City Renews Fashion District BID Contract
It wasn’t easy, but the Los Angeles Fashion District Business Improvement District (BID) gained a new contract with area property owners. On July 30, the City Council voted unanimously to ratify a five-year plan that goes into effect on Jan. 1, 2004.
The BID provides security, cleaning and marketing services for district property owners and serves as a political liaison with the city of Los Angeles and other government agencies.
During its renewal process, the BID was challenged by a group of Santee Alley business owners who questioned the group’s fairness in electing its board of directors and in handling its budget. The dissenters even organized to launch their own BID but called off the plan after several weeks of arbitration and negotiation with the existing group.
During a public hearing before the City Council on July 29, the only opposition to the BID came from property owners on the fringes of the district. These owners claimed they would not be able to take full advantage of the BID’s benefits because the organization’s cleaning services would not extend into non-district areas.
Before the City Council accepted the BID’s renewal, property owners representing 76 percent of assessed land in the district approved the renewal.
The vote also allows the district to expand its boundaries. The district will now include a stretch of properties on Crocker Street, where a number of wholesale showrooms are being built.
“The renewal of the Fashion District BID ratifies the importance of the programs provided by the BID,” said Barry Gold, chairman of the BID’s board of directors. “The core clean and safe services help protect the investment made by all stakeholders in the district.”
Kent Smith, executive director of the BID, said he and the board were delighted with the outcome.
“We’ve managed through a difficult process, and it’s going to remain challenging as we see a new residential element coming to the Fashion District, as well as more growth from retailers,” he said. He explained that with the development of new lofts and apartments, the district expects to house as many as 3,000 permanent residents by 2005.
The BID, which began operations in 1996, was successfully renewed in 1998 for a fiveyear term. Fashion District property owners have contributed $20.9 million to the organization in the last eight years. —Robert McAllister
