Agenda item

(Cabinet Member with Special Responsibility Councillor Hanson)

Report of Head of Regeneration & Planning Service

(Cabinet Member with Special Responsibility Councillor Hanson)

Cabinet received a report from the Head of Regeneration & Planning to provide information to enable a decision on endorsing the draft proposals for the Lancaster Business Improvement District, to enable progression to a ballot with the aim of formally establishing the BID.  The report updated Members on potential pre- and post- ballot issues and resource implications in relation to the role of the City Council in the BID development/implementation.

The options, options analysis, including risk assessment and officer preferred option, were set out in the report as follows:

On submission of a final proposal unless it failed the regulatory and policy tests outlined in paragraph 2.2 of the report the local authority was effectively obliged to endorse the BID proposal and approve it to go forward to a ballot.  The draft proposals provided a good indication of whether it was likely the Council would need to use its veto powers. 

The draft proposals did not conflict to a material extent with any published polices and a successful BID should actively support the Council’s corporate objectives particularly in the areas of Economic Growth, Clean Green & Safe Places and Community Leadership.   The informal work of the Steering Group in canvassing opinion and consultation appeared to show a good level of support for the way the BID proposals had been shaped, particularly around the development of broad objectives with some specific highlighted actions.     

The proposals clarified the structure of the proposed BID levy and how the financial burden of the BID was to be distributed among ratepayers.  An approach which targets hereditaments over £10K might appear to place a burden on higher payers, but the vast majority of the rateable value in the town centre area was attributable to these hereditaments in any case.  While there were numerous hereditaments below £10K the actual total RV, and therefore potential levy take, from these properties was not significant. 

The amount of prior discussion between the BID proposer and the local authority before submitting the BID draft proposals to the authority had been sufficient and it was expected consultation would continue up to the submission of final proposals.  The costs incurred and due in developing BID proposals, canvassing and balloting have been budgeted for within the Council’s grant award to the Lancaster Chamber. 

The draft proposals did not fully meet the core documentation requirements and there were outstanding matters to be resolved in the final proposal document.  But these were either minor issues of content or technical matters around levy collection, distribution and operations which need to be arranged between the Council and the final BID body (likely to be either the Lancaster Chamber or North West Chamber) who would receive and use the BID levy monies 

The preferred Option was therefore Option 2,to endorse the draft proposals and associated draft baseline document.  It followed that an appropriate level of delegated authority was required to ensure outstanding matters were addressed and final proposals could be approved to move forward to ballot.  As these issues were mainly technical and operational it was appropriate for this to be undertaken through an officer report by the Chief Executive in consultation with Management Team.

Councillor Smith proposed, seconded by Councillor Sands:-

“(1)      That the draft proposals for the Lancaster Business Improvement District (BID) are endorsed as being in compliance with statutory regulatory requirements.

(2)        That approval of Final BID Proposals and the issuing of instructions to proceed to ballot are delegated to the Chief Executive.

(3)        That the content of the draft Operating Agreement (Appendix 3a to the report) and subsidiary draft Baseline Agreement (Appendix 3b to the report) is noted and final approval of the formal BID implementation framework is delegated to the Chief Executive. 

(4)        That the contents of the initial baseline statement (Appendix 4 to the report) are noted and approved for use in pre- ballot consultation and marketing alongside final BID Proposals.”

(5)        That Councilor Hanson be advised of concerns specifically regarding:

q       Financial implications including 3 year funding commitment

q       Duties of street ambassadors including possible duplication

q       Free parking on Events days

and be requested to table these issues in forthcoming discussions with the BID group.”

Councillors then voted:-

Resolved:

(6 Members (Councillors Barry, Blamire, Bryning, Leytham, Sands, and Smith) voted in favour, and 1 Member (Councillor Hamilton-Cox) abstained.)

(1)        That the draft proposals for the Lancaster Business Improvement District (BID) are endorsed as being in compliance with statutory regulatory requirements.

(2)        That approval of Final BID Proposals and the issuing of instructions to proceed to ballot are delegated to the Chief Executive.

(3)        That the content of the draft Operating Agreement (Appendix 3a to the report) and subsidiary draft Baseline Agreement (Appendix 3b to the report) is noted and final approval of the formal BID implementation framework is delegated to the Chief Executive. 

(4)        That the contents of the initial baseline statement (Appendix 4 to the report) are noted and approved for use in pre- ballot consultation and marketing alongside final BID Proposals.

(5)        That Councilor Hanson be advised of concerns specifically regarding:

q       Financial implications including 3 year funding commitment

q       Duties of street ambassadors including possible duplication

q       Free parking on Events days

and be requested to table these issues in forthcoming discussions with the BID group.

Officers responsible for effecting the decision:

Chief Executive

Head of Regeneration & Planning

Reasons for making the decision:

The decision enables the Final Proposal and approval process to be undertaken in the autumn and progression to a ballot with the aim of formally establishing the BID should follow towards the end of 2012.  In working towards implementation of Business Improvement Districts the Council will be achieving and/or reviewing and improving upon a number of its corporate objectives/outcomes as defined in the Corporate Plan 2011-14.  The draft BID proposals will actively support Economic Growth, Clean Green & Safe Places and Community Leadership outcomes, success, measures and actions.  Support for development of a BID in Lancaster is a Priority Action in the Lancaster Cultural Heritage Strategy.