The means: to change places for the better.

Transcription

1 The means: to change places for the better. A BUSINESS IMPROVEMENT DISTRICT FOR NEWPORT? FEASIBILITY STUDY REPORT Date: 25/5/2014 Prepared by: Peter Williams, Tom Evans and Becky Chantry

2 Executive summary Introduction & methodology The project brief Methodology Results of the business interviews Business Health Top issues for businesses in Newport city centre Vacant premises Perception of crime Levels of marketing and promotion Cleanliness Improvements to the city centre Parking Anti-social behaviour Increase promotional activity Improvments to shop fronts Issues in the Kingsway Centre vs. the rest of Newport city centre Reactions to concept of a BID for Newport BID concept support Targeting spending What should the focus of a BID in Newport City Centre be? Potential BID levy outturn The UK Average BID & Newport Potential levy income Levy rates by BID area Top ten hereditaments and potential levy payers Feasiblity matrix Conclusions and recommendations for phase two Suggested themes for BID programme Recommendations and next steps... 36

3 EXECUTIVE SUMMARY In November 2013 The means was commissioned by Newport Unlimited and the Chamber of Trade to conduct a feasibility study to explore the potential of developing a Business Improvement District (BID) in Newport City Centre. This was preceded by an initial scoping study, which was conducted between May and July In total, one hundred and four businesses were interviewed across the centre, including those based on Commercial Street, Bridge Street, Cambrian Road, Charles Street, High Street, John Frost Square, the Kingsway Centre, Stow Hill, Upper Dock Street, Llanarth Street, Docks Way and Newport Market. These surveys aimed to test business reactions to the concept of a BID and capture issues in the city centre and the best ways to tackle them. In addition to business interviews, a Symposium event was held as part of the scoping study at which businesses discussed in themed groups the potential BID and its priorities. Overall, the survey results demonstrated that business health in the city centre was varied. For example, a similar number of businesses reported that their turnover had declined over the past 12months as reported that their businesses had improved. The results also highlighted the following key points: A significant number of businesses identified vacant premises, perception of crime, parking (cost and availability) and marketing of the centre as being the most important issues. Results were broken down between the primary retail area and other areas of the city centre but there was generally consensus on the top issues. In terms of measures for improving the area, the majority of businesses identified providing easier and cheaper parking, reducing anti-social behaviour and increasing promotional activity as key areas for action. When asked directly about their views about the BID concept in principle, 74% of respondents were positive and 23% unsure. Only 8% were negative. Based on the above evidence, this report therefore concludes that Newport City Centre should move toward a BID ballot either at the end of 2014 or early in The report recommends that the BID programme be based on four themes: Accessibility & Attractiveness Safety & Welcome Marketing & Events Future Newport: City Centre Strategy & Advocacy

4 It is recommended that the proposed BID s programme of improvements complement the services and projects of renewport, The Newport Business Development Task Force, the local authority and local cultural, civic and community groups. Areas of collaboration could include cultural activities, digital high street projects and health/sporting initiatives.

5 1.0 INTRODUCTION & METHODOLOGY 1.1 The project brief The means was initially commissioned by Newport Unlimited, with Newport Chamber of Trade, to complete a scoping study in May This was followed by a further commission, in November 2013, to carry out a feasibility study into the development of a BID in Newport City Centre. The appointment followed the initiation of an exploration into the opportunities presented by the BID mechanism by a core of local businesses in late Two public meetings were held in 2013 and a Steering Group was then formed to lead further investigations, engage with other traders and review business sentiments. This study represents a significant step in the work to explore the option of a BID in Newport City Centre, and to ascertain whether a BID would be an effective mechanism to address current issues and seize new opportunities. 1.2 Methodology The feasibility study focused on gathering opinions on issues that were important to businesses in Newport City Centre and views on measures to improve trading conditions. The study also aimed to raise awareness and gauge levels of support among businesses for a Business Improvement District Business consultation: scoping & feasibility The business consultation was conducted in both feasibility and scoping phases where interviews took place on a face-to face basis at individual business premises. Where possible the most senior member of staff was interviewed, which in most cases was the store manager/ owner or a company director. During the interview, whilst being asked general questions to determine business issues and trends, the concept of a BID was introduced. A full list of the businesses consulted as well as a copy of the questionnaire used can be found in the appendices. The result of the business interviews can be found in Section Symposium The symposium event, organised as part of the scoping exercise, helped to inform this study. The event was hosted on the evening of the 27 th June 2013 at Breeze Bar, Cambrian Road Newport. The event provided an opportunity to pool thinking around what the main issues for businesses in Newport City Centre were, what was currently being done, what else could be done to improve the viability & vitality of the centre and what role a BID might play. Following a lively and constructive group discussion session, a member from each group provided feedback to all attendees to highlight key areas they had identified. From this event the following key issues and common themes emerged:

