Creating a better environment for business BID Business Plan 2014-2018
LIVING LOCHABER BID Business Plan | Creating a better environment for business
“ If Lochaber businesses work together in a focussed way to improve the area, it’ll pay dividends for everyone.” Ian MacDougall, Owner, Coire Glas Guesthouse
04 Introduction 07 Summary 11 A BID is right for Lochaber 13 Why we should create a BID for Lochaber 15 The BID will... 24 Without a BID 26 The Voting Process 27 The BID Levy/Financials
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LIVING LOCHABER BID Business Plan | Creating a better environment for business
“ Supporting Living Lochaber is a great opportunity to decide for ourselves the best way to invest in the growth of our local economy.” Frazer Coupland
Introduction
I’m delighted to present this business proposal. Following extensive consultation with local businesses, this document outlines their priorities and gives a taste of how we can all start to improve Lochaber by creating a Business Improvement District (BID) and working more closely together for our future. A BID is set up where businesses in a defined area vote to invest collectively in local improvements over and above those provided by statutory authorities. We’re stronger together. Creating a BID allows access to external funding and assistance that is not available to individual businesses, all at a very low cost. Supporting Living Lochaber is a great opportunity to decide for ourselves the best way to invest in the growth of our local economy. All of the improvements proposed in this document are ideas from you, your employees and your customers - fed back to us through surveys and consultation. Through the BID, we can work together to increase footfall, stimulate investment and enhance the reputation of Lochaber. We can support our businesses, increase trade and improve our business environment.
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You can find more information on our website www.livinglochaber.co.uk, or for more general or national information refer to www.bids-scotland.com. The ballot papers will be posted out to all businesses on Thursday 17th October 2013, you will have six weeks to cast your vote before the ballot closes at 5pm on 28th November 2013. I have lived in Lochaber for over 40 years and know a lot of the local business people. I would urge you all to vote YES and make an investment in our future.
Frazer Coupland
Local business owner and Chairman of the Living Lochaber Steering Group
LIVING LOCHABER BID Business Plan | Creating a better environment for business
We’re stronger together. Businesses across Lochaber stand to benefit from BID investment in marketing, infrastructure and business services.
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LIVING LOCHABER BID Business Plan | Creating a better environment for business
Joining things up for visitors and local businesses. Living Lochaber BID will represent the interests of businesses across a wide area, encouraging increased visitor footfall and bringing more money into the local economy.
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LIVING LOCHABER BID Business Plan | Creating a better environment for business
“ The beauty of the BID proposal is that it will benefit all businesses. How? Simply because a vibrant tourism economy will boost trading in all sectors; hospitality and retail and, equally and importantly, by increasing business for manufacturers, the trades and professional services more generally. We will all benefit.� Steve Bracken, Business Support Manager, Marine Harvest
Summary What is a BID?
and a range of initiatives designed to maximise the benefit of our tourism economy for everyone, throughout the year. Without it, we face decline, reduced investment and could lose ground to competitor destinations.
A Business Improvement District is a defined geographical area where businesses have voted to invest collectively in local improvements over and above those services provided by the public sector, over an agreed period of time. These projects are designed to benefit the local economy, and are developed in consultation with the businesses inside the BID area.
The BID area
The Living Lochaber BID area will encompass all of Lochaber, including the full area of Highland Council wards 12 (Caol and Mallaig) and 22 (Fort William and Ardnamurchan).
Creating a BID for Lochaber will allow every business to benefit from improved investment, joined-up high profile marketing
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LIVING LOCHABER BID Business Plan | Creating a better environment for business
How does it work?
Over a five year period, small investments from businesses in the area grow into a significant pot of money, used as directed by the business community for the changes and improvements they want to see in the area. But it doesn’t stop there. Through partnerships, match funding, lobbying and joint working, other BIDs across the UK have successfully attracted further support and funding for their areas and as a result have delivered benefits far greater than the initial investment. Every business in Lochaber with a nondomestic rateable value of at least £2,000 will have the opportunity to vote ‘yes’ or ‘no’ to the creation of a BID and, if the vote is successful, will make an annual levy payment. Other businesses that wish to participate in the BID will be able to do so by opting to pay the minimum levy amount. The BID will raise funds locally to be spent locally - with the aim of improving the area for everyone and especially for those businesses who invest in it.
