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NEW BEDFORD — Advocates of a downtown Business Improvement District — which stirred a public protest campaign by entrepreneurs, property owners, and social justice advocates — have withdrawn their proposal. 

In light of questions about whether the plan presented to the City Council in March meets requirements under state law governing these districts, a consultant for the proponents sent a withdrawal letter to the head of the City Council’s Finance Committee on Tuesday. The committee was scheduled on July 22 to hold a third hearing on the plan, which was supported by Mayor Jon Mitchell and some of the biggest names in the local restaurant and business world. 

The two-paragraph letter to At-large Councilor Linda Morad from Marco LiMandri, who had been acting as volunteer consultant to the project, offered no explanation and said the BID advocates would not appear at the committee meeting on Monday.

Opponents of the Business Improvement District gather outside New Bedford City Hall Monday. Credit: Eleonora Bianchi / The New Bedford Light

“The participating property owners within the proposed BID are ceasing their efforts to have the plan and petition adopted by the Finance Committee and full City Council,” LiMandri wrote. 

The plan was to assess property owners an annual fee and establish an organization devoted to cultivating downtown commerce by improving the appearance, staging events, and promoting the area. There are now 10 BIDs in Massachusetts, including three in Boston.

Opponents argued, among other things, that the BID could drive up rents within the district, spilling over into surrounding neighborhoods. Some feared that private interests would encroach on spaces such as Wing’s Court, limiting public access.

Steve Silverstein, a restaurateur and member of the steering committee leading the New Bedford BID effort, said it appeared that city officials were going to find the proposal short of legal requirements, including the number of signatures needed from property owners within the BID.

“We don’t have a final answer on whether the math works or not,” Silverstein said on Wednesday morning, but serious questions had been raised about the BID petition at hearings in April and June. He said he spoke with Morad on Tuesday to tell her that the steering committee wanted to withdraw the petition, and asked how they should proceed. 

“We want to take a cooling period,” said Silverstein, who owns the Black Whale and Cisco in New Bedford and the Sail Loft in South Dartmouth. He said there were no immediate plans to pursue this further. 

“I honestly don’t know if there will be a future attempt or not,” Silverstein said. He added that it was “not likely” that the eight members of the steering committee would want to try again.

“Everyone wants to enjoy the summer and forget about it,” said Silverstein. “It’s just a dead topic today.”

Morad said in an interview on Wednesday that the city officials who were asked last month to review the BID proposal and report back on July 22 were still working on their response, but she said there was “a consensus that the petition didn’t meet the requirements.”

Specifically, she said there were “significant questions” about two main requirements: signatures from owners of property worth more than half the total valuation of the district, and signatures of more than 60% of all owners.

The proposed district was to include an area of about seven square blocks west of the waterfront, between the Zeiterion Performing Arts Center to the south and the SRTA bus station to the north.

BID opponents — who had posted “NO BID IN DNB” signs on downtown shop windows, launched their own petition drive, and staged a rally outside City Hall before the committee hearing last month — welcomed the news.

“I think it’s the right decision,” said Elissa Paquette, owner of the Calico boutique on Union Street and a leader of the opposition. “There were numerous questions that were raised, and it was not in the best interests of the community.”

Jenny Newman-Arruda, who owns TL6 The Gallery on William Street, said in email that her “feelings about the BID withdrawal are optimistic,” but she was concerned about similar efforts that could yet surface.  

“I am looking for legislation to further protect our city,” she said, adding that opponents were still planning a rally outside City Hall on Monday “so that the city government knows we intend to fight any future BID …”

In the end, the most effective move against the BID seemed to emerge quietly, as Rose Miller, a co-owner of commercial downtown properties, did her own analysis of the BID proposal and found it came up well short of approval from 60% of all owners. She passed her information to Morad in May, which contributed to the request in June for a review by the City Solicitor, City Clerk and Assessor.

Email reporter Arthur Hirsch at ahirsch@newbedfordlight.org.