Agenda item

12.1

The Executive Director, Place submitted a report seeking approval for development of a Sheffield City Centre Business Improvement District (BID). The BID has been proposed by the private sector in an attempt to add to the economic growth and social well-being of Sheffield City Centre.

12.2

RESOLVED: That Cabinet:-

(a)

notes and approves the proposal of the existence of the City Centre BID scheme;

(b)

authorises the Council’s Returning Officer to run the ballot subject to the receipt of the materials required by the Business Improvement Districts (England) Regulations 2004 to the delegated officer;

(c)

notes that following a successful ballot the BID Champions Group will seek to set up a BID Company

(d)

should the ballot be successful delegates authority either to the Executive Director, Place (or an officer nominated by him) or the Cabinet Member for Business, Skills and Development to sit as the Sheffield City Council Board Member on the BID Board;

(e)

notes that the Executive Director, Place, in consultation with the Director of Finance and the Interim Director, Legal and Governance and Cabinet Member for Business, Skills and Development be authorised to:-

(i)

take such steps as (s)he feels appropriate to assist in the delivery of the development and implementation of the City Centre BID project;

(ii)

formally approve the BID Business Plan and associated documents, negotiate, agree and complete the Financial Operating Agreement and Memorandum of Understanding and the BID Levy Rules between Sheffield City Council and Sheffield City Centre BID Champions Group; and

(iii)

confirm the Baseline City Centre Management and Major Events services relevant to the BID for the 5 years of the BID term.

12.3

Reasons for Decision

12.3.1

The BID will bring new, private and public sector investment to the City Centre which will complement the existing offer. The BID is an opportunity for businesses based in Sheffield to invest in the future of the City Centre and be responsible for the allocation of these funds.

12.3.2

Given the City’s long desired aim to improve the City Centre officers feel the BID is a key ‘strategic component’ which will help this aim come to fruition. A BID would provide a very real opportunity which many other towns and cities across the UK are already grasping. The time is right for Sheffield to adopt this model and give the business community a voice and the power to help change the City Centre for the better.

12.3.3

The ambitions for the City Centre fall across a number of the City’s stated strategic objectives, those being a ‘strong and competitive economy’ and a ‘vibrant City’ together with other opportunities to support other outcomes ‘a great place to live’ and ‘safe and secure communities’. A BID would complement and support these ambitions.

12.3.4

A BID can provide a tangible and workable strategic relationship in an open and transparent way with the business community and will help to identify key themes and projects we can work on together, both for them as a business community and for the wider Sheffield population, to come and enjoy the ever improving offer available in the City Centre at this time.

12.3.5

A BID will be organised by the business community, creating not only a strong voice but the economic capacity to enact practical change.

12.4

Alternatives Considered and Rejected

12.4.1

Do nothing. The billing authority may only veto a BID on the grounds stipulated in the legislation, therefore if a BID proposer approaches the billing authority with a proposal the authority is obliged to engage to some extent with the concept. Sheffield City Council could decide not to engage beyond the narrow level of involvement dictated in the legislation and regulations. Refusing or failing to engage would be a missed opportunity to work together with the business community to build a successful future for the City Centre.

12.4.2

Create a voluntary contribution scheme. The City Centre Retailers group have discussed a voluntary contribution scheme; however the variation in management and organisation between companies made such a concept very difficult for some businesses to engage in as permission by central management may be refused. In contrast the majority of major companies and chains are accustomed to participating in BIDs. A BID would have a financially secure five year operational life, would be accountable to all eligible businesses and would be led by the business community which a voluntary scheme may not be.

12.4.3

Sheffield City Council to provide additional funds on top of the current service level. Given the current budget position the City Council could not invest a further £800,000 in the City Centre without causing serious budget reductions in other key Council services.

