Agenda item

To consider a report by Councillor Jason McLellan, Leader and Lead Member for Economic Growth and Tackling Deprivation (copy enclosed) on proposals for a second term for the Rhyl Business Improvement District (BID).

RESOLVED that Cabinet –

 

(a)      note the contents of the BID Busines Plan (Appendix 1 to the report) and support the recommendation that there are no grounds on which to veto the proposals under the BID Wales (2005) Legislation (paragraphs 4.8 and 4.9 of the report referred);

 

(b)      authorise officers to complete any necessary legal agreements required for the operation of the BID Levy, ballot and service arrangements and any other necessary matters for the proposed BID;

 

(c)      confirm that DCC will exercise one of its votes in the BID ballot in support of the BID, and

 

(d)      confirms that it has read, understood and taken account of the Well-being Impact Assessment (Appendix II to the report) as part of its consideration.

Councillor Jason McLellan