Bill may cause delay for Roosevelt Business Improvement District

If passed and signed, HB 2440 would require a petition to be signed by more than one half of the owners of every “taxable property unit” within a proposed Business Improvement District during a 120-day period. (Sydnee Schwartz/DD)

The Roosevelt Business Improvement District (BID) may be delayed further if a bill proposed by a state representative becomes law.

HB 2440, sponsored by Rep. Warren Petersen, R-Gilbert, was introduced to the Arizona House of Representatives on Jan. 26 and passed on Feb. 9.

If passed by the Senate and signed by Gov. Doug Ducey, the bill would require a petition to be signed by more than half of the owners of every “taxable property unit” within the proposed BID during a 120-day period. Only after the city received more than 50 percent of those property owners’ approval on the petition could the city move on with passing the BID. Owners of properties that are not subject to taxation are ineligible to sign the petition.

The bill includes a provision that would apply these statutory changes to all BIDs formed after Jan. 1, including the Roosevelt district.

The proposed location of the Roosevelt BID was the only component of the BID approved at the city council meeting on Jan. 20. The BID lies between Seventh Avenue, 250 feet east of Seventh Street and between Fillmore and Moreland streets.

Currently, 50 percent of property owners within a proposed BID must send a formal protest to the city announcing their opposition to the BID’s creation. Those who do not send the city a formal protest are counted as proponents of the BID.

Under 50 percent of property owners submitted a formal protest to the city within the time limit given by Phoenix. However, the city decided to delay the council vote on the BID until a further date due to concerns regarding the amount of protests they received, along with incomplete diagrams that were presented to the City Council, in the Jan. 20 meeting.

Bramley Paulin, a small property owner within the proposed BID, was weary of the process to create the district. Paulin was especially concerned with the miscommunication between the city council and the public.

“We were told that there would be a vote; what we commonly refer to as an ‘up-down ballot’ type of vote and we learned much later on in the process that there is no vote, there is only a form of a protest,” Paulin said.

The bill is also a response to those in opposition of the voting process for the diagram of the BID at the Jan. 20 city council meeting.

Paulin exposed the incomplete nature of the Roosevelt BID diagram at the meeting, which was met with a mix of shock and skepticism.

Gary Birnbaum, an attorney with Dickinson Wright, confirmed the diagram was incomplete and lacking statutory requirements. A continuance was made to reassess the diagram on March 2.

Roosevelt Row Community Development Corporation Vice President, Greg Esser, said the organization’s support for the BID will not be impacted by HB 2440 and that it will be proceeding as if the house bill has no effect.

Esser said the majority of Roosevelt Row business owners are supportive of the installment of the BID and that, regardless of changes in the voting process, supporters will still be present.

“We are at the very beginning steps of the establishment of the enhanced municipal services district for the area,” Esser said. “There is still a tremendous amount of work ahead of us to continue to do.”

Contact the reporter at brianna.bradley@asu.edu.