Guidance

Guidance for the BID Proposal

Each BID Business Plan and Proposal should be explicit and transparent about the following aspects:

(a) About the BID

Business Case – The need for the BID should be clearly demonstrated through robust research and consultation at both Head Office and local level (see also ‘Criteria – Essentials’, above). The sample sizes and responses from each element should be detailed.

BID Aims and Objectives – The overall aims and objectives for the BID, and the resultant impact on businesses.

Themes – The main objectives of the BID (short and long term) and details of the projects that will achieve these objectives.

Number and Type of Hereditaments – The number of levy paying businesses and a description of the BID area (including a map) is required. A realistic and manageable BID in any town or city centre is likely to include, say, between 300 and 700 businesses, although this will depend on each location.

Term – The term of years for the proposed BID, with a clear start and end date.

Support – The extent of confirmed public and/or private sector support should be detailed.

(b) Cost of the BID

Levy Rate – The method of calculation for the levy, and the valuation date and rating list being used (if applicable).

Inflation – The rate of inflation (if any) applied to the levy in each year of the BID.

Income – Sources of income in addition to the levy should be detailed, together with clarification of whether each is committed and guaranteed.

Discounts – Whether any occupiers would receive a discount on the levy, particularly occupants of shopping/leisure/office centres where services already provided through service charge arrangements may apply. Discounts for charitable organisations should be referred to.

Operating Agreement – Confirmation that an Operating Agreement with the Local Authority will have been entered into prior to the start of the BID. Access to this should be provided, if required.

Untenanted Properties – What levy should apply on untenanted properties and from whom it is collected.

Management Costs – The centralised operational costs of running the BID should be shown separately within the budget.

Contingencies – Details of margins for bad debts and for overexpenditure on projects. The total amount of levy to be billed should be detailed if it differs from the budgeted amount to be collected, to reveal a target collection rate.

Refunds Policy – The circumstances in which a refund on the BID levy would apply (if any).

Baseline Agreements – Confirmation that agreements have been entered into with current service providers to ensure that BID services are additional to existing provisions and that such additional provisions will be preserved. Access to these should be provided during and after the ballot, if required.

Budget – The budget for the full term of the BID setting out each anticipated strand of income and expenditure, the contribution in each year, a cashflow forecast and the resultant surplus at the end of the term. This should include the anticipated costs of any renewal ballot and/or the termination costs of the BID.

Collection Charges – Any costs associated with the collection of the levy.

Threshold – Any minimum threshold (if any) beneath which a levy would not apply.

(c) Management of the BID

Company Structure – The BID should be operated through a not for profit company which has the capability of being partially/wholly exempt from Corporation Tax.

Governance Arrangements – The arrangements pertaining to formal membership of the BID, election to the Board (or other), election of the Chair, and Annual reporting mechanisms.

Ballot Dates – The exact dates of the ballot period and the date and time of the close of ballot.

Performance Management – The methods to be used to assess the effectiveness of the BID and the return on investment for levy payers. All projects should have clear, timed and measurable targets.

Variation Policy – Any formal variation policy should be established, together with any requirements for an alteration ballot (if applicable)

(d) Renewing BIDs

BID Performance – Clear reference to the previous Business Plan and/or Proposal should be provided, together with evidence of delivery against the planned services and the extent of the benefits to the BID area and to those businesses within it.

Additional Funding – There will be greater expectation of additional funding streams being provided from renewal.

Impact – The impact of the BID is an additional consideration at the renewal stage and should be included in any Renewal Proposal.

Changes – A clear outline of any differences between existing and proposed services should be given.