Agenda item

To consider a report of the Corporate Director for Place Management and Regeneration

The Council has received a request to assist the town centre business community with the promotion of a town centre Business Improvement District (BID). The report provides an overview of BIDs, outlines the role of the Council and the financial obligations a town centre BID would place on the Council and sets out the offer of financial support from the Council to help cover the set up costs.

The Scrutiny Committee is requested to comment on the report, prior to its consideration by the Executive.

Officer Contact: Graeme Vout on 0161 474 4562 or email: graeme.vout@stockport.gov.uk

The Corporate Director for Place Management and Regeneration submitted a report (copies of which had been circulated) regarding a request to the Council to assist the town centre community with the promotion of a Town Centre Business Improvement District (BID). The report provided an overview of BIDs, outlined the role of the Council and the financial obligations a town centre BID would place on the Council and set out the offer of financial support from the Council to help cover the set up costs.

It was reported that all businesses that were subject to the potential levy would be eligible to vote in a ballot. The ballot would determine whether the BID went ahead.  A successful ballot required a simple yes majority both in terms of votes cast and in rateable value of votes cast. Each business entitled to vote in the ballot was allowed one vote in respect of each property occupied or (if unoccupied) owned by them in the geographical area of the BID. Once the BID was in operation the levy would be charged on all businesses within the BID area regardless of whether or how that business voted in the ballot.

Most BIDs were governed by a board made up of BID levy payers representing the BID area and a BID management team; the nature of which varied with the size, focus and budget of each BID. It would generally encompass management, administration, business engagement, marketing and communications and project management. BID Boards were generally made up of representatives from across all sectors within the BID area to ensure balanced representation. Observers were also normally invited from the Council and the Police.

The Deputy Executive Leader and Portfolio holder for Support and Governance (Councillor Iain Roberts), deputising for the Executive Councillor (Thriving Economy) (Patrick McAuley), attended the meeting to respond to Members’ questions.

The following comments were made/issues raised:-

·         A Member expressed the view that the amount of money raised by the BID levy was particularly high being £381k for a 1% levy and £571k for a 1.5% levy. The Corporate Director explained the additional services which the levy could be used for, emphasising that these services would be in addition to the core services provided by the Council.

·         One of the values of BIDs was that it encouraged local businesses to work together.

·         A Member supported the Council’s involvement in the BID providing the costs to the Council did not escalate.

·         BIDs currently had a life of five years. This would apply to the Stockport Town Centre BID in the BID proposal. If the bid company wished to change its boundaries it could only do so at the end of this period.

·         A Member expressed concern whether enough businesses subject to the potential levy and eligible to vote in the ballot would vote in favour of it.

·         It was crucial if the ballot was to be successful that hereditaments with large rateable values needed to vote in favour of the BID. A single entity with a single rateable value was eligible to vote in the ballot.

·         In response to a Member’s question, the Corporate Director confirmed that businesses with business rate arrears would be required to pay the levy.

·         The current proposed boundary of the BID area had been established by local businesses. The boundary was currently being consulted on.

·         A Member asked that the BID Board be requested to make its Minutes available to Members of this Council.

·         Although the Council would be required to collect and recover the levy under the BID legislation, responsibility for the collection would be shared between the BID Board and the Council.

RESOLVED – (1) That no objections be raised in principle to the establishment of the BID and the comments of the Scrutiny Committee be referred to the meeting of the Executive on 21 July 2015 for consideration.

(2) That the Corporate Director for Place Management and Regeneration be asked to request the BID Board to make its Minutes available to Members of this Council.