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Parking and Business Improvement Areas

This page provides an overview of parking and business improvement areas (BIAs and PBIAs) in Washington State, including their legal authority, formation process, use of revenues, and examples.

Overview

A Parking and Business Improvement Area (PBIA)—known by some jurisdictions as simply a Business Improvement Area (BIA)—is a special assessment district that may be established by cities, towns, or counties to support economic development and neighborhood revitalization and facilitate cooperation with local businesses and property owners.

Property owners within a defined area pay a special assessment, with the funds then used to provide management, services, facilities, and programs to the district.

The process to create a PBIA may be initiated either by the city, town, or county legislative body through the 'resolution' method or by local businesses and property owners through the 'petition' method.

PBIAs are authorized by chapter 35.87A RCW. Although PBIAs can sometimes be controversial, the authority to establish a PBIA was upheld in Seattle v. Rogers Clothing for Men, Inc., 114 Wn.2d 213 (1990).

Use of Revenues

The activities in a parking and business improvement area are financed through a special assessment that is imposed on businesses, multifamily residential developments, and mixed-use developments located within the geographic boundaries of the area.

The revenues can be used for any of the purposes outlined in RCW 35.87A.010, including:

  • Acquisition, construction, or maintenance of parking facilities for the benefit of the area;
  • Decoration of public places in the area;
  • Sponsorship or promotion of public events in public places within the area;
  • Furnishing of music in any public place in the area;
  • Providing professional management, planning, and promotion for the area, including management and promotion of retail trade activities;
  • Providing maintenance and security for common public areas; or
  • Providing transportation services for the benefit of the area.

Within those constraints, the city, town, or county legislative body has sole discretion for how the revenues may be used. However, if the PBIA is initiated by petition, the uses must conform to the uses declared in the petition; see RCW 35.87A.100(7).

The legislative body may (optionally) appoint existing advisory bodies or create a new advisory body to make recommendations regarding the use of funds and/or contract with a chamber of commerce or similar business association to administer the operation of the PBIA; see RCW 35.87A.110.

How Is a PBIA Formed?

Local governments can use one of the following methods to establish a PBIA:

  • The "petition" method – The owners of businesses located within the geographic boundaries of the proposed PBIA submit an initiation petition to the legislative authority of the local government having jurisdiction over the area.
  • The "resolution" method – The legislative authority of the city, town, or county (i.e., city or town council or county board of commissioners) passes an initiation resolution to create the PBIA.

Contents of Petition or Resolution

The petition or resolution must contain the information within RCW 35.87A.030, including:

  • A description of the boundaries of the proposed area;
  • The proposed uses and projects to which the proposed special assessment revenues shall be put and total estimated cost; and
  • The estimated rate of levy of special assessment with a proposed breakdown by class of business and multifamily residential or mixed-use project if such classification is to be used.

Statutory Discrepancy Regarding Petition Method: There is an apparent discrepancy in how many business owners and residential operators must sign an initiation petition. RCW 35.87A.010(1) requires the signatures of the owners/operators who would pay 60% of the proposed assessments, while RCW 35.87A.030(3) requires the signatures of the owners/operators who would pay 50% of the proposed assessments. MRSC recommends following the more conservative 60% requirement.

Hearing on Creating a PBIA

The legislative authority of the local government, after receiving a valid initiation petition from the business owners or after passing an initiation resolution, must adopt a resolution of intention to establish a PBIA after a public hearing.

  • During the public hearing process for the establishment of a parking and business improvement area, the legislative authority of the local government may change the geographic boundaries of the proposed area.
  • The legislative authority of the local government must provide notice and give the public at least 15 days, after the proposed boundary change, for the public input.
  • Proceedings shall terminate if protest is made by businesses and residential operators in the proposed area, which would pay a majority of the proposed special assessments.

Ordinance Establishing PBIA

If, following the public hearing, the legislative authority decides to establish the proposed area, it adopts an ordinance to that effect. The ordinance must contain the information identified in RCW 35.87A.100, including:

  • The number, date, and title of the resolution of intention pursuant to which it was adopted;
  • Where and at what time a public hearing took place concerning the formation of such area;
  • The description of the boundaries of such area;
  • A statement that the businesses and multifamily residential or mixed-use projects in the area established by the ordinance shall be subject to the provisions of the special assessments authorized by RCW 35.87A.010;
  • The initial or additional rate or levy of special assessment to be imposed with a breakdown by classification of business and multifamily residential or mixed-use project, if such classification is used;
  • A statement that a parking and business improvement area has been established; and
  • The uses to which the special assessment revenue shall be put.

Examples of PBIAs


Last Modified: April 29, 2026