Local Government (Business Improvement Districts) Act 2006

1. Definition.

1.— In this Act “ Principal Act ” means the Local Government Act 2001.

2. Amendment of section 2 (interpretation) of Principal Act.

2.— Section 2(1) of the Principal Act is amended by inserting the following after the definition of “local electoral area”:

“ ‘ local fund’ has the meaning given to it by section 97;” .

3. Amendment of section 97 (the local fund) of Principal Act.

3.— Section 97 of the Principal Act is amended in subsections (3) and (4) by inserting “or a BID fund established under section 129K” after “section 109”, wherever it appears.

4. Amendment of section 121 (consideration of annual financial statement and auditor’s report) of Principal Act.

4.— F1[…]

5. Amendment of section 122 (audit committee) of Principal Act.

5.— F2[…]

6. Business Improvement Districts.

6.— The Principal Act is amended by inserting the following Part after Part 13:

“PART 13A

Business Improvement Districts

Definitions (Part 13).

129A.— In this Part:

‘ annual BID contribution ’ has the meaning assigned to it by section 129L;

‘ annual BID multiplier ’ means the annual BID multiplier determined for a chargeable period under section 129M(2);

‘ BID approval date ’, in relation to a BID scheme, means the date on which the rating authority concerned passes the resolution approving implementation or renewal of the scheme;

‘ BID company ’ has the meaning assigned to it by section 129I;

‘ BID contribution levy ’ has the meaning assigned to it by section 129N;

‘ BID fund ’, in relation to a BID scheme, means the fund established or renewed for that scheme under section 129K;

‘ BID levypayer ’, in relation to rateable property subject to a BID contribution levy, means the person liable to pay the levy in respect of the property under section 129N(5);

‘ BID proponent ’ means a person specified as a proponent of a BID proposal under section 129C(2)(a);

‘ BID proposal ’ has the meaning assigned to it by section 129C;

‘ BID scheme ’ means a scheme approved by a rating authority under section 129B(1)(b);

‘ business improvement district ’ means a business improvement district established under section 129B;

‘ chargeable period ’, in relation to a BID scheme, means each successive 12 month period over which the scheme is to operate, beginning on the scheme commencement date;

‘ rateable property ’ means relevant property that is rateable under the Valuation Act 2001;

‘ ratepayer ’, in relation to rateable property, means a person required to pay rates on that property;

‘ ratepayer plebiscite ’ means a plebiscite described in section 129G;

‘ scheme commencement date ’, in relation to a BID scheme, means the date that the scheme comes into force under section 129B(6)(a);

‘ valuation ’ means valuation within the meaning of the Valuation Act 2001;

‘ valuation list ’ means a valuation list as defined in the Valuation Act 2001.

Rating authority approval of a business improvement district scheme.

129B.— (1) Subject to and in accordance with this Part, the rating authority for an administrative area may by resolution—

(a) specify an area within the administrative area and establish that area as a business improvement district, and

(b) approve implementation of a scheme (‘BID scheme’) to carry out or provide one or more projects, services or works described in subsection (2) and which scheme is financed in whole or in part by BID contribution levies under this Part.

(2) The projects, services and works referred to in subsection (1)(b) shall, in the rating authority’s opinion, be—

(a) for the benefit of the business improvement district and those who live, work or carry on an activity in it, and

(b) in addition to and not instead of any project, service or work carried out or provided by the rating authority immediately before approval of the scheme.

(3) Without prejudice to the generality of subsection (2)(a), a BID scheme may include plans or initiatives respecting any of the following projects, services or works:

(a) the provision, improvement or support in the business improvement district of any of the matters described in Schedule 13;

(b) the improvement or beautification of streets or footpaths in the business improvement district or any land, buildings or other structures in it;

(c) the removal of graffiti from streets or footpaths in the business improvement district or any land, buildings or other structures in it;

(d) the carrying out of studies or making of reports respecting the business improvement district;

(e) the promotion of tourism in the business improvement district or otherwise marketing or promoting activities, performances, events or use of amenity or facilities in the business improvement district.

(4) A rating authority may not approve a scheme for implementation under subsection (1)(b) unless—

(a) the terms of the scheme provide that, subject to section 129S (respecting early termination), the scheme is to operate for at least one year from the time it is to come into force,

(b) the scheme has been made available to the public in accordance with section 129D and submissions from the public have been invited in accordance with section 129E,

(c) a ratepayer plebiscite has been held in respect of the scheme and a majority of the ratepayers who vote in the plebiscite vote in favour of its implementation, and

(d) having regard to submissions referred to in paragraph (b), the rating authority is of the opinion that the scheme is appropriate and does not conflict in a material way with the interests of the local community.

(5) It is necessary for the passing of a resolution under subsection (1) that at least one-third of the total number of members of the authority concerned vote in favour of the resolution.

