Southwest Detroit Businesses to Pay for Shoppers
History is about to be made in Michigan. Businesses are actually going to pay for shoppers. Well, not actually, but kind of. Southwest Detroit business owners have approved Michigan's first Business Improvement Zone. These zones are more commonly known as Business Improvement Districts, or a "BID".
In a BID, businesses agree to pay a small tax increase to cover services in their district such as security, cleanup, parking, and marketing.
The Southwest Detroit Business Association has estimated that approximately 200 property owners (who own or control around 300 parcels) will be included in the district. Voting on the proposal was held from approximately mid-August to mid-September. The BID passed with around 67% of the vote. The extra tax amounts to 2% on top of the normal business property tax bill.
The new BID covers an area including West Vernor from Clark on the east to Woodmere on the west, and Springwells between Vernor and the I-75 service drive.
BIDS are widely accepted in other locations throughout the USA and Canada. However, up until now, antitax advocates and other critics in Michigan have been able to prevent approval of BIDs here. By way of contrast, Windsor, Ontario has nine separate BID districts, and New York and Los Angeles have approved about 50 each.
Proponents of BIDS are hoping that the new BID in southwest Detroit will spark the creation of BIDS in other locations throughout Detroit.
