A Business Improvement Area (BIA) is a “made-in-Ontario” innovation that allows local business people and commercial property owners and tenants to join together and, with the support of the municipality, to organize, finance, and carry out physical improvements and promote economic development in their district. Traditionally, a BIA is a body established by a municipality using the specific business improvement area provisions in the Municipal Act, 2001.
The general functions of a BIA are to:
- Oversee the improvement, beautification and maintenance of municipally-owned land, buildings and structures in the area beyond that provided at the expense of the municipality generally.
- Promote the area as a business or shopping area.
These BIA functions are generally funded by a special levy within the boundaries of the BIA. It is paid in most cases by owners of property designated as industrial or commercial, and their tenants. There is no opt out option, reflecting the principle that all who benefit should be required to bear their fair share of the cost of the program. This arrangement provides a secure source of funding for BIA activities.
Because BIAs are regulated by the Municipal Act, municipalities have a significant role in their creation and financial monitoring. A municipal bylaw is required to create a BIA and budgets are submitted to Council for approval. Once a budget is approved, a levy is collected by the municipality and funds are disbursed by the municipality to the board.