Why focus on visitors and tourism? Tourism touches every part of our local economy. A visitor who catches a taxi pays a fare that becomes the driver’s salary, the mechanic’s fee for servicing the car, the staff wages in both these businesses, stationery, groceries, rent to landlords and so on.
This example can be adapted easily again and again to show how the visitors attracted to our breathtaking natural landscape, events and hospitality contribute directly
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to everyone’s economic wellbeing - whether your business is in direct contact with those visitors or not. The BID isn’t solely focussed on tourism. While we recognise it will have great significance for the area, the BID will also have an important role as an advocate for the needs of other local business members, representing their interests and ensuring their voices are heard by policymakers, local government and key partners. We’re committed to adding value for every business in the BID area, from including automatic membership of the Chamber of Commerce with its powerful business network and connections to developing high quality marketing resources that will be available for all BID businesses to use.
An investment in our future.
This is the beginning of a long-term investment in our future. While this plan outlines a number of key areas in which the BID can make a difference, it isn’t a prescriptive list of all the projects which the BID can facilitate or deliver. It identifies vital first steps that have been developed by listening to our local business community. Building this relationship through ongoing consultation and partnership, the BID’s priorities and projects will evolve and grow to support our economy and make Lochaber a better place to live, work and do business. Following our initial consultation, the BID will focus its strategy on four key areas identified by Lochaber’s local businesses as priorities for investment and action.
LIVING LOCHABER BID Business Plan | Creating a better environment for business
Raising our profile. World class events have delivered massive investment into Lochaber. The BID will help us to retain these flagship events and by working closely with local marketing groups and others, grow new and varied festivals and events across Lochaber.
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LIVING LOCHABER BID Business Plan | Creating a better environment for business
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LIVING LOCHABER BID Business Plan | Creating a better environment for business
“ More events outside the peak visitor season will really help us build up our resilience for the quieter months. It’s good for business, good for employees and good for the local economy.” Stewart Leitch, Owner, Moorings Hotel
A BID is right for Lochaber The objectives of the BID
Accountable to local businesses, the BID will invest in a series of improvement projects which the business community feel will deliver greatest benefit to the area and build on our iconic natural assets.
The four strands
• It will generate the investment needed to make meaningful improvements to our infrastructure, making the area more
attractive to businesses, residents and customers.
The BID will work to attract footfall and • It will deliver strong, effective marketing increase customer spend, especially in the shoulder and off season when we need and the tools and management resources visitors most. It will safeguard and build upon to ensure that everyone feels the benefit the established Outdoor Capital of the UK of that marketing activity. (OCUK) brand, support the important work of the area marketing groups, raise the • It will support and develop local events profile of the area through co-ordinated that bring in the visitors who play such a and effective marketing campaigns, vital role in our local economy - and improve the perception of Lochaber and provide dedicated resources to join up communicate to visitors everything that we have to offer in our spectacular landscape these different strands of activity and make and diverse local economy. them work together for everyone’s benefit. The BID will work hard to leverage investment, providing core services and seed capital to secure even more substantial investment in our area.
• It will create a better environment for
local business, lobbying on their behalf
and providing a voice for SMEs. The BID will also provide networking opportunities, enable cost savings through the Scottish BID network, create local supplier opportunities and provide the many benefits of Chamber membership in what will be one of Scotland’s largest Chambers of Commerce. | 11
LIVING LOCHABER BID Business Plan | Creating a better environment for business
We all live, work and play in Lochaber. Creating a BID will allow us to increase investment in our local area and let local businesses decide on how that investment is made.
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LIVING LOCHABER BID Business Plan | Creating a better environment for business
The BID will create an area where businesses benefit from strong marketing and quality infrastructure. A place which offers a ‘joined up’ visitor experience, identifying and connecting for our guests the full range of events, activities and places to explore stimulating our economy by extending visitor spend, stay and season.
Why we should create a BID for Lochaber A BID gives us a strong, united voice to deliver improvements that have been chosen by local businesses; to direct investment in our area and to attract further funding and support. Effective marketing, great infrastructure and superior facilities are needed to ensure Lochaber becomes and remains a premier UK and international destination. In an economic climate where competition is making public sector funding less available and more difficult to secure, the BID is the best way to secure the investment we need. Core funding for organisations will be more difficult to secure in the future. Close partnership working between the Chamber of Commerce and the Outdoor Capital over the last 18 months has prepared both organisations to merge in early 2014 with both VisitScotland and Highlands and Islands Enterprise (HIE) supporting this approach.