(6) A BID scheme—

(a) comes into force on the date that—

(i) is agreed between the rating authority and the BID company responsible for the scheme, and

(ii) is specified in the resolution approving the scheme under subsection (1),

and

(b) subject to section 129S (respecting early termination), operates and has effect for the number of years (not exceeding 5 years) as may be specified in the terms of the scheme.

(7) The 5 year limit in subsection (6)(b) does not prevent a BID scheme being approved under subsection (1) for renewal for one or more further periods, each not exceeding 5 years, provided that the conditions under subsection (4) are met each time the scheme is renewed.

(8) A rating authority may not do any of the following in respect of a business improvement district for which a BID scheme is in effect:

(a) revise the boundaries of the business improvement district;

(b) consolidate the business improvement district with another business improvement district;

(c) divide the business improvement district into two or more business improvement districts.

BID proposal.

129C.— (1) A person proposing a scheme for approval under section 129B may submit the proposal (‘BID proposal’) to the rating authority concerned.

(2) The BID proposal shall—

(a) specify the proponent’s name and provide an address for delivery of any notices to the proponent in respect of the proposal,

(b) define the boundaries of the area being proposed as a business improvement district (including a map showing that area),

(c) provide a current list of each rateable property in the proposed business improvement district,

(d) set out the terms of the scheme being proposed, including all of the following:

(i) a description of the objectives to be achieved under the scheme and a detailed description of the scheme itself specifying each project, service and work to be carried out or provided;

(ii) the date by which the scheme is expected to be in operation and the number of years over which the scheme is expected to operate;

(iii) the BID company that will be responsible for implementing or renewing and administering and managing the scheme in accordance with this Part;

(iv) those terms of the scheme that may be altered by consent of the rating authority and the BID company referred to in subparagraph (iii),

(e) specify the projects, services or works, if any, that are currently being carried out or provided by the rating authority concerned (‘baseline services’) and are relevant to the scheme being proposed,

(f) provide estimates of the following for each year over which the scheme being proposed is to operate:

(i) the expenditure that will be necessary to carry out or provide the projects, services and works under the scheme;

(ii) the projected income for the scheme and the sources of that income, including any contribution, grant or assistance from a person or public authority (other than the annual BID contribution);

(iii) the annual BID contribution,

and

(g) include such other information that the Minister may by regulation prescribe for purposes of this section.

(3) On request of a BID proponent, the rating authority shall provide the proponent such information that the proponent may reasonably require in order to determine and specify in the proposal the baseline services relevant to the proposed scheme.

(4) The BID proponent shall—

(a) deliver to the rating authority concerned a copy of the BID proposal together with an initial request that the rating authority hold a ratepayer plebiscite on the proposal, and

(b) provide the rating authority with such information as it reasonably requires to be satisfied that the BID proposal is not inconsistent with this Part and that the proponent has sufficient funds to meet the costs referred to in section 129H, should the proponent be required to do so under that section.

(5) On receiving the initial request for a ratepayer plebiscite under subsection (4)(a), the rating authority shall, as soon as practicable but subject to subsection (6), comply with sections 129D and 129E.

(6) The rating authority is not required to comply with subsection (5) until such time as the BID proponent complies with the requirements of subsections (2) and (4).

BID proposal to be available to public.

129D.— (1) A copy of a BID proposal—

(a) shall be made available at the principal offices of the rating authority concerned,

(b) may be inspected by any member of the public during normal opening hours, and

(c) may be purchased from the rating authority at a price not exceeding the reasonable cost of reproduction.

(2) In addition to but not instead of complying with subsection (1), the rating authority concerned may publish a copy of the BID proposal on the internet.

Public input to BID proposal.

129E.— (1) The rating authority concerned shall by way of a public notice invite submissions from the public on a BID proposal.

(2) Notice under subsection (1) shall—

(a) describe the proposed scheme in general terms,

(b) specify the area within the administrative area that is being proposed as a business improvement district,

(c) include a statement that, if the scheme is established, an annual BID contribution levy will be imposed on and collected from ratepayers of rateable property within the proposed business improvement district,

(d) specify—

(i) an address or location at which a copy of the BID proposal may be inspected pursuant to section 129D(1),

(ii) the price for which a copy of the proposal may be purchased from the rating authority under section 129D(1), and

(iii) if a copy of the proposal is also published on the internet pursuant to section 129D(2), the website address for viewing that copy,

and

(e) indicate that any person may, in the manner and by a date specified in the notice (‘closing date’), make a submission in relation to the BID proposal.

(3) For the purposes of subsection (2)(b), the notice may include—

(a) a map that clearly indicates the boundaries of the proposed business improvement district, or

(b) a list of the street addresses of the rateable properties within the proposed business improvement district.

(4) The closing date under subsection (2)(e) may not be less than 30 days after the date on which notice under this section is first published.

