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City Centres & Business Districts
The Experience of Business Improvement Districts in the UK
                         Dr Julie Grail
                 Chief Executive, British BIDs



                           www.britishbids.info
Background to Place Management
• Culture of partnership in the UK since late
 1980s

• Track record of delivery but pressures on the
  ‘traditional’ service delivery and uncertain
  funding

• Evolution to sustainable funding model in 2004
  - BIDs

                      www.britishbids.info
Introduction of BIDs
• Business Improvement Districts (BIDs) are
  business-led organisations focused on
  managing and enhancing commercial areas

• In their seventh year of operation in the UK

• Now 124 BIDs in the UK



                      www.britishbids.info
Setting up a BID
• A BID can only be formed following
  consultation and a ballot in which businesses
  vote on a business plan for the area

• All businesses eligible to pay the levy are
  balloted

• Dual key vote – numbers and value majorities

• Once established the levy is mandatory
                       www.britishbids.info
Safeguards
• The business plan becomes
  legally binding and becomes the framework
  within which the BID will operate

• An Operating Agreement for levy collection
 administration

• Baseline agreements to ensure that any
  services the BID provides are truly additional

                      www.britishbids.info
Funding of BIDs
• A BID is funded through a BID levy, which is a
  small percentage of a businesses’ rateable
  value (the occupier of premises in the UK)

• The majority of BIDs charge 1% of rateable
  value (relatively small sums per business)

• Additional income levered in from other
  sources

                      www.britishbids.info
Governance & Management
• Generally run as not-for-profit companies

• Governed by a board of directors made up of
  BID levy payers representing the BID area

• Management teams vary in size but will
  generally encompass management and
  administration, operations and project
  delivery, and communications and marketing

                     www.britishbids.info
Scale of BIDs in the UK
• The average size of a BID is 300-400 businesses
• Smallest has 17
• Largest has 2,700

• Income is typically £200,000-£600,000 pa
• Smallest £40,000 pa
• Largest £2.4 million pa



                      www.britishbids.info
Current Scale of the Industry
• Number of businesses in BIDs in the UK
  c. 60,000

• Total annual levy income in BID areas in the UK
  c. £69m

• Total annual investment in BID areas in the UK
  c. £168m pa.


                      www.britishbids.info
Hierarchy of BID Activity


                  Innovation

                Collective Action

             Marketing & Promotion


                Safe & Secure

                 Clean & Green




                    www.britishbids.info
Scope of BIDs – Case Studies
• Camden Town Unlimited – Pop-up shops

• InMidtown – Zero to Landfill

• New West End Company – Smash & Grab




                      www.britishbids.info
New West End Company
Smash & Grab - Multi-agency Crime Intelligence Partnership




                               www.britishbids.info
New West End Company
Smash & Grab - Multi-agency Crime Reduction

                          Facts & Figures

         Between 2005 and 2008, 224 smash & grab raids
                       Cost to retailers £4m
            Police arrests but minimal judicial redress
           2009 high level summit to promote dialogue
               Multi-agency approach established
                    61% reduction in incidents
                   61 arrests and 46 convictions
                   Average sentences increased
            Positive reaction from press and retailers


                              www.britishbids.info
Camden Town Unlimited
Pop-up Shops - Entrepreneurial Place-making




                               www.britishbids.info
Camden Town Unlimited
Pop-up Shops – Entrepreneurial Place-making

                           Facts & Figures

           In 2009, 1 of top 3 vacancy rates in London
            Approached the agents of 17 vacant units
           Rent free 3 month leases secured on 3 units
           Identity created with Conran Design Group
             23 unique exhibitions/retail experiences
     40 new introductions/collaborations with local businesses
        Generated significant media and industry attention




                               www.britishbids.info
Inmidtown
Zero Waste to Landfill – Waste Management & Carbon Saving




                              www.britishbids.info
Inmidtown
Zero Waste to Landfill – Waste Management & Carbon Saving

