The Brompton Road Business Improvement District A Feasibility Study The Brompton Road is an important shopping street in the heart of London, however in recent years its sparkle and lure has steadily deteriorated. The time has come for a strategic approach to be taken towards the management, planning and licensing of the area and to its retail landscape, one that involves a collective approach from all key stakeholders. Following a meeting to discuss the future of the Brompton Road, attended by landlords, occupiers, residents and representatives of the local authorities, Cadogan commissioned Davout and GJR to undertake this feasibility study to explore the issues in more depth and to examine the case for establishing a Business Improvement District as a vehicle for change and improvement. Having sought the thoughts and appetite of business and wider stakeholders and undertaken a technical review, the study suggests that the establishment of a Business Improvement District (BID) for Brompton Road is both viable and feasible, if approached in a considered and strategic manner.
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Executive Summary A strategic appraisal Current Position By common consent the Brompton Road district is in decline. The Knightsbridge international centre does not look or feel like an international centre. The flagship stores of Harrods and Harvey Nichols and the high-end stores on Sloane Street feel like islands in an area dominated by the four lane A4, and its environmental and pedestrian challenges, each of which also affects adjacent residential areas. The Brompton Road is a barrier that creates a boundary between its north and south side and between the Royal Borough of Kensington and Chelsea and the City of Westminster. A significant part of the north side has developed a monoculture of cafes, many shisha, which attract large crowds in the evenings whose presence block pavements and disturbs local residents. In many cases the cafes have replaced shops, restaurants and other local amenities for visitors, shoppers and residents. The Knightsbridge International Centre is competing against both traditional and new global retail centres, many of which are investing significantly in their growth. More immediately, the other International Centre of the West End is witnessing large scale investment in public realm and traffic reduction as it prepares for the opening of the Elizabeth Line. This will set a higher level of customer expectation to which the Knightsbridge and Brompton Road must respond if it is to continue to attract domestic and international visitors and investment. The Opportunity Knightsbridge cannot afford to stand still. There is no status quo option and without a collective focus and further investment the area will continue to decline. Positive action is required if this decline is to be halted and reversed. The situation is not helped by the district being on the edge of two local authority areas which reduces and focus on its future. Stakeholder interviews carried out as part of this study have reinforced these views of the Brompton Road district. Stakeholders have been largely united in their desire for a strong strategic vision for the district based upon a mix of high-end luxury retail and a revival of local shops and restaurants together with enhanced public realm to make a more pleasant pedestrian experience. The key is determining what visitors the International Centre wishes to attract and curating, through planning, licencing and other means, an environment that appeals predominantly to them. While recognising difficulties such as multiple ownership, current market trends in retailing, and restrictions imposed by the planning and licencing policies of the two different local authorities, this report recommends that the priority should be to develop a strategic vision that meets the largely complementary aspirations of the district’s various communities. A strategic vision will help to guide local policy and investment decisions to enhance, over time, the district’s appeal as part of the International Centre.
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The report recommends the formation of a Business Improvement District as a local and focussed vehicle to drive delivery of the vision in partnership with the two councils, TfL and local community organisations. To speed-up the process, a twin track approach is suggested with a local body established immediately to commission and fund a strategic study at the same time as the formal and informal elements of establishing a BID are undertaken.
Establishing a Business Improvement District Rationale The current operating environment is challenging. High street trading has been under pressure for a prolonged period and, with the resulting pressure on the retail cost base, Business Improvement Districts have come under increasing focus, both from an affordability and delivery perspective. At the same time it would seem that there is no better time to establish a business focused group to collaborate and use a collective platform to enhance the trading environment, facilitate a strategic vision for the area and provide a unified voice in communicating and working with the residential community and statutory authorities. A co-ordinated Brompton Road would provide an opportunity for securing a more aligned approach across the Royal Borough of Kensington and Chelsea and Westminster City Council who share the area geographically. A ‘cross border’ BID would help facilitate a more joined-up approach to the areas management, licencing and planning. Set within a hinterland of international renown, Brompton Road presents itself geographically as a linear BID opportunity akin to many of the Manhattan BIDs in New York and indeed Oxford Street and Regent Street in the West End of London. A Brompton Road BID would embrace in the region of 250 members. Data collection and analysis An analysis of rateable values in the emerging geographical footprint, and applying appropriate BID levy rules, would suggest an operational budget can be achievable through the BID mechanism which would be sufficient to deliver services sought by business and wider stakeholders. This utilising a BID levy benchmark within the sector of 1% of rateable value and a possible cap incorporated within the BID rules. A sample of retailers interviewed along the Brompton Road have in general support the further investigation towards the establishment of a BID. Many acknowledged the value of a collective voice and enhanced investment into environment and street management activities. Experience with other BIDs, particularly in central London, has shown that success in transforming an area depends on the approval and support of all the different communities within the district. While there are occasionally matters that divide opinions, on the vast majority of issues most parts of the community are in agreement. Halting decline and improving a district, if managed sensitively to take account of the ambitions and requirements of each community, enhances both the lives of residents and the prosperity of business.
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Property BID Linking the strategic intent to the establishment of a Business Improvement District may lend itself to a combined approach of exploring a Property BID to sit alongside the Occupier BID. This model, which is currently in place in the West End of London at New West End Company and Heart of London, has clear advantages of aligning the property and occupier agendas and generating an additional funding stream similar to that of the occupier BID. Embarking upon the programme outlined in this report would potentially see the establishment of a Business Improvement District for Brompton Road by Spring 2021.
1. Background The need to plan for the successful future of the Brompton Road district. The Brompton Road forms the heart of a shopping district designated, along with the West End, as one of just two International Centres in the London Plan. Anchored by two world renowned stores – Harrods and Harvey Nichols – the Knightsbridge International Centre is a draw for millions of domestic and international visitors each year. The commercial success of the district has positive knock-on effect for neighbouring shopping streets, nearby museums and cultural centres and, of course, residents. But a district with elements of declining commercial activity, deteriorating public realm, and management problems that result in streets that feel unclean, unsafe and with increasing anti-social behaviour becomes a less attractive place in which to live, visit and work. Beyond the major stores the area does not have the look and feel of a world class district. It is unlikely, having been drawn to the them, that visitors will spend significant time in the surrounding areas. This is damaging to the long-term viability of the area and, if not addressed, the International Centre may find its attractiveness to visitors and investors falling behind its national and international competitors. Nationally and globally retailing is facing structural changes, with evolving consumer trends, the growth of internet shopping and the rise of new international shopping destinations, all of which impact on the performance of Knightsbridge as an International Centre. Consumers no longer see shopping as a monoculture activity. To compete with alternative locations and internet shopping, traditional retail districts have constantly to offer a wider and better experience to encourage consumers to visit, stay longer and return more often. Globally, traditional competitor districts are investing heavily in public realm and infrastructure improvements. Paris, for example, is currently investing ₏500 million in enhancing the Champs Elysees. In addition, new competitors are now appearing, particularly in the Middle East and the Far East. The huge investment being made in shopping malls, such as Dubai, and the establishment of a presence by world leading museums, such as the Louvre and the Hermitage, to create a wider experience shows how some Middle Eastern countries are developing international retail as an alternative to their declining oil economies.
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And more locally the opening of the Elizabeth Line stations in the West End in 2020, together with associated multi-million pound traffic reduction and public realm improvements schemes, will set a higher level of customer expectation to which the Knightsbridge International Centre must respond if it is to continue to attract domestic and international visitors and investment. In short, at a time when The Brompton Road district cannot afford to stand still, the current lack of a coordinated vision and plan for the district risks its continued deterioration to the detriment of its landowners, businesses and residents.
The West End International Centre – a comparison Knightsbridge and The West End are the two International Centres defined in the Mayor’s London Plan. They are deemed to draw international interest from visitors, investors and businesses. Yet while they share this designation the difference between the investment and development of each is startling and can only lead to a relative decline in the standing and attraction of Knightsbridge. The imminent opening of the £16+ billion Elizabeth line has been the catalyst for massive public and private sector investment. When operating fully it will generate over 60 million additional visits each year, on top of the current 200 million annual visits. In preparation for this there have been, and are planned, major changes and investment in the transport system and public realm. Traffic in the West End is being drastically reduced, with over 60% of bus routes removed and more planned. Consolidated freight delivery and waste collection have cut the number of large vehicles in the area. Significant additional pedestrian space is being created with the recently completed £10 million upgrade of Bond Street, a planned £230 million transformation of the Oxford Street district agreed by Westminster City Council and proposals to create up to 40% additional pedestrian space on Hanover Square. A comprehensive street management programme is being designed to maintain world class standards. This public sector investment is being matched by huge private sector developments, led by The Crown Estates’ £1.2+ billion regeneration of Regent Street and significant new developments on East Oxford Street and around Tottenham Court Road station.
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2.
Research Findings
As an integral part of this study we have interviewed 83 key stakeholders and retailers within the potential BID area to seek their views on the district, their aspirations for the future and their thoughts on establishing a BID. Our experience with other BIDs, particularly in central London, has shown that success in transforming an area depends on the approval and support of all the different communities within the district. While there are occasionally matters that divide opinions, on the vast majority of issues – from an agreed vision to establishing priorities and on specific proposals – most parts of the community are in agreement. We want to focus on those areas of agreement. Halting decline and improving a district, if managed sensitively to take account of the ambitions and requirements of each community, enhances the lives of residents and the prosperity of businesses. Stakeholder view The study has been informed by 31 interviews with local stakeholders drawn from resident and amenity societies, local councillors, major owners and major institutions in neighbouring areas. The full list of interviewees and their (anonymised) comments are included as appendix A & B. In this section we highlight the main issues raised. Current state of the Brompton Road • • • • • • • •
The district is in noticeable decline. It is feeling tatty and shabby. It doesn’t feel like an International Centre. There is a strong physical and economic divide between the south and north side. The developments on the south side from the east to Harrods are good but the north side and west of Harrods are not commercially active. Harrods has evolved but the district has not evolved with it. There is a big decline in local shops, restaurants and amenities for residents. The growth of cafes on the north side has changed the nature of the area and there are fears of them spreading further. This is a result of local licencing and planning policy. The volume and type of visitors are causing nuisance, particularly at night, and there is an increasing level of begging. There is little coherence between the area and the institutions and attractions in South Kensington.
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•
The boundary between the two councils, running down Brompton Road means that the area is a priority for neither local authority.
