ADMINISTRATIVE REPORT

Date: November 28, 2001
Author/Local: P. Vaisbord/604-873-6304

RTS No. 02438

CC File No. 8303

P&E: December 13, 2001

TO:	Standing Committee on Planning and Environment
FROM:	Director of City Plans
SUBJECT:	Approval of Council Initiative - South Granville BIA Funding Ceiling Increase

RECOMMENDATION

A. THAT Council approve the commencement of a Council Initiative to increase the South Granville BIA funding ceiling from $880,000 to $1,440,000 for the balance of its current 5-year term; and

B. THAT Council forward the application of the South Granville Business Improvement Association to a hearing of the Court of Revision, AND THAT the City notify property owners and tenants within the area (outlined as Appendix A) of the proposed funding ceiling increase.

GENERAL MANAGER'S COMMENTS

The General Manager of Community Services recommends APPROVAL of the foregoing.

COUNCIL POLICY

Council approves a `funding ceiling' as part of the process for establishing a BIA. The funding ceiling establishes a maximum dollar amount that may be levied over the approved BIA term. If the BIA is renewed for a further term, Council approves a new funding ceiling.

Council policy with respect to the establishment of a BIA was approved on October 14, 1997 as follows:

A BIA may be established by Council Initiative; property owners and commercial tenants receive notification of the Initiative, and the BIA will not proceed if one-third or more of the owners representing one-third of the assessed property value, or one-third of the tenants, counted separately, are in opposition.

There is no specific Council policy regarding mid-term funding-ceiling increases but, in December 1998, for the Kerrisdale BIA, Council approved a combined mid-term expansion and mid-term funding ceiling increase. The combined application proceeded by way of Council Initiative, by analogy with BIA formation and renewal.

PURPOSE

The South Granville Business Improvement Association (SGBIA) has completed the first step in the process of raising its funding ceiling. The purpose of this report is to commence the second step, which is to approve a Council Initiative to increase the BIA funding ceiling, and to forward the application to the Court of Revision.

BACKGROUND

The South Granville BIA comprises 11 blocks of Granville Street between West 5th Avenue, at its north end, and West 16th Avenue on the south. A map of the boundary is attached as Appendix A.

The BIA was one of the initial three BIAs established under the Council Initiative process in April 1999. Council approved a funding ceiling of $880,000 over a 5-year term (April 1, 1999 to March 31, 2004). The BIA is currently in the third year of its 5-year mandate.

DISCUSSION

Over its first three years, the South Granville BIA has allocated annual BIA levies totalling $777,000. Under the present funding ceiling, the remaining balance which may be levied over the last two years of its term is $103,000. This will only carry the BIA part way through its next fiscal year (year-4), after which the BIA would effectively cease operations. Therefore, the South Granville Business Improvement Association (SGBIA) wishes to increase its BIA funding ceiling by $560,000, to a new total of $1,440,000, to enable it to complete its 5-year term at or near current expenditure levels.

The SGBIA proposes a year-4 levy of $305,150, representing an annual levy rate of $1.43 per $1,000 of assessed property value. A copy of the proposed budget is attached for information as Appendix B. In the event that Council approves the increased funding ceiling at the Court of Revision, staff will report back for approval of the year-4 budget along with all of the other BIAs' 2002 - 2003 budget requests.

The revised 5-year budget plan is attached as Appendix C. The proposed funding-ceiling of $1,440,000 is the sum of the previous annual budgets for years 1 - 3, plus the projected annual budgets for the final two years of its mandate.

Membership Outreach Activities

Outreach to the BIA membership commenced in May, 2001 with a letter and survey asking members to prioritize BIA programs and activities. The tabulated survey responses and the proposed funding-ceiling increase were featured in a July newsletter-format mailout distributed to every property owner and business within the BIA. The mailout included notice of an informal Open House to discuss the funding-ceiling proposal.

The Open House was held July 24, 2001. Twenty-six people attended, including 6 SGBIA directors and staff. The event included a "question and answer" session. A show of hands at the conclusion of the session indicated majority support for the draft proposal, with a couple of persons opposing.

As required in its by-laws, the SGBIA published official notice of its AGM in a local newspaper (July 29th and August 1st issues of the Vancouver Courier). In late July, AGM notices were sent to each property owner and business. The notice stated that a vote would be taken on whether or not the BIA funding ceiling should be increased.

The August 2001 SGBIA Newsletter, distributed to all businesses and property owners, featured a two page article on the proposed funding-ceiling increase, as well as a reminder notice of the upcoming September AGM. The funding-ceiling was also discussed at length in the Annual Report distributed late August, 2001.

At its AGM, held September 27, 2001, the membership of the SGBIA approved the funding-ceiling increase, with only one vote in opposition. 37 voting members and 50 proxies (60% of total SGBIA voting membership) were registered, including 15 property owners and 72 business tenants.

In late October, a second survey was sent to all 442 affected parties within the BIA (77 property owners and 365 tenants). The purpose of the second survey was to reach SGBIA members who did not register to vote at the AGM, and others within the BIA boundary who might not have applied for membership in the SGBIA. The survey asked recipients whether or not they supported the proposed funding-ceiling increase. A total of 58 responses was received (13% of total), including 17 property owners (22% of owners) and 41 businesses (11% of businesses). The property owner responses were: 15 (88%) support; 2 (12%) opposed. The business owner responses were: 33 (80%) support; 5 (12%) opposed; and 3 (7%) don't know.

Based on the AGM results and member input received to date, the SGBIA is confident that the proposed funding-ceiling increase is generally supported. The SGBIA formally applied to the City for a funding-ceiling increase on November 22, 2001. A copy of their application letter and documentation of their outreach material, is attached as Appendix D.

Staff Comments - Membership Outreach and Support

Staff are satisfied that the SGBIA has notified all commercial property owners and tenants within the BIA boundaries. As close to 60% of the SGBIA voting membership attended the AGM in person or by proxy, the positive AGM results carry significant weight; however, AGM results do not necessarily reflect the actual level of opposition, because opposing individuals might choose not attend the AGM or become members of the BIA Society. A more accurate indication of opposition is provided by the October survey. The survey was delivered to all property owners and merchants, generated reasonable response rates, and indicated 12% and 14% opposition among property owners and businesses respectively. Based on the AGM and survey results, opposition to the proposed funding-ceiling increase appears to be in the low-moderate range at this stage of the process.

The SGBIA advises that, as of the date of this report, four additional businesses have contacted the BIA to express opposition to the proposed funding-ceiling increase. Staff have received no telephone calls or correspondence from individuals expressing opposition or concern regarding the funding-ceiling proposal; however, the City's BIA Coordinator was not listed as a contact in the SGBIA's literature.

CONCLUSIONS

The South Granville Business Improvement Association is requesting that Council consider approval of its proposed funding ceiling increase from $880,000 to $1,440,000. The SGBIA believes the proposed increase is generally supported. As the results of SGBIA outreach activities indicate low-moderate opposition at this stage in the process, staff recommend that their application be forwarded by way of Council Initiative to a Court of Revision.

ATTACHMENTS THAT DO NOT HAVE ELECTRONIC COPY ARE AVAILABLE ON FILE IN THE CITY CLERK'S OFFICE

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