The East Harlem 125th Street BID Steering Committee, a group of businesses, property owners, residents, and elected officials, is proposing to create a new Business Improvement District (BID) along 125th Street between just east of Fifth Avenue to Second Avenue, south to 124th Street on some block faces and north to 128th Street on some block faces.
If you own property, run a business or organization, or reside within this district, you can help the effort by completing a statement of support.
We’ve hosted two public meetings for property owners and tenants who own a property, run a business or organization, or reside within the proposed BID district (marked green on the map below), as well as a Zoom and a meet-up by community request. Now we're going door-to-door to spread the word! If you'd like us to come speak to your building with more details, shoot us an email us at info@uptowngrandcentral.org.
As part of the proposed BID, property owners and taxpayers of record would be charged an annual special assessment that would fund the following supplemental services to support the community and local quality-of-life conditions: 1) Sanitation & Maintenance, 2) Public Safety, 3) Streetscape & Beautification, 4) District Marketing, 5) Public Realm Programming, and 6) Administration & Advocacy. BID services supplement city services, which, by law, cannot be reduced because of the BID.
Annual BID Budget: The steering committee has voted to approve an assessment cap of $1 million but will start operations with an initial budget of $750k for the first 3 fiscal years.
Annual BID Assessment: To create a formula that equitably assesses the area’s diverse mix of small retail, commercial buildings, development sites, and large affordable and mixed-income residential buildings, the Steering Committee developed an assessment formula based on a combination of 80% Front Footage (FF) and 20% Taxable Value (TV) for all Class A1 (commercial, mixed-used, residential tax lots of 90k square feet or larger) and Class A2 (commercial, mixed-used, residential tax lots of less than 90k square feet) in the district. Class A1 lots are assessed at 80% of the Class A2 rate. Nonprofit-owned (Class C) and government-owned (Class D) properties are exempt and are not assessed.
Front Footage (or Frontage) is the number of linear feet that a tax lot fronts the sidewalk. The assessment formula assigns “primary” and “secondary” corridors, given different service levels required on the principal streets in the district. Primary corridors, with 100% of frontage counted, are 125th, Madison, Park, Lexington, while Secondary corridors, with 50% of frontage counted, are 124th, 126th, 127th, 128th, 3rd Ave, 2nd Ave.
Taxable Valuable (TV) is defined by the NYC Department of Finance (DOF) as the Actual or Transitional Assessed Value (whichever is less) minus any exemptions. For example, incorporating TV in the assessment formula instead of AV lowers the BID assessment on properties with affordable housing incentives in place, given that revenues on these residential units are capped. For those tax lots with a $0 TV, a minimum charge of $250 for Class A1 and $100 for Class A2 will be assessed for the TV portion of the assessment formula.
*The rates listed above are estimates based on a $1 million maximum BID assessment and the current amount of FF and TV in the district – the rates will initially be lower, based on a $750k maximum assessment in the first 3 years, and actual rates in subsequent years will fluctuate depending on the total amount of FF and TV at the time of billing each fiscal year.
To estimate your property’s assessment, you can use the rates above and plug them into the formula below. For assistance in determining what your property would be assessed via the assessment formula, please reach out to Uptown Grand Central to set up a call with a member of the Steering Committee or BID Formation team.
BID Steering Committee: Committee members include co-chairs from the Caribbean Cultural Center African Diaspora Institute and The Durst Organization, as well as representatives from 1775 Houses Tenants Association, Artimus, Blumenfeld Development Group, ddm development, Extell Development, Harlem Berry Beauty Lounge, Harlem Children’s Zone, Harlem Neighborhood Block Association, MADDD Equities, Mt. Sinai, the N.Y. Proton Center, Positive Workforce, The Richman Group, Sisters Caribbean Cuisine, and Zaro’s Family Bakery. Elected official members include Deputy Speaker Diana Ayala, Manhattan Borough President Mark Levine and Mayor Eric Adams (represented by the NYC Department of Small Business Services), as well as Community Board 11.
FREQUENTLY ASKED QUESTIONS (FAQs) ABOUT BIDs
What is a Business Improvement District (BID)? A BID is a public/private partnership where property owners within a defined set of boundaries pay an assessment that is used to provide supplemental services in the district. There are 76 BIDs throughout New York City.
Does East Harlem have a BID? Currently, East Harlem is the only community district in Manhattan without a BID.
What Services do BIDs Provide? The typical core services of BIDs are Sanitation, Public Safety, Marketing and Beautification. The Steering Committee, BID board of directors and stakeholders ultimately determine the district needs and programs. For more information, see the NYC Department of Small Business Services (SBS)’s FY 2022 BID Trends Report.
Who Funds the BID? Property owners pay into the BID using an assessment formula determined by the local stakeholders. Each BID’s assessment formula is unique and reflects the character of the district. Depending on the terms of commercial leases, some property owners pass through all or part of the assessment to commercial tenants. Once the BID is formed, property owners cannot opt out if they are within the boundaries.
What is the BID Formation Process? To form a BID, the Steering Committee must go through an extensive planning, outreach, and legislative process. There will be many opportunities for stakeholders to weigh in on the BID plan, including through surveys, mailings, public meetings, and the legislative process.
Who Manages the BID? BIDs are governed by a locally controlled board of directors elected by BID members – those who own, rent, or live within the BID’s boundaries and register their membership status. Most BIDs are managed by an Executive Director and staff who oversee the day-to-day operations and report to the board.
Does the City already provide these services? We will see a loss of City services if a BID is formed? No. BID services are supplemental to those services provided by city agencies. By law, city services cannot be reduced because of the formation or existence of a BID.
What would be the relationship between the East Harlem 125th Street BID and Uptown Grand Central, the local nonprofit that is facilitating the BID formation effort? Over the last seven years, Uptown Grand Central has raised hundreds of thousands of dollars to clean the streets, underwrite public art, sponsor community events, showcase small businesses, and improve public safety and sanitation. Unfortunately, these funding sources are not reoccurring, and the process of chasing government grants each year is not sustainable. With the financial support of the NYC Department of Small Business Services (SBS) and Deputy Speaker Diana Ayala, Uptown Grand Central is sponsoring the process to create the first-ever Business Improvement District (BID) in East Harlem. Ultimately, Uptown Grand Central and a future BID would be separate nonprofit entities, each with their own boards of directors, which will work together to deliver sustainable services to the district.
PRESS
“East Harlem Vies For BID: Affordable Housing, Safety Upgrades In Plans,” Patch, October 2, 2023.