ADMINISTRATIVE REPORT

TO:

Standing Committee on Planning and Environment

FROM:

Director of City Plans

SUBJECT:

Approval of Council Initiative - Davie Village BIA Renewal

 

RECOMMENDATION

*change of society name to `Davie Village Business Improvement Association' pending.

GENERAL MANAGER'S COMMENTS

COUNCIL POLICY

Council policy for the renewal of a BIA was approved on July 30, 1992 as follows:

A BIA is renewed (re-established) by Council Initiative process; property owners and commercial tenants receive notification of the Initiative. The renewal will not be approved 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. An outline of the process is attached as Appendix A.

Section 462 of the Vancouver Charter was amended on September 23, 1998 to permit BIA renewal terms of up to 20 years. Council has exercised its authority under the amendment by approving ten year renewal terms for the Mount Pleasant and Downtown Vancouver BIAs.

PURPOSE

The Davie Village BIA was approved in 1999 for an initial 5-year term which expires March 31, 2004. The BIA must now be re-established (renewed) for a further term to continue to operate. The Davie Village Business Association (DVBA) has completed the first step in the BIA renewal process. The purpose of this report is to commence the second step, which is to re-confirm the DVBA as BIA sponsor, to approve a Council Initiative to renew the BIA, to forward the renewal application to the Court of Revision, and to approve the proposed 5 year funding ceiling.

BACKGROUND

The Davie Village BIA was one of the first three BIAs established under the Council Initiative process in 1999, along with the South Granville and Yaletown BIAs. The Davie Village Business Association wishes to renew the BIA for a second 5 year term (April 1, 2004 - March 31, 2009). No boundary changes are proposed at this time.

DISCUSSION

The BIA boundary comprises the four blocks of Davie Street between Burrard, on the east, and Broughton, on the west, including commercial properties on the north side of Burnaby Street. A map of the boundary is attached as Appendix A.

The DVBA proposes a Year 1 renewal budget of $120,100.00, representing an annual levy rate of $1.26 per $1,000.00 of assessed property value. A copy of the proposed budget is attached for information as Appendix B. If Council approves the Davie Village BIA renewal at the Court of Revision, staff will report back for approval of the Year 1 budget along with all of the other BIAs' 2004 - 2005 budget requests.

The proposed funding-ceiling of $800,000 is the maximum amount that may be levied over the Davie Village BIA renewal term, and reflects an increase of 33.3% over the previous 5 year ceiling.

Membership Outreach Activities

Outreach to the BIA membership commenced in September 2003 with distribution of a special BIA renewal edition of the `Davie Express' Newsletter to all property owners and business tenants. The Newsletter explains the BIA funding and renewal mechanism, provides background information about the BIA and its history, outlines past activities and funding levels, proposes a 2004-2009 funding ceiling and allocation, and indicates upcoming renewal feedback activities.

Concurrent with the Newsletter, a survey was mailed to all 46 commercial property owners and hand-delivered to approximately 120 business tenants within the BIA. The survey asked recipients to priorize existing DVBA activities, provide input on BIA issues, and rank priorities for the renewal term. A total of 21 responses were received, all from business tenants (18% of businesses). There were no property-owner responses. In answer to the question `Do you support the renewal of the DVBA?', all 21 respondents (100%) answered `yes'.

On September 17 2003, the DVBA held an informal public meeting to discuss renewal issues. The meeting notice was hand delivered to all business tenants and mailed to all property owners. Fourteen people attended, including 5 DVBA Directors and staff person, 3 non-Director businesses, 4 area residents, a consultant to the BIA, and the City's BIA Coordinator, who explained the renewal process. A draft renewal proposal, including a Year1 budget and 5-year funding ceiling was circulated. After discussion, a motion to increase the draft ceiling by $200,000 (to $800,000), and to increase the draft Year 1 budget by $25,000 (to $120,100) was carried, with one dissenting. The dissenting vote did not express opposition to BIA renewal.

In early September, the DVBA formally notified all of the property owners and tenants of its upcoming September annual general meeting (AGM). A total of 21 voting members (13% of total property owners and business tenants) attended in person or voted by proxy, including 2 property owners (4% of total) and 19 business tenants (16% of total). The proposed BIA renewal was approved unanimously. The proposed 5-year funding ceiling and Year 1 renewal budget were both approved with one abstention.

The upcoming Winter 2003 edition of the Davie Express will report the results of the AGM and outline why the membership approved funding ceiling and budget amounts higher than those in put forward in the September edition.

Based on the AGM results and member input received to date, the DVBA believes that the 2004-2009 renewal proposal, the proposed 5-year funding ceiling, and the Year-1 budget are generally supported. The DVBA formally applied to the City for renewal of its mandate on November 17, 2003. A copy of their application letter, a further letter outlining their outreach process, and documentation of their outreach material, is attached as Appendix C.

Staff Comments - Membership Outreach and Support

Staff are satisfied that the DVBA has notified all commercial property owners and tenants within the proposed renewal area. For its membership survey, the DVBA was able to generate a reasonable rate of return from business tenants (18%), with business responses indicating a 100% approval rating for the BIA. Unfortunately, as no property-owner responses were received, staff are unable to provide an indication of landlord support or opposition. Support from business tenants appears to be confirmed by the unanimous renewal vote at the Annual General Meeting. Although only about 18% of BIA property owners and businesses were represented at the meeting, the required quorum of 15 present in person was achieved. While low AGM attendance is a challenge for many BIAs, the AGM results would carry greater weight if attendance had been better, particularly as only two property owners were represented.

The DVBA reports that, as of the date of this report, no property owners or businesses have contacted the BIA to express opposition to the renewal proposal. Staff have received no telephone calls or correspondence from individuals expressing opposition or concern regarding the renewal proposal; however, the City's BIA Coordinator was not listed as a contact in the DVBA's literature

CONCLUSIONS

The Davie Village Business Association is requesting that Council consider approval of its proposed 5 year renewal term and 5 year funding ceiling of $800,000, and has asked that their application be forwarded by way of Council Initiative to a Court of Revision. The results of DVBA outreach activities indicate no opposition at this stage in the process. If Council approves the Davie Village BIA renewal at the Court of Revision, staff will report back for approval of the Year 1 budget along with all of the other BIAs' 2004 - 2005 budget requests.

APPENDICES FOR THIS REPORT ARE AVAILABLE FOR VIEWING IN CITY CLERK'S OFFICE OR COUNCILLORS' SECRETARIAT.

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© 2002 City of Vancouver