                          Facts & Figures

       Started in 2008 with a free business recycling scheme
         Collections managed through one electric vehicle
           In 2010 started zero waste to landfill initiative
     To reduce a business’ carbon footprint by 10% in 5 years
               Joined-up waste service for businesses
                In first three months, 210 businesses
         Estimated combined business saving of £350,000
             70 tonnes of material recycled each month
            90% of office waste collected free of charge


                              www.britishbids.info
The Future of BIDs
• BIDs have money and mandate

• Real impact and innovation evidenced

Now enhancing through -

• Operating efficiencies

• Bold leadership

                      www.britishbids.info
For more information:
juliegrail@britishbids.info

For the Nationwide BID Survey 2011:
www.britishbids.info




                      www.britishbids.info

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Julie Grail. The Experience of Business Improvement Districts in the UK

  • 1. City Centres & Business Districts The Experience of Business Improvement Districts in the UK Dr Julie Grail Chief Executive, British BIDs www.britishbids.info
  • 2. Background to Place Management • Culture of partnership in the UK since late 1980s • Track record of delivery but pressures on the ‘traditional’ service delivery and uncertain funding • Evolution to sustainable funding model in 2004 - BIDs www.britishbids.info
  • 3. Introduction of BIDs • Business Improvement Districts (BIDs) are business-led organisations focused on managing and enhancing commercial areas • In their seventh year of operation in the UK • Now 124 BIDs in the UK www.britishbids.info
  • 4. Setting up a BID • A BID can only be formed following consultation and a ballot in which businesses vote on a business plan for the area • All businesses eligible to pay the levy are balloted • Dual key vote – numbers and value majorities • Once established the levy is mandatory www.britishbids.info
  • 5. Safeguards • The business plan becomes legally binding and becomes the framework within which the BID will operate • An Operating Agreement for levy collection administration • Baseline agreements to ensure that any services the BID provides are truly additional www.britishbids.info
  • 6. Funding of BIDs • A BID is funded through a BID levy, which is a small percentage of a businesses’ rateable value (the occupier of premises in the UK) • The majority of BIDs charge 1% of rateable value (relatively small sums per business) • Additional income levered in from other sources www.britishbids.info
  • 7. Governance & Management • Generally run as not-for-profit companies • Governed by a board of directors made up of BID levy payers representing the BID area • Management teams vary in size but will generally encompass management and administration, operations and project delivery, and communications and marketing www.britishbids.info
  • 8. Scale of BIDs in the UK • The average size of a BID is 300-400 businesses • Smallest has 17 • Largest has 2,700 • Income is typically £200,000-£600,000 pa • Smallest £40,000 pa • Largest £2.4 million pa www.britishbids.info
  • 9. Current Scale of the Industry • Number of businesses in BIDs in the UK c. 60,000 • Total annual levy income in BID areas in the UK c. £69m • Total annual investment in BID areas in the UK c. £168m pa. www.britishbids.info
  • 10. Hierarchy of BID Activity Innovation Collective Action Marketing & Promotion Safe & Secure Clean & Green www.britishbids.info
  • 11. Scope of BIDs – Case Studies • Camden Town Unlimited – Pop-up shops • InMidtown – Zero to Landfill • New West End Company – Smash & Grab www.britishbids.info
  • 12. New West End Company Smash & Grab - Multi-agency Crime Intelligence Partnership www.britishbids.info
  • 13. New West End Company Smash & Grab - Multi-agency Crime Reduction Facts & Figures Between 2005 and 2008, 224 smash & grab raids Cost to retailers £4m Police arrests but minimal judicial redress 2009 high level summit to promote dialogue Multi-agency approach established 61% reduction in incidents 61 arrests and 46 convictions Average sentences increased Positive reaction from press and retailers www.britishbids.info
  • 14. Camden Town Unlimited Pop-up Shops - Entrepreneurial Place-making www.britishbids.info
  • 15. Camden Town Unlimited Pop-up Shops – Entrepreneurial Place-making Facts & Figures In 2009, 1 of top 3 vacancy rates in London Approached the agents of 17 vacant units Rent free 3 month leases secured on 3 units Identity created with Conran Design Group 23 unique exhibitions/retail experiences 40 new introductions/collaborations with local businesses Generated significant media and industry attention www.britishbids.info
  • 16. Inmidtown Zero Waste to Landfill – Waste Management & Carbon Saving www.britishbids.info
  • 17. Inmidtown Zero Waste to Landfill – Waste Management & Carbon Saving Facts & Figures Started in 2008 with a free business recycling scheme Collections managed through one electric vehicle In 2010 started zero waste to landfill initiative To reduce a business’ carbon footprint by 10% in 5 years Joined-up waste service for businesses In first three months, 210 businesses Estimated combined business saving of £350,000 70 tonnes of material recycled each month 90% of office waste collected free of charge www.britishbids.info
  • 18. The Future of BIDs • BIDs have money and mandate • Real impact and innovation evidenced Now enhancing through - • Operating efficiencies • Bold leadership www.britishbids.info
  • 19. For more information: juliegrail@britishbids.info For the Nationwide BID Survey 2011: www.britishbids.info www.britishbids.info

