Dear New Yorkers,
There are 76 Business Improvement Districts (BIDs) throughout New York City. Chances are, you live near one.
A BID is a City-chartered geographical area where local stakeholders oversee and fund the maintenance, improvement, and promotion of a commercial district. BIDs serve commercial areas in every borough, from the Times Square Alliance in Manhattan (where I saw Suffs! on Broadway this past weekend) to the White Plains Road BID in the Bronx (which I visited last year).
Each BID is run by a not-for-profit organization with a Board of Directors elected by its members. Their funding comes primarily from a “special assessment” charged to property owners in the district, which is collected by the NYC Department of Finance and then transferred to the BID. BIDs use those funds to keep the district vibrant, clean, and safe, through enhanced sanitation, security, events, open streets, small business support, marketing, and more.
Our office has conducted financial oversight that finds the vast majority of BIDs complying with their fiscal obligations. Unfortunately, that does not include the 47th Street BID.
Our latest audit reveals deep and disturbing financial mismanagement by the 47th Street BID, which covers the Diamond District. The short of it: The leadership of the 47th Street BID is misusing City property tax assessment for their own benefit, and no amount of polishing can make that look good.
As covered in Hell Gate NYC today, we found that the 47th St BID spent $391K for NYPD security for the Board Chair’s out-of-district office, paid its Executive Director $32.8K for time not worked, and repeatedly flouted laws and policies. Meanwhile, only 3% of the businesses in the district are members of the BID or participate in its activities.
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