Aspirations for the district • • • • • •
The district needs a clear strategic vision to drive change. The district should aim more at high-end luxury shopping. The area needs to reintroduce a mix of shops, restaurants and amenities for residents. The A4 traffic cannot be reduced but crossings should be significantly improved and measures introduced to reduce pollution. Improve public realm and introduce more greenery. Make a more coherent link between Kingsbridge and South Kensington.
Views on establishing a BID • • • •
Overwhelming support for a BID from all sectors of the communities. Concerns about the lack of residential involvement in BIDs and additional costs for businesses. Focus on creating and delivering a strategic vision. Public realm improvements and enhanced services are welcome but secondary. Useful to help pull the two local authorities together.
Retailer views A total of 52 retailers have been visited and interviewed as part of the study. The overall message from businesses approached has been one of decreasing footfall from both visitors and locals, who are perhaps choosing to shop in alternative locations. The change which has been experienced over a relatively short time has been attributed to the general health of the high street, environmental factors and works in the area. Specific issues raised include : • • • • • • • • • •
a loss of area identity; it is not high-end any more, it is like any other high street; the streets are dirty; an increasing number of beggars and rough sleeping; theft from shoppers and stores with police response disappointing; an increasing number of gangs operating in the area and repeat offenders; businesses closed for refurbishment; shop closures and empty units; tube station closing times; and redevelopment and construction in the area.
The businesses surveyed would value an organisation that could deliver the following: • • •
enhanced and coordinated communication between stores for better security, sharing intelligence on crime and anti-social behaviour, protecting staff, shoppers and retail stock; an increased / visible police or security presence with key points of contact; better management of beggars and the issue of homelessness;
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• • • • • •
increased street cleaning; making the area feel safer for shoppers and workers alike; raising the profile of the area and destination marketing and events; enhanced wayfinding; enhanced traffic management, support with parking and servicing issues, reduced noise; and agreater sense of community for stores to support and promote one other.
Overall feedback to the proposition of a BID for Brompton Road was neutral to positive with minimal opposition or belief that the initiative would be negative for the area. Most were keen on creating greater support for business and a more cohesive business community, voice and force for change. Notably only a few of the businesses approached had any experience or prior knowledge of a BID. Most would value further information and perhaps some collateral on the issue.
3.
Current operating environment
It has been nine years since the Conservative-led government of David Cameron declared its austerity programme during which time significant cutbacks have been made in public-sector funding. Investment into town centres has been reduced and an increasing emphasis has been placed upon the role of business improvement districts as an investment mechanism to support local high streets. High street retailing is facing a perfect storm of structural change, rising costs and falling consumer spending. The structural change sees consumers making increasingly greater use of the internet for shopping and expecting high streets to provide more experiential activities to attract them and their spending. Business rates, which hit high street businesses far more than other sectors (because shops use more space in more expensive areas than many other businesses), continue to divert business planning from making the changes necessary to evolve into short-term cost-cutting exercises. The revaluation introduced in April 2017 hit central London businesses particularly hard. Adding to business rate pressure are increases in the National Living Wage (and the London Living Wage), the Apprencticeship Levy, the rising costs of stock as the value of the pound falls and rents. These cost ioncreases are taking place at a time of Brexit uncertauinty which has a negative impact on consumer confidence and willingness to spend on shopping. The future of the high street is currently a key political issue against a backdrop of store closures. The Ministry for Housing, Communities and Locval Government has established a High Streets Expert Panel and a Future High Streets Fund. The House of Commons Select Committee on Housing, Communityies and Local Government has just published a report on Town Centrees and High Streets 2030. And the Treasury Select Committee is undertaking an inquiry intio business rates. The role of BIDs as a way forward is highlighted throughout these reports. BID sector
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There are over 300 BIDs in the UK, approaching 10% more than 2017, suggesting an increasing benefit to the local business communities where BIDs are operating. There are currently c50 BIDs at a development stage, double that at the same time in 2018 further confirming their increasing popularity, not just amongst the business community but within the public and third sectors given the significant reductions in public funding over the past 5-10 years. However, the growing number of BIDs has resulted in national retail chains incuring a cumulation of costs across the country which is making a number of them question the value of BIDs. This makes the formation of new BIDs more difficult as they seek the necessary support from occupiers. However, it can be argued that, if an occupier is to invest in a BID, one that enhances an International Centre is most likely to give the best returns. Against the challenging economic backdrop, a Brompton Road BID positioned positively will be strategically relevant and able to tackle issues important to business, raising the profile of the area and delivering both added value and return on investment.
4.
The way forward
The stakeholder and business interviews provide a series of consistent messages from the different communities which give guidance to what a BID might help to achieve.
A strategic vision The clear message from all key stakeholders is that the district is in decline and needs an agreed vision for its future which all can work towards delivering over time. Without this vision, incremental decisions on investment, planning, licencing and lettings will continue the trend of decline. Some work on a vision has already been undertake, for example, a series of positive themes and objectives in the Knightsbridge Neighbourhood Plan.
High-end luxury retail and local amenities Stakeholders have two different but complementary views on the district’s future, especially concerning the retail and leisure mix. First it should aim at high-end luxury retail, a move already undertaken by Harrods, reflected in the Sloane Street stores and new developments taking place predominantly on the south side, and advantageous to the luxury hotels in the area. But in addition, stakeholders believe any vision should seek to encourage more shops, restaurants and amenities for local residents to reverse the recent decline. The two are not necessarily mutually exclusive. What the district should seek to do is move away from shops and cafes that don't serve local resident and employee needs and that attract visitors types other than those seeking high end luxury. But this will require planning and licencing policies that will enable and encourage such a change over time (we appreciate the sensitivities of these policies and further work should be done to examine how best to achieve the desired outcomes without unforeseen consequences). It will also need to be commercially realistic and viable for landlords although with high rents and rates being the cause of
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some closures, landlords may wish to look at how they could encourage local shops as part of a mix to enhance overall property values. We fully accept that the multiple ownership in the district, together with market conditions, makes such a transformation more difficult than in some other parts of central London when majority ownership has allowed these to be undertaken in districts such as Covent Garden, Regent Street and the various Shaftesbury estates (e.g. Carnaby Street, Seven Dials, Chinatown). But at the moment the district has no obvious vision and having one would encourage and enable movement towards it even if more difficult than in other areas
Improved public realm and street management Transformation, over time, will require an enhanced public realm and significant improvements to the pedestrian experience, particularly in relation to crossing the Brompton Road. But any investment would be guided by the aim of contributing to the delivery of the agreed strategic vision. Many existing occupiers in the area have said that they also require enhanced security and street management which is also important. But this flows from the delivery of a strategic vision that seeks to create an environment that appeals to high-spending visitors.
Changing the visitor profile The type of visitor that the district seeks to attract appears to be the key to curating the district to bring about this change. Many of the anti-social behaviour issues raised by residents would be ameliorated by the development of businesses that attract either local residents or high-value visitors. And by creating a retail and leisure district that appeals to high-net worth visitors it is likely that visitor numbers will decline (good for residents) while spend will rise (good for business) and visitor behaviour will improve (good for everyone). While some expressed concerns about attracting large numbers of people to Knightsbridge who visit for free the neighbouring museum and cultural institutions, targeted marketing and collaboration can focus on those high net worth visitors to concerts, exhibitions and events. The parents of overseas students at local universities are, almost by definition, the sort of high net worth international visitors that Knightsbridge wants to visit its stores. The involvement of world class cultural institutions in the commercial activities of world class stores may perhaps provide, if managed effectively, a unique combination that appeals to the key Knightsbridge domestic and international markets. Protecting residents’ amenities It is important that changes to create a high-end luxury retail and leisure district should not be made at the expense of residents’ amenities. Residents will not wish to see their amenities diminished to enhance those of visitors. But in most cases an appreciation of, and a sensitivity to, this issue are more
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likely to lead to solutions that satisfy both elements of the Knightsbridge community. Most stakeholders from resident and amenity groups acknowledged that the district needs to improve and welcomed strategies for achieving this. Local authorities’ role The two local authorities must be encouraged to recognise even more both the special position of this International Centre in the hierarchy of London’s retail and the strength of a strategic vision to bring significant improvements to the area, which has been agreed by residents, businesses and neighbouring institutions working together. The councils should respond by ensuring that their planning, licencing and public investment policies for the International Centre support, rather than hamper, the district’s transformation. The Royal Borough of Kensington and Chelsea should grow to appreciate more its share of one of just two International Centres in London. Westminster City Council should ensure that its share of the Knightsbridge International Centre does not remain a poor ‘Cinderella’ to that of the West End. The International Centres are a rich source of local jobs, business rate growth, prestige and international attraction for investors and visitors. Moreover, a well-managed International Centre with a sense of purpose and direction is the best way to enhance the lives and wellbeing of local residents and enable councillors to minimise the genuine concerns of their electorate. The Mayor The district is the Mayor's designated International Centre. TfL has in the past shown itself supportive of highways and public realm improvement schemes in the area. But the sense of contributing to achieving an agreed vision adds weight to future discussions way beyond that of appeals for piecemeal, unfocused improvement proposals. The £10 million transformation of Bond Street, a partnership between TfL, Westminster City Council and local businesses mobilised by the New West End Company BID is a model for delivering coordinated highways and public realm improvement schemes in an International Centre.
Delivering change and establishing a Business Improvement District The need for a strategic vision for the district is clear and a BID is a strong legal vehicle for helping to create and deliver this. The following elements of this study explore how a BID could be formed and would operate. The benefit of a BID is that it brings business together to create an agreed business plan and provides the resources to promiote its delivery in partnership with private and public bodies. With the Brompton Road district falling within two boroughs, a BID is an ideal vehicle for focusing attention and mobilising the various authorities and businesses to make the district’s transformation a priority. The issue is one of timing. The process outlined show how it can take 18 – 24 months to establish a BID. If it is successfully it would then need to commission consultants to create the strategic vision in detail which will take further time. An alternative would be to twin-track the BID formation and the commissioning of a strategic study. The BID could then play a leading role in ensuring the delivery, over time, of the strategic vision.
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This would mean commissioning a study before any BID is formed. We would propose that a commissioning vehicle is created to manage the appointment of a study. Membership might include representatives of the two councils, landlords, occupiers and residents. This would ensure that all elements of the community had a real input into the strategic vision. This route would require advance funding, before a BID was established. This could come from businesses, the councils and the Mayor (most likely through TfL). There is nearby precedent for this approach to creating a strategic vision for a district. The West End Partnership (www.westendpartnership.london) was established by Westminster City Council in 2013 and comprises representatives from the council, TfL, business, culture, residents and the police. It commissioned a report into the future of the West End and has been instrumental in ensuring its delivery.
