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Getting the Max for the Tax: An Examination of BID Performance Measures

Abstract This article explores the issue of BID performance measures with the goal of enhancing their capacity as diagnostic and prescriptive tools. We examine the different kinds of performance measures in the context of BID designation and evaluation, paying attention to the needs of the varied stakeholders invested in BID performance. We develop a typology of the different kinds of indicators that are most appropriate for the mission and land uses within BIDs and discuss ways to institutionalize the use of these indicators. This research is based on survey data and case studies of the City of Chicago's Special Services Areas (SSAs) as well as an extension of theory in public administration on the appropriate use of performance measurements. We find that Chicago SSAs rarely evaluate their performance in a systematic manner. When they are required to do so, they tend to rely on subjective appraisals by stakeholders with conflicts of interest, confuse outputs with outcomes, and assume that renewal applications are accurate proxies of stakeholder satisfaction.