Special Improvement Districts (SIDs) are self-help ventures organized by property owners and local governments to identify and develop defined areas of cities where a more successful and profitable business climate is needed. The managing agent for these districts plans for and executes business retention activities, improves security and maintenance, brings about revitalization and value enhancement, and undertakes marketing and development in downtown areas.

SIDs are capitalized by the pool of property owners within the identified district, who self-impose an additional real estate tax (e.g., a few cents per $100 of assessed value) on properties in the SID. At least 51 percent of owners in the district must approve the added tax before the district can be established. Additional funding is derived from annual city contributions and from private sponsorships and grants.

SIDs, also referred to as Business Improvement Districts, are typically found in the downtowns or central business districts of our large and small cities. They are legislated by the state or provincial government -- more than 1,000 exist today in the U.S. and Canada - and are enacted by municipal ordinance.

The law permits property owners and businesses in the specified district to organize and assess themselves to pay for the services that they determine. SIDs provide specialized services to advance business revitalization in downtowns. These services are designed to complement rather than replace municipal government services. The assessments are collected by the local municipality and turned over to the SID. Operation of a SID is governed by a District Plan and by a nonprofit District Management Corporation or a municipal commission.

In New Brunswick, City Market is the district management corporation, which is governed by a Board of Directors comprised of property owners, businesses, merchants, and government officials. All decisions relating to the operation of the SID including budgets, annual assessments, and management of the specialized services, are made by New Brunswick City Market, Inc. Currently, City Market is managed by New Brunswick Development Corporation.

There are more than twenty-seven Special Improvement Districts in New Jersey. The first six were established during a three-year period from 1985-1988: Cranford, Elizabeth, Englewood, New Brunswick, Somerville, and Trenton. As one of the original six SIDS, New Brunswick City Market, Inc., has made great strides in the revitalization of the city.

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