Downtown BID finalizes nonprofit formation steps, clears assessment banking documents

The Downtown Business Improvement District in Laredo on Nov. 18 confirmed that the group’s nonprofit has received federal 501(c)(3) recognition and moved to complete administrative steps needed to start collecting assessment revenue.

Board members said the organization will begin filling nonprofit board seats in the coming weeks and pursue grant-writing and fundraising from state, federal and private foundations to support downtown projects. The board described model allocations tied to the assessment in its plan: 75% for direct services, 28% for operational headcount and 5% for placemaking, branding and marketing. The board said those percentages are flexible and may be adjusted over time.

The board also approved paperwork to set up assessment collection with Utility Tax Services and to open an account at Stellar Bank that will receive assessment deposits and distribute funds to implement the BID plan. Board members agreed to collect additional signatures from absent members and to transmit the signed documents to the tax-service provider so fund collection can begin.

Board members stressed that no assessment funds will be available until administrative steps — including the bank account and signatory requirements — are complete. Several speakers emphasized the BID has limited staff and will rely on partnerships and volunteer time while it scales up operations.

The meeting record shows voice votes were used to approve the minutes from the Oct. 28 meeting, to authorize the bank/collection documents, and to carry other procedural items; no roll-call tallies were recorded in the transcript.

Next steps: the BID will collect outstanding signatures and post governing documents and the adopted plan on its website for public review.