Guest article: PROPOSED DOWNTOWN BID IS ILLEGAL & UNWANTED
The following was written by Doug Peterson a major downtown property owner and RGF board member.
For over a year now, proponents of a so-called “Business Improvement District” (BID) have engaged in a disingenuous campaign trying to enact a Downtown BID that breaks New Mexico law, runs contrary to experience and ignores the opposition of Downtown property owners. I own 74 properties in Downtown Albuquerque and write today to point out several misrepresentations and errors in the proposed BID and expose it as simply another layer of tax sought by local government.
The BID proponents sent a letter dated June 3rd to Downtown property owners. It outlines a “plan” that violates the State of New Mexico Business Improvement District Act [3-63-1 to 3-63-16] (the “Act”) in four ways.
First, the proposed “district” does not comply with 3-63-3 (C) of the Act because less than 3/4 of the area is zoned and used for business or mixed commercial or retail use. Significant portions of the “district” include governmental, not-for profit organizations, parks and residential uses.
Secondly, the June 3rd letter’s proposed petition tries to allocate one vote per property owner, regardless of how many properties within the district that owner owns. The appropriate allocation of votes is one per legal lot or legal commercial condominium unit, as set forth in 3-63-5, 3-63-6(A)(3) and 3-63-7(B) of the Act. This approach by the BID proponents is an intentional attempt to disenfranchise the BID’s opponents and concentrate more votes in a small sect of vocal owners pushing for this folly.
Thirdly, the June 3rd letter states that the Act provides that “in no event shall annual assessments increase by more than five percent (5%)”. I am an attorney, I have reviewed the Act multiple times and nowhere does it say that.
Lastly, the documents mailed with the June 3rd letter claim that the City of Albuquerque and Bernalillo County will both financially contribute to the BID. Section 3-63-5(C) of the Act states “The district benefit fee assessment schedule shall not include: (1) governmentally owned real property;”. Additionally, Section 3-63-13(A) of the Act states “The council … may annually assess a business improvement benefit fee … upon all real property owners and business owners, exclusive of governmentally owned real property.” So, the claim that “the City and County … will pay their ‘Fair Share’” is nonsense.
Albuquerque has tried this before. Twice, I served on the board of the Downtown Action Team which managed the previous Downtown BID. It failed because it did nothing to make Downtown safer and, instead, became another bloated bureaucracy that siphoned private funds to employ friends of the politicians in power at that time. The current BID’s proponents have suggested nothing to demonstrate that this new incarnation would differ. I already pay hundreds of thousands of dollars annually in gross receipts taxes and property taxes for law enforcement that does not enforce the laws. I also spend hundreds of thousands of dollars annually on security infrastructure and personnel Downtown as we struggle with constant trespassing transients, thieves and vandals despite there being Downtown headquarters for both APD and BCSO as well as a rarely-occupied APD substation at Central + 4th.
After receiving the misleading June 3rd letter, I contacted other downtown property owners. The owners of 62 properties then expressed, in writing, their opposition to the proposed BID. Combined with me, that makes 136 private properties whose owners do no want to be a part of this scheme.
I want downtown Albuquerque to thrive. But if this effort to ramrod a BID down the throats of unwilling subjects continues and becomes an ordinance, I will defend my rights.
