Business North Harbour Annual Report 2017

1 JULY 2017–30 JUNE 2020

BUSINESS PLAN

30 JUNE 2017

ANNUAL REPORT

2

Business North Harbour Annual Report 2017

Executive Committee Board Our Gold Sponsors 2017/18

Greg Frittelli

Janet Marshall Deputy Chair PJCK Holdings

eputy Chair D Monsellier Law

Emma Monsellier

Katheryn Chivers

Chris Cooke

Lisa Hill

Peter Jollands

Peter Lamberton

Neil Tuffin

Terry Zouch

Chair Insurance and Lending Group (ILG)

Speedy Signs Albany

Maat Group

Eclipse Recruitment

Jollands Callander

McVeagh Fleming Lawyers

ASB

KiwiBank

Executive staff

Janine Brinsdon General Manager

Shirner Kenny

Communications and Marketing Manager

Sarah de Zwart

Relationship Manager and Transport Projects

Event Category Partner Programme sponsor Tracey Begovic

Project and Event Support

Dave Loader

Crime Prevention Specialist

Kate Thorpe

Membership Support/ Administration

Business North Harbour Annual Report 2017

Chair and GM report On behalf of the Executive Committee Board and executive team, it gives us great pleasure to report on the achievements, outcomes and progress made during the past twelve months.

It has been particularly pleasing to report an improved financial position as a result of stringent control over cost of operation and the attraction of unbudgeted support through local government grants. Recognition must be given at this point to the financial support of our gold sponsors. This group of business leaders has delivered value to both Business North Harbour as an organisation, and our members, and we thank them for their support.

This year we have progressed key strategic projects in support of continuing growth and investment in the North Harbour business district. As always, significant growth brings challenges to business efficiency, so we remain focused on leveraging positive outcomes from the increased scale and presence of the North Harbour region.

The first of the key strategic projects we delivered was continued advocacy on behalf of our members on the Auckland Unitary Plan Operative in part. This plan became operative in part on 15 November 2016. The results of our advocacy saw the eastern boundary of the North Harbour Business Improvement District (BID) rezoned predominantly to General Business, which provides greater flexibility for commercial operations for many property and business owners. The majority of members on the western side of State Highway 1 remained zoned as Light Industry, again giving flexibility and surety across their commercial/industrial activities. This was enhanced through our advocacy for a grandfathering clause within Light Industry zones, protecting existing use rights for those whose activities fall outside of the Light Industry permitted activities.

The second key strategic project was representing our members’ interests in relation to the Northern Corridor

The need for a strong regional identity has been highlighted through Auckland Council’s Annual Budget 2017/2018 consultation process.

Improvement Project, which is due to commence in 2018 subject to satisfaction of environmental court and transport agency board approvals. This $700 million project will increase access to and from the North Harbour BID, and also provide separation from, and improved access to, State Highway 1 north and south.

The need for a strong regional identity has been highlighted through Auckland Council’s Annual Budget 2017/2018 consultation process, and it will continue to be important as we negotiate highly contested funds to support local infrastructure investment during the council’s strategic Long-Term Plan 2018–2028.

With over 62% of business and commercial property owners* saying they want to hear about local policy changes that impact their business or property investment, our advocacy and mediation focus has been on providing options for both tenants and property investors, enabling business growth and prosperity within the area. We would like to thank all those members who engaged with this process, helping us to understand their position and represent them most effectively.

Along with the membership and programme growth that we have consistently delivered comes a greater administrative support workload. Special mention should be made of the Business North Harbour executive staff, who have continued to perform to expectation, especially during the significant period when we were recruiting for our new membership support/ administration role.

Leadership and governance for the Business North Harbour team continued to be provided by the Executive Committee Board and its specialist subcommittees: Economic Development and Strategy, Marketing and Member Services, Finance, and Transport and Crime Prevention. Thanks to the twelve elected local business representatives who generously give of their time and expertise to guide and develop Business North Harbour.

Business North Harbour’s Constitution governs the formation of this Executive Committee and its operational and strategic mandate. We seek approval from our members at the AGM 2017 for a change to the Constitution that would reduce the Executive Committee from the current maximum of 13 members to a maximum of eight plus Chair. We will also announce changes to the subcommittee structure at the AGM. These changes are being sought to increase the efficiency of governance while still representing the mix and diversity of the North Harbour BID membership.

We look forward to a continued partnership with our members and key stakeholders as we work together to ensure that North Harbour remains a desirable and prosperous location for business and investment in Auckland.

Greg Frittelli *Business North Harbour Membership Survey 2017

Chair

Janine Brinsdon General Manager

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Business North Harbour Annual Report 2017

The growth of North Harbour and why it is so important Regional growth

Population growth in Upper Harbour & Auckland

Since 2000, the original North Harbour business district, comprised of Windsor Park and North Harbour East (Statistics NZ Census Area Unit Definitions), has undergone phenomenal growth. The number of businesses located here has increased from 1,480 to more than 4,170, and employee numbers have risen from 10,000 to over 26,800.

7%

We surveyed our members in May/June 2017 in order to understand their needs and best advocate on their behalf on critical local projects, such as transport, crime prevention and access to investment. Our own ongoing programmes are designed to keep the area safe, accessible and thriving as it grows.

Demand for scalable local employment options in the area has continued, alongside significant population growth on the North Shore, and employment patterns are changing. In the 2017 membership survey, more than 72% of business owners report employing new staff in the past 12 months, while 63% are expecting to hire staff in the next year and 18% are considering recruiting over that period.

There has been significant diversification of industry sectors as a result of this growth, including development of the last greenfield land in the area. Members in the newest area of the BID, added in 2016, are particularly impacted by planning issues.

Alongside this has come massive growth in residential housing in nearby areas such as Millwater. Continuing development in

10%

5%

7.5%

4%

5%

3%

2.5%

2%

0%

1%

14.4%

17.6%

2016

2013

2010

2007

2004

-5%

2001

2016

2013

2010

0

2007

-2.5%

Wholesale Trade Professional, Scientific and Technical Services Retail Trade 12%

5.5%

Industries —proportion of filled jobs 2016

5.9%

Manufacturing Education and Training 10.8%

6.1%

Construction

Health Care and Social Assistance Administrative and Support Services Public Administration and Safety

8.3% 8.7%

10.7%

surrounding areas, as well as in the BID itself, requires us to take a broad view.

We have commenced lobbying Auckland Council, central government and NZTA for a strategic Albany/North Harbour plan to ensure that a wider strategy is in place.

Our ongoing constructive relationships with these stakeholders, including with members of council’s consenting and planning divisions, are particularly important as the impact of the Proposed Auckland Unitary Plan Operative in part is felt. This will be a significant project for the Executive Committee and staff in the 2017–20 period.

How does our growth compare?

When lobbying for infrastructure investment or representation in local government policy, it is vital for us to understand how we are tracking at Auckland and local board level. North Harbour BID is captured within the UHLB area, which is the narrowest geographic cluster available for the key economic data below.

The adage that ‘when Auckland is performing well, New Zealand benefits’ is supported by the key economic data shown here. Any concerns regarding Auckland’s performance must be around productivity, with Auckland at –0.6% vs national –0.2%,

All Others

Source: infometrics.co.nz

Business North Harbour continues to focus on managing the impact of this growth. To ensure that planning and investment decisions best reflect the needs of our commercial property owners, business owners and tenants, we made formal presentations to local and central government, economic development and transport agencies, and the Upper Harbour Local Board (UHLB). We aim to leverage the area’s profile on behalf of our significant business and commercial property owner membership, representing their interests in decision-making processes that may affect our area.

15%

2004

Rapid growth has also occurred in the combined area defined as Albany by Statistics NZ: Westfield Mall, Northridge Plaza and the commercial and business park area to the right of the retail block.

