Monday, December 2, 2013

Mounting a Successful BID Renewal

How do you prepare your organization to mount a successful renewal campaign for your business improvement district?  How can you apply the experiences and successes of other BIDs? 

As part of its on-going Webinar series for downtown practitioners, the International Downtown Association brought together three seasoned practitioners in November 2013, to share their personal experiences with BID renewals:  Andy Taft, President, Downtown Forth Worth, Inc.; Kristi Stokes, President & CEO, Greater Downtown Council of Duluth, MN; and Jim Cloar, consultant for downtown planning, development and management and past president of Downtown Dallas, Inc., Tampa Downtown Partnership, and The Partnership for Downtown St. Louis.

BID renewals discussed in the Webinar included:
  • Duluth, MN         (pop. 86,211, metro 279,771)
  • Shreveport, LA   (pop. 201,867, metro 439,000)
  • St. Louis, MO     (pop. 318,172, metro 2,900,605)
  • Fort Worth, TX   (pop. 777,992, metro 2,136,022)
Here is a summary of the lessons learned from our experts, plus a few of my own experiences and examples thrown in for good measure.

Never take your renewal for granted.  A renewal is a good reminder of the importance of year-round promotion of your BID's programs and accomplishments.  Find new and different ways to remind your fee payers and stakeholders of what you do, and how well you do it.  Newsletters, social media, handwritten notes, meetings, phone calls, transit advertising.  The time and money spent keeping what you do "top of mind" with your fee payers will deliver rewards at renewal time. 

 
Start Early.  Starting two years in advance is not too early, according to our experts.   

Establish an Advisory Committee or a Board subcommittee that includes property owners and key influentials.  The committee or board needs to sell it, not the downtown organization staff.  Let others do the talking for you.  Even if your board or advisory committee is convinced the renewal will pass, it is essential to go through the process of renewal.  Remind them of the importance of peer to peer selling!  Set up a time line for your advisory committee that explains in detail goals, strategies and expected outcomes.  Make one-on-one-calls and meetings, get people talking about the renewal.  

Enlist largest property owners first.  Make sure your “heavy hitters” are the first to be on board with your renewal. They can also be tapped for membership in advisory committee.

Identify the Opposition:  Identify property owners and potentially vocal stakeholders who are opposed to the BID’s renewal.  If you haven’t already done so, develop relationships with them.  Meet with them and listen respectfully.  Let them know you understand their concerns.  Spell out measurable, positive results (never assume the results you have been presenting are obvious to everyone). It’s important to talk with people and share the successes of your BID.  Also, give examples of your organization's efficiency and the cost savings your fee payers realize.  Enlist pro-renewal advocates who are peers of those who are opposed.  Determine if those who are opposed have been given false or inaccurate information about the BID; make efforts to present new information.   It’s critical that detractors hear from their peers about the benefits of the BID.    If there were vocal critics who now support the BID, ask them to join you in meetings and to make calls.  If you haven’t won over opponents, continue to try.  Stay respectful.  Don’t give up.  If anything, you’ll demonstrate your sincerity, passion and commitment to the BID’s future success. 

State your case.  Present your BID’s proposed business plan, and highlight your organization’s accomplishments.   Link your BID to strategic plans for your downtown or region. Assemble and report important data and trends. How much new public and private investment has occurred?  How has your residential population increased?  Hotel room inventory?  How many historic buildings have been restored, redeveloped?  How many restaurants, shops and services have opened?  Have retail and food and beverage sales increased and how much tax revenue has that generated?  Have your crime rates and calls for police services improved over time?  Compare and contrast total assessed property values within your BID.  Are they outpacing growth rates in other parts of the region? 

For its 2013 BID renewal, Newcastle NE1 Business Improvement District Company in the U.K., produced an exemplary website and business plan.

Seek endorsements from the Mayor, Council, Condominium Associations.  Gain the support of condo associations versus going to individual condo residents.  This is where your organization’s on-going efforts to communicate your day-to-day and long-term accomplishments via your website, newsletters and business and community meetings will start to pay off. 

Seek media endorsements Meet with the editorial boards of key print and electronic media.   Search out examples of supportive editorials from other BID renewals.  Develop a case statement in summary to share in your meetings with editorial boards.
Be wary of making unrealistic promises, compromises.  Be wary of setting caps per property, cutting rates and in general making compromises that could potentially hobble the BID five to then years out.  It's easier to decrease assessments when you're going through a renewal, for example, but if you don’t have to do it, our experts recommended resisting that. 

Make clear distinctions between management and leadership.  Keep the BID focused on management.  When your BID takes a position on a particular issue, you risk alienating parts of your constituency and potentially tanking your BID renewal.

Appeal to your fee payers' common sense.  Seek to extend the number of years between renewals.  Having more time between renewals allows an organization to think more long term and more strategically.  Overall, you want your fee payers saying they can't afford NOT to renew. 
 
IDA members can access the complete 60-minute Webinar from the IDA website.

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