6 Tackle negativity about Newport & promote its individuality Strategy & PR campaign Address the issue of empty shops attract new businesses & introduce meanwhile projects Utilize the creative sector & develop distinctive cultural events Improve parking locations & introduce parking promotions Tackle anti-social behaviour & improve co-ordination of initiatives/services Further details regarding the event, along with outcomes, can be found in the appendices.

7 2.0 RESULTS OF THE BUSINESS INTERVIEWS The means conducted a total of 104 interviews over a six month period, which aimed to gather a cross section of businesses views. The interviews were designed to ascertain; 1) The nature of the business and its current health 2) The individual s view of the key issues facing Newport City Centre and possible measures to improve trading conditions 3) Reaction to the idea in principle of a Business Improvement District. It was relatively easy to meet and have a face-to-face discussion with the businesses across Newport City Centre. Senior decision maker (managers or owners) were generally in attendance or readily at hand, and happy to take the time away from their duties to complete the survey. With chain or franchise retailers the situation was similar. However some managers found it difficult to engage fully because they felt they weren t empowered to do so. Office-based businesses and top levy payers required a meeting to be set up in advance but were also relatively easy to engage. Within the sample, 60% of businesses were franchises whilst 40% were classed as independent. Q1. Business type: Independent or part of a wider group? Graph 1: Breakdown of businesses by sector

8 Business interviews covered a broad spread of sectors, shown as follows: Q2. Nature/type of business Food/Grocer 1% 0% 4% 3% 2% 13% 8% 5% 5% 4% 17% 11% 6% Small Household goods Large Household goods Restaurant Fashion/retail Professional Other Service 21% Pub Community Facilities Motor related Leisure Newsagent Graph 2: Breakdown of businesses by type These were grouped into four basic sectors to help simplify comparisons. Retail: Non Food Retail, Food (butchers etc.), convenience stores, Fashion Retail and Newsagents. Hospitality: Restaurants, hotels, bars, cafes and pubs. Services: Community Facilities, Motor Trade, Leisure, Other Services and Professional Services (estate agents, banks etc.). Other in Newport includes charities, housing associations and libraries.

9 Business sector 12% 6% 23% 59% Retail Services Hospitality Other Graph 3: Breakdown of businesses by group types 2.1 Business Health A number of questions were asked to determine business health. These included whether turnover had grown, declined or remained stable, what plans the business had for the next 12 months and whether there were plans to recruit anymore personnel. Q3. How is your business performing? 39% 26% 35% Improved Remained the same Declined Graph 4: Business performance in 2012/13 This pie chart shows that different businesses have had a variety of experiences in terms of trading conditions. When asked to comment further, many businesses said that footfall has decreased since stores had vacated the centre and many attributed the decline to online shopping and competition from out of town shopping destinations, such as Spytty Park, and Cwmbran.

10 Q4. What are your plans for the next 12 months? 3% 17% 80% Expand Stay the same Leave the centre Graph 5: Business optimism The majority of businesses identified that within the next 12 months they thought that the businesses would remain the same. A small number, 17%, identify the potential for expansion, but very few businesses planned to leave the centre. Q5.Do you have any plans to recruit any more personnel? 9% 26% 65% Yes No Maybe Graph 6: Recruitment plans With regards to recruitment, the majority of businesses were not planning to hire more staff at the time interviews took place. Nevertheless, around a quarter of those interviewed said that they were planning to recruit, indicating a positive outlook amongst a section of the business community.