Employee numbers in that combined area—only part of which joined the North Harbour BID in our 1 July 2016 expansion— increased to 7,200 as at 2016. Even allowing for the businesses captured within the ‘Albany’ statistics who are not members of the North Harbour BID, we estimate employment numbers across the official BID to be 30,000 overall—and growing!

Employment growth in Upper Harbour & Auckland

12.5%

6%

2001

4

and reporting a lower than national growth in living standard.

Better news is that regionally we have been outperforming greater Auckland within key areas. In 2016, the UHLB area reported 5.4% growth in GDP vs Auckland’s 3.5% (source: Statistics NZ, Auckland Council).

Growth in the number of business units in the Upper Harbour area averages 4.4% p.a. compared with 3.4% p.a. across greater Auckland. UHLB area statistics show a growth of business units every year since 2010, even when the greater Auckland region declined 1.5% in 2010.

Overall, productivity within the UHLB area paints a more positive picture when compared to Auckland, but both regions are tracking behind New Zealand nationally.

Underinvestment in infrastructure, especially transport, is seen as a contributing factor.

Employment Employment in the area is marginally higher than in Auckland for medium–high skill level employment. Significant occupational growth compared to Auckland can be seen in education, ICT professionals, health, sales, legal, HR and specialist fields, as well as in general management.

5.7%

North Harbour (UHLB area) employment growth in 2016 was vs 2.7% nationally, showing the importance of continuing to grow local employment options.

Business North Harbour Annual Report 2017

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North Harbour Business Improvement District 1 July 2017

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Business North Harbour Annual Report 2017

Postcode of choice What makes North Harbour such a great place for investment?

We’re big enough to make a difference, but small enough to respond to your individual needs.

As the Auckland Unitary Plan Operative in part controlling the future of Auckland came into operation in November 2016, Business North Harbour continued to represent our members. Over the past twelve months, we attended three conference hearings in the Environmental Court in support of significant retail development appellants who were seeking to overturn Auckland Council’s decision to restrict parking associated with retail activities within the metropolitan and business park zones. The reason for our support is clear, as with no requirement for retail parking the growth of consumer demand would have a negative impact on the surrounding commercial premises who are our members. A decision will be known in October 2017.

Representing the views of more than 4,500 diverse members during any advocacy remains a challenge. However, we have to be aware that we have a regional responsibility to ensure the BID continues to function as efficiently and effectively as possible.

Cost of business was our consistent theme throughout our submissions on the Auckland Council and UHLB budgets 2017. The impact of a new council and mayor was not really felt during the initial period since the October 2016 election. However, much has been said about the tightening of the local government purse and we expect to see the implications of this new fiscal policy across all council services in the Long-Term Plan 2018–2028.

We wish to thank and acknowledge over 100 members who responded to our formal submission process, and we encourage all to be involved and to have their say during the Long-Term Plan consultation period. It will be critical that we identify projects of benefit for the North Harbour region prior to the plan being finalised. Once identified, we will lobby to secure the infrastructure investment our region requires in order to cope with the growth of population, and the associated opportunities and challenges this growth will bring.

$83,000 gold sponsorship July 2016–July 2017

Solid investment returns

DATE

Decreased costs—leveraging greater value Since 2010, Business North Harbour’s member programmes and services have expanded to offer more support for business networking, communication, economic development, transport management and crime prevention.

Gold sponsor and external grant funding growth in 2016–17 continues to make a valuable contribution. Gold sponsor and event sponsorship income increased by 33% against strong growth the year prior, highlighting the value these 14 businesses place on being able to build a strong local profile and business connections.

We received $20,000 budgeted support from Auckland Transport to assist in resourcing transport-related projects, and $9,000 from UHLB to support our economic development projects, namely C3. A further non-budgeted $5,000 was received from ATEED for a health and wellbeing workshop.

Auckland Council provided $20,000 for a research project for the wider Albany region, but these funds will be reported as funding in advance due to the project being delivered in the 2017/18 financial period. Please refer to the business plan for further details.

$3.103B

NORTH HARBOUR

MAIRANGI BAY

Sep-08

14.40%

8.58%

Mar-13

8.78%

12.11%

Sep-13

9.26%

8.66%

Mar-14

6.12%

10.20%

Sep-14

3.55%

8.06%

Mar-15

3.86%

6.99%

Sep-15

3.42%

3.53%

Mar-16

4.86%

5.00%

Sep-16

3.39%

4.33%

Mar-17

6.86%

8.10%

Colliers International Research

Metropolitan Industrial Vacancy Survey DATE

However, these greater options have not been funded by excessive increases to targeted rate levies per property—in fact, the cost per commercial property has dropped.

If your property is worth $1,500,000, your contribution decreased from $1,146 in 2008 to just $337 in 2017. In an age of increasing costs for business, this is good news.

CV as at 1 July 2017 for North Harbour BID

Metropolitan Office Vacancy Survey

Our commercial property investors not only have a good choice of tenants, but are receiving good rental returns due to demand for property. The negotiated changes to the Auckland Unitary Plan Operative in part are still in place at the time of writing this report, and will protect this position, with a change under General Business zone for stand-alone office space from 100m2 gross floor area (GFA) per tenancy to 500m2 GFA per site.

NORTH HARBOUR

MAIRANGI BAY

Aug-07

3.80%

2.09%

Aug-12

3.74%

3.40%

Aug-13

3.03%

3.52%

Aug-14

2.86%

1.86%

Aug-15

1.53%

0.62%

Aug-16

1.08%

2.44%

Aug-17

1.53%

1.68%

Colliers International Research

Business North Harbour Annual Report 2017

Our new identity

Communicate

The Business North Harbour brand was released in February 2016, and has become well established across the BID. Signage has been erected within the expanded area, so that the additional 324 members who joined the North Harbour BID on 1 July 2016 can clearly identify with the Business North Harbour brand.

As to be expected with the website URL change, there was a decrease in visitor traffic from a total of 46,282 in 2014–15 (source: Google Analytics). That loss of traffic has been reversed with a full year of businessnh.org.nz traffic available for analysis. Website traffic has increased 20% over the past twelve months. The new website layout has been well received, with page views per session lifting to a very creditable 4.20 from 2.87 last year.

Our online readers are spending 3.4 minutes per session, up from 2.15 per session in June 2016 (source: Google Analytics).

The Connect, Communicate, Collaborate strapline reflects the key priorities of our members (Business North Harbour Membership Survey 2017), and also ties together our core programmes.

The decision to invest in a membership management platform was brought forward in the 2015–16 financial year. Unfortunately, the CRM project timeline has been protracted, as the original platform was not able to provide our members with the functionality we specified. A new supplier was appointed in January 2017, with the final element of the project, a membership portal, due for release June–August 2017. The aim of the CRM remains unchanged, with the priority being the delivery of a robust and streamlined membership database platform and to enable the collation of confidential economic data on a macro and micro level.

There was some risk associated with rebranding from North Harbour Business Association (NHBA) to Business North Harbour, as it can take time for a new identity to become established.

The continued growth of Facebook (with a 76% increase in likes) has been supported by paid reach, but the bulk of our growth has been organic.

Our LinkedIn followers growth target was 140%. Although we didn’t meet this target, there was an overall increase of 20% across likes/comments and shares. The goal for 2017/18 is to use specialist content and groups to drive readers to our LinkedIn platform.

We failed to hit the ambitious growth target of doubling our Twitter followers, with only a 10% overall increase. This will be addressed through a new social media campaign management tool available through our CRM system in 2017/18. We will also monitor progress from the baseline position of 1,496 profile visits, utilising a new Twitter feature.

FYI magazine was produced as planned. FYI is the only publication to be posted to all business owners within the North Harbour BID as well as the 2,500+ commercial property owners. It provides access to both groups of decision-makers. Overall themes included new technologies for a new business age, business continuity, building solid local business relationships, and understanding changing consumer and business client demands. In each issue, we featured professional development articles from local and industry experts. The publication also provided members with advertising at highly competitive rates, to promote their company to business and property owners, plus their employees.

