Council report gives details of Llangollen BID

The vote on whether Llangollen goes ahead with a Business Improvement District (BID) has been proposed for mid-March.

If eligible businesses decide to back the move it will start this summer and estimates are that it will raise £88,000 a year to boost town centre traders with a range of beneficial projects and a total of £440,000 over its five-year run.    

Details of the scheme are given in a report to be considered by the county council’s cabinet tomorrow (Tuesday).

It is proposed that all eligible businesses will pay a banded levy towards running the BID scheme if it is approved.

Smaller businesses with a rateable value of less than £2,500 and businesses that fall into the industrial, manufacturing, storage, and workshop sectors will be exempt from paying the levy as will the two schools, says the council report.

Members of the cabinet are specifically being asked if the council should vote “yes” to the BID on behalf of its own properties in Llangollen as it would be liable for the payment of the levy contribution on each of them.

The maximum possible levy cost to the council would be £9,980 a year and as schools are excluded then the cost would be £6,230 a year.

The council’s own well-being impact assessment says the BID proposal “contributes positively to the well-being of future generations, working with partner organisations and the business community to maximise positive effects and minimising negative effects where possible”.

The report to the cabinet says BIDs are a well-established model and over 300 have been established across the UK with the majority in town centres.

It adds: “A Business Improvement District gives local business the power to get together, decide what improvements they want to make within a geographically defined area and to raise funds to deliver these.

“For the BID to be established, two conditions must be met. Firstly, a majority of those voting have to vote ‘yes’ and secondly those who vote ‘yes’ have to represent more than 50% of the total rateable value of all votes cast.

“If both majorities are met then the BID can be established and all businesses within the defined boundary are liable to pay the levy irrespective of whether they voted “yes” or “no” at ballot.

“If established, a BID runs for a maximum of five years. Beyond that if the BID wishes to continue then a new proposal must be developed and another ballot held.”

The report goes on: “In June 2018 the council’s Economic & Business Development (EBD) Team were invited by a group of businesses in Llangollen to discuss the idea of a BID and the potential for a Welsh Government grant for BID exploration.

“A grant application was lodged and was successful in securing grant aid.”

Consultants Mosaic Partnership were appointed to work with business in Llangollen to undertake a study into the feasibility of establishing a BID and to develop a proposal to take to ballot.

A task group to oversee the project was formed and, according to the report, has since been undertaking consultation with businesses, market research and project planning to develop the BID Business Plan. This has involved face to face discussions, an online survey, presentations and consultation in the town centre.

The report says: “It is proposed that the BID ballot date  - the final day of the ballot - will be 19th March 2020. In advance of the ballot a final Business Plan will be sent to all eligible voters within the BID area as well as the Local Authority.

“It is the intention that, subject to a ‘yes’ vote at ballot, that the BID will commence in Summer 2020 and that its first term will run for 5 years.

“An incorporated Company Limited by Guarantee will be established to deliver the Business Plan/Proposals. It will be responsible for the delivery of the BID services and it will employ staff as appropriate to implement the BID Board’s programme on a day to day basis.”

Based on the proposed banded levy the estimated revenue for the Llangollen BID is £88,000 annually which is £440,000 over 5 years.

The council report poses the question of what risks there are to the BID process and if there is anything the council can do to reduce them.

It answers itself by saying: “Businesses could vote against the BID. To minimise this risk the Task Group are developing a robust business plan that has had engagement from businesses and demonstrates value for money to all potential levy payers.”