DAVENTRY COMMERCIAL BID
Putting
DAVENTRY COMMERCIAL ENTERPRISE
on the map
DAVENTRY – well connected for business
DAVENTRY COMMERCIAL BID
“We believe that BIDs can be an important tool in coordinating collective investment to improve the trading environment.” British Retail Consortium
2 www.daventry.co.uk
Putting DAVENTRY COMMERCIAL ENTERPRISE on the map
FOREWORD Daventry’s central location, excellent road and rail connections, balanced economy, low unemployment and excellent skill base have seen the industrial estates of Daventry thrive and grow over a number of years. They have continued to attract significant investment from a diverse range of new and expanding high profile businesses and global brands, despite the difficult economic climate, ad hoc development and no overall management. For all the industrial, commercial and business estates to continue to grow, attract new business and investment, remain competitive and to face the increasing economic challenges, a fresh management approach is required, along with new money, energy and ideas. Funding from the statutory bodies can no longer be relied on and is increasingly under pressure, leading to an inevitable decline in service provision and standards. The challenges and issues that exist in and around businesses on the estates have to be tackled in an innovative and efficient way. They affect everybody and cost effective solutions can only be achieved by working together, for the benefit of all. Commercial Business Improvement Districts (BIDs) are a proven mechanism for businesses to work together in improving their local environment and in tackling problems such as poor access, signage, security, road safety, litter, graffiti, vegetation management and indeed raising the profile of the estates, all of which affect trade, staff retention, void rates, profit and growth. The introduction of group buying and sharing of services, such as waste disposal and recycling, can also bring potential benefits to businesses by reducing their operating costs. BID funding is sustainable, 100% ring-fenced and controlled by the businesses that contribute and benefit from it. It is delivered by a BID Management Company, appointed by the businesses, leaving you to focus on running your business. You decide on how the money is spent. If after four years you are not happy with what it has achieved, you make the decision to simply switch it off. Keeping costs down is key to the success of any business, particularly in the current economic climate. The BID levy, although an added cost, is small in comparison to the potential savings that you can make and to the continued long term growth, viability and sustainability of the estates. They’re your estates, your future and your decision. Make your voice heard by voting YES to the BID and ensuring we put the commercial enterprise of Daventry firmly on the map!
Euan Temple Chairman of the Daventry Business Partnership
3 www.daventry.co.uk
DAVENTRY COMMERCIAL BID
BACKGROUND What is a BID? It is a Business Improvement District – an arrangement under which local businesses are involved in the planning and delivery of additional improvements to benefit the trading area in which they are located. These additional services are funded through a levy and delivered by a not for profit private sector company. Development of those services is headed up by businesses in the area that contribute to the levy.
What does the Business Improvement District mean for the commercial and industrial estates of Daventry? The Daventry Commercial BID is sited at the heart of the national road and rail networks making it a prominent location for logistics and distribution in the country. It is also home to a wide variety of important manufacturing, service and trading companies, which all make valuable contributions to the local economy. If agreed, from April 2013 the BID will generate, through local investment and grants, in excess of £1 million over the next 4 years. All of this funding will be spent on improvements in the Commercial BID area. The services and spend of the public sector, within the BID area, in the same period will be maintained and not replaced by any aspect of the BID activities or resources.
4 www.daventry.co.uk
“From our experience to date, IBRF members consider that BIDs are quickly becoming a “must have” as a means of delivering added value to the business environment.” Inter Bank Rating Forum
Putting DAVENTRY COMMERCIAL ENTERPRISE on the map
WHAT DRIVES THE BID The Vision
How the BID will be managed
That the commercial estates in Daventry have a positive profile, are accessible and well managed, where businesses wish to locate, and employees want to work. Where businesses collaborate to reduce cost and are actively involved in the management of the estates.
A dedicated Commercial BID Board will be responsible for designing and delivering projects. This board will comprise of nine elected business members – three from each estate (Royal Oak, Drayton Fields/Heartlands/ Apex Park, The Marches). All businesses will be encouraged to be involved with the working groups of the Commercial BID Board. Three board members will be elected by the Commercial BID Board as Directors on the BID Company Management Board (Daventry Business Partnership Ltd).
BID Aims
• To ensure that transport access to and around the estates and its businesses is easy, safe and effective.
• To optimise resources through group buying and sharing of support services and products such as energy, waste management and discount schemes.
• To enhance the image and prestige of the estates to reflect the values of the businesses which operate from them.
Daventry Business Partnership Ltd has managed the Town Centre BID for five years, delivering a range of services and will bring that experience to the management of the Commercial BID.
Who will make the BID happen? YOU! – All that stands between what currently exists and the proposed improvements to the area is for a majority of businesses to vote in favour of a Commercial BID. So if you want it to happen then all that is required is for a majority of businesses to vote YES.
