ADMINISTRATIVE REPORT

TO:

Standing Committee on Planning and Environment

FROM:

Director of City Plans

SUBJECT:

Approval of Council Initiative - Proposed Victoria Drive BIA

 

RECOMMENDATION

GENERAL MANAGER'S COMMENTS

COUNCIL POLICY

Section 456 of the Vancouver Charter gives Council the authority to create a Business Improvement Area (BIA). Council may grant money to a BIA for planning and implementation of business promotion schemes provided that the money is recovered through a special property tax.

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. 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.

PURPOSE

The Victoria Drive Business Association (VDBA) has completed the first step in the process of establishing a new Business Improvement Area (BIA). The purpose of this report is to commence the second step, which is to approve the VDBA as sponsor of, and to commence a Council Initiative for, the proposed Victoria Drive BIA, and to forward the BIA application to the Court of Revision.

BACKGROUND

Victoria Drive is a diverse area with a mix of European, Asian, and Indo-Canadian businesses. The business district, roughly between E.33rd and E. 54th Avenues, is actually three commercial areas with several residential blocks between them. The main area, anchored by Victoria Square and London Drugs, centres around the intersection of Victoria and 41st. The second area centres on 49th Avenue, and the southernmost area is at 54th Avenue.

The Victoria Drive Business Association (VDBA) was founded in 1997 by a small group of merchants brought together by the South Vancouver Neighbourhood House (SVNH) as a community development initiative. The group hoped to improve the area's business vitality, improve its physical appearance, and address safety and security issues. It defines its mandate as promotion and marketing of the Victoria Drive as a commercial district, educating the public about businesses and services in the area, and consulting with the City and other levels of government to further positive development.

The VDBA first approached the City's BIA Coordinator in June 1998. In October 2001, the VDBA informed the City of its intention to sponsor a BIA application for the Victoria Drive area, although the group did not commence a BIA Outreach process until the spring/summer of 2002. The Outreach process was completed in October 2003.

The VDBA was incorporated as a non-profit society under the Society Act on July 29, 1997. If the Victoria Drive BIA is approved at the Court of Revision to be held February 3 2004, the VDBA will amend its Constitution and By-laws to conform with BIA requirements.

DISCUSSION

The proposed Victoria Drive BIA includes 17 commercial blocks of Victoria Drive between E. 32nd Ave. and Nassau Street (approx. E. 56th Ave.). A map of the proposed boundary is attached as Appendix A.

The VDBA proposes a Year 1 budget of $75,000.00, representing an annual levy rate of $0.82 per $1,000.00 of assessed property value, or approximately 2.9% of commercial property taxes. A copy of the proposed budget is attached for information as Appendix B. If Council approves the BIA 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 $625,000 is the maximum amount that may be levied over the proposed Victoria Drive BIA 5-year term.

Outreach Activities

In June 2000 and July 2001, the City's BIA Coordinator addressed the VDBA AGM explaining Business Improvement Areas and how they are established. Since Fall 2001, the Victoria Drive Business Association has been actively working toward the present BIA application. In June 2002, the VDBA began conducting outreach activities to commercial tenants and property owners, publicizing the BIA proposal through letters, notices, and general outreach meetings. Initial outreach included a June 2002 survey asking property owners and business tenants their issues and priorities . The survey and accompanying BIA information was translated into Chinese. Outreach materials were mailed to all property owners, and hand-delivered to all business tenants. Delivery to the tenants was done by VDBA directors in periodic `walkabouts', with the directors actively engaging business owners/managers where possible. Chinese-speaking directors explained the BIA proposal to business tenants not fluent in English. The proposed BIA was also the subject of articles in the June 1 and 22, 2000 and May 2002 issues of the East Side Review.

The June 2002 survey asked respondents whether or not they were `interested in the idea of a BIA for our area'. Of 18 responses, 13 (72%) replied `yes' and 5(28%) replied `no'. A survey of all business tenants was conducted in October 2003. Of 28 responses, 18 (64%) replied `yes', 3 (11%) replied `no', and 7 (25%) didn't know or required more information. Property-ownersurveys were mailed in November. As the VDBA is awaiting property owner responses, the results were not available at the time of this report. The VDBA hopes to forward the results to staff in time to report them orally to Council. Based on the survey results and their general outreach, the VDBA believes the BIA proposal is generally supported.

The Victoria Drive Business Association formally applied to the City for consideration of a BIA on November 18, 2003. A copy of their application letter and documentation of their outreach activities is attached as Appendix C.

Staff Comments - Outreach and Support

Staff are satisfied that the Victoria Drive Business Association has notified all property owners and tenants within the proposed BIA boundaries. Staff attended three general outreach meetings held in July 2002 at Victoria Drive Community Hall, June 2003 at the VPL Argyle Branch, and October 2003 at the South Vancouver CPC., at which approximately 45 people attended (in total), ranging from 12 to 24 at a meeting. Accounting for VDBA members, some of whom attended several meetings, around 30 non-members attended. None of the general outreach meetings attracted large numbers, but over the course of three meetings the VDBA was able to bring a range of people to the BIA discussions. Staff also addressed the December 2002 VDBA AGM and May 4 VDBA Fundraising Dinner, answering questions about the BIA Program. These events were well attended, with 50 -100 persons in attendance at each meeting.

Participants at the meetings seemed generally supportive, although a few participants expressed opposition or reservations. Some felt that taxes were already too high, and that the City, not the businesses, should be funding extra garbage pick up and street improvements. A few participants were sceptical that a BIA could address the areas security and parking issues. Others were concerned about BIA governance/accountability, and whether the business community could get locked into something it no longer wanted.

At one point during the Outreach period, an influential business person approached the BIA Coordinator expressing opposition to the proposed BIA on the basis that the BIA would not be effective in attracting shoppers and reducing vacancies, or that the benefits would only be felt in the blocks close to 41st Avenue. The BIA Coordinator encouraged the VDBA directors to initiate a dialogue, which resulted in key property owners and merchants meeting in mid-October with the VDBA directors to discuss costs and priorities. The result of the meeting was agreement to support BIA funding for a year, after which its effectiveness and continued funding would be reviewed. At the final outreach meeting on October 30, attended by some of the same property owners and business tenants, all participants appeared to support the BIA proposal.

As the response numbers for VDBA survey returns appear to be relatively low, the data is not highly reliable. The most recent business-tenant survey shows the level of support at around 65%, with 11% (3 businesses) opposed. It appears that about 25% of respondents were undecided, which adds some uncertainty as to what the ultimate level of opposition will be. Staff do not yet have current survey information for property owners, but hope to report the results orally to Council.

As of the date of this report, the VDBA has not been contacted by any property owner or business tenant expressing opposition to the proposed BIA, other than those referenced in this Report. At the instruction of staff, the VDBA notices contained the name and telephone number of the City's BIA Coordinator. As of the date of this report, the Coordinator has received one telephone call indicating opposition to the BIA.

CONCLUSION

The Victoria Drive Business Association is requesting that Council consider approval of the proposed Victoria Drive BIA and 5 year funding ceiling of $625,000, and has asked that their application be forwarded by way of Council Initiative, to a Court of Revision, in order that the BIA may commence operations in April 2004. The results of the VDBA's outreach activities indicate fairly strong merchant support and low opposition at this stage in the process, although 25% of merchants appear to be undecided. Staff are awaiting results of the property-owner survey, and will report those orally if available. If Council approves the Victoria Drive BIA 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