(5) The rating authority shall ensure that the BID proponent receives a copy of each submission made on the BID proposal.

(6) The rating authority shall prepare a report on the submissions (if any) made on the BID proposal; copies of that report shall be—

(a) furnished by it to the members of the authority, and

(b) made available by it to the public, on request and on payment to it of a fee (which fee shall not exceed the reasonable cost of making such a copy),

and, in addition to the foregoing, it may publish a copy of the report on the internet.

Next steps after public input.

129F.— (1) If, based on submissions made under section 129E, the rating authority concerned is of the view that the BID proposal may be inconsistent with the interests of the local community, the rating authority shall, as soon as practicable after the closing date under section 129E(2)(e) and no later than 60 days after that closing date, notify the BID proponent in writing explaining the nature of the inconsistency.

(2) Following consideration by the BID proponent of submissions made under section 129E and any notice under subsection (1) of this section, the proponent may, but not sooner than 60 days after the closing date referred to in subsection (1), deliver to the rating authority concerned—

(a) written confirmation of the initial request to have the BID proposal proceed to a ratepayer plebiscite, or

(b) written notice to withdraw the BID proposal.

(3) If the rating authority concerned does not receive written confirmation or notice under subsection (2) within 90 days after the closing date under section 129E(2)(e), the BID proponent is deemed to have withdrawn the BID proposal.

(4) A BID proponent who delivers notice to withdraw the BID proposal, or is deemed to have withdrawn the proposal, is liable to pay all costs incurred by the rating authority in relation to that proposal.

(5) The costs for which the BID proponent is liable under subsection (4) are recoverable as a simple contract debt in any court of competent jurisdiction and, if there is more than one such proponent, those proponents are jointly and severally liable for those costs.

BID proposal goes to ratepayer plebiscite.

129G.— (1) Within 60 days of receiving written confirmation delivered in compliance with section 129F(2)(a), the rating authority concerned shall, in accordance with this section and the regulations made under subsection (6), hold a plebiscite to determine the level of support for the proposal among ratepayers of rateable property in the proposed business improvement district.

(2) Each rateable property in the proposed business improvement district shall be afforded one vote in the plebiscite.

(3) The vote under subsection (2) may only be exercised—

(a) by the ratepayer of the rateable property at the time of the plebiscite, and

(b) by completing and returning a ballot paper in the form and manner prescribed under subsection (6).

(4) In the case of a rateable property where 2 or more persons own or occupy the property and are liable for rates on that property—

(a) they shall be considered as one ratepayer for the purposes of subsection (3)(a),

(b) they are not entitled to vote in the plebiscite unless a majority of them concurs, and

(c) unless the vote is signed by a majority of them, it shall be disregarded for purposes of the plebiscite.

(5) No later than 45 days after receiving written confirmation under section 129F(2)(a), the rating authority concerned shall send, by ordinary post or any other means that may be prescribed by regulation, all ballot papers for completion under subsection (3) to the ratepayers concerned.

(6) The Minister may make regulations—

(a) relating to and governing the conduct of a ratepayer plebiscite,

(b) prescribing the form of a ballot paper under this section and the manner in which it is to be completed and returned, and

(c) prescribing means other than post for the delivery and return of ballot papers under this section.

Costs of ratepayer plebiscite.

129H.— (1) If less than 20 percent of the ratepayers who vote in a ratepayer plebiscite vote in favour of having the rating authority concerned approve implementation of the BID proposal as a BID scheme, the BID proponent is liable to pay all costs incurred by the rating authority in relation to that proposal.

(2) The costs for which a BID proponent is liable under subsection (1) are recoverable as a simple contract debt in any court of competent jurisdiction and, if there is more than one such proponent, those proponents are jointly and severally liable for those costs.

BID company requirements.

129I.— (1) A BID company shall be a company limited by guarantee and formed and registered under the Companies Acts.

(2) The principal objects of the BID company shall be stated in its memorandum of association to be as follows:

(a) to implement or renew and administer and manage a BID scheme or, as the case may be, a scheme being proposed for purposes of this Part;

(b) to ensure that each project, service and work under the scheme is carried out in accordance with that scheme and this Part;

(c) to carry out the functions of a BID company in accordance with this Part.

(3) Subsection (2) does not prevent or restrict the inclusion of objects and powers that are—

(a) reasonably necessary, proper for or incidental or ancillary to attaining the principal objects referred to in subsection (2), and

(b) not inconsistent with this Part or any other enactment.

(4) A BID company shall have a board of directors consisting of not less than 6 members and at least two-thirds of those directors shall be—

(a) ratepayers of rateable property in the business improvement district or, as the case may be, in the area being proposed as a business improvement district, or

(b) representatives of such ratepayers.

(5) On approval of a BID scheme by a rating authority under section 129B, the rating authority is entitled to have the following representation on the board of directors for the BID company that will be implementing or renewing the scheme: