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Stirling City Centre THIS REPORT RELATES STIRLING COUNCIL TO ITEM 12 ON THE AGENDA FINANCE & ECONOMY COMMITTEE CHIEF EXECUTIVE'S OFFICE 21 JUNE 2016 NOT EXEMPT BUSINESS IMPROVEMENT DISTRICT – STIRLING CITY CENTRE 1 SUMMARY 1.1 On 6 March 2015 the result of the Stirling Business Improvement Bid (BID) ballot was announced. Traders had voted no to the development of a BID in the Stirling City Centre area. 1.2 On 12 November 2015 the Committee agreed to support another ballot in 2016 and approved financial support of £20k to progress the range of actions required to enable the development of a BID for Stirling City Centre. 1.3 This report outlines the resource implications and actions required by the Council, in its role as postal ballot administrator and collector of the BID levies for the Stirling City Centre BID. 1.4 The report highlights the potential financial implications of a successful BID ballot for the Council as a non-domestic rates payer within the BID area. 1.5 This report also sets out changes to the approach from the 2015 BID. 2 OFFICER RECOMMENDATION(S) The Finance & Economy Committee agrees:- 2.1 to note the progress of the development of the Stirling City Centre BID towards ballot in 2016; 2.2 to note the changes to the BID process in 2016 and the revised timetable from that proposed in the last committee paper on the BID in November 2015; 2.3 that the Council remains supportive of the BID model and does not exercise the power of Veto on the Stirling City Centre BID going to ballot, as the BID has satisfied the regulatory requirements (refer to para 3.9.3); and 2.4 to support the Stirling City Centre BID (assuming satisfaction with the final BID business plan), by remitting the Chief Executive on behalf of the Council (as BID levy payer) to vote in favour of the Stirling City Centre BID during the BID ballot period (refer to para 3.8). 3 CONSIDERATIONS 3.1 A Business Improvement District (BID) is a business-led initiative within a defined geographical area where businesses, after a ballot, work collectively to invest, using funds generated by a levy based on property rateable value and levered funding, in defined projects that have been identified by businesses to improve their operating environment. These projects must be in addition to services provided by the public sector. 3.2 Stirling Council, through the Finance & Economy Committee, have previously agreed to support the development of a Stirling City Centre BID, as well as a Dunblane BID. The Dunblane BID was approved by local traders; the Stirling City Centre BID was not. Following the no vote in Stirling, a Critical Review and Report on the Stirling BID (Appendix 4) was produced and the Stirling City Centre Steering Group reformed. 3.3 The legislation and regulations enabling the development of BIDs in Scotland are contained within Section 9 of The Planning Act (2006) and The Business Improvement Districts (Scotland) Regulations 2007. 3.4 The development of the Stirling City Centre BID has progressed significantly since the no vote. Further funding from Stirling Council of £20K, towards a fund manager post and admin support to further advance the BID, was approved by the Committee on 15 November 2015. 3.5 The catchment area for the BID has now been enlarged and is shown in Appendix 5. This will deliver an annual levy of £325k from the BID area, increased from the £275k projected from the previous catchment. 3.6 The enlarged catchment area will bring additional Stirling Council owned property into the BID area resulting in an anticipated annual levy cost to Council of £9,296.88, an increase from the £5,850 annual levy anticipated in the 2015 BID. 3.7 The rateable value threshold has been amended to support the smaller businesses in the BID area. Those with a rateable value of under £10k will be exempt from the bid levy but will still share the benefits of the BID. This will apply to 160 businesses in the catchment area. 3.8 Local authorities play an important role in the creation of BIDs. In particular, local authorities are charged with legal responsibilities through the regulations, including the provision of business occupiers, owners and ratings data, and the collection of the BID levy. Councils are also responsible for the organisation of the formal BID ballot, the establishment of a ring-fenced BID revenue account (which is then passed to the BID company in full), and the preparation of and commitment to delivering an agreed level of baseline services within the BID area. Local authorities also have the power of veto on BID proposals, based on specific criteria within the provisions of the Business Improvement District (Scotland) Regulations 2007. 3.9 The requirements on local authorities in support of BIDs is outlined as follows: 3.9.1 BID levy collection requires the application of levy charges and revenue collection from businesses within the BID areas. Due to the nature of BID levy collection this will be an additional burden on the Council. 3.9.2 The organisation of the BID ballots has been discussed with the Council’s Democratic Services, who can provide the resources required to undertake the postal ballot process and declaration of the result. 