Business Improvement Districts (BID's) are areas in cities defined by state and local legislation in which the private sector delivers services for beyond what the City can reasonably be expected to provide. The properties and/or businesses within this legally constituted district pay a special assessment to cover the cost of providing facilities or services for which the district has a particular need. The benefits are that while the city provides some oversight authority the BID's control the purse strings.
BID's operate in 42 states. California has the largest number of BID'S with nearly 200. BID's are present in large, medium, and small communities. They can cover as many as 300 blocks or as few as one. BID's have some level of involvement with many different services including: capital improvement, consumer marketing, economic development, maintenance, parking, transportation, policy advocacy, public space regulation, security, and social services.