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Struggles to form business improvement districts (BIDs) in Los Angeles

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  • Wonhyung Lee

Abstract

Autonomous efforts to improve local business environments have become an increasingly important impetus for economic development. Business improvement districts (BIDs), as one of such autonomous organisations, have clearly demonstrated benefits for promoting commercial areas over the last two decades. When BIDs spread over a city, however, not every commercial district succeeds in establishing BIDs despite some initial efforts. This research examines the types of challenges that these neighbourhoods experience in order to form BIDs. This study is based on census data analyses and in-depth interviews with city employees, BID consultants, executive directors of BIDs and community stakeholders in Los Angeles. The results show that the areas with unsuccessful attempts of BID formation in Los Angeles are relatively low-income immigrant neighbourhoods. Some of these neighbourhoods have struggled with disengaged property owners, spatial conflicts among diverse ethnic groups, immigrants’ skepticism towards government and the chronic presence of informal economic activities. These findings suggest that some disadvantaged neighbourhoods are not adequately informed or organised to form BIDs. Public officials and community workers can support these neighbourhoods by providing direct assistance for the development of collective vision and action among community stakeholders.

Suggested Citation

  • Wonhyung Lee, 2016. "Struggles to form business improvement districts (BIDs) in Los Angeles," Urban Studies, Urban Studies Journal Limited, vol. 53(16), pages 3423-3438, December.
  • Handle: RePEc:sae:urbstu:v:53:y:2016:i:16:p:3423-3438
    DOI: 10.1177/0042098015613206
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    References listed on IDEAS

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    1. Brooks, Leah, 2007. "Unveiling Hidden Districts: Assessing the Adoption Patterns of Business Improvement Districts in California," National Tax Journal, National Tax Association;National Tax Journal, vol. 60(1), pages 5-24, March.
    2. Meltzer, Rachel, 2012. "Understanding Business Improvement District formation: An analysis of neighborhoods and boundaries," Journal of Urban Economics, Elsevier, vol. 71(1), pages 66-78.
    3. Mildred E. Warner, 2011. "Club Goods and Local Government," Journal of the American Planning Association, Taylor & Francis Journals, vol. 77(2), pages 155-166, April.
    4. Brooks, Leah & Strange, William C., 2011. "The micro-empirics of collective action: The case of business improvement districts," Journal of Public Economics, Elsevier, vol. 95(11), pages 1358-1372.
    5. Jerry Mitchell, 2001. "Business Improvement Districts and the “New†Revitalization of Downtown," Economic Development Quarterly, , vol. 15(2), pages 115-123, May.
    6. Philip J. Cook & John MacDonald, 2011. "Public Safety through Private Action: an Economic Assessment of BIDS," Economic Journal, Royal Economic Society, vol. 121(552), pages 445-462, May.
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