FREMANTLE BID COMPANY LIMITED BUSINESS IMPROVEMENT DISTRICT BUSINESS PLAN

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1 FREMANTLE BID COMPANY LIMITED BUSINESS IMPROVEMENT DISTRICT BUSINESS PLAN Page 1 of 17

2 Guiding principles The City of Fremantle, the Fremantle Chamber of Commerce and the Fremantle BID each have similar aspirations for the economic success of the Fremantle CBD. However their roles and responsibilities differ. The City has an overarching responsibility for the public amenity of the Fremantle CBD environment, but does not have strong links to the commercial trading activities in the CBD. The Chamber has an overarching responsibility on behalf of its members to represent in the broader sense commercial interests throughout the Fremantle district. The Fremantle BID has a narrowly defined responsibility to undertake a range of specific activities (identified in the business plan) to create and promote, and where necessary by influence, an environment in the Fremantle CBD that attracts customers. Page 2 of 17

3 Roles and responsibilities City of Fremantle Fremantle to be recognised as a unique city of cultural and economic significance. Economic development: Strengthen Fremantle s economic capacity Improved retail sector attracting greater retail spend in Fremantle and providing local employment New commercial businesses established in Fremantle providing employment activities Transport: Lead in the provision of environmentally and economically sustainable transport solutions Fremantle recognised as a pedestrian and cycle friendly city Character: Sustain and grow arts and culture and preserve the importance of our social capital, built heritage and history A City that attracts diverse original arts and artists, culture and events. Strengthened sense of place The City is a creative cultural centre with vibrant festivals and street life Fremantle Chamber of Commerce To effectively represent the commercial, industrial and professional community of Fremantle in its broader sense and to promote the economic, tourist, retail, cultural and environmental development of the district To take an active interest in all matters of the moment affecting the City of Fremantle and the state of Western Australia with the view to improving, promoting and protecting the interests of members To undertake an educative role to promote members of the Chamber and to the community, the need to strive for excellence in all commercial undertakings Page 3 of 17

4 Fremantle BID Company Limited Promote the development and advancement of commercial and trading interests of business in the Business District (Fremantle CBD) through a coordinated and structured promotion and planning program Foster the wellbeing and economic development of the Business District Implement public relations and marketing activities to generate positive publicity for the Business District, including activities to market the Business District as a place to do business Enhance safety and security and to attract and retain business Page 4 of 17

5 Introduction Fremantle has traditionally been Perth s second CBD, supporting a range of retail, business, tourist, government, education, cultural, transport and community services. However, Fremantle is facing substantial competition from the Perth CBD and shopping precincts in the metropolitan area. New plans for Fremantle s physical environment need management support to ensure beneficial outcomes for customers and visitors. The CBD is the business heart of Fremantle which contributes to the economic vitality and is a destination for workers, residents and visitors to Fremantle through shopping, leisure, tourist and recreational activities. Increasing the economic vitality of the Fremantle CBD is just one issue to be addressed for long term success and prosperity. Increasing customer and tourist visits and their length of stay and spending will be critical to building a solid foundation for the CBD towards future growth. Resources and funds are stretched and new ways to deliver improved services for businesses and visitors must be found. A Steering Group comprising representatives of Fremantle CBD, commercial property and business owners, the City of Fremantle and the Fremantle Chamber of Commerce has guided the establishment of a Fremantle Business Improvement District (BID). In early 2011 the City of Fremantle commissioned a random telephone survey of its community to assess the level of support to a range of initiatives, proposed to be included in the Fremantle Economic Development Strategy More than 75% of the survey participants supported the creation of a BID for the Fremantle CBD. Page 5 of 17

6 What is a Business Improvement District? A Business Improvement District (BID) is a geographic area within which commercial property owners are charged an additional rate to pay for services that will enhance the physical and social environment of the area. These improvements should benefit the businesses within the BID area in the short, medium and long term. Towns and cities across the world are benefiting from the delivery of enhanced services and activities decided on by the commercial property and business owners through the operation of a BID. Improved business conditions, increased pedestrian traffic and increased property values are just a few of the benefits. Success in improving traditional high street precincts has been achieved through the establishment of over 2,000 BIDs in the United Kingdom, the United States, South Africa, Japan and New Zealand. In the United Kingdom 25 new BIDs are planned to be established during BIDs meet the challenges facing traditional high street precincts from purpose built shopping malls by involving commercial property and business owners in a formal relationship with local government to deliver focused marketing and promotion, and a safe and attractive shopping environment. Page 6 of 17

