Area 61 Gallery Director Keeli Crewe is shown in this 2016 staff file photo.I'm a business "tenant," a non-property owner, within the proposed downtown Business Improvement District (BID). In response to the recent commentary by Steve Hunt, "Self-assessed fees would enhance safety, cleanliness of district" (page F1 of Sunday's Times Free Press):
I agree the city budget is stretched, demands are growing and downtown should be the best it can be. Who wouldn't be for enhanced safety, cleanliness and moving panhandlers along?
However, when property owners who are advocating for the BID refuse to call it what it is, a "self-imposed tax," it makes me even more intrigued as to what is actually in their long-range plans.
A BID is not simply a neighborhood/homeowners association. All definitions of a BID call it a "sell-imposed tax," not self-assessed "fees" or membership dues. It does not serve an identical purpose and function as a neighborhood/homeowners association. While neighborhood associations do work together to accomplish some of the same objectives of a BID, the proposed services of this BID include many more than the three that have been declared publicly (enhanced cleaning, safety and improved maintenance of infrastructure) and most of them have historically been provided by existing downtown development agencies.
A self-imposed "tax" is very different. Most of the property owners who are advocating the BID have substantial business or residential tenants. I've reviewed three tenant leases in the past year within this district. My attorney said that lease language stating the tenant shares in a portion of the property tax, insurance and operating expenses has become standard, and it is 100% to the benefit of landlords. He added there is room for some negotiation, or to cap your share. Bottom line, taxes can be passed down to the tenants in a number of ways. If this clause isn't already in your lease, look for it when you renew.
If the BID is voted through by the city council, you can also expect to see increased residential rents, hotel room rates and eventually increased consumer costs for many of your favorite restaurants or attractions in the district.
The proposed BID in Chattanooga was not exactly a grassroots effort, since one of the country's leading BID expert, Progressive Urban Management Associates was retained by River City Co. to evaluate the BID feasibility and to explain the process here. Since the process began, several of the key residential condominium properties from Cherry Street to Georgia Avenue, properties on Walnut Street, The Edwin, Unum, Mayfield Annex building, Hunter Museum and The Bluff View Arts District have been drawn out of the district.
Last week during the City Council meeting, five area women-owned business tenants spoke about the already high costs of doing business within this area, how local business contributes to the culture of the city, the commitment it takes to own your own business, the weight of additional taxes and the challenges of making your employee payroll within the cyclical nature of the sales and service industries. We tag-teamed our 3-minute allotted segments with our plea to council members to stop the BID resolution, step back and evaluate other alternatives to a BID tax, including business tenants as well as property owners. We offered up membership models and specific project donation alternatives. We asked them specifically to engage the generosity and innovation of the community and the famed "Chattanooga Way."
A few council members asked us to keep coming back and bring more business people. We will show up for the final two phases of the BID adoption process, 6 p.m. today and July 30 in the City Council chambers. Will you please join us to stop the BID tax?
Keeli Crewe is co-owner and gallery director of Area 61 gallery. Contact her at keelicrewe@me.com.