Our e-newsletter, Your Business North Harbour, was delivered 97 times, with content covering general news, programme updates and events promotion. Following a review in January 2017 we reduced the frequency of the e-newsletter back to once per week.

The current e-newsletter subscriber level is 3,908. These campaigns attracted 2,000 new visitors to our website over this period.

External media partners We continued to have a monthly column in the North Harbour Networker. Columns in Channel magazine have been timed to align with major news and events. We featured in the North Shore Times eight times over the past twelve months, providing editorial coverage of our core programmes (transport, traffic management and vehicle security), the C3 programme, our biannual Business Expo, and the growth of our BID area. We have established a relationship with the New Zealand Herald and NZ Business magazine. Media presence at major events has increased.

Connect Our focus for the past twelve months has been to provide members with access to speakers who would normally be unavailable to them as individuals.

Keynote speakers at our three Business Lunches/Breakfasts were Dr Hartley Atkinson, founder of North Shore company Maxigesic, the Rio Olympic 2016 athletes, and John Ball, Managing Director of Small-to-Medium Enterprises for Google Australasia. These speakers encouraged attending business leaders to look at their operations and markets with fresh eyes. We also hosted New Zealand’s Prime Minister Rt Hon Bill English, who presented to over 235 business leaders on the state of the NZ economy and the government’s priorities in the 2017 period.

We fully delivered on our connectivity KPIs.

17,200

FYI magazines printed

1,159

attendees at key networking events

7

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Business North Harbour Annual Report 2017

Collaborate Enabling growth The sixth Business Expo was held at QBE Stadium in May 2017, attracting more than 650 visitors to 96 exhibitor stands. These results proved that the decision taken in 2016 to host the Business Expo in alternate years to the conference was correct.

This event remains a showcase for local business, drawing visitors from the North Shore and CBD. The Expo was promoted on Eventbrite, with pre-registrations helping to streamline organisation and improve the visitor experience.

Based on feedback from both the September 2015 and May 2016 events, Business North Harbour approached UHLB for financial support to develop an online portal that would provide a 24/7 link between students seeking work experience and businesses looking for a helping hand for projects.

UHLB provided $9,000 of funding from their Economic Development portfolio, for which we thank them. The scoping and delivery of the C3 online portal took place in the first half of 2017, and it was successfully launched at the August 2017 C3 expo. Twenty-three local businesses exhibited at this expo, with more than 200 students in attendance. The portal now has in excess of 100 students registered and 51 businesses seeking an ideal match.

This will continue to grow, and we look forward to celebrating more successful introductions over the coming 12 months.

Building capability One Day Sale Business North Harbour’s One Day Sale took place on 26 November 2016, and was another phenomenally successful event for retailers and shoppers. Gradually increasing the exposure and promotion of this event year on year was the main goal, thereby bringing more value to business members.

With nominal additional investment in the event in 2016 compared to 2015, we: • Increased the size of the shopper’s guide, from an A5 foldout to a full 16page catalogue, and increased the print run from 10,000 to 35,500.

• Reached a larger audience through print advertising—25,500 shopper’s guides were distributed via Channel magazine insert, and advertising was placed in Hibiscus Coast Matters, Ponsonby Times, North Harbour Networker and North Shore Times.

• Reached an additional 27,391 registered readers via online advertising on North Shore Times and North Harbour News websites, and a further 4,626 people through paid advertising on social media. Created a One Day Sale event on Facebook, reaching a further 2,276 consumers.

C3 launch The C3 programme (Connect, Communicate, Collaborate) was initiated in September 2015 to bring together business and students, providing businesses with additional resources to deliver project wish lists, and giving students real-life experience of the business world.

120,365

potential One Day Sale shoppers reached through print advertising

Over the past year we stayed true to our 2016 commitment of providing seminars in alternate years at our Business North Harbour Conference and Business Expo as our main training workshops, rather than hosting individual events.

Our inaugural conference was hosted in August 2016 with an overriding theme of Human Resources and Organisational Development. We hosted 22 sector-specific exhibitors and attracted 100 visitors. While down slightly on the target of 30 and 150 respectively, the launch of this event was considered a success and will be repeated in 2018 due to demand.

Our conference keynote speaker was Diane Edwards, General Manager People Systems and Technology, Ports of Auckland. A highly regarded HR leader, Diane shared her experience and expertise with the audience and remained available to members during the day for questions.

Our ‘Attract and Retain’ HR panel consisted of Imogene Lomax, General Manager at enableHR, Jo Nicol, Organisational Development Manager at Fletcher Building, and local business owner Lisa Hill, Managing Director at Eclipse Recruitment.

Our compliance panel featured Diane Edwards, as well as Annette Paul, Assessment Manager for WorkSafe NZ, and Paul France, Branch Manager for ACC North Harbour Branch, who delivered timely messages on how to protect employees through compliance.

500

More than members and employees attended workshops and seminars

71% of businesses felt our inorganic recycling collection was an important service

The Business Expo seminars, held in May 2017, covered the topics of data security, how to use data to understand your customers’ behaviour and increase loyalty, and marketing. Seminars were presented by Dame Diane Robertson, Chair of Data Futures Partnership (a new government-appointed body charged with winning public trust for the wider use of data), Cyrus Facciano, Director at PwC Digital, Dina Hay, then Head of Customer Analytics at Sovereign, and Avram Deitch, Global Marketing Manager at Yealands Wine Group.

We also promoted local member-hosted workshops on our events calendar, facilitating increased connection and collaboration between members.

We hosted two St John workshops to upskill members with important lifesaving skills.

Both the two-hour and four-hour courses were well attended and will be offered again in late 2017.

Special interest groups Building on the outcomes of the 2017 membership survey, we researched the advice and guidance that would be most applicable to members’ businesses.

Marketing came through as a clear winner, at 59%. Health and safety was highlighted by 37% of respondents, with business planning close behind at 35%. Customer service, process and project management, people management, research and development, and financial advice made up the balance of areas identified in the survey. Through the period of the business plan 2017–20 we will deliver a series of workshops to give our members access to thought leadership across these key topics.

We hosted three North Shore Commercial Property Group (NSCPG) events last year featuring industry experts such as lawyers, bankers and valuers. Highlights were presentations from Stephen Town, CEO of Auckland Council, and Tony Alexander, the well-known BNZ economist. Networking amongst industry specialists was a further benefit the 300 attendees received through the NSCPG.

Social responsibility We continued to provide a biannual upcycling/recycling inorganic collection, in September 2016 and March 2017. While not free, the collection rate was significantly discounted and seen as a valuable benefit for the 47 companies involved. Community groups and local charities benefited from receiving goods that would otherwise have ended up in landfill. Of all goods collected, only 3.75 cubic metres went to landfill.

This innovative programme has been referred to by other business districts within Auckland and other local authorities throughout New Zealand as an example of business and communities collaborating effectively together to reduce landfill and unnecessary waste.

Business North Harbour Annual Report 2017

Building on existing programmes Keeping your business moving Our transport programme continued to focus on the challenges arising from the area’s extraordinary growth. With a rapid rise in business units and employee numbers, accompanied by a greater population in the surrounding area, issues such as congestion, access and lack of parking can cause problems for our members. We actively worked with Auckland Transport and NZTA to influence the management of current assets and priorities for new investment in and around our business district.

Auckland Transport should delay the implementation of paid parking until there is a viable public transport system in place to provide commuters with an alternative.

Management of current assets Increased use of carpooling and public transport by North Harbour employees, where available, would reduce congestion and demand for all-day on-street parking in the area, freeing up space for trade visitors and customers. For this reason, commuter education remains the backbone of our transport programme. More than 260 transport resource kits were distributed to business owners through personalised transport meetings, so that they could share information with their staff. We have also given one-on-one and group presentations to inform local employees about alternative travel options.

