Court Ruling Imperils Los Angeles BIDs

"A Los Angeles Superior Court judge has ordered the Arts District Business Improvement District to dissolve, capping a long feud between the entity and a group of property owners," reports Ryan Vaillancourt. "[Judge Robert H. O’Brien's] order centered on his finding that the BID spent tax dollars on economic development services that did not provide a special benefit to area property owners."

"What makes the ruling particularly important is that it could set a precedent for challenges to other, larger BIDs in Downtown," says Vaillancourt. "Currently the community has seven operating BIDs. All of them provide trash removal, safety officers on bicycles and economic development services."

"Numerous BID executives are already on edge," he adds. "The Downtown Center Business Improvement District, which covers 65 blocks, spends about 29% of its an annual budget of $5.8 million on economic development.

“The decision is wrong and will have a very dramatic impact on us in particular because we have the largest economic development function,” said Carol Schatz, president and CEO of the DCBID.