What is a BID?
A BID (Business Improvement District, authorized by State of California law) is a private sector funding tool that provides funding for the promotion and improvement of a specific area. All business license holders inside the said district are charged an annual fee based on anticipated benefits they receive from the BID. The BID is reauthorized yearly by the City Council at the request of the businesses’ Board of Directors. A BID is a tool used by over 200 business areas in California, including Mountain View, Palo Alto, Santa Clara, Morgan Hill and San Jose.
The BID has legal requirements in order to be reauthorized. Specifically, the City Council must first approve the Annual Report and then adopt a ROI to reauthorize the BID for a second year. Once the ROI is adopted, a public hearing must be held during a Council meeting.
Businesses pay into the BID based on the benefit they receive as members of the district. The funds collected can only be used for projects within the BID boundaries. The business community maintains full control of all BID funds collected.
The formula for determining the BID assessment amount is determined by the Board, not the City. The Board takes into account the type, size, and location of the businesses and determines the most equitable formula for each type of business. Assessments are levied on businesses on the basis of relative benefit from the activities to be funded. The City collects the fee on an annual basis. Normally, BID assessments are included as a separate charge on the business license tax bill that every business within the BID boundaries receives. However, because Sunnyvale has a two-year business license tax cycle, a separate billing process is being used. All assessment funds collected by the City are returned to the BID through annual contract agreements. The City does collect a fee for administrative costs associated with this service. The cost is reviewed and adjusted annually as needed.
History of Sunnyvale’s BID
On December 13, 2005, Council approved the Sunnyvale Downtown Association’s (SDA) request of $6,400 to hire a consultant and a part-time executive director to conduct a Property/Business Improvement District (P/BID) feasibility study. The feasibility study concluded that there was sufficient support from downtown businesses to form a BID. On August 22, 2006, Council approved funds in the amount of $47,050 to hire a consultant and fund the part-time executive director position to form a BID in downtown Sunnyvale. On January 30, 2007, Council adopted the Resolution of Intention to Establish a Downtown Sunnyvale Business Improvement District. On February 27, 2007 a public hearing was held to hear comments from the downtown businesses. On March 6, 2007, Ordinance 2830-07 was adopted by Council and the BID was established for Downtown Sunnyvale.
The BID area is bounded by Sunnyvale, Iowa, Mathilda and Evelyn Avenues.
Mission of The SDA
Sunnyvale Downtown Association (SDA) is a non-profit membership based organization whose mission is to promote, advocate and enhance the vitality of downtown Sunnyvale. The SDA is funded by business improvement district (BID) fees, city funds, sponsorships and revenue producing events.
The Sunnyvale Downtown Association (SDA) serves as the voice of downtown Sunnyvale by:
- Advocating for policies, programs and events that support the economic growth of the downtown
- Acting as the downtown marketing arm, voice and ambassador for the City of Sunnyvale
- Producing attractive events for the community
- Promoting downtown as a premier venue for other groups to produce events
- Working with other community-based organization's that share in the growth, beautification, and continual vitality of downtown Sunnyvale
- Serving as the primary information portal to all events, attractions and programs stemming from the downtown core
