CITY CONTRACT
The Fashion Center District Management Association, Inc., the not-for-profit corporate entity which operates the Fashion Center Business Improvement District (FCBID), formally began operations in October 1993. This followed an eighteen-month long process of outreach, approvals and organizing.

The FCBID operates pursuant to special New York City and State business improvement district laws, which allow it to enter into a contract with New York City. Under the essential terms of the contract, the FCBID agrees to provide certain specified and approved services for its defined geographic area in exchange for the City’s collecting a special assessment levied on local properties and turning over the entire amount of these funds to the FCBID.

The FCBID’s first five year contract with the City’s Department of Business Services, which oversees the activities of all BIDs, was completed in 1998. A second contract for four years (due to a City policy change regarding length of contracts) will be completed this June.

In Winter 2002, the FCBID began the process of renewing the contract. Aspects of the renewal process included an extensive review of the FCBID’s activities over the past four years and a satisfaction survey of our constituency. In March, the FCBID received excellent ratings from the Department of Business Services in all categories as well as a recommendation from DBS that our contract be renewed for a period of five years, commencing July 2002.

NYC COMPTROLLER’S AUDIT
Although the FCBID is a private, not-for-profit corporation, organized under the laws of the State of New York, its contractual relationship with the City of New York makes it subject to oversight by various governmental agencies. This past July, the New York City Comptroller’s office began an exhaustive review of the FCBID’s financial transactions and procedures and its operations under the terms of our contract with the City.

We are pleased to report that, following more than six months of research by the audit team, the FCBID was found to be in compliance with the terms of the contract. Copies of the final report, along with the FCBID’s response are available at the FCBID office.