PETER J. MILLER
WESTFIELD – City business, cultural and municipal officials are now trying to determine how to fill the gap created when the City Council voted earlier this week to dissolve the Westfield Business Improvement District.
The BID Board of Directors met Wednesday afternoon to begin the process of dismantling the BID organization, a complicated procedure because of a myriad of legal and financial issues which need to be addressed under state law.
Massachusetts General Law, Chapter 40-O defines how BIDs are established, operated and, if approved by the local legislative body, which in Westfield is the City Council, dissolved.
Chapter 40-O states that:
“In order to be considered by the local municipal governing body, a petition to dissolve a BID shall contain the signatures of the owners of at least fifty-one percent of the assessed valuation within the district or at least fifty-one percent of the real property owners within the district.”
Members of the Westfield City Council voted 9-2 to dissolve the Westfield Business Improvement District with Councilor James Adams abstaining and Councilor Dave Flaherty absent from Monday night’s meeting. A standing-room only crowd filled the second floor chamber room. (File photo by Frederick Gore)
Following the public hearing, the local municipal governing body may declare the BID dissolved; provided, however, that no BID shall be dissolved until it has satisfied or paid in full all of its outstanding indebtedness, obligations, and liabilities; or until funds are on deposit and available therefore; or until a repayment schedule has been formulated and municipally approved therefore. In addition, the BID shall be prohibited from incurring any new or increased financial obligations.
Any liabilities, either current or future, incurred as a result of action to accomplish the purposes of the BID improvement plan shall not be an obligation of the municipality, but said liabilities shall be paid for entirely from revenue gained from the project or facilities authorized, or from the fees on the properties in the BID.
Julie Cummings, co-owner of the Flying Colors Farm in Florence, displays some of the fresh produce at the Westfield Farmers Market last year. (File photo by Frederick Gore)
Upon the dissolution of a BID, any remaining revenues derived from the sale of assets acquired with fees collected shall be refunded to the property owners in the BID in which fees were charged by applying the same formula used to calculate the fee in the fiscal year in which the BID is dissolved.”
The Westfield BID has a number of contractual obligations because of the summer concert series on the Park Square Green, as well as legal issues pertaining to liens placed on the property owners who are in arrears.
Cassadee Pope, the headliner for last year’s free MusicFest 2013 concert at Park Square, speaks to the audience as she starts her set. Pope was backed by Steve Fekete, left, and (not seen) Jim McGorman. (File photo by Carl E. Hartdegen)
Community Development Director Peter J. Miller Jr. said that discussion Wednesday focused on “winding down” the organization.
“We’re in dissolution mode,” Miller said. “The July concert is all systems go, but the August concert is in flux and a decision has yet to be made. The Green Team will be given a 30 day notice (of termination) which should take them into August.
“We did begin discussion of what form a successor organization will take,” Miller said. “There is still a need for a private, non-profit organization that will be much more voluntary in nature.”
BID Board of Directors Chairman Kevin O’Connor said that he anticipates a smooth transition.
“We’re pretty clean (financially),” O’Connor said. “We’ve been cautious the last couple of months about not assuming any large obligations. We want to transition in a positive way.”
O’Connor said that the BID does has a financial obligation to the July concert, but that the Music Fest Committee will have to determine if the August concert is feasible without BID’s involvement. O’Connor said that the BID will also continue to organize the Farmers’ Market, held every Thursday at the Church of the Atonement on Court Street through the end of the growing season, to give another organization the winter to work on plans for continuing the market.
Miller intends to invite “interested people” to meet in September to initiate a discussion of the “where do we go from here” question.
“I’d like to bring interested people from both sides of the BID issue to the table in mid-September after the vacation season settles down to come up with a strategy,” Miller said. “I’d like to incorporate as many people and ideas as possible, to brainstorm about how we can make (a BID successor organization) happen, what services it should provide, how it should be staffed and how it will be funded.”
The funding issue is what triggered the property owner revolt against BID. When the City created its BID, in 2006, membership was optional. Property owners who “opted” out of membership were not required to pay the BID dues.
The state Legislature voted in 2012 to modify MGL, Chapter 40-O making membership, and dues, mandatory for all properties within the business district. That amendment to the law is what initiated the petition to dissolve the organization, not just in Westfield, but as something being explored in Northampton, as well.
Miller said the City Council vote to dissolve the Westfield BID creates “gaps” in services that have been provided by BID and that how to fill those gaps will be part of the September discussions.
“We can use July and August to review models in other communities,” Miller said. “How do we fill the gaps? (The Community Development Department) will do our best to absorb, at least temporarily, the CDBG (Community Development Block Grant) duties. We’ll bring those responsibilities into our office.”
O’Connor said that he hopes “some other solution, amenable to everyone” is developed through the process Miller intends to foster.
