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(KNSI) — A new St. Cloud business improvement district cleared the first of two major hurdles Monday night.

City council approved establishment of the zone, which would use a combination of fees paid by commercial property owners and pledged sponsorships for cleaning, security, and other beautification efforts. It would be organized by a third party contractor, Block By Block. Downtown Task Force Chair Greg Windfeldt explains how they work.

“They support 175 different business improvement districts offering these services [across the country]. They’re the preeminent provider of these services. They’ve been doing it for many many years. They give you a turnkey operation, they handle hiring, they handle management.”

Visitors to the BID districts will notice some new faces beginning in 2025. Windfeldt tells KNSI News the plan is to have up to five Block By Block full-time employees on site. In the winter it would be three or four.

A public hearing on October 7th will set the assessment rates for commercial properties within the BID. Tier One will likely consist of the West St. Germain and 5th Avenue corridors. Services would be provided every day. Tier Two is on the east side and would see crews working two to three days a week.

Several prominent organizations and business owners spoke out in favor of the proposal, including Bernick’s, CentraCare, Greater St. Cloud Development Corporation, Visit Greater St. Cloud, St. Cloud State University, and restaurant owner Ray Harrington. They said a vibrant business district is crucial to employee hiring and retention. Many described as a regional asset with benefits to surrounding cities as well.

Two business owners publicly opposed the idea. If 35% of businesses located within the district come out against it, it is automatically vetoed.

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