To agree to vote in favour of Hereford BID for the second, five year term.

To agree to pay the levy on Herefordshire Council properties in the BID area to the value of £21,495 per annum.

This report is to request cabinet approval to vote ‘yes’ to the second term of Hereford Business Improvement District in the forthcoming ballot.  Via levy contributions by BID members, the continuation of the BID will have a budget of £1.765m to deliver a programme of projects in the city centre.  These projects and improvements have been clearly defined in the BID Business Plan (Appendix 1) and are additional to any services that are funded by the local authority.  There are extensive benefits, not only to the businesses, but also to the local authority, residents and visitors alike.  These are outlined in key considerations.  Herefordshire Council is required to make an additional annual contribution of £14,790 (compared to 2019/20) as a levy on its properties in the BID area.

The projects proposed by the BID have been in consultation with BID businesses and Herefordshire Council.  The projects provide value added services and do not duplicate existing activity.  The projects also meet the council’s aspirations for improving the city centre and it is noted that they will enhance the city’s overall offer.

That:

(a)       the Economic Development Manager be authorised to vote in favour of Hereford BID for the second, five year term (2020-2025);

(b)       payment of the levy on Herefordshire Council properties in the BID area be approved, valued at £21,495 in year one (an increase of £14,790 on the current levy paid) for a period of up to five years; and

(c)       The Director of Economy and Place (liaising with Legal Services) be authorised to finalise and arrange for the execution by the Council of all necessary contract documentation relating to the BID extension.

1.    That Herefordshire Council does not vote in favour of the Hereford BID - this option would leave the Council vulnerable to adverse publicity, as it has been fully supportive of HBID during the development phase and first, five year term.

2.    That an allocation is not made available within the annual budget for years 2020-2025 to cover the levy payments of 1.5% on rateable value of Council owned hereditaments (property and carparks) within the BID area - this option is discounted because Herefordshire Council will have to pay the levy on its hereditaments should the BID go ahead, irrespective of whether or not it has voted yes.  It should be noted that there are benefits to both the Herefordshire Council and the continuation of the BID, which are mentioned later in the report.