BUSINESS IMPROVEMENT DISTRICTS WORKING GROUP
REVISED DISCUSSION PAPER - TOWARDS A SCOTTISH BID PILOT PROGRAMME:Paper 05/06
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1. Background and Purpose of Discussion Paper
A previous paper outlining a BID Demonstration Programme was considered by the Working Group at the meeting in October 2004 and further discussed at the meeting in December 2004 following the presentation by Jacqui Reilly on the England BID Pilot Programme.
This version is revised based on the comments made on the original paper and the views expressed on the English pilot programme by members of the working group.
It now outlines the key aspects of a BID Pilot Programme in Scotland. This is different from the previously proposed "Demonstration" approach which was focused on highlighting the benefits of the BID approach through a public sector funded set of short term BID type projects.
In this version the focus is on piloting, in a small number of places, the processes that are necessary to create a BID partnership that has a coherent and robust business plan that could be put to a referendum of potential BID levy payers. This mirrors the English BID Pilot programme approach described by Jacqui Reilly.
The key comment on the Demonstration Project approach was that it did not sufficiently test "the willingness of the business community to pay the BID levy". The Pilot approach taken forward in England tests this willingness by focussing on the production of BID proposals in each of the pilot areas that are "vote ready".
2. Summary of Pilot Project Approach
Rationale
- The key issue that needs to be piloted is the development of business led programmes to spend BID levy resources;
- This is done by providing support (technical and mentoring) to a small group of pathfinders to assist them to develop business led BID proposals based on robust business plans that can be implemented following a BID referendum once the legislation to enable this is in place.
- The key benefit of this approach is testing the willingness of businesses to engage in the development of action plans that they will ultimately fund when legislation is in place to allow BIDs to be formally set up in Scotland.
- This approach assumes that the need to demonstrate to businesses that there will be real business benefits to them of such an approach will be fulfilled by case studies and examples of benefits from BID approaches outwith Scotland and through reference to town centre improvement/management processes currently in existence.
Approach
- Each pilot should commit to developing a "business defined programme of actions." (BID Business Plan).
- In developing this Business Plan they should take account of the likely resource raised by a BID levy and the cost of this in terms of levy payment to the potential levy payers.
- A key aspect of the business plan should be setting out the key indicators that will be used to measure the benefits arising from the implementation of the plan. Baseline information of place and individual business performance should be identified and a process for measuring changes attributable to the BID actions should be developed by each pilot.
3. "Categories" of Place for Pilot Project
If possible Pilot projects should cover a range of types of place where the principles of the BID approach could be applied so that lessons can be learnt about how the general BID principles work when applied to different places. As participation on the Pilot Scheme will be through voluntary expression of interest it is possible that pilots may not come forward for some of these areas.
The following categories have been identified by the working group:
- Prospering City Centre Area
- City Centre Renewal Area
- Prospering Town Centre
- Town Centre Renewal
- Business Park/Science Campus
4. Selection Process Requirements
The process of identifying potential pilots should seek to confirm the following:
- High level commitment of key local partners to BID pilot process (Local Business organisation, local authority should be the key partners in the expression of interest);
- Understanding of the resource requirements for the development of the BID Business Plan - information should be given in the call for expressions of interest of the costs incurred in developing a selection of English BID pilots to referendum stage.
- Commitment to local resourcing of these costs. (Recognition that being part of the pilot programme does not bring resources to develop the BID business plan).
It may also be beneficial to require the existence of a town or city centre management organisation for the pilot area. This would make sure that pilots were identified in places where there was a demonstrable track record of joint thinking and action about the issues that a BID could address.
5. Management of Demonstration Programme Process
Three stages/elements in managing the Pilot Programme are envisaged
- Start Up -briefing potential pilots, calling for expressions of interest and the selection of appropriate pilot projects,
- Pilot Programme - once pilot areas selected a period during which pilot areas develop their partnerships, work to develop their business plans and communicate locally to establish the level of support for these plans from local businesses. The end of this stage will either be marked by a BID referendum or by voluntary funding of the business plan.
- Communication of Learning from Pilots - this should be staged during the pilot programme phase so that the group of pilots are given opportunities to report issues and problems they are facing and inform other areas of progress.
Central resource will be needed to ensure a co-ordinated approach to establishing the pilot group, supporting the pilots as they develop their approach and organising seminars/ workshops to allow the communication of learning.
6. Timescales
If there is support for the development of the Pilot Programme approach potential timescales to move towards implementation could be:
- Spring 05- Ministers receive working group report and consider the merits of a BID pilot programme;
- Autumn 05 - If Ministers supportive call for expression of interest
- Spring 06 - Selected pilot areas begin process of developing business plans
- Autumn 07 - Business Plans ready for BID referenda.
7. Key Discussion Points
This paper sets out the key elements of a centrally co-ordinated but locally driven and funded pilot process that would provide a supportive context in which a number of places could develop BID type business plans that would be "vote ready" when legislation is passed in Scotland to enable BIDs to come into existence. This is modelled on the English BID Pilot Approach.
In this model central funding is low and focussed on technical support and advice and the organisation of a learning network that can disseminate lessons learnt in the pilot process. The funding of the development of the BID proposals locally would need to be drawn from local sources. It has been argued that a test of whether there is support for BIDs within the business sector is whether such local resourcing could be identified for the pilots.
Alternatively an approach could be taken where a central grant is provided to support the expenditure incurred by each of the pilot areas in the development of the business plan. The extent of the costs incurred in developing the BID business plan could be benchmarked against the English Pilot Programme.
8. Conclusions
The BID Pilot approach outlined above is modelled on the English Pilot programme. It is focussed on supporting local BID partnerships develop vote ready business plans. The extent to which there is central support for these pilots is for discussion and needs to balance local commitment (demonstrated by willingness to locally fund) against encouragement to participate in a pilot process in advance of legislation being in place.