A veritable “who’s who” of the River North Arts District packed into event venue ReelWorks on Wednesday night to discuss the district’s future.
Since 2015, commercial property owners in RiNo have paid a small portion of property taxes to fund the area’s Business Improvement District.
The districts, also known as BIDs, use that money to fund services like marketing, infrastructure, beautification and other forms of support for local businesses.
Now, with the BID reaching the end of its initial 10-year term, members of the district’s board have to decide whether they want to continue its existence.
Let's run the numbers on the RiNo BID
Properties within the BID boundary pay slightly higher property taxes to fund it. Currently, they pay an extra four mills (that’s 0.4 percent) on their assessed value.
The owner of a property valued at $1 million would pay an extra $1,160 yearly for the BID.
The BID estimates it will receive $3.1 million in funding from taxes in 2025.
Those in favor of dissolving the BID say its budget is bloated
Tai Beldock, a landlord and business owner who considers herself a “founding mother” of the BID, argued in front of the board that administrative costs have become bloated.
Beldock said dissolving the BID would provide tax relief to commercial property owners in the district. However, she also said she would support a continuation of the BID if it restructures its budget.
“If the BID were to return its focus to the things that matter to businesses such as cleanliness, security, and city advocacy, we'd be able to cut out the other half of the budget that we are currently spending on [RiNo Art District] administration and [RiNo Art District] objectives,” Beldock said.
About $585,000 of the BID’s budget is paid to RiNo Art District, while another $295,000 goes to Keep RiNo Wild, the arts education nonprofit.
Even those in support of the BID said a restructuring needs to happen
Others were supportive of the BID continuing on, but urged a restructuring and a lower mill levy. Kevin Preblud, president of EXDO Development, said it's important that the BID fulfills the mission implied in its name: improve businesses in the district.
“Development has stopped down here — not because of [RiNo Art District] or the BID, it's because of the economy and interest rates,” Preblud said. “And I think we're at a crucial juncture as interest rates come down a little bit, developments start to pick up. But we need to right the ship.”
While the mill levy cannot exceed four mills, the board can lower the mills and make changes to that during its yearly budget cycle.
Matt Lindy, who owns Dewey Beer Company, said there are more ways to raise money for the BID than mill levies.
“Let's get a committee together that is going to ensure that the [RiNo ArtPark] is used every weekend to raise money for the district,” he said. “Every single time that we see an event happening in that park, and we are directly across the street from the library, we see people come into the neighborhood who don't typically hang out in the neighborhood.”
What's next?
The BID board will vote on whether to recommend a continuation of the BID on Wednesday, Nov. 20.
If they recommend a continuation, the city council will then make the official decision about whether to renew the BID for another 10 years.