11 2.2 Top issues for businesses in Newport city centre Businesses were presented with a list of issues and asked whether they believed them to be a significant issue, minor issue or not a problem. Q6.How much of an issue is the following? 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Big issue Small Issue Not an issue Graph 7: Issues in Newport City Centre Vacant premises The biggest issue for Newport City Centre appears to be vacant premises. 90% of respondents described this as a significant issue, whilst a mere 3% identified this as not being an issue. This appears to be a significant problem for the city centre, which has higher vacancy rates than the national average. Many businesses represented in the sample expressed an urgency to fill the empty shops with startups and provide rates relief in order to help them do so. Charity stores appeared to be an unfavorable way of filling empty units Parking As with many urban centers across the UK, parking appeared to be a significant problem for traders, especially in terms of cost and location. Over 70% identified this as an issue, with 60% highlighting it as a big issue. In their comments respondents referred to Cwmbran and Spytty Park s free parking.

12 2.2.3 Perception of crime Over 80% identified perception of crime to be an issue, with 58% saying that is a big issue. Many respondents described anti-social behaviour as a significant problem Levels of marketing and promotion Marketing of the centre was also recognised as a big issue by many businesses interviewed. 48% of respondents highlighted this as a big issue, whilst a further 20% said this was a small issue. Many traders noted that the city centre needs to be promoted more effectively, similar to the ways in which Cwmbran and Cardiff s St David s Centre are marketed Cleanliness Across the city centre respondents provided different views on the cleanliness of streets and pubic spaces. Those businesses interviewed towards the north of the centre, around the market, and towards the lower end of Commercial Street identified cleanliness as a big issue. Chewing gum on the streets, grot spots and cleanliness towards the rear of shop units were identified as significant problems.

13 2.3 Improvements to the city centre Following on from the discussion around issues in the city centre, businesses were presented with a list of measures and asked whether they felt each would help improve the centre a lot, a little or not at all. Additional time was also allocated to discussing other issues that the business felt would enhance the trading environment. Q7. How much would the following improve the centre? A lot A little Not at all Graph 8: Measures to improve Newport City Centre

14 2.3.1 Parking Those interviewed felt that making improvements to the centre s parking provision, both in terms of ease and cost, would significantly improve trading conditions. This was noted by over 80% of respondents who felt that measures in this area would help a lot and a little. Many traders compared the cost of parking to other nearby retail areas, such as Cwmbran and Spytty, and noted that there was not a level playing field Anti-social behaviour Over 90% of businesses consulted thought that reducing anti-social behavior would either improve the center a lot or a little. The type of behavior identified appeared to range from street drinking and swearing to shoplifting and fighting Increase promotional activity Promotional activity, including events, was identified as an effective way to improve trading conditions and to celebrate what the area had to offer. A number of those interviewed felt that the city had developed a bad image and that there was a lot of work to be done to change perceptions. Many of those businesses interviewed noted that when events do occur in city centre they are not informed of them in advance Improvments to shop fronts 80% of respondents identified improvements to shop-fronts as a way to advance the city centre. Enhancing the look of empty units was highlighted as a solution to improving the appearance of the area and making it more appealing to visitors.

15 2.4 Issues in the Kingsway Centre vs. the rest of Newport city centre Since the Kingsway Centre has its own level of service, being within a managed shopping centre that provides services such as security and marketing, it is important to briefly look at whether business views here varied from those in other city centre areas. During discussions with business representatives based in the Kingsway Centre the following trends emerged: Issues- Ease of parking appeared to be less of an issue in the Kingsway Centre due its 2 hour free car parking offer. Security was identified as only a small issue, as they have security guards who regularly visit and engage well with businesses. Consequently perception of crime is also lower. Like the rest of Newport city centre, empty shops were identified as the most significant issue for businesses Signage appeared to be more significant problem for those based in the Kingsway Centre. Many respondents said that construction work outside the centre and the relocation of the bus station made the shopping centre difficult to find. Improvements- Filling empty premises and reducing rates were seen as key improvements. More businesses in the Kingsway Centre wanted to advance business networking than elsewhere in the city centre. It was felt that promoting the city centre as a whole would be beneficial as it would drive up footfall. Although there are differences in opinion amongst those businesses consulted in the Kingsway Centre compared to those outside, these are relatively minor and a general consensus exists between all businesses regarding increasing footfall and creating a thriving commercial district. Since the Kingsway Centre respondents felt that they already receive a degree of service, however, it could be suggested that they be charged a smaller levy than those in the rest of the city centre who do not pay such a service charge.

