Victoria Business Improvement District Business Plan 2009
Written by Ruth Duston and Sarah Greenaway at Victoria Partnership Limited Designed by Sugarfree Design, www.sugarfreedesign.co.uk Photography by Richard Lewisohn Printed on 100% recycled paper with FSC certification
contents Introduction
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How do we know what Victoria needs?
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Sector benefits
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- Corporate businesses - Retailers - Hospitality and leisure operators
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The BID offer
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- Safe and secure - Clean and green - Visitor destination - Showcase victoria - Prosperous economy - Capital fund
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The BID budget
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- Victoria BID budget (April 1 2010 to March 2015) - Cost to your business - Calculating the BID levy - Collecting the BID levy - Voluntary contributions
Expenditure - The BID board - The executive team
Legal arrangements - Proposed BID boundary - Victoria BID street names
Bid levy rules–who will pay the levy? - How much investment will it create?
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Introduction Victoria is a major centre for employment and growth. Once renowned as the hub for central government departments, the area has experienced significant change over the past five years through a number of new developments, creating an increase in both the retail and commercial sectors re-locating to the area. The area will continue to be developed over the next decade and is fast becoming a leading commercial hub of activity and home to a number of high profile companies with a strong retail and leisure offer. Victoria is complemented with an excellent mix of restaurants and delightful pubs, high street outlets, two theatres, and quality boutiques. Nearby Belgravia creates a sense of place and stability. Victoria is an excellent blend of old and new.
The area also benefits from excellent transport links and this is set to be further enhanced with the Victoria Station Upgrade, which is now underway. The upgrade will make extensive improvements to the underground, with two new entrances located near to Cardinal Place. Victoria is an eclectic and diverse area but until recently it has been perceived as nothing more than a gateway, it has never been recognised as a destination with its Victoria Partnership Limited
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own identity. Inadequate signage; frustrated pedestrians; narrow footpaths and congestion have been a major contributing factor in generating a poor image of the area. Such diversity created the need for a partnership that brought together land owners, developers and commercial occupiers. Therefore in May 2007, the Victoria Partnership was formally established. This private sector partnership aimed to provide a collective voice for business, driving forward a powerful agenda to develop an identity for Victoria as a vibrant and cultural destination for all who work; visit and live in the area. Over the past two years the Partnership has carried out a series of projects that demonstrate to the wider business community BID Proposal 2009
what a private regeneration partnership has the potential to achieve. To date the Partnership has been reliant on voluntary contributions from its 18 partners. In order to make the Partnership sustainable it is proposed that a Business Improvement District is developed that supersedes the Partnership. BIDs have numerous advantages for the area in which they operate including; economic growth and investment, improved social well being for employees and residents and improved public realm through sustainable investment for capital projects and services. BIDs aim to create a more appealing environment, reduce crime, market the area and provide a voice for local businesses.
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A BID is a geographically defined area in which businesses are asked to make a financial contribution. The contribution is a small levy determined by the rateable value (RV) of the business. All eligible businesses are given the opportunity to vote on the proposals and if there is a majority “yes� vote, the BID is deemed successful and all businesses are then charged the additional levy. All income generated is spent directly in the defined area and spent solely on projects determined by the local business community. A BID ballot has a five year lifespan, at the end of which, businesses are reballoted to determine whether they would like the BID to continue.
There are currently 78 BIDs in England with three in Westminster alone: Paddington BID (www.inpaddington.com), Heart of London (www.heartoflondon.co.uk) and New West End Company (www.newwestend.com). The three Westminster BIDs have been well received by the business community and all are now in their second term. The consultation and debate about BIDs is relevant to every business, whether they support or oppose it. The Victoria Partnership has been working with local businesses to ensure that all fully understand what a BID is and its possible impact for Victoria.
