Australia's legislative structure differs from the US models that foster establishing Business Improvement Districts. But there is one BID-like organisation in Australia that emulates the best features of American BIDS - Canberra CBD Limited - an organisation that City Marketing helped establish.
In 2007 we were contracted by the ACT Government (Canberra Central Program) to facilitate an extensive series of workshops and meetings between the government, the Property Council of Australia, and Canberra City Heart Business Association, to determine the level of private sector support for a special rate levy and define the means by which such a levy could be administered within the ACT.
Although all parties were interested, to some extent, in introducing a Business Improvement District Style (BID) scheme to the Canberra CBD, there were considerable differences of opinion about the particular mechanics of how such a scheme should be funded, could operate and should be measured.
We conducted national and international research and analysis to develop a range of comparative models for discussion.
We negotiated with the Property Council of Australia, Canberra City Heart Business Association, ACT Planning Authority, ACT Treasury, and ACT Government legal advisers.
We developed a budget structure to enable analysis of the amount of levy required for an effective scheme, and recommended the company structure (composition and representation which was ultimately adopted by Canberra CBD Limited.
We developed marketing material to assist government and these business champions communicate the scheme to other stakeholders.
Although the ACT Government finally determined that it was not within its current legislative framework to levy businesses and fully fund a private sector BID-like company, it did decide to raise the levy and ‘gift’ the funding back to private sector by way of a five year grant.
At the same time, the Property Council and Canberra City Heart Business Association formed Canberra CBD Limited, a special purpose company limited by guarantee.
We were contracted by this company to develop its proposal to the ACT Government to win the competitive grant of the City Centre Marketing and Improvement Levy. Our 5 year Strategic Plan for Canberra CBD Limited was successful.
In 2007/2008, the company was funded $1.5M for its first full year of operation. During its first three months of operation, we assisted Canberra CBD Limited fulfill its grant obligations, including its obligation to recruit and appoint a full time CEO. Canberra CBD Limited is still delivering and reporting against our 5 year Strategic Plan.
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