It could take special property taxes or more money from the county budget to one day see a Taste of the Pike District or Friendship Heights Circulator.
A report released Tuesday by the County Council’s Office of Legislative Oversight delved into what it takes to create and fund business improvement districts — the type of organizations that provide an extra layer of marketing, maintenance and in some cases transit to specific areas.
Much of the 84-page report was devoted to case studies of 15 “local districts” from some of the country’s biggest cities. But a substantial portion of the report discussed how, or if, Montgomery County could duplicate groups such as the Bethesda Urban Partnership elsewhere.
The Partnership (BUP) celebrated 20 years last year and according to OLO “is widely recognized as a model public-private partnership that successfully delivers government, community and business services.”
BUP organizes and puts on annual events such as the Taste of Bethesda, which can draw as many as 40,000 people to Woodmont Triangle, and operates the Bethesda Circulator, a free shuttle that makes a loop around various spots in downtown Bethesda.
But 82 percent of BUP’s budget this fiscal year came from Bethesda parking meter and fee revenue. It’s a funding mechanism the OLO said likely wouldn’t work in other areas where there’s an interest in a similar organization, such as the White Flint/Pike District and Friendship Heights.
“While this model has proven successful in Bethesda, Silver Spring, and Wheaton, it may not be possible to replicate in other parts of the County for two reasons: 1) the reliance on parking lot districts as a funding source, and 2) the inclusion of urban district taxes within the County’s charter limit calculation,” stated the report.
That brings up a number of questions for those hoping to create a Bethesda Urban Partnership-like group in White Flint, where a group of residents, business owners and developers called the White Flint Downtown Advisory Committee has been charged to do just that.
The group has made progress on a flower-planting effort to give White Flint roads a prettier and more unified look and an official website to market the place. But Pike District/White Flint advocates and the county will have to wrestle with how to fund a BID for the area without dedicated parking revenues.
They’ll also have to consider a special tax already imposed on properties within a half-mile of the White Flint Metro that came out of the 2010 White Flint Sector Plan to fund new roads for the area.
The OLO identified three questions that could apply to creating a BID or similar organization in White Flint or Friendship Heights, where some have also expressed an interest:
— Should Montgomery County develop a mechanism for local business or community groups to create voluntary taxing or assessment districts outside the current urban district structure? If so, how would this impact current urban districts?
— Is the BID framework established in State law sufficient for Montgomery County, or are additional provisions, authorizations, or other changes needed?
— Alternatively, can the current urban district structure be revised or expanded to permit greater flexibility? Should the County review the special benefit district model used by other Maryland jurisdictions?
Annual budgets for the 15 big-city BIDs reviewed in the OLO report ranged from $184,000 (Arlington) to more than $10 million (Denver). In New York City, where there are 70 different BIDs, operating budgets ranged from $50,000 to more than $17 million, depending on the extent of services provided.
State legislation enacted in 2010 allows Maryland counties to create BIDs funded by a business improvement district tax, though the OLO said it’s unclear if those taxes would still be subject to a county’s charter tax limit.
The state law does require support from at least 80 percent of property owners in a proposed district, a much higher threshold than OLO found in its 15 case studies from around the country.
