NYCL AGO 96-9.

• Case Date: March 04, 1996
• Court: New York

New York Attorney General Opinions 1996. AGO 96-9. March 4, 1996 Informal Opinion No. 96-9Richard Gabriele, Esq. Village Attorney No. 96-9 Village of Great Neck Plaza The Chancery 190 Willis Avenue Mineola, New York 11501GENERAL MUNICIPAL LAW ART 19-A, §§ 980, 980-a, 980-b, 980-c, 980-d, 980-e, 980-f, 980-i, 980-l; TOWN LAW § 190, et seq.; L 1989 CH 282.In the absence of a legislative modification of its district plan, a business improvement district may not use funds for any purpose other than those set forth in the district plan.Dear Mr. Gabriele: You ask whether the Village of Great Neck Plaza Business Improvement District (BID) may make a monetary contribution toward the purchase of a gazebo to be located in a public park just outside the BID's geographic boundaries. You state that although the gazebo would not be located inside the BID's boundaries it would nonetheless provide a direct benefit to the district and further the goal of restoring business activity to the area. We find that such a contribution would be in violation of the State law regulating the establishment and operation of BIDs, if it is done without prior legislative modification of the district plan. Chapter 282 of the Laws of 1989, codified at Article 19-A of the General Municipal Law, governs the establishment, operation and financing of BIDs by cities, towns and villages. See, L 1989 Ch 282; General Municipal Law § 980 et seq. The concept and process for the establishment and maintenance of a BID is analogous to the procedure provided in the Town Law for the creation of an improvement or special district for various services such as sewer, water and solid waste disposal. See, Bill Jacket, L 1989 Ch 282; see also, Town Law § 190 et seq.Historically, such districts have been employed because the benefits they produce are totally or almost wholly local in nature, making it inappropriate for the general populace to be taxed for their entire cost. See, Gaynor v Mahron, 268 NY 417 (1935). By authorizing the creation of a BID, the local legislature is attempting to enhance the business community and business environment within the geographic area established by the district plan. See, Bill Jacket, L 1989 Ch 282. The act of establishing and modifying such a district is legislative in character and has its origins in the taxing power of the...