Auckland Transport have been monitoring the T2/Clearway usage on Constellation Drive since 2015. In August 2016 they commenced consultation to extend the clearway. We contacted all affected businesses, tenants and property owners to gain their feedback on our recommended permanent clearway, as we believe the loss of 46 on-street carparks in favour of free movement of 1200+ vehicles per hour, and reduced queue times for right turning traffic from Apollo Drive onto Constellation Drive, was a better and safer solution. Auckland Transport’s decision on our submission (December 2016) is still outstanding.

Paid parking consultation In May 2017 we consulted with over 80 affected property and business owners on Auckland Transport’s proposed on-street paid parking policy for the wider Albany area. In our formal submission, we were clear that Auckland Transport should delay the implementation of paid parking until there is a viable public transport system in place to provide commuters with an alternative.

14

group transport educational presentations reached

1,920 commuters

Public transport We acknowledge that public transport patronage growth will be somewhat limited until the new North Shore public transport timetable takes effect in 2018, but we have seen that there is a clear appetite for the use of public transport when available. During the year we distributed 59 new HOP cards, allowing commuters to trial public transport as an alternative to single-occupancy car journeys. We also distributed corporate HOP cards to five major employers in the area.

Business North Harbour provided a formal submission on the Public Transport North Network review in 2014. We supplied a further submission in 2016 following Auckland Transport’s publication of the postconsultation map. Following further feedback and member consultation, in January 2017 we formally advised Auckland Transport of 22 routes which we believed still fell short and did not meet the needs of our members (who had stated they were prepared to use public transport in their daily commute if a service was available).

Active modes We hosted three events for the February 2017 cycle month. Six companies participated, with 61 cyclists involved. This was a 100% increase against the previous year. While these numbers seem small, they compare favourably with other regions across Auckland for Auckland Transport– driven initiatives.

We also promoted the health benefits of walking on all our media platforms, to

$4,720 worth of preloaded HOP cards distributed

1,260

support Auckland Transport’s March 2017 walking campaigns. Over 16 companies were involved.

Representation We hosted a series of public meetings and Business Breakfasts at which our business and commercial property owners were provided with access to key local and central government transport decisionmakers. Auckland Transport and NZTA both exhibited at our Business Expo in May 2017, with experts available to discuss the Northern Corridor Improvement Project and the proposed paid parking review.

All print, digital and social media platforms were used to keep members and their staff informed about key projects such as the Albany Highway redevelopment, Tawa Drive clearway, and proposed Constellation Drive clearway.

We continued to lobby for improved traffic flow along Constellation Drive (October 16).

Auckland Transport has committed to testing peak hour signalisation of Apollo Drive and Hugh Green Drive roundabouts, with further locations to be identified by Business North Harbour in 2017–18.

In February 2017 we advocated for changes to Auckland Transport’s proposed pedestrian crossings in Apollo and Orbit Drives, resulting in increased commuter safety with minimum loss of on-street parking. These pedestrian crossings were completed prior to June 2017.

resource toolkits distributed to employers and employees to keep them current with transport, crime prevention and business support programmes

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Business North Harbour Annual Report 2017

Keeping your investment safe Since 2003, we have delivered initiatives aimed at reducing crime and security breaches across North Harbour.

In our 2017 membership survey, over 87% of respondents deemed the nightly security patrol as very important or somewhat important to their business. There was a decline in the value respondents placed on the resource kits, with only 23% now stating that the kits were considered very important to their business. This has triggered a review of the content and delivery of the information within the kits to ensure they remain relevant for our business owners and their staff.

It is important to note that as a result of the investment in our patrols and ongoing education of our business owners, their staff and landlords, North Harbour now benefits from one of the lowest crime rates in Auckland, and indeed New Zealand.

Trending crime Our Memorandum of Understanding with North Shore Police provides Business North Harbour with timely information regarding criminal behaviour and patterns within the BID. Two of the few areas of increasing criminal activity are theft ex cars and stolen vehicle registration number plates. Based on this trend, our Vehicle Security Programme continues to provide education and practical

SECURE PLATES

The North Harbour business district now benefits from one of the lowest crime rates in Auckland, and indeed New Zealand.

resources to reduce the number of incidents, protecting our members and their trade customers through increased awareness.

Over 5,000 Lock Your Car, Remove Your Valuables messages have been distributed to on-street parked cars over the past 12 months. This message has been repeated through translated resources in Korean and Mandarin to key retail hotspots aimed especially at the nighttime economy. Over 500 vehicles were fitted with secure number plate screws to prevent theft.

The nightly security patrol funded by Business North Harbour continues to monitor premises in the area. With every lapse in security (such as gates, windows or doors left open) the business owner is contacted by our crime prevention specialist. By

A FRIENDLY MESSAGE

For details about this free service email: crimeprevention@businessnh.org.nz

businessnh.org.nz 09 968 2222

5,000

1/08/16 4:53 PM

528

vehicle licence plates fitted with tamper-proof screws

Because it is important to understand the impact of crime across the wider North Harbour area, we have hosted meetings with stakeholders such as NZ Police, Auckland Council, UHLB, Westfield Mall Albany, Massey University and QBE Stadium. This sharing of information has resulted in more comprehensive preventative action across the wider community. NZ Fire Service and St John also now attend these meetings.

During that time, we have also protected the quality of our business district by managing the reporting of faulty street lights and the repair process (100 incidents), graffiti removal (97 incidents), reporting of suspicious vehicles (36 incidents), and the removal of illegally dumped or excessive rubbish.

We’re “beating the feet” to make your community safer

educational messages distributed directly to commuters: Lock Your Car, Remove Your Valuables

Community safety

Stacks of wooden pallets not only appear unsightly, but can be used by criminals to gain access to premises. Business North Harbour launched a pallet swap scheme in 2014/15 to match members who have surplus pallets with those who need them, providing a free way to dispose of unwanted pallets for some, and saving others the cost of purchase. This continues to be an important service—more than 66 new introductions were made over the past twelve months, resulting in 1,570 pallets being redistributed.

Contact Business North Harbour to have your vehicle registration plates secured for free.

BNH029 - Car Crime DLE 2016.indd 2-3

We have also continued with our practice of instructing Armourguard to pay specific attention to ‘hot sites’—premises that have been victims of crime or are at risk due to trending crime.

During the past twelve months, our crime prevention specialist visited 708 members to distribute resource kits and provide advice, empowering members to keep their staff and commercial assets safe.

REMOVE YOUR VALUABLES

Plates are removed from vehicles for petrol drive-offs and more serious crimes. The inconvenience of finding your plates missing is a time-consuming process to have them replaced.

following through on these lapses (25 in the past year, down from 76 in 2016), business assets are kept safe and investments protected.

4,732

reports received on ‘hot sites’

1,570 pallets

recycled

Business North Harbour Annual Report 2017

Financial Report Business North Harbour Incorporated Independent auditor’s report to the Members Report on the Performance Report Opinion

We have audited the performance report of Business North Harbour Incorporated (the entity), which comprises the entity information, the statement of service performance, the statement of financial performance and statement of cash flows for the year ended 30 June 2017, the statement of financial position as at 30 June 2017, and the statement of accounting policies and other explanatory information.

In our opinion:

a) the reported outcomes and outputs, and quantification of the outputs to the extent practicable, in the statement of service performance are suitable; b) the accompanying performance report gives a true and fair view of: i. the entity information for the year then ended; ii. the service performance for the year then ended; and iii. the financial position of Business North Harbour Incorporated as at 30 June 2017 and of its financial performance, and cash flows for the year then ended In accordance with Public Benefit Entity Simple Format Reporting – Accrual (Not-For-Profit) issued by the New Zealand Accounting Standards Board.

