What’s going on with the 47th Street BID?

You can polish a diamond. But not financial mismanagement. 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. The Diamond District at 47th Street and Fifth Avenue. What makes these findings especially frustrating? Leadership of the 47th Street BID has long been aware that they need to change their behavior. A previous Comptroller’s [audit in 2019]( found huge weaknesses in the BID’s finances and operations. Years have passed, and yet the BID failed to correct its practices. Given the BID’s repeated non-compliance, my office recommends that the City’s Department of Small Business Services work with the NYC Department of Finance to place the 47th Street BID’s tax assessment funding in escrow until the BID makes changes in its leadership, by-laws, and policies to address ongoing mismanagement. TL;DR: The City should withhold future funds from the 47th Street BID until fundamental changes are made. Look, the Diamond District, like all commercial districts in neighborhoods across our city, is an important thread in the vibrant fabric of New York. Keeping it safe, clean, and bustling is good for businesses, good for shoppers, good for workers, and good for New York City. But that depends on the 47th Street BID cleaning up its act. You can polish a diamond, but not financial mismanagement. Thanks, Brad [Facebook]( [Twitter]( [Link]( [New York City Comptroller's Office]( Copyright © 2024 New York City Comptroller's Office, All rights reserved. Our mailing address is: 1 Centre Street, New York, NY 10007 Want to change how you receive these emails? You can [update your preferences]( or [unsubscribe from this list](.