16 2.5 Reactions to concept of a BID for Newport The concept of a BID was tested in the survey, and the way a BID was described to the interviewees was as follows: There are four distinctive things about a BID: 1. A BID is set up by a democratic ballot of all businesses in the proposed BID area 2. If the ballot is successful, the businesses pay a levy usually based on the current rateable value of their property to create a pot of money which they get to spend as they see fit. 3. A BID management board will be set up and run by the BID 4. BID services have to be in addition to the services provided by the council. The BID s services cannot be used to subsidise council services BID concept support In principle, do you think BIDs are a good idea? Unsure 23% No 3% Yes 74% Graph 9: To what extent do businesses think BIDs are a good idea The results above are extremely positive, with over 74% of participants saying that in principle they believed that BIDs were a good idea. Unsurprisingly there were a number of respondents who stated that they were unsure about the concept and required further information. Frequently, when speaking to multiples, the respondent said they were unwilling or unsure of the answer as they felt that it would be a decision made at head office or regional level. On a positive note, only 3% stated that they were against the concept of a BID in principle.

17 2.5.2 Targeting spending After respondents began to understand the concept and the types of services a BID might deliver, they were asked to suggest priorities for such a body if one was formed in Newport City Centre. The budgets from Merthyr Tydfil and Swansea BIDs were used to show respondents what type of revenue different size centres in Wales can raise from a BID levy. The world cloud below shows the ideas suggested by respondents for targeting spending. The most popular suggestions were enticing new businesses, parking, events and promotions, reducing antisocial behavior and empty shops projects. What should the focus of a BID in Newport City Centre be? Image 1: Focus of a BID in Newport Word Cloud

18 3.0 Characteristics of Newport s central areas 3.1 Area description For the purposes of the feasibility study, the central areas of Newport were divided up into the following main areas: The Core City Centre, Docks Way, Goldtops, Commercial Road, Clarence Place and Corporation Road: The City Centre Core: this is the main commercial area stretching from the railway station in the North to George Street in the South and from the banks of the River Usk to Ivor Street and Stow Hill. The area contains a number of retail units, featuring national chains, independent businesses, professional services, cafes, bars and an indoor market. It is also home to a campus of the University of South Wales and the Council s Information Station. The area has suffered a well-publicised decline to the retail core in recent years and the loss of a number of key businesses, including a Marks & Spencer store. Docks Way: A new development area, which runs along the River Usk to the South East of the core city centre area. This is now home to The Passport Office, Magistrates Court and Newport City Homes. The area also contains two supermarkets, Lidl and Asda, as well as a couple of independent businesses. Goldtops: This area is north of the railway station and runs from Devon Place and Godfrey Road to Goldtops. Many offices are located in this area, together with the Council s Civic Centre and health care providers such as dentists. Commercial Road: A secondary shopping area which runs south of the core central area. It is home to a range of independent and ethnic businesses and forms the commercial centre of the Pill area. It also features a number of community facilities, bars and cafes, along with the central police station. Clarence Place & Corporation Road: located on the eastern banks of the River Usk, Clarence Place and Corporation Road is home to Rodney Parade, the stadium for the city s football and rugby teams, as well as a number of restaurants and pubs. The area is seeing a number of residential units being constructed along the waterfront.

19 3.2 Newport City Centre Options for the BID area

20 Central Area Zone 1 Central Area Total Rateable Value of all commercial property 21,905,565 Income from a Levy set at 1% 1.25% 1.50% 219, , , No of businesses = 896 If a 5,000 threshold was applied Total RV 21,167,950 1% 1.25% 1.50% 211, , ,519.3 No of businesses = 543

21 Corporation Road Zone 2 Corporation Road Total Rateable Value of all commercial property 2,220,145 Income from a Levy set at 1% 1.25% 1.50% 22, , , No of businesses = 142 If a 5,000 threshold was applied Total RV 2,074, Levy 1% 1.25% 1.50% 20, , , No of businesses = 75

22 Docks Way Zone 3 Docks Way Total Rateable Value of all commercial property 3,604,823 Income from a Levy set at 1% 1.25% 1.50% 36, , , No of businesses = 63 If a 5,000 threshold was applied Total RV 3,533,800 Levy 1% 1.25% 1.50% 35, , , No of businesses = 28

