The King Street Business District has budgeted $1.1M for the shopping, dining district. News

Shoppers on King Street will soon see what new fees local businesses are charging.

The King Street Business Improvement District approved its first budget April 6, which includes $1.1 million worth of investments for the popular destination for tourists and locals.

The district, known as the BID, imposes a fee on all businesses between King Broad and Line streets. It is managed by the Charleston Downtown Alliance, a group of business owners.

For a $1 million commercial property assessed at 6 percent under South Carolina law, the new fee would be $678 per year.

Funds raised by the association and spent within the scope of the BID are used to add new services along the route or to expand services provided by the City of Charleston. One example is increasing the frequency of street cleaning beyond the city’s current schedule.

The bid was officially approved by the city council in December 2021. Now that the alliance has collected its 2022 payments, it can move forward with its priority projects.

One of these priorities is establishing an “ambassador” program. Workers paid by BID funds cross the streets, help pick up litter, give tourist directions and interact with homeless people.

The agency staffs the Block by Block program and manages the staffing of other BID districts across the United States. According to the company’s website, they are trained to perform various responsibilities and “make daily adjustments to services to provide exactly what is needed for the public space that day.”

The auction has contracted approximately $430,000 block by block, and five ambassadors are being trained. Street goers should start seeing them in the next few weeks.

Doug Warner of Explore Charleston, who helped establish the BID, said the ambassadors serve as eyes and ears on the street, but they don’t have the same level of authority as the Charleston Police Department.

“These people walking the streets have no police powers,” he said. “This was something the city council was determined to make sure we understood.”

That was the concern raised when the City Council first approved the creation of the business district in December 2021.

Jessica Nichols, owner of King Street boutique J. Stark, said she’s wary of the extra security idea.

In her comments to the council’s public meeting, she said, “When policing of people who do little harm is blocked by rich and white business owners, it starts to look terrible.”

Priorities in the BID budget include street beautification such as hanging installations and public art, building a brand and website and hosting events.

About $730,000 of the bid budget comes from fees levied on street businesses. The rest can come from fundraising efforts and next year’s city budget.

Although the city has not made any formal commitment to provide financial support to the district, officials have agreed to allocate two parking spaces for the vehicles used by the ambassadors. Proceeds from donating the use of those spaces are expected to total about $4,000. No other funding was provided by the city.

As BID funding continues to grow, members of the Downtown Alliance say the next priority is hosting street events. Those could take up a large portion of the business district’s budget next year and beyond, Warner said.

The recent Charleston Wine + Food Street Fest served as inspiration for the alliance, and Warner said street-goers can expect similar experiences with BID funding.

Bidders had to raise support from property owners representing more than 50 percent of the district’s property value. At the time of approval by City Council, the King Street BID had written support from owners representing 55 percent of the street’s property value, a total of 101 owners. That number rose to 65 percent in the months following the auction’s approval.

Opponents of the auction have expressed concern that it will drive up property values, particularly among those who rent rather than own space, as well as small businesses.

Warner said the auction aims to maintain a mix of national and local businesses on the street.

Reach out Emma Whalen. at 843-708-5837. Follow her on Twitter @_emma_whalen.