...London starts here
Victoria Partnership Limited
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How do we know what Victoria needs? A consultation exercise was undertaken by the Victoria Partnership between November 2008 and March 2009 – A Perception Analysis – to determine the views and opinions of Victoria businesses on their area. The consultation formed an important step in the process of moving forward the Victoria Partnership towards becoming a BID and was commissioned to gauge the views and highlight the key issues for businesses and occupiers in the Victoria area. The consultation was a questionnaire based survey and gathered responses to the following key areas:
BID Proposal 2009
Environment Employment, Enterprise and Training Signage and Way Finding Tourism and Culture Marketing and Promotion The Potential BID Proposal The survey was underpinned by a cross cutting theme on perceptions of Victoria and where and how improvements could be made. The consultation targeted key occupiers who would be eligible to vote in the BID process
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which amounted in total to 174 “businesses” or 271 “hereditaments” or rental units. The consultation targeted the most senior personnel within each organisation. Out of the potential 174, the consultation gathered 70 responses in total (40% of the target population), which is a significant proportion and an excellent response in terms of this type of research. The information was collated and analysed into a BID Consultation Report in April 2009, which summarised the findings. This report demonstrated what the business community felt were key issues that needed addressing in the area. This has fed into and determined the proposed business plan for the Victoria BID. The BID will seize the opportunity to further build upon the changes to date, bringing businesses together to work as a collective to
ensure all new development is coordinated and phased to minimise the impact this will have on the area. The Victoria BID will work with developers and local stakeholders to strengthen the retail offer for Victoria and work together to increase footfall and dwell time to create a more vibrant destination throughout the weekend period. The BID will work to ensure that all employees relate to their wider setting and commercial tenants know they are located within a prime destination. Hospitality and leisure will benefit from the large visiting population coming into Victoria and work towards ensuring Victoria is a key principle location as a visiting destination throughout the 2012 Olympics. Over the next five years the BID will work towards delivering a number of projects, all of which will be measured and monitored against Victoria Partnership Limited
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baseline data to ensure tangible outcomes are delivered. The projects will be divided across five key themed areas of activity: Safe and Secure – Improve security and further develop the role of the Safer Neighbourhood Business Team, with emphasis on monitoring low level crime and anti-social behaviour. Clean and Green – To facilitate improved signage and pedestrian routes through the area and address specific issues such as “rough” sleeping. An enhanced Visitor Destination – To influence more “dwell” time in the area from the visiting population. To encourage more use of local facilities to visitors staying in Victoria.
BID Proposal 2009
Show Case Victoria – Marketing and Promotion of the area through a number of dedicated events and communication tools. To create an identity for Victoria. A prosperous economy for all to share – To raise the footfall in the area, in particular over the weekend period and ensure that the small business community share and prosper from the investment made within the BID area.
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Sector Benefits The Victoria BID wants to deliver a business environment that works for each and every business regardless of their sector, some of which have been highlighted below:
Corporate businesses » A strong business voice on issues that matter to you in your business location. » An enhanced, cleaner and safer environment improves the area for visiting clients. » A unique opportunity to have your say about making a positive impact on your business location. » Staff turnover An enhanced business environment reducing staff turnover that will provide corporate tenants with a strong experienced staff team. A pleasant working environment will promote minimal staff turnover, delivering an improved bottom line.
Retailers » To increase footfall and more “dwell” time in Victoria especially throughout the weekend period. » Increased consumer spending can and does lead to increased profit. » Enhanced community safety with retail specific activity tackling all issues including low level crime and anti-social behaviour. » A cleaner and safer trading environment for Victoria. » Sustained investment in the BID area over a five year period.
Hospitality and Leisure Operators » To promote the visitor offer for Victoria and the surrounding area. » Assist visitors and tourists to easily and quickly locate Victoria’s key iconic sites and venues through the ambassadorial programme.
» Deliver a seasonal marketing and events programme that will ensure that there is always something to see, somewhere to go and something to do for our customers and visitors in Victoria.