5.
Business Improvement Districts
Business Improvement Districts (BIDs) are not for profit partnerships within a defined area, in which the local businesses have voted to invest together to improve their environment. A BID is brought in through a democratic ballot process and the services provided are additional to those delivered by the Council. Approaching 15 years since their inception, BIDs are becoming more mature and within a few years Central London will ‘read’ as a patchwork of BIDs aligning to each other’s boundary.
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London’s West End Business Improvement Districts
A successful BID has to have ‘buy-in’ from the majority of those who will finance it – both for a successful vote and also to ensure the partnership evolves in a positive environment. A BID seeks to provide greater strategic context for business, galvanize the business community, statutory authorities and wider stakeholders behind a common vision for the district and generate an enhanced income stream which would benefit the whole area in terms of service provision. It would provide the business community with an ability to influence and help shape the future. • • • • •
Return on investment. A better environment for business. A more effectively managed and sustainable district. A destination of choice for visitors, businesses and residents alike. Effective engagement with the wider community.
Governed by Government legislation and regulations, BIDs are statutorily established once voted for by the majority of businesses in an area and have a maximum term of five years before returning to their electorate for renewal. Once a majority vote had been achieved, a BID levy becomes mandatory on all defined ratepayers. The ballot needs to satisfy two tests – a majority in number of those voting and a majority in proportion of rateable value of those voting. The BID levy can only come into effect if these two tests are met. The BID levy is then applicable to all eligible businesses. All eligible businesses in a proposed BID area are entitled to one vote per hereditament. Some businesses occupying more than one hereditament within the area may therefore be entitled to more than one vote.
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To ensure neutrality, the BID ballot is administered by the Council Returning Officer and their electoral services staff. It is arranged in line with rules set out in the BID regulations (2004) as approved by Parliament.
Property Business Improvement Districts Property owner BIDs are relatively new by comparison with occupier BIDs, with the regulations for their creation only passed into law in 2014. There are currently only three property BIDs in the UK, two managed by Heart of London and one by New West End Company. Property BIDs were created to allow owners to contribute to their area in a similar way to that achieved by the successful occupier BID model over a number of years, ultimately benefitting the property owners through increases in the value of their property and growing prosperity of the area. Current legislation means that property owner BIDs can only be created in London. This is because property BIDs can only be created where a Business Rate Supplement (BRS) and an occupier BID are already in place, and the only BRS in force is in London (levied to help meet the cost of Crossrail). The key difference between the mechanics of occupier BIDs and its property counterpart surrounds the composition of the business constituency where rather than being provided the list of potential voters from the Council rating lists the BID proposer is charged with providing an audited list of owners within the defined geographical footprint of the proposed BID. The proposer is also asked to define the owner as they apply to the emerging BID area.
Cross Border BIDs Typically, a Business Improvement District is within a local authority boundary but in April 2013 the Government introduced Cross Boundary Business Improvement Districts enabling BIDs to operate across local authority boundaries. In London the first cross boundary BID was established by the South Bank Employers Group, where the geographical footprint is shared between LB Lambeth and LB Southwark. Essentially the mechanism enables the shape of the business district to better mirror the business makeup and character of the area rather than be hindered by what are often rather artificial borough boundaries. A similar mechanism is used to establish a cross boundary BID except that the BID proposer is required to undertake two ballots, one in each borough, an overall majority required for success. The regulations provide that the councils involved in the BID proposal work in partnership and agree who will be the ‘lead authority’. In the absence of agreement, the borough with the largest number of hereditaments in the proposed area being deemed the lead.
6.
Emerging Geographic Footprint for Brompton Road
Option 1
Option 2
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Preferred Option 3
The Berkeley Bulgari Hotel London
London Oratory
A linear BID model encompassing Brompton Road and Knightsbridge with an option to engage a Knightsbridge spur to embrace an area up to the Bulgari Hotel. This area would represent c257 businesses and return a potential budget of cÂŁ1,200,000. The additional streets would introduce an additional 107 businesses while only returning an additional budget of cÂŁ200,000 This is the provisional preferred option but is subject to further discussion.
Borough Boundary The recommended option is for the two boroughs to work together in creating one Business Improvement District.
7.
If this proves problematic a BID can be formed each side of the borough boundary line and be managed within the same governance structure.
The BID Model
Rateable Value Analysis Kensington and Chelsea
Westminster
Total
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Street BROMPTON ROAD
KNIGHTSBRIDGE
Total
Number of Businesses
Total RV
1% of RV
125
£66,353,000
£663,530
4
£11,535,500
£115,355
129
Number of Businesses
Total RV
1% of RV
BROMPTON ROAD
44
£16,472,000
£164,720
169
£828,250
KNIGHTSBRIDGE
84
£33,713,500
£337,135
88
£452,490
£501,855
257
£1,280,740
£8,315
7
£10,375
Street
£778,885
128
MONTPELIER STREET
MONTPELIER STREET
3
£206,000
£2,060
BEAUCHAMP PLACE
46
£4,409,500
£44,095
46
£44,095
HANS CRESCENT
18
£4,458,000
£44,580
18
£44,580
HANS PLACE
1
£275,000
£2,750
1
£2,750
HANS STREET
1
£216,000
£2,160
1
£2,160
KNIGHTSBRIDGE GREEN
LANCELOT PLACE
Total
Grand Total
69
£95,645
198
4
£831,500
Total number Total Potential Budget of businesses
28
£7,104,500
£71,045
28
£71,045
6
£2,677,500
£26,775
6
£26,775
£106,135
107
£201,780
364
£1,482,520
38
166
Notes 1. Assumes RV threshold of £50,000 2. Incorporates retail, Leisure, Hotels, Office 3. Assumes no levy CAP is applied 4. Data cleansing to be undertaken by Council rating office
Emerging BID rules •
The Renewal BID term will be five years, 1 April 2021 to 31 March 2016.
•
The BID levy will be applied to rated properties with a Rateable Value of £50,000 or more.
•
The BID levy will be fixed at 1% of rateable value using the business rating list as at 1st April 2017.
•
The BID levy will not be increased other than as specified in these levy rules.
•
The BID levy will be applied to the retail, Leisure, hotel and office sector.
•
There will be no VAT charged on the BID levy.
•
Refunds will be at the discretion of the BID.
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•
Where the rateable value for individual hereditaments (rated properties) and results in a lower BID levy, it will only come into effect from the start of the financial year in which the change is made. No refunds of the BID levy will be made for previous years.
•
The liability for the daily BID levy will fall on the eligible ratepayer.
•
Charitable organisations in receipt of mandatory charitable relief from rates will receive 80% allowance.
This emerging model would provide for c257 Businesses across retail, leisure, hotel and office returning a potential budget of c£1.28m with a BID levy of 1% RV. For a Property Owner BID only The eligible owner shall be, for example, he first lessee above the rateable occupier where the current lease is granted for a term of more than 75 years, or in the absence of a relevant first lessee, the freeholder.
Structure & Governance If a two-BID model is adopted and a property BID is pursued in parallel with an occupier initiative, moving forward a structure can be put in place which provides clarity of leadership, cost efficiency and sector focus:
Strategic Board
Occupier Management Board
Property Management Board
Business Unit & Income Stream
Business Unit & Income Stream
The BID Board has the primary responsibility to oversee the conduct and performance of the BID and support management and staff, which are responsible for the day-to-day activities. In performing its functions, the Board primarily considers the interests of the BID to which its fiduciary duty ultimately resides, and then to its members. It also considers the legitimate interests of wider stakeholders such as statutory authorities, employees, suppliers, visitors and residents.
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Most BID Boards in the UK range from 8-14 members, with the largest at 21. There are over 3000 Board members across the industry. 84% of BIDs have local authority representation on their Boards and 66.98% of BIDs have property owners involved in their Boards on a voluntary basis. It is best practice to include community and resident representation but less common.
8.
Programme for establishing an Occupier BID
Mobilisation Establish Steering Group (project champions)
July – September 2019
Early discussion with Councils regarding geographic area and BID rules
September - October 2019
Production of consultation document
September - October 2019
Initial stakeholder engagement
October - December 2019
Occupier engagement programme (stage 1)
January – April 2020
Early draft of business priorities and objectives
January - March 2020
Business Planning & Engagement Phase
Discussion with Council regarding emerging plan and ballot schedule
April - June 2020
Occupier engagement programme (stage 2)
May - August 2020
Compilation of business plan
June - July 2020
Presentation to steering group / shadow Board
June / July 2020
Agreements to proceed to ballot
July 2020
Notice to Secretary of State / Council
July 2020
Campaign Phase
Davout & GJR, May 2019
Occupier engagement (stage 3)
September – December 2020
Communications & event programme
September – December 2020
Completion of business plan
September 2020
Development of formal documentation
September - December 2020
Presentation to steering group / shadow Board - final BID proposal
September / October 2020
Presentation of business plan to Council
October 2020
Compilation of voter list
November - December 2020
Sign off formal documentation
December 2020
Ballot Phase
Launch of BID Business Plan (BID Proposal)
January 2021
Occupier consultation (stage 4)
January - March 2021
Despatch of canvass (voter verification)
January 2021
Publication of notice of ballot
3 February 2021
Ballot papers distributed to voter list
19 February 2021
First day of Ballot (minimum 28 days) - Property
19 February 2021
Ballot Day
19 March 2021
Result announcement
20 March 2021
BID start date
1 April 2021
9.
Next steps
If work on the BID programme begins in the summer of 2019, the eighteen-month work programme would lead to a potential BID ballot in early 2021. Assuming funding is available, five key actions should be undertaken:
Establish steering group To provide project leadership and guidance throughout the BID development process. The group would act as project champions and are likely to be the members of a future BID Board. The constituents of the group should be a representative mix of the project stakeholders and future members of the Business Improvement District.
Adopt BID development plan To facilitate the onward BID work programme the steering group should adopt an agreed development plan appoint a project resourse for delivery. A fund raising strategy should be developed as an integral part of this work.
Davout & GJR, May 2019
Commission a strategic plan The work should be led by a commissioning body which includes a mix of occupiers, property owners, community local authorities and representatives of the project steering group. The group would agree a brief for the work and choose a preferred partner following a tender process.
Identify project resource It is important that a project resource is appointed to drive forward the overall BID development plan, business engagement programme and project steering group. The scope of work during the next 1824 months is significant and focus will be required to ensure the objectives set are achieved.
Produce collateral to support the promotion of the initiative In order to best manage the initial consultation with businesses and wider stakeholders some form of consultation document / leaflet will be required to sign post the project and act as a leave behind / calling card regarding the project.
