Rosebud Promotional Levy Renewal Consultation · PDF filePromotional Levy Renewal Consultation Report ... Management and marketing programs are ... This meeting was held to discuss

Rosebud

Promotional Levy Renewal

Consultation Report

Conducted for Rosebud Chamber of Commerce

By

Maznik Consulting

In partnership with Rosebud Chamber of Commerce

January 2011- March 2012

Council Meeting - Monday, 14 May, 2012

Item 2.7 Attachment 2

Rosebud Village Promotional Levy Renewal Consultation Report, MARCH 2012

Maznik Consulting Page 1

1. Purpose of Report

The purpose of this report is to:

report on the outcomes of the consultation that was undertaken to seek

feedback on the current promotional levy program operating in Rosebud

Village

determine the level of business owner /tenant support for the program to be

renewed for another seven years, commencing July 1 2012.

This report provides details of the consultation and opportunities that were presented

to businesses to allow them to provide feedback on the current program, raise any

issues, put forward any suggestions and clarify the intentions of the new proposal.

The Shire requires a positive indication of business support by more than 50% of

properties in the program prior to any formal declaration process commencing,

therefore the two main goals of the consultation were to:

talk about the proposal, outcomes and benefits to as many

businesses/owners as possible and give them the opportunity to ask

questions and be informed about the overall promotional levy process

obtain a signed pro forma in support of the proposal by the majority of

businesses who will participate and benefit in the future program.

2. Background – The case briefly for these programs

A successful town centre or main street is a critical component of a thriving local

economy. Therefore, strategies and approaches to improve the viability and vitality of

these main streets are becoming increasingly important for local government. There

is currently approximately 70 of these programs operating throughout Victoria, which

are providing for integrated approaches to collectively marketing and promoting the

main street offer and value to customers and community.





These programs are considered a best practice approach to supporting local main

street economies as they promote partnerships between councils and businesses,

provide opportunities to respond to challenges and enable a proactive and

sustainable approach to the development and success of the main street and

businesses within it.

“With local shopping precincts facing mounting challenges, changing consumer

demands and increasing competition, now more than ever a collective approach to

marketing and promotions is critical! Management and marketing programs are

playing an increasingly important role in supporting the viability and health of main

street activity centres in Victoria”.

Economic Importance of Main Streets, Essential Economics 2011

3. Current Rosebud Program

Rosebud Village has had a program for ten years (two five year programs.) The

current 5 year program collects approximately $73,000 per annum from 334

Businesses. Business Owners,/operators pay either a flat charge of $216 or $ 372

depending on their location in the commercial precinct.. In addition the properties

that have significantly more floor space than others pay $1129.00. For example Aldi,

Safeway and Ritchies Supermarket

Some of the achievements over the past ten years have included:

Development of a signature event – The Rosebud Kite Festival that attracts

over 15,000 people annually and injects significant income in into the local

economy and profiles the Rosebud businesses and foreshore

Development of successful Business Excellence Awards that promotes best

practice and encourages personal and professional development amongst the

Rosebud businesses

Installation of gateway signage, banners and flags to assist with the branding

of the Rosebud and improve the amenity and appeal





Website development to create an online presence

Working in partnership with council to implement Streetscape improvements

that will enhance the look and feel of the area

Business mentoring programs and professional development

A full list of achievements and outcomes is provided as attachment 1

4. Proposal for New Program 2012 to 2019

In meeting with businesses/owners the following key components were proposed by

the Rosebud Chamber of Commerce:

That there be NO increase proposed on current levy charges except for CPI

annually. Therefore amounts of $372, $216 or $1129.00 (depending on their

location within the commercial precinct and size of rateable land)

The same properties currently included in the current scheme be included in

the new scheme.

Approximately $73,000 is to be raised collectively, annually

Move to a seven-year timeframe as opposed to a five-year timeframe.

5. Consultation Process

The following consultation process was undertaken:

5.1 Meeting with Rosebud Chamber of Commerce

This meeting was held to discuss project issues, aspirations for the program and

the proposed broader consultation process with wider traders. The achievements

of the current program were also discussed as well as possible plans for the

future. The package of information to be delivered and communicated to the

operators/owners was also confirmed at this meeting.





