If I have learned anything about L.A. BIDs in my many years of deeply immersive anti-BID scholarship, it’s that they are run by a bunch of freaking short-sighted intellectually impaired amateurish morons, made mean and stupid by their wealth, who hire mean and stupid people to do their mean and stupid bidding and that the City government of Los Angeles, which thrives and grows fat on mean and short-sighted zillionaire stupidity, likes it this way.
After I spent some time looking into the Central Avenue Historic BID in the context of potential political goals for the post-approval Venice Beach BID, I thought it would be interesting to learn more about this newborn BID.1 The meetings are held at CD9’s district office at 4301 S. Central,2 so on a very pleasant evening last Thursday, I took the 210 out of Hollywood to MLK and Crenshaw, where I boarded the 705 to Central and Vernon from whence a couple blocks North on Central to watch the Board of Directors conduct their business.3 The meeting was scheduled to start at 5:30, but that evidently included some preliminaries, because when I got there at about 10 to 64 they hadn’t started yet.
Anyway, take a look at the agenda. You can see that they’re talking about the kind of things that one would expect BIDs to talk about from, e.g., reading the Wikipedia page on BIDs,5 like branding and marketing, cleaning the streets, having Halloween events, and so on. And watch this short clip of the meeting.6 That’s Sherri Franklin of the Urban Design Center, the BID consultant, who also seems to be functioning as executive director, talking about some kind of partnership the BID’s working on with Hollywood Community Housing Corporation involving affordable housing at the corner of Central and Jefferson.7 And then you can watch here as BID security director Allan Muhammad introduces his employees, and then they proceed to hand out sample Halloween bags to everyone in the room. They didn’t once discuss custodial arrests, handcuffs, social engineering, mass relocations, self-aggrandizing 5150 holds, or any of the other hard-edged tactics of which the City’s older and ever so much more dangerous BIDs are so enamored. And even though I only got 15 minutes on tape of the 90 minutes I was there8 they didn’t really have anything objectionable to say even during the parts of the meeting I didn’t record. They talked about parking, they talked about their phone bills, they talked about how it was hard for the BID to patronize local businesses because they mostly only accepted cash.9
Because it will be approved. We know that. But we also know that Mike Bonin might be susceptible to political pressure. He even thought about moving the hearing date, presumably in response to political pressure and cogent criticism. Maybe the same tactics can help improve what’s presently looking like it’ll be yet another version of the worst that this City’s BIDs in Hollywood and Downtown have to offer. So here are some things which might be attainable politically and which might help mitigate some of the worst excesses to which BIDs are prone.
First of all, maybe you remember the recent tumult over the Arts District BID. If not, there’s a1 version of the story here. In short, some property owners got a judge to dissolve the BID, there was a big fuss about getting a new BID formed, and in order to settle the controversy, José Huizar stepped in and brokered a compromise involving the composition of the Board of Directors. As the L.A. Business Journal put it:
City Councilman José Huizar, whose district includes the neighborhood, on Tuesday announced that the Arts District Community Council Los Angeles has agreed to drop its application to create a BID and support an application sponsored by a group called Arts District Los Angeles. The ADLA, in turn, agreed to give Community Council representatives at least four seats on an expanded 23-member board. In addition, the area’s homeowners association will get three additional seats on the board.
If Huizar can negotiate seats on the Arts District BID Board, Mike Bonin can certainly change the composition of the Board of Directors of the Venice Beach BID if he wants to.2 The composition of the Board is a political matter which can be influenced by political tactics. The Arts District dissenters got four seats out of 23, not enough to change things, although by no means an empty victory. A vote, four votes, is not nothing in such a closed-off political entity. Another moral is that the homeowners association got seats on the Board. That is, Huizar got people who live in the BID a voice on the Board. This is also not trivial.
