Business Improvement District

Torbay Development Agency is working with the local business community to explore whether Business Improvement Districts (BIDs) could be a success in Torbay.

A Business Improvement District is a partnership between a local authority and the local business community to develop projects and services that will benefit the trading environment within the boundary of a clearly defined commercial area. Over 42 Business Improvement Districts have now been established across England and Wales. Although most UKBIDs are currently in town centres, the principle works just as well in other places, and there are already BIDs established in industrial estates with considerable further interest.

BIDs in brief

  • BIDs allow businesses in a defined area and business sector(s) to vote on which additional services they want to invest in, to improve their trading environment
  • The vote is open to tenants - if a majority, both by number and by rateable value, approve the proposal, all ratepayers will contribute through their business rates
  • BIDs give local businesses the power to effect changes that will benefit them in their local community. Improvements may include extra safety/security, cleansing and environmental measures, improved promotion of the area, improved events, and greater advocacy on key issues, but the legislation does not put a limit on what products or services are provided
  • Businesses have the opportunity to agree on the projects for which they are contributing and to vote in a ballot on the amount of money they are prepared to raise, enabling them to become involved in the administration of the schemes themselves
  • BIDs are operated by not-for-profit partnership organisations
  • The interests of large and small businesses are protected through a system which requires a successful vote to have a simple majority in both votes cast and rateable value of votes cast
  • Businesses must be able to sustain the additional cost - if they are not viable the BID levy raise enough income to make it a worthwhile venture
  • Once voted for, the levy becomes mandatory on all defined ratepayers and is treated as a statutory debt
  • The plan voted for has a lifespan of 5 years and further proposals will have to be reaffirmed through a vote
  • Local Authorities play an important facilitating role and in particular are charged with legal responsibilities, including the provision of the ratings data to calculate the BID levy, the collection and enforcement of the BID levy via a ring-fenced BID Revenue Account that is then passed straight to the BID company, the organisation of the formal BID ballot, and the preparation and commitment to the baseline service agreements.

What are the Achievable Benefits of BIDS? Who can gain, and how?

Everyone / The Community

  • Produces economic well being and economic growth in area
  • Attracts inward investment
  • Gives competitive regional advantage
  • Produces social well being / improves quality of life
  • Develops partnership between private & public sector
  • Provides sustainable investment for ongoing capital projects/services
  • Creates a positive sense of place and enhanced feeling of safety and well-being - provides community pride

Businesses / The Occupier

  • Increases footfall
  • Increases consumer spend and sales - can lead to increase in profits
  • Reduces costs (crime reduction, joint activities, e.g. promotions/marketing)
  • Is flexible to address the issues of individual sectors
  • Gives businesses a local voice
  • Creates more appealing environment for employees
  • Fair to smaller businesses
  • Fair system, those that invest, benefit - no freeloading
  • Can decide and vote for action before making the investment
  • Can control process, monitor results and terminate it easily - flexible

The Landlord

  • Assists capital value growth
  • Increases rental values of property and area
  • Increases an area's desirability and attracts occupiers
  • Increase in trade which affects turnover based rents (some retail)
  • Could help properties away from main footfall areas
  • Good PR for company locally and regionally
  • Forges positive links with council

For more information on the BIDS process please email karen@torbaytowncentrescompany.co.uk

Ring the Torbay Town Centres Company on 01803 212270.

Or vist the Torbay Town Centres Company's website

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