ABSTRACT

Business improvement district (BID) are increasingly numerous and familiar worldwide. This chapter reviews some of the literature about BIDs, taking note of various portrayals of the relationship of, and actual or apparent tensions between, private and public interests in the management of business districts. It highlights selected provisions of New Jersey’s enabling statute and presents an overview of BIDs in New Jersey. The chapter discusses relevant case law that resolved questions concerning legislative intent and the balance of competing interests, costs, and benefits associated with BIDs in New Jersey. The central issue, in the judgment of the New Jersey Supreme Court, was whether Morristown’s special improvement district ordinance was constitutional. Some observers enthusiastically endorse BIDs and similar special-district forms as a responsive, nonbureaucratic, and private-sector-led approach to reinventing the provision of local public services. In the United States, BIDs are typically created by municipal designation, pursuant to the authority granted by state-level enabling statutes.