Step 1: Contact the Department of Small Business Services (SBS)

1. Designate a BID Formation Project Leader 
2. Inform SBS That You are Considering BID Formation

The initial decision to form a BID can come from area property owners, local merchants, a local development corporation, the chamber of commerce, a Community Board, a City Council representative, the Borough President, or Mayoral agency on behalf of the Mayor. Regardless who initiates the BID, however, no BID effort will succeed without the active support of a local sponsoring organization which is willing to undertake the work. 

This group must have extensive knowledge of the community and be skilled at organizing and gaining the support of property owners and merchants.  The organization should have a history of involvement with the community, a reputation for seeking positive change within the community and a vested interest in the long-term economic stability of the area.  It should also have a Board of Directors or membership that is representative of the interests of property owners, businesses and tenants in the proposed district.

1. Designate a BID Formation Project Leader

The sponsoring organization’s first task is to select a project leader. The project leader is responsible for initiating and coordinating all BID establishment efforts.  In many instances, a member of the sponsoring organization volunteers to function as the project leader. Alternatively, the sponsoring organization may want to hire someone with specialized skills, who will then be assisted by the sponsoring organization or steering committee.

The project leader reports to the BID steering committee (see Step 3), the sponsoring organization and SBS throughout the establishment process keeping them informed and involved in steps taken and planned as well as problems encountered and resolved.

2. Inform SBS That You are Considering BID Formation

In New York City, the Department of Small Business Services (SBS) administers the Business Improvement District Program Citywide.  SBS functions in an advisory and supervisory capacity, working closely with groups throughout planning and approval as well as after establishment.  SBS is responsible for guiding groups through the planning phase, shepherding BID proposals through the public approval process, and supervising program implementation and contract compliance once the BID is established.  In this context, SBS functions in a supportive as well as oversight role to provide whatever assistance it can to the sponsoring organization.

Any group or individual considering BID formation should contact SBS before proceeding with the following steps. If you have not yet contacted SBS regarding BID formation, please call 311 and ask for the Business Improvement District Program.

Once you contact SBS, a member of SBS' staff will be assigned to guide you through the BID formation process. BID formation is not possible without partnering with SBS throughout the entire process.