Victoria Partnership Limited
Photo © Martin Stewart
“We are fully supportive of the BID at this time and welcome any proposed improvements to the Victoria area. As a major West End Theatre that brings up to 600,000 visitors to the area each year, it can only be good for our patrons, and for Victoria in general, making it a better place to work, live and experience everything the area has to offer.” Andrew Mills, General Manager, Victoria Palace Theatre
Photo Š Martin Stewart
“I am delighted to be supporting such a powerful agenda for Victoria. A BID is an excellent way of providing a collective voice for business and driving forward positive change in an area. This is a tremendous opportunity to build upon everything that has been achieved to date. A yes vote will put every business at the heart of this dramatic transformation, making Victoria the destination for commercial, retail and tourist activity.� Mike Noakes, Chairman of Victoria Partnership
Victoria Partnership Limited
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The BID offer The proposals contained within this document have been written based upon: Pilot projects funded to date Liaison with local businesses Perception Analysis Draft Business Plan The BID will only provide services that are identified and determined by the local business community. BIDs do not affect the level or quality of the service provided by the local authority. An Operating Agreement is formed between the BID company and the Local Authority. All BID activity will be measured against Key Performance Indicators. The Victoria BID ballot will be held in October 2009 and if a majority vote is received, the BID will go live in April 2010. The BID proposes to deliver the following projects over the next five years:
Safe and Secure
Total Spend pa £300,000
Through the Victoria Partnership we have established a dedicated Safer Neighbourhood Business Police Team. With Victoria highlighted as a high profile area in terms of security the police team is complemented by a very comprehensive CCTV system. The Victoria BID will invest in the team and associated facilities to ensure all crime including low level crime and anti-social behaviour is addressed. To pilot facial recognition system onto CCTV to address low level crime and anti-social behaviour To implement Pub Watch and Shop Watch schemes moving towards the well regarded Safer Social and Business Awards To develop a database to assist all employers BID Proposal 2009
recruiting staff through the National Staff Dismissal Register To establish a radio link scheme to provide an immediate response to support staff in particular those within retail and hospitality Designing out crime through training, lighting and private security patrols To employ an economic crime co-ordinator to focus on specific problems and to keep business informed on specific issues relating to business crime To work with The Passage in providing assistance for dedicated outreach work in the area, to encourage non-migrant “rough” sleepers to work towards re-entering mainstream society.
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Clean and Green
Total Spend pa £200,000
With a number of planned redevelopments set to take place in Victoria over the next decade, the environment theme will be fundamental for the BID as a key area of activity. A number of new developments will take place in close proximity. The Victoria BID will work on behalf of business:. To ensure we mitigate the impact of development on the business environment through communication with developers and contractors To keep businesses informed and updated on road closures and temporary re-routing of buses and taxis To ensure all businesses know what developments are underway and the vision for the area in terms of business mix To undertake monthly environmental audits to maintain a clean and attractive area, targeting hotspot areas
To commission a full audit of signage for the Victoria BID area and consult and work with local business to improve signage and way finding To work with Network Rail and Transport for London to explore passenger flow into and out of both the station and underground to reduce congestion To continue with the implementation of the Carbon Charter with corporate tenants in Victoria working towards promoting a low carbon zone To continue to deliver walking tours for visitors and employees, the aim of the walks is to generate footfall for the retailers and to enable the workforce to relate to their wider setting To assist and promote more cycling into and out of Victoria through clearer cycle routes and promotion of cycle safety Victoria Partnership Limited
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Visitor Destination
Total Spend pa £285,000
Victoria is a major gateway for visitors and tourists passing through to visit some of the country’s most iconic sites. Victoria is also home to an abundant mix of hotels located around the SW1 area. The BID will develop a strategy that builds upon the strong cultural offer in the area, but looks to address issues raised within the perception analysis to encourage increased footfall and visitors into the area. We will also endeavour to deliver the following: Introduction of Ambassadors for Victoria. With visitors and business visitors finding Victoria difficult to navigate around, it is proposed to develop a small team of street guides/ ambassadors for Victoria Develop a cultural programme of activity that focuses on street entertainment/food and music festivals Six week summer festival and three seasonal BID Proposal 2009
events themed throughout the year, emphasis will be to involve all businesses in the activity to enhance footfall and raise the profile of the area To participate in the New Year’s Day Parade drawing in over 500,000 people to the local area. The parade begins in Parliament Square and provides a fantastic opportunity for Victoria to encourage footfall and “dwell” time in the area Westminster will be a major provider for the 2012 Olympic and Paralympics Games as both a host and base for the International Olympic Committee. This provides the opportunity for Victoria to position itself as a major destination for accommodation, transport links, iconic sites and array of retail and leisure facilities. Working in partnership with Westminster City Council, the Olympic Delivery Authority and Visit London to ensure Victoria is recognised as a key location.
