Letchworth Garden City BID 2014/19

Letchworth Garden City BID 1

Prospectus 2014/19

your town, your business, your say

02 Letchworth Garden City BID

OUR VISION

To restore the world’s first Garden City to its place as a unique and inspirational destination for all to enjoy: attractive, social, innovative, creative, convenient and most of all thriving.

OUR MISSION

To restore and sustain the economic strength and vitality of Letchworth Garden City Town Centre.

WWW.LGCBID.COM


This prospectus lays out our plans to create a Business Improvement District (BID) for Letchworth Garden City. It is a call to action for every town centre business. It offers a unique opportunity to change the future of our town for the better. By working in genuine partnership with one another, and the wider community, we can transform the economy of our town centre, to everyone’s mutual benefit.

There are town centres that have built their success by extending their offer far beyond traditional shops and services. They have developed social hubs for their community, providing activities and experiences that build interest and support from residents and customers further afield.

There is already a vibrant social and civic life in Letchworth Garden City. The challenge is how we connect with it and develop the relationship that increases and sustains footfall to the benefit of our businesses.

It does need collective support and a financial commitment to the BID. For many this means an outlay of less than £3 a week.

Committing together means we will raise around £135,000 a year. During the next five years that represents £650,000 additional investment to drive the kind of economic improvements that will underpin our long-term future. We believe that there is every chance of attracting additional funds from external organisations that may very well see our working capital rise to £1M.

While much of the power of the BID lies in this additional investment over the next five years, its real power comes from the strength of our collective voice and our shared single goal.

As fellow investors, owners and operators in Letchworth Garden City, I hope that you will take the time to read this prospectus and then VOTE YES to the creation of our own BID Company in the postal ballot which will take place in October this year.

Yours sincerely.Thomas Humfrey, Chair

LETCHWORTH GARDEN CITY BID | STEERING GROUP

Thomas Humfrey Postal Pursuits Chris Gerard Broadway HotelPaul Wallace David’s Bookshop Maureen Davison Just For MeEmma Doherty Caketopia Michael Humphris Tri SportsDavid Pitcher North Herts College Cllr David Levett NHDC

Frank Seldevig Your IT Studio Chris Stafford MorrisonsMaria Iredale Letchworth Arts Centre Richard Vernon Annie’s GlassJohn Lewis Heritage Foundation Paul Haynes GSSCLee Boswell LTCP Camilla Hamilton Community Rep

THOMAS HUMFREY | Postal Pursuits


WHAT IS A BUSINESS IMPROVEMENT DISTRICT?

A BID is an arrangement under which local businesses come together to create a strategic plan which delivers a sustainable economic improvement in the trading activities of town centre businesses.

BIDs have developed nationally over the last 12 years and are now seen as a highly effective method of delivering positive change to a business area.

All businesses within a BID area are eligible to vote for, or against, its creation. A “YES” vote will enable the BID company to be formed to implement the strategic plan. The BID company is managed by a Board, elected by the each business in the BID area.

WHY IS A BID RIGHT FOR LETCHWORTH TOWN CENTRE?

The Letchworth Town Centre Partnership commissioned a feasibility study into the creation of a BID. This took the form of a series of surveys, forums, communications and consultations within the town centre over the last two years.


Businesses confirmed that Letchworth Garden City town centre has suffered from declining footfall in recent years. With a long recession, strong competition from neighbouring towns and the growth of online retail, many businesses are under pressure.

Meanwhile, Letchworth Garden City consumers tell us that the town needs a better offer if they are to spend longer here and spend more with us.

Stay less than two hours

Spend less than £20

Want to see ‘A greater range and

quality of shops’

MICHELLE SZPAK | Szpak Photography Studio

“The BID is a unique opportunity to do things differently and better in Letchworth. This is a positive change that I can support.”

The town centre offer is inextricably linked to footfall. One drives the other. Therefore the challenge is to transform a vicious circle of declining offer and footfall into a positive spiral of growth.

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HOW WILL THE BID MAKE A DIFFERENCE?The Letchworth Garden City BID company would act as a driving force for improvement and the voice for local businesses. It would also be working with local stakeholders, including residents, to create, coordinate and deliver an action plan to grow our town’s offer and footfall at the same time:

A BID brings simultaneous, coordinated and sustained action over five years

LIZZIE MCAULEY | Baker Brothers

“It’s genuinely exciting to be on the threshold of so much positive change. The BID has massive potential to give Letchworth a much needed boost.”