7 Why does Fremantle need a BID? The Fremantle BID will create a strong partnership between the Fremantle CBD commercial property and business owners and the City of Fremantle, with the common purpose of ensuring the CBD grows as a successful business and shopping precinct. The key benefits of the BID are: Coordinated approach to the development and marketing of the Fremantle CBD Stronger relationship between the property and business sector and the City of Fremantle More focused marketing, promotions and events increasing pedestrian traffic A more attractive, cleaner and safer, shopping and visitor environment. Greater ability to respond quickly to the needs of the business community. Increased pedestrian traffic and retail spending Improved property values and fewer vacancies Opportunity to leverage additional funds Page 7 of 17

8 Who benefits? COMMERCIAL PROPERTY OWNERS BUSINESS OWNERS FREMANTLE COMMUNITY CITY OF FREMANTLE Page 8 of 17 How will they benefit? A coordinated voice Coordinated actions Capital growth Increased rental returns Increased desirability of the Fremantle CBD for new businesses Increased retail sales and the ability to pay rent Properties away from main pedestrian area become more successful Good public relations - locally and regionally Positive links with City of Fremantle A coordinated voice Coordinated actions Increased pedestrian traffic and visitation Increased consumer spend and sales flowing to profit Reduced costs through crime reduction and cooperative marketing Flexibility to address individual sector issues Creates a better environment for staff Fairness to smaller businesses Fairness to all no free loaders Provide input into key projects and initiatives Performance measurement Positive links with City of Fremantle Economic growth and stable employment New investment Regional competitive advantage Improved social well being / quality of life Partnership between the private and public sectors Corporate social responsibility Sustainable investment for capital projects and services Positive sense of place and community pride Strengthened relationship with the Fremantle CBD commercial property and business owners Private sector management drive and skills harnessed Financial muscle of the private sector utilised Greater understanding of the role of the City of Fremantle New sustainable investment without detracting from other resources Demonstrated commercial support

9 Governance Board of Directors The Fremantle BID will be managed by a board of directors drawn from and elected by the commercial property and business owners in the Fremantle CBD. The board will be responsible for the sound administration of the BID and the implementation of the business plan. Fremantle BID Company On the basis of legal advice sought by and provided to the steering group the BID entity will be a not-for-profit company, limited by guarantee. The BID constitution was prepared by the steering group with legal advice. The BID constitution informs the functions and operations of the BID, including its purpose, objects, powers, budgets, reporting and meeting procedures. BID Manager The board of the BID will appoint a BID Manager to undertake the day to day business of the BID. Part-time administration support will also be secured. Funding and Performance Agreement The services supplied by the Fremantle BID build on the services currently delivered in the Fremantle CBD by the City of Fremantle. The Funding and Performance Agreement between the City of Fremantle and the BID sets out the base level of services provided by the City within the CBD. Through the funding and performance agreement the BID undertakes to deliver the services and activities indicated in the business plan. The Funding and Performance Agreement also establishes that for the period of the agreement, the City of Fremantle will collect and pass on to the BID the City Centre Commercial Differential Rate. The City s CBD service-level schedule is attached. Page 9 of 17

10 What is the BID Area? The Fremantle BID will operate within the area subject to the City Centre Commercial Differential Rate (see map below): Streets included: Adelaide Street Bannister Street Cantonment Street Cliff Street Collie Street Croke Street Elder Place (to Parry) Ellen Street (to Parry) Essex Street Fleet Street Henderson Street Henry Street High Street (to Parry) Holdsworth Street (to Parry) Leake Street Marine Terrace Market Street Mews Road Mouat Street Nairn Street Norfolk Street Pakenham Street Parry Street Peter Hughes Dr (E Shed/Ferry) Phillimore Street Point Street Queen Street Short Street Slip Street South Terrace (to Norfolk) William Street Page 10 of 17

11 Conclusion Evidence from around the world indicates that the most successful strategy to improve the business environment and attract more customers and visitors to high-street environments is the creation of a well managed business improvement district (BID). The Fremantle BID will provide commercial property and business owners and other stakeholders with a unified voice to more effectively manage the BID area. Consistent funding is a key element that allows the BID to develop and implement effective outcomes. The differential rate currently collected by the City will be transferred to the BID through the Funding and Performance Agreement. The BID will utilise the funds to deliver the services and activities indicated in the business plan. Page 11 of 17

12 Fremantle BID Services The Steering Group has worked closely with the commercial property and business owners in the BID area and stakeholders who have been identified as relevant. Together, they have prioritised a range of services to be delivered by the BID. Consultation has included surveys of commercial property and business owners. The priorities are: A united business voice High standards of safety and security Marketing, promotions and events A welcoming place These needs have been translated in this business plan. Page 12 of 17