5 www.daventry.co.uk
DAVENTRY COMMERCIAL BID
RESEARCH AND CONSULTATION PROCESS Background The BID proposal was developed following a series of extensive consultation exercises with businesses located within the three estates. This included face to face interviews, three open meetings and two survey questionnaires regarding issues, activities and levy. Statutory agencies located within the BID area were also given the opportunity to complete the questionnaires.
Who was involved? All businesses in the proposed BID area, were invited to complete questionnaires seeking their opinions on a variety of issues. In total this covered 513 businesses premises.
What were the aims of the consultation?
• To identify the key issues which directly impact upon the businesses in the area and to develop and achieve remedies to help businesses realise their own internal objectives.
• To understand the views of people who work in the area on a daily basis and what might encourage others to come to the estates to work.
• To identify what factors may deter new businesses from investing in the estates and what would increase the ability of the Daventry Commercial estates to reduce property vacancy levels.
Over 20% of different business types, across the proposed area, participated in detailed one to one interviews exploring and discussing how the estates and other issues impact upon their ability to operate effectively.
“Daventry Business Partnership has been hugely successful in helping to ensure that the town centre BID returns a viable and vibrant town centre. I wholly support their BID proposal for the wider commercial areas and look forward to its future success.” Chris Heaton Harris MP
6 www.daventry.co.uk
Putting DAVENTRY COMMERCIAL ENTERPRISE on the map
RESEARCH RESULTS Initial face to face interviews
All services recording 50% or more support at high or medium importance were then costed and again put to the businesses for consideration via a second postal survey.
From the face to face interviews and discussions the following issues were identified as a barrier to effective operations:
The following graph demonstrates the level of financial support businesses indicated for the development of a BID in the area and the associated services.
• Poor access to and from the estates • Security issues • Visual impact of the estates (void properties and unkempt areas)
• Operational costs • Awareness of other businesses on the •
Access, Waste and recycling @ 0.99% of rateable value
estates Lack of transport
Access, waste and recycling @ 0.99% of rateable value
Access, Waste and recycling + Business support @ 1.06% of rateable value
Access, waste and recycling + of
business support Access, Waste and recycling@ + 1.06% rateable Crime initiatives value @ 1.74% of rateable value
To address these issues, the following potential services were identified and developed. These were put to all businesses for their consideration via a postal survey:
Access, waste and recycling of
Access, Waste initiatives and recycling @ + 1.74% + crime Business supportvalue and crime rateable initiatives @ 1.81% of rateable value
Access, Waste and recycling Access, waste and+recycling Business support, crime initiatives, + business support + crime joint initiatives purchasing @@ 2.03% of rateable 1.81% of rateable valuevalue
• CCTV number plate recognition and • • • • • • • • • • •
monitoring Warden patrols and Radio Link Improved estate signage Gritting of roads Hit Squad to tackle neglected areas Improved management of car parking Communal waste collections and recycling Group buying Staff recruitment initiatives Business directory Networking events Promotion60%of the estates
Of those supporting a BID the graph above shows preferred services
The businesses that responded requested services at a variety of levels. This information has been used to develop the final proposal which offers as wide a range of services at the lowest possible price. Further services may also be offered as additional funding is drawn in through grant applications and paid for initiatives.
It was decided to fix the rate at 0.99% to deliver as many of the services as possible, and to seek to attract additional funds to deliver capital projects over time. By doing so this would make the most of the business investment.
50% 40% 30% 20%
Not required
10%
Med Importance
Low importance High Importance 0%
no vote
Potential services
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DAVENTRY COMMERCIAL BID
HOW WILL THE BID RESPOND If the Commercial BID is agreed, the following services will be delivered.
Project One
Project Two
IMPROVED TRANSPORT ACCESS
GROUP BUYING AND SHARING OF SERVICES
What’s included? • Commissioning of gritting services during periods of extended snow and ice for all roads within the estates not currently gritted by the County Council.
What’s included? • To establish a buying group for waste disposal and recycling of materials.
• Improved road marking to increase visibility at junctions and improve parking/ access near licensed food vans.
• A web-based lift sharing scheme providing a coordinated approach to travel to and from the estates, to increase travel options and availability of transport for all.
• Maintain key footpaths and cycle routes
• To establish discount purchasing initiatives on behalf of businesses located on the estates.
• Create commercial opportunities where the BID could sell services to other businesses and estates in the Daventry area.
• Use the success of the BID to lever in additional investment into the Commercial BID by seeking and applying for funds to identify and work up larger capital projects.
through the estates. What will be invested? £93,500 per annum. £374,000 over 4 years.
What will be invested? £78,950 per annum. £315,800 over 4 years.
