Issue - meetings

To consider a report by the Economic Development Manager on the development of a business improvement district for Huntingdon.

Authorised the Head of Customer Services to enter into the BID Levy Operating Agreement required in order to meet the Council’s obligations under the Local Government Act 2003; and the Managing Director (Communities, Partnerships & Projects) after consultation with the Executive Leader,  to cast any votes to which the District Council is entitled in the ballot.

A report by the Economic Development Manager (a copy of which is appended in the Minute Book) was submitted detailing proposals to establish a Business Improvement District (BID) in Huntingdon. The report had been submitted to the Overview and Scrutiny Panel (Economic Well-Being).

By way of background, Members were advised that a BID was a defined area within in which businesses would pay an additional levy to fund improvements within that area.  For a bid to be successful the agreement of a majority of those businesses affected must be received by number and rateable value. With regard to the extent of the proposed BID area, Members were advised that the area focused on the town centre and was essentially the area circumscribed by the ring road covering 369 businesses across the retail and office sectors.

It was noted that those businesses identified within the proposed bid area had been consulted as part of a feasibility study prior to the proposal moving onto the second phase of consultation.

Executive Councillors were advised that a suggested bid levy of 1.5% of the rateable value of the businesses would raise approximately £200,000 per annum. It was reported that under this rate the Council would be subject to an annual levy of £11,320 for the 14 premises/areas under its ownership that fall within the BID boundary.

Having referred to the potential impact an additional cost could have on small businesses and charities Executive Councillors were advised that, subject to the agreement of those liable, the BID Regulations 2004 would allow for these vulnerable groups to be excluded from the charge.

In discussing issues surrounding the collection of the levy and in noting the deliberations of the Overview and Scrutiny Panel thereon, the Cabinet

RESOLVED

(a)  that the Head of Customer Services be authorised to enter into the BID Levy Operating Agreement required in order to meet the Council’s obligations under the Local Government Act 2003; and

(b)  that the Managing Director (Communities, Partnerships & Projects) after consultation with the Executive Leader,  be authorised to cast any votes to which the District Council is entitled in the ballot.

To consider a report by the Economic Development Manager.

The Panel gave consideration to a report by the Economic Development Manager (a copy of which is appended in the Minute Book) outlining proposals to establish a Business Improvement District (BID) in Huntingdon and the process which would need to be followed if it was to proceed. Members were informed that BIDs were business led and, in this case, would operate in tandem with the development of the Chequers Court area.

In considering the contents of the report, the Panel discussed the operating arrangements for the collection of the BID levy and also queried how the success of the BID would be measured. With regards to the latter, Members noted that if the Business Plan was not convincing, this would be reflected in the outcome of the BID ballot. In addition, all projects would have their own critical success factors. It would also be possible to dissolve the BID at any time if local businesses did not consider that it was delivering the anticipated outcomes.

Discussion ensued on the funding which had been provided by the District Council to assist the development of the BID. A member questioned whether funding would be available to assist other towns within the District if any of them wished to adopt a similar approach. The Economic Development Manager explained that Huntingdon Town Partnership had evolved to such an extent that the District Council funding only amounted to 40% of its overall budget and, therefore, was best placed to become a BID. Furthermore, it was unlikely that BIDs in St Ives and Ramsey would be viable and St Neots was bidding to become a Portas Pilot Town to regenerate the town centre.Comment was then made about the changing face of high street shopping and the likelihood that town centres would become more leisure orientated and a focal point for the community in future years.

On the question of car parking having been identified as a key priority area for BID activities, Members were advised that it was possible for the BID to use its funding to reimburse the local authority to provide for free car parking. However, in other areas this had been considered but not pursued.

RESOLVED

  that the Cabinet be recommended to

a)  authorise the Head of Customer Services to enter into the BID Levy Operating Agreement required to meet the Council’s obligations under the Local Government Act 2003; and

b)  authorise the Managing Director, Communities, Partnerships and Projects, in consultation with the Executive Leader, to cast any votes to which the District Council is entitled in the ballot.