inwhole orin part tocommercial orfor-profit uses shall constitute ClassA property andtheportion devoted to
commercial/for-profit uses shall be assessed inthesame manneras those properties
listed asClass A properties.
CLASS D PROPERTY – MIXED USE
All propertiesdevotedin part to commercial use and inpartto residential or nonprofit useshallconstitute ClassD property. The portion of the property devoted to residential useshall be assessed atone dollar ($1) peryear; the portion of the property devotedtononprofit useshall not be assessed. Theproportion ofthe property devotedtocommercial use shallbe assessed inthesame manner as those properties listed in ClassA properties.
C.SOURCE OF FUNDING: GRANTSAND DONATIONS
TheDMA may accept grants and donations fromprivate institutions, the City, other publicand private entities and individuals, andother not-for-profit organizations.
D.SOURCE OF FUNDING: BORROWING
1.Subject to subparagraphs2 and 3 immediately herein below, the DMA may borrowmoney from private lendinginstitutions, the City, other public and private entitiesor individualsand othernot-for-profit organizations forthe purpose of funding operationsorImprovements.
2.The use of moniesreceived by the DMA fromthe City or from any other publicentity,whether in the form of a grant or asproceeds from aloan, shall besubject to(i)allstatutory requirementsapplicable tothe expenditure and use ofsuch monies,and(ii) any contractual requirements imposed bythe City (whether pursuant to contract orotherwise)orby any other publicentity,as the case may be.
3.Any loans which the DMA may enter into asborrower shall be subject to Section VI of
thisPlan.
E.SOURCEOF FUNDING: CHARGES FORUSERRIGHTS
Subject to theapproval andcontrol of theappropriate City Agency, the DMA may, inaccordancewithSection IX ofthisPlan,imposecharges asconsideration for the sub-granting or sub-licensing ofuserrights (hereinafter defined) assuchcharges and userrights aredescribed inSectionIXof the Plan.
F.SOURCEOF FUNDING: OTHER
The DMA may derive revenues from any other sources of funding not heretoforementioned and which are permitted by law.
G.ASSIGNMENT OF FUNDING
TheDMA may assign revenues fromthesources of funding described in paragraphs B,C, D, E and F of this Section V for the purpose ofsecuring loanswhich theDMAmayenterinpursuant toparagraphD of this Section V, providedsuch assignments are subject tothe requirements ofSectionVIof this Plan.
VI. PROPOSEDEXPENDITURES: ANNUAL BUDGETS
A.TOTAL ANNUAL EXPENDITURES ANDMAXIMUMCOST OF IMPROVEMENTS
Thetotal amount proposedtobe expendedby the DMA for Improvements, if any,Servicesand operationsfor the first Contract Yearis$765,000, asmore fully setforth in Subsection B ofthisSection VI.
The total, asproposed to be expended by theDMA,forany subsequent Contract Yearshall not be greaterthan the aggregateamount of all monieswhichtheDMA may collectfor the Contract
Year in question from all fundingsources permitted underSectionV of this Plan. During the existence ofthis BID, the maximum cost of the Improvements, if any, will not exceed $25,000,000.
B.ANNUAL BUDGET
1.FIRST YEAR BUDGET
Itis estimated thatthe annualized budget of proposed expenditures tobemadeduringthe first Contract Yearshallbe as follows:
a.SERVICES
i. Maintenance/Sanitation / $ 150,000ii. Security / $ 95,000
iii. Marketing, Promotion and Holiday Lighting / $ 60,000
iv. Economic Development/New Initiatives / $ 50,000
v.Landscaping/Maintenance / $ 60,000
vi.Reserve / $ 60,000
b.ADMINISTRATION / $ 200,000
TOTAL FIRST YEAR BUDGET / $ 675,000
C. SUBSEQUENT BUDGETS
The DMAshall establish for eachContract Yearafter the firstContractYear,a proposedbudget of expenditures. Such proposed budget shall (with respect to the Contract Years to which theyrespectively apply): (i) reasonably itemize the purposes for which moniesare proposed to be expendedby the DMA; (ii) specify the amount, if any, proposed tobe expended bytheDMAfordebt service; and
(iii) set forth the total amount to be expended (the “Total Annual Budget Amount”). A proposedbudget,whether for the First Contract Year or fora subsequent Contract Yearshall be referred to as a “Budget.”