Notas del editor

  1. Where cuts emerge BIDs will be well placed to assist in identifying efficiency savings and more effective delivery methods BIDs may opt to take on delivery of public services in some cases Concern over a potential over-reliance on BIDs to ‘pick up the pieces’ But if baseline agreements prove their worth these will act as a safeguard
  2. Where cuts emerge BIDs will be well placed to assist in identifying efficiency savings and more effective delivery methods BIDs may opt to take on delivery of public services in some cases Concern over a potential over-reliance on BIDs to ‘pick up the pieces’ But if baseline agreements prove their worth these will act as a safeguard
  3. Where cuts emerge BIDs will be well placed to assist in identifying efficiency savings and more effective delivery methods BIDs may opt to take on delivery of public services in some cases Concern over a potential over-reliance on BIDs to ‘pick up the pieces’ But if baseline agreements prove their worth these will act as a safeguard
  4. Where cuts emerge BIDs will be well placed to assist in identifying efficiency savings and more effective delivery methods BIDs may opt to take on delivery of public services in some cases Concern over a potential over-reliance on BIDs to ‘pick up the pieces’ But if baseline agreements prove their worth these will act as a safeguard
  5. Where cuts emerge BIDs will be well placed to assist in identifying efficiency savings and more effective delivery methods BIDs may opt to take on delivery of public services in some cases Concern over a potential over-reliance on BIDs to ‘pick up the pieces’ But if baseline agreements prove their worth these will act as a safeguard
  6. Where cuts emerge BIDs will be well placed to assist in identifying efficiency savings and more effective delivery methods BIDs may opt to take on delivery of public services in some cases Concern over a potential over-reliance on BIDs to ‘pick up the pieces’ But if baseline agreements prove their worth these will act as a safeguard
  7. Where cuts emerge BIDs will be well placed to assist in identifying efficiency savings and more effective delivery methods BIDs may opt to take on delivery of public services in some cases Concern over a potential over-reliance on BIDs to ‘pick up the pieces’ But if baseline agreements prove their worth these will act as a safeguard
  8. Where cuts emerge BIDs will be well placed to assist in identifying efficiency savings and more effective delivery methods BIDs may opt to take on delivery of public services in some cases Concern over a potential over-reliance on BIDs to ‘pick up the pieces’ But if baseline agreements prove their worth these will act as a safeguard
  9. BIDs are likely to be right at the heart of the new localism agenda They will have money and mandate when many around them are losing theirs They have shown real impact and innovation to date and are continuing to do so Operating efficiencies will be required though to ensure BIDs remain efficient and fit for purpose vehicles Bold leadership is required to optimise their potential