Businesses must take the following steps before a BID can be established:

• Identify a geographical area (The Area)
• Decide which new or expanded services are needed to enhance their trading environment  (The Need)
• Vote to invest collectively (The Vote)
• Finance a BID through a levy on their business rate (The Levy)
• Lever in additional resources from elsewhere (Funding)
• Establish delivery guarantees and performance indicators (Measure Results)
• Manage an independent company to deliver the BID (Manage)

THE AREA

The BID would take in the heart of Inverness Old Town Centre, covering 680 separate rateable properties (or ‘hereditaments') including a mix of retail, office, leisure and other commercial uses.

It extends from Eastgate Shopping Centre in the East to Bank Street at the Ness Riverside in the West, from Castle Street to High Street in the South and up Friar's Lane in the North. It also covers businesses in Academy Street, Church Street, School Lane, Post Office Avenue, Rose Street, Margaret Street, Strothers Lane, Railway Terrace, Queensgate, Union Street, Fraser Street, Bank Lane, Bridge Street, High Street, Eastgate, Inglis Street, Stephen's Brae, Market Brae, Falcon Square, Station Square, Drummond Street, Lombard Street and Baron Taylor's Street.

The BID boundary therefore incorporates the main tourism attractions, retail areas, Inverness Railway Station and a number of Council-owned properties including The Highland Council and the Town Hall. The BID boundary is illustrated on the map below.

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THE NEED

Immediate, highly visible improvements for the BID area could include:

• Safer & more customer friendly BID area
• Cleaner & more attractive BID area
• Better maintained BID area
• More accessible BID area
• Better promoted & energised BID area
• Better informed & involved

However, all plans must be ADDITIONAL to what the council and other public bodies such as the police provides. A well documented service level agreement with these bodies is therefore essential.

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THE VOTE

In order for Inverness BID proposals to go ahead, more than 50 per cent of business ratepayers who vote have to vote ‘yes'. Those in favour also have to represent at least 50 per cent of the rateable value in the business improvement district.

If these criteria are met, the business plan is activated and all businesses in the area concerned will be required to pay the levy. The persons entitled to vote, and be liable for the levy, are the ratepayers of premises in the Inverness Business Improvement District.  

THE LEVY

BID projects are funded by a levy.

BID proposals are set out in a BID Business Plan. This Plan will clearly set out what the levy cost - or investment cost - to each business in the BID area will be.

A BID runs for a fixed period of time - usually five years. After this time businesses can vote on a new BID business plan and start the whole process again. 99% of BIDs worldwide vote "yes" to continue once they are in existence.

All business ratepayers who would contribute to the levy in their BID area have a "BID vote". The "BID vote" gives businesses the chance to vote "yes" or "no" to the projects proposed by the BID. A "yes" vote means the proposed projects will be delivered by the BID company. A "no" vote means no BID company, and no projects delivered.

For a "yes" vote to be carried, these three tests must be passed:

• A simple majority (above 50%) of those voting, must vote "yes"
• Those voting in favour must represent over 50% of the aggregate rateable value of the hereditatments (rateable value).
• A minimum turnout figure of at least 25 per cent is required, although the Steering Shadow Committee can set a higher threshold if it wishes.

  Summary

A majority of those voting have to vote ‘yes'.

The ‘yes' votes have to represent at least 50% of the Rateable Value (RV) of those businesses with a minimum turnout figure.

A "yes" vote will result in BID projects and services being delivered. These activities will be funded by the businesses in the BID area paying a levy. The levy should be billed separately to the Non Domestic Rates.

Once a "yes" vote has been achieved, the billing authority will collect the levy. The levy will be handed over to the BID Company so that it can deliver its business plan.

The Inverness BID will be core funded by a levy of 1% of the non domestic rateable value of each property in the BID area. Businesses with a rateable value of less than £8,000 will be exempt from paying the levy and will not be entitled to a vote in the ballot. The levy will be based upon 2005 rateable values, with indicative costs to businesses being as follows:

1% Levy

At a 1 per cent BID levy, the indicative costs to a business would be:

Eligibility to Pay the BID levy

The list of BID levy payers and the amounts to be paid will be updated and amended during the life of the BID. These variations will depend on circumstances such as some ratepayers being removed, others being added or any successful appeals against rateable value.

