GLOUCESTER BID DEVELOPMENT
HAVING AN ESTABLISHED PARTNERSHIP WITH A TRACK RECORD OF DELIVERY AND A COMMON PURPOSE CAN CERTAINLY HELP WHEN DEVELOPING AND PROMOTING THE BID.
WHO STARTS THE BID PROCESS?
The BID proposer can be any non-domestic ratepayer, property owner, local authority or other key stakeholder with an interest in the BID area, the idea for a BID will usually come from an existing partnership or group of businesses such as a Town Centre Management group, Chamber of Commerce or business forum, or a Destination Management Organisation In the case of a TBID.
Having an established partnership with a track record of delivery and a common purpose can certainly help when developing and promoting a BID.
THE DEVELOPMENT OF ANY BID WILL FOLLOW THE SAME BROAD STAGES:
- BID proposer consulting with stakeholders including businesses and the local authority to assess and secure support and to agree local needs and priorities
- Establishing governance, control and leadership arrangements
- Scoping the area, assessing feasibility, defining the levy payers and how the levy will be calculated
- Developing a prospectus and business plan and canvassing support
- Balloting potential levy payers
- Delivering the programme, reviewing and developing the BID
- Scoping checklist
THE ROLE OF THE LOCAL AUTHORITY
ARRANGING AND PAYING FOR THE BALLOT
COLLECTING THE LEVY
PROVIDING MANY OF THE SERVICES IN THE BASELINE AGREEMENT
ENSURING THE BID PROPOSAL IS ALIGNED WITH LOCAL AUTHORITY POLICIES AND THAT OFFICERS ARE AWARE OF THE LEVEL OF SUPPORT EXPECTED FROM THEM
MEMBERS OF THE BID BOARD
(Chair) Knobbly Cob & BCR Consultant
(Vice Chair) LVA Chair & Butlers
Manager Rene Group
Partner, Pitt Godden & Taylor
Cass - Stephens Insurance
Quayside Wealth Management
Nettl of Gloucester & Four Gates
Partner (Solicitor) Tayntons
Manager, Eastgate Shopping Centre
Truscots & Fourgates
Chamber & Kings Walk Centre
DEVELOPING THE BID...
- A BID can only be formed following consultation and a ballot in which businesses vote on a BID Proposal or Business Plan for the area
- The ballot is run by the local authority or outsourced by the local authority to a third party
- All businesses eligible to pay the levy are balloted for a minimum of 28 days
- In the UK, for a BID to go ahead the ballot must be won on two counts: straight majority and majority of rateable value. This ensures that the interests of large and small businesses are protected
- There is no minimum turnout threshold
- Industry Criteria and Guidance Notes are published to support locations during the development phase
Please click here to view the first information sheet distributed throughout the City in October 2016.
- The BID Proposal or Business Plan sets out businesses’ priorities for improvements for the area and area services, as well as how the BID will be managed and operated
- This document becomes legally binding once a ballot has been won and becomes the framework within which the BID will operate
- An Operating Agreement is entered into between a BID and their local authority governing how the BID levy monies are collected and administered and passed over to the BID
- BIDs enter into Baseline Agreement with their local authority and other service providers, which specify the level of service provision in the area. These ensure that any services the BID provides are additional
- The list of Street Names covered by the Proposed BID area can be found here.
BID LEVY & FUNDING
- A BID is funded through the BID levy, which is a small percentage of a businesses’ rateable value. The majority of BIDs charge 1% of rateable value, however there are some that have opted for higher levies, particularly in smaller locations with lower rateable values and industrial areas
- Once a ballot is successful the BID levy is mandatory for all eligible businesses. BIDs can choose to exempt certain businesses from paying the levy (and therefore from voting in the BID ballot). Many BIDs exempt the smallest businesses; and some exempt certain business sectors
- BIDs are often successful at attracting funding in addition to the BID levy. They are particularly attractive to public sector grant making bodies due to the private sector match-funding available through the BID levy. Local authorities, property owners, and businesses outside the BID area can all provide additional income for BIDs through voluntary agreements
GOVERNANCE AND MANAGEMENT
- The vast majority of BIDs are not-for-profit companies limited by guarantee
- BIDs set out how they will be governed in their BID Proposal or Business Plan and Company Articles of Association
- Most BIDs are governed by a board made up of BID levy payers representing the BID area
- BID management teams vary with the size, focus and budget of each BID but will generally encompass management, administration, business engagement, marketing and communications and project management
- Performance Measurement
- It is important for BIDs to measure performance to demonstrate the return on investment to levy payers through activities in the area.
- Industry Accreditation is focused on ensuring quality management systems exist within BIDs
RENEWING A BID
BIDs operate for a maximum of five years within the legislative framework. If they wish to continue they must go through a renewal ballot process to secure another BID term of up to five years.
QUESTIONS THAT ARE ASKED WHEN CHECKING BID VIABILITY
- Is there a critical mass of private sector support and leadership for the idea?
- Are the businesses involved representative, both in terms of the size and types of businesses?
- Is there wider engagement with the Council and other stakeholders, especially at leadership level?
- What are the major issues?
- How would a BID add value?
- What is the likelihood of positive ballot result?
- Set up a contacts database from the NNDR lists with all businesses in the target area. Include any additional relevant information, e.g. from existing Town Centre Management
- Identify the list of ‘target’ businesses for the survey; try to include:
- Those who would be likely to pay more than say £1,000 in annual levy if the rate was set at 1.5% of rateable value
- Some of the smallest businesses
- Businesses from each sub-area
- Businesses across the spread of key sectors
- Landowners – although they will not pay the levy (unless their properties are empty) they may sit on a future BID board and make – Voluntary contributions for specific projects
- Design the survey to be used in the business consultation – a mix of structured questions (for analysis) plus wider discussion
- Set up an online survey and publicise the link through council and other mailing lists
- Identify local ‘talent’ to target for core group
- Set up core group to test viability and act as local advocates
- Focus on a few local businesses to gauge support and identify the major issues
- Think about identifying the possible levels of any threshold
- Ensure that all businesses consulted receive feedback from the consultation
- Ensure interviewees are senior enough to give a reliable view on behalf of their companies
- Ensure adequate representation from all sectors, including night time economy operators
- Consider other forms of partnerships, perhaps relying on voluntary funding contributions
INVITATION TO TENDER
- Please click here to download our Invitation to Tender document.