Project Work to be undertaken Over the 18-month period indicated the project resource will undertake the tasks listed below. •
Project management • • • • • • •
•
Business engagement • • • •
•
Ensure project is managed to objective/time/budget. Design, agree and deliver tactical plan for delivery of BID. Undertake data collection and analysis. Co-ordinate project meetings, capture agreed actions and ensure completion. Ensure compliance to regulations and Council guidance. Liaise with Council with respect to development /delivery of project. Attend meetings as agreed to present updates and progress.
Together with the steering group identify businesses, individuals and wider stakeholders to take part in the consultation programme. Organise and undertaken meetings and interviews. Collate feedback and communicate back to steering group. Fund raising to secure delivery of strategic plan and establishment of BID.
Production of documentation •
Consultation leaflet (‘leave behind’).
Davout & GJR, May 2019
• •
Operating Agreement and Baseline Agreement (statutory requirement). Business Plan (BID Proposal).
Assuming that there is support for a BID a proposal for its shape would include the areas listed below. • The scope of the BID • • • • •
Geographic extent. Form of occupier included in an occupier BID. How property owners should be involved (voluntary or through a property BID). The optimum rateable value for business inclusion in the BID. A range of estimated BID levies based on different membership options.
• The key areas of focus for the BID, for example • • • • •
Advocacy – working with policy makers to promote issues of importance to the area. Street Management – working in partnership with local authorities to enhance cleansing, security and anti-social behaviour activities. Curation of the district – to enhance, over time, the appeal of the district to visitors and investors. Marketing – defining and promoting the district. Partnerships – creating beneficial partnership with other BIDs, local visitor attractions and relevant organisations.
• Process for establishing the BID • • • • •
Establishment of a shadow BID board. Legal and practical measures. Programme for research and creation of a BID Business Plan. Ballot programme. The initial post-Ballot programme.
Appendices 1. Key stakeholder Contacts 2. Stakeholder interview Results 3. Retailer interview Results
Davout & GJR, May 2019
4. Business Improvement District model
Davout & GJR, May 2019
Appendix A Key Stakeholder Contacts Interviewed Type
Organisation
Contact
Position
Property/Funder Property/Funder
APML Estate/ Cheval Property Astrea Asset Management
Mike Sadler Stuart Clifton
Director Asset Manager
Property/Funder
Bulgari Hotel
Kostas Sfaltos
General Manager
Property/Funder
Chelsfield
Sarah Waller
Asset Manager
Property/Funder
Harrods
Julian Cook
Director, Harrods Estates
Property/Funder
Harrods
Michael Ward
Managing Director
Property/Funder
Harvey Nichols
Manju Malhotra
Co-Chief Operating officer
Property/Funder
South Kensington Estates
Tim Butler
Managing Director
Property/Funder
The Park Tower Knightsbridge
Sue Finlay
General Manager
Property/Funder
Valan Group
Valentin Lutikov
Director
Property/Funder
Wellcome Trust
Jamie Trivedi-Batman
Investment Manager
Politician
RB Kensington & Chelsea
Councillor Quentin Marshall
Chair, Planning Committee
Politician Politician
Westminster City Council RB Kensington & Chelsea
Cllr Elizabeth Hitchock Cllr Sof McVeigh
Local member Local member, Brompton & Hans Town
RA / Amenity Society
Brompton Association Chelsea Society
Sophie Andreae Michael Stephen
Chairman Chair, Planning Committee
RA / Amenity Society RA / Amenity Society
Egerton Garden Mews RA Kensington Society
Katrina Bennett Amanda Frame
Secretary Chairman
RA / Amenity Society
Knightsbridge Association
Melville Haggard
Chairman
RA / Amenity Society
Davout & GJR, May 2019
RA / Amenity Society
Milner Street Area RA
Lord Grantley
Co-Chairman
Resident planning
Chris Barrass
Secretary
Simon Birkett
Chair and Treasurer
Major Institution
Knightsbridge Neighbourhood Forum Knightsbridge Neighbourhood Forum Science Museum
Karen Livingstone
Director of Masterplan and Estates
Major Institution Major Institution
Natural History Museum Hyde Park Barracks
Keith Jennings Major Tom Seccombe
Head of Master Planning and Projects Civil Engagement Officer
Major Institution Major Institution
Royal Albert Hall Royal College of Music
Louise Halliday Aida Berhamovic
Director of External Affairs Director of Estates and Projects
Emily Candler
Executive Director
Resident planning
Major Institution Cultural Group Contacted but unable to interview
Exhibition Road
Type
Name
Organisation
Position
Property/Funder Property/Funder
Robert Harris Amanda Hyndman
Dorrington PLC Mandarin Oriental Hotel
Director General manager
Davout & GJR, May 2019
Major Institution
Annamarie Phelps CBE
Fine Arts Society
Chair
Major Institution
Fr Julian Large
London Oratory
Provost
Major Institution
Imperial College
Nick Roalfe
Director of Estates Operations
Major Institution
Royal Parks
Andrew Scattergood
Chief Executive
Politician
Cllr Tony Devenish
Westminster City Council
Local member
Politician
Cllr Rachael Robathan
Westminster City Council
Politician Politician
Cllr Will Pascall Cllr Walaa Idris
RB Kensington & Chelsea RB Kensington & Chelsea
Local member Cabinet Member, Streets, Planning and Transport Local member, Brompton & Hans Town
Politician
Cllr Mary Weale
RB Kensington & Chelsea
Local Town
Organisation
Position Leader Cabinet Member for Economic Development, Education and Skills Cabinet Member for Environment and City Management Cabinet Member for Place Shaping and Planning Chief Executive Executive Director of Growth, Planning and Housing Director of Place Shaping and Town Planning Director of Policy, Performance and Communications
Informed of feasability study but no interview sought Type Name Politician Politician
Cllr Nickie Aiken Cllr David Harvey
Westminster City Council Westminster City Council
Politician
Cllr Tim Mitchell
Westminster City Council
Politician
Cllr Richard Beddoe
Westminster City Council
Officer Officer
Stuart Love Barbara Brownlee
Westminster City Council Westminster City Council
Officer Officer
Deirdra Armsby Julia Corkey
Westminster City Council Westminster City Council
member, Brompton & Hans
Davout & GJR, May 2019
Politician Politician
Cllr Elizabeth Campbell Cllr Will Pascall
RB Kensington & Chelsea RB Kensington & Chelsea
Officer Officer
Barry Quirk CBE Sue Harris
RB Kensington & Chelsea RB Kensington & Chelsea
Officer
Graham Stallwood
RB Kensington & Chelsea
Officer
Mahmood Siddiqi
RB Kensington & Chelsea
Officer Politician
Michael Clarke Rajesh Agrawal
RB Kensington & Chelsea Greater London Authority
Leader Cabinet Member, Streets, Planning and Transport Chief Executive Executive Director for Environment and Communities Executive Director of Planning and Borough Development Executive Director, Transport, Highways, Parks and Leisure Planning Implementation Team Leader Deputy Mayor for Business and Enterprise
Politician
Rt Hon Mark Field MP
City & Westminster
Member of Parliament
Politician
Emma Dent Coad MP
Kensington
Member of Parliament
Davout & GJR, May 2019
Appendix B Key stakeholder responses
Current views on the Brompton Road Property owners and funders Overview • • • •
It is declining and its tone is going down. It’s a declining area. Good residential investment but declining office and retail. Footfall is a problem – people visit to go to a specific shop - they don’t dwell. It changes along the road. Lots of investment from the Berkeley to Knightsbridge Green leading to a transition. The major intersection is a problem. Then the Chelsfield development up to Harrods is/will be good. But falls away after that.
• • • •
The challenge is on the north side. Especially with Burberry moving over. Comfortable with Brompton Road but uncomfortable with RBK&C planners and policy. North side is poor and declining. Retail falls off West of Harrods. Not helped by north being WCC and south being RBK&C. Local authorities should facilitate growth, not strangle it.
•
Business rates are high – class Brompton Road as same as Oxford Street, which is wrong. It is a poor relative of Oxford Street.
• • • •
Brompton Road is not good for retail. North side is less certain and has a growth of coffee shops. The market should decide what the future is for businesses. Harrods has invested £1 billion over the past 20 years. It is a risk. But RBK&C have not matched these improvements. Brompton Road has major structural problems. All of the north side is dead. It has fundamental problems that won’t go away.
• •
North side has no one owner and WCC has not played any role in helping it. It’s now too late to stop its decline.
• •
South side, to the west of Harrods, retail is dead and is likely to end-up like the north side. Brompton Road doesn’t represent the area well. 5 Side opposite Harrods is far worse than Harrods side. Don’t feel that the Brompton Road is of the quality you would expect. Changes and deteriorates west of Harrods. No plan or identity. Brompton Road has a positive heritage but seen decline over past 6 years +. It’s too urban and enclosed. You wouldn’t want to sit and stay there. West of Harrods is a twilight zone. Has changed greatly over 25 years. To a landlord, the mix of uses has changed but to a resident it has deteriorated. Currently residents are getting neither a local district nor an international centre. The developments from Knightsbridge tuned to Harrods will be good when completed, so the south side should be OK. But the north side needs improving. Need to break through the boundary.
• • • • • •
Davout & GJR, May 2019
• • • • •
Traffic is a big problem. Wider pavements would be good but difficult to do. Area around Knightsbridge Station is overwhelmed with building work – lack of coordination is bad. Busy road with narrow pavements. Pedestrian experience is important and the pavements size is a problem, especially on the north side. North side need revitalising. Need better footfall flow from south the north.
Retail • • • • • • • • • • • • • • •
• • • •
The demography is a challenge. There is no clear theme but three different elements – very high end; good tourist brands (Harrods and Harvey Nichols); tertiary on the north. WCC and RBK&C don’t want to lose A1. So growth of café use if no A1 interest. North side doesn’t work for fashion retail. It needs to find a retail or restaurant format that works. South Kensington Estates has had some success bringing retail. Harrods makes its own weather, whatever the state of the Brompton Road. Under new owners, Harrods is focussing on luxury. Harrods can keep visitors in the store but it would be helpful to keep them in the wider district. Loss of shops that serve the local neighbourhood. But there is no alternative retail use. 6 Rates costs are killing high street. People seeking more experiences – but high street shopping is an experience in itself if you get the mix right. Quality of retail is declining. Harrods is an island within the Knightsbridge island. The lot sizes are very different and there is no coordinated effort to give the district a clear image. Most local shops have disappeared over the 25 years. This is bad for residents, but landlords need to look for the best rent. Disjoined approach to managing tenant mix. There is a high concentration of certain types of uses when a mix is needed. But landlords need to make money – tenants with the best covenant and rent will get the property. Retail is being replaced by late night entertainment and this is changing the local area. International shoppers will still spend no matter what is happening domestically so should encourage. Little market demand for retail. Short leases in advance of redevelopment contributes to this. North side discounts compared with south but it mustn’t be written off. The tenant mix is key – but it is wrong at the moment. Too many tatty tourist shops.