23 Gold Tops Zone 4 Gold Tops Total Rateable Value of all commercial property 2,423,415 Income from a Levy set at 1% 1.25% 1.50% 24, , , No of businesses = 109 If a 5,000 threshold was applied Total RV 2,340,500 Levy 1% 1.25% 1.50% 23, , , No of businesses = 72

24 Commercial Road (Pill) Zone 5 Commercial Road (Pill) Total Rateable Value of all commercial property 378,590 Income from a Levy set at 1% 1.25% 1.50% 3, , , No of businesses =102 If a 5,000 threshold was applied Total RV 201,350 Levy 1% 1.25% 1.50% 2, , , No of businesses = 22

25 4.0 Potential BID levy outturn 4.1 The UK Average BID & Newport According to the 2013 National BIDs Survey, produced by British BIDs, the outturn raised by the smallest annual levy income is 22,400 at London s New Addington BID. The largest annual levy income is 2,814,000 at London s New West End Company. The means maintains a model of the UK Average BID. At the 9 th April the model shows the following outcomes. This illustrates that the average BID levy in the UK is 1.4% and average levy outturn is 365,000: Image 2: The means UK Average BID model

26 It is proposed that Newport will follow the UK average with a levy rate between 1 and 1.5%. This will raise an annual total levy income slightly lower than the UK average which, dependent on the levy percent, will collect in the region of 250,000 per annum. 4.2 Potential levy income The tables below set out the potential levy income for Newport City Centre when different levy rates and rateable value thresholds are applied. In most BID areas some form of threshold is applied, partly to ensure that the costs of collecting the levy from smaller businesses does not exceed the levy they pay, but also to keep the number of BID businesses down to a level with which the BID board and team can reasonably communicate. The ratings threshold in Merthyr Tydfil, for example, was set at 5,000. Table 1: BID LEVY OUTTURN BY ZONE No threshold Zone Total levy at 1% Total levy at 1.25% Total levy at 1.5% Zone 1 Central Core 219, , , Zone 2 Corporation Road 22, , , Zone 3 Docks Way 36, , , Zone 4 Goldtops 24, , , Zone 5 Commercial Road 3, , , Total 305, , , Number of businesses: 1312

27 Table 2: Levy Outturns 5,000 threshold Zone Total levy at 1% Total levy at 1.25% Total levy at 1.5% Zone 1 Central Core 211, , ,519.3 Zone 2 Corporation Road 20, , , Zone 3 Docks Way 35, , , Zone 4 Goldtops 23, , , Zone 5 Commercial Road 2, , , Total 293, , , Number of businesses: Levy rates by BID area In addition to setting the levy rate and threshold, there are a number of other options to consider in setting up a BID most importantly the definition of the area which could be any combination of the zones identified above. The existence of a service charge is another consideration. The Kingsway Centre currently provides a number of services to its tenants paid for through their service charge that in other areas could be considered core BID activities. This is likely to be the same for the new Friars Walk development. One option would therefore be to reduce the levy rate by say10-20% for those businesses located in serviced shopping centres.. The table below sets out the potential levy outturn in the case of the six different options each with a 5,000 rateable value threshold: Option 1: All Zones Option 2: Zone 1 Option 3: Zones 1,2,3,4 Option 4: Zones 1&2 Option 5: Zones 1&3 Option 6: Zones 1&4

28 Option 7: Zones 1&5 Option 8; Zones 1, 2 & 3 Option 9: Zones 1, 2&4 It should be noted that in light of the new developments taking place in the city centre, notably Friars Walk and the Admiral offices, the BID would likely see an increase in funding from additional hereditaments in future years.

