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Public-Private

F5 Business Improvement District (BID)

F7_BID_©Gerhard Seybert - fotolia.com
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Description

BID implies additional financing made available for upgrading the commercial and industrial environment in a specific area based on the consent by a majority of businesses located in that area, who pay an additional levy. BID is usually funded mostly by the levy revenues, yet it can be combined with other municipal funding allocations.

Example

The BID in Eindhoven is the largest BID in the Netherlands as it includes the entire city centre of Eindhoven. The income collected from the tax in the BID area is collected and managed by an independent association. It is spent on the local initiatives based on the proposals submitted by the local business community members. Even though the fund managing association is independent from the municipality of Eindhoven, the strategic city goals seem to be taken in consideration when allocating the funding. For example, projects aiming at improving the city image by introducing more greenery in the city have received financial support from the association. According to the municipal economic experts, the BID has proven to be a great instrument to mobilise the local business community members including local producers, retail chains and real estate owners and provide financial support for bottom-up urban greening initiatives (source: Hawxwell et al. 2018).

Source D6.4 NBS Value Model