Our pledge to you
Our pledge to you
Daventry Commercial BID in partnership with the relevant local authorities will increase road safety by improving access and reducing the risk of near misses across the estates, especially during periods of prolonged cold weather. There will be an increased travel choice.
Daventry Commercial BID will enable cost savings to be made to businesses on the commercial and industrial estates across Daventry, through the encouragement of group buying and joint initiatives. It will develop services over time to a point where it can sell them to businesses both within the BID area and further afield to support funding to the BID initiatives and additional projects.
“Group buying and cost savings has to be a winner for all.” Chris Healey, Crime Secure 8 www.daventry.co.uk
Putting DAVENTRY COMMERCIAL ENTERPRISE on the map
Project Three RAISED PROFILE FOR THE BUSINESSES AND THE ESTATES What’s included? • To raise the profile of the estates and the businesses located here, through a web based business directory.
• Promote availability of vacant units via a dedicated section within the website.
• Provision of business events and networking opportunities to increase business.
• Link to the Town Centre BID and have an even greater voice for business – with a combined total of 900 members. What will be invested? £28,000 per annum. £112,000 over 4 years.
Our pledge to you Daventry Commercial BID will enable an increased awareness of businesses and the commercial estates in Daventry, attract inward investment and reduce property vacancy rates. Support business to business activity within the estates.
9 www.daventry.co.uk
DAVENTRY COMMERCIAL BID
VALUE FOR MONEY COST OF THE BID PROPOSAL None of the costs that have been incurred in developing the BID proposals or for carrying out the ballot, are to be recovered from the levy. These have been met by investment from Daventry Business Partnership Ltd.
HOW THE BID WILL BE FUNDED The cost of providing, managing and promoting the additional services, as set out in this proposal, has been estimated over a four year period. This has been apportioned between businesses and other non-domestic rate payers in the Commercial BID area, based on a percentage of the rateable value (RV) assessment as a guide. On this basis all business rate payers will contribute an additional 0.99% of their rateable value for each set premises (hereditament) in the BID area at the set time to a maximum RV limit of £1,000,000.
“The roads around the commercial estates can be dangerous in the Winter. We expect the roads to be gritted by the Council but, with the current financial restrictions, they are not, and the harsh reality is they are unlikely to be in the future. Therefore we can accept the status quo or we can join together to ensure our roads are safer. My vote is we work together for the common good.” Ian Robson, Dove Naish Group 10 www.daventry.co.uk
Over the life of the Commercial BID, there will be a few modifications to the levy under the BID rules:
• Any change of use, or ownership (or the creation of a new business within the BID boundary) will be liable to the levy rate current at the time of change.
• Any change to the RV of premises due to revaluation, change in size or reconfiguration will result in a change to the levy payable, however the result on the levy will remain proportionate to the new rateable value.
• Any premises from which charitable services, or organisations providing statutory education for children aged between 4 and 16, (including local authority funded schools, free schools and academies) will be exempt of the levy and as such will not be included in the ballot (charity shops or trading arms will be subject to the levy in line with other trading businesses). Other income will be generated by way of voluntary contributions from those not liable for the levy, together with grants and trading income. This income will be invested into supporting additional projects and services.
More detail regarding the levy is available in the full proposal at www.daventry.co.uk. Alternatively call 01327 828391 to request a hard copy.
Putting DAVENTRY COMMERCIAL ENTERPRISE on the map
FOUR YEAR BUDGET SUMMARY
2013-14
2014-15
2015-16
2016-17
Income BID Levy
217,800.00
217,800.00
217,800.00
217,800.00
Voluntary contributions and grants
12,000.00
12,000.00
12,000.00
12,000.00
Non collected levy
-11,350.00
-11,350.00
-11,350.00
-11,350.00
Total Income
218,450.00
218,450.00
218,450.00
218,450.00
Expenditure Project management and admin
15,000.00
15,000.00
15,000.00
15,000.00
Improved transport access and safety
93,500.00
93,500.00
93,500.00
93,500.00
Group buying and sharing of services
78,950.00
78,950.00
78,950.00
78,950.00
Raised profile for businesses and estates
28,000.00
28,000.00
28,000.00
28,000.00
Contingencies
3,000.00
3,000.00
3,000.00
3,000.00
218,450.00
218,450.00
218,450.00
218,450.00
Total Expenditure
Any additional income over and above that predicted will be dedicated to supporting the projects and new initiatives. All levy income is ring-fenced and only attributable to initiatives that benefit the Daventry Commercial BID.
HOW WILL EXPENDITURE BE REPORTED? The Daventry Commercial BID operation will be independently audited annually and the effectiveness of the measures taken will be gauged by key performance indicators for each project area. An annual report will be sent to levy payers at the end of each financial year.