29 Table 3: BID LEVY OUTTURN BY OPTION HEREDITAMENTS ABOVE 5,000 RV THRESHOLD Option Total number of Total Levy outturn Total levy outturn at 1.25% Option 1: All Zones , , Option 2: Zone , , Option 3: Zones 1,2,3, , , Option 4: Zones 1& , , Option 5: Zones 1& , , Option 6: Zones 1& , , Option 7: Zones 1& , , Option 8; Zones 1,2 & , , Option 9: Zones 1,2& , , Recommended option = The British Retail Consortium has stated that any levy in excess of 1% of rateable value will be extremely unlikely to deliver comparable benefits and is therefore unjustified. However, the national average BID levy is 1.4%, and our experience in other centres shows that retailers will pay a slightly higher levy if they feel that it is justified by the proposed programme, and can either improve their sales or mitigate a decline in sales. In Merthyr Tydfil, for examples, the levy rate was set at 1.35%. Considering trading condition in Newport City Centre and the potential services that a BID might deliver, we would recommend a levy rate of 1.25% be considered by the BID board. We are not at this stage proposing that the levy should be capped for any of the larger payers. This position may change if, for example any large occupiers make capping a condition of their support for the BID.)

30 4.4 Top ten hereditaments and potential levy payers The top ten hereditaments across the 5 zones are as follows: Table 4: TOP TEN HEREDITAMENTS WITH BID LEVY Business ASDA STORES LTD NEWPORT CITY COUNCIL UNIVERSITY OF SOUTH WALES BURLINGTON CAP (old Marks & Spencer building) BRITISH HOME STORES LTD BOOTS THE CHEMISTS LTD COURT SERVICE AGENCY NEWPORT CITY HOMES HOUSING UK PASSPORT AGENCY WALES CASTLE LEISURE LTD

31 5.0 Feasiblity matrix In order to compare and contrast these five BID areas as objectively as possible, The means used its own feasibility matrix. The criteria for assessment can be defined as follows: Sustainability Is the revenue generated from the levy in proportion to (or in excess of) the revenue required to service the area in question? Viability Can the levy be set at a reasonable level and still generate adequate funds for the BID? At this point it has not been possible to estimate the cost of running a BID against, say, the square metreage of each area. In Newport City Centre, a further consideration is whether the area concerned includes development which is likely to come into use during the first BID term and therefore be an addition source of BID levy income. Marketability What is the likelihood of winning a BID referendum? The costs of marketing the BID and running the referendum need to be in reasonable proportion to the eventual levy outturn. There needs to be an adequate number of businesses which will directly benefit from the BID. There also needs to be some indication that some of the larger businesses, at least, are in favour. Do ability Can BID services complement (or join up with) existing services in such a way as to make a significant difference? Typical considerations: Is there a gateway area that can be improved? Are there streets which can be improved? Is there a landmark visitor attraction or major commercial estate which can be better serviced? Each of these criteria are scored out of 5 (5 being the highest) in the table below.

32 Option Sustainable Viable Marketable Doable Total Score Zone1 A good levy outturn and a Yes. The area has a good There is strong support New regeneration and 16 clearly defined area. Major new developments are taking place here and it is the focus of major economic revival efforts. 4 number and size of hereditaments to enable a rate of 1.25% to be achievable. 4 for the BID concept in this area and the core issues are clear and relevant to all businesses here. A concerted marketing effort would be needed to demonstrate benefits of the proposed BID, especially to those hereditaments with large RVs. 4 economic development efforts could be complemented by the BID programme. There are also a number of gateways which could be enhanced and a focus on changing perceptions and creating a more welcoming environment would deliver clear benefits. 4 Zone 2 Low Levy outturn. Small hereditaments and major service requirements would result in revenue being significantly stretched 2 A levy rate of 1.25% for all hereditaments over 5,000 RV would not generate adequate funds 2 A fragmented area with a range of, manly small, businesses. The exception is Rodney Parade, which could benefit from a range of BID services. The area as a whole, however, has limited marketability. There are number of residential developments taking place in the area and a major attraction in Rodney Parade, but little in terms of commercial development. 3 10

33 Option Sustainable Viable Marketable Doable Total Score 3 Zone 3 An adequate levy outturn. A A levy rate of 1.25% for all A range of businesses A potentially difficult area to 12 number of commercial and hereditaments over operate in the area, which service in terms of layout residential developments 5,000 RV would is fairly fragmented. and varying quality of sub have recently taken place generate acceptable Would need to show areas. in the area. funds for the area. benefits in terms of employees and the environment. 3 Zone 4 A lower levy outturn. Mostly Limited revenue, but Would need to A very different 10 small office occupiers and easier area to service demonstrate benefits to environment to the rest of the Council s civic centre. would make it a viable small office based the city centre and would 2 option. businesses.. require a distinct range of 3 3 services. 2 Zones 5 Low Levy outturn. Small Unlikely to be able to A significant area with a Relatively simple, linear 7 hereditaments and major support 1.25% rate unless large number of small area, to service. A focus for service requirements would this zone forms part of a businesses. regeneration efforts for the result in revenue being wider BID area. 2 past 15 years. significantly stretched