The result is a self-reinforcing cycle of improvement

OFFER

FOOTFALLACTION TO IMPROVE THE TOWN CENTRE’S

OFFER

ACTION TO DRIVE UP TOWN CENTRE

FOOTFALL


The BID company’s proposed plan contains four workplans of additional activity, details of which are included later in this document:

n Events and promotional activities

n Access and parking

n Marketing

n Developing our offer

However, the principles behind the plan are just as important as the plan itself and they will drive our BID activities.

The BID company will:

n Spend its money exclusively on activities which will build up footfall, dwell time and local spend

n Recognise that the customer’s experience in our town centre is paramount to its success and relentlessly focus on improving this

n Tap into Letchworth’s vibrant community life and maximise residents’ support for their town centre

n See the internet as an opportunity for us all and support smaller businesses to make greater use of it

n Ensure that its money is spent as locally to Letchworth as possible, knowing that money spent in this way is much more likely to return to our town centre

n Work tirelessly to build business engagement with the work plan to maximise its success

The result is a self-reinforcing cycle of improvement

The levy has been set at 1.5% of your rateable value which means that the BID will generate a minimum of £135k to be spent on driving up offer and footfall per annum. Of this, a typical independent business, with a rateable value of £20,000, will contribute £300, equivalent of just 0.2% of the total levy income.

In addition, we are confident that the BID company will be able to draw in additional income and grant funding to supplement this (as all other BIDs in th U.K. have managed to do).

Every £1 a typical independent commits could generate as much as £1,000 which will be invested collectively to help every business grow.

WILL I GET VALUE FOR MONEY FROM THE BID?

£300

£135K


EVENTS AND PROMOTIONAL ACTIVITIES£270,000 over the five year life of the BID

Weekly events and promotional activities are held throughout the town centre, showcasing the town’s core offer and bringing additional attractions to the town.

What will this deliver?

n Continual additional reasons for consumers to visit the town

n Opportunities for businesses to build new customer relationships and consumer habits

n Increased footfall in the town, both for the duration of the events and in the longer term

n Improved connections with the community through working in partnership with residents groups to put on events

Specifically the BID company will

nEnsure there is an event or promotional activity in the town every week

n Develop the existing programme of events within the town, taking account of feedback to retain the best bits of this programme (and its existing funding), make improvements where necessary and innovate

n Work with town centre businesses to help you maximize the benefit from events and promotions

n Support businesses and community groups to develop their own events and promotions whenever these will add value to the economy of the town centre

KIRIT PATEL | Cuthberts

“Having a BID in Letchworth would be a positive step forward for the town. Getting more people into the town, spending locally and staying longer can only be a good thing.”

WORKPLAN

01



ACCESSANDPARKING£130,000 over five years

Reviewing and taking action on those aspects of access and parking in the town centre that are most important to visitors and businesses.


Our aim is to work to ensure that town centre access & parking seeks to encourage greater footfall and dwell time in the town.


Bring together relevant stakeholders to review town centre access, parking and signage and take action with the aim of:

nImproving access to the town centre

n Providing additional free parking provision within the town centre

n Improving parking signage to ensure customers access is made as simple as possible

n Optimising visitor dwell time in the town centre by investigating alternative car parking payment mechanisms

TERRY DEAR | Shoe box

“We have to do something to bring back the vitality and energy to the town. The BID appears to be the ideal vehicle to do just this.”

WORKPLAN

02



MARKETING£205,000 for the duration of the BID

Promoting what Letchworth Garden City has to offer to our primary and secondary catchments via all media formats with an increasing focus on digital media.


n Greater awareness of Letchworth Garden City town centre, what it offers, and the positive changes taking place

n Continual placement of Letchworth Garden City businesses in the minds of local consumers

n A stronger Love Letchworth brand, communicating that Letchworth Garden City is attractive, sociable, innovative, creative, convenient and thriving

n More customers and greater spend through improved information about what is available in Letchworth Garden City town centre


n Promote a new Love Letchworth website with individual pages allowing each business to amend their own information as well as provide offers direct to consumers

n Increase use of radio and print advertising to promote town centre activity and offer

n Increase use of social media

n Improve consumer information about what products and services are available in Letchworth Garden City town centre

ANGELLA WHITEHEAD | Funkydory

“Having a voice and a say in the future of my investment in the town has to be right. The thought really appeals to me so I will be voting yes to the BID.”