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Photo © Martin Stewart
“This BID represents a wonderful opportunity for the Victoria area to enhance its image and facilities. For too long we have been a thoroughfare lost in peoples minds as they travel onwards to their destination. It is a wonderful neighbourhood and it deserves more. Through the work that this extra revenue will allow us to undertake, Victoria will once again become a destination in her own right.” David Morgan-Hewitt, General Manager of The Goring hotel
Victoria Partnership Limited
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Showcase Victoria
Total Spend pa £225,000
Victoria has a rich cultural offer and some of London’s best hidden gems. We want Victoria to become a destination of choice, providing a sense of place and ownership by those who work, live and visit the area. To achieve this we propose to embark on a comprehensive marketing and promotional campaign that will encourage employees and visitors alike to take advantage of the area they work in and visit. We plan to increase the footfall into the area, including the residential population, taking full advantage of the growing retail offer. The Victoria BID proposes: To develop a 5 year marketing and promotional campaign to position Victoria as a principle destination in Central London. A framework that delivers a range of activity from 1st April 2010 that can be measured against a range of tangible outputs To organise 4 seasonal events that focus BID Proposal 2009
around markets and Pop-Up shops and galleries injecting a buzz and vibrancy into the area and providing initiatives that have a tendency to pop up unannounced, quickly draw in the crowds, and then disappear or morph into something else Further development of the Victoria Website complemented with the production of a quarterly magazine keeping people informed and updated on events, activities and the offer in Victoria Guides, maps and directories available both in hard copy or electronically to engage and encourage navigation around Victoria To work with media to promote business and the local area to a wider national and international audience To develop a strong brand that can be adopted by all businesses when marketing their business in Victoria.
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Prosperous Economy
Total Spend pa £150,000
We know that the next few years will be a challenge for all businesses. Therefore we need to be forward thinking and seize the opportunity to take more innovative steps and approaches to ensuring Victoria thrives and prospers over the coming years. Victoria is a gateway to London – London Starts here. Therefore we have the gift to ensure that we develop an area that creates a positive “first” impression. From inward investment through to increased footfall and spend we will work hard to develop a strong mix of assets to maximise Victoria’s potential. The Victoria BID will: Continue to develop the Small Business Network, providing a platform for small business to work as a collective and to feel involved and very much included within the local area
With the number of planned developments over the next decade and end user employment possibilities, it is a great opportunity to encourage local employment and promote additional spend in the area from the construction workforce and end user workforce Build in key performance indicators monitor and measure business/footfall to compare how Victoria is moving forward as a Business Improvement District (For more information on KPI www.victoria-partnership.co.uk) To provide a collective voice for business on issues surrounding business rates and more effective and efficient delivery of public services To work in conjunction with the theme of safe and secure to tackle economic crime To develop a social agenda working with corporate tenants. Victoria Partnership Limited
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Capital Fund A Capital Fund will be established to enable new projects to come on stream over the lifetime of the BID. As recommended by other established BIDs a 5% contingency will be maintained within the budget. This will be reviewed on an annual basis to prevent any large surplus being generated throughout the lifetime of the BID. Any additional funding will be allocated to the Capital Fund.
BID Proposal 2009
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The BID budget The BID budget sets out the share of income and resources across each of the BID themes. Management and overhead costs will be funded as far as possible from voluntary contributions. The BID budget sets out the share of income and resources across each of the BID themes. Management and overhead costs will be funded as far as possible from voluntary contributions. A BID levy collection rate is assumed to be 95%. The BID levy collection fees and BID running costs (such as legal and accountancy services) are also shown in the budget. A capital budget will be allocated to ring fence a small allocation of funding for projects that will be determined throughout the lifetime of the BID.
Once the BID is fully operational, changes to budget priorities will be made by the BID Board, or an Extraordinary General Meeting, to which all Businesses will be invited.
