Business improvement districts
agendaNi examines the Business Improvement Districts Bill, which has passed its first stage in the Assembly.
The Business Improvement Districts Bill aims to help town centres recover from the current economic downturn. Guidelines have been established to allow business communities and local authorities to take forward schemes that will generate financial dividends for businesses. Business improvement districts (BIDs) should also provide other economic, social and environmental benefits in the designated area, the Bill states.
BIDs legislation is already in place in England, Wales, Scotland and the Republic of Ireland. There are 25 BIDs in London. The Greater London Authority cites the main benefits as BID levy money being ring-fenced and spent in the area, businesses deciding what they want for the area, and place promotion and networking opportunities with neighbouring businesses.
Dublin City Council’s BID represents 2,500 businesses in the city centre and aims to increase footfall, improve the night-time experience and work with the gardaí to ensure that the city centre is a safe place to socialise, shop and do business.
A consultation from 1 December 2010 to 28 February 2011 received 37 responses, 35 of which were “very supportive” of BIDs. Two respondents were concerned about asking businesses to take on extra costs in the difficult economic climate.
BID proposals will be made by a local council (alone or in conjunction with a neighbouring council) or by business. Proposals will only go ahead if agreed in a vote. Those who have drawn up the proposals must explain which eligible ratepayers are to be entitled to vote in the ballot.
A district council will be able to veto BID proposals in exceptional circumstances (e.g. if they conflict with existing council policy or are likely to impose a disproportionate financial burden). That veto can then be appealed to the Department for Social Development.
Eligible ratepayers are non-domestic rate-payers with a property in the BID area. Landlords are not included in the bid process.
The vote will only be deemed valid if there is a simple majority in both votes cast and rateable value of votes cast, plus a minimum 25 per cent turnout (by number and rateable value). BID proposers in a given area may specify that they wish to set a higher threshold. Consultees made it clear that BIDs would only work if there was a clear need for additional services in the area and that the benefits to the businesses paying the levy were clearly identifiable.
The levy to be paid by local business is likely to be based on the rateable value of the property.
Respondents pointed out that towns and cities have a number of diverse urban areas, each with their own particular set of issues and problems, and stated that the legislation must be flexible enough to allow BIDs to be developed and managed locally.
The district council which has made BID arrangements must keep an account, to be called the BID revenue account, into which the levy will be paid. The Land and Property Services Agency (LPS) rather than local councils will collect the levy. Consultation respondents felt that that it would be more cost effective for LPS to collect the levy as it already carries out this function for non-domestic rates bills. Details on levy collection will be set out in secondary legislation.
The Bill stipulates that BID arrangements can operate for five years before being resubmitted to a ballot.
DSD is also set to introduce a Bill to legislate for businesses serving food and drinks on the pavement outside their premises.