Miranda Paster is the director of the LA City Clerk’s Neighborhood and Business Improvement Division (NABID), which administers the City’s BID program. Her job description (updated in February 2014) includes among her duties presenting at the conferences of the International Downtown Association:3…deliver formal presentations, including analyses and recommendations, to the City Council and its Committees and International Downtown Association Conferences…
The story begins in 2011,4 when BIDs gave Miranda Paster $3000 to attend the IDA’s 2011 annual conference in Charlotte, North Carolina. Take a look at this collection of emails and records of payments from 2011. These show that less than two weeks before the conference started, Paster was scrambling to get the money together to attend, but that she already had a commitment from the BIDs to pay $3000 (a log of the actual payments is included there). It seems that in 2011, Paster’s attendance at this conference was a new thing for her, as the financing was arranged in such a hurry. I’m guessing that at this point presenting at this conference was not yet part of Paster’s official duties. It’s a rare bureaucracy indeed which will not pay its employees’ expenses to carry out their duties. So the BIDs paid, buying at least a sense of obligation.
Roughly, the process for creating a new BID goes like this: Some property owners hire a consultant who collects petitions in favor of the BID. When petitions adding up to more than 50% of the total assessments in the proposed district are on hand, they’re submitted to the City Clerk, who then takes the matter to City Council.9 One interesting aspect of this is that City-owned parcels in the proposed district are voted in exactly the same way that privately owned parcels are. That the City always votes in favor of BIDs is well-known, although see below for an episode where the City actually opposed a BID proposal.10 In fact, part of the consultant’s job seems to be to gerrymander as much City-owned property into the BID as possible so as to minimize the requisite number of agreeable private owners. The City Clerk, currently Holly Wolcott, is somehow authorized to sign petitions on the City’s behalf for City-owned parcels.
The city of Los Angeles has been holding public hearings to gather input on possible frameworks for legalizing street vending. Yesterday we began discussing the June 11 meeting in Van Nuys by considering Kerry Morrison’s statement. Today we move on to John Tronson. You can listen to his statement here or after the break, where a transcription is also available. Audio of the entire meeting is available here. We’re just going to look at John’s statement one piece at a time.
Good evening. My name is John Tronson. I’m a member of the Hollywood Entertainment District, which is a property-owner based business improvement district in Hollywood.
All these people start off by saying something true. It’s meant to lull your suspicions. Don’t let it.
We spend three and a half million dollars a year of our own money to clean the streets of Hollywood, to trim the trees, to provide additional public safety and paint out graffiti.
The way a property-based BID works is this: If the majority of the property owners in a district agree, the city adds an extra assessment to their property tax, keeps some part of the money raised for administrative overhead, and distributes the rest back to the BID to spend on specific kinds of services in the district. There are two important points to remember. First, a BID can be established over the objection of individual property owners. Only a majority need approve. Second, once a BID is established, the assessment is no longer voluntary. It is compulsory. Non-payment is punishable by the full range of state action2 up to and including violent confiscation of property. In other words, this assessment, once paid, is a tax. After all, income tax might be considered voluntary in this same sense. The Sixteenth Amendment to the Constitution was put in place by elected representatives, so in a way, the people to be taxed consented to the taxation. But now that it’s in place, income tax is no longer voluntary, just as BID assessments are no longer voluntary. This is consistent with the standard definition:
Tax: A compulsory contribution to the support of government, levied on persons, property, income, commodities, transactions, etc., now at fixed rates, mostly proportional to the amount on which the contribution is levied.3
Now, everyone who pays taxes has, at one point or another, thought of that money as still their own. But really, it’s not. Try telling a cop not to give you a ticket because you pay their salary with your “own money.” Try telling a professor at UCLA they have to give your kid an A+ because it’s your “own money” that supports them. It’s a losing argument. Taxes, once paid, belong to the public, not to the people who paid them. BID assessments are taxes. BID assessments are public money. Now, as to John’s statement about what they do with that public money, it’s true as far as it goes. That’s not all they spend the money on, but they do spend it on that. We won’t argue. Onward! Continue reading John Tronson in Van Nuys: Money doesn’t talk, it swears1→
Business Improvement Districts in Los Angeles — Satan, Your Kingdom Must Come Down!