We conducted our audit of the statement of financial performance, statement of financial position, statement of cash flows, statement of accounting policies and notes to the performance report in accordance with International Standards on Auditing (New Zealand) (ISAs (NZ)), and the audit of the entity information and statement of service performance in accordance with the International Standard on Assurance Engagements (New Zealand) ISAE (NZ) 3000 (Revised).

Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Performance Report section of our report. We are independent of Business North Harbour Incorporated in accordance with Professional and Ethical Standard 1 (Revised) Code of Ethics for Assurance Practitioners issued by the New Zealand Auditing and Assurance Standards Board, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Other than in our capacity as auditor we have no relationship with, or interests in, Business North Harbour Incorporated.

Other Matter The financial statements of Business North Harbour Incorporated for the year ended 30 June 2016 were audited by another auditor who expressed an unmodified opinion on those statements dated 12 October 2016.

Responsibilities of the Board for the Performance Report

The Board are responsible for: a) Identifying outcomes and outputs, and quantifying the outputs to the extent practicable, that are relevant, reliable, comparable and understandable, to report in the statement of service performance; b) the preparation of a performance report on behalf of the entity that gives a true and fair view, which comprises: — the entity information; — the statement of service performance; and

— the statement of financial performance, statement of financial position, statement of cash flows, statement of accounting policies and notes to the performance report in accordance with Public Benefit Entity Simple Format Reporting – Accrual (Not-For-Profit) issued by the New Zealand Accounting Standards Board, and c) for such internal control as the Board determine is necessary to enable the preparation of the performance report that is free from material misstatement, whether due to fraud or error.

In preparing the performance report, the Board are responsible on behalf of Business North Harbour Incorporated for assessing the entity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board either intend to liquidate Business North Harbour Incorporated or to cease operations, or have no realistic alternative but to do so.

Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the performance report is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (NZ) and ISAE (NZ) 3000 (Revised) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this performance report.

As part of an audit in accordance with ISAs (NZ) and ISAE (NZ) 3000 (Revised), we exercise professional judgement and maintain professional scepticism throughout the audit. We also: — Identify and assess the risks of material misstatement of the performance report, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

— Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control.

— Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

— Conclude on the appropriateness of the use of the going concern basis of accounting by the Board and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on Business North Harbour Incorporated’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related

Contact details

Physical Address 12 Parkway Drive, Albany Officers Greg Frittelli, Chair Janet Marshall, Deputy Chair Emma Monsellier, Deputy Chair Katheryn Chivers Chris Cooke Lisa Hill Peter Jollands Peter Lamberton Neil Tuffin Terry Zouch Janine Brinsdon (General Manager) Auditors William Buck Level 4, 21 Queen Street Auckland CBD 1010 New Zealand Postal Address P O Box 303126 North Harbour 0751 Phone 09 968 2222 Email admin@businessnh.org.nz Website businessnh.org.nz Facebook BusinessNorthHarbour Twitter @BizNorthHarbour

disclosures in the performance report or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the entity to cease to continue as a going concern.

— Evaluate the overall presentation, structure and content of the performance report, including the disclosures, and whether the performance report represents the underlying transactions and events in a manner that achieves fair presentation.

— Perform procedures to obtain evidence about and evaluate whether the reported outcomes and outputs, and quantification of the outputs to the extent practicable, are relevant, reliable, comparable and understandable.

We communicate with the Board regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Restriction on Distribution and Use

This report is made solely to the entity’s members, as a body. Our audit work has been undertaken so that we might state to the entity’s members those matters which we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the entity and the entity’s members, as a body, for our audit work, for this report or for the opinions we have formed.

William Buck Audit (NZ) Limited Auckland 4 October 2017

11

12

Business North Harbour Annual Report 2017

Financial Statements Statement of Movements in Equity

Statement of Financial Performance For the Year Ended 30th June 2017

Note

Revenue

2017 Actual ($)

Targeted Rate

2017 Budget ($)

2016 Actual ($)

626,412

626,412

679,603

Membership Subscriptions

16,057

20,793

10,711

Grants Received

61,086

29,000

73,042

Sponsorship

83,217

Function & Events Income Advertising Income Total Income

Less Expenses

Employee Related Costs

Costs Related to Providing Member Programmes and Services Lease and Rental Expenses Other expenses Total Expenses

92,949

116,075

488

2,800

40,276

Interest Received

86,000

62,666

68,223

42,450

28,131

2,168

920,485

923,530

924,544

2

372,746

383,263

345,742

3

335,027

387,368

307,079

4

41,889

45,000

40,968

5

Net Surplus/(Deficit) Before Depreciation Less Depreciation Adjustments Depreciation as per Schedule Amortisation of Intangibles Net Depreciation Adjustment Net Surplus

61,643

811,305 109,180

67,646

70,239

883,277

764,028

40,253

160,516

14,968

25,000

23,674

8,900

-

2,467

26,141

24,600

21,563

$85,312

15,253

$134,375

Cash Flows from Operating Activities Cash was received from:

NHBID Targeted Rate Levy

Subscriptions and Other Receipts from Members

Sponsorship, Donations, Fundraising & other Similar Receipts Receipts from Providing Goods and Services Interest Receipts

Net GST Refund Received Cash was applied to:

Payments to Suppliers and Employers

Total Cash Flows from Operating Activities

2017 ($)

2016 ($)

Surplus & Revaluations Net Surplus for the year

Total Recognised Revenues & Expenses Equity at End of Year

85,312

-

138,757 134,375

85,312

134,375

$201,841

$273,132

Statement of Financial Position As at 30th June 2017

CURRENT ASSETS

Note

BNZ Cheque Account BNZ On call Account

2017 ($)

2016 ($)

184,260

166,185

19

35,250

5

BNH Targeted Rate Account ASB BNH Cheque Account

54,172

ASB BNH Savings (50) Account

24,852

ASB NHBID Targeted Rate Account

53,011

GST Refund Due

18,770 -

-

5,375

3,075

Accounts Receivable

73,809

24,838

Payments in Advance

-

1,548

409,851

250,206

36,515

49,163

Taxation

-

Credit Notes Receivable

14,245

Westfield Vouchers on Hand

103

Total Current Assets Fixed Assets

Intangible Assets Total Assets

7 8

12,633 49,148

367 -

173

21,533 70,696

458,999

320,902

59,264

BNZ Visa Account

1,099

1,074

2,168

Accounts Payable

68,365

17,161

2,024

4,452

11,270

155,553

133,815

(3,012)

10,267

486

(781,590) (812,684) 98,363

83,703

Current Liabilities ASB Credit Card

Accrued Expenses

Rent Incentive Accrual Receipts in Advance

Total Current Liabilities Total Liabilities Net Assets

(2,320)

Closing Cash

116,529

79,107

Total Cash Flows from Investing Activities Total Cash Flows

Revised Opening Equity

122,825

679,603

13,576

(2,320)

Cash at Beginning

(156,603)

2016 ($)

634,243

Payments for Property, Plant and Equipment Payment for Intangibles

267,132

Prior Period Adjustment

Total Non-Current Assets

Cash Flows from Investing Activities Cash was applied to:

2017 ($)

Equity at Start of Year

Non-Current Assets

Statement of Cash Flows For the Year Ended 30th June 2017

For the Year Ended 30th June 2017

-

96,043

220,377 316,420

(1,042)

(24,000)

(25,042) 58,661

940

18,096 166,634

-

21,575 3,508

257,158

47,770

$201,841

$273,132

257,158

47,770

Represented by: Equity

Retained Earnings Net Assets

201,841

$201,841

273,132

$273,132

161,716 220,377 The accompanying notes form part of this Performance Report and should be read in conjunction with the reports contained herein.

For and on behalf of the Association:

Greg Frittelli (Chair)

Date: 4 October 2017

Business North Harbour Annual Report 2017

Notes to the Financial Statements 1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

Business North Harbour Incorporated is a non-profit organisation registered under the Incorporated Societies Act 1908.

