Public-private Partnerships: Bid Collaboration In Philadelphia

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Neighborhood improvement districts (NIDs) are the same as business improvement districts (BIDs), also known as business assessment or improvement areas or special improvement districts.

The Chestnut Hill NID, which was established in June 2004 and renewed as a BID in 2009, resembles most BIDs in its attempts to define and manage a public-private partnership (PPP) to improve the community.

The history of BIDs is a result of an increasing number of communities looking for and finding ways to build successful, organized approaches to development, revitalization efforts, and improvements through collaborative multi-sector partnerships. According to the book Business Improvement Districts and the Shape of American Cities, "The general aim of BIDs is to put public places within cities on the same footing as the private ...
... places outside them— shopping centers and strip malls."

BIDs began in Toronto and Ontario, Canada, in the 1960s, and in New Orleans in the 1970s. In the late 1980s and early 1990s, BID creation accelerated. By the mid 1990s, BIDs began to be exported around the world. In 2007, there were an estimated 750 BIDs in the United States and more than 400 in Canada and Europe, including the United Kingdom.

As a function of government, BIDs are sub-governmental units, even when managed by a private nonprofit corporation." Sub-governmental" refers to public institutions governing a designated area established by legislation to address specific needs of the community that cannot be addressed adequately by internal government programs. In Kessler v.

Grand Central District Management Association (GCPMA), a New York court decided (and most jurisdictions agree) that the GCPMA (and by extension, other BIDs) is a limited purpose institutional design because its services are supplemental and secondary to municipal services; quantitatively dwarfed by those of the city; and qualitatively different from core municipal functions.

The purpose of sub-governmental initiatives is to professionally manage services to address those needs. Sub-government units are limited rather than general purpose governments and are specially authorized to permit government to proceed often into previously non-governmental areas of society that require collective action. This definition implies that sub-governments can engage private-sector interests and act as a mechanism to coordinate those interests with a public purpose.

BIDs are local sub-governments designed to manage business and community revitalization and development efforts by establishing a special assessment district. The BID sub-governmental model operates as a form of PPP both contractually and politically.

Legally and politically, BIDs are acknowledged to be subunits of government organized and managed as public-private partnerships. A PPP is a contractual agreement between private- and public-sector actors to accomplish common objectives and purpose. BIDs offer an increasingly popular avenue of public impact, participation, and organization for invested local private actors to revitalize business centers, as well as enhance local governance, services, and management capacity.

Public-private partnership management is an expertise that brings together business, government, planning, and community development knowledge and skills to solve public problems. BIDs are distinctive but uncanny partnerships between the public and private sectors, operating at the local sub-governmental level and functioning both contractually and in a strategic collaboration.

The story of Chestnut Hill NID is an examination of this sort of intended partnership. Is it successful?