Victoria Partnership Limited
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Victoria BID Budget 1st April 2010- March 2015
INCOME
Levy Income Voluntary Contributions
10/11
11/12
12/13
13/14
14/15
TOTAL
% OF TOTAL
£
£
£
£
£
£
%
1,433,164 1,468,993
6,995,306
88.63
1,330,835
1,364,106 1,398,209
170,679
174,946
179,320
183,803
188,398
897,145
11.37
1,501,514
1,539,052
1,577,528
1,616,966
1,657,391
7,892,451
100
10/11
11/12
12/13
13/14
14/15
TOTAL
% OF TOTAL
£
£
£
£
£
£
%
Safe & Secure
300,000
307,500
315,187
323,067
331,144
1,576,898
20
Destination Victoria
285,288
292,420
299,730
307,224
314,904
1,499,566
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Clean & Green
200,000
205,000
210,125
215,378
220,762
1,051,265
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Showcase Victoria
225,227
230,858
236,629
242,545
248,609
1,183,868
15
Prosperous Economy 150,000
153,750
157,594
161,534
165,572
788,450
10
50,757
52,025
53,325
54,658
56,024
266,789
3
Staffing *
165,167
169,296
173,528
177,866
182,313
868,170
11
Overheads
50,000
51,251
52,533
53,846
55,194
262,824
3
Contingency
75,076
76,953
78,876
80,848
82,870
394,623
5
1,501,514
1,539,052
1,577,528
1,616,966
1,657,391
7,892,451
100
Total
EXPENDITURE
Capital Fund
Total
BID Proposal 2009
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Victoria BID Budget continued The Victoria BID levy will raise approximately £7.8 million (inclusive of landlord contributions) to be spent exclusively in the BID area over its 5 year life. A levy of 1% will be applied to the rateable value of each defined ratepayer in the BID area, of which there are approximately 271 hereditaments, raising approximately £1.5million per year (inclusive of landlord contributions). Cost to your business The approximate costs to business will be: Business
Rate able Value
Annual BID Levy
Weekly Charge Of BID Levy
Business A
£100,000
£1,000
£19.00
Business B
£750,000
£7,500
£144.00
Calculating the BID levy To calculate the proposed annual BID levy, simply multiply the business rateable value by 0.01. The BID levy rules are set out below but if you are unsure of whether your business is eligible or indeed if you don’t know your rateable value, please contact the BID team. Collecting the BID levy The BID levy will be due on 1st April each year and will be collected by the Westminster City Council on behalf of the BID Company. The levy income will be collected into a ring-fenced BID Revenue Account and these funds will be regularly transferred to the BID Company.
Voluntary contributors The BID legislation does not currently provide a mechanism for a mandatory contribution from landowners for new BIDs coming on stream. Therefore, the BID executive will actively seek voluntary contributions from landowners. The BID team has been successful in obtaining additional funding from property owners and will actively seek further voluntary contributions from other organizations and businesses outside the BID area who are interested in the BID.
Victoria Partnership Limited
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Expenditure
The BID levy raised is split across the following sectors:
% BID levy payable by industry sector as proportion of the BID levy raised
24% 10%
Public administration and defence, social security
1%
Health and Social Work
12% 1% 1%
Financial Intermediation
11%
Wholesale and Retail Trade including repairs
4%
Transport, storage and distribution
36%
Real estate, renting and business activities
Hotels and Restaurants
Education Construction
The Victoria BID Board will have the responsibility for agreeing and managing the budget. For the first year, the Board could decide to vary the budget by up to 10% for each area of expenditure. For subsequent years, the Board will set the budget on an annual basis. Those eligible to vote is split across the following sectors as outlined below: Business in BID area by Standard Industrial Code (SIC) Real estate, renting and business activities
36%
Public administration and defence, social security
8% 2% 3% 1% 2% 22%
Education Health and Social Work Electricity, Gas and Water Supply Construction Wholesale and Retail Trade including repairs Hotels and Restaurants Transport, storage and distribution Financial Intermediation
BID Proposal 2009
12% 4% 10%
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The BID board The board will comprise of members of the local business community. Although the Victoria Partnership is currently a Not For Profit Company limited by guarantee, it is anticipated, once the outcome of the ballot is notified a new BID company will be registered. It is proposed that the Victoria Partnership acts as the shadow board with a transitional phasing of the BID company and board, all to be in place and fully operational by 1st April 2010. The BID board will be made up of representatives from across all sectors within the BID area to ensure balanced representation around the table. Between 10 and 12 directors will be appointed to serve the board with the proposed constitution as follows: Multiple Retailers Large Hotelier Small independent retailer Corporate tenant Theatre representative Restaurateur/Bar Financial Services Public Sector Landlord/Property Owners Observers will be invited from the Local Authority and The Passage. The chairperson will be nominated by the board on an annual basis with services on the board from all directors, made on a voluntary basis. The board will be supported by a number
of theme groups to oversee the delivery of activity. The theme groups will be represented by the wider stakeholder community, chaired by a board member with an allocated budget for expenditure. It is proposed that both the BID board and theme groups meet on a quarterly basis . The BID will hold an Annual General Meeting to present and showcase the achievements of its activities. The BID finances will be independently audited and reviewed each year and this will be presented at the AGM. The executive team The board will initially be supported by an executive team made up of a Chief Executive, an Operations Manager and an Administrator. It is proposed that the executive team and associated costs are met through voluntary contributions received and not from the core levy generated.
