BUSINESS IMPROVEMENT DISTRICTS WORKING GROUP
RURAL BIDS: POTENTIAL USES IN SPARSELY POPULATED AREAS:PAPER 05/03
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Introduction
1. The Working Group has already had one discussion of the use of BIDs in rural areas. Its conclusion was that issues such as critical mass and loss of locational focus may mean that in practice the BIDs concept is not really applicable to rural areas. However there may be specific suggestions the Group could make on this.
2. This paper therefore summarises ideas which have been suggested so far, seeks the Group's comments on each of them, and invites any further suggestions for possible examples of rural BIDs.
3. A key component of a BID is the expenditure by the local authority of the monies raised by the levy so that in each case the nature of that expenditure would have to be identified.
Possible Types of Rural BID Projects
Village ATMs
4. A common complaint in very small and inaccessible towns is the lack of easy access to cash. This leads to local people having to travel to larger towns where a cash machine (ATM) is located. Often this means these individuals will do their main shopping there as well, resulting in loss of business to the smaller outlets in the local's village. BIDs could be used to raise an ATM levy which pays for the rental of the machine. Although this is only a small amount, and some will argue that this can be done voluntarily without the need to use the BID model, this assumes that all businesses who would benefit would contribute. However experience to date demonstrates that there is the potential for "freeloading". Using the compulsory levy (as long as a certain majority voted in favour) would avoid this and give encouragement to those businesses who want to progress the economy of their village.
Picnic areas
5. There may be a need in small villages for a central point where locals and visitors alike can relax and enjoy the surroundings. This would have the benefit of creating a good impression in people's minds and attract visitors back to the area as well as bringing new ones as word of the area spread. This area could be as small as a few tables and benches, or more ambitious with a play area for children, perhaps a small crèche type area supervised by a suitable individual/s. The aim would be to create an environment that is welcoming and friendly.
Extra bus services
6. Bus services are a commonly raised complaint in small and difficult to access communities. There may be benefits in businesses of a small village putting on more regular and focussed bus services. This could either bring far flung individuals to the village for shopping/drinking/eating, or alternatively encourage tourism by advertising the fact that regular bus services to larger towns are available. This will appeal to those tourists who do not want to be forced into using their car all the time, resulting in them avoiding staying too long in difficult to access areas.
Village advertising
7. Promotional work to attract tourists into an area has been mentioned as a possible use for rural BIDs. Working Group members have indicated that the benefits of this would be hard to quantify, and that the project would lack focus due to its size. An alternative would be for small villages (or a group of small villages) to initiate a BID in order to fund some advertising which would promote the type of activities and surroundings to be found in the area. If all the businesses in the area concerned (shops, pubs, hotels B&Bs, out door centres/activities) were to contribute then a reasonable amount of funding could be secured.
Village fairs
8. In addition to advertising there may be merit in businesses in a defined area funding activities such as village fairs, gala days, harvest festivals, and highland games. All of these activities can attract visitors to an area and encourage them to come back and also recommend the area to others. This already happens to a certain extent but as stated above the benefit of the BID model is that all businesses in an area will contribute as long as the relevant percentage has voted in favour.
BID Boards
9. The need for the type of formal organisation recommended for large BID projects is substantially reduced the smaller a project is. There is little merit in directing some of the revenue raised via the levy towards managing the project if it is fairly small and the amount of businesses involved is relatively low. A more informal approach may be appropriate whereby the businesses paying the levy and developing the concept gather on a regular basis to monitor progress.
BIDWG Secretariat
January 2005