Why do businesses support BIDs?
A BID is a mechanism which allows businesses to raise a sum of money to manage and deliver projects that they have identified to improve their trading environment.
How is a BID managed?
The majority of successful BIDs are delivered through a company limited by guarantee. The BID Company is responsible for the delivery of the BID projects and services and directly responsible to all businesses through a board elected from those businesses that pay the BID levy.
How is a BID monitored?
Like any good business plan, specific key performance indicators (KPI’s) are set and performance is monitored against the KPI’s by the BID board. The BID Company is answerable to the businesses that pay the BID levy and will be required to monitor and inform its members on its progress.
Who pays for a BID?
Based on the detailed business plan put together by the Task Group, the cost to each business is worked out on a pro rata basis. This is called the “BID Levy”. If the majority of businesses vote YES then ALL within the BID area have to pay. The BID levy is normally paid by the occupiers of a property. In addition BIDs can draw in other voluntary funding, grants and in-kind contributions to supplement the BID levy. The successful BID has a mandate for a maximum of 5 years after which the BID would need to seek a re-ballot.
How does Kidderminster become a BID?
Normally a “BID Task Group” is set up which is responsible for putting together a detailed business plan setting out the projects it aims to deliver on behalf of the businesses in the BID area. This is based on a detailed consultation process with businesses. A confidential postal vote is held, all the businesses that would pay the BID levy get a vote. To become a BID a majority of those that vote must be in favor by number and rateable value.