Business Improvement Area
Presentation - October 26, 2011
FAQs
1. What is a BIA?
A Business Improvement Area (BIA) is an area made up of commercial properties and managed by a Board of Managers. This is typically a group of local business owners which work together to improve the promotion and beautification of an area.
2. What can a BIA do?
A BIA is intended to improve business within the BIA area through beautification, promotion, advocating on behalf of it's members, and improving tourism. Some benefits include:
- The improvement of the physical environment, including parking, benches, flowers, planters, special street lighting, improved streetscapes, art and beautification projects.
- The marketing and promotion of the area as a business and shopping community. These marketing and promotion efforts can include organizing community events, public relations programs and advertising campaigns.
- Advocating on behalf of it's members at Council meetings, seminars, and public meetings.
3. Who pays for a BIA?
Any commercially assessed property within the Elmvale Settlement Area would contribute a levy which is based on their property assessment value.
4. How much would I pay?
The Elmvale BIA has proposed three possible levy methods.
- Assessment Based: Members would pay a rate of approximately 0.0132% of their property assessment.
- Assessment Based, with Minimum and Maximum Values: Members would pay a rate of approximately 0.0132% of their property assessment, with a minimum contribution of $150 and a maximum contribution of $1,250.
- Flat Rate: All members would pay an equal fee of approximately $300 per year.
The Steering Committee hopes to come to a consensus on levy method at the February 16, 2012 meeting.
5. What would my levy be paying for?
The Steering Committee is working towards a budget of between $20,000 and $25,000 for the first year. If the BIA is successful, the budget would support the goals of the BIA which are:
- Promotions, Events and Advertising (50%)
- Beautification of Elmvale (20%)
- Communication (20%)
- Administration-insurance, telephone, etc. (10%)
The above is merely a suggested allocation. A more detailed budget would be developed and prepared once the BIA is established by the Board of Directors and voted upon my members. The budget must then be submitted to the municipal council for approval.
6. What happens if a BIA is no longer wanted?
If the membership of a BIA wishes to dissolve the association, the municipality may repeal the by-law that established the BIA. All financial obligations of the BIA would be assumed by the municipality (If members owe outstanding levies the Township can assume the collection of these).
7. Who actually runs the BIA?
The BIA is managed by a Board of Management who may be voted upon by the membership, and appointed by the Municipal Council. The Board has general responsibilities, among others, to oversee the planning, budgeting, implementation and evaluation of BIA projects.
The BIA Steering Committee is a group of volunteers who are trying to establish the BIA. If the BIA is put in place this Committee will no longer exist, and will be replaced by a Board of Management/Board of Directors who will be voted into position by paying members.
8. Is there paid staff on the BIA?
The proposed budget does not include any paid staff members. Many successful BIA's begin with volunteers and once their mandate and budget grow, they find it is more time and cost efficient to hire a BIA manager. If or when a paid staff member is contemplated it would be raised through the budget process and voted upon by the membership.
9. How is the BIA budget collected?
The BIA does not levy taxes directly. The municipal council adds a special BIA levy to the property tax collected from property owners within the area and collects this on the BIA's behalf.
10. How can I object?
You will have the opportunity to object to the BIA once the Township of Springwater sends out formal notice of the BIA By-law. This Notice will clearly explain your rights and obligations. If your tenants will be expected to pay part/all of the levy they will also be entitled to notice. You as the property owner are required under the Municipal Act to provide the Township with contact information for your tenants within 30 days.
11. Is it true that if I don't object it's essentially a vote for the BIA?
Yes, the Municipal Act states that the Township can pass a by-law so long as no more than a third of the voting members representing a third of the total levies object. If you do not object, your vote is essentially a vote in favour of the BIA.
12. I'm a business owner, not the property owner what rights do I have?
As a business owner it is important you communicate your preference (for or against the BIA) with your landlord. If you will be responsible for all/portion of your levy your landlord MUST provide your contact information to the Township within 30 days as you are entitled to a notice and have the right to object.
If you would not be responsible for paying all/portion of the levy you would not have an opportunity to vote. If your landlord is not supportive of the BIA, and as a business owner you would like the BIA to be implemented, please remind your landlord of the many benefits a BIA would have for your business and in the long term on property values.
13. What is the Township's role in this project?
The Elmvale BIA was initiated and developed by local business leaders. As per the Municipal Act, the Township's role within a BIA is to provide support, statutory notices, execute applicable by-laws, registering objections, financial monitoring, altering boundaries, approving proposed Board of Director members and annual budgets.
14. What are the proposed boundaries of the BIA?
The BIA is proposed to encompass all properties currently assessed as commercial in the Elmvale Settlement Area. A Map defining this boundary can be seen below.
Other Sources
Province of Ontario - BIA Handbook 2010