Info & FAQ's
- What is a Business Improvement District (BID)?
- What is BID Leamington delivering?
- Why is a BID needed?
- Who can develop a BID?
- How will the BID be Managed?
- Who pays for a BID?
- How does an area become a BID?
- Does this mean the local authority will stop delivering services?
- Do BIDs replace town centre management?
- How is the BID monitored?
FAQ's
About BID Leamington
In February/March 2008 local businesses voted yes to steer Royal Leamington Spa Town Centre towards a successful new future through a Business Improvement District (BID).
Royal Leamington Spa has faced increasing competition in the last few years, including resurgent local towns and cities, out of town retail parks and the internet. If the Town is to remain competitive then it needs to generate a realistic level of funding to promote and improve the Town in order to attract more shoppers and visitors.
A BID in Royal Leamington Spa is a new way of managing the Town Centre. Voted for locally, local issues will be addressed with targeted solutions. Business led and with real control and accountability, all the money raised will be spent on the initiatives which businesses have highlighted; marketing, events and better signage. With proper business planning, it is a transparent, flexible and fair process. Legally binding it will provide practical services to ensure a well promoted, vibrant and accessible environment.
What is a Business Improvement District (BID)?
A business led and controlled partnership in a given area such as the Town Centre which delivers an agreed set of services / projects. These were agreed and formally voted on by all businesses and deliver projects/services that are additional to what the public agencies provide. Lasting for five years, the bottom line being that it improves your trading environment and the public realm.
What is BID Leamington delivering?
BIDs can deliver any projects or services that are agreed by the relevant businesses. In Leamington they are marketing & promotion activities, better way finding and more events. The actual projects and services were determined as a result of detailed consultation with all the business in the BID area.
Why is a BID needed?
BIDs is a mechanism which allows the public and private sector to work together on projects aimed at providing an area with a strengthened economic outlook, ultimately increasing trade for those businesses that are paying for the improvements.
BID support long term sustainability of Town Centre and enable them to approach the management of the trading environment / public space in a much more proactive and planned way.
Leamington Spa operates in an increasingly competitive market place. The town has many unique selling points (USP's) but research suggests that if it is to maintain its position it needs to bring businesses together in order to promote those USP's to a much wider customer base than it is currently able to do.
Who can develop a BID?
A BID can be proposed by any business ratepayer, property owner, local authority or other key stakeholder with an interest in the BID Area. In Leamington Town Centre it was lead by a BID Working Party which was made up of 12 private sector and 3 public sector representatives. It was responsible for proposing and preparing the BID on behalf of local businesses but not until a detailed consultation process had been conducted.
How will the BID be Managed?
The BID company is set up as a Company Limited by Guarantee. This is a new business controlled "not for profit" company, responsible for the delivery of the BID projects & services and directly responsible to all its business membership.
Who pays for a BID?
Once projects and services were agreed, they were costed up. The cost to each business was worked out on a pro rata basis. This is called the 'BID Levy'. A formal vote then took place on the agreed projects and services as the majority voted YES all within the BID area pay. The BID Levy is normally paid by the occupiers of a property.
How does an area become a BID?
The Leamington BID Working Group mentioned above was responsible for putting together a detailed business plan setting out the projects it aims to deliver on behalf of the business in the area and based upon a detailed consultation process with businesses. The proposals included the projects, cost, delivery guarantees, performance indicators and the management structure.
A confidential postal vote was held of all the businesses that would pay the BID Levy. To become a BID a majority of those that vote must be in favour by number and rateable value.
A successful Bid has a mandate for a maximum of 5 years after which it needs to seek reballot.
Does this mean the local authority will stop delivering services?
BID money can only carry out projects/services additional to those that public agencies have to provide. Prior to the BID prospectus being produced the current services being delivered by all public agencies including the local authority & police are benchmarked. The local authority has to continue to deliver that level of service for the period of the BID. The BID company can agree to provide additional resources to deliver a higher level of service over the benchmarked level.
Do BIDs replace town centre management?
In a typical town centre a BID combines the two roles. As there is an existing TCM function in place with a strong record of partnership working it is anticipated that we can get a BID off the ground more quickly.
BIDs, however, addresses and has to deliver on specific issues as laid out in the business plan and prospectus. TCM takes a more comprehensive approach in general. The two are complimentary and aim to give a town a competitive edge over rivals.
How is the BID monitored?
Like any good business plan specific key performance indicators (KPI's) are set and performance is monitored against the KPI's by the BID board. As businesses contribute the funding to achieve those specific KPI's set out in the prospectus the BID Company will be required to monitor and inform its members how well the KPI's on a regular basis.