Agenda item

[Report of the Director for Regeneration. To be introduced by the Cabinet Member for Economic Development, Social Inclusion & Sustainability]The Cabinet decision will be:
1)  to note the contents of the proposed Wood Green Business Improvement District (BID)  business plan
2) to approve the recommendation to commence a Business Improvement District (BID)  Ballot
3) to commit to support this Business Improvement District (BID)  at Ballot Stage

The Cabinet Member for Economic Development, Social Inclusion and Sustainability introduced the report which set out the proposal to set up a Business Improvement District (BID) in Wood Green. This was an initiative developed and led by businesses in Wood Green, aimed at revitalising Wood Green Town Centre. This decision had come about as result of the success of other BIDs in London. If it succeeded in achieving its proposed objectives, it would make a positive contribution to business growth in Haringey and as such be an integral part of the wider Wood Green Regeneration Programme. BIDs across the UK had been proven to be useful vehicles to bring about improvements to struggling business districts. A BID in Wood Green would be a statement of intent that the local authority was supporting local businesses in their endeavour to improve their businesses.

There was a healthy level of appetite and support for a BID amongst Businesses in Wood Green.

As per ‘Business Improvement Districts (England) Regulations 2004’ the Council was obliged to respond to the request of the BID proposer- Wood Green BID Steering Group and support them in their attempt to set up the BID. As the Council occupies premises as a ratepayer in the proposed BID area, it would also be entitled to vote.

Membership of a BID in Wood Green would allow businesses to come together and forge a strong partnership, collective voice and influence the development of the area and benefit from joint investment and procurement exercises.

In response to a question from Councillor Engert, it was noted that the BID was a first step to support businesses in Wood Green. The basic partnership led services such as responding to crime and anti-social behaviour, and improved cleanliness were not being fully delivered as Partners had also incurred government reductions in funding. The Wood Green BID would be owned and led by local businesses, addressing issues and concerns as well as creating opportunities for cost saving and capacity building exercises.

The Cabinet Member outlined that business have to be comfortable with the BID and feel that it allows them to be able respond to changing circumstances in Wood Green. If a more fully pedestrianised area was wanted by residents and businesses, then this could be taken forward. However, the decision, before Cabinet was to agree the consultation on the BID, and this type of decision making could come forward much later, once the BID was established and working.

RESOLVED

1.            To endorse the Wood Green BID Proposals, formally submitted by the Wood Green BID Steering Group in accordance with the BID Legislation.

2. To note that the Wood Green BID Proposals do not conflict with any formally adopted or published policies of the Council.

3. To instruct the Returning Officer to hold a BID Ballot in relation to the Wood Green BID Proposals aiming to hold the ballot on 1^st March 2018.

4. To agree to delegate authority to the Director of Regeneration to vote ‘yes’ on behalf of the Council in the Wood Green BID Ballot, as a non-domestic ratepayer of Council-owned properties in the proposed Wood Green BID area.

5. In the event that the outcome of the BID ballot is in favour of the Wood Green BID, Cabinet agreed to delegate authority to the Director of Regeneration to make decisions on behalf of the Council in connection with, and during, the process of the setting up of the Wood Green BID, including authority to finalise two agreements (a Baseline Agreement for the Provision of Standard Services and an Operating Agreement) with the BID Company regarding the operation of the BID, ( in consultation with Assistant Director of Corporate Governance)

Reasons for decision

A BID is a defined area within which businesses pay a levy in order to fund projects and improvements (typically related to safety/security, cleansing and environmental measures) within the district's boundaries. There are 53 BIDs in London but currently no BIDs in Haringey. Only two Metropolitan Town Centres in London do not have BIDs, Wood Green and Shepherds Bush (which has an enhanced management agreement with Westfield).

Businesses on Wood Green High Road have for some time been very concerned about the image of Wood Green and the associated crime, grime and the retail offer. Wood Green has tremendous strengths but also significant opportunities to improve. It is classified by the Greater London Authority (GLA) as a Metropolitan Town Centre, but is ranked as one of the worst performing on a number of measures (quantity of comparison retail, ratio of comparison to convenience, quantum of office, quality and quantum of amenity and leisure).

Consultation with businesses during the BID Feasibility Study undertaken in 2016 demonstrated that a BID in Wood Green had the potential to improve the experience, marketing and viability of Wood Green and thereby enhance the economic growth of the area and outcomes for residents. It was also considered that membership of a BID in Wood Green will allow businesses to come together and have a strong voice in the area’s future as it undergoes significant transformation following the delivery of the Wood Green Area Action Plan (AAP) and Investment Framework.

The BID Proposer has drawn up a document, The BID Proposals (Appendix1), which will set out the services to be provided and the size and the scope of the Business Improvement District. It also sets out who is liable for the levy, the amount of levy to be collected and how it is calculated. The BID proposals include:

                     I.        A statement on what services the BID intend to provide

                    II.        Who will provide them (i.e. the BID company)

                  III.        Who will be liable to pay the levy and how the levy will be calculated

                  IV.        Any relief to be given to any specific class of occupiers

                   V.        Whether any (and which) of the bid arrangements may be altered without an alteration ballot

                  VI.        The duration of the BID arrangements (the BID Term)

                VII.        When the BID arrangement comes into force

               VIII.        A map of and list of streets in the geographical area covered by the BID Proposals

                  IX.        A schedule of the existing baseline services provided by the relevant public authority

Council officers are confident that the BID proposer has supplied the above information in the BID Proposal document shown in Appendix 1 and that this document complies with the BID regulations

In accordance with Regulation 3(2) of the Bid Regulations, on 30th June 2017 the Chair of the Wood Green BID Steering Group, (set up as a sub group of the Wood Green Business Forum to oversee and coordinate the establishment of a BID in Wood Green) the BID Proposer served 84 days’ notice on the Council and the Secretary of State, of the Steering Group’s intention to request the Council as billing authority to put BID Proposals to a ballot.

Under the BID Regulations, the Council has a duty to receive BID Proposals as part of the process leading to a ballot. The Council has a role in ensuring compliance and has the power under the BID Regulations to veto a BID proposal after ballot where it believes the BID proposals:

(i)      are likely to materially conflict with any of the Council’s formal policies;

(ii)    place an inequitable and significantly disproportionate financial burden on any class of non-domestic ratepayer as a result of manipulation of the BID area or BID levy.

The recommendations are in support of the Wood Green BID Proposal as it is considered to:

(i)      conform to all requirements of the BID Regulations;

(ii)    provide leverage of additional resource for the regeneration and improvement of the Wood Green area.

Council officers have studied the BID proposal and are of the opinion that it does not conflict with any of the Council’s formal policies and it does not place any disproportionate financial burden on any class of non-domestic rate payers as the result of the proposed BID area or the levy rate.

Alternative options considered

Officers have been exploring the opportunity for BIDs in the borough since 2014. Wood Green and Tottenham have been considered as well as other local town centres and industrial estates. This is further detailed in the background section. Currently Wood Green is the only Town Centre in the borough considered to have the potential to be a BID.

Should the Council vote not to support the BID Proposal, it would risk:

(i)      Losing the opportunity for potential investment in Wood Green of between £300,000 and £600,000 per annum over five years, to be raised from the BID levy and through accessing external sources of funding and in-kind support to be used by the BID Company which, working with the Council, could support the promotion and regeneration of the Wood Green;

(ii)    Losing the opportunity for attracting additional leverage and match funding; and

(iii)   Damaging business relationships and causing the dis-engagement of local businesses from working in partnership with each other and with the Council for the regeneration of the area.