34 6.0 Conclusions and recommendations for phase two 6.1 Suggested themes for BID programme The results of the survey and ideas from businesses at the symposium event, as reported in Section 2, suggest that the BID programme could be formed of the following four theme areas: 1. Creating a more accessible & attractive city centre This theme would focus on improving access to the centre and creating a more attractive environment. It would include services such as: Working with the local authority to develop an effective parking strategy that would make access the city centre by car easier and more affordable Enhancing gateways, such as those at car parks, the bus station, train station and the lower end of Commercial Street. Providing a deep clean service to grot spots and at other key locations and attractions. 2. Making the city centre safer & more welcoming This theme would focus on a number of services to make the city centre experience more pleasant for those that work, live and visit there. It would include services such as: A uniformed street ranger scheme, to meet and greet, help prevent crime against property and anti-social behaviour and pick up on issues to fix in the public realm A taxi marshal service to create a better nighttime experience Creating a welcome pack for new businesses and those working in the city centre Strengthening pub-watch and shop-watch type activity Support and boost the Newport Business Against Crime Partnersgip 3. Marketing & Events This theme would focus on changing perceptions, building on the opportunities provided by new city centre developments and creating more reasons for people to visit the centre. Services could include: A programme of events that builds on existing activities, such as the food festival. A loyalty card to encourage those working and living locally to spend more in the city centre. A marketing campaign that focuses on Newport s distinctive assets and new developments with a view to changing perceptions. Actively marketing the centre to potential new businesses

35 4. Future Newport: Advocacy & Strategy There is an obvious issue in the city centre with regards to vacant units. New developments provide a great opportunity, but also bring with them the threat of creating further voids in traditional shopping areas, such as Commercial Street. During the survey, businesses also highlighted the need for better communication between the council and the business community. This theme would look at mechanisms to attract new businesses, support existing businesses and work with the local council to develop a vision for a sustainable and thriving trading environment. Initiatives under this theme could include: Developing a nighttime and evening economy strategy that builds on the research already carried out in this area and opportunities presented by the leisure aspect of the Friars Walk development. Proving support to businesses through mentoring, facilitating access to grants, providing training opportunities, organising collective purchasing and holding workshops on key business issues. Creating an empty shop project that aims to open up the use of empty units for new activities. Working with the Newport Food Festival Partnership to create a better food and beverage offer across the centre all year round. Looking at opportunities to build on Newport s sporting facilities/events and bring the benefits to the city centre Digital Economy Complement efforts in turning Newport into a Super-Connected City and the focus on digital innovation of the renewport, business development task force. Projects might include working with the proposed Innovation Company and digital businesses in the city to attract funding and deliver digital high street projects. Cultural Activities Newport has a rich and distinctive heritage and a vibrant art and music scene. It is also home to a growing number of groups and organisations that are passionate about the city and active in providing a growing cultural offer. A BID could work closely with such organisations, including the local university, and capitalise on the city s rich cultural assets to change perceptions and create a vibrant centre that people want to visit.

36 6.2 Recommendations and next steps Recommendation 1: In light of all available evidence, it is recommended that the Newport BID Steering Group moves towards a BID ballot for Newport City Centre. FOR a BID ballot AGAINST a BID ballot There is strength of support within the town centre, with 74% of businesses indicating that they support the BID concept inprinciple There is strong leadership from both the BID Steering Group and the Chamber of Trade, with good support from the Local Authority. There are a series of physical developments and regeneration efforts taking place in the centre, which a programme of services could complement especially in terms of marketing, safety and accessibility. In the vast majority of cases, the BID levy remains a relatively small sum for individual businesses and should be portrayed as such. There are a number of small businesses that may not feel they have the funds available for the BID levy in the current climate. They have no influence over many of their costs such as business rates but they do have power over the BID levy. (A threshold may help to address this.) There are a number of national chain retailers who may not make their voting decision locally. The condition of the city centre and competition from other centres such as Cwmbran and Spytty Park presents a serious challenge for a BID, especially in terms of evidencing ways to drive up footfall and making serious improvements to trading conditions.

