CBD landlords, tenants to vote on Business Improvement District for Timaru

Friday, 27 January 2023

Tania Macfarlane, second from left, chair of a Timaru CBD Group subcommittee advancing the Business Improvement District proposal, with CBD Group members, from left, Di Hay, Allan Booth (chair), Brent Birchfield, and Sue Harrex.

Timaru CBD owners and tenants will soon be asked whether a levy-funded collaborative scheme aiming to breathe more life into the CBD should proceed.

A Business Improvement District project, or BID as they are widely known, is being promoted as a potential winner for Timaru by a subcommittee of the Timaru CBD Group.

BID subcommittee chair Tania Macfarlane says a BID provides a “connected CBD” community.

“So people are set up and supported for success. We want to ensure that businesses can ask for help. Continuous networking, mentoring programmes and business support and agency partnerships are all on the list.”

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The CBD Group has pushed the BID initiative since 2017, following public consultation by Venture Timaru with the Timaru District Council which added the proposal to its Long Term Plan in 2021.

Crowds at the Downtown Timaru Twilight Market last November.

Since being developed in Canada, BIDs have been adopted by business districts around the world. Auckland, has 50.

The purpose of BIDs has business owners and stakeholders collaborating to enhance their areas with marketing, promotional events, campaigns, security patrols, networking events, lobbying the council, branding and other activities.

“It has not been a knee-jerk reaction to tough times or recent perceived competition from the Showgrounds,” Macfarlane says.

“This is a proactive approach to giving the BID community a vehicle to have a voice and input into their representation and success.”

In coming weeks, those who own or rent spaces in downtown Timaru will be asked to consider whether they want a BID here.

The BID subcommittee needs a voter turnout of just 25% of the roughly 200 people eligible to cast a vote, and only 50% support from that 25% to get it across the line.

That means 12.5%, or around 25 votes, are needed to be cast in support of the BID for one to be established.

However, a BID comes with a price tag. A levy would be imposed.

“Finalisation of the levy will be confirmed at the next CBD group meeting and will be available prior to voting taking place,” Macfarlane says.

“We have met with some key building owners in order to establish what a fair and reasonable levy looks like.

“It is important that we get the balance of delivering a return on investment to the business operator and ensuring it is still cost-effective to do business in the CBD.

“The Timaru District Council set out levy charge models and at this stage we are looking to adopt the hybrid model.

A Matariki Night Market, held in Stafford St in July 2022, drew a huge number of people into the CBD.

“From there, any landlord or tenant in the area designated as being covered by the BID would see the additional targetted rate added to their rates.”

Owner of Replenish Cafe in Stafford St, Malcolm Burns says he did not know of the proposal but is keen to learn more.

“It sounds pretty good. Any collaboration is a good thing and everyone can be on the same page.”

He is not fazed by the possibility of having to pay a levy or rate, but is keen that now the proposal has been made public, action follows.

“I’ve heard of this sort of thing over the years, not just here but in other places. It’s a matter of getting it done rather than talking about it.”

The BID subcommittee believes the possible benefits far outweigh the few hundred dollars it would cost each business.

If the plan proceeds, the Timaru BID would be officially aligned with the council to channel funds directly from rates to the programme. The subcommittee hopes the council could offer to match any funds put in by ratepayers.

The proposed BID area stretches from the Bay Hill through Stafford St up to North St and includes some surrounding areas.

Business Improvement Districts were first developed in Canada to help better connect communities – soon CBD landlords and tenants in Timaru will be asked to consider whether they want one established in the town.

“We want to ensure that the area can be supported and that we have resources to deliver value to all businesses in the defined area,” Macfarlane says.

“Shaun Stockman owns a number of properties in our CBD area and throughout Canterbury. He is familiar with BIDs and has seen first hand how successful they can be.”

If a BID is approved, Macfarlane says the first step would be to develop a strategic plan.

Visitors plan their day in Timaru after arriving on the Noordam cruise ship on Sunday morning.

“Promoting the CBD is key and this is where most of the spend is focused. Initially a detailed marketing plan must be adopted with a focus to deliver value to businesses, building owners and customers.

“We have specific plans around branding, website, continuous, diverse and timely promotional activity and events that must align to this marketing plan.”

McFarlane says the CBD group is disappointed a hotel development opposite the Theatre Royal is not going ahead.

This week Timaru District Holdings Ltd (TDHL) announced Timaru company Thompson Engineering & Construction Ltd has decided not to go ahead with a plan to build a hotel opposite the Theatre Royal.

In July 2022, TDHL sold the 2000sqm site, which included the former Majestic Theatre, to the company for $360,000.

With the deal collapsing, TDHL has bought back the properties for the original sale price.

“A project like that would have added significant value to that end of town and been a drawcard for others to choose to do business down that end too, McFarlane says.

“The south end of town is included in our BID area. We identified this area as being one that hasn’t received a lot of exposure or promotion previously, including events we have run in the past, but we are committing to seeing that change and have already discussed ideas about how we include it, for example in Matariki.”

CBD Group chair Allan Booth, also a Timaru District councillor, says the BID is an opportunity to boost the south end.

“Our urban designers have identified this part of town for a transition to inner city living with a mix of apartments, cafes and retail.

“Council should lead by example.”

The BID voting dates have yet to be decided.

“We are on track to go to vote early March and the exact dates will be confirmed over the next few weeks,” Macfarlane says.

“We want to ensure we have given everyone in the BID area an opportunity to provide feedback as part of our consultation.

“We need to ensure our process has been robust, is supported, and meets council’s guidelines set out in the BID policy.”