Building Business Together Forming a Stittsville BIA Presentation to Stittsville Business Group March 26, 2009

2 What are BIAs? Business Improvement Areas or BIAs are established when local business property owners and their tenants join together to undertake initiatives to improve, promote and strengthen their business district or main street With the City’s support, BIAs establish a Board of Management, various committees as required, retain dedicated staff; and collect and spend funds on priority activities, such as: –Communication: Issue Management, Representation, Info- sharing –Physical Improvements: Streetscaping, Façade improvements –Economic Development: Advertising, Promotions, Business Attraction

3 Ottawa’s BIAs Ottawa has fifteen (15) existing BIAs: Carp, Manotick, Barrhaven, Westboro Village, Somerset Village, Preston Street, Bank Street Promenade, Glebe, Sparks Street Mall, Somerset Street Chinatown, Downtown Rideau, ByWard Market, Vanier, Wellington West and The Heart of Orléans All Ottawa BIAs unique in nature and priorities –Number of members range from –Annual budgets range from $10,500 - $700,000 –Staffing ranges from 1–3 full/part time staff; and include some contract services –Priorities vary: marketing, special events, improvements –Westboro Village is known for robust retail niches (active living, décor) and Westfest concert event –Preston Street is known as ‘Little Italy’ and for its gateway arch and seasonal decorations; and Italian Week events –Vanier is known for its historical mural program and Sugarfest event

4 How is a BIA managed? A Board of Management is formed, comprised of property owners and business operators –One member of Council Board nominated at an Annual General Meeting Approved by City Council Board develops budgets, sets priorities, implements capital improvements, plans events, and promotes business area

5 How is a BIA funded? BIA budgets are funded by a special levy collected by the City in the defined geographic area This levy is not a tax! –The BIA Board develops the budget, which determines levy –100% of money collected by City goes to the BIA

6 How is the Levy Calculated? $500,000 x $100,000 = $1,000 $50,000,000 Assessed Property Value Assessed Value for Entire BIA Annual Budget for BIA Annual Levy (paid as part of property taxes)

7 Who Pays? Example: Commercial Building: 4,000 sq. ft.; BIA levy = $800/yr Retail Storefront: 2,000 sq. ft. BIA levy = $400/yr. Retail Storefront: 1,000 sq. ft. BIA levy = $200/yr. Retail Storefront: 1,000 sq. ft. BIA levy = $200/yr.

8 Who Pays? Property owner is responsible for paying levy to the Municipality –Unless stated otherwise in the lease, landlord will charge the BIA levy to the tenant, based on same method of calculating share of property tax

9 Stittsville BIA Scenarios

10 Benefits of a Stittsville BIA Secure source of funding Credibility – BIAs governed by provincial legislation and approved by City Council Direct and effective line of communication to City Hall Dedicated resource and working committees –Marketing, physical improvements, seasonal events

11 Stittsville BIA Formation – Next Steps Establish a Steering Committee Establish BIA Boundaries –Recommend boundaries that will capture current and future business properties and tenants benefiting from a Business Improvement Area Establish BIA Priorities –Physical improvements –Business retention and attraction –Advertising and Promotions –Special Events Establish BIA Budget based on priorities

12 Proposed Stittsville BIA

13 Stittsville BIA Formation – Next Steps Secure support of property owners and tenants –Distribute information flyer and proactively promote BIA to all potential BIA members on business to business basis –Hold information meetings with all potential members

14 Stittsville BIA Formation – Next Steps If sufficient support for the formation of a BIA, the Steering Committee sends a letter to the City Clerk requesting that notice be sent to all business property owners within the proposed BIA Within 30 days of mailing, owners must provide a copy to each tenant required to pay taxes on the property After 60 days, if signed objections received from 1/3 of potential members representing at least 1/3 of business property taxes levied in the area, City cannot pass a by- laws designating the BIA

15 For more information, please contact: Chris Cope ext