Cafes and restaurants • •
Residents are opposed to the café culture – but it depends on the type of café – if family friendly that is good, but many are very noisy Nervous of spread of current café culture towards Brompton Cross
Davout & GJR, May 2019
• Difficult to attract good restaurants because of licensing restrictions so resort to cafes. The mid-ranking restaurants have gone and that’s bad for residents. RBK&C’s licencing policy is bad for residents and landlords. •
The problem is not the growth in middle Eastern visitors, it’s the type of visitor – i.e. young kids with no money passing time hanging around in the cafes.
• •
Would prefer fewer cafes but planning rules and costs (e.g. rates) don’t allow different uses. Need more restaurants but they can’t afford to operate there. Rates, upward only rents and property prices are all too high.
• •
Growth of Middle Eastern focussed cafes change the nature of the road. As a landlord you do have to make commercial decisions, but we are not getting the mix right. There are too many cafes. Moving from retail to A3 uses and the road is losing its retail feel. Need for more food and amenities in eastern end of road.
• •
Highways and transport • • • • •
Inhospitable to pedestrians – difficult to navigate A4 is a big, busy road -its effectively the M4 - and difficult to cross. Public transport is good, but most visitors don’t come by public transport. Difficult access on A4. The luxury offer is good, but the traffic makes Brompton Road not a nice place to be.
Criminal and anti-social behaviour • • • •
More beggars appearing. Gets saturated with people causing noise, nuisance, loud cars, racing. Beggars need dealing with. Busking and night time visitor activity is bad.
Neighbouring areas • •
Exhibition Road is vibrant – feels like the centre of a gateway city. But Brompton Road just feels like a main road It would be better if the luxury retail of Sloane Street was better linked to Harrods.
Services • Harrods already pays for enhanced security and street cleaning services. Some owners also support services but others need to contribute.
Public realm • •
Access and pavements are good. Public realm needs improving and need more greenery.
Amenity and resident groups and local councillors Overview • •
Brompton Road is slipping - becoming more like the Edgeware Road Problem with the two authorities
Davout & GJR, May 2019
• •
•
• • •
• • •
•
•
There is now a monoculture and its beginning to get tatty High Streets are in decline due to internet shopping; costs are rising – business rates; landlords insist on upward-only rent reviews. Planning laws need to encourage visitors but not rowdy and noisy visitors. It has changed. It has become very tatty. It was high class residential with shops catering for this. But the residential mix has changed. Short term foreign stays have changed the types of businesses. Businesses have to cater for their customers. Over the past 15 years the Brompton Road has very noticeably deteriorated. Recently, more forceful councillors have helped to address problems. A series of licencing and planning decisions, each decided on merit, have had a negative cumulative impact. The local authorities have no strategic plan for the area and no money for it. Major disadvantage in having the borough boundary down the Brompton Road. Different approach to planning and licencing. Overseas developers are only interested in their sites, not the overall area. RBK&C officers ignored resident wishes for Brompton Road to be a vibrant shopping and visitor destination and instead push for a bigger nightime economy. Those officers have gone post-Grenfell. In past 10 years the area has changed from being mainly residential with some A3 to being tourist based with temporary residents, largely from the Middle East. Also changes in the retail sector have led to shop closures. The result is a shift from bustling during the day time to a much longer and later activity time. Area now has a tacky feel – particularly the north side. The area is an International Centre but doesn’t feel like it.
• • • •
Residents are leaving – can be measured by fall in gas and water usage. The area is dominated by Harrods. Everything else is very scruffy. To many cafes, too much shisha, too much monoculture. Big north/south divide. McDonald v Harrods. Doesn’t work well. Westminster side is very scruffy and need regular cleaning.
• •
The pavement and steps are not conducive to a relaxed visit. Brompton Road is a barrier. It doesn’t fit well with the lifestyle of residents. They are embarrassed by it. Its unpleasant to walk in.
Retail • •
Harrods is the flagship, Sloane Street is good as are the big brand stores Harrods has evolved from a traditional department store to a tourist destination and the area has changed as a result
• • • •
Need a strategy to respond to the Harrods evolution. The shops should be high end If not retail, then businesses should grow, as consistent with an International Centre Need local shops and cafes Local people need food stores – lost these, local stores and other amenities. Used to use Harrods but it’s changed now.
•
Harrods has made huge investments and should be applauded. But it no longer caters for local audience.
Davout & GJR, May 2019
• •
• • • •
Was residential with shops but now all resident facilities are closing. Harrods should be concerned if Knightsbridge becomes more like Oxford Street because it may deter international visitors. There are land ownership issues. The parade of shops opposite Harrods brings the area down. Harrods is right to go for top end luxury – support them. No reason to visit other than Harrods. If it was to go, everything would go. Main issue is loss of local shops and amenities as the Brompton Road has become a tourist destination. But understand that landlords need to get their rents.
Cafes and restaurants • • •
If there are to be cafes then their negative impact needs to be mitigated. Too many cafes – need better control. Shisha cafes – nice to sit outside but need to reduce number of tables and chairs on pavement.
•
A monoculture of cafes caused by licencing policy. 2015 audit showed 97 cafes between the Berkeley Hotel and London Oratory. Since that time, it has got worse.
•
Problem exacerbated by chairs and tables on pavements. Narrowing pavements cause pedestrians to step onto road.
•
North Brompton Road has changed shops to cafes without planning permission. Spread onto pavements. RBK&C don’t enforce licencing laws.
• • • • •
Cafes are making it an unpleasant place to live and people are moving out. There are no restaurants people can go to – they are all too noisy. Lost best local restaurants and replaced by cafes which block the pavement. Residents worry that the café culture is moving westwards. Middle Eastern visitors behave well but the sheer weight of numbers causes late night noise through partying and loud cars.
Highways and transport • • • • • • • •
•
Serious highways issues – pollution (first to breech EU limits annually) and accidents Need to include the road in the ULEZ 2021 Should be for ULEZ vehicles Need a strategy to deal with the traffic – it’s the end of the M4 Traffic needs looking at. Public transport works well Shouldn’t be pedestrianised but need better pedestrian crossings Taxis need controlling to minimise resident disturbance Bus services need improving. People like travelling by bus. TfL should stop running to printed timetables and use technology to meet real-time requirements (measuring how many people are waiting at bus stops). TfL did say they would upgrade elevated section of north Brompton Road west of Montpelier Street but RBK&C wanted east too and it got nowhere.
Services •
Need proper rubbish consolidation and collection scheme
Davout & GJR, May 2019
Criminal and anti-social behaviour • • • • • •
There is industrial scale begging Security should be linked across the district to make it safer and prevent shoplifting Cloning of cards (Lebanese Loop) Remove super cars and their noise Motorbike noise is a nuisance, but nothing is done about it. Business fly tipping on Montpelier Street because of difference in waste collection between RBK&C and WCC.
• •
Problems with noise and rubbish. McDonalds is a particular problem. Benches added by TfL on Brompton Road has increased anti-social; behaviour. Nobody asked for them.
• •
Too many people just hanging around and not spending money. Neighbouring institutions along Exhibition Road create noise through functions – especially when run by amateur groups (i.e. not professionally arranged events). • Increase in begging and piles of rubbish – it all feels scruffy and untidy Terrible traffic noise – cars at night, motorcycles, pedicabs.
•
Public realm •
Lack of greenery
Neighbouring areas •
Need to connect with South Kensington. Makes sense that the whole stretch works together.
Neighbouring institutions Overview • • • • • • • • • •
All the cultural organisations in South Kensington work together and are concerned about the public realm and traffic. It doesn’t feel like a quality public space. Dominated by traffic and poor infrastructure. Area feels incoherent – south side disconnected from north. Residents don’t like café culture and fear it will spread. Area suffers because of the council boundary – it is not a priority area. A busy and polluted road. The most common question our visitors ask is “where is McDonalds?”. The Brompton Road is effectively a service area for South Kensington visitors. It needs to be better managed with the right balance between businesses and residents. It is an International Centre but it doesn’t feel unique or special. We need a clear definition of what an international Centre is.
• •
Davout & GJR, May 2019
•
•
•
Lots of development and disruption makes it feel alienating and off-putting. Transition period could have been done better, e.g. wider pavements. Lots of empty property from Hyde Park Corner makes it feel closed in the evenings. Nature of the area is changing, partly because much of the residential is not being used. Need to get the mix right or the character will fall. Tall buildings are creating a barrier to the road. There is no sense of space. It is a long stretch of road which is not nice to walk down. The park is a gem but development has spoilt it. Need much better crossing at Knightsbridge junction to allow horses to cross safely and without being spoked by traffic noise.
Working together • Cultural institutions have aspirations for more daytime activities so keen to work with neighbouring areas. • • • •
Need to connect to the east – more joined-up and coherent. A collective offer will be more attractive to visitors. Need to include residents in any collaborations. We want West London to be special and world class.
Aspirations for the future Property owners and funders • •
Needs a brand and need curating to attract visitors and get them to move around the district Some of the area will be good with what’s there already and what’s planned. It’s a case of what to do with the bits in between. Need to appeal to a wider demographic – e.g. residents.
•
Remove the barriers between the north side and the south side. Can’t do much about the four lanes but the junctions and crossings need improving. Harrods will continue to invest but it would be helpful if the wider environment was improved.
• •
•
Need to be realistic about what can be done. North side will always be more difficult to attract investment. Should decide what the retailers can be attracted given the business environment and approach RBK&C with a vision. The tenant mix is key to the future5 Its not just about better public realm, It’s about investment and reduction in costs e.g. business rates.
• •
Davout & GJR, May 2019
•
Should make the area a development zone with better affordability. This will lead to variety and quality. Landlords would lower rents to attract best mix. This would blead to a more stable mix and rent which would make assets more valuable.