Voting for a BID shows both government and investors that we are serious about taking united action to make Lochaber better; that we have the confidence to invest in the improvement of our area and that we have a clear vision for the future. In this way, BIDs across the UK have demonstrated an ability to unlock resources unavailable to individual businesses, establishing a mechanism for significant, sustained investment. Over 20 BIDs operate across Scotland, each one voted for by businesses who understand the power of a BID to improve their bottom line and make the area a better place to work. Close to us, Oban businesses have their own BID, while the benefits of the BID in Inverness have led businesses there to renew it for a second five year term. Living Lochaber will help to ensure that our business community competes on equal terms and has every opportunity to thrive.
The Living Lochaber BID is agreed as a natural home for the OCUK brand, committed to building on existing successes and delivering for the future. It will facilitate future delivery of funding from key partners to support destination marketing for our area.
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LIVING LOCHABER BID Business Plan | Creating a better environment for business
There are a number of practical projects that can improve the area for everyone from integrating walking routes to creating new launch sites for sailing and kayaking.
“ Fort William Chamber of Commerce actively supports Living Lochaber and would encourage all its members and the wider Lochaber business community to vote ‘Yes’ to the BID. This is an opportunity which we simply cannot afford to miss. Throughout Scotland and the rest of the UK, other areas have embraced the BID concept and seen major improvements to their business and social environment. Without a successful BID, Lochaber will lose an important opportunity to raise substantial funding and generate further investment in a range of projects aimed at improving the experience of living, working and visiting Lochaber. The Chamber of Commerce recognises the potential behind a united business community and positively encourages collaborative working. The Living Lochaber BID is the ultimate business partnership, bringing together every business within Lochaber with common purpose to focus our efforts for the benefit of everyone.” Donald Hind, Chairman Fort William Chamber of Commerce
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LIVING LOCHABER BID Business Plan | Creating a better environment for business
The BID will...
Enhance our infrastructure
A 5 year investment of £268k to improve amenities across the BID area • Leveraging £1m investment to create a multi-screen cinema and digital media centre It’s easy to be complacent given our rich natural assets - but competition between visitor destinations has never been greater. The tourism economy affects us all, not only hotels and restaurants, but also tradespeople, shop owners, manufacturers, agricultural producers, landowners...
Many individuals and groups work hard to further enhance our area, from the Pontoons at Lochaline and Mallaig, to the proposed All Weather Sports Facility at Fort William. The BID will provide additional support to achieve even more together - providing co-ordination, resourcing existing groups, facilitating partnerships and providing the direct funding that is essential to leveraging larger investment and delivering tangible projects.
There are a number of practical projects that can improve the area for everyone, from improving parking facilities to, integrating walking routes, supporting better launch sites for the sailing and kayaking communities, re-opening our key, rural public toilets... the list goes on. Without an investment strategy for our infrastructure, the area will decline and become less attractive to both visitors and residents.
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LIVING LOCHABER BID Business Plan | Creating a better environment for business
• Joining up walking routes and ensuring The BID company will have the human and that Lochaber remains a hub for long capital resources to help release funding distance walking in Scotland. from sources like Creative Scotland, the Supporting connections to related Coastal Communities Fund, National Lottery, projects like Away to the West, the and more. In addition to leveraging funding support, the BID will facilitate partnership Cape Wrath Trail, the West Highland working between key organisations, area Way and the Great Glen Way.
BID Infrastructure Projects
marketing groups, local businesses and community groups to support the delivery of infrastructure projects.
Improved facilities help to support a diverse workforce and retain talent, particularly young people. This in turn helps recruitment for local businesses and improves the pool of skills available. Among its prime objectives, the BID will support the delivery of key physical projects relevant to businesses across Lochaber. These will include the creation of an entirely new multi screen cinema and digital media centre in Fort William by 2015. Working with partner agencies, we aim to leverage a £1m investment (that will otherwise be spent elsewhere). This centre will provide an all weather location for conferences and events, create local jobs, encourage investment and strengthen our offering both as a destination and as a place to live.
