Agenda item

Report of the Director of Placemaking and Housing. To be introduced by the Cabinet Member for Economic Development, Jobs, and Community Cohesion.

To endorse the Future Wood Green Business Improvement District Re-Ballot Proposals; to instruct the Returning Officer to hold a BID Ballot; and to agree to delegate authority to the Director of Placemaking & Housing to vote on behalf of the Council.

The Cabinet Member for Economic Development, Jobs, and Community Cohesion introduced the report which sought to endorse the Future Wood Green Business Improvement District Re-Ballot Proposals; to instruct the Returning Officer to hold a BID Ballot; and to agree to delegate authority to the Director of Placemaking & Housing to vote on behalf of the Council.

It was noted that BIDs had been effective in developing economic growth. Wood Green was central to the Council’s ambition to support businesses and economic growth and to work towards economic recovery. It was explained that the purpose of the report was to ask Cabinet to consider the BID proposals for a second term and agree recommendations that would allow a BID Ballot to take place. It was highlighted that the proposals extended the BID area to cover Turnpike Lane which would be an important contribution with a unique offer and character. The Cabinet Member noted his thanks to the BID for supporting and championing local businesses, particularly during and after the pandemic.

In response to questions from Cabinet Members, the following information was provided:

-       The Cabinet welcomed the inclusion of Turnpike Lane into the BID area.

In response to questions from Cllr Connor, the following information was provided:

-       It was noted that the BID was an independent organisation and that, although there were some links, the Council could not determine how it operated. It was added that there had been engagement with the businesses on Turnpike Lane on the BID proposals.

RESOLVED

1.    To endorse the Wood Green Business Improvement District (BID) Proposals set out in paragraph 4.3 of the report, formally submitted by Future Wood Green BID 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 with the final day of the ballot (‘Ballot Day’) being scheduled for 23 February 2023.

4.    To agree to delegate authority to the Director of Placemaking and Housing to vote on behalf of the Council, after consultation with the Cabinet Member for Economic Development, Jobs, and Community Cohesion, 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, to agree to delegate authority to the Director of Placemaking and Housing, after consultation with the Head of Legal and Governance, to make decisions on behalf of the Council in connection with, and during, the process of the setting up the second term of the 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.

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, marketing and business support) within the district's boundaries.

The BID has developed Proposals for the BID’s second term, including the amount of levy to be paid by eligible businesses, and plans for the expenditure. These Proposals are the subject of the BID Ballot campaign and vote.

The BID Proposer has drawn up the BID Proposals (Appendix 1), which will set out the services to be provided and the size and the scope of the Business Improvement District. The Business Improvement District will now be larger than the previous BID and will include the areas shown edged blue and orange on the plan attach as Appendix 7. 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 cover all the following items subject to BID Regs (2004) Schedule 1 sub-paragraphs (2) and (3):

(a)  a statement of the works or services to be provided, the name of who will provide them (the name of the BID body or local authority BID body) and the type of body the provider is (whether a local authority, a company under the control of the authority, a limited company or a partnership)

(b)  a statement of the existing baseline services (if any) provided by the relevant billing authority or other public authority

(c)  a description of the geographical area (including a map showing that area) in which the proposed BID arrangements are to have effect

(d)  a statement of whether all non-domestic ratepayers in the geographical area or a specified class of them are to be liable to the BID levy, an explanation of how the amount of the BID levy to be levied is to be calculated and an explanation of whether any of the costs incurred in developing the BID proposals, holding of the ballot or implementing the BID are to be recovered through the BID levy

(e)  a statement of the specified class of non-domestic ratepayer (if any) for which and the level at which any relief from the BID levy is to apply

(a)  a statement of whether the BID arrangements may be altered without an alteration ballot and, if so, which aspects of the BID arrangements may be altered in this way

(b)  a statement of the duration of the BID arrangements; and

(c)  a statement of the commencement date of the BID arrangement.

Where there is a renewal:

The matters which shall be included in renewal proposals are:

(a)  a statement of the proposed period (not exceeding 5 years) of the renewed BID arrangements; and

(b)  a summary of the BID arrangements (including the geographical area of the BID, the works or service provided, an explanation of who is liable for the BID levy, the level of the BID levy and how it is calculated).

The BID proposer has supplied the above information in the BID Proposal document shown in Appendix 1 and this document complies with the BID regulations.

In accordance with Regulation 3(2) of the Bid Regulations, on 12th July 2022 the Chair of the BID as the BID Proposer served 84 days’ notice on the Council and the Secretary of State, of the BID’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; and

ii.            provide leverage of additional resource for the placemaking and improvement of the Wood Green and Turnpike Lane area.

Council officers have studied the BID Proposals 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 when a borough-wide feasibility study highlighted Wood Green as the most likely area for a successful BID. Wood Green is currently the only BID in Haringey although officers are currently exploring a potential BID in Green Lanes with the Harringay and Green Lanes Traders Association subject to the funding of a feasibility study. Other centres including Tottenham, as well as industrial estates, have also been considered, although there are no plans to explore further at this time.

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

i.              Losing the opportunity for potential investment in the BID area of approximately £334,000 per annum over five years (totalling £1.67M), to be raised from the BID levy and any additional funding secured through the BID accessing external sources of funding and in-kind support to be used by the BID Company. This, working with the Council, could support the promotion and placemaking of the Wood Green and Turnpike Lane areas

ii.            Losing the opportunity for attracting additional leverage and match funding over the next five years; and

iii.           Damaging business relationships and causing the disengagement of local businesses from working in partnership with each other and with the Council for the improvement of the area at a critical period for business and the economy in general.