• • • •
Museum “free” visitors are not necessarily the customers for high end luxury. Need to take a step back and see the bigger picture. More greenery, less paving and better environment for pedestrians. Can’t do anything about the traffic but can improve crossings. With current traffic lights you don’t know when it is safe to cross. Make it a nicer place. Wider pavements, more greenery. Knightsbridge is luxury, Brompton Gate is design and fashion. Need to create a bridge between them. Different nature but feed off each other and share customers. Potential for retail if it is luxury retail. It has the potential to be another Bond Street with larger stores and more retailers. More high quality shops, restaurants and cafes. Can’t do much about the traffic, but the pedestrian areas around Harrods have worked well. The number one luxury retail destination in London. This needs more than just the Harrods – Harvey Nichols link – it needs a wider pull.
• • • • •
• •
Difficult to plan because of multiple ownership and the state of the retail market. We need rationalisation and alternative uses but residents often object to those uses (e.g. restaurants and bars). The world is changing (empty units on Oxford Street) so not certain there is much scope for anything else. Needs to be vibrant. Restaurants and bars west of Harrods. Quality retail – attracting quality visitors not mass tourists.
Amenity and resident groups and local councillors • • • • • • • • • •
Better shops. Different activities – eg art house cinema. Need to be more creative – its not just about public realm its about what will attract the people we want to attract. Need to look at uses you cant get online e.g. healthcare and restaurants. As it was in the 1970s – more connected with Sloane Street and Kings Road. Sloane Street improvements are a model apart from narrowing carriageway by widening pavement and parking. There is no strong public interest to give up the carriageway. Different mix of uses – not monoculture. Enhanced and upgraded public realm. The Knightsbridge Neighbourhood Forum referendum – outlines a wish list of improvements. Need to invest in highway and infrastructure.
• •
Davout & GJR, May 2019
• • • • • •
Return local shops in place of cafes. Better control of café activities. Don’t widen pavements because they will be full of people standing around. Any planning should take account of local residential streets too. Don’t turn residential to commercial. A high quality, showcase area Need a clear vision – high end retail during the day; close proximity to residential and local amenities; managed night-time economy. Strategy should guide planning and licencing policy to deliver aims.
•
Will never improve A4 but can improved public realm. Cars will still be there but need to make them less dominant. Better pavements, no metal railings, more beautiful, more green, not as harsh. A prestige area to protect property values. A nice area for residents and staff. Handful of high end stores attracting high end tourists. A clear plan which guides planning and licencing policy and encourages more local shops and amenities.
• •
• •
Davout & GJR, May 2019
Neighbouring institutions • •
A more joined up approach to visitor attraction. A joined-up approach to quality, cleanliness, pedestrian priority, wayfinding and the mix and quality of the offer.
•
We need to balance residents, culture and business. We attract more visitors than Venice, but they are managed better. We don’t want to become another Disney – we need to think about residents as well as the tourists.
• • • • •
Coherence between the two sides of the road. Reduction in air pollution. Good outdoor events. A quality shopping district – no tat. Maximise the benefits of the different visitors to the two neighbouring areas. International students and their parents are very wealthy. Lots of pop-ups for concerts and events – mix the institutions with the retail. Café society for residents, not just tourists. Better urban design for pedestrians and cyclists. The park should be celebrated more.
• • • •
Views on a BID Property owners and funders Support • • • • • • •
General consensus that it would be a good thing. Need a very strong case for investing in it. Good to get the two authorities working together . Strongly support. Support. But must be commercially realistic. Would support if we know what we would be getting. Worked with North Bank BID and can see benefits. Support the concept and see value and progress made by BIDs.
•
Fully support the concept of a BID. As a neighbouring estate, wouldn’t want to be part of it but would want to work with it. We all have a responsibility to the wider area. Would want the BID to end before our estate unless persuaded otherwise. Support in principle if it improves the environment for retail, residents and landlords. Support the concept. Planning more investment in the area and a BID would help to improve the general appearance of the Brompton Road. Can see the benefit of a BID to coordinate activities but this isn’t the best time to form one. Everyone is under great pressure. Landlords should take the lead because there are just one or two dominant retailers.
• • • •
Davout & GJR, May 2019
• • • •
Support in principle but how will it work in practice. Concern that residents criticise business so not certain how all will work together. Concern that residents want to limit visitors but businesses need more. Would support depending on where it goes. If goes down resident route of restricting visitors, wouldn’t support. Business rates are crippling – so a difficult time to ask for more.
Priorities •
Good to get landlords to agree on an aspiration to create a hub. This is the key to future success
• •
Focus on the north side. On the south, limit itself to public realm issues. Voice of reason. Needs progressive view and emphasis on deregulation And Reducing red tape.
•
Set strategy, agreed by senior decision makers in councils so that it overrides micro planning issues.
• •
Public realm art. We already spend a lot of money keeping the area clean so don’t need additional BID services. We need a different planning regime – there is no coordination as an area. Public realm and mix of shops. Don’t need marketing. Budget too low for input all along the Brompton Road. So focus on security, widening pavements and reducing business rates. Need to ensure smaller local shops are retained and added. So BID needs a way of representing their interests if they are excluded because they fall below the RV threshold. BID needs to involve residents so they know what is going on. But residents now are very transitory (international and not there a lot). Need to focus on improving the area as a whole as a retail environment. Work towards creating a high-end retail district.
• • • • • • • • •
Not much can be done about transport. Be a gatekeeper, curating the area to get more quality retail. BID should be the vehicle for delivering a strong vision.
Amenity and resident groups and local councillors Support • • •
Fantastic idea – can’t be enthusiastic enough Will participate but can’t pay. Welcome the BID and the Cadogan initiative. We have loads of big businesses but no coordination.
• • • • •
Very definitely welcome it. Lost patience with RBK&C. BID should be the vehicle for delivering a vision. In favour of BID. The councils have CIL money which could be spent on achieving a vision. Support a BID but must have a balance with resident interests. Support and want resident involvement.
Davout & GJR, May 2019
•
•
Oppose BIDs. Undemocratic. Can overrule councils. Ignore residents’ views. No confidence in a BID run by Cadogan. Cadogan wasted resident time by consulting over Sloane Street then ignoring their views. Would support a BID if it led to more local shops and amenities.
Issues • • • • •
Ensure WCC and RBK&C are equal partners Align BID with 10 objectives in the neighbourhood Plan Avoid duplication or structural conflict. Need to involve local communities and keep them informed. Business has not been good at including residents in their strategic planning.
Working with the community •
The Neighbourhood Forum is only quorate if business is present – so business has a structural veto. But not had a single row in four years.
• • • • • • •
Minimum – resident representatives as observers on BID Board minutes should be public Harrods are very good at involving the community. We welcome being consulted. Would like involvement in the BID – on board or advisory. We bring a lot of knowledge. Would like to be pro-active not just reactive. BID is business led – how can residents get involved? Need a body that includes councillors, residents, property owners and businesses.
Priorities • • • •
Get businesses working together in the same direction. Environment, crime, traffic, monolithic culture. Strategic vision. Set out an idea of what the area should look like. Street security.
Neighbouring institutions Support • • • •
Support and welcome. Support in principle if linked to South Kensington and working together. Support BID – it’s absolutely right. It should manage the area a bit like the Great Estates. Fully support.
Priorities • • • • • •
International visitor marketing. Strategic vision, aspiration and advocacy to deliver it. Street management – particularly enforcement of licences. Cross borough advocacy. Working with councils and TfL. Vision and ambition. Link businesses with the museums through collaborative activities.
Davout & GJR, May 2019
Appendix C Retailer Interview Results Total of 52 businesses have been visited and interviewed: Lacoste, Ted Baker, Miss Sixty, Burberry, Top Shop, Guess, Ela, Pinko, Tommy Hilfiger, Hugo Boss, LK Bennett, Emporio Armani, Reiss, Zara, All Saints, Porsche Design, The Kooples, Russell and Bromley, Crockett and Jones, Cocinelle, Sunglass Hut, Watches of Switzerland, Furla, Waitrose, Sainsbury’s, TWG Tea, Nespresso, Luxury Living, Divertimenti, Bang and Olufsen, Boots, Hayatt Pharmacy, The Flower Bar, Caroline Castigliano, Rochester Big and Tall, Bunch of Grapes, Mamounia, Tattersalls Tavern, Michael John Hairdressers, Sanrizz, Caffe Concierto, Illy, Paul, Elan, Natwest, Barclays, Hamptons, serviced offices: 101 Brompton Road, Montpelier House, 160 Brompton Road, 100 Brompton Road, Princes Court. 17 Fashion retailers, 2 footwear retailers, 4 accessories retailers, 3 supermarket or food retailers, 4 electrical or household retailers, 2 health and beauty retailers, 1 florist, 2 specialist/niche retailers, 3 Pubs / Restaurants, 2 hairdressers, 4 Cafes, 2 banks, 1 estate agent, 5 Serviced offices / buildings.
Business Name
Summary of interview feedback
The Kooples
Would be good to have a way to interact with other businesses – the manager has been in position for 18 months and only recently communicated with another manager along the road. Theft and lack of communication between the stores are key issues together with a significant drop in footfall - both local and tourist traffic. Tourism is both a good and a bad as it drives footfall but often limited spend. Knightsbridge Estates are very quick to respond to issues as they arise. Would support a BID to help them with theft and operational issues and marketing to promote both the area and business community. Positive
Porsche Design
Supports the idea of a BID and likes the idea of group to assist with communication between businesses and support on theft related issues. Theft is a problem as their stock is not security tagged, but they have a security guard at the door. The security guards generally know each other and communicate, but not all shops have security guards. They have some problems with beggars in their doorways and associated mess with homeless. Brompton Road can be expensive, and roads can get quite busy. Tourism is both a good and bad point as there can be a lot of “window shoppers”, but equally when there are lots of tourists there is a lot more footfall. Has more recently seen a drop-in footfall and would value a BID assisting the area promotion. Positive.
Davout & GJR, May 2019
All Saints
All communications regarding BID matters are channelled through head office. Generally, very happy with the area, the staff have all been at the store since it opened - they think it is a great area and the trade is generally good. They have no issues with theft or beggars. Have seen some drop-in footfall over recent months and if a BID could help with this then that would be good. Knightsbridge Estates are a good element of the area as they promote it as a good place to visit and shop. Undecided.
Boots
Would love support on issue of theft and homeless / beggars in the area. Their biggest problem is theft, manager has ‘never known anything like it’ and they have taken some drastic actions to help address. As they are a well-known brand they don’t really suffer from any drop-in footfall or various changes in tourism but have noticed a general decline. Everything in the area is generally good. Positive.