5.2 Communication of Proposal - Personal Business Visits

The aim of the visits firstly was to provide every business in the proposed

scheme with a package of information which contained:

Details of the current program

What has been achieved

What is being proposed for the future

Why its continuation is important for the future.

Each business was initially delivered this information in the second week of

February, 2012. The following information was included:

Summary of achievements of the Chamber and the activities that have

been funded.

Letter and overview of the proposal from the President of Chamber of

Commerce Kevin Sheaves.

Support form with request to indicate a Yes or No to continuation of the

Scheme for 7 years. This also included a invitation to attend a workshop

on 14 March to discuss the proposal and any issues further. A reply paid

envelope was also included to encourage the return of the form.

A copy of the information distributed is provided in attachment 1

Once the businesses were equipped with this information the follow up personal

visits were scheduled to allow businesses to discuss individually, raise any

concerns and ask any questions. The visits to businesses were conducted

between the 20th February and 25 March 2012. All businesses (with the

exception of Rosebud Plaza) were visited at least once; most were called on

twice and some as many as three or four times. The challenge with the business

visits is that very often the person that is able to sign the form is not available or

they are busy, and in some cases they are not even on site. There are also a

considerable amount of retail chain stores in Rosebud where Managers do not





have the authority to sign a support form. It can get passed onto head office but

getting a response is difficult. When the Manger or operator was not available a

message was left along with another support form to forward on and respond to.

Phone and fax numbers were also indicated to provide an additional point of

contact in their own time. In some instances the information was then emailed to

business owners.

5.3 Plaza Consultation

The Rosebud Plaza is owned and managed by Colonial First State Global Asset

Management. With the current promotional levy each of the businesses contributes

$216.83 and enjoys the benefits of the collaborative marketing and promotions. In

the past ten years there has always been Plaza representation on the committee of

the Chamber of Commerce. Formerly the centre manager and now the Retail

Promotions Coordinator attend meetings regularly and there is very good working

relationship and integration of ideas between the Plaza and Chamber.

Colonial First State currently pre pay the levy for each of their businesses and

recoup the funds from the business respectively through outgoings. In some

instances they have been unable to recover some of the pre-paid charges through

businesses exiting the Plaza and leaving some debts which has prompted some

questions from Head office in regards to the benefit and process of the levy.

Fortunately the Plaza management, Head office, Council and the Chamber have

been able to resolve these concerns over the course of the consultation period and

agree to support with the following conditions:

Vacant Premises

Where an eligible commercial premise remains continuously vacant for at least 1

calendar month despite the active efforts of the landlord and/or agents, then that

landlord/agent may apply for a ‘pro rata reduction” from the Charge for that part of

the vacancy in excess of 1 calendar month in any financial year.

Sending of Invoices

The Shire can arrange for invoices to be sent directly to the tenants of Rosebud

Plaza. For this to occur the property owner ( Plaza) would need to write to the Shire





asking for this to occur but also acknowledging that the charge is still on the

property. The charge cannot be put the charge of the business as it is outlined in

legislation that the charge is on the property. If this was to occur the initial and

reminder invoices would be sent to the tenants with the overdue invoices sent to the

property owners.

Therefore Colonial First State as the owners and ultimately those that are liable to

pay agreed to support the program on behalf of their tenants. The tenants of the

Plaza have been provided with the package of information and support form,

however they were not individually followed up personally as was the case with

businesses outside the Plaza area.

It is very important to the future success and development of Rosebud that the

Plaza businesses are included and contribute to the levy. They are an integral part

of the area and in marketing and promoting Rosebud they are included and receive

benefit. They have the same participation opportunities as other businesses

externally and the Chamber does and will continue to service them. There are many

examples of enclosed privately owned shopping centres within special rates and

charge areas and they are always identified as contributors to the scheme as

benefits and value can be demonstrated. The great thing about these partnerships

is that each entity can leverage from each other’s activities offering better value for

everyone all round.

