Appendix 1
Poole Business Improvement District
Feasibility Study
Prepared by
October 2014
Poole BID Feasibility Study
Contents Page
Introduction 3
Section One 4
BIDs Background and Overview
Section Two 4
Poole Background and Context
Section Three 6
Feasibility and Analysis Study
Methodology
Study Area
Data and Information Analysis
Market Research and Consultation
Section Four 17
Conclusions and Recommendations
Section Five 19
Governance and BID Company Structure
Section Six 20
Poole BID Development and Planning
Section Seven 27
Next Steps and Conclusions
Introduction
Destination Marketing is a professional, place management consultancy that has advised on all aspects of town management in the Europe and the UK. We have been responsible for the development of numerous Business Improvement Districts Schemes (BIDs) over the past 8 years. We take a phased and thorough approach to this work, recognising that for a scheme to be successful the foundation work has to be comprehensive and based on broad consultation and in depth survey analysis.
Destination Marketing was appointed by Poole Town Centre Partnership in August 2014 to carry out a Feasibility Study to provide information and a recommendation into the feasibility of developing a Business Improvement District Scheme for Poole town centre.
This study covers these key areas:
1. Background to BIDs
2. Poole context
3. The feasibility of developing a Business Improvement District (BID) in Poole town centre.
To include recommendations for:
· The BID area,
· The levy rate,
· Exemptions thresholds
· Consultation
· Potential BID projects
· Budgets and impacts on current revenue streams
4. Conclusions and recommendations
5. Governance structures
6. Programme of activity to a BID ballot
7. Next Steps
Section 1.
BIDs Background and Overview
BIDs were first introduced in Canada in the 1970’s quickly adopted by the US and they have since rolled out to countries in the European Union including Scandinavia, Japan and Australia. The Local Government Act 2003 and subsequent Statutory Instrument in 2004 enabled the development of the first BID schemes in England in 2005. There are now over 180 such schemes in existence in the UK.
The legislation was amended last year to accommodate the creation of cross- boundary BIDs when the BID area straddles more that one administrative boundary. This does not apply to the proposed Poole BID area.
A BID is a formal mechanism, to finance the delivery of an agreed business plan.
Usually, a pre-existing public/private sector partnership is the vehicle for the development of a BID. Extensive consultation with local businesses within a prescribed area is undertaken to identify issues, priorities and projects. The results of this consultation are used by the partnership to develop a BID business plan setting out projects and services that will address the priorities identified.
Businesses in that area are then invited, through a formal, anonymous ballot to vote on the business plan; if the majorities (51%), by number and rateable value vote in favour, all businesses in that proposed BID area pay an annual levy that is ring-fenced for the delivery of the BID Business Plan.
The vote is conducted via postal ballot that is sent to all business ratepayers in the BID area who will pay the levy if the vote is successful regardless of how they voted. This charge becomes a statutory charge upon the premises for the lifetime of the BID, a maximum of 5 years.
It is worth noting here that the most BID campaigns are successful where the business community leads the initiative and the final Business Plan and the governance structure is a very clear reflection of the priorities identified and the business community that will be paying for the scheme.
Section 2.
Poole Background and Context
Poole has a resident population of 138,000. It has an historic waterfront, a charming Old Town quarter, large shopping centre and The Lighthouse Arts Centre, one of the biggest outside London. With a ferry port to France, a railway station and easy access to Bournemouth airport (11.5 miles distant), Poole is well connected to London, the rest of Dorset and the near continent.
Poole is home to some of the most innovative and high value industries in England. Sunseeker yachts has its head office and boat yard in the town. RNLI, Barclays and Lush cosmetics have based their head offices and operational functions in, or close to the town centre.
The beaches and parks are located outside the town and there is the very high value residential development of Sandbanks is within a few miles of the town.
Poole has direct competition from Bournemouth town centre and Castle Point Shopping centre. The town is centre is of a linear nature, being of a typically dumbbell layout. The quay and harbour occupying the South -western end and the Dolphin Shopping Centre the North eastern end. The High Street links these two key anchors for Poole. It is a relatively long High Street (of just under 1km), which is truncated by 2 roads (New Orchard Road and North Street) and a railway line. In each case the High Street is the minor road and traffic has priority across it. The consequence of this is that the High Street is fragmented and disjointed and does not perform well in parts. The public realm is poor and poorly maintained.
Pedestrian flows tend to concentrate on one end of the High Street or the other rather than progressing between the two. The obstacles created by both the transecting roads and the railway line, controlled by a barrier, are sufficient to deter the majority of pedestrians from shopping the length of the High Street from quay to shopping centre.
Taken alongside the unique combination of natural and historic resources, close proximity to beautiful countryside and strategic transportation links, the strength of the Poole economy means that the town should perform better than it does currently.
Poole Town Centre Partnership is a voluntary organisation funded through the Local Authority, private sector contributions and commercial activities. It has been proactive in the coordination and development of the town over the past decade with its key partners, Borough Poole Council, the Chamber of Commerce, representatives of private sector businesses in the town, Dorset Police and others.
In 2009 The Town Centre Partnership commissioned Gillespies to conduct Poole High Street Study. This study contributed to the Poole Town Centre Strategic Plan. This plan identifies 5 Priorities for the town from 2013 – 2018.
1. Promote the Town’s primary assets locally and further afield
2. Renew the vitality, vibrancy and footfall of the High Street
3. Create and maintain a safe, clean, accessible and welcoming Town centre day and night.
4. Engage businesses and employers to work towards a shared vision for the town centre with greater numbers actively involved in the Town Centre Partnership
5. Increase awareness of the Poole town centre offer and to actively promote Poole as a destination for Shopping, leisure, tourism, business and living across all age groups.
