Friday, July 26, 2013

Future Management of the Business Improvement District (BID)

By Kate McAlister

With the change in management of the BID, I wanted to take time to start the communication process.

After attending various meetings and hearing comments over the speculation of the BID Management and the Chamber’s role going forward, we put together this FAQ to answer some of the reoccurring questions. The Chamber appreciates how engaged everyone is in the process and welcomes this engagement going forward. After reading this, if there are any other questions or comments you’d like us to include in future communication briefings, you can submit them anonymously through the following link (http://ow.ly/mQ9gs),  or you can email them directly  to Kate at kate@sandpointchamber.com.

The following questions were put forth at the three open forums that were held as well as from emails and phone calls we have received at the Chamber.  Again, if we haven’t answered your question, give us a call or send me an email.

Are the DSBA and Chamber combining?
No.  As of September 30, the Downtown Sandpoint Business Association (DSBA) is dissolved in its entirety. There will be a new name and logo for the new organization through the strategic planning process. It is anticipated on October 1, the Greater Sandpoint Chamber of Commerce will be awarded the management contract from the City of Sandpoint for the administration and management of the Business Improvement District. A new organization will be put together, with a council of new individuals leading the way. 

Who will make up this new Council?
Members of this new council (similar to a Board of Directors) will be made up of nine business sectors and their representatives.  These sectors include:  Food & Beverage, Education, Real Estate, Professional Services, Health Care, Lodging, Retail, Arts/Entertainment and a Member-at-Large.   Each representative will communicate with the BID members in their sector in regards to strategic planning, input and issues. There will also be four non-voting ad hoc members representing the City of Sandpoint, Chamber of Commerce, Bonner County Economic Development Council and Sandpoint Urban Renewal Agency. Once the new council representatives have been identified and confirmed we will publish their names and contact information.

Will I still have to pay the BID fee?
Yes.  Those parameters will not change. The BID fee is an assessment. An assessment is a unique self-imposed fee to benefit a specified area for improvements, economic vitality, revitalization, beautification, and other identified projects.  A new business is given a one year grace period before they are assessed.  It is the business owner who is assessed not the building owner.

Will The Chamber impose the BID Assessment?
No. The Chamber will not impose or collect the assessment fee. The City of Sandpoint will continue to collect the assessments and pay it to the organization who manages the BID. It is anticipated beginning October 1 this will be the Chamber, who in turn will use the funds for identified projects from the new council’s strategic plan.

**You can read the City Council meeting minutes starting with the June 2000 minutes through October of 2000.  The members of the BID elected to form the organization in 2000 with the help of the City of Sandpoint and a vast array of supporters. The BID fees are a self-imposed assessment to help fund downtown projects and enhance economic vitality of the downtown core. 

Will the BID funds go to the Chamber?
The BID Monies will be kept separate from the Chamber accounts.
Similar to what the Chamber already does with a $120,000 grant from the State of Idaho, the Chamber will keep a separate budget specifically for the BID funds and it will not mix it with the Chamber’s General Budget or ITC Grant Budget.  The Chamber will receive an administrative fee, as it does with the ITC grant, for the additional work Chamber staff will be taking on as part of managing the BID. 

Does the Chamber decide how the BID Monies are spent?
No. The BID monies are paid by BID members and they are the ones who ultimately decide how monies will be spent through representation on the above mentioned Council (similar to a Board of Directors). It will be the BID Manager’s responsibility to implement the strategic plan developed by the council. 

Who will the BID Manager report to?
The BID Manager will report to the Chamber President/CEO who will manage this position, and offer support and resources when needed.

Are BID Members automatically Chamber Members?
No.  The BID Members will be members of the BID organization.   In order to receive Chamber benefits and have the ability to support and get involved with the Tourism Sandpoint organization, BID members, as they do now, will need to join the Chamber.  Currently, a little over a quarter of the BID members are also Chamber members and four directors on the Chamber Board of Directors have businesses in the BID.  They are still two separate organizations. 

Will the Chamber President run the BID?
No. The Chamber President’s role is to create transparency so BID members will be able to see where their monies are going, what projects are being worked on, manage the manager, keep the lines of communication open and provide leadership for the organization. They will not have a voting seat on the council but will be involved in the day-to-day operations.

Will the BID continue operating in the same way?
No. Many things will be different and a few will remain. A brand new organization will be created to manage BID funds and new players will be brought into the mix. The goal is to create a strategic plan and evolve the BID into a stronger organization, moving forward with new council members and new ideas to create stronger economic vitality for businesses in the BID.

Will we still have the Flower Baskets?
Yes. This is one of the things remaining the same.  When asked, BID members told us they wanted to keep the flower baskets, the annual Christmas Tree lighting festivities and Winter Carnival.

Is this a new idea, having a Chamber of Commerce manage a BID?
No. BIDs have been created all over the United States and many of them reside within the local Chamber of Commerce’s walls. It allows collaboration, cost savings, leadership and accountability. Coeur d’Alene is the closest example of this organizational structure.

Does the Chamber have skin in the game?
Yes. Our Board of Directors did not take this decision lightly and the support of the City of Sandpoint has made this process go smoothly. Over a quarter of the BID Members are already Chamber Members as well and the Chamber’s role of listening to their members will be enhanced through this process. The Chamber’s main concern will always be the vitality and prosperity for our business owners and the surrounding communities. Through this change in administration of the BID, the Chamber feels it is parallel with this goal.

Does the City of Sandpoint have skin in the game?
Yes. The City of Sandpoint plays an important role in the BID. The Chamber has requested the City of Sandpoint be involved in every step and already identified representatives to take part in the planning. The City has promised to stay engaged and take a leadership role in the development and revitalization efforts of the downtown core. Recently, the City of Sandpoint received a Community Review Grant from the Idaho Rural Partnership. This grant will act as a catalyst for many positive changes to come in the future and has shown positive results for other communities in Idaho.

Will BID Members know where their money is going?
Yes. In an effort to show the BID Members how their assessments are being spent, the budget will be transparent and members will be able to view it at any time. The Chamber requires full transparency and fluency of BID monies. The Chamber will publish the budget for BID Members in an effort to gain trust of the process.

What about the other communities the Chamber represents?
We have served the Greater Sandpoint area for many years and we will continue to support our local businesses in Ponderay, Kootenai and Dover.  Beginning January 2014 the Chamber’s monthly General Membership Luncheon will be held at the Ponderay Events Center every other month.  We are always looking for opportunities to collaborate and support our surrounding communities.

I hope this article will shed some light on what is going to take place in October.  A 3 to 5 year strategic plan will be developed and will be made available for everyone to see.  This will provide a roadmap for the future and accountability for the new council.  Once the planning begins be prepared for to be asked for input on a number of topics.  I highly encourage all of you to participate.  This is your money, it has always been your money and your involvement is critical in going forward. 

See you around town!  Wear sunscreen!

Kate McAlister