County to vote for business improvement scheme

* Llangollen county councillor Graham Timms, left, speaks on the BID at the cabinet meeting.  

The county council is to vote for Llangollen’s planned Business Improvement District (BID) on behalf of the properties it owns within the area the scheme covers.

On March 19th 200 local businesses will be balloted on whether they wish to be part of the BID which aims to raise cash to pay for projects aimed boosting their trading potential.

If the vote goes in favour of the scheme each business will be asked to pay a levy to help raise £88,000 a year, or a total of £440,000 over the five years it will last.

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

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, according to a report on the BID which went before the county’s cabinet at its meeting yesterday (Tuesday).

Members were asked to consider voting “yes” to the scheme on behalf of the properties it owns in the BID area and to approve the payment of the levy contribution on each of them.

Officers have said there are 10 county-owned properties involved.

Introducing the report to cabinet its chair, Cllr Hugh Evans, said there had been “an awful lot of consultation and engagement” on the BID proposal in Llangollen.

And he made the point that what it could achieve for businesses was “over and above” what the county council could provide for them.

He added: “This is clearly about the business community investing it what they consider are the priorities they hope will move their businesses forward.

“Llangollen has always been an ambitious and busy town and if the BID does take off it will help to deal with some of the pressures from a business perspective.”

Cabinet member Cllr Tony Thomas said he had heard Llangollen businesses had been very supportive of the BID, the benefits of which he described as “excellent”.

Llangollen county councillor Graham Timms, who was allowed to speak on the matter as local member although he doesn’t sit on the cabinet, said he and fellow local member Melvyn Mile were “very keen supporters” of the BID.

He added: “I don’t have a business in the area so I shan’t be voting or anything but certainly it is something we think is very exciting.

“I have to declare an interest as chairman of the Llangollen 2020 Committee and some of the things they might be supporting are some of the things that are involved in that [the BID].”

Cabinet members went on to give the go-ahead for the council to vote in favour of the BID on behalf of its properties in the area and to pay the appropriate levy if the March 19 vote goes in its favour.    

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 report says: “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.

If the vote goes in its favour the BID will commence this summer and its initial term will run for five 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 daily basis.

The council report adds: “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.”