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Yes, let's figure out if we want the BID

by Chris Bessler
| August 7, 2010 9:00 PM

Opponents of the downtown Business Improvement District are gearing up to launch their third petition drive to dissolve the BID. A while back, petitioner Chris Park made one point with which I think everyone can agree: ultimately democracy should prevail.

After all, the BID was created because a majority of businesses signed a petition in 2000 to create it. Democracy is the bedrock principle of our nation. So, yes, let’s figure out what the majority of our businesses really do want as concerns the BID.

I’m going to hazard a guess about some other things on which Chris and I agree, as both local residents and business owners.

n We both want Sandpoint’s downtown to be a safe place for residents and businesses and visitors.

n We want our downtown to be clean and attractive.

n We want it to be commercially vibrant, and for our businesses to thrive.

Pretty much everyone would support these goals. Where we part ways is on the question of how we can achieve them.

I’m of the belief a clean, safe, attractive and vibrant downtown isn’t likely to “just happen” by itself — but rather, it’s something we need to work toward with intention, which is the whole purpose of the DSBA. And the BID assessments we businesses pay provide the modest resources DSBA has to do that.

The petitioners argue that voluntary contributions could fund some group to do this work. But that not only defies logic, it defies our experience right here in Sandpoint. Two previous downtown business groups — the Central Business Association in the mid 1980s and the Sandpoint Business Association in the late 1990s — folded due to lack of resources. They found their managers spent most of their time just trying to raise money; meanwhile, the minority of businesses that did contribute came to feel they were footing expenses to benefit a lot of businesses that wouldn’t participate.

I understand the principle the petitioners stand on: they simply don’t want to pay a mandatory tax. But if you agree that all businesses benefit from a clean, safe, attractive and vibrant downtown then it’s only fair that we all chip in for that. And, the reality is, we don’t chip in much. Most businesses — 68% of them, in fact — pay only $10 or $20 per month; the biggest ones pay $65, the maximum. As an added cost of doing business, it’s tiny.

But is the money well spent? Another assertion by petitioners is that over half the annual $104,000 BID revenues go to “administrative” costs, by which they mean the expense just to administer the association and have an office. Their math would only be accurate if our single paid staff member — the downtown manager, who draws a $35,000 salary — spent all her time just “administering” the association. But actually she spends the vast bulk of time producing the hands-on work needed to stage an event, carry out a marketing program, oversee the flower baskets or Christmas lighting, organize volunteers, attend city council meetings to represent business interests. Less than 15% of her time is spent on administrative tasks. Accurately calculated, the “administrative” burden is about 19.3% of the total budget — not the “over 50%” the petitioners keep claiming.

Moreover, most of the work of the DSBA is accomplished not by our lone employee, but by volunteers who contribute thousands of hours each year to clean and beautify the downtown, put on events to stimulate commerce, advocate on issues affecting downtown businesses. We leverage our personnel cost many times over with this volunteer labor.

There’s a ton of information, including copies of the current budget and arguments for and against the BID, available at www.downtownsandpoint.com. Bottom line, the BID costs little and produces a very good return on investment for individual businesses. It has the huge bonus of accomplishing good things for the community overall. And with the bypass soon to bring major changes in local patterns of commerce, we have more need than ever for a business association to help downtown compete.

When the petitioners come calling, I hope any business asked to sign will in turn ask some objective questions. Do they want to see the downtown thrive? What’s their plan to achieve that? What resources will they use? See if their answers really add up.

The nine DSBA directors are all volunteers who own or manage businesses downtown. All of us are happy to talk to anyone with questions, comments or concerns; our contact info is on the website.

Let’s each make a decision that’s best for our own interests — and the town’s as well.

n Chris Bessler is the president of the Downtown Sandpoint Business Association.