11 www.daventry.co.uk
DAVENTRY COMMERCIAL BID
WHERE WILL THE BID OPERATE? The Daventry Commercial BID is aligned with the current and expanding commercial and industrial areas of Daventry town as identified within the Daventry Vision and Master Plan for the Daventry growth area. The Daventry Commercial BID area is shown within the dotted lines below.
Drayton Fields/ Heartlands/ Apex Park
Royal Oak
The Marches
12 www.daventry.co.uk
Putting DAVENTRY COMMERCIAL ENTERPRISE on the map
EXISTING STREETS / AREAS WITHIN THE BID AREA Alvis Way Austin Way Badby Park Baird Close Bentley Way Brindley Close Broad March Browns Road Brunel Close Caxton Close
Churchill Way Cottesbrooke Park Daimler Way Egerton Close Everdon Park Faraday Close Fawsley Park Gresley Close Hackwood Road High March
High March Close Humber Close James Watt Close Lamport Court Lamport Drive Lanchester Way London Road Long March Low March Macadam Close
Middle March Morris Road Nasmyth Road Newnham Drive Newton Close Parsons Road Prospect Way Riley Way Royal Oak Way Rutherford Way
Siddley Way Sopworth Way South March Stephenson Close West March Whittle Close
“The Business Improvement District in the town centre is a key partner of the police in keeping people safe and reducing crime and disorder. The potential for a new Business Improvement District covering businesses based outside of the town centre is an exciting one that police support and would look forward to delivering increased levels of safety to people and businesses in those areas in partnership with the new BID.” Chief Inspector Dave Spencer, Northamptonshire Police
13 www.daventry.co.uk
DAVENTRY COMMERCIAL BID
HOW THE BID WORKS Ballot papers for the vote will be posted to all ratepayers of non-domestic properties identified to be within the Commercial BID area in January 2013. The businesses are asked to return their completed vote by 14th February 2013. No ballot papers received after 5pm on that date will be counted. The result of the ballot will be announced immediately after this date.
HOW LONG WILL THE BID LAST? If voted for, the new service delivery will commence April 2013, with the first levy due from 1st April 2013. The bills for the levy payment will be sent out as soon as is practicable following this date, by Daventry District Council rating section. All monies collected will be passed to the BID management company (Daventry Business Partnership Ltd) to be administered in line with the Daventry Commercial BID business plan. The Commercial BID will be for a minimum of four years, after which renewal will require further endorsement by those then paying the BID levy.
HOW WILL EXISTING SERVICES BE AFFECTED? The BID will not pay for services that are already covered by existing business rates contributions. The Daventry Commercial BID will generate projects and services that meet the needs of businesses in the commercial and industrial areas of the town, that are not possible via the existing services. A very high standard is set within the commercial world and the aim is to see that the same level of excellence exists in the services provided to the businesses based in the commercial and industrial estates in Daventry.
HOW TO HAVE YOUR SAY On the 14th of January 2013 potential levy paying businesses within the BID area will be sent a ballot paper and asked to vote on whether they wish the BID to become operational and the new services to begin. This ballot paper needs to be returned by 5pm on 14th February 2013. To be successful, the BID must clear two electoral tests: 1. A simple majority of those that vote is required. 2. The aggregate rateable value (RV) of those that vote in favour must be greater than those that register a ‘no’ vote.
A non-vote does not count, so make sure your voice is heard and your views are known.
14 www.daventry.co.uk
Putting DAVENTRY COMMERCIAL ENTERPRISE on the map
THE BENEFITS FOR YOU AND YOUR BUSINESS Your business stands to benefit from this investment and a range of additional services that businesses and their employees have identified as crucial to the future of this area. These include:
• Improved access to and from the estates by gritting during prolonged periods of ice and snow.
• Development of traffic improvement measures to enhance road safety throughout the estates.
• Integrated travel planning at an estate level to provide an easier and more cost effective means of access to and from work for everyone.
• Group buying of energy and waste disposal and the involvement in environmental initiatives which help offset carbon footprints and create financial savings.
• To encourage new investment into the area, to reduce property vacancy levels and provide amenities for the people who work on the estates.
• A strong and effective voice with real influence over the management and development of the environment and the future of the Daventry Commercial Estates.
• A single point of contact to support your business in addressing issues normally outside your own control. As time progresses any additional investment will be used to support services and activities that are highlighted and developed with the input of you and your business. BID’s are all about improving business for the contributing businesses, and enabling those involved to direct the way forward.
15 www.daventry.co.uk
Putting DAVENTRY COMMERCIAL ENTERPRISE on the map
Further information If you have any questions or require further information please call Sally Halson on 01327 828391 or email Sally.Halson@daventrybp.co.uk
www.daventry.co.uk Daventry Business Partnership Limited, 2 Sheaf House, Sheaf Street, Daventry, Northamptonshire NN11 4AA