FREMANTLE BID COMPANY LIMITED
BUSINESS IMPROVEMENT DISTRICT
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.
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
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
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 2011-15. More than 75% of the survey participants supported the creation of a BID for the Fremantle CBD.
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 2012. 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.
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
Who benefits? How will they benefit? COMMERCIAL PROPERTY OWNERS 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
BUSINESS OWNERS
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
FREMANTLE COMMUNITY
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
CITY OF FREMANTLE
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
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.
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
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.
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
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
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
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
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
Fremantle BID Co. Limited budget 2012/13 - 2016/17
Income 2012/13 2013/14 2014/15 2015/16 2016/17
Differential Rate 315,000 322,875 330,947 339,221 347,701
Additional payment from City
of Fremantle 50,000 50,000 Sub-total 365,000 372,875 330,947 339,221 347,701 CBD marketing (a) 0 103,000 106,090 109,273 112,551 Business buy-in 0 103,000 106,090 109,273 112,551 Sub-total 0 206,000 212,180 218,545 225,102 Possible totals 365,000 578,875 543,127 557,766 572,803 Expenditure inc GST 2012/13 2013/14 2014/15 2015/16 2016/17 Administration
Manager Salary inc super 119,900 124,696 129,684 134,871 140,266
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) 2,500 500 500 500 500
Printer, ink, papers, maint. 800 400 412 424 437
Stationery 1,500 350 361 371 382 Postage 1,000 1,000 1,000 1,000 1,000 Travel expenses 500 500 500 500 500 Professional development 1,000 1,000 1,000 1,000 1,000 Utilities Water 300 309 318 328 338 Utilities Electricity 500 515 530 546 563
Office cleaning & kitchen
sundries 350 361 371 382 394
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 600 618 637 656 675
ASIC 400 412 424 437 450
Part time admin 5,000 5,150 5,305 5,464 5,628
Publications 500 515 530 546 563 Sundries 4,500 4,635 4,774 4,917 5,065 Subscriptions 1,000 1,030 1,061 1,093 1,126 Projects (b) 200,000 410,000 370,000 380,000 385,000 363,600 576,268 542,760 559,513 571,539 Excess/shortfall 1,400 2,607 367 -1,747 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