5.4 Chamber of Commerce Consultation with Businesses

From the outset the Chamber of Commerce was passionate about assisting people

to understand the benefits of the program and obtain signatures of support. This

assists the process as businesses value other businesses experience and

perspective. Having businesses educate and inform other businesses is a very

effective and useful way of getting the message across successfully and creating a

common understanding of what is trying to be achieved. President Kevin Sheaves

and the entire Chamber committee did a great job in approaching traders personally

and explaining the Chambers position and making the businesses understand the

value.





The Chamber’s Marketing Coordinator, Alison Doherty, has a great deal of local

knowledge and was extremely supportive in disseminating information and

enthusiastically presenting the case to businesses for the program. Alison was also

able to further follow up when she was conducting her normal centre manager duties

at Rosebud.

In summary the consultation process was thorough. It delivered concise information

to assist people to make informed decisions if they wanted to. It provided various

opportunities for people to be engaged which included; one on one with independent

consultant, workshop, and discussions with other traders or the Marketing

Coordinator. It provided valuable feedback and responses to guide the future

direction of the Chamber.

5.5 Promotional Levy Workshop

The Rosebud workshop was attended by 15 people representing both owners and

tenants. A brief presentation was provided to explain the rationale and purpose of

the promotional levy programs and why they should be supported by the business

community. The majority of time was allocated to discuss any issues and

opportunities for the future to assist the Chamber in its business planning. Attendees

were also provided with the opportunity to ask any questions they had in regards to

the renewal of the levy and future proposal.

Some of the recurring points identified at this workshop included:

Areas to Improve

Providing more targeted support and assistance to businesses to get involved

in the Kite Festival. Really spelling out the benefits and opportunities

More joint promotions with Rosebud Plaza

Improve on-line and email communication between the Chamber and

businesses





Ideas

Look at expanding the kite festival over 2 days of weekend

Continue with employment of part time Marketing Coordinator/Centre

Manager to co-ordinate activities of the Chamber

Continue with Business Awards in Conjunction with Rotary Club of Rosebud

Development of Murals in key locations

Linking in community and cultural performances at Christmas

Supporting local tourist and community events run by other groups. For

example, Short Film festival, Australia Day and the Pet’N’Pony Show

Review the name of the Chamber of Commerce -

Continue to extend the Wooden Carving Project, installing at least one more

carving each year. Investigate other artistic elements to tell the story of

Rosebud Village. Investigate an artist trail .

Forging stronger links with all community groups

Maintain and further develop the Rosebud Chamber website, growing the

customer data base and sending out e-newsletters to local residents or other

interested visitors with news directly from the stakeholders in the Town

Grow the Christmas Parade

Continue to work with Council and advocate for improved amenities, such a

play park, swimming pool facility, infrastructure and streetscape

6. Consultation Outcomes

There are 334 rateable properties identified in the geographical area of the proposed

special levy scheme. Approximately 299 of these are identified as active and eligible

for the purposes of this exercise. Active and eligible excludes properties that are





vacant and non- rated. These properties are home to a range of business types who

have a diversity of needs, issues and expectations. A support form was presented to

these businesses which provided an overview and purpose of the levy proposal and

aimed to get a signed response to the following statement;

“I support the renewal of the promotional levy to continue to collectively market and

promote the Rosebud Village (please circle either Yes or No)

Yes No

We were endeavouring to achieve more between 60% and 70% signed support from

‘active and eligible’ businesses which is extremely challenging in today’s business

climate. 246 businesses actually provided a recorded responded to the form

The table below illustrates the significant number of business indicated yes to the

promotional levy continuing- 217 signed Yes.

This represents 88% of the total businesses that actually responded to the support

form and 72% of the active and eligible businesses. A very small portion of

businesses (29 in total) committed a NO to the proposal which represents just 9% of

the total active and eligible businesses.

The summary of responses is categorised as follows;

Response Number

Signed Yes 217

Note 66 of these Yes businesses represent the

Plaza businesses where the Yes is provided on

behalf of the property owner

Signed No 29

No response 37 (did not provide any response, signed or

verbal)





Non Rated (Charity) 21

Note – There were an additional 3 support forms

provided by these non rateable properties

Vacant 14

Expressed reluctance to support Verbally 15

Note - Active and eligible businesses excludes vacant, non- rated and phone towers.