The entity has elected to apply PBE SFR-A (NFP) Public Benefit Entity Simple Format Reporting - Accrual (Not-For-Profit) on the basis that it does not have public accountability and has total annual expenses of equal to or less than $2,000,000. All transactions in the Performance Report are reported using the accrual basis of accounting. The Performance Report is prepared under the assumption that the entity will continue to operate in the foreseeable future.

The accounting principles recognised as appropriate for the measurement and reporting of earnings and financial position on an historical cost basis have been used, with the exception of certain items for which specific accounting policies have been identified. (a) Changes in Accounting Policies There have been no changes in accounting policies.

All policies have been applied on bases consistent with those used in previous years. (b) Property, Plant & Equipment The entity has the following classes of Property, Plant & Equipment: • Furniture & Fittings • Office Equipment • Plant & Equipment All property, plant & equipment is stated at cost less depreciation.

Depreciation of the assets has been calculated at the maximum rates permitted by the Income Tax Act 2007. (c) Intangibles Intangible Assets are amortised by the straight line method over the period during which any benefit is expected, not exceeding 10 years. (d) Goods & Services Tax These financial statements have been prepared on a GST exclusive basis with the exception of accounts receivable and accounts payable which are shown inclusive of GST. (e) Income Tax No provision for Income Tax has been made as there is no current or deferred tax payable. The Association is exempt from Tax pursuant to section CW40(1) of the Income Tax Act 2007. (f) Receivables Receivables are stated at their estimated realisable value. Bad debts are written off in the year in which they are identified. (g) Revenue Recognition Grants and donations are recognised as income when they become receivable, unless the Association has a liability to repay the grant if the requirements of the grant are not fulfilled. A liability is recognised to the extent that such conditions are unfulfilled at the end of the reporting period.

Interest income is recognised on a cash received basis.

All other revenue is reported when it is earned.

2. EMPLOYMENT RELATED COSTS Crime Prevention Scheme Salaries Transport Management Program Salaries Administration Costs Management Costs Marketing Costs Recruitment Expenses Staff Training KiwiSaver Contributions Accident Compensation Levy

7. PROPERTY, PLANT & EQUIPMENT

2017 ($)

2016 ($)

36,654

34,228

71,570

51,344

47,478 131,902 65,603 6,804 2,815 9,209

62,712 112,044 61,612 15,351 240 7,319

711 372,746

892 345,742

3. COSTS RELATED TO PROVIDING MEMBER PROGRAMMES AND SERVICES Crime Prevention Scheme Costs Transport Management Program Costs Business Development

2017 ($)

2016 ($)

72,222

56,497

13,939

11,229

248,866 335,027

239,353 307,079

4. LEASE AND RENTAL EXPENSES Rents

2017 ($) 41,889 41,889

2016 ($) 40,968 40,968

2017 ($) 8,872

2016 ($) 4,093

5,882

4,282

5. OTHER EXPENSES Accountancy Fees Advertising Audit Fees

Bank Charges

Bad Debts

36

1,605 950

Cleaning & Laundry

1,689

Computer Expenses

2,948

General Expenses

1,461

Board Support

Donations

Independent Election Services

-

9,085

10,255

-

1,000

6,903

5,912

Licences & Registrations

2,253

1,621

Repairs, Maintenance & Low Cost Assets Subscriptions

Telephone, Tolls & Internet Travel - National

Travel - International

1,080

989

1,561

7,137

7,461

470

4,519

Type of transaction

Relationship

Greg Frittelli

Board member of BNH and shareholder of Insurances ILG Insurance Brokers Ltd

Emma Monsellier Chris Cook

Board Member of BNH and member of McVeagh Fleming

Board Member of BNH and principal of Monsellier Law Board Member of BNH and director of Speedy Signs

17,693

15,373

(14,337)

(12,808)

3,356 1,529

2,565 2,678

147,529

147,529

19,492 11,751

31,243 19,091

$36,515

$49,163

$14,968

$23,674

Intangible Assets at Cost Accumulated Amortisation

2017 ($) 24,000 (11,367) 12,633

2016 ($) 24,000 (2,467) 21,533-

Current Year Amortisation

8,900

2,467

Total Depreciation for the Year

8. INTANGIBLE ASSETS

9. SECURITIES AND GUARANTEES

Business North Harbour Incorporated has the following lease commitments: 2017 ($) NonCurrent

Current Lease of Property

28,333

28,333

2016 ($) Noncurrent

Current

34,000

62,333

11. CAPITAL EXPENDITURE COMMITMENTS

At balance date there were no known capital commitments (2016: $0)

12. POST BALANCE DATE EVENTS

-

1,527

No significant events have occurred since balance date that would require disclosure in these financial statements. (2016: $0)

2,045

2,830

13. CONTINGENT LIABILITIES

61,643

70,239

9,042

6,810

-

1,500

At balance date there are no known contingent liabilities (2016:$0).

14. PRIOR ADJUSTMENT

Related Party

Katheryn Chivers

15,355 1,905

795

During the year there have been material transactions between Business North Harbour Incorporated (BNH) and related parties as follows:

Lisa Hill

(5,929)

13,667 1,688

21

6. RELATED PARTIES

Board Member of BNH and director of Eclipse Recruitment services

(7,617)

(128,037) (116,286)

Current Year Depreciation Total Property, Plant & Equipment

1,627

6,476

Printing & Stationery

21,284

10. OPERATING LEASE COMMITMENTS

-

682

21,284

1,726

Insurance

Postage & Courier

Current Year Depreciation Plant & Equipment At Cost Less Accumulated Depreciation

2016 ($)

There was no overdraft as at balance date nor was any facility arranged.

3,175

Meeting Costs

Current Year Depreciation Office Equipment At Cost Less Accumulated Depreciation

2017 ($)

1,561

-

Legal Expenses

Furniture & Fittings At Cost Less Accumulated Depreciation

Value 2016 ($)

2015 ($)

$4,928

$5,433

Recruitment

$1,460

$-

Legal advice re. crime prevention

$1,049

$429

Legal advice re. employment

$1,350

$-

Signage

$2,744

$-

In the prior financial year, the first instalment of revenue for the 2017 financial year was received and recorded as revenue. Following further enquiries of the Auckland Council and further review of the terms of the funding, it was decided that this balance should have been classed as revenue in advance. Accordingly, an adjustment has been made to opening equity in accordance with the requirements of PBE SFR-A (NFP) Public Benefit Entity Simple Format Reporting – Accrual (Not for Profit

13

Business Plan 2017–2020 We have a number of priorities in the coming 12–36 months. Some of these are carried over from the previous 12 months, due to the scope and complexity of the projects.

During 2016/17 we welcomed as members the commercial property and business owners located in the expanded North Harbour Business Improvement District (BID) area, and we are now confident that we have consistency of knowledge concerning our programmes and member services across the wider BID. Our focus in the coming 12 months will be to increase the level of engagement and participation in our key programmes amongst these new members, so that they begin to leverage the benefits their neighbours have enjoyed since 2003. We will be encouraging all our members and their staff to fully utilise the new CRM platform, in order to build productivity and profits across the business district.

As an organisation, we are not planning an expansion ballot for the coming twelve months. Instead, our focus will be on playing a strategic role, bringing together common issues across the existing BIDs on the North Shore. We believe this will add weight

to our collective voice when lobbying for significant infrastructure improvements across the Shore.

Our advocacy focus in the coming 24 months will be on Auckland Council’s Long-Term Plan. We recognise that unless our key projects are included in detailed budgets for 2018–28, it is unlikely that they will proceed due to pressure on local government funding.

