A Business Improvement District (BID) is a defined area, usually in a town or city centre, in which businesses get together to form a non-for-profit company.
A Business Improvement District (BID) is a defined area, usually in a town or city centre, in which businesses get together to form a non-for-profit company that works on their behalf. All commercial rate payers in the area pay a levy to the BID company to fund projects which will benefit businesses in that area.
A BID is run for and by the traders who set it up, so it will deliver the projects that the members want. This can include practical stuff like street cleansing, graffiti removal, organising events or marketing campaigns. Or it could include liaising with public sector bodies like the Council, PSNI and DfI to ensure that key issues are addressed. It may be able to raise additional funding for projects in the area. The BID should have clear aims, which may include increasing footfall and revenue, and reducing costs.
The levy is usually 1.5 – 2% of the rateable value of the business property. Over half of eligible businesses will pay less than £200 per year, with some paying more depending on the size and value of their premises. There is usually a lower threshold below which micro businesses don’t have to pay anything.
The BID must go to a vote by traders within the defined area before it can be officially established. Once the BID is established then all traders within the area must be part of it. There has to be another vote at least every five years, so members can end the BID if they don’t think it’s working.
The process can take up to two years and includes consulting with all stakeholders, developing a business case, organising a ballot, and then, if the BID is approved, appointing staff to run it.
Each BID will be different, but there are already eight BIDS in Northern Ireland, including three in Belfast, and 340 throughout the UK, so it is a tried and tested format for improving business districts.
No. The BID is a business-led, independent, not-for-profit company. All projects have to be in addition to those provided by the Local Authority. The BID will be governed by a board of Directors that represent the business sectors within the BID area.
Business rates are a property tax collected by the Local Authority and then distributed at a national level. The Local Authority spends the allocated funding on services that are both statutory and discretionary and you have no control over these spending decisions. All the monies raised from the BID are spent in the city.
To get in touch please email info@bangorbid.com