Subject: Canterbury City Centre Business Improvement District (BID) Non-key. This report is open to the public.

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1 Subject: Canterbury City Centre Business Improvement District (BID) Director/Head of Service: Head of Culture and Enterprise Decision Issues: Decision type: Classification: CCC Ward(s): Summary: To Resolve: These matters are within the authority of the Executive and the Council. Non-key This report is open to the public. Westgate, Northgate, Barton and Wincheap. This report sets out the proposal for a Business Improvement District for Canterbury city centre, and the decisions required from Canterbury City Council to support and enable the BID to a ballot. a) To note the draft Business Improvement District proposal (Appendix I), and subject to the Head of Culture and Enterprise checking its content to authorise her to approve the final version which will form the basis for the notification of the BID ballot submitted to the Secretary of State. b) To formally support the Business Improvement District proposal and authorise the Chief Executive to vote yes with its votes as a NDR levy payer in the ballot. c) To authorise the Returning Officer to carry out the ballot in d) To authorise the funding of the BID ballot up to the sum of 10k from Executive Contingency in consultation with the Leader. Next stage in process Resolutions to be implemented. SUPPORTING INFORMATION 1. Introduction A Business Improvement Districts (BID) is a business led and business funded body formed to improve a defined commercial area in addition to the base line services provided by the public sector in that area. BIDs originated in USA in 1970 s; UK legislation enabling BIDs was introduced in To date there have been over 160 successful ballots including a number of 1

2 2. Detail second ballots, 33 unsuccessful ballots and there are currently 56 developing BIDs in the UK. They are increasingly the model which progressive towns and cities across the UK adopt in order to tackle the challenges they face. There are currently no town/city centre BIDs in Kent. BID cities similar to Canterbury include: Bath, Winchester, Guildford, Cambridge, Durham, Norwich, Worcester. A BID has the authority to levy 1-3% of non-domestic rateable (NDR) value in a defined area. NDR payers are balloted by number and rateable value to agree a proposal allocating levy payer funds for expenditure over a 3 5 year period. The BID has to be a commercial area defined by street in detail: can be a city/town or a business park. After a successful ballot, the BID proposer takes on the delivery role and a BID Board is formed to oversee delivery and levy payers interests. Canterbury City Partnership CIC (CCP) has undertaken extensive consultation with city centre businesses about the potential for a defined area of the city to become a BID. The city is coming under increasing pressure from congestion, parking and competition from out of town retail and the internet and needs a response to these challenges. A successful BID will have the ability to enhance and improve our city centre. CCP has been around since 1990; in 2007 it became a Community Interest Company and membership organisation focusing on growth, jobs and inward investment in the city. In 2011 it employed one person and then a second funded with Service Level Agreement from Canterbury City Council. Current turnover is around 80k per annum. The BID Proposal document prepared by Canterbury City Partnership see Appendix I, is the culmination of their consultation with the businesses in the proposed BID area, this will form the basis for the formal consultation with the levy payers to January 2014 followed by a campaign for a Yes vote until the ballot is held. A successful BID ballot in Canterbury would raise over half a million pounds per annum based on a 1.5% levy on the rateable value of each business premises over a five year period. Canterbury City Council has 29 hereditaments (NDR rateable properties) within the potential BID area, 27 of which are above the minimum rateable value and will be subject to the levy. The council will therefore have 27 votes in the BID ballot and a levy payable of just under 20k assuming a 1.5% BID levy. As part of the BID process the council has clearly identified all services that it currently provides in the BID area, both statutory and non-statutory. These have been set out in Baseline Statements which form part of the BID Proposal document and include: Canterbury City Council Commercial waste Street cleansing Public conveniences cleaning and maintenance 2

3 Parks and open spaces maintenance Stray dog service Car parking Graffiti Fly tipping Pavement litter Abandoned cars Dog fouling Licensing Admin and Enforcement Community safety and CCTV Street Scene Enforcement Marlowe Theatre Economic Development Business support Market management Use of public open space for events Support and development of artists Provision and support of cultural activities and events Voluntary sector grants and support Outdoor leisure Sports and physical activity Tourism Museums Kent County Council Highway maintenance Maintenance of non-illuminated traffic signs Clean and green including: subways, bridge, highway verges and roundabouts Safe and green including: footways and carriageways, tables and chairs licensing, A boards, street lights, winter service plan, surface water drainage Safe and enjoyable Clearly statutory services have to continue to be provided by the relevant authorities; however, both statutory and discretionary services are subject to resource constraints and the BID will work with the providers to minimise the impact of such pressures. 3. Relevant Council Policy/Strategies/Budgetary Documents Corporate Plan pledges: One - Support Growth, Two Keeping Safe, Five Cleaner and Greener, Seven Cultural Facilities and Nine Encouraging Involvement. Culture and Enterprise Policy Local Economy Policy, Visitor Economy Policy and Cultural Policy. 4. Consultation planned or undertaken Extensive consultation has already been undertaken by CCP to define the BID proposal, details of which are in the BID document. Consultation will continue on the BID Proposal document until January

4 5. Options available with reasons for suitability Option A to resolve that Canterbury City Council: a) Support the draft Business Improvement District proposal (Appendix I), and authorise the Head of Culture and Enterprise to approve the final version which will be submitted to the Secretary of State with formal notification of the BID ballot. b) Formally support the Business Improvement District proposal and authorise the Chief Executive to vote yes with its votes as a NDR levy payer in the ballot. c) Authorise the Returning Officer to carry out the ballot in July d) Authorise the funding of the BID ballot up to the sum of 10k from Executive Contingency in consultation with the Leader. Officers will keep ballot costs to a minimum. 6. Reasons for supporting option recommended, with risk assessment Officers recommend that Executive support the BID and resolve all of the items listed above. The potential advantages for the city and its economy are clear from the BID proposal. Not supporting the BID will result in rejection of the BID proposal by the Secretary of State. 7. Implications (a) Financial Implications If the BID is successful Canterbury City Council will be liable for around 20k per annum as a BID levy payer on its hereditaments within the BID area. This is less than the amount currently paid to CCP under the service level agreement. It is proposed that this is funded from existing Local Economy budgets which will be diverted to the relevant NDR codes. The cost of holding the BID ballot is estimated at 10,000 by Legal and Democratic Services. There is no existing budget for this expenditure. The costs associated with the collection of the BID levy from the businesses if the BID is successful will be met by the BID organisation; they will contract directly with East Kent Partnership for this service. (b) Legal Implications Carrying out the BID postal ballot in Other implications (c) Staffing/resource covered by existing staff resource within the Local Economy Team. Democratic Services staff time to be calculated. (d) Property Portfolio - none 4

5 (e) Environmental/Sustainability a successful BID will ensure the sustainability of a city centre partnership. (f) Planning/Building Regulations - none (g) Human Rights issues - none (h) Equalities - none (i) (j) Crime and Disorder a successful BID will potentially provide additional resource in the city centre such as street wardens. Biodiversity - none (k) Safeguarding Children - none (l) Energy efficiency - none 8. Conclusions A Business Improvement District for Canterbury City Centre is a positive and business led approach to the future sustainability and economic growth of our city centre Contact Officer: Dawn Hudd Telephone: List of background papers (other than published works) for the report Baseline Statements for City Council Services 5