37 Recommendation 2: Focus immediate effort on engagement, particularly with the key potential large levy payers To build a strong foundation on which a successful BID ballot could be achieved, the next couple of months should see the development of more and deeper relationships with local businesses and in particular those who would be the largest potential levy payers. Recommendation 3: It is recommended that the BID area is composed of Zone 1, the core centre area This area covers the main commercial district, including the primary retail area and nighttime economy district. It is suggested that in the first term, the BID focus on this central area and deliver targeted services that will make a real difference to the trading environment. Critically this area includes the new developments of Friars Walk and the Admiral offices. If a first BID term is achieved, the area could then be extended at a renewal ballot. The other areas considered - Goldtops, Commercial Road, Docks Way and Clarence Place and Corporation Road would either require an extended range of services or would not bring in sufficient funding through the BID levy to justify a sufficient level of service. Including them in the BID area would spreads resources too thinly and risk diluting a strong programme of improvements that business would find worthy of supporting at a BID ballot. The proposed Business Club will allow businesses, particularly at the top end of Commercial Road, in Clarence Place or in Docks Way, to participate in some BID services. Recommendation 4: It is recommended that the levy rate is set at 1.25% of rateable value for all area except the serviced shopping centres, where a 1% rate should be applied. The average UK BID levy is 1.4%. Although there is increasing downward pressure on BID levies (partly due to the success of BIDs in raising funds from other sources), a 1.25% levy is justified in Newport because of the current condition of the city centre and the services required to make a real difference. Kingsway Centre tenants already pay for a number of services that are BID like as part of their service charge and it is likely that future tenants of Friars Walk would pay a similar charge. It is, therefore, recommended that a lower levy rate be applied in these locations. Whether this rate is 1% or slightly higher may depend on whether higher cost BID services, such as street rangers, are provided to centre tenants or not.

38 Recommendation 5: It is recommended that the rateable value threshold is set at 5,000 and that there is no cap. With respect to the threshold, the 5,000 figure makes sufficient downward impact on the number of hereditaments, with the least possible impact on the levy outturn. With respect to the cap, there are no hereditaments that are significantly higher than any of the others. In addition, the levy outturn is required if the whole range of services set out above can be provided. It would therefore be inadvisable to further reduce it. Recommendation 6: It is recommended that the would-be BID creates a Business Club -type mechanism. This would allow businesses excluded by the 5,000 levy threshold, or by being outside the BID area, to benefit from some BID services (such as business networking, collective purchasing, promotions and mentoring) by making an annual voluntary payment. The amount may vary according to the size of business and/or individual requirements. Similar schemes have worked well for BIDs in other areas and have crucially helped to maintain a sense of a cohesive business community. The beneficiaries would include a number of the smaller independent retailers and local attractions for whom promotion would be important. Recommendation 7: It is recommended that an intensive BID campaign be delivered that includes a series of pilot projects. From previous experience, we have found that face to face contact with the vast majority of businesses is a key part of a successful BID campaign. It is recommended that a CRM database be developed and all businesses within the proposed area offered a meeting at their premises. In addition, a series of pilot projects should be organised to demonstrate the type of services that a BID could deliver and the benefits to city centre businesses. A BID HQ has already been opened in the city centre and this should be used as a base for activities. A more detailed timetable for the BID campaign can be found in the appendices, but can be summarised as follows:

39 Table 14: TIMESCALE FOR BID BALLOT (SUMMARY) Timescale Stage BID Start Date 1st April 2015 Billing Period & Company set up March 2015 Ballot Period November 2014 or February 2015 BID Proposal Published/BID event 28 th August Initiation of pilot projects, illustrating what the BID can achieve June-November BID Business Plan signed off End July 2014 BID Campaign begins June 2014 Appendices see separate document

40 The means: to change places for the better. Swyddfa Cymru Unit 3, West End Yard, West End, Llanelli, Sir Gâr / Carmarthenshire, SA15 3DN London Office 81 Southwark Street, London, SE1 0HX Phone / Ffôn: +44 (0) Phone / Ffôn: +44 (0)