WORKPLAN

03



DEVELOPINGOUR OFFER£135,000 from 2014-2019

Improving the range, relevance and quality of the social, leisure, service and retail offer in Letchworth Garden City town centre, working with landlords where necessary to do this


nImproved customer satisfaction in existing Letchworth Garden City town centre businesses

nA better range of outlets and activities in the town centre

nEnhanced business practice leading to higher profits for town centre businesses


n Establish a business skills training programme

n Establish a mystery shopper programme

n Help businesses improve their digital presence

n Develop an attract and retain strategy for quality businesses

n Establish exciting “pop-up” shops and activities

n Improve the assessment and support offered to potential new businesses during the lease negotiation process

n Find out what residents/consumers want through a moderated online forum

WORKPLAN

04

DAWN DIDD | Garden City Florists

“You hear of the success BIDs are generating elsewhere. I’m sure it will do the same here.”



THEBIDAREAn Arena Paraden Bridge Road (part)n Broadwayn Central Approachn Commerce Wayn Eastcheapn Gernon Roadn Howard Park Cornern Leys Avenuen Norton Way North (part)n Norton Way South (part)n Openshaw Wayn Rowland Wayn Station Forecourtn Station Placen Station Roadn Station Paraden The Arcaden The Galleryn The Wynd


The intention is that the businesses within the BID area will share the costs of the many and various additional activities described earlier. The total sum required to drive these activities suggests that the annual BID levy needs to be set at 1.5% of your current business rateable value as shown in The District Council’s RV listing as at the 1st January each year.

The statutory framework on which BIDs are based means that, assuming the vote is favourable, it will be compulsory for all business rate paying companies within the BID boundary to pay the annual BID levy, regardless of whether or not they voted in the ballot or however they voted, if they did. Payment will be regulated in the same manner as that for business rates collection.

The BID arrangement is for five years. At the end of that time the BID can be renewed by ballot for a further term or simply switched off if it has not delivered all that it has promised.The levy of 1.5p in the £ of rateable value will generate approximately £135,000 each year. The table below gives some examples of the typical cost to local businesses:

The BID Board will aim to increase the available funds through grants and other sources by a further £345,000 in five years (or more), making available to Letchworth businesses an investment pot of more than £1,000,000 over the next five years. Without a BID in place, additional funding of this magnitude would simply not be possible to consider.

All hereditaments will pay the full 1.5% levy apart from the following:

n The libraryn Religious organisationsn Public toiletsn Individual single parking spacesn Communication mastsn Advertising hoardingsn Police, Fire & Ambulance stations

HOW MUCH WILL YOU PAY?

PROPERTY

RATEABLE VALUE

£5,000

£10,000

£20,000

£50,000

ANNUAL LEVY AT

1.5%

£75

£150

£300

£750

WEEKLY COST OF

THE LEVY

£1.44

£2.88

£5.76

£14.42

ALLAN TYRER | NHC

“We’re delighted to be investing in Letchworth Garden City and supporting the BID. Having so many voices working together will be incredibly powerful. Let’s not waste this opportunity.”


FINANCEANDBUDGET

INCOME 14/15 15/16 16/17 17/18 18/19 Total

£K £K £K £K £K £K

BID levy 135 139 143 147 152 716

Voluntary 10 10 15 15 20 70

External Funds 25 50 50 75 75 275

TOTAL INCOME 170 199 208 237 247 1061

EXPENDITURE 14/15 15/16 16/17 17/18 18/19 Total

£K £K £K £K £K £K

Events and promotional activities 40 50 55 60 65 270

Access and parking 30 25 25 25 25 130

Marketing 30 40 35 50 50 205

Developing our offer 20 25 30 30 30 135

Communications 06 07 07 09 20 49

BID Manager and staff 25 30 35 40 40 170

Office overheads 05 05 05 05 05 25

Audits / legal / accounts 03 03 03 03 03 15

Contingency 10 12 13 13 14 62

TOTAL EXPENDITURE 169 197 208 235 252 1061

n Likely matched funding and additional income of c£345,000 has been included. External income is based on similar experiences in the more successful BIDs around the country.

n Year on year inflation will be included at the acknowledged RPI rate at the time. Currently it is running at +3%.

n 6% will be secured for contingency which ultimately may be used to finance any renewal ballot.

n The Heritage Foundation have agreed to offset TCM costs by £30,000.


