Bids

What is a Business Improvement District?

A Business Improvement District (BID) delivers a sustainable financial model to a defined geographical area of a town, city, commercial district or tourism and visitor area, where businesses have voted to invest collectively in local improvements in addition to those delivered by statutory authorities. They are often, although not exclusively, a partnership arrangement through which the local business community and the statutory authorities can take forward projects which will benefit the local economy.

A BID is not a substitute for central or local government investment, but an additional investment to strengthen the local economy and give local businesses a unified voice, helping to provide an arena for businesses and local authorities to increase their understanding of each others priorities.

Before agreeing to fund the additional investment the businesses within the proposed BID area will determine the issues and decide how their money will be spent and how much they are prepared to pay. The Business Plan produced should include performance guarantees, a management structure and a delivery mechanism.

BIDs are developed, managed and paid for by the business sector by means of a compulsory BID levy which the businesses within the proposed BID area must vote in favour of before the BID can be established. Each business liable to contribute to the BID will be able to vote on whether or not the BID goes ahead.

The interests of both large and small businesses are protected through a voting system that requires a majority in the numerical votes cast and the rateable value of votes cast.

Borne out of Town Centre Management Partnerships (TCMPs), the concept was originally set up in Canada but took off in the US in the late 1970s. The BID concept has proved successful in growing the local economy and helping to maintain and improve the asset value.

A BID can last for no more than five years, and will either be dissolved at the end of its term or will seek a new mandate and term.

The first pathfinder BIDs in Scotland were, Bathgate (town centre), Clackmannanshire Business Parks, Edinburgh (city centre), Falkirk (town centre), Glasgow (city centre) and Inverness (city centre). Details of the ballots held so far can be found at BIDS Scotland Ballot Results.