Business Improvement District

A BID is a time-limited, flexible funding mechanism to improve and manage a clearly defined commercial area. As a governance mechanism, BIDs are contractual partnerships for urban realm management through which some rights over the management of a locality are transferred from to the local government to ratepayers.

In this regard, BIDs embody an implicit recognition of the club good nature of many urban realm attributes. They do so by transferring some managerial control and responsibilities for those attributes of the locality such as the degree of cleanliness or, safety, place image and so forth, to those with a direct stake in them [source: RICS report]

BIDs have been established around the world, including in New Zealand, Jamaica, Serbia, Albania, Germany, South Africa, and the United Kingdom.There are nearly 1,000 BIDs in the United States. New York City has 66 BIDs, the most of any city.

Legislation is necessary to permit local governments to create BIDs. The process for creating a BID varies from one jurisdiction to another, but generally three steps are involved. First, some number of businesses in the area petition the local government to create the BID. Second, the local government determines that a majority of businesses want the BID. Third, the local government enacts legislation creating the BID. Prior to this occurring, state legislatures need to grant local units the authority to create BIDS [source: wiki]

Finally here is a good research report by RICS on the future of BID's & some findings on how BID's have been doing in the UK

WIth BBMP in dire financial straits it may be prudent to create BID's & allow local self governance within the city. I have met some large retailers who are interested & have experience in managing BID's in other countries. What do you think of this concept?