• Developing ‘Dark Skies’ status for Ardnamurchan - a dark-sky area is one that is kept free of artificial light and which promotes astronomy. The sites are a proven draw for special interest tourism and only one other designated site exists in Scotland. • Making the most of our iconic assets like Ardnamurchan Lighthouse, Ben Nevis, Glenfinnan Viaduct, Glencoe and the West Highland Line by increasing awareness of these ‘mustsee’ attractions and improving the visitor experience when visitors arrive at each location by supporting signage, facilities and other infrastructure improvements.
The BID will actively support group projects to improve the Fort William High Street and deliver a range of benefits across Lochaber. Projects proposed during our consultation process include:
• Supporting the development and promotion of key viewpoints, photographic vantage spots, historic landmarks and film locations
• Supporting the sailing and watersports communities to provide and maintain new launching sites across Lochaber over the next 5 years, making it easier and safer to enjoy our waterways.
• Reducing the visual impact of bins and recycling points in prominent village settings by introducing well-designed screening.
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• Supporting communities in the reopening of key public toilets for the comfort and convenience of visitors.
LIVING LOCHABER BID Business Plan | Creating a better environment for business
“ The built environment of Lochaber needs significant investment to match our spectacular natural landscape. We believe that the Living Lochaber BID will provide a sustainable mechanism for investment in our buildings and public spaces.� Scott Donald, Kearney Donald Partnership
Infrastructure is inextricably linked to the experience of a place. To keep pace with competitor destinations and meaningfully enrich the experience of living, working in and visiting our area, investment beyond minimum statutory services is essential.
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LIVING LOCHABER BID Business Plan | Creating a better environment for business
“ Local area marketing groups emerged across Lochaber over three decades ago and have been strengthening ever since; now we have a great opportunity for another business-led step change. Local area groups and the BID will work together for mutual benefit and rural communities will clearly gain from co-ordinated action and new levels of spend.” David Cooper, Owner, Crafts and Things, Glencoe
The BID will... Promote local events
Events are central to bringing people to Lochaber in the ‘off-season.’ At present 5 year investment • £332k • to attract supplemental funding from EventScotland there is no single list of everything that takes place, much less a central resource to inform and deliver a larger, co-ordinated local businesses and visitors of everything programme of events and festivals they need to know to make the most of across Lochaber, throughout the year. what’s going on. Our local music, cultural, environmental and sporting events are a critical hook to draw visitors. Together with our iconic natural assets, they create our identity as a destination. Through the hard work of many individuals, associations, groups and businesses, over 150 festivals and events across Lochaber generate an estimated 50,000 bed nights and bring in over £3m of spending into the local economy. What’s more, these festivals bring a richness to our community life and make Lochaber a better, more interesting place to live for us residents.
Through the BID, we can do even better
With an investment of £332K, the BID will work with area groups, communities and partner organisations to attract national/international events and additional funding support to boost the local economy.
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The BID will work to increase visitor numbers, enhance the visitor experience and maximise returns by bringing events and visitors to all parts of Lochaber at the right times of the year - particularly the shoulder and off-peak periods. In partnership with existing area marketing associations the BID will develop and fund an ongoing events growth strategy for each area. By allocating funds and employing a full-time events co-ordinator the BID will ensure businesses know what’s going on. That way, everyone can build the benefit of local events into their own marketing initiatives, supported by the wider activity from the BID. Together we can get our message across to more people more effectively.
LIVING LOCHABER BID Business Plan | Creating a better environment for business
Projects to make the most of Lochaber’s events will include:
• Employing a full-time Lochaber Events Co-Ordinator to support existing events, ensure their continuity and actively encourage the development of new events across the BID area. • Improving marketing of events both online and in print. This will include producing an events planning service and providing social media support to raise awareness, increase engagement and boost attendance. • Focussing on developing the number of events on offer, particularly with a view to attracting visitors in the shoulder and off-season and supportinng the more remote rural communities.
• Working to expand the range of events across Lochaber to include heritage, musical and sporting events. Attracting events such as the Royal National Mòd will bring a wider range of visitors to the area at different times of the year. • Creating a Celtic Paddle Festival from 2014 to take advantage of our natural resources and celebrate our wonderful coastlines, drawing in additional visitors. With the inaugural event based in the Road to the Isles area, the venue will move each year to make the most of all the stunning locations across Lochaber.
