Gazette story on BID opt outs yesterday

Here's the link.

However, if you have no Gazette log in, I have pasted the story below. Notice that although it says many major businesses are opting out, many are still staying on, so please help us with urging your favorite local businesses to opt out. The more businesses opt out, the more the fund and power base of the Business Improvement District erodes. We also need private citizens to volunteer to speak out against the BID in interviews that MSNBC is doing this week in Northampton. Please e-mail me about this at simon.caty@gmail.com if you would like to help.

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Major businesses won't join improvement district in Northampton
By CHAD CAIN
Staff Writer

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Saturday, April 11, 2009

NORTHAMPTON - Some major downtown businesses - including Faces, State Street Fruit Store, Sylvester's Restaurant and India Palace - won't participate in the controversial new business improvement district.

So far, more than 120 property owners, both commercial and residential, have opted out of the district, though more than half that number are condominium owners who are already exempt from the BID fees, according to records filed at the City Clerk's office. Most of the rest lease their buildings to commercial tenants.

Property owners still have more than a week to decide whether to participate.

In order to opt out, business owners must also own the property. Some longtime merchants are citing economic pressure in declining to join; others say they see no need for a BID.

"We are experiencing severe economic challenges and have decided we will not be able to participate at this time," wrote Peter St. Martin and Maureen McGuinness, owners of Sylvester's Restaurant at 111 Pleasant St.

"When it was originally proposed, I failed to see any merit in it and never signed on," wrote Gary R. Champagne, who owns 71 Pleasant St. that houses Mimmo's Pizza.

The City Council approved the creation of the district, known as a BID, on March 19, which means it exists no matter how many property owners choose to opt out. If more opt out than anticipated, BID leaders will have less money to achieve the ambitious goals set forth in a three-year business plan.

Dan Yacuzzo, chairman of the Downtown Steering Committe that organized the BID effort, could not be reached for comment Friday.

Organizers of the district still have support from many downtown property owners. The district is expected to tax some 200 participating property owners who own about 900 parcels within the district, or 63 percent.

Property owners who oppose the BID have until April 21, to opt out at the City Clerk's office and avoid having to pay the 0.5 percent property tax. Those who don't opt out will become members of the district, while those who do will not be eligible for the services it provides.

Several prominent downtown business owners who own the buildings that house their restaurants and shops are among those who won't be a part of the district, according to records at the City Clerk's office, including Stephen Vogel, who owns Faces at 175 Main St.; and Richard Cooper, who owns several parcels that house his business, State Street Fruit Store, at 51 State St.

Others opting out are Northampton Cooperative Bank at 65 and 67 Main St.; Amrik Singh, who owns India Palace at 26-28 Main St.; Robert and Patricia Normand, who own Normand Bakery at 190-192 Main St.; and William and Marybeth Bergeron, who own the Maplewood Shops at 2 Conz St.

The owners of several other buildings that house the following businesses have also opted out: National Car Rental, Changes Salon, Essentials, United Bank, Urban Exchange, Bruegger's Bagels, Noodles Restaurant and Amanouz Cafe.

Meanwhile, opponents of the BID recently distributed informational packets to all condominium owners and urged them to opt out or face the possibility of future property tax increases should the City Council change its mind and decide to include owner-occupied residential properties in the BID.

"They're exempt now, but that exemption could be taken away in a moment," said Alan Scheinman, one of the opponents who distributed the information.

More than 60 owners filled out the bright orange card provided by BID opponents and submitted it to the City Clerk's office as of Friday, records show.

The BID had plenty of critics who voiced their concerns at a public hearing that stretched over three meetings in January and February. Among the opponents was Eric Suher, the largest property owner within the district.

According to city records, Suher has yet to opt out his properties.

Suher, Scheinman and David Pesuit, another prominent downtown property owner, argued that the district would impose an unneeded tax in bad economic times and questioned the need for a levy to fund services like marketing and maintenance.

They also raised questions about the validity of petition signatures supporting the BID's creation, and accused backers of the idea of manipulating the district boundaries to ensure its passage.

BID backers, meanwhile, agree that the additional tax is needed to provide services the city can't afford and to beautify and "rebrand" downtown. About one-third of the district's nearly $1 million annual budget will pay for a variety of maintenance projects in the district, such as landscaping, while another one-third would fund a marketing plan.

The remaining third would be split among public safety, administrative costs and other special projects.

Organizers are in the process of establishing a 13-member board of directors and searching for an executive director and a manager for its downtown office.

Because it owns 18 properties within the district, the city will be a participant and provide services in lieu of property taxes.