What is a BID – explanation?
Funding for each Business Improvement District (BID) programme comes from a targeted rate charged towards businesses within the BID area. Auckland Council makes these funds available (at no cost) for the business association to use on activities that promote economic growth in their area.
Businesses already pay rates, why should we pay again?
The objective is to help Central Park – Henderson – Lincoln – The Concourse
be a great place to do business by delivering in five key strategic areas:
- Advocate to enhance the area and local business
- Activities that make doing business easier and safer
- Attract more member engagement and more businesses to the area
- Announce to the region ‘the benefits of doing business with The West’
- Accountability through all activities to gain enhanced engagement from local members.
The BID programme targeted rate grant funding can be applied to any activity that supports economic development within the targeted rate area map but must not be used for the provision of any service that is otherwise provided by Auckland Council via its general rate.
It can, however, be used to provide a higher level of service, if desired.
Targeted Rate – explanation
Targeted rates pay for specific services or projects and can be set generally across all ratepayers or to specific ratepayers in certain areas. The rate is set by local business and collected by Council then 100% is distributed (free of charge) in the form of a grant to the business association
How much will we pay?
What is the cost for likely to be for local businesses?
A fixed rate of $250 per property + small % on capital value (multiply by 0.00015442)
CV BID Rate
$100,000 $265 per annum
$200,000 $280 per annum
$500,000 $327 per annum
$1,000,000 $404 per annum
$2,500,000 $636 per annum
(Rates are approximate)
85% of properties will pay less than $400 per annum (less if there are multiple tenants)
i.e. less than $10 per week.
Who can vote?
BID programmes are based on the principle of democracy – every BID programme member (within the BID Boundary) is allowed to participate in making decisions, either directly (voting on a decision) or through elected leaders who act on behalf of BID programme members.
Ballot voting is based on the principle of ‘one entity – one vote’, an entity being
- a business ratepayer and/or
- a business/occupier.
How do you vote and when?
Voting papers will arrive at your business (rate payers address) by post in Feb/March 2020 (timing TBC). Return your vote by Freepost, to arrive by 12 noon, Friday 27 March 2020, in order that it can be counted. Exact details to be confirmed.
How does the vote become successful?
The threshold for a valid ballot is at least 25% of the total voting forms being returned.
A minimum of 51% of the votes must be in favour of the proposition raised on the ballot form to achieve a mandate.
What exactly does the money pay for?
To give you an idea of how the BID money could be spent if a BID is established, CPHBA has proposed a budget (available on the website) note 1. It will be up to local businesses and the association committee to confirm what they want to do, and how much they want to spend.
What aspirations, business plan, outcomes, if this process was voted in and put in place?
The BID represents all businesses in a BID area. It receives input and access to Council and further funding. The BID’s objectives are to;
– Develop, Create, Support Business and foster local business investment
– Increase employment and vocational pathways for our youth – live, learn & earn locally
– Enhance the physical environment by keeping it secure, clean and to capitalise potential –
– Promote the profile of the precinct
– Lobby local and central government on specific items that concern the area
Is any property exempt from paying the BID
Property types that are exempt from paying the BID programme targeted rate and participating in a BID programme are, therefore, ineligible to vote in any BID programme ballot include:
- a) Businesses which provide a business address, which is a commercial property within the
BID programme boundary but cannot provide sufficient proof that they are actually trading from that property, to the satisfaction of the independent election agent
- b) Auckland Council-owned properties – excluding property rented to commercial tenants
- c) Residential property owners – excludes any proportion of the property used for commercial activities
- d) State educational facilities – excludes any proportion of the property used for commercial activities
- e) Religious facilities/places of worship – excludes any proportion of the property used for
How is Council involved?
Council is involved because they are the only legal entity that can collect the targeted rate.
- 100% of the BID rate is returned to the Business Association to spend as the members decide.
- Council cannot dictate how the money is spent but is there to ensure accountability
Business associations are encouraged to seek alignment between BID programme strategic and business plans and local board plans in particular, as well as make reference to other Auckland Council policies, plans and initiatives.
What role does Council play?
- The BID rates cannot/will not be spent on services that are already undertaken by Council.
- Unlike general rates…
the BID money is spent solely within the business area from where it was collected.
- How the funds are spent are accountable to members via AGM (including annual audited accounts).
note 1 – www.westaucklandbusiness.co.nz / Business Improvement District (BID)