CARDIFF BUSINESS IMPROVEMENT DISTRICT (BID)
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1 CARDIFF BUSINESS IMPROVEMENT DISTRICT (BID) Background 1. At the 10 March 2017 meeting of the Cardiff Executive Public Service Board, it was requested that representatives of the Cardiff Business Improvement District be invited to provide an update on the work undertaken to date, and plans for the future. Overview 2. The overview attached has been provided by Adrian Field, Executive Director of the Cardiff BID who will be giving a presentation to the Executive Public Services Board at its meeting 17 August Page 1 of 5
2 Cardiff Business Improvement District (BID) Purpose 1. To provide an update on the progress of the Cardiff Business Improvement District (BID) to date as well as immediate plans. Background 2. A BID is a business-led and business funded body formed to improve a defined commercial area. The benefits of BIDs, cited by the businesses they represent, are wideranging and include: Businesses decide and direct what they want for the area Businesses are represented and have a voice in issues affecting the area BID levy money is ring-fenced for use only in the BID area Increased footfall Improved staff retention Reduced business costs Enhanced marketing and promotion Facilitated networking opportunities with neighbouring businesses Assistance in dealing with the Council, Police and other public bodies 3. In the UK, the majority of BIDs exist in town centres, however they are also in industrial, commercial and mixed-use locations. 4. The average size of a BID is hereditaments, with some of the smallest having fewer than 50 hereditaments and the largest over 1,000. Cardiff has 996 making it the 11th biggest in the country in terms of number of businesses and levy income. 5. The annual levy income for Cardiff BID is 1.38million. 6. 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. All businesses eligible to pay the levy are balloted for a minimum of 28 days. 7. 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. Cardiff received 84% and 86% respectively. 8. 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. Cardiff BID started in December Page 2 of 5
3 9. The BID 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. 10. An Operating Agreement is entered into between a BID and their local authority governing how the BID levy monies are collected and administered and 100% of monies are passed over to the BID. 11. 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. 12. A BID is funded through the BID levy, which is a small percentage of a businesses rateable value. Like the majority of BIDs Cardiff BID charge 1% of rateable value with those in managed shopping centres receiving a discount as they will already pay for similar services via their service charge. 13. 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). Cardiff BID exempts those businesses with a rateable value of less than 325,000 as well as warehouses, workshops and wholly volunteer run charities. 14. 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. 15. Cardiff BID is a not-for-profit company limited by guarantee. 16. The BID Business Plan and Articles of Association set out how it will be governed. Cardiff BIDs is governed by a board made up of 16 BID levy payers representing the BID area. Representatives include Cardiff Council, John Lewis, Savills, Admiral insurance, Acorn Recruitment, M&S, South Wales Police (PPC s office), St. David s Shopping Centre. 17. There are 4 office staff and currently 8 Street Ambassadors. Page 3 of 5
4 Work achieved 18. Cardiff BID s work is divided into 3 areas: Welcoming, Vibrant and Influential. Achievements since work began in December 2016 include: The setting up of the business itself with premises secured in the Motorpoint Arena and a series of sub groups set up including: Marketing and Communications, Evening and Night Time Economy, Independents, Scrutiny (Projects) and Finance. Employment of 10 Street Ambassadors to undertake business visits and help address concerns, opportunities and assist members of the public visitors, locals, employees. Collectively the team have met over 800 businesses as at end of July Installation of 30 floral planters and 380 hanging baskets. Setting up BT Superfast Broadband in Castle Quarter to support 220 existing as well as enticing new businesses into this area. This will go live in early Funding to support the continued and increased presence of the Cardiff Street Pastors to help vulnerable people at night. Additional taxi rank and marshalling on Westgate Street on Friday and Saturdays. Additional taxi marshals on home 6 nations matches. Supported campaign to Save Womanby Street. Sponsoring the Swn Music Festival this September. Sponsoring the IRIS Short Film Festival this October. Sponsor for the 2018 Cardiff Life Business Awards as well as supporting the InfoBiz exhibition event with deals for BID businesses to exhibit. Supporting the Studio 16 collaboration of independent businesses to network and exchange ideas. Pilot project to deep cleanse the city centre using additional resources currently provided by the City Council. City wide scheme goes live in August 2017 involving painting street furniture, chewing gum removal, heavy duty cleaning and cleansing business frontages. Supported Get Lost in Cardiff campaign to promote independent businesses Working towards Purple Flag accreditation to improve standards within the night time economy. Support for Wriggle which assists food and drink businesses with providing immediate on line offers. Next Steps (including those currently seeking Board approval): Customer Service Assessments (mystery shopping exercises) for all BID businesses (September). Project to reducing business overheads eg. Gas, electricity, water, car parking; Setting up an Alternative Giving scheme to reduce the problem of begging on the streets using contactless technology. Page 4 of 5
5 Involvement in Snowdog Tails in Wales event with Ty Hafan (October to December 2017). Marketing of Cardiff nationally for Christmas (discussions with Visit Cardiff are underway). Additional Christmas lighting in Mill Lane. Implementation of Gift Card exclusively for use in independent businesses only Employee Loyalty scheme for workers of BID businesses to use in a variety of fellow BID firms. Mystery of the Star Eaters event (a Pokemon Go style trail around the city centre) September 16 th. Lobbying to ensure that the views of businesses are heard when bidding for major events to ensure that there is short and long term benefits. A report has been written into the impact of the UEFA Champions League Final on businesses with lessons learnt and recommendations for future major events. Partner in Mill Lane Action Plan and proposed Business Association. Delivery of various crime reduction and safety projects in partnership with Police Board are set to discuss a 170,000 proposal from South Wales police to support a variety of initiatives in the night tie economy. Improved awareness provision of bike parking. Augmented Reality and Virtual Reality event as part of the Christmas offer to the public. Ensuring that the 80,000 students who are in the city embrace the commercial offer in the city centre via an event organised by specialists UniDays as well as supporting University Open Days. Page 5 of 5
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