Downtown's New Business Improvement District Is Free To Operate In Secret.
By Margaret Regan
THE CITY OF Tucson is giving the Tucson Downtown Alliance
BID a start-up fund of $200,000, repayable without interest in
five years.
The city also will act as an unpaid tax collector for the BID,
adding the new BID assessment fees to the regular property tax
bills of 132 downtown properties each November and May, and handing
over the cash--approximately $412,000 a year --to the BID.
Any downtown property owners who refuse to ante up the new fee
could have a lien slapped on their property, just as though they've
refused to pay their taxes.
Three branches of government--city, state and federal--have agreed
to be "fair share partners" of the BID and pay fees
on their own downtown properties. (Pima County opted out.) These
taxpayer-funded contributions add up to about $266,000, more than
a third of the BID budget.
But if you thought the taxpayers shoveling out all this money
to the BID had any say over its use, you would be wrong.
Given a seal of approval by the Tucson City Council in April,
the BID has accrued quasi-governmental powers of taxing and punishing.
Nevertheless, it's classified as a private, nonprofit corporation.
Taxpayers had no opportunity to elect its board. Its 29 voting
members are volunteers, a self-selected group of downtown "stakeholders"--heavy
on corporate types, real-estate executives, big property owners
and Chamber of Commerce reps, somewhat balanced out by some small-business
owners, arts people, non-profit heads and even a couple of government
officials, such as Mayor George Miller.
"The steering committee members were meeting over the last
couple of years ad hoc," said attorney Thomas Laursen, BID
member and member of the organizing committee. "Sheila (King,
a real-estate broker) and I involved others. As we got closer
to making a presentation to mayor and council, we picked people
suggested to us."
The BID members, whose organizations mostly would benefit from
an increase in downtown real-estate values, will use the money
to spruce up the downtown, market it and hire uniformed street
"ambassadors" to patrol it, and formulate long-range
plans. But though much of their money comes from the taxpayers,
taxpayers have no legal right to attend their meetings. Nor has
the BID advertised the time and place of the meetings.
"We are not bound by the open meeting laws," said Laursen.
"We can do this however we want. (However) as policy, it
makes sense to follow the spirit of the law."
But the BID did not follow the spirit of the open-meeting law
at its July 15 session. The big item on the agenda was the hiring
of a new executive director. The candidacy of Carol Carpenter,
a city staffer, had already sparked some criticism. (See accompanying
story.) Three citizens attending the meeting--Julia Latané
and James Graham, owners of the Grill on Congress, and David Wright,
their partner in the proposed Museum of Contemporary Art--were
asked to leave so BID members could discuss the hiring privately.
The open-meeting law allows such private discussions of personnel
matters, and the three left. But the law forbids voting in secret.
The BID members went ahead and voted on the hiring behind closed
doors. When the BID members opened the doors again to the press
and public, Carpenter already had the job.
Asked why the vote was taken during the private period, called
an executive session, Laursen replied, "There was no conscious
plan to do it. One thing followed another. It's hard to run a
meeting."
Under the state's open-meeting laws, which were designed to shed
light on formerly secret governmental decision-making, any vote
taken during executive session would be null and void. But Tobin
Rosen, a staff attorney in the City Attorney's Office, agreed
with Laursen that "technically, they are not subject to the
public-meeting law.... They are not a city organization."
Rosen noted that other private groups, such as the Tucson Museum
of Art, get city money and still operate as private entities with
a right to hold private meetings. But at least one city council
member argues that the BID is an entirely different animal from
an art museum.
"They (the BID) have lots of public money," said Councilman
Steve Leal, who had proposed that the BID board be required to
hold open elections. "The subject is downtown. The downtown
is supposed to be everybody's neighborhood. To operate in secret
is wrong. Both these reasons require that the affairs of this
entity should be conducted in public."
Up in Phoenix, a group similar to the BID has been operating
since 1990 as the Downtown Phoenix Partnership. They're not bound
by the public-meeting laws either, said executive assistant Lois
Miller, but, "We do conduct our meetings as such, as though
we were covered."
The same goes for the five-year-old Downtown Tempe Community,
another BID variant. "Even though we are a private nonprofit,
our meetings are open and all our records are open," said
marketing director Theresa Striegel.
And while the Phoenix board members elect other board members,
the Tempe model is more democratic. Any district "stakeholder"
large or small, from a resident to an ice-cream clerk to a corporate
exec, has the right to come to the annual meeting and vote for
candidates to the board, Striegel said.
Several board members in the Tucson BID pleaded for understanding
as the new group makes its way. Many of the business-oriented
members aren't used to public scrutiny, said board member Sarah
Clements, but, "As the group goes forward it's going to have
to make sure it realizes it has a public responsibility."
Added board member Larry Paul, "It's sort of a start-up
business. It will take us an hour or two to get up to speed. We're
trying to get things done."
The next BID meeting is scheduled for 7:30 a.m., Tuesday, August
18, in the downstairs meeting room of the Temple of Music and
Art, 330 S. Scott Ave. Subsequent meetings are scheduled at the
same time and place on September 15 and October 20.
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