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LIVING LOCHABER BID Business Plan | Creating a better environment for business
“ Businesses getting together for common purpose can create powerful results. The BID gives us a rare opportunity to collaborate on an impressive scale and really get Lochaber working together – we should seize the chance!” Laurence Young, Director The Dragon’s Tooth Golf Course & Director, Glencoe Activities
Provide dedicated marketing support
5 year investment • £594k • to conduct valuable market research and to develop and deliver effective and inclusive promotional campaigns for the benefit of all businesses in the BID area. Mentioned by almost everyone we engaged with during the consultation process, dedicated marketing support for Lochaber was the single most requested priority for local businesses.
contributors) have indicated that the best way for them to continue to offer such support in future is via a significantly selfresourced organisation such as a BID. Without the BID, the future marketing spend of Lochaber will decline dramatically. Conversely, a successful BID will substantially increase the level of available investment and help us stack up better against our competition.
With a successful ballot, the existing Outdoor Capital company will come The BID will create an opportunity to attract to an end. The OCUK brand will transfer matched funding from key partners like to the BID and benefit from the increased VisitScotland, enabling a potential marketing resources and investment it is able to offer. spend of £1m over the five year term of the BID. Your ‘yes’ vote will secure a core marketing budget almost 36 times greater It will not only fund a series of targeted than that which is currently available - and campaigns, but the BID will also invest in with the support of VisitScotland and other meaningful market research to understand grant funders, the overall marketing budget our target customers and how best to reach is expected to rise higher still. them. This information will be shared with local businesses and provide a baseline As the new home of the OCUK brand, the against which we can measure the impact BID will develop and build on the work and success of our marketing activity, already done by OCUK and ensure that it is allowing us to continually learn and improve broadened in appeal and made meaningful during the BID term. for each of our principal market segments. Our existing destination marketing organisation, OCUK has been successful in attracting significant external funding to bolster its core budget of £40k, but the landscape is changing, and both VisitScotland and HIE (the significant 20 |
From the research we have already, we know that over 50% of visitors to the Highlands live in Scotland, with 30% coming from the rest of the UK. As a result, the BID’s focus over the first 5 years will be primarily on the Scottish home market.
LIVING LOCHABER BID Business Plan | Creating a better environment for business
1000000
Impact of the BID on 5 year marketing investment
750000 500000 250000 0
Current Investment*
*’Current Investment’ is a theoretical figure which makes the optimistic assumption that current levels of private sector investment can be sustained. It should be noted that this may not be possible.
Dedicated BID investment
Projected Budget
Planned marketing activities
• Conducting effective market research to identify our target customers and support BID area businesses in the development of an overall marketing strategy.
environments available in Lochaber ‘from sea to summit’ - and the unique visitor experiences which this allows us to offer. • Creating customised ‘Experience’ brochures to promote the wide range of opportunities available in the area - for example ‘Five Great Family Days Out,’ ‘Walking in the Outdoor Capital - 50 Wonderful Walks,’ ‘On Location in Lochaber - Famous Film Locations’ and ‘Unmissable Wildlife Discoveries’ covering the ‘Big Five’ wildlife attractions as designated by VisitScotland and Scottish Natural Heritage. • Working toward celebrity endorsement of key assets such as ‘Exploring the Outdoor Capital - 10 terrific drives’ with a leading motor journalist or TV presenter. The same could be done for other aspects of the area such as a guide to local cuisine and great places to eat with a celebrity chef.
• Introducing a planned and consistent email marketing programme promoting seasonal incentives and providing more compelling reasons to visit. This is all a part of the ‘joining it up for visitors’ • Working with local photographers philosophy that runs through this and videographers the BID will build business plan; we will provide a resource of high quality stock images resources for professional, co-ordinated and videos which show Lochaber to its data capture of email addresses in best advantage. This marketing resource partnership with the area marketing will be made available online to all BID groups. businesses and marketing groups to support their own promotional activity. • Creating an interactive online planner, By monitoring how the collateral is used designed to build an itinerary centred we will be able develop and refresh the around individual visitors and their content to the best advantage of our interests, providing insights and members. encouraging wider exploration of all Lochaber has to offer. • Creating and supporting a series of initiatives across our marketing areas which highlight the range of natural
• Producing and promoting a visitor trail, to encourage tourists to explore all of our natural assets.