Crockett and Jones
Support to drive footfall would be great as they are a luxury business and have seen a real drop in footfall – people choosing to different areas of London. Other businesses closing has not helped this position. Tourism has changed and not seeing the types of tourists that buy their product. Generally, the area is good. Too many coffee shops in the area that don’t support the retailers as they encourage visitors rather than shoppers. A BID that supports the retailers by raising their profile with marketing etc would be great. Positive.
Zara
Theft is a huge problem as is pickpocketing from their customers, even with a security guard they still have a problem. Generally, they are happy with the area and have not seen any noticeable drop in footfall, could be because they are a chain and well-known brand. A BID that could help with the issues around theft would be a good thing, security being the major concern. Positive.
Reiss
No visible policing and this is key for them both as a business and for their staff as with no security guard they have to challenge shoplifters, which could put them in some danger. The area in general is good, but they have seen a footfall drop over recent months and this obviously affects their profits. The thieves are brazen and despite reporting it they have not seen the police in attendance. A BID that helps with theft and security issues would be very well received and would help the area as a whole. Positive.
Davout & GJR, May 2019
Coccinelle
Anything that supports the businesses and helps the area improve is definitely positive. Has seen a drop-in footfall and tourists have changed, they get drop in visitors that just look rather than buy, families rather than people coming for specific items. Shops closing has also affected this as less people are coming to the area. Theft is a big problem as well. If a BID could improve the area by promotion and raising its profile as well as supporting with theft issues that would be great. Positive.
Bunch of grapes
Generally, they are happy in their location and think it is a good place to be. Development in the area is a problem as it makes it harder for people to find them. Theft from customers is a problem. If a BID could support them on crime issues it would be a good thing. Undecided.
Divertimenti
Familiar with similar types of organisations and think they are good. Footfall is an issue and anything that could drive this would be well received. The road is poorly maintained in the area outside their shop. Would appreciate additional cleaning as there are areas of graffiti that are not being removed. Homeless and beggars are an issue too. They would support a BID that helped to raise the profile of the area with additional cleaning and maintenance of the roads and public highway. Positive.
Elan
Generally, very happy with the area and no problems with theft or begging. Their biggest issue is the red route directly outside their premises and it can affect people collecting orders or deliveries to the shop so something / organisation that could offer some help with this would be great. Undecided.
The Flower Bar and School
They don’t really have any issues with the area at all. Couldn’t identify good and bad things about it. As they are the only flower shop on the road, they have probably very different concerns to any other businesses. The one thing that they feel a BID may help with is to raise the profile and market them to the locals, as they sell fresh flowers it is not something that tourists are looking for and so all the tourist footfall doesn’t really impact them. Undecided.
Emporio Armani
Neither negative or a positive feeling towards the area. Do have some problems with theft but not so many. The main issues is that businesses are closing, and this has caused footfall to drop, still see the tourist trade but a drop in recent months. If a BID could help to bring businesses back to the area to support the ones that are established, then they would be very happy to engage with it. Positive.
Davout & GJR, May 2019
Nicholas Anthony
Has seen a definite drop in local trade, feels they are shopping elsewhere Feels that the area needs a revamp and promoting the fact that it is essentially a design area. Too many coffee shops and these do not bring the right type of trade to the area, tourists drop in but do not purchase. Also, more ‘flagship’ businesses that bring local people back to the area and not just tourist trade. Marketing would be the key thing for any BID to embrace. Positive.
Michael John Hairdressers
Business closing and moving to Sloane Street in 10 day. Main issues - area is dirty, footfall is down, shops are closing, profile of the area is falling with too many coffee shops and directly in front of them all they can see is McDonalds. Undecided.
TWG Tea
Support on security issues would be key. Suffer with theft and have even had theft of cash from their till. Have seen a decrease footfall. Key issues would be an organisation to support with matters of crime and the marketing / raising profile of area / promoting the established businesses. Positive.
Waitrose
Manager has previous BID experience being involved with Bayswater in the past and believes the concept would really work in Brompton Road to help communication between businesses if nothing else. Key issues to the area are theft and card fraud. Seen rough sleepers rise three-fold over the last year. Footfall is noticeably down, and empty shops doesn’t help. Generally, the key areas for the BID to address would be security and support on theft and rough sleeper issues. Positive.
101 Brompton Road
Suggested approaching for some feedback during the later stages of the initiative. Undecided.
Caffe Concierto
Communication and discussion to be channelled through head office. The biggest problem they have is gypsies in the area coming in and leaving without paying and sometimes trying to beg or steal from their clientele. Feel that a BID that supported on this element of security would be helpful. Undecided. Unable to speak to any management. Happy to communicate via email. Undecided.
Natwest
LK Bennet
Has seen a dramatic drop in footfall in last 12 – 24 months. Theft from the store is a big concern and there are a few known thieves in the area that are recognised, and the store has to remove them. Feel they have no support or way of chasing up crime matters. An organisation that helps with security issues would be greatly appreciated as well as help with marketing and driving footfall. Positive.
Davout & GJR, May 2019
Watches of Switzerland
Loss of trade and decreased footfall has been noticeable over recent times. Help with raising the profile of the area and making it more of a destination for people and shoppers would be valued. Pedestrianisation of Brompton Road could help with making the area safer for shoppers as there is a lot of road traffic and makes the area less attractive to people. Undecided.
Hugo Boss
Theft is by far their biggest issue and the thieves are very brazen. A group where retailers could share information about known thieves in the area, support on security matters would be well received. Have seen some increase in rubbish in recent months and there have been some cleansing issues. Increased marketing to drive footfall and the positioning of Brompton Road as a destination would be great. Positive.
Tommy Hilfiger
Reduced footfall last year is a big issue. Thieves are very bold as well as being very ‘cheeky’ bringing their children in with them. An organisation that helps with marketing to drive footfall and helps with anti-crime measures would be welcome. There are also coordinated groups of beggars who make people feel uncomfortable about visiting and it is difficult to move them on as they often return some time later. Positive.
Russell and Bromley
So many issues to identify. Reduced footfall is noticeable as the store is very quiet on some days. Theft and beggars has increased and an organisation that offers a coordinated support on this would be very well received. Efforts to raise the profile of the area would be great - maybe traffic free days, later opening hours for a retail event, loyalty schemes etc. Later opening hours on the underground. Positive.
Pinko
Reduced footfall is a concern and an organisation to help with this would be great. In the past they have operated a loyalty scheme between like retailers and anything that brings back those kinds of ideas would be good. The area is less glamourous than in the past and it is losing its identity and profile so raising this again would be helpful. They do not have problems with theft as the Harrods security guards cover them as they are next to the Harrods car park. Undecided.
Nespresso
The streets are dirty. Coordinated groups of beggars is a worry and affects the profile of the area and the attractiveness to shoppers as well as the safety of the staff working there. The profile of the area has dropped - less high end now and begging and theft has contributed to this. Footfall has definitely decreased and an organisation that would help to drive this up again would be great. Undecided.
Davout & GJR, May 2019
Hayatt Pharmacy
Begging in the area has definitely increased and they have seen an increase in theft from their stores. They have seen changes in footfall, but not dramatically but they have noticed the closing stores, and this has affected customer numbers. The area has definitely changed in its profile. Undecided.
Hamptons
Definite increase in number of beggars in the area and they seem to be very coordinated and working in groups - begging from customers in coffee shops doesn’t portray the area very well. They don’t really suffer much from theft as they are an estate agent. They have noticed stores closing in the area and stores changing ownership, which is changing the profile of the area. Undecided.
Caroline Castigliano
Noticeable increase in beggars in the area and some empty shops is changing the profile of the district. They don’t have problems with theft as the store doors are kept locked. Definite change in the ‘feel’ of the area and which affects the level of customers. Undecided.
Ela
Security is the primary concern, there are no visible police or cameras in the streets. Beggars and rough sleepers have noticeably increased in the area. They have had incidences of their customers being mugged and would welcome an organisation that would support in security matters. Have seen some decrease in footfall but security is their primary issue. Positive.
Sanrizz
Decreased footfall over the last year, so anything that drives this is of interest to the business. Something that raises the profile of the area would also be of interest. Shop closures an issue. Undecided.
Bang and Olufsen
Decreased footfall over recent years is a big problem that affects all the retailers, both from local and tourist trade, so an organisation that could deliver marketing support to boost this would be well received. Construction and station closures are a negative to the area. Marked increase in beggars which move in groups can be intimidating. The profile of the area has changed, shops closing has had an influence on this, now feels like there is nothing special here, just like another high street so an organisation that would help to relaunch the identity of the district would help. Positive.
Davout & GJR, May 2019
Sainsburys
Theft and begging (particularly in groups) has definitely increased in recent years. It seems that shops close and coffee shops appear and so the profile of the area has changed and lots of construction also has changed the feel of the area. The district has gone downhill a lot in recent times so focusing towards a cohesive organisation to combat the problems in the area would be well received. Positive.
Illy
Theft and beggars are the two areas they would like support on and would be very happy if there was an organisation which could work with all the businesses along Brompton Road to improve security and prevent crime. Undecided.
Guess
Area is dirty and there is much more rubbish than in the past which doesn’t create the right impression to shoppers. Theft from customers and the store is a major concern and an organisation to stop this or significantly reduce it would be well received. The area feels less safe generally with the gangs of beggars around and staff members feel this when they takes there breaks etc. Support on general safety and security measures for people in the area is also needed. Decreased footfall has meant that they are not hitting their sales targets and this needs to improve. Help promoting the area and driving visitors would help. Positive.
Luxury Living
Moving in a couple of months – main reasons are the area is scruffy and untidy, lots of noise from traffic and construction, the areas profile is changing and want a better location for their business. Undecided.
Burberry
Have had some problems with theft in the past but have put their own measures in place to combat this as much as possible. Have seen a marked increase in beggars in the area. Security and anti-crime measures are the primary concern. This could be helped by re-branding the area or raising its profile again. Undecided.
Top Shop
Theft from their customers is a big problem and there is no visible security or police presence. Reduced footfall has been noticeable over last year or two and affects their profits. Lots of beggars in the area which seems to have increased significantly in recent months. Positive.
Montpelier Directed to Head Office as standard policy. Building Manager confirmed owners have a number of properties in the area but would not connect, House, 106 Brompton Road referring us to their website. Undecided.
Davout & GJR, May 2019
Miss Sixty
They have seen a reduction in footfall and any organisation that could help with this would be well received by them and probably most other retailers as well. Promotion of the stores and raising the profile of the area would be greatly received. Some problems with theft but not too much and have noticed more beggars in the area. Positive.
