Businesses divided at BID meeting

Warkworth Area Business Association (WABA) is pushing to establish a BID, which would create a targeted rate on all Warkworth businesses. Funds could be used to employ a manager to promote the area, hold events and represent and advocate for the district.

There was heated debate during the first consultation evening last month, with a split between the retail sector which wanted greater promotion of the area to draw in customers, and members of the industrial area who said it wouldn’t benefit them and they would face higher fees due to their higher property values.

Five speakers from WABA, Auckland Council and representatives of other BIDs in Auckland spoke about how a BID would help Warkworth make the most of future growth.

North West BID manager Gary Holmes said a BID would give Warkworth a stronger voice in the super city.

“Council and Auckland Transport have proved that if you are just one business they will walk all over you, but a group which represents all the businesses in an area gets listened to.”

BID project manager Murray Hill said a BID would enable far greater representation and promotion than WABA can provide.

“Currently, WABA only represents 15 per cent of businesses and landlords and has a budget of just $18,000. A much greater income from a BID could pay for a professional to promote and advocate for the area on a daily basis.”

WABA co-chair Rachel Callender said the association put in about 3000 volunteer hours a year to promote the region, which was not sustainable.

“We need more of a business approach. At the moment we only do things when we have the time.”

Devonport BID member Chris Sharpe said the town had two failed BID attempts before the initiative passed. The third attempt was successful because they focused on a small area in the town centre.

“It’s much harder to incorporate a wide variety of businesses because those in outlying areas tend to benefit less from the arrangement.”

The presentations were received by a stern-faced crowd, who only livened up during the Q&A session at the end of the meeting.

A major source of contention was how the BID would be funded, which is yet to be decided. One option involved collecting a percentage of a property’s capital value, so larger properties pay a greater proportion of the BID budget.

This would result in many industrial businesses paying a considerably higher rate than retail businesses, which are generally smaller and have a lower value. Other options are for a flat fee on all businesses or a combination of a flat rate and a capital value rate.

MS Engineering owner Hugh Harvey said he would get little benefit from a BID and was concerned the targeted rate would be based on capital values.

“Most of my business comes from out of the area or offshore,” Mr Harvey said.

“The costs on retail won’t be anywhere near the costs on industrial properties. The businesses which benefit most from the BID should pay for it.”

Landlord Peter Thompson said there had been a lack of consultation.

“I’ve got 13 tenants and half of them say they haven’t been given any information about it and none of them want a BID.”

Council BID team leader Gill Plume said the BID wouldn’t be implemented for another 15 months so there was still plenty of time to develop a system that suits the majority of businesses.

“You don’t need to get your pitchforks yet. This is going to be a democratic process.”

The Q&A session was stopped half-an-hour after the meeting was scheduled to end as the debate threatened to continue all night.

After the meeting, Murray Hill said members of WABA and the industrial area had been meeting to discuss options and alternative funding models were being considered.

“Warkworth may need a different model than what’s out there currently. If a proposal was developed which worked for all parties then there could be ways to accommodate that.”

He wouldn’t say whether that could include charging industrial businesses a lower rate than retail businesses.

He said a budget of about $180,000 was being considered, which would be $450 a year per business if divided equally between 400 businesses.

Ms Callender said focusing the boundary on the retail area and excluding the industrial area was one option being considered.

“We’d love to have them involved, but we will have to prove to them they will get value from being a part of it.”

However, a BID only focused on the east of Warkworth would significantly reduce the budget, viability and representation of the BID.

Following further consultation, the boundaries of the BID would be finalised and a budget and funding regime would be developed. A vote was likely to be held in November. If successful, the BID could be implemented in July next year.

Related document: Auckland Region Business Improvement Policy [PDF]