Business Improvement District (BIDs)
Result of the BID.
The result was announced by Chris Elliott, Chief Executive Warwick District Council on Monday 31st March.
- The total number of votes cast in the ballot was 192.
- The Aggregate ratable value of each hereditament in respect of which a person voted was £7,810,400.
- The total number of votes cast in favour of the proposed BID for Royal Leamington Spa was 117 (60.9%).
- The aggregate rateable value in favour was £4,894,800 (62.7%).
The proposal was therefore approved. More details will follow.
How is a Business Improvement District funded?
A Business Improvement District is a defined area where businesses are invited to come together to decide how to improve their trading environment. Through consultation, a range of projects and services are established and agreed, before a Business Plan is prepared. The Business Plan is then presented to all businesses within the proposed BID area and a vote will then take place to ensure that a majority of businesses agree to the proposals.
A Business Improvement District Scheme in Royal Leamington Spa would be a new way of managing the Town Centre and Old Town. Voted for locally, important issues can be addressed with targeted solutions. Business led with real control and accountability; all the money raised is spent on initiatives which businesses have highlighted. It is a transparent, flexible and fair process that will have been developed following extensive consultation and sensible business planning. Legally binding it will provide practical services to ensure a clean, attractive, safe and well-maintained environment.
Helen Smith has been appointed as the project co-ordinator for BID Leamington. The BID vote will take place in 2008, following a programme of consultation with all local business proprietors or managers to establish which services and initiatives are likely to have the most positive impact on the trading environment.
Every business within the BID study area receives a Newsletter. If you would like more information about Leamington’s proposed Business Improvement District scheme, or would like to arrange a meeting with Helen to discuss any matter relating to the BID then please call her on 01926 833917 or email info@bidleamington.com.
A BID provides the mechanism to secure sustainable funding to deliver services and improvements to address local problems. It will only be used to deliver additional services/capital improvements that the business community has identified as necessary to add value to the trading environment.
What are the benefits?
- BIDs provide sustainable funding for an agreed period of time.
- There is no “freeloading” - those who vote have a voice, pay the levy and will benefit.
- It is a transparent, clear and democratic process.
- It allows self-management and self-funding with no red tape or bureaucracy.
- It provides practical services to ensure a clean, safe, well marketed, attractive environment.
- In the long term it will deliver significant economic and quality of life benefits.
How long does a bid last?
All BIDs will operate on a sunset clause, maximum of five years. The BID will then require a re-affirmation of support through the BID voting system before continuing.
Does a BID have to be in a town centre?
A BID can be established in any place where additional services to those which the Local Authority provides are desired by the local business community. BIDs could be located in town centres, in one or two particular streets or a larger area. Equally they could be located in Industrial estates, business parks or anywhere else that business sees a need.
Are additional funding sources allowed?
Alongside the additional levy that ratepayers will pay as part of a BID, the legislation allows voluntary contributions to the BID to be made by any billing authority, County Council or Parish Council. It also allows contributions to be made by property owners and other organisations.
Who has to pay?
The type of non-domestic ratepayer in the BID area that will pay the BID levy must be specified in the proposal that is voted on. All the identified ratepayers will then be liable to pay the BID levy should the defined ratepayers vote in
favour.
Who collects the levy?
The agreed additional BID levy must be paid by the ratepayers to the billing authority concerned.
How long can a BID operate?
The specified period for which the ratepayers must pay the additional levy i.e. the duration of the BID itself may be specified in the initial BID proposal. This period cannot exceed five years but may be any period of time under five years.
Who gets to vote?
All ratepayers who will be liable to pay the additional BID levy will have a vote in the ballot.
What criteria must be met to secure a successful ballot?
A successful ballot will have to meet two tests. Firstly a simple majority of those voting in the ballot must vote in favour. Secondly, those voting in favour must represent a majority by rateable value of the hereditaments (rateable properties) of those voting.
Who administrates the vote?
The local authority will be responsible for calculating whether or not the vote has been successful and will have to announce the result of the ballot publicly. In areas where the BID spans two or more local authorities the authority designated the lead will administer the vote.
Why are BIDs different?
- With compulsory contributions, everyone who benefits from the scheme has to pay.
- With the levy providing an agreed amount for an agreed period (sustained funding) the guaranteed funding makes it easier to fulfil agreed objectives.
- Relevance: The class of non-domestic ratepayers who will be contributing to the BID levy is left to local discretion
- Affordability: Local discretion also extends to setting the amount of the BID levy which may be different amounts for different types of ratepayer in the local area.
- Versatility: Funding for BIDs will not be restricted to the amount that can be raised through the BID levy but can be supplemented by voluntary contributions
Do BIDs replace town centre management?
In a typical town centre it is possible to combine the two roles. Where an existing TCM role is in place with a strong record of partnership working BIDs can get off the ground more quickly. BIDs, however, address specific issues as laid out in their business plan and prospectus. TCM takes a more comprehensive approach in general. The two are complimentary and aim to give a town a competitive edge over rivals.
BIDs are a mechanism for providing secured and sustainable funding to deliver specific projects and services within a defined area and in a defined time.
|