Business Improvement Districts (BIDs) – What? – Why?
What is a Business Improvement District?
- BIDs are fast becoming important tried and tested success stories. There are over 50 now in the UK following the enormous success of BIDs in the US over the last 15-20 years and we can learn some important lessons from their successes.
- A BID is managed by an independent business-led company running a programme of additional services over and above already provided by the public sector which will increase footfall and trade in a tightly defined geographical area of the City Centre.
- Businesses decide on the projects to be carried out by identifying their key issues and agreeing the level of funds they will pay to make a real difference to the trading environment around their premises.
- A BID can only happen if the businesses show their approval through a ballot. If there is a Yes vote then the BID will be mostly funded by this statutory investment from all included businesses. This funding will be used to attract matched funding. In our case it is only businesses that require a premises license to operate that form the voting electorate.
Why does Nottingham need a BID?
- Nottingham is consistently ranked amongst the UK’s top five retailing destinations and attracts up to 100,000 people a night withits vibrant evening offer. Sustaining this position in the face of increasing competition from our neighbours is a challenge and will become more so in the future. Already more than 90% of businesses have commented that their trade has suffered noticeably over the past 2 years and this trend looks set to continue.
- While Nottingham City Centre contains a good mix of, cafés, restaurants, bistros, pubs, nightclubs, theatres and performance venues as well as a strong residential community with a tremendous heritage and history, leisure businesses have said that they want more vitality and viability to help compete with other cities and suburban locations thathave moved very strongly into the evening economy.
- The proposed Nottingham BID, lasting 5 years, will generate more than £1.25m over 5 years from December 2007 (averaging £270,000 pa excluding voluntary contributions) to re-energise the City. Every penny will be spent on carrying out the projects suggested by you, the key leisure businesses in the City Centre.
- The Nottingham BID area will become safer, more attractive and much better promoted, so that there will be clear benefits for businesses, workers and residents in it and visitors to it.
- Our BID proposal is put together with the understanding that the money contributed by businesses is hard earned and that they want to see results. The return will equal, and aim to exceed, contributions with clearly defined added value for all paying the levy.
- From the experience of the many BIDs already in place, we will soon witness tangible improvements. However, our BID activities will be formally monitored by an external, independent auditor and regular reports on progress will be given to all who contribute.
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This will be a business led initiative – all businesses are invited to be proactively involved to ensure we maximise a unique opportunity to make our City Centre a natural choice to spend leisure time and money in. In essence, putting our City Centre back on the “good time” radar.
