Ordinance to Enact a SID to Be Voted on Tonight

Tonight’s Board of Trustees (BOT) meeting will present the Trustees with an opportunity to further the enactment of a Special Improvement District (SID).

On the docket is Ordinance 2011-25, which calls for the creation of a SID in South Orange.  It will be read for first reading tonight.  If passed, it will be read for second reading and the public will be able to comment at the next BOT meeting.

A committee had met from April of this year until October to determine if a SID should be enacted.  The committee , however, many business owners are .

The ordinance if passed would create a district management corporation.  Some of the powers given to the corporation would include the ability to manage a staff, apply for grants, borrow money from private lenders and government agencies, pay for advertising for the businesses in the district, organize special events in the district and can take control of certain properties. 

The corporation will be controlled by a board of eleven members.  Included will be one trustee, four property owners, four business owners or operators, one resident who is neither a property nor business owner and one member of the Parking Authority.  The Village Administrator or a designee will be an ex officio non-voting member.

The Board of Trustees will decide all the members of the board with the exception of the Parking Authority member.

Any money collected by assessments of business shall be used solely to benefit the district.  Any business owner who doesn’t pay the assessment will be treated as if property taxes weren’t paid.  In addition, the Village will submit quarterly payments to the corporation.

The corporation must be audited every calendar year, no later than the end of April.  In addition, a annual report must be provided to the Village President and Board of Trustees.

The corporation will automatically terminate on December 31, 2016, unless the Board of Trustees decides not to do so.  There is no mention in the ordinance of how that determination will be made and whether business owners will have a say.