Rochester Big and Tall
Have seen a marked drop in footfall as well as businesses closing and cheap shops and cafes coming in their place. The area is not as high end as in the past and people are not coming here as much as they were to buy from the types of shops that Knightsbridge is known for. Believes that if it could go back to being exclusive and boutiques then it would raise the profile of the area and bring back the right types of customers. Have seen more begging and rough sleeping in the area which again doesn’t create the right impression. Hotel up the road has been closed for approximately a year and due to re-open next month, so this could boost the footfall to the area. Also, when the tube station is relocated this could also help. Positive.
Mamounia
Their biggest concern is theft and the beggars. They are still quite busy due to the nature of the restaurant, but equally they attract the beggars as many are affluent Arabs and are prone to giving money to beggars, which then brings more. These beggars also steal from restaurant clientele. They feel that the area is not as clean as it used to be and the profile has changed, not as exclusive as before and it is becoming more like a second Edgware Road. Positive.
160 Brompton Road
Advised all correspondence should be directed through their information e-mail address. They have their own security so don’t really have problems with security type and they are not retail so don’t suffer from theft. They are aware that there are more beggars in the area and that there are some issues with rubbish and vermin. Any more information and thoughts should be directed through the head office e-mail. Undecided.
Sunglass Hut
Despite being a small unit, they have problems with theft as their items are easy to grab. They also are aware of the increase in beggars in the area and they are quite brazen, some using tricks etc. to steal from passers-by. They have noticed less footfall in the area and this in addition to theft is their major concern. Positive.
Davout & GJR, May 2019
Barclays
The bank is aware of increased begging in the area and theft and use of distraction scams to steal from the public. They are very keen to get involved in the community and feel that something that could tackle the local problems as well as create a cohesive local business community and makes it more successful for all would be well received and they would be very keen to take a part in this. Positive.
Ted Baker
Theft is a problem, but they have their own ways of dealing with this by placing staff near the front of store to hopefully deter shoplifters. They have seen a marked drop in footfall especially with shops closing and not being replace with like-for-like shops it is changing the area and this could also be affecting the footfall. Something that raises the profile of the area and drives customers in would be well received. Positive.
Furla
Drop in footfall is their primary concern. An organisation that could drive this and support the retailers would be well received. A few incidences of theft but not many and it is not their primary concern. Undecided.
Tattersalls Tavern
Have seen a steady drop in footfall over recent years and knows, through talking to neighbouring businesses it has been the same for all. Feel they have a steady trade and the footfall drop hasn’t dramatically impacted them. Is aware of more theft and begging in the area in recent times, but generally manages to keep the beggars out of the pub. Undecided.
Lacoste
Footfall is biggest concern, they have seen this drop dramatically in recent times. They don’t have too many problems with theft as they tend to have their own procedures and staffing levels to combat this. An organisation that could drive footfall and raise the profile of the area so that more exclusive brands and stores are back on the street rather than souvenir shops and cafes would be well received. Has seen more begging and beggars in groups over recent months. Positive.
Princes Court
Didn’t speak with anyone following two visits.
Paul
They have seen the area changing a bit with shops closing and more cafes popping up. They see more groups of beggars on the streets now and hanging around cafes etc to beg from clientele. Aware there are less people, but it is not dramatically affecting their business. Something to raise the profile and make it more desirable place to be and shop would definitely help. Undecided
Appendix D Business Improvement District Model Davout & GJR, May 2019
Governed by Government legislation and regulations, Business Improvement Districts are statutorily established once voted for by the majority of businesses in an area and have a maximum term of five years before returning to their electorate for renewal. Once a majority vote had been achieved, the BID levy becomes mandatory on all defined ratepayers. The ballot needs to satisfy two tests – a majority in number of those voting and a majority in proportion of rateable value of those voting. The BID levy can only come into effect if these two tests are met. The BID levy is then applicable to all eligible businesses.
BID sector operating environment There are over 300 BIDs in the UK, approaching 10% more than 2017, suggesting an increasing benefit to the local business communities where BIDs are operating. There are currently c50 BIDs at a development stage, double that at the same time in 2018 further confirming their increasing popularity, not just amongst the business community but within the public and third sectors given the significant reductions in public funding over the past 5-10 years. In the past twelve months c70 BIDs have come to ballot, either new or at various stages of their term. c30 new BIDs came into being during the last year. These new first term BIDs also show that there is a continued growth in smaller, and different sorts of BID, with 10 of the 27 having fewer than 300 hereditaments. Five BIDs failed at ballot in the past 12 months, two at renewal and three for a first term. The overall success rate for the 513 ballots from 2005 to July 2018 was 97%. The average turnout for ballots is at 46%. Also 46% of BIDs have obtained a turnout of 45% or more, and 65% obtaining a turnout of 40% or more.
Funding The total annual BID levy currently raised across the UK is £110m; the smallest BID collected £18,500 per annum and the largest collected £3,979,000. Half of all the BIDs have a levy income of £246,221 or less. With 120,735 hereditaments raising £110m, the average income is £916 per hereditament. Leverage is the amount by which a BID manages to increase its own levy income by gaining extra funding from other sources; this level of direct additional income compared to actual levy income represents an 11% (£13m) increase in funding above the BID levies in the country, a ratio of 1:10. 43% of UK BIDs report investment income as a direct result of their BID activity, £51m has been reported, the majority raised via Local Economic Partnership or commercial activity. The total BID levy, additional funding, and investment produces a figure of £175 as the total UK contribution from all BIDs. The three-year data for UK BID income and thus expenditure shows growth in levy income, additional income leveraged from activities and inward investment engaged in. 2016
2017
2018
Levy income
£75,579,270
£99,971,741
£110,575,380
Additional income Inward investment Total BID funding
£13,586,025 £20,376,357 £109,541,652
£7,973,578 £12,619,714 £22,361,472 £51,941,026 £130,306,791 £175,136,120
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Membership Half of all BIDs have below 400 hereditaments. The typical number of businesses falls between 263 and 569, with 33 BIDs having over 700 hereditaments. Numbers of Hereditaments Less than 200 200-300 300-400 400-500 500-600 Over 600
Numbers of BIDs 39 43 50 49 24 59
The total number of hereditaments across all BIDs is 120,735, a 12% growth over the last 2 years.
BID Rules The BID Levy Increasingly the BID levy’s applied to BIDs in the UK are becoming more varied, reflecting local environments better, the industry benchmark is 1 – 1.5%. As a sector there was a concentration in previous years at the 1% levy rate, but this is now less common with only 22% of BIDs adopting this rate; and 1.5% is becoming increasingly used, with 86 BIDs (28%). Rates do tend to be higher outside of London reflecting the level of business rates. 51% providing a discount for certain sorts of business such as charities. BID Levy rates in UK LEVY LESS THAN 1% 1% BELOW 1.5% 1.50% GREATER THAN 1.5% 2% GREATER THAN OR 2% BANDED TOTAL
% OF BIDS 2.62% 21.64% 14.43% 28.20% 8.52% 9.51% 1.64% 13.44%
NUMBERS OF BIDS 8 66 44 86 26 29 5 41 305 *British BIDs survey 2018
Revaluation of Business Rates A major business rates revaluation came into effect on 1st April 2017, following a re-assessment of all business properties in England, Scotland and Wales based on rental value as at 1st April 2015. It was a full seven years since business rates were last assessed, increasing the difficulty in predicting individual bills, and thus planning BID income from these new valuations. Some BIDs have used the
Davout & GJR, May 2019
new data whilst others have remained with the old lists until their next ballot and new business plans, or the appeals systems is complete and exact cash flow known. As of 2018, 39% of BIDs were using the new lists with varying effects, some with reductions as high as £100,000 in levy income, others on the other hand having had major increases, as high as £150,000. In general terms as rates have gone up in London and the south and decreased in the north of England, BIDs seeing a commensurate increase / decrease in their levy income.
Threshold & Caps The threshold of rateable value over which businesses are engaged within the BID constituency is a helpful tool to ensure a manageable number of businesses in an area are engaged as members and that small hereditaments are not unduly burdened by the BID levy. The industry would suggest c500 members is the ideal size for a BID to facilitate effective management, communication and delivery. The threshold is a rateable value level below which hereditaments are not charged a levy. The two main purposes of a threshold are to ensure that small businesses are not required to pay a levy and at the same time making sure that any business levy collection costs are never greater than the levy itself; this therefore exempts them from the levy whilst still ensuring they benefit from the services. The distribution of thresholds varies greatly, with 20% of BIDs having no threshold, the average being £8,500 and a peak for the larger BIDs (£400,000). 66% of BIDs keep their threshold at or below the level of the current government Small Business threshold rate relief figure of £15,000. 29% of BIDs apply a cap to levy payments, protecting some levy payers from larger than normal levy payments.
Governance Business Improvement Districts provide effective organisational models which bring the business community and public authorities together with wider stakeholders to work collaboratively for the benefit of defined locations. A BID should provide evidence of quality management and return on investment through service delivery with particular focus upon transparency, accountability, financial management and member engagement. The BID Board and management structure should oversee the activities of the BID. The BID Board The Board has the primary responsibility to oversee the conduct and performance of the BID and support management and staff, which are responsible for the day-to-day activities. In performing its functions, the Board primarily considers the interests of the BID to which its fiduciary duty ultimately resides, and then to its members. It also considers the legitimate interests of wider stakeholders such as statutory authorities, employees, suppliers, visitors and residents. The Board shall be proactive in advising management on a range of operational issues relating to the delivery of the BID business plan, and holding management accountable for decisions, actions, or lack of action. Ordinarily there should be a separation of duties between the Chairman and Board and BID team.
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Most Boards range from 8-14 members, with the largest at 21. There are over 3000 Board members across the industry. 84% of BIDs have local authority representation on their Boards and 67% of BIDs have property owners involved on their Boards. Board steering groups To help guide the BID in this pursuit and advise the Board as the principle decision making forum, Board steering groups should be set up to encourage participation and help to add value to the decision making of the BID. Common Board steering groups include: • Finance and Governance • Marketing and Promotion • Environment and Operations The BID Team The staffing levels of BIDs vary widely, as one would expect from organisations so varied in income and service provision. BIDs employ some 913 full-time equivalent staff, 11% of BIDs employ apprentices in a range of roles, primarily administrative, 76% of BIDs use external staff in a whole range of roles and over of 15% BIDs are managed entirely by non-salaried external consultants, thus saving direct staffing costs and ensuring a wide range of expertise that can be called upon – this is an increasing trend. 70% of BIDs operate with three or fewer full-time staff. One noticeable shift recently has been the increase in external staffing providers in operational roles.
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