Some lessons for
Portas Pilots and other attempts to 'turn around' UK high streets from an interesting
piece in the Journal of Urban Economics on which businesses choose to take part in Business Improvement Districts: "Business Improvement Districts (BIDs) provide supplemental services to
urban commercial corridors using funds from member assessments. They
have become a very popular urban revitalization tool, but their
formation is still largely unexplained. [...] I find that BIDs are more likely to form when there
is more commercial space over which the BID benefits can be capitalized
and when there is homogeneity in service and spending preferences across
properties. BIDs also tend to form in neighborhoods that possess signs
of appreciation and growth. Generally, BIDs are more likely to form in
neighborhoods with higher valued properties with the exception of very
wealthy areas. The BID boundary, however, is comprised of relatively
less valuable properties."
In other words BIDs are most likely to form in established neighbourhoods
showing some appreciation (so not great for turning round decline); a critical mass of more
valuable properties are needed to ‘anchor’ the bid; and property homogeneity helps
(because know you are going to get the kind of services you want).
[Update: Pre-publication version available
here]