3.9.3 The power to veto the proposed BIDs, can be invoked on specified grounds only. These relate to; level of business support, conflicts with policy, imposing an unfair financial burden distribution on ratepayers inthe BID area, proposed geography of the BID area, lack of prior consultation and significance of BID proposals. As the Stirling City Centre BID’s action plan, fits well with the Council’s strategies and priorities, and has been developed with Council involvement, there seems no valid reason for the Council to veto the ballots. 3.10 As property owners and occupiers of non-domestic rates properties in Stirling City Centre, the Council will contribute to the BID levy income. A list of the affected properties is provided within Appendix 3. The anticipated annual levy cost to Council of the Stirling City Centre BID area is £9,296.88. Individual Council Services will be responsible for meeting the costs of the annual levy attached to the buildings within the BID areas for which they are responsible. 3.11 As an eligible voter, the Council will be a ballot participant and it is proposed that the Chief Executive is remitted to cast votes in respect of the BID ballot during the BID ballot period of 19 October–30 November 2016, following consultation with the Convenor and Vice-Convenor of the Finance & Economy Committee to confirm the decision to support or otherwise the Stirling City Centre business plans. 3.12 The tests that must be satisfied by the ballot for the BID proposal to be approved are: 3.12.1 The total number of votes cast in favour of the BID proposals must exceed the total number of votes against; 3.12.2 The aggregate rateable value of all relevant properties voting in favour of the BID proposals must exceed the aggregate rateable value of all relevant properties voting against; 3.12.3 At least 25% of those persons eligible to vote must have done so; and 3.12.4 At least 25% of the aggregate rateable values of relevant properties within the BID boundary and eligible to vote must have voted in the ballot. 3.13 A BID Operating Agreement will be established (assuming a successful ballot) between the Stirling City Centre BID company and Stirling Council. The Operating Agreement includes reference to BID and Council obligations, accounting procedures, confidentiality, etc., and utilises a standard format for BIDs in Scotland. The Operating Agreement is currently in draft form. It is suggested that the signing of the final operating agreement between the BID Company (assuming positive ballot outcome) and the Council is delegated to the Council’s Legal Services. 3.14 The revenue collected from the BID levy (assuming ballot success), provides a flexible funding mechanism to improve and manage the commercial area based on business priorities, in partnership with the Council and other stakeholders. The BID for Stirling City Centre is seeking a mandate for the maximum period of five years, which will then be the subject of another vote (re-ballot), assuming there is an appetite for renewal. 3.15 The income generated by the BID levy annually, is anticipated to be £325k in Stirling City Centre. 3.16 As a levy payer and key stakeholder, Stirling Council would also be eligible to be represented on the BID’s company boards, which will be put in place assuming BID ballot success. 4 POLICY/RESOURCE IMPLICATIONS AND CONSULTATIONS Policy Implications Equality Impact Assessment No Strategic Environmental Assessment No Serving Stirling Yes Single Outcome Agreement Yes Diversity (age, disability, gender, race, religion, sexual orientation) No Sustainability (community, economic, environmental) Yes Effect on Council’s green house gas emissions No Effect Strategic/Service Plan Yes Existing Policy or Strategy Yes Risk Yes Resource Implications Financial Yes People Yes Land and Property or IT Systems Yes Consultations Internal or External Consultations Yes Equality Impact Assessment 4.1 The contents of this report were assessed using the EqIA Relevance Assessment Form. It was determined that an Equality Impact Assessment was not required as there was no impact on protected characteristic groups. Strategic Environmental Assessment 4.2 It was determined that a full Strategic Environmental Assessment was not required. Serving Stirling 4.3 The proposals set out in this report are consistent with the following key priorities:- Q - Pursue a diverse high wage economy that delivers local jobs for people across Stirling and a procurement policy that supports this Single Outcome Agreement 4.4 The proposals set out in this report support the following outcomes in the Single Outcome Agreement: A diverse economy that delivers good quality local jobs Other Policy Implications 4.5 The establishment of a BID accords with the Council’s key priorities in terms of enhancing the local economy and supporting businesses, under the leadership of the business community Resource Implications 4.6 Officer support and liaison with the BID companies will be required assuming successful ballots.
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