Victoria Partnership Limited
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Legal agreements Legal agreements It is important that the activities of the BID represent added value over and above the public services already provided in the area. For this reason, a baseline agreement will be entered into with the Westminster City Council to clearly define the levels of service that can be expected from the Council and the BID. There will also be a formal operating agreement between the BID and Westminster City Council that will define all of the contractual arrangements for collection and enforcement of the BID levy. Copies of the baseline and
Victoria BID street names Buckingham Palace Road Allington Street Artillery Row Beeston Place Bressenden Place Buckingham Gate Bullied Way Catherine Place Eccleston Bridge Eccleston Street Elizabeth Bridge Elizabeth Street Gillingham Street
BID Proposal 2009
operating agreements will be made available via our website – www.victoria-partnership.co.uk Proposed BID boundary (see inside back cover) The rationale for the BID Boundary has been determined to ensure we include all major landholdings in Victoria with the inclusion of the station and Victoria Coach Station. On the inside back cover of this brochure there is a map of the defined BID area. Below is a comprehensive listing of all streets to be included within the BID boundary.
Grosvenor Gardens Grosvenor Gardens Mews South Hudsons Place Kingsgate Parade Lower Grosvenor Place Palace Street Semley Place Spenser Street Stag Place Terminus Place Vauxhall Bridge Road Victoria Square
Victoria Street Warwick Row Wilton Road Stafford Place Buckingham Place Wilfred Street Castle Lane Bridge Place Cardinal Place Cardinal Walk Cathedral Walk Phipps Mews Neathouse Place
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BID levy rules – who will pay the levy? The Victoria BID proposes a 1% levy charged to all businesses with a rateable value equal to or greater than £100,000. The quantum paid by the Landlord is negotiable, so it is estimated that we will generate an additional £170,000 per annum – providing £897,000 over the lifetime of the BID. The BID levy will assume a fixed growth rate of 2.5% per annum, applied year on the 1st April. The BID ballot and all costs related to the BID process will be met by the BID proposer – Victoria Partnership Ltd. The BID process is governed by Government Legislation and Regulations. As such, once a majority vote has been achieved; the BID levy becomes mandatory on all defined ratepayers. The rules for the BID levy are as follows: The BID levy will be based upon the Rateable Value in effect on 1st October 2009. If there is no rateable value in effect on this date, the BID rules will determine the rateable value that shall be used The levy will assume a growth rate for inflation of 2.5% applied on 1st April each year The term of the BID will be for a period of five years from 1st April 2010 The BID levy will be applied to all ratepayers with a rateable value equal to or greater than £100,000 All new hereditaments entering the rating list after 1st April 2010 will be levied at 1% All hereditaments with charitable status and in receipt of mandatory charitable relief from
business rates will be fully exempt from the BID levy All state run schools will be fully exempt from the BID levy The owners of empty hereditaments will be liable for the BID levy with no void period allowed There will be no VAT charged on the BID levy. The levy per hereditament will be capped at £40,000 per year. Retail units in dedicated shopping areas that operate in Victoria – Cardinal Place; Victoria Place Shopping Centre; Victoria Station, will pay a BID levy of 0.75%. The remaining 0.25% will be collected from the landlord as retail units already pay a service charge that includes security and cleansing. It is proposed that the BID’s management and overhead costs are met firstly through the voluntary contributions generated by the BID, minimizing as much as possible a commitment from the BID levy funds. How much investment will it create? As outlined above the Victoria BID will generate approx £7.8 million over the lifetime of the BID – five years. In addition, the BID board and executive team will endeavour to increase the budget through grants and other sources of income. Victoria Partnership Limited
London starts here Victoria Partnership Limited 8a Lower Belgrave Street London SW1W 0JP
www.victoria-partnership.co.uk