12.5

Any Interest Declared or Dispensation Granted

None

12.6

Reason for Exemption if Public/Press Excluded During Consideration

None

12.7

Respective Director Responsible for Implementation

Simon Green, Executive Director, Place

12.8

Relevant Scrutiny and Policy Development Committee If Decision Called In

Economic and Environmental Wellbeing

12.1

The Executive Director, Place submitted a report seeking approval for development of a Sheffield City Centre Business Improvement District (BID). The BID has been proposed by the private sector in an attempt to add to the economic growth and social well-being of Sheffield City Centre.

12.2

RESOLVED: That Cabinet:-

(a)

notes and approves the proposal of the existence of the City Centre BID scheme;

(b)

authorises the Council’s Returning Officer to run the ballot subject to the receipt of the materials required by the Business Improvement Districts (England) Regulations 2004 to the delegated officer;

(c)

notes that following a successful ballot the BID Champions Group will seek to set up a BID Company

(d)

should the ballot be successful delegates authority either to the Executive Director, Place (or an officer nominated by him) or the Cabinet Member for Business, Skills and Development to sit as the Sheffield City Council Board Member on the BID Board;

(e)

notes that the Executive Director, Place, in consultation with the Director of Finance and the Interim Director, Legal and Governance and Cabinet Member for Business, Skills and Development be authorised to:-

(i)

take such steps as (s)he feels appropriate to assist in the delivery of the development and implementation of the City Centre BID project;

(ii)

formally approve the BID Business Plan and associated documents, negotiate, agree and complete the Financial Operating Agreement and Memorandum of Understanding and the BID Levy Rules between Sheffield City Council and Sheffield City Centre BID Champions Group; and

(iii)

confirm the Baseline City Centre Management and Major Events services relevant to the BID for the 5 years of the BID term.

12.3

Reasons for Decision

12.3.1

The BID will bring new, private and public sector investment to the City Centre which will complement the existing offer. The BID is an opportunity for businesses based in Sheffield to invest in the future of the City Centre and be responsible for the allocation of these funds.

12.3.2

Given the City’s long desired aim to improve the City Centre officers feel the BID is a key ‘strategic component’ which will help this aim come to fruition. A BID would provide a very real opportunity which many other towns and cities across the UK are already grasping. The time is right for Sheffield to adopt this model and give the business community a voice and the power to help change the City Centre for the better.

12.3.3

The ambitions for the City Centre fall across a number of the City’s stated strategic objectives, those being a ‘strong and competitive economy’ and a ‘vibrant City’ together with other opportunities to support other outcomes ‘a great place to live’ and ‘safe and secure communities’. A BID would complement and support these ambitions.

12.3.4

A BID can provide a tangible and workable strategic relationship in an open and transparent way with the business community and will help to identify key themes and projects we can work on together, both for them as a business community and for the wider Sheffield population, to come and enjoy the ever improving offer available in the City Centre at this time.

12.3.5

A BID will be organised by the business community, creating not only a strong voice but the economic capacity to enact practical change.

12.4

Alternatives Considered and Rejected

12.4.1

Do nothing. The billing authority may only veto a BID on the grounds stipulated in the legislation, therefore if a BID proposer approaches the billing authority with a proposal the authority is obliged to engage to some extent with the concept. Sheffield City Council could decide not to engage beyond the narrow level of involvement dictated in the legislation and regulations. Refusing or failing to engage would be a missed opportunity to work together with the business community to build a successful future for the City Centre.

12.4.2

Create a voluntary contribution scheme. The City Centre Retailers group have discussed a voluntary contribution scheme; however the variation in management and organisation between companies made such a concept very difficult for some businesses to engage in as permission by central management may be refused. In contrast the majority of major companies and chains are accustomed to participating in BIDs. A BID would have a financially secure five year operational life, would be accountable to all eligible businesses and would be led by the business community which a voluntary scheme may not be.

12.4.3

Sheffield City Council to provide additional funds on top of the current service level. Given the current budget position the City Council could not invest a further £800,000 in the City Centre without causing serious budget reductions in other key Council services.