The 1993 special improvement district that encompassed Flagstaff’s historic downtown was extremely successful. It started with a rebuild of the utilities and streetscapes (sidewalks, street trees and other urban features), transforming the downtown environment into what we see today. The economic result was a significant increase in sales – 400 percent. In the decades since, downtown has become the most visited attraction in Flagstaff and the hub of festivals and events. These 12 blocks generate 15 percent of the City’s BBB Revenues and 7.5 percent of the sales tax.
In the years since, without a management strategy for the district, downtown businesses and property owners have relied on volunteer efforts to enhance the downtown experience. Looking to take downtown to the next level, 63 percent of the downtown property owners have recently requested that a Flagstaff Downtown Business Improvement and Revitalization District be formed. In February 2014, recognizing the special needs of a downtown district, the City Council unanimously approved this self-imposed and self-governed property tax that will be able to fund comprehensive downtown management and planning.
This action creates an efficient mechanism for businesses and property owners to manage improvements and services. The stakeholders envision that future work of the district could include capital repairs to the work of the original special improvement district, parking management, as well as providing services that augment – not replace – base level city services. Ultimately, they seek to keep downtown vibrant, consistently clean, welcoming and attractive; to keep existing businesses and to bring in new businesses; and to enhance property values, sales and occupancies.
Like any other part of a city, downtowns need basic services such as street maintenance, public safety, and other city services. However, successful downtowns have more intense needs, as well as additional or specialized services. Cities and downtowns sometimes struggle with the provision of these services. On one hand, cities are obliged to provide services in an equitable manner, being fair to all taxpayers and all districts of the city. On the other hand, downtowns are often the primary draw of a city and collect a significant portion of the taxes, especially when measured on a per-square-foot basis. The struggle comes from seeking the right balance between these two valid positions.
In looking at downtowns across America and Arizona, the most successful are those that receive such services via an organization, a district, funded by the district itself. The Flagstaff Downtown Business Improvement and Revitalization District is intended to be just that – an equitable way to deliver necessary services. It is also expected to be a mechanism to enhance the partnership with the city.
The district encompasses the area bounded by the alley between Birch and Cherry Streets to the North, Agassiz Street to the East, West Phoenix Avenue to the South, and Humphreys Street to the West. It sunsets in ten years, but the City Council may authorize a 10-year extension. FBN
Karl Eberhard is the community design and redevelopment manager with the City of Flagstaff.
