Mahurangi Matters, BID Feature, 17 February 2016

BIDfeature 21MahurangimattersFebruary 17, 2016

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More than 300 business and commercial property owners in Warkworth will begin to vote next month on the question of whether or not to form a Business Improvement District.The volunteer-run Warkworth Area Business Association is promoting the BID vote, although Election Services, an independent body, will conduct the ballot.Registered voters should begin receiving their ballot papers on March 29 and voting will close at midday on Wednesday, April 20. The result should be known later that day.Voters will be asked the simple question of whether or not they are in favour of setting up a BID in Warkworth.A BID represents a partnership between Auckland Council and the business sector aimed at engaging in activities that enhance business outcomes at a local level, but do not replicate services provided by Council.Rather than a voluntary membership, a BID imposes a mandatory levy on commercial properties, across a defined business area, which is collected annually as a targeted rate. All money collected via the targeted rate goes to the business association.

WarkworthBID FEATURE

The Business Improvement District (BID) vote is engaging debate both for and against. On the following pages, we asked the Business Association, which supports the BID, and the Warkworth Commerce & Industrial Association, which opposes it, to put their case forward.

Decision time for Warkworth businesses as BID vote looms

The rate is calculated on the capital value of a property and the Warkworth BID is suggesting a hybrid method, which involves setting a nominal flat rate per business and then above that amount, a proportional rate based on capital value.Some of the core objectives of a BID are to foster economic growth and employment, improve amenities, safety, marketing and promotion. Unlike their forerunners, the Mainstreet programmes which primarily focused on the retail sectors, BID programmes embrace all business types including retail, commercial and industrial.There are currently 46 BID partnerships across Auckland, representing more than 25,000 businesses.

While a primary focus of a BID is to deliver local economic development, the approach also provides a catalyst for business associations to advocate to Auckland Council for appropriate infrastructure to support business activity, and contributes a business perspective for Council and Local Board policies and initiatives.Activities that BID Partnership Programmes undertake include:• Street environment such as

providing cleaning services in addition to existing Council services and beautification projects

• Safety and security• Marketing and promotion

• Collective purchasing agreements• Events • Service provision (additional

to standard Council service or chargeable)

• Local improvement projects • Advocacy to local and central

Government and agencies• Business development,

mentoring, networking and training

• Communications• Sustainability and resilience

planning• Urban form such as heritage

projects or improving the accessibility of businesses

A BID is run by a governance board or executive committee, which is elected by members and ideally represents the types of businesses within the BID.To achieve a mandate, the Warkworth ballot must achieve a threshold of at least 25 per cent of the total voting forms returned. Of the returned voting forms, a minimum of 51 per cent of the votes must be in favour of the proposition.If a ballot is unsuccessful, there is a minimum two-year stand-down before an association can seek another ballot.

Voting on the BID will close on Wednesday April 20. Photo majorlook.co.nz

BIDfeature22 Mahurangimatters February 17, 2016

What will a BID cost?

The BID targeted rate is billed per commercial property (within the designated boundary) on your normal rates bill.

The rate includes a base fee of $250, plus 0.000418* x Capital Value

Example:

A property has a Capital Value of $1,000,000

$250 fixed fee + (0.000418 x $1,000,000) = $668.00 per annum

PROPERTY HAS ONE TENANTTotal fee divided by # of tenants = $668.00 / 1 =

• $668.00 per tenant per annum OR• $167.00 per tenant per quarter OR

• $55.67 per tenant per month

PROPERTY HAS FIVE TENANTSTotal fee divided by # of tenants = $668.00 / 5 =



PROPERTY HAS THREE TENANTSTotal fee divided by # of tenants = $668.00 / 3 =



Assuming each tenant shares the rate charge equally:

NOTE: *0.000418 is based on current CVs from Council and can be subject to change. Figures exclude GST. To find out the CV of your property, refer to the rates information on the Auckland Council website.

For more information go to www.warkworthbusiness.co.nz

The case for ….

BID better for WarkworthBy Warkworth BID coordinator Rachel Callender, on behalf of the Warkworth Area Business Association (WABA)

A strong local economy is built on the performance of local businesses that create jobs and generate financial prosperity including profits, wages and salaries, which are then spent in the local community, benefiting everyone.A Business Improvement District (BID) is funded by all businesses in a defined area and provides support and initiatives to help them succeed and generate financial prosperity. Currently, there are 80 financial members contributing to WABA out of more than 340 businesses in the BID area. If a BID is established, all businesses in this area would contribute and have a say about what should be done and when.WABA has provided input to NZTA, Auckland Council and Council Controlled Organisations (CCOs) on many issues, offered training seminars and managed community events. As a volunteer-run organisation, we carry out just a fraction of the advocacy, business and community activities that Warkworth needs.The reality is that in today’s busy world, it takes time and money to get things done. WABA estimates that to remove the reliance on volunteers, a budget of about $180,000 per year is needed to provide expertise and real benefit to businesses.One question most often asked about the BID is, ‘What’s in it for me?’ The answer – a lot!For commercial and industrial businesses, benefits include savings through economies of scale on service contracts – bulk purchase agreements. For example, the Rosebank BID improved the quality of security services and negotiated favourable rates by having one contract for all rather than businesses contracting their own security. The North Harbour

