Urban Governance and Business Improvement Districts: An Exploratory Analysis of Municipal Management Districts in Houston, Texas, USA

Municipal management districts (MMDs) in Texas are business improvement districts (BIDs) established by the Texas State Legislature as an innovative approach to responding to the needs of commercial centers, and serving as a component of urban governance and administration. In Houston, community-based organizations can apply to create MMDs in their neighborhoods, provided the area is devoted to commercial development and business activities. This analysis examines the governance structures, funding mechanisms, and promotion strategies of MMDs and their impact in the Houston area. The paper begins with a historical overview, followed by a discussion of governing structures and intergovernmental relations, accountability as well as effectiveness issues as it pertains to urban governance. Additionally, the analysis offers some policy implications of deploying MMDs as an innovative tool in economic development and public service delivery, and concludes with recommendations on how to implement successful BIDs.