The BID levy will be paid by any new ratepayer moving into the BID area up to the end of the Inverness BID even though they did not vote on the initial proposal. Likewise, any new rateable properties created will be obliged to pay the BID levy. If a business rate payer occupies premises for less than one year, the amount of BID levy payable will be calculated on a daily basis.

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FUNDING

Generating sustainable funding

The BID must continue to generate additional income, over and above the BID Levy.  Such additional revenue generation significantly improves the value for money which BID levied businesses gain from the BID's activities and enables it to do more than the BID Levy alone could achieve. There will be a continued emphasis on innovative funding initiatives

Earned income

The BID will also gain income from the sale of services to third parties.  These services are able to be offered because of the core competencies of the BID.

Grants

The BID Inverness Pathfinder Project is in receipt of grant income from the private and public sector like the Inverness City Partnership and the Scottish Executive.

It is logical, therefore, that such grant income is included in the proposed BID Business Plan.

Free Benefits that will be provided to BID Levy Payers

The BID is a logical progression of ICCM existing voluntary membership schemes.  These provided benefits to members, specific to their business sector (such as a highly effective retail crime operation), in return for their membership fees.  These were over and above the benefits that have led to a general improvement in the trading environment (such as clean & safe and entertainment).  The BID seeks to continue that principle and will provide a number of free benefits to BID Levy Payers.

Castle Street

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MEASURING PERFORMANCE

The success of the BID will be judged by the outputs that the BID company delivers in relation to the three key BID projects:

Every year the BID Company will publish an action plan that will detail specific projects which the company will deliver over the next twelve months. Key performance indicators will relate to the completion of this action plan.

The proposed action plan for year one of the BID company will be published on the Inverness BID website within the first three months of the BID company being created, ensuring that members and directors of the BID company direct project delivery.

KPIs for year one of the BID company’s performance will relate to specifics contained in the action plan, however, in general KPIs will relate to:

1. Marketing and Promotion

• delivery of events detailed in annual action plan
• establishment of baseline measures of footfall
• uplift in footfall created by events (year-on-year and against previous week)

2. Advocacy

• leverage of additional income in to the BID company as a result of relationship building with third parties. The BID will aim to achieve a leverage rate of 30% in year one rising to 50% in year five of the company’s operation
• establishment of baseline service level agreements with suppliers of public services
• enhance levels of communication between businesses and public services via the BID company, for example by recruitment of city centre ambassadors
• establishment of reporting systems to expedite reporting and resolution of issues in relation to the provision of public services
• continuation of measures already in place that monitor number of incidents reported (for example graffiti and fly posting removal), and time taken to resolve issues raised

3. Safety

• information sharing – number of businesses participating in safeinverness information sharing projects, using safeinverness bulletins and reporting incidents
• business training – at least two seminars held per annum focussing on reducing risk and losses
• the number and types of incidents occurring within the BID area, and the year-on-year trends of such incidents relative to national average (aim to achieve a decrease)
• continuation of the safeinverness annual business survey – helping to identify priorities and trends 

4. Business Performance

The Inverness BID is designed to strengthen the city centre trading environment. The BID will, subject to businesses participating, deliver a measure of city centre business performance: the “city trading index”. This index will rely on businesses agreeing to supply the BID – on a confidential basis – with information on percentage change in income. The BID will publish an average “score” based on this information and make this information available to all BID members. The BID will also provide reports on car park usage, vacant property counts and hotel occupancy rates – again subject to businesses supplying this information.

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The BID Steering Group will have the responsibility for agreeing and managing the budget, which will be set on an annual basis.

The financial management of the BID project will be operated in accordance with appropriate Financial Procedures and Project Management Procedures recommended by the BID company appointed accountants.

A project financial control system will be put in place to meet the requirements of partners and funding organisation. A monthly management report will be produced, Illustrating expenditure against budget headings, balances available and a forward estimate of proposed expenditure over the remainder of the project. An audit trail spreadsheet will be developed to record items against specified project funds to demonstrate transparency and eliminate duplication.

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