Our focus will be to mitigate the risk of non-inclusion by forming, at senior management and head of department level, a working group across Auckland Council Strategy and Planning team, Auckland Council Consent team, and Auckland Transport, bringing the various department plans together into one strategic document. We believe this working group is vital if our district is to remain viable for business and employee growth.

Thank you for your time spent reviewing this documentation. We look forward to working with and for you in the coming years.

Business North Harbour Business Plan 2017–2020

Why choose North Harbour?

Priorities Continue to provide a voice for business and investment with key local and central government decision-makers.

Mitigate the impact of the Northern Corridor Improvement Project redevelopment on business efficiency and access.

Advocate for improved access for localised commuter trips.

Grow business capability through access to quality training workshops.

Business growth in the North Harbour BID has been accompanied by huge residential growth in the surrounding region, which inevitably impacts on the area as a whole.

Business North Harbour's responsibility is to make sure the business park functions as effectively as possible for our commercial property and business owners, and for the employees who work here.

Our business and commercial property owners As would be expected, businesses in the BID are at various stages of development. Our 2017 membership survey showed that nearly 12% are in start-up, 43% are in a growth phase, and 44% are mature, with fewer than 1% looking to exit.* The survey also asked business owners why North Harbour was their location of choice. Proximity to home was cited by 58% of respondents, competitively priced premises by 37%, and modern premises by 26%. Access to a skilled and educated workforce and a large residential customer base attracted a further 16% and 10% respectively. A cluster of similar businesses attracted 14% to the area, and good transport links 16%.

Most businesses already here intend to stay— 82% don't intend to relocate in the coming twelve months, and only 4.4% are planning a move within the year.

Start-up Growth Mature Exit

A similar trend was noted amongst the commercial property owners who responded to the survey—71% don't intend to sell their property in the next year, and 81% only own properties within the North Harbour BID. Seventy-six percent of owners bought their property with the intention to occupy it themselves.

This feedback indicates a strong commitment to and identification with North Harbour amongst our business and commercial property owners.

Our employees For the first time, our 2017 membership survey sought feedback from employees in the BID as well as members. Of the employees who responded, 39% named an easy commute as important to them, 40% identified a good range of businesses and shops, and 37% enjoyed working in a location close to key amenities.

Seventy-two percent of responding employees wanted us to address traffic congestion and delays, while 53% would like to see more transport services and options, and 49% wanted more parking.

There is significant value in understanding what our employees appreciate about working in this area, and especially in knowing what improvements would be of most benefit to them. In a competitive employment market, where finding highly skilled staff can be challenging, it is critical for our business district to offer an excellent working environment and maintain diversity of opportunity.

Regional infrastructure investment Central and local government’s commitment of $700 million to the Northern Corridor Improvement Project will provide a better link from West to North Auckland, and greatly improve access within the North Harbour district. Local traffic from East Coast Bays will be able to move more freely, and improvements to the Northern Busway will provide an alternative to single car journeys and reduce demand for on-street parking locally. As a result of our advocacy, access from the improved motorway connections will be retained into and out of our estate.

Construction will commence in 2018.

We will continue to push for improved public transport links ahead of the main Public Transport Review timetable, to be rolled out in 2018.

*Business North Harbour Membership Survey 2017

Infrastructure changes invariably come with the short-term pain of redevelopment, but the results will make it worthwhile. We understand that those who invest in property, run businesses, live and work in North Harbour do so because of the benefits offered by this vibrant, productive region. We remain focused on advocating for the best outcomes for our members, so that this area remains a premium location of choice for investment and development.

15

16

Business North Harbour Business Plan 2017–2020

Business and investment growth

Connection and collaboration Over the next twelve months we will continue to hold business and economic development events, providing opportunities for local businesses to connect, new supplier relationships to be formed, and productivity and profits to be increased.

Our core programmes will remain, with an increased focus on creating multiple contacts throughout our membership, so that the benefits of attending these functions are realised beyond business owners. Our programmes are designed to add value throughout members’ organisations and, through increased capability and acquisition of new skills, to reverse the negative productivity statistics. We accept that this is a bold claim, but it is achievable if the right people in the organisation receive the messaging and take action. The need for more targeted communication supports our continued investment in the CRM project and our increased use of social and digital media.

We are investing in a minimum of six specialist business capability workshops, covering topics such as marketing, health and safety, business planning, research and development, customer service, people management, financial management, and processes and project management. Our members and their employees identified these topics as important in the 2017 membership survey. These workshops will be delivered before June 2018.

CONNECT Key deliverables for 2017/2018 • Host eleven major events per year (Business Lunches, Breakfasts, Women in Business, After Fives and North Shore Commercial Property Group) that collectively attract 1,000+ participants.

• Hold at least six specialist business capability workshops.

• Publish four issues of FYI magazine, of 4,400 copies per issue. Incorporate specialist content for commercial property owners and resources in Korean and Mandarin.

• Send a minimum of 48 issues of Your Business North Harbour e-newsletter and increase opening rates from 22 to 35%.

• Ensure 70% of all businesses have a current, fully utilised directory profile on businessnh.org.nz.

COLLABORATE Key deliverables for 2017/2018 • Launch a CEOs forum and host three forums before 30 June 2018.

• Deliver the member portal by September 2017 to enable the collection of increased economic and demographic baseline data.

• Strengthen relationships with Business NZ, EMA and Chamber of Commerce to provide members with increased specialised industry knowledge, based on member priorities (member portal).

• Launch the 0800 business support line in partnership with Auckland Chamber of Commerce.

The success of the Women in Business and North Shore Commerical Property Group has ensured their continuance in 2017/18.

• Continue to strengthen relationships with AUT ICT Graduate School, UNITEC and regional ITOs, and with Massey University through our Memorandum of Understanding, to help address skill shortages.

• Grow the impact of the inorganic/recycling initiative launched in 2015. Continue to seek external grant funding for the development of resources.

• Apply for waste minimisation grant funding for food recycling project, September 2017.

Business North Harbour Business Plan 2017–2020

Communication We will review our communication strategy to ensure the content and platforms remain relevant.

Demand from our members reflects trends across media, with more than 90% preferring our electronic newsletters as the best way to stay informed.* This high percentage is consistent across commercial property owners and employees alike. All groups surveyed want to hear about local government policy changes, transport and infrastructure, crime, and networking opportunities. Local business success stories and national government policy also featured highly.

Given the clear message that digital media is preferred, much of the focus in 2017/18 will be on developing our social media and digital media footprint.

COMMUNICATE Key deliverables for 2017/2018 • Increase LinkedIn followers by 100%, and increase feed impressions by 25% and engagement by 20%.

• Increase Facebook followers by 100%, and increase both paid and organic reach by 25%.

• Increase Twitter followers by 50%, and increase feed impressions by 100% and profile visits by 20%. Use specific hashtags for all programmes and events.

• Increase unique visitor numbers to businessnh.org.nz by 20%.

• Increase overall engagement with 25% more page views per visit across our website, and increase time spent on the site from 3.4 to 4.08 minutes per session.

• Review current external media partnerships to maximise advertising investment and reach.

• Negotiate regular references to North Harbour, and members, across regional and national media partners.

Keeping your investment safe The Business North Harbour nightly security patrol, conducted by Armourguard Security, remains the most valued service for our member groups, with over 80% saying it is important for their business.

Between the security patrol reports and NZ Police, we are kept informed of any criminal trends. We continue to maintain an ongoing relationship between Auckland Council, NZ Police, and relevant security and safety groups, to ensure that our programmes remain relevant and provide appropriate proactive support for our commercial property and business owners. We will hold 30 meetings across the 12-month period with these key stakeholders.

*Business North Harbour Membership Survey 2017

KEEP YOUR INVESTMENT SAFE Key deliverables for 2017/2018 • Conduct nightly patrols across the entire NHBID area, 365 days a year.

• Visit 500 members and deliver 50 risk assessments and 500 toolkits, to educate property and business owners on how to keep their physical assets safe.