This is an excellent result for Rosebud. The majority can generally see value,

benefit and good intentions behind the promotional levy and are keen to work

together to make better outcomes for Rosebud and their business. There is a good

awareness of the most of the events and activities.

Not everyone supports the program at this stage nor understands how it works and

this is not uncommon in centres with special rates and charges. What is encouraging

is that the number of people formally indicating a No is not significant and with

continual improvement, development of activities and further engagement with the

business in regards to what they want from the program this opposition may further

diminish.

6.1 Feedback and Observations from Consultation

The following provides some frequent feedback and observations from businesses

when discussing the proposal and distributing information

Why do people say no?

It is easier to say No

Cannot see the value for their business. Believe it does not benefit them

personally. They are too focused on getting a specific return for their

business. For example a tree outside their shop.

Cannot see how working together to collectively market and promote the

Village and make it a better place can positively affect their business. Don’t

understand the broader benefits.





Think Council should be doing more for them, they already pay rates and they

are not happy with certain areas of Council. This could be parking,

maintenance, streetscape, signage etc

Believe that they don’t need to be marketed and promoted. They say they

have their own clients and believe they don’t need assistance. Once again

not acknowledging the broader value and other benefits of business

development networking with other businesses etc

Believe that the funds favour a particular area of the town or a particular group

of businesses. See some inequity in the way that the funds are utilised

Don’t understand what they get for their money , not aware of what the

Chamber has done with the funds previously

Can’t afford it, too many bills.

Why have people not responded?

apathetic

they have not made up their mind

it’s not a priority

they don’t understand the concept

they think if they ignore it, it will go away

not in their business location very often

don’t want to be seen to supporting the proposal either way

not sure that they will be around in the future.

Why do people say yes?

They value and understand the concept of businesses working together,

helping each other and helping themselves

They have had involvement with the Chamber, Centre Manager and Council

and can see the good intentions

They have directly benefited from participating or experiencing an activity

funded through the current program previously. This was certainly the

experience of those who have participated in the Kite Festival and Business

Awards





They understand that it is about promoting, developing and marketing

Rosebud as a whole, which has positive effects and benefits to their business

They appreciate that the contribution represents good value particularly given

what little impact less than $372 in advertising and promotion can achieve for

a business operating in isolation

They value the community relationships that many of the activities promote

They get value from being a part of the Chamber group and want to support.

Opportunities for Improvement

Improve communication with businesses to inform them of what activities are

occurring and how they can get involved. For example develop a tip sheet on

how to maximise their involvement in the Kite Festival

Linking in more businesses with the activities of the Chamber. For example

meetings and networking

Increase communication to businesses about what the role of the Chamber

and Marketing Coordinator are and why they are ‘different’ to the role of

Council

Increase professional development and networking opportunities

Further develop website

Continue with flag poles and streetscape implementation

Mindful of spreading activities throughout the entire precinct

Linking in with schools, community groups and sporting club community more

Tapping into artistic heritage and culture. Tell the Rosebud story

Promote achievements of the Chamber projects to the businesses





7. Conclusion

Rosebud commercial precinct is a large, diverse, unique and appealing main street

that has benefited from integrated approaches to marketing and promotions through

a levy for a number of years. It has developed two strong signature events that are

very well known and respected in the ‘mainstreet’ industry in the Kite Festival and

Business Awards. These two events alone can, and do, provide significant benefits

to all businesses in the Rosebud program. There are a number of other activities

that the levy provides which stimulate business development, marketing, promotion,

tourism and increased commerce. There is a positive level of support for the

renewal, minimal formal opposition and the Chamber are very committed to working

with the businesses and the Shire to further develop and improve the program.

Businesses are now informed about the proposal and most understand the intentions

which will give the Mornington Peninsula Shire Council confidence when moving

forward with the formal levy declaration process for Rosebud.



Documents

Rosebud Promotional Levy Renewal Consultation · PDF filePromotional Levy Renewal Consultation Report ... Management and marketing programs are ... This meeting was held to discuss