The Role of Nonprofits in Gentrification: An Examination of BIDs in Omaha, NE

This research presentation examines one type of nonprofit that can impact the gentrification of an area; Business Improvement Districts (BIDs). Gentrifying neighborhoods seek to attract a specific demographic to the area; usually young, middle-class professionals. One way to do this is to provide the amenities that appeal to these individuals which include specialty restaurants, specialty beverages (craft breweries, wine bars, coffee shops), boutiques and luxury housing. Commercial gentrification can occur when this focus on appeasing the tastes of a gentrifying class leads to the displacement of lower value businesses or those that do not satisfy the gentrifiers’ tastes. One urban policy tool that has the potential for fostering this commercial gentrification is a BID, i.e., designated areas that use special tax assessments to develop their district. These districts can focus on economic development through the commercial redevelopment of the district, and by attracting new business to the area. This study seeks to understand if there is a relationship between BIDs and commercial gentrification of areas. This was done through a spatial analysis that examined changes in the number of businesses, the types of businesses and the value of these businesses in areas that have a BID and its surrounding neighborhoods. The findings provide some support that BIDs foster commercial gentrification in their designated areas initially but also suggest that possible longer-term effects are the positive commercial development of the entire area.