BID carried out a similar exercise resulting in decreased crime and lower insurance premiums providing real savings for businesses.For landlords, BID activities that increase foot traffic and create a vibrant town will attract more demand for commercial premises meaning a larger pool of tenants and secure rental income.For retailers and service providers, raising awareness of their offerings and where to find them through business directories, a strong online presence and impactful signage will increase the volume of customers and clients.The BID will also provide a coordinated, stronger voice to get Council, CCOs and the Local Board to respond to Warkworth’s needs and take action on issues like roads, parking and infrastructure – issues that affect everyone. For example, in Torbay, Council transferred $200,000 to the BID to locally manage a significant infrastructure project. When it comes to advocacy, the message is clear – Council prefers to deal with one united group.So at voting time businesses have an important choice – they can decide to all contribute and work together; or let a few businesses influence decision making; rely on volunteers and donations; and wait for change to happen around them.Warkworth is fortunate to have had generations of people dedicated to supporting our town and local community, but in today’s fast-paced environment, a voluntary approach is unsustainable.WABA believes a BID will benefit everyone, make our town vibrant and prosperous, and provide greater opportunities for generations to come.

☑☑☑

NO to B.I.D

NO to ongoing and increasing

NO to compusory contributions and council involvement in business affairs

YES to joining a true business led, expansive and progressive Business Association model. Join us as we

reunite the Business Community that has been divided by the B.I.D

Warkworth Commerce & Industrial Association

Register your interest to sign up

Name:_______________________________________________Business: _______________________________________________Email:_______________________________________________Phone: _______________________________________________Address: _____________________________________________________________________________________________________________________________________________

Cut out and return to: Warkworth Commerce & Industrial AssociationPO Box 575, Warkworth 0941Or Email us at for an electronic copy

The case against …

BID divides communityBy Warkworth Commerce & Industrial Association (WCIA)

BIDfeature 23MahurangimattersFebruary 17, 2016

The purpose of the recently-formed WCIA is to collaborate on business related matters with all local business, and ‘yes’ the BID was the motivating mechanism that has brought so many like-minded members to subscribe. WCIA already has more members from within the BID boundary than the Warkworth Area Business Association (WABA), with strong support from retail, commercial, industrial and landlords.The BID is an Auckland Council initiative which is using WABA to promote this erroneous policy. If the BID is successful, it gives excessive power to WABA to extort funds through targeted rates as a percentage of each commercially rated property within the boundary. There is no escaping this – you must pay your rates and, despite WABA and Auckland Council denials, the rate can be changed without much fuss.Whenever a BID has been unsuccessful, our investigations show Auckland Council has amended its process to prevent further BID opponents utilising such methods again. Plugging the holes if you like. This shows how much the Council want these BIDs in all business districts. A recent meeting with Local Board members clearly indicated these BIDs in all districts are second

only to the Mayor’s pet rail project, to enable Council to stop funding any form of business related spending or promotion of the area, Santa parades, Kowhai festivities, etc.Council has funded WABA’s promotion of the BID to the sum of $75,000 according to media reports over a recent period leading up to this vote. Not that this appears on WABA’s financial reporting made available to its members to date. Of course this money doesn’t come from Council, it’s actually the ratepayers. Yes you!Our enquiries show us that all is not well in districts where BIDs have been implemented. Once again, despite the denial of WABA and Council,

the simple fact that as few as 12.5 per cent of eligible votes can see the BID succeed is not democratic. This is how the policy has been written, and it relies on the apathy of businesses to not want to know the facts until it’s too late. This is why the WCIA is presenting a balancing view for the discerning local business fraternity to make educated and informed decisions prior to voting.Other unrelated issues WCIA are currently advocating on are local postal problems, Western Collector route progress, non-publicly notified resource consent applications that will affect the whole of Warkworth, growth of industry in the area particularly hi tech – high value business.We wish to acknowledge the generosity of many of our members who over the years have donated to the whole community to see such valuable community assets like the Jane Gifford, the wharf and river, Santa parades, Kowhai Festivals, trolley derbys, local security and the like. Such generosity will not be as forthcoming should these members be forced into the proposed target rated funding of WABA.If you haven’t registered to vote, please do so, registrations have not closed.The whole community will be divided if the BID is implemented.

Funding available for walkway projectsApplications to a $28,660 fund to improve access to the outdoors are now open.The New Zealand Walking Access Commission’s Enhanced Access Fund supports projects that provide free, certain, enduring and practical outdoor access for the public and is open to individuals and groups. A maximum of $25,000 may be allocated for any one project and applications close on March 31. Funding will be prioritised towards projects that create enduring access, such as negotiations to secure access agreements, legal or survey costs of obtaining access, or the cost of obtaining Resource Management Act consents. Other initiatives such as signage, installation of stiles and other activities that improve existing public access are also eligible. In the five years the Enhanced Access Fund has been available, funding has been awarded to 81 projects across New Zealand. The Commission’s chief executive Mark Neeson says many groups struggle to meet the cost of building outdoor trails.“The fund is there to support individuals and groups around New Zealand that are doing fantastic work to help improve and develop access opportunities. It is our pleasure to support access projects for the benefit of New Zealanders today, and for future generations.”Info: walkingaccess.govt.nz.

Documents

Mahurangi Matters, BID Feature, 17 February 2016