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Subjects › Economic Development › Parking and Business Improvement Areas
Updated 10/2011

Parking and Business Improvement Areas

Contents

What is a Parking and Business Improvement Area (PBIA)?

A parking and business improvement area (PBIA) is designed to aid general economic development and to facilitate merchant and business cooperation. A PBIA is a local self-help funding mechanism that allows businesses and property owners within a defined area to establish a special assessment district. Funds raised can be used to provide management, services, facilities, and programs to the district. In Washington PBIAs are authorized by statute.

Statutory Authorization

  • Ch. 35.87A RCW authorizes counties, cities, and towns to establish, after a petition submitted by businesses within the area, or by resolution adopted by the legislative body, a parking and business improvement area for the purposes set forth in RCW 35.87A.010.
  • Establishment of business improvement areas in some Washington cities has been controversial. However, the authority of a city to utilize the statutory authority in Ch. 35.87A RCW to establish a PBIA has been upheld in Seattle v. Rogers Clothing for Men, Inc., 114 Wn.2d 213 (1990). In a second case involving PBIAs, the court did not question the authority of a city to establish a PBIA but invalidated the assessment method utilized by the city to assess businesses. See Bellevue Plaza v. Bellevue, 121 Wn.2d 397 (1993).

What Can a Parking and Business Improvement Area Do?

The activities in a parking and business improvement area are financed through a special assessment that is imposed on businesses, multifamily residential developments, and mixed-use developments located within the geographic boundaries of the area. The assessments can be used to finance: Construction, acquisition, or maintenance of parking facilities in the area; decoration of public areas; promotion of public events in public places in the area; furnishing of music in any public place in the area; provision of maintenance and security of common public areas; or management, planning, and promotion of the area, including the promotion of retail trade activities in the area.

How Is a PBIA Formed?

Initiative or Resolution

A parking and business improvement area may be established by either having:

  • The owners of property located within the geographic boundaries of the proposed parking and business improvement submit an initiation petition to the legislative authority of the local government having jurisdiction over the area; or
  • The legislative authority of the local government passes an initiation resolution to create the parking and business improvement area.

Contents of Initiative or Resolution for PBIA

  • A description of the boundaries of the proposed area;
  • The proposed uses and projects to which the proposed special assessment revenues shall be put and total estimated cost; and
  • The estimated rate of levy of special assessment with a proposed breakdown by class of business and multifamily residential or mixed-use project if such classification is to be used.
  • Under RCW 35.87A.010(1), the petition must be signed by the operators responsible for 60 percent of the assessments by businesses and multifamily residential or mixed-use projects within the area. Note: There is an apparent discrepancy/inconsistency between the 60 percent requirement for petitions under RCW 35.87A.010(1) and the 50 percent requirement under RCW 35.87A.030. MRSC legal consultants advise that the 60 percent requirement in RCW 35.87A.010 be used because that requirement is contained within the more recently amended section and is arguably in the more specific provision. Since there is some uncertainty in trying to reconcile these statutory provisions, the safer course is to go with the higher 60 percent threshold to avoid a challenge.

Hearing on Creating a PBIA

The legislative authority of the local government, after receiving a valid initiation petition from the property owners or after passage of an initiation resolution, must adopt a resolution of intention to establish a parking and business improvement area.

  • During the public hearing process for the establishment of a parking and business improvement area, the legislative authority of the local government may change the geographic boundaries of the proposed area.
  • The legislative authority of the local government must provide notice and give the public at least 15 days, after the proposed boundary change, for the public input.
  • Proceedings shall terminate if protest is made by businesses and residential operators in the proposed area which would pay a majority of the proposed special assessments.

Ordinance Establishing PBIA

If the legislative authority, following the hearing, decides to establish the proposed area, it adopts an ordinance to that effect. The ordinance is to contain the following information:

  • The number, date and title of the resolution of intention pursuant to which it was adopted;
  • The time and place the hearing was held concerning the formation of such area;
  • The description of the boundaries of such area;
  • A statement that the businesses and multifamily residential or mixed-use projects in the area established by the ordinance shall be subject to the provisions of the special assessments authorized by RCW 35.87A.010;
  • The initial or additional rate or levy of special assessment to be imposed with a breakdown by classification of business and multifamily residential or mixed-use project, if such classification is used; and
  • A statement that a parking and business improvement area has been established.
  • The uses to which the special assessment revenue shall be put. Uses must conform to the uses as declared in the initiation petition presented pursuant to RCW 35.87A.030.

Administration of PBIA

  • The legislative authority has sole discretion as to how the revenue derived from the special assessments is to be used.
  • The legislative authority may appoint existing advisory boards or commissions to make recommendations as to its use, or a new advisory board or commission may be created for the purpose
  • The legislative authority may contract with a chamber of commerce or other similar business association operating primarily within the boundaries of the legislative authority to administer the operation of a parking and business improvement area,.

Examples of PBIAs from Washington Jurisdictions

General Reference