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Property-Based Improvement District

What is a Property-Based Business Improvement District (PBID)?

The International Downtown Association estimates that more than 1000 property-based business improvement districts (PBIDs) currently operate throughout the United States, Canada, Australia, the Caribbean and Europe.

A PBID provides enhanced improvements and activities, such as security, maintenance, marketing and economic development in addition to those provided by local government. A PBID is based upon the “mutual benefit” concept. Assessments on properties within a specific geographic district with the proceeds directed back to the district to provide services that benefit the district. California law does not allow discrimination based upon use. In other words, residential property within the district is assessed in the same manner as commercial and government property.

Some other attributes of a PBID are:

  • It is designed and created by those who will pay the assessment;
  • It is established through petition and ballot process by the property owners who will pay the proposed assessments;
  • It is governed and implemented by those who pay through a 501c6 non-profit, private sector management organization that manages the day-to-day operations;
  • It provides for a set term of existence (5 years) and requires a new petition process, by those who pay, to renew the assessment district;
  • It allows a wide range of service options, including security, maintenance, marketing, economic development, special events, parking improvements, access improvements;
  • In California, all PBIDs are subject to the Brown Act and all meetings are open to the public.