Central Avenue Neighborhood Improvement District

The Central Avenue Neighborhood Improvement District (SID) in Jersey City is an example of good program corrupted by politics. Under state Law, it collects 3% sales tax instead of 6%.

The first SID was started in the Heights section of Jersey City.  The "Momma and Poppa" stores had a difficult time competing with the malls, especially since Newport received many subsidizes since its inception.  But the 3% sales covered any store in Jersey City including the malls.

The SID was started through the vigorously hard work of merchant, James Dimoplon.   Later he became the chief spokesman for its dismantling it.

In the beginning, the city plan to issue licenses to all businesses as a way of generating revenue for the SID.  The city never followed through licenses because the city said it would be a bookkeeping nightmare.  The city claimed businesses fail and open frequently causing chaos with licensing.

Instead of the license fee, the city imposed a special assessment on commercial property owners in the SID. This is additional to their regular taxes.

The city adopted ordinance 92-087 on June 24, 1992.  Section E stated that SID shall be dissolved in two years unless the assessed property owners continue the Corporation.  Those words became James Dimoplon's battle cry.

In theory, the property owners could pass on the increase to businesses but the owners were also competing against empty storefronts so many absorbed this tax.

Money poured into the SID program, including funds with matching grants. James Dimoplon and other property owners were upset how politics became part of the SID program.

In 1994,  the first election on whether to continue the SID happened.   The city allowed the SID to violate its own ordinance.  It gave the right to vote to businesses not just to property owners.  The businesses were thrilled to have extra money poured, it was like "found money".  Some property owners rented to more than one business.  This meant the business owners outnumbers property owners.   Why would a business owner who is not a property owner vote to remove SID?   After all, the business is receiving extra money and he/she is not paying a license fee.

The SID board went to businesses owners who were too busy to vote and collected "'paper ballots" that were not notarize.  Obviously, when paper ballots are collected by board members, some who are receiving a salary- the election always declared that the SID merchants wanted to continue the program.    Besides, the city needs the SID to give legitimacy to the Economic Development Corporation (EDC) which employees at its head, Stuart Koperweis, a strong Schundler supporter.