• Deliver 50 door buzzers to avoid theft from unmanned reception or warehouse areas, reducing opportunist theft within the business district.

• Secure 500 vehicle registration plates, to prevent their theft and reduce driver costs.

• Deliver 5,000 Lock Your Car, Remove Your Valuables messages. Erect 50 signs reinforcing the message to those using on-street parking.

• Host two cybersecurity workshops to minimise individual and collective risk to members.

• Continue to support members with practical tools and resources should they become victims of crime.

• Closely track North Harbour crime trends and issues.

Revise programmes and investment to respond as appropriate.

17

18

Business North Harbour Business Plan 2017–2020

HELP MAKE GETTING FROM A TO B EASIER Key deliverables for 2017/2018

You spoke, we listened When asked to rank our current services, the message was clear from both our property owner and business owner membership: you want us to provide you with access to local and central government decision-makers, and industry and sector specialists.

Business and investment growth is critical, as is controlling cost of operation. With over 70% saying our advocacy service is important*, we will continue to provide assistance with compliance, business governance, and understanding the impacts of Auckland Council’s strategic plans. We will also be your voice during the Auckland Council Annual and Long-Term Budget consultation process.

We will continue to collaborate with sector leaders, to give you access to training and the latest best practice thought leadership.

We will also continue to develop relationships on your behalf with industry-specific bodies and organisations, to give you access to these networks and expertise.

Due to the longevity of our relationship with members, we know we need to keep developing our services to ensure they remain relevant.

During the life of this business plan, we will deliver more bespoke solutions and drive growth through smaller, focused groups. *Business North Harbour Membership Survey 2017

During the life of this business plan, we will deliver more bespoke solutions and drive growth through smaller, focused groups.

• Collaborate with Auckland Transport and NZTA to best utilise our Look Before You Leave camera network and minimise duplication of CCTV and camera assets across the BID. • Deliver 150 transport resource and education packs direct to commuters and through employers.

• Deliver 100 corporate preloaded HOP cards to encourage public transport trials.

• Deliver ten travel expos to employees and students.

• Attract 45 new registrations on the Auckland Transport Smart Travel website to reduce singleoccupancy vehicle journeys.

• Continue negotiations with Auckland Transport for improved access across key arterial routes.

• Continue to represent member-driven requests for facilitating safe access to their premises.

• Mitigate the risk to business and property owners from proposed parking levies and restrictions.

YOUR VOICE Key deliverables for 2017/2018 • Continue a watching brief on the Auckland Unitary Plan Operative in part High Court judgments.

Decisions are due October 2017.

• Actively review Auckland Council and UHLB LongTerm Plans 2018–28 and budgets. Seek member submissions relating to increased operational costs or compliance.

• Continue to lobby businesses and employees for their views on additional Park ’n’ Ride facilities.

• Advocate for positive outcomes for North Harbour through the Auckland Transport Alignment Project (ATAP).

• Continue to build relationships at a strategic and project operational level with NZTA to ensure that projects we identify as regionally important are funded through the National Land Transport Programme (NLTP).

• Meet face to face with 1,000 members to determine their transport, crime prevention, economic development and advocacy priorities.

• Ensure Business North Harbour Inc. complies with the operational and governance requirements outlined in the Auckland Council Business Improvement District (BID) Policy 2016.

ENABLE GROWTH Key deliverables for 2017/2018 • Host second biennial business conference, May 2018, with an overall theme of marketing. Attract 20 standholders plus 200 attendees.

• Host the annual One Day Sale, 25 November 2017, involving 100 businesses. Increase reach to include radio and Viva magazine.

Business North Harbour Business Plan 2016–2019

Budget 17/18 and Draft 18/19 In line with the Auckland Council Business Improvement District (BID) Policy 2016, and supported by our continued commitment to financial and operational transparency, we have produced a three-year Business Plan.

This is supported by a draft budget through to 30 June 2019.

The Executive Committee and staff remain committed to providing cost neutrality between the targeted rate levy and the programmes and services available to Business North Harbour members. Our collection method will remain based on the hybrid model, with a fixed fee of $150 per annum for each commercially rated property within the NHBID, plus a rate in the dollar to be multiplied by the capital value of the rating unit (including GST) ($) of 0.00012638 levied against the capital value (CV) of each commercially rated property. We believe this is the fairest model for our members as it ensures that all properties within the business district make a nominal contribution ($150/year) which is then offset against the balance collected in relation to the property’s valuation. All who benefit from regional programmes—such as the nightly security patrol and our advocacy with

local and central government for improved access and infrastructure—contribute. Under the hybrid model, the annual levy collected

by NHBID on a $2,500,000 CV property is $465.95. If that property was levied in another location, using just a rate in the dollar multiplied by the capital value of the rating unit (including GST) ($) the levy would be higher. For example, in adjacent commercial areas such as Takapuna and Browns Bay, the levy for a $2,500,000 CV property would be $1,319.45 and $1,674.42 respectively. For a full list of Auckland BID levy modelling, please refer to the Auckland Council 2017/18 Annual Plan (pages 70–73).

The impact of our expanded membership and increased geographical reach has enabled us to leverage growth across our gold sponsorship and event income streams. This is reflected in the final budget for the financial year ending 30 June 2017.

However, you will note that we have reflected decreased confidence in external grant funding for programme support and development. Auckland Transport has provided grant funding of $20,000 per annum since 2015/16. However, this contract expires

2017/18 and therefore we feel it is prudent to not rely on the continuance of this funding beyond 30 June 2018.

The financial impact of changes in programme development and priorities, as outlined in the preceding Annual Report and Business Plan documentation, is shown below.

The expanded business capability training programme is itemised. The expected growth and support of specific economic development projects, such as the One Day Sale, core business events and special interest groups, have been captured in the programme expenditure below.

There is no expectation that additional resources will be required in the 2017/18 period beyond the budget below. Approval will be sought at the 2017 AGM for a 5% targeted rate levy increase as reflected in the proposed 2018/19 Budget to support additional resources and member programmes in the 2018/19 period.

As with all budget forecasts, the economic environment may require changes to the operational budgets. But it is with confidence we present the 2017/18 and draft 2018/19 budgets for your review and approval.

Budget position Proposed 2017/18 Budget ($)

FINAL 2017/18 Budget ($)

Proposed 2018/19 ($)

657,734

657,734

690,621

29,000

40,000

35,000

135,000

56,450

139,650

70,000

48,000

60,000

Key Revenue Streams Member Targeted Rate External Programme Grants Events including Expo Gold Sponsorship Associate Membership Subscriptions

21,000

26,119

27,000

Advertising and Promotion

45,000

41,560

48,500

3,000

550

600

960,734

870,413

1,001,371

Crime Prevention Programme

100,000

109,529

110,000

Transport Programme

112,000

88,972

100,000

Interest Total Estimated Income Expenditure

Events including Expo/Conference & One Day Sale

165,000

165,079

205,000

Member Communications

130,000

119,650

125,000

Business Training and Economic Development Total Programme Costs Operating Expenditure Personnel

40,000

35,237

55,000

547,000

518,467

595,000

215,000

199,085

220,000

Administration and Accounting

68,000

46,419

47,000

Premises

48,000

46,680

48,000

IT/Computer

16,000

15,150

20,000

Depreciation

25,000

25,000

25,000

BID Programme Development

30,000

5,000

25,000

7,500

7,500

7,500

Total Operating Costs

409,500

344,834

392,500

Total Operational and Programme Costs

956,500

863,301

987,500

4,234

7,112

13,871

Board Honorariums

Estimated Surplus/Deficit

19

businessnh.org.nz Phone 09 968 2222 12 Parkway Drive, North Harbour, Auckland 0632 POÂ Box 303 126, North Harbour 0751 @BusinessNorthHarbour Business North Harbour @BizNorthHarbour