NORTHAMPTON – Several Northampton property owners have filed state and federal lawsuits, claiming the Northampton BID was not only formed in violation of state law, but that the state’s 2012 legislation is unconstitutional.
The suit was brought forth by city Attorney Alan Scheinmann and Iron Horse Entertainment Group Owner Eric Suher in 2009, and challenges the city’s adoption of the petition that established that city’s BID.
The provisions of Mass. General Law Chapter 40O allow for the formation of business improvement districts, but Scheinman states that the law sets out “very specific criteria” for BID petitions.
“The state suits alleges that the Northampton BID petition failed to meet all of the state criteria and should not have been considered or voted upon by the City Council,” he said.
Scheinman added that when Northampton adopted it’s BID, Chapter 400 allowed property owners the right to opt out, which he says 60 percent of all downtown property owners chose to do.
Following the 2012 ammendment forcing business and property owners who fall within a BID’s boundaries to join their city’s organization, Scheinman and his fellow plaintiffs challenged the law with an additional suit.
“Our federal suit challenges the amendment of the state law,” he said. “We say that it’s unconstitutional for the state to force property owners to become members of a private organization against their will.”
Elsewhere in the Commonwealth, Christine Carey, owner of Gringo’s Restaurant in the village of Hyannis, filed a federal lawsuit against that municipality’s BID in July 2013.
Due to the costs of legal representation (Scheinman and his fellow plaintiffs have exceeded $120,000 in legal fees for their two suits), the Hyannis woman attempted to represent herself, but a court said that, since she owned her property in a corporate name and is not herself a lawyer, she could not represent the corporation.
According to Scheinman, Carey chose not to hire legal counsel, which led to the case’s eventual dismissal.