ANDY LOCK | Morrisons

“Letchworth embracing the BID means businesses both large and small will all take collective responsibility for improving our town.”

Businesses within the Letchworth BID area will be asked to vote on whether or not they wish Letchworth BID to become operational and to implement this Business Plan over the coming five years (i.e. until March 2019).

Ballot papers will be sent out in late September to the person identified in the specially prepared register of potential voters held by the Council. Completed ballot forms are to be returned no later than the 28th October 2013 by 5pm. The result will be announced within 24 hours. Each rateable property has one vote. A proxy vote will be available. Where a property is vacant, undergoing refurbishment or being demolished, the property owner will be entitled to vote.

TO SUCCEED THE BALLOT HAS TO MEET TWO TESTS:

BALLOT AND VOTING

A SIMPLE MAJORITY OF THOSE WHO VOTE MUST REGISTER A ‘YES’

AND

THE AGGREGATE RATEABLE VALUE OF THOSE THAT VOTE ‘YES’ MUST BE GREATER THAN THAT OF THOSE THAT VOTE ‘NO’


NAS STAVROU | L 4 Leather

“We have to be in this together. The days of watching from the sidelines are over. Teamwork and collaboration are the only techniques that are going to make a difference here now.”

Letchworth Garden City BID will be a private sector-led, not for profit, independent company limited by guarantee. LGCBID will have its own board of up to 16 directors who will meet quarterly to oversee the delivery of the business proposal and its projects and the efficient running of the company. An election will be held to determine BID Board members. For the purposes of Companies House regulations, three of the Board will be invited to be returned as formal Directors of the Company. Their position and role will be reviewed and renewed each year at the Annual General Meeting.

ELECTED BUSINESS MEMBERS SEATS VOTES

Retail & Retail Services 04 04Banking & Commerce 01 01Legal & Property 01 01Hospitality & Eateries 02 02Art & Culture 01 01

STAKEHOLDER MEMBERS SEATS VOTES

Shopping Centre Management 01 01North Herts College 01 01NHDC 01 01Heritage Foundation 01 01Morrisons 01 01

OBSERVER ROLES SEATS VOTES

Letchworth community 02 0(inc. student rep)

GOVERNANCE

The Chairman of the Board will be elected from within the elected business members only.

Both The Foundation and The District Council have agreed to continue to provide grant funding to cover any retained services provided by the present Town Centre Management team so that the BID’s income can be directed solely to incremental activities and added value. The Board will be totally independent and enter into a “memorandum of understanding” with its key partners to sustain existing service provision for the duration of the BID, as far as they are able.


It will be important to monitor the progress of Letchworth BID. Performance data will give our key levy payers and investors, evidence that we are delivering the targets identified in this Business Plan.

Setting performance targets will also motivate BID staff and give information about progress and achievements.

Our Key Performance Indicators will include:

n Footfall counts

n Business and customer surveys

n Vacancy rate levels

n Parking statistics

n Post event analysis

n Web analytics

n Business performance sampling

n Mystery shopping output

KEY PERFORMANCE INDICATORS

FACTS ABOUT THE LETCHWORTH BIDn The BID will commence in March 2014 and run for five years. The BID will work to deliver all it promises. If it does not then it can be simply switched off at the end of its five-year term by not voting in favour of renewal

n A successful Letchworth BID will be formally and legally committed to deliver only the additional activities articulated in this business plan. The BID Board may not spend the levy monies for any other purpose or agenda without conducting an alternation ballot first

n It will be managed independently by business people who pay the BID levy, elected by the town centre’s businesses

n The District Council has given its full support to the Letchworth BID and, subject to a positive ballot, will contribute via levy payments just the same as other business ratepayers. It will collect the BID levy without charge and hand it over in its entirety to the BID Board to administer

n The levy collected from local businesses will be supplemented by additional income attracted by the BID mechanism through grant aid, sponsorship or the selling of services, information or access to market

n The BID output and performance will be constantly monitored with regular feedback to keep businesses in the picture at all times


We gratefully acknowledge the help and support of Councillors, senior officers and staff of the District Council and also the staff at the Heritage Foundation.

Our thanks for helping preparing this document and other supporting literature go to Chris Hollins of Pfbb UK LLP

The design and artwork for the prospectus was created by Ross Walpole and Ryan Gaston.

ROSS WALPOLE RYAN GASTON

WITHTHANKS


WWW.LOVELETCHWORTH.COM

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Letchworth Garden City BID 2014/19

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