Agenda item

(Cabinet Member with Special Responsibility Councillor Hanson)

Report of Chief Officer (Regeneration & Planning)

(Cabinet Member with Special Responsibility Councillor Hanson)

Cabinet received a report from the Chief Officer (Regeneration and Planning) which provided context and information for the endorsement of proposals for a Lancaster Business Improvement District Renewal Ballot in November 2015, as required by statute.  The report updated members on potential pre and post ballot issues and resource implications in relation to the City Council’s role in the BID renewal process.

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

On submission of a Final Renewal Proposal the local authority is obliged to endorse the BID proposal and approve it to go forward to a ballot if it meets the regulatory and policy tests mentioned in paragraph 2.3 of the report. The draft proposals provide a good indication of whether it is likely the council will need to use its veto powers.  

The draft proposals do not conflict with any published council 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 Lancaster BID in canvassing opinion and consultation appear to show a good level of support for the way the BID proposals have been shaped.

The amount of prior discussion between the BID proposer and the local authority before submitting the BID draft proposals to the authority has been sufficient and it is expected consultation will continue up to the submission of final proposals.  The costs incurred and due in developing BID proposals, canvassing and balloting have been allowed for within the BID’s current budget.

The decision to incorporate and take on formal accountable body status is a natural progression for Lancaster BID, one which the majority of national BIDs have taken at the outset or at renewal.  The current unincorporated body Lancaster BID, while not formally accountable for BID funds, already acts as employer to the paid BID staff. The current Lancaster BID Management Committee believes incorporation will allow it to achieve significant administrative savings, better value for money and greater local control.

            There are no advantages in holding over on endorsement pending Final Proposals (Option 1) and officers consider there are no material alterations required (Option 3).  The preferred Option is therefore Option 2, to endorse the draft Renewal Proposals.  It follows that an appropriate level of delegated authority is required to ensure outstanding matters are addressed and final proposals can be approved to move forward to ballot.  As these issues are mainly technical and operational it is recommended this be undertaken through a report and decision by the Chief Executive.

BID legislation allows for the council’s administrative costs to be recovered through the BID levy and the councils charging has been made clear to Lancaster BID and will be kept under review. Officers have ensured its administrative charges are appropriate, commensurate with the task, and clear to those who will vote (refer to Financial Implications in the report).

Implementation of BIDs is usually underpinned by formal legal agreements between the billing authority and BID delivery body (refer to Background Papers).  An Operating Agreement (OA), the formal contract between the BID body and the local authority, should be entered into setting out the various procedures for the collection, payment, monitoring and enforcement of the BID levy.  The current OA between the council and North West Chamber of Trade (Appendix 3a) is regarded as having provided a sound basis for the operational relationship to date and will be redrafted to reflect the new relationship with the proposed stand-alone Lancaster BID body.

            A feature of the OA is the 'baseline' – a statement/measure of the existing services provided by the city council to the BID area.  Production of a baseline and its formal incorporation under the OA (as a “Baseline Agreement”) is useful to assist potential levy payers identify added value of services proposed.  For example, if the council is involved in delivering services solely for the improvement or benefit of the BID area (funded using the BID levy or other contributions to the BID body) it provides a benchmark to ensure true additionality for BID resources.

While it is regarded as best practice that these operational matters are agreed in principle prior to a ballot (mainly for clarity and as an additional ‘selling point’ over the BID election period) - the agreements are formally agreed and signed post-ballot.

The city council will continue to be liable for the levy on rateable property it occupies/holds should a ballot be successful (refer to Financial Implications in the report).   As a potential levy payer the council is eligible to vote in a ballot.  There are no statutory rules on how individual local authorities treat this part of the process.  Members previously escalated the voting decision to Full Council (who considered a report just prior to the voting period) and officers have anticipated that this arrangement will continue.

            There is no guarantee that a BID Renewal Ballot will be successful. If there is a ‘no’ vote any remaining funds from the first BID term will be returned to the council who will distribute it back to levy payers under procedure detailed in the 2004 BID regulations.                                                                                     

Councillor Smith proposed, seconded by Councillor Pattison:-

“That the recommendations, as set out in the report, be approved.”

Councillors then voted:-

Resolved unanimously:

(1)             That the draft Renewal Proposals for Lancaster Business Improvement District (BID) Renewal Ballot are agreed as being in compliance with statutory requirements.                                                                                      

(2)             That the approval of Lancaster BID final Renewal Proposals and the issue of an instruction to proceed to ballot is delegated to the Chief Executive.          

(3)           That the current Operating Agreement and Baseline Agreement are revised to reflect proposed changes to the accountable body and the current council service provision respectively, with approval and post-ballot sign-off of the final documents delegated to the Chief Executive. 

Officers responsible for effecting the decision:

Chief Executive

Chief Officer (Regeneration & Planning)

Reasons for making the decision:

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 2015 -18.  The draft BID Renewal Proposals will actively support Sustainable Economic Growth, Clean Green & Safe Places and Community Leadership outcomes, success, measures and actions.  Support for a BID in Lancaster is a Priority Action in the Lancaster Cultural Heritage Strategy.