13 1. A united business voice Objective: Regular liaison with the commercial property and business owners in the BID area and key stakeholders, including customers. Key Tasks: a) Provide regular and updated communication to inform commercial property and business owners businesses of upcoming events and promotions, improvements within the BID area, updates from safety and security meetings, etc b) Develop and maintain a section of the BID website for members c) Develop and maintain an up-to-date database of the commercial property and business owners within the BID area d) Provide and increase business networking opportunities between BID members e) Conduct market research and produce data orientated reports f) Develop programmes to retain current businesses within the BID area and develop strategies to attract business that provide a diverse retail offer g) A clear strategy for achieving more unified trading hours and promotion of those hours to customers Key Performance Indicators i. Annual survey of BID members measuring: satisfaction with the level of and quality of communication by the BID support for the BID Page 13 of 17

14 2. High standards of safety and security Objective: The BID area is safe and attractive for people to enjoy Key Tasks: a) Participate in existing safety and security networks, forums and information exchange to improve the effectiveness of security arrangements and methods and advocate for effective policing of the BID area b) Encourage and facilitate improved street safety and security c) Encourage and facilitate improved lighting in the BID area, including by shop and street lighting d) Encourage and facilitate the reporting of graffiti by the commercial property and business owners e) Partner with relevant social-service providers to maximize their performance Key Performance Indicators i. Annual survey of BID members measuring satisfaction with the level of safety and security for their business, their staff and their customers ii. Annual survey of customers in the BID area Page 14 of 17

15 3. Marketing, Promotions and Events Objective: Increase retail and visitor spend Key Tasks: a) During the first year of operations, the BID manager will work with the City s marketing team to jointly deliver the Fremantle CBD marketing plan and 2012/13 CBD marketing prospectus. In June 2013, subject to the BID board and City approval, the BID will become responsible for the marketing of the CBD on cooperative advertising principles b) Develop and apply the BID brand to all marketing and communication activity to ensure that a consistent image is maintained c) Develop relationships with key stakeholders to attract additional funds for marketing d) Develop a fully interactive BID website and apps for customers e) Liaise regularly with the City s marketing team about their destination marketing role f) Establish and implement a program of street activation including by regular events Key Performance Indicators i. Level of business buy-in to cooperative advertising campaigns ii. Website statistics Page 15 of 17

16 4. A welcoming place Objective: The BID area provides people with a great customer experiences Key tasks: a) Continually assess the appearance and amenity of the BID area and undertake improvements independently or as appropriate in association with the City to address deficiencies b) Liaise with the carpark owners and operators in the BID area to ensure carparking meets the needs of businesses and their customers c) Encourage and facilitate opportunities for improved shopfronts d) Encourage businesses to cross promote e) Continually assess and undertake improvements independently, or as appropriate with the City, opportunities for improving public infrastructure within the BID area, including signage, toilets, bins, street furniture, etc f) Liaise with public transport authorities and their contractors to maximize the use of public transport g) Continually assess best practice in BID activities world-wide and innovate and apply as appropriate Key Performance Indicators i. Annual survey of BID members measuring satisfaction with the quality of public space and amenity ii. Annual survey of customers in the BID area Page 16 of 17

17 Fremantle BID Co. Limited budget 2012/ /17 Income 2012/ / / / /17 Differential Rate 315, , , , ,701 Additional payment from City of Fremantle 50,000 50,000 Sub-total 365, , , , ,701 CBD marketing (a) 0 103, , , ,551 Business buy-in 0 103, , , ,551 Sub-total 0 206, , , ,102 Possible totals 365, , , , ,803 Expenditure inc GST 2012/ / / / /17 Administration Manager Salary inc super 119, , , , ,266 Workers comp. (inc board) 1,000 1,030 1,061 1,093 1,126 Office rent (inc outgoings) 16,500 17,325 18,191 19,101 20,056 Mobile phone 1,000 1,030 1,061 1,093 1,126 Office Comp. & laptop (inc maint) 2, Printer, ink, papers, maint Stationery 1, Postage 1,000 1,000 1,000 1,000 1,000 Travel expenses Professional development 1,000 1,000 1,000 1,000 1,000 Utilities Water Utilities Electricity Office cleaning & kitchen sundries Internet expenses (inc landline) 1,250 1,288 1,326 1,366 1,407 Insurance - Public Liability 1,700 1,751 1,804 1,858 1,913 Insurance - Prof Indemnity 1,800 1,854 1,910 1,967 2,026 Auditor ASIC Part time admin 5,000 5,150 5,305 5,464 5,628 Publications Sundries 4,500 4,635 4,774 4,917 5,065 Subscriptions 1,000 1,030 1,061 1,093 1,126 Projects (b) 200, , , , , , , , , ,539 Excess/shortfall 1,400 2, ,747 1,264 Balance brought forward 1,400 4,007 4,374 2,627 Cash flow 1,400 4,007 4,374 2,627 3,891 (a) Subject to a further agreement between the City and the Fremantle BID Co. Limited that the City's 'CBD Marketing' role be transferred to the BID. (b) Implementation of the business plan Page 17 of 17

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