The overall Objective of this plan is for Poole to be:
‘The Best Town Centre Experience in Dorset’
In this context we have consulted and researched the possibility and potential for the development and delivery of a successful BID scheme for the retail core of the town, which could provide the mandate, and resources for the delivery of these priorities and objective over the 5 year period and beyond.
Section 3.
Feasibility analysis for Poole BID
Methodology
In order to develop a BID it is important to have a firm foundation on which to build a proposal and opportunity to secure a “yes” vote in future. The Poole Town Centre Partnership will need to establish a clear understanding of current business priorities in the area as well as financial data and market analysis.
The information provided in this report will allow Poole Town Centre Partnership to make an informed decision on whether to progress to the next stage of investing the time and resources to develop a BID proposal to put to a ballot of local businesses in Poole town centre.
The information has been gathered using the following methods:
Desk research
· Collation of business rates data for the area.
· Analysis of:
o Sector contributions
o Levy payers
o Boundary area
o Distribution By Street
o Distribution by street value
· Analysis of existing plans & reports
Fieldwork
· Detailed survey of the potential BID area
· Undertaking a series of interviews with a cross section of business managers and owners and key people/organisations with an interest in the town centre.
Poole BID Study Area
The study area (marked with grey shading) is the defined area used for the purposes of the Feasibility Study shown on the map above. With the information collated as part of the study it will be possible to define the most appropriate area for the BID proposal.
This area has been defined as the potential BID area for the following reasons: -
Ø It includes the retail core of the town centre.
Ø It is closely aligned to the area identified in the Gillespies report.
Ø It includes some of the proposed development sites that may well come forward in the lifetime of any proposed BID.
Ø It provides sufficient Rateable Value and therefore BID levy to enhance the viability of a Poole BID.
Ø It is relatively compact and includes a substantial clustering of independent retail and The Quay that helps give Poole its identity and character.
Ø The proposed area includes The Quay area of the town. This area is not currently part of the remit of the TCP, but in our opinion Poole Quay is a significant attraction and identifier for the town. We do not see how it can be excluded from the BID area and it has to be part of the whole offer that Poole provides.
Ø The proposed area does not extend to include the premises on West Quay or West Street. In our opinion, though it is tempting to include these premises to boost the levy revenues, in the long run it will be difficult to prove added value and secure their vote and support. Given the high rateable value of these premises we consider their inclusion a risk to any future BID ballot. It may be that voluntary contributions are sought from the businesses in this area.
Desk research /analysis
A key part of the development of any BID is to understand the composition of the business occupancy in the area, by: -
Ø Business type,
Ø Rateable values and breakdown
Ø Geographical and sector spread.
This data will form the backbone for any future development of a BID. It will inform a comprehensive consultation and campaigning exercise, the development of the BID priorities, the ballot and the legal and financial framework upon which any future BID will be developed and delivered.
The following data has been analysed and used -
i) The National Non-Domestic Rates (NNDR) List was obtained for the study from Poole Borough Council. This list ultimately forms the legal basis of any BID levy charge.
ii) Analysis of total Rateable Value applying different exemption rates (premises under these rateable values would not vote or contribute to the BID) £10,000, £7500, £6000 and £5000.
iii) The NNDR list was checked and cross-referenced through a foot survey of the town and in consultation with PTCP
The key information for the proposed BID area, from this analysis is set out below.
BID Levy Options
The following table gives an indication of the annual levy that could be raised from the proposed BID Area if based on a percentage -based levy of rateable value. In assessing these figures a number of things need to be considered. Firstly, these are indicative figures for internal use only. The final BID levy amount will be determined by the priorities indicated through consultation.
Secondly, it is worth noting that BID Companies operate independently from Councils so budget costs will need to include not only project costs but also the costs for implementation e.g. employment of staff or use of contracted agencies.
Levy rate
Given the scope and ambitions of the Town Centre Strategy, we recommend that a levy rate of 1.5% is achievable. This would provide sufficient funds to deliver a substantial programme of activity particularly when used as seed- corn funding to draw down additional funds from elsewhere as grants, voluntary contributions or matched funding.
Exemptions
It is common practice in many large BIDs to make exemptions or exclusions to the BID process, usually setting a de minimis Rateable Value below which the businesses will not have a vote or pay the subsequent levy.
In setting any exemption level consideration needs to given to the following:
o Cost of levy collection
o Democratic inclusion
o Capacity to communicate
o Proving added value
o Maximising support
o Maximising budget
In the process of this Feasibility Study we have considered where any exemption threshold should fall. We have also asked the Poole Town Centre Partnership for their opinion. We conclude that the recommended level should be set at £5,000. At this level we will include the majority of small independent retail businesses, but exclude storerooms, advertising hoardings and the micro businesses.
The table that follows illustrates the comparative value and numbers of premises that would be excluded at different levels of exemption and the loss of levy income set at either 1% or 1.5%.
Exemption / Numbers properties / Total RV £ / BID levy@1% £ / BID levy
@1.5% £
>£00.00 / 619 / 22,931,491 / 229,314 / 343,971
>£10,000 / 224 / 1,078,741 / 10,787 / 16,180
>£7,500 / 174 / 643,941 / 6,439 / 9,658
>£5,000 / 115 / 289,341 / 2,893 / 4,339
Our recommendation is that the exemption rate should be set at Premises with a Rateable Value of under £5,000. This reduces the numbers of voters substantially but does not make a significant difference to the annual yield based on the proposed BID area.