BUSINESS IMPROVEMENT DISTRICTS

A BID is a public/private partnership in which business elects to boost the vitality of their area by making collective contributions to maintenance, development and promotion of their commercial district. London Riverside BID is planning to represent and work with local businesses over the next five years by establishing the Business Improvement District. This is a new form of business-led area management that can direct and influence the future business landscape through additional services and world class business-led initiatives.

A BID is a unique opportunity for businesses to generate additional funding, which is specifically ring-fenced for the BID area. Furthermore, businesses then have a direct say on how those additional funds are re-invested in the area. Additional funding is created by establishing a small annual levy on existing business rates. For example, if the rateable value of your business unit is £10,000 per annum, the annual levy would be £100 – less than £2 per week! London Riverside BID would expect to raise £100,000 on the BID levy and there is a possibility match funding could be achieved.

In the USA some BIDS have been up and running for more than 20 years, but in the UK, Business Improvement Districts are relatively new. However, there have now been over 30 successful UK bids, of which 4 are industrial estates : Hainault Business Partnership; Winsford 1-5 BID; Albion Business Consortium and Bolton Industrial Estate Partnership.

The BID will be in a defined geographical area and initially run for five years to deliver the services that BID members feel will be valuable additions to those provided by the council. It is anticipated that within the BID area, 250 businesses will be levied.

HOW WILL THE BID WORK?

Business in the specified areas will be asked to vote on a published BID proposal – a simple majority must be in favour and the YES votes must represent more than half of the total rateable value of those voting. The key to a BID is that following a YES vote every business is required to contribute.

All of the money raised is spent in the BID area and services provided by the BID will be over and above those provided by the council.

On securing a successful vote, the ring-fenced funding will be collected by Havering Council, who will in turn transfer all the funds into a dedicated account for the BID to use for its own services. There is no hassle or extra paperwork. The levy will be collected in one annual instalment, through the business rate system.London Riverside BID will then be responsible for running the services on behalf of the business community. A voluntary board consisting of local business representatives would direct London Riverside BID and a steering group will decide how the money should be spent in the area based on the commitments made in the BID proposal.In February 2007 you will be given the opportunity to vote and by doing so will agree to establish a Business Improvement District in Rainham.