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LIVING LOCHABER BID Business Plan | Creating a better environment for business
“ Going down the route of a BID for Lochaber seems to be a no brainer to me - for a relatively small annual contribution, local businesses create a meaningful pot of money which levers in more money and is used to make this area a better place to do business, a better place to work and a better place to live. I could spend the same amount on a single advert and not know whether it helps or not, whereas the BID will make lasting improvements for me, my business and the people who work here.” Marian Austin, Nevis Range
Tourism is everyone’s business. Nevis Range is the biggest tourist attraction in Lochaber. It engages local construction companies, fabricators, printers, designers, engineers, timber merchants. Supporting tourism in Lochaber helps support all our local businesses.
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LIVING LOCHABER BID Business Plan | Creating a better environment for business
for all BID businesses will help them reduce overheads, manage risk, avoid expensive litigation and enhance employee wellbeing.
Create a better business environment
220k investment over 5 years • improving the business environment of Lochaber by increasing networking opportunities and maximising the support available to businesses, especially SMEs. The BID will bring the benefits of BIDs Scotland membership to our local business community, including initiatives that harness the collective purchasing power of all Scottish BIDs to deliver real savings. Competitive pricing and preferred rates will be available on a range of business services including energy, water, telecoms, insurance, postal and merchant services.
• The BID will ensure that local providers are engaged in the delivery of BID services wherever possible so that our local economy benefits directly. It will also secure Chamber of Commerce membership for all BID business (making our Chamber one of the largest in Scotland), with all the associated benefits that this brings in terms of networking, collaboration, credibility and lobbying power. • The local Chamber helps businesses to grow and prosper through regular networking, business training, mentoring support and access to free documentation - plus a range of specialist services, including legal, employment and healthcare. The inclusion of Chamber membership
• The BID will be managed by local businesses for local businesses. An open and participative approach will ensure that everyone benefits directly from our research, marketing and events. The BID will work hard to ensure that at all times businesses are kept informed through regular email contact, networking opportunities and online resources as well as direct contact with BID personnel. • The BID will support “Lochaber Ideas Week” - an annual gathering of local and national thought leaders created to provoke new ideas and inspire action. Ideas Week will stimulate new ideas and ventures, create valuable new connections, encourage collaboration and raise the profile of the area. It will also create new reasons to visit the area for those who want to learn, contribute and participate. • The BID will work with the University of the Highlands and Islands (UHI) to ensure that business training needs are met and facilitated within Lochaber, wherever possible.
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LIVING LOCHABER BID Business Plan | Creating a better environment for business
Without a BID
The decision to vote on a BID for Lochaber hasn’t come about on a whim - it’s a carefully thought through response to a changing landscape of public sector support and funding. The reality of moving forward without a credible, representative body to promote the interests of businesses across our area will have a number of negative consequences:
• Funding for marketing the area will decline dramatically. • The multi screen cinema and Digital Media Centre may not be delivered in the near future, or at all. • There will be no representative body committed to the ongoing marketing of the Lochaber area. • There will be no central co-ordination and support for festivals and events across the area.
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• We will not have a credible, central body that is able to leverage additional funding from external organisations such as Creative Scotland, VisitScotland, HIE etc. • We will risk losing lucrative flagship events to other destinations which have stronger marketing and events support. • Effective market research to better promote Lochaber will not be funded. • Natural attractions will continue to be a secret to locals and visitors alike.
LIVING LOCHABER BID Business Plan | Creating a better environment for business
“ This isn’t a short-term initiative, look at the facts. All over the UK towns and cities are directly benefiting from the BID process - large sums of money are being generated through matched funding with Government agencies and invested according to priorities set by local businesses. Everyone in the area stands to benefit from the improvements a BID will bring and we’re fully behind it.” Donald Hind, Corpach Boatbuilding Company Ltd
A BID can deliver more for local businesses. With a modest investment from local businesses via the BID levy, BIDs across Scotland and the UK have shown time and again that they can attract match funding and leverage substantial additional funds for local investment.
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LIVING LOCHABER BID Business Plan | Creating a better environment for business
The BID offers a unique opportunity to improve the business environment in Lochaber. It isn’t about replacing local authority funded services, it’s about delivering new projects, chosen by you to sort out the issues affecting your business.
Don’t miss out - vote YES. Finlay Finlayson, Owner, The Underwater Centre and Crannog Concept
The Voting Process
The ballot papers will be issued by post on the 31st October 2013. You will have six weeks to cast your vote before the ballot closes at 5pm on 12th December 2013. BID legislation stipulates that for the ballot to be successful:
• There must be a turnout of at least 25% of eligible businesses (the electorate) both by number and by rateable value. • Over 50% of those that vote (by both number and rateable value) must vote in favour of the BID. • Where a business property is vacant, the voting papers will be sent to the property owner. If the ballot is successful, with the majority of businesses voting in favour by both number and rateable value, payment of the annual BID levy will be mandatory on all eligible businesses in the BID area. If successful, the BID will commence in January 2014 for 5 years through to December 2018.
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LIVING LOCHABER BID Business Plan | Creating a better environment for business
“ I’m most excited about the idea of having really strong, managed marketing to make sure people know everything we have to offer, see more of the area and spend more time and money locally.”
Stephanie James, Burnlea Guest House
The BID Levy/Financials The Bid Levy
A BID levy is a fair and equitable way to fund additional projects and services that businesses in the area would like to have, and which the public sector is not required to provide. Following a successful ballot the levy will be mandatory for all eligible businesses in the BID area. Everybody benefits therefore everybody pays. It has been agreed by the Living Lochaber Steering Group that the levy rate will be a fee structure based on rateable value of the property at the time of the ballot (12th December 2013). This will generate an income of approximately £360,000 a year.
Rateable value
Tourism & Retail Sector
• Improvement Levy payments will be made by those liable to pay nondomestic rates with a rateable valuation of £2,000 or above and will be made by the occupiers (as the eligible persons) only, with the exception of vacant premises when the property owner will be liable for the Levy payment. • The Improvement Levy is not linked to what businesses actually pay in rates but is based on the rateable value of the property.
Commercial Sector
Total Annual Levy
Cost Per Week
Total Annual levy
Cost Per Week
£2,000 - £7,500
£196.00
£3.77
£147.00
£7,501 - £10,000
£340.00
£6.54
£255.00
£10,001 - £25,000
£480.00
£9.23
£25,001 – 50,000
Education & Wellbeing Sector Total Annual Levy
Cost Per Week
£2.83
£98.00
£1.88
£4.90
£170.00
£3.27
£360.00
£6.92
£240.00
£4.62
£780.00
£15.00
£585.00
£11.25
£390.00
£7.50
£50,001 - £100,000
£1,100.00
£21.15
£825.00
£15.87
£550.00
£10.58
£100,001 - £300,000
£1,900.00
£36.54
£1,425.00
£27.40
£950.00
£18.27
OVER £300,000
£4,100.00
£78.85
£3,075.00
£59.13
£2,050.00
£39.42
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LIVING LOCHABER BID Business Plan | Creating a better environment for business
Discounts will be made in two categories, ‘Commercial’ for all non-tourism businesses and ‘Education & Wellbeing’ for nondomestic ratepayers identified as providing a valuable public service role. Commercial businesses will pay 75% of the levy for their rateable value band. ‘Education & Wellbeing’ businesses will pay 50% of the levy for their rateable value band. The BID levy will be paid by the occupier (the eligible person), the person liable to pay the non-domestic rate. However, the property owner will be liable to pay the levy where a property is vacant on the day the levy invoice is issued and for all the period thereafter when the property is vacant. There will be no increase in the levy amount as a result of the future revaluation of the non-domestic rates.
• There are approximately 1,000 nondomestic rate paying properties in the BID area which will generate a BID investment levy income of approximately £360,000 per annum and an estimated total levy income of £1,800.000 over 5 years. • All eligible non-domestic properties that are listed on the Local Assessors
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Valuation Roll on the ballot date will be liable to pay the levy. • A full listing of affected businesses and respective categories will be available before ballot papers are issued, at
www.livinglochaber.co.uk/our-bid/the-levy.
• If there is a change in occupier for any property, the property owner will be responsible for paying the levy at the discounted ‘Education and Wellbeing’ rate until a new tenant is found. • Any new commercial development, subdivision of existing properties, merging of properties or new business with a non-domestic rateable valuation coming into the area during the 5 year term will be liable for the BID Improvement Levy, according to the guidelines outlined in this section.
Exceptions
Exceptions from payment of the levy will be made for libraries, schools, village halls and community-run centres, lighthouses, emergency services, graveyards and places of worship.
LIVING LOCHABER BID Business Plan | Creating a better environment for business
“ The BID is a logical and sensible way we can all contribute a tiny percentage of our income to ensure that we can collectively improve our long term business prospects.� Andy Keen, owner, Torlinnhe Guest House
The BID Budget Year 1
Year 2
Year 3
Year 4
Year 5
Total
Income Living Lochaber Levy
Expenditure
360,000
Year 1
360,000
Year 2
360,000
Year 3
360,000
Year 4
360,000
Year 5
1,800,000
Total
Enhance our Infrastructure
82,000
78,000
49,000
35,000
24,000
268,000
Promote local Events
60,000
58,500
63,000
74,500
76,000
332,000
105,000
106,000
127,000
125,000
131,000
594,000
Better for Business
40,000
42,000
44,000
46,000
48,000
220,000
Management and Operational Costs
53,000
55,500
57,000
59,500
61,000
286,000
Contingency
20,000
20,000
20,000
20,000
20,000
100,000
Marketing
1,800,000 Employees Payroll Percentage
4
4
4
4
4
4
25%
26%
26%
27%
28%
28%
Enhance our Infrastructure Promote local Events Marketing Better for Business Management and Operational Costs Contingency 0
150,000 Year 1
Year 2
300,000 Year 3
450,000 Year 4
600,000 Year 5 | 29
LIVING LOCHABER BID Business Plan | Creating a better environment for business
Managing the BID
Following a successful ‘Yes’ vote, the management and operation of Living Lochaber will be transferred to a Company limited by guarantee within three months. There will be a detailed set of protocols which will cover the management of Living Lochaber and the billing, collection and transfer of the levy. The Company will be managed by the Living Lochaber Steering Group until a Board of Directors is elected.
The Board
A fully constituted Board of Directors will be established of up to 12 voluntary Directors, with a minimum of ten. Every business that pays the levy, or the voluntary contribution if they are below the levy threshold, will have the opportunity to nominate either themselves or another representative within the BID area to be elected onto the new Company Board. If nominations exceed the number of board places allocated to their sector, businesses will be able to vote for the representatives of their sector (tourism, commercial or public) at a public meeting. The new Company will be run by the businesses for the businesses. This Board will be responsible for all decisions relating to staff, contracts and other activities generated by Living Lochaber. The Board will include at least four members from the ‘Tourism’ sector, two each from the ‘Commercial’ and ‘Education & Wellbeing’ sector and one member from voluntary levy payers. In voting for the Board, company
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members will be encouraged to ensure a good geographic representation from each of the five areas across Lochaber. Highland Council will be invited to provide an Advisory role through at least one Council Officer. The Chair and Vice-Chair will be elected by the business members of the Board. The Board will appoint other professional services as they deem appropriate to ensure all legal and financial requirements are met. The Board will also adopt best practice in governance and operational procedures whilst being open and transparent in its operations. The Company will report regularly to BID levy payers on progress of the projects outlined in the BID Business Plan. Detailed independent reviews at the halfway point and at the end of year four will take place to ensure the BID is delivering projects and services as detailed in the plan.
Alteration Statement
The BID Company Board will have the ability to adapt or alter the projects and services from year to year to reflect any change in economic circumstances or any new opportunities that may arise. This will be in the best interests of the businesses and without recourse to an alteration ballot.
LIVING LOCHABER BID Business Plan | Creating a better environment for business
BID Steering Group
Business Representatives who have helped develop the BID Proposal through to this Business Plan via their involvement in the Steering Group are:
Frazer Coupland, No Fuss Events (Chair)
Laurence Young, Glencoe Activities (Vice Chair)
Don Hind, Corpach Boatbuilding
Stephanie James, Burnlea Guest House
Stewart Leitch, Moorings Hotel
Marian Austin, Nevis Range
Andy Keen, Torlinnhe Guest House
Finlay Finlayson, The Underwater Centre and Crannog Concept
Scott Donald, Kearney Donald Architects
Derek McGillivray, The Happy Medium
Ian MacLeod, Wild West
Dave Wrigglesworth, West Coast Motoring | 31
Get in touch:
Living Lochaber BID, West Highland College, UHI, Carmichael Way, Fort William PH33 6FF Tel. 07771 821975 info@livinglochaber.co.uk Produced by prettybright.co.uk. Images in the Business Plan provided by www.kennyfergusonphotography.com and www.thewriteimage.co.uk