BusinessImprovementDistricts-SouthDakotaMunicipal.doc

Business Improvement Districts A handbook for municipal officials South Dakota Municipal League 208 Island Drive Ft. Pierre, South Dakota 57532 ( South Dakota Municipal League, 2011 Table of Contents Page Chapter 1: The History of Business Improvement Districts……………………………………………...3 Chapter 2: Uses of Business Improvement Districts……………………………………………………..4 Chapter 3: Creation of Business Improvement Districts…………………………………………………6 Chapter 4: Implementation of Project Plans……………………………………………………………...9 Chapter 5: Some Notes of Caution……………………………………………………………………...11 Appendix A: Exhibits (Samples originally published in 1986…………………………………………13 Appendix B: Samples enacting a per room occupancy tax, enacted by a SD municipality in 2003…...22 Appendix C: South Dakota Statues, Chapter 9-55, Business Improvement Districts………………….37 Chapter 1 The History of Business Improvement Districts The traditional business district has been at a competitive disadvantage with shopping centers for a number of reasons. These reasons include an inability to raise funds for many purposes such as parking facilities, area improvements, promotion of the area, coordination of activities and similar functions. There have been several programs developed to overcome these disadvantages. Urban renewal grants, community development block grants and urban development action grants were created to allow communities to deal with the physical needs of the central business district. These programs had a number of problems, including a lack of flexibility in dealing with the varying problems of each community. The biggest and most recent problem has been a dramatic reduction in the level of funding for these programs. This resulted in a search by many local officials to find another source of funds for improvement projects in business districts. The problem of finding funds to promote a business area and to coordinate activities was answered by the development of business associations that ra