Many improvement districts have been formed in recent years as a local business response to the declining municipal budgets and services. They have been effective in providing services that improve the overall viability of a central business district or of retail or specialist nodes resulting in enhanced property values, rentals and sales.
City centres are increasingly required to perform as economic and social destinations, attracting visitors while continuing to meet the needs of the local community. The variations of spatial and social structure of city centres, creates difficulties for traditional town centre organisations to find a sustainable income. Funding by voluntary subscription and grants from various agencies do not provide for long-term planning which is essential to enable town and city centres to incrementally develop and thrive. Thus, urban property owners around the world are creating new forms of private sector management to protect their interests. With the ability to impose levies and provide collective services, Business Improvement Districts (BIDs) or City Improvement Districts (CIDs), supplement publicly funded efforts to clean and secure outdoor spaces.