Council members propose resolution to ‘reset’ relationship with business improvement districts; public speakers back BIDs

Council discussion and public comment Feb. 10 focused on a proposed council resolution aimed at clarifying and improving the city’s working relationship with four Business Improvement Districts (BIDs) that levy assessments and fund downtown programming.

Council member Felton, who introduced the resolution with Council member Brewster, said the measure was intended as a direction‑setting statement of values to “reset” culture and improve collaboration after BID volunteers reported strained relationships with staff. Felton framed the resolution as largely routine: updating operating plans, creating an operational handbook, offering staff services that state statute requires and improving communication between the city and BID volunteers.

The resolution drew two lines of concern: BID leaders asked that they retain the ability to hire outside legal counsel in limited circumstances, and city staff — via a memorandum in the council packet — raised legal questions about language in the draft. The city attorney provided a draft substitute resolution that staff said would preserve the majority of the practical requests while removing provisions city legal considered beyond the council’s authority.

At public comment, multiple BID leaders, business owners and community representatives urged council to support the original resolution or otherwise take action to repair relations between the city and the BID boards. Jeff Frawley of Water Street BID and others said goodwill and collaboration matter for downtown vitality and criticized the tone of the city attorney memo; the deputy city attorney and council president later stressed that staff and council must act within state law and administrative rules.

Several speakers underlined the economic role BIDs play. Crystal Halverson, owner’s representative for Menomonie Market Co‑op, noted her BID assessment and volunteer service in downtown improvements. Others, including Terry Weld and long‑term downtown business owners, described the BID system as instrumental in reviving Eau Claire’s downtown over the past decades and urged patience and renewed cooperation.

Council members and staff debated process and legal constraints. Some council members said resolutions are an appropriate tool for setting direction; staff cautioned that the council cannot direct staff in a way that conflicts with statutory responsibilities. The city attorney said a substitute draft could address legal concerns while keeping the majority of operational recommendations.

The matter was set for council consideration on the next agenda; public speakers urged council to adopt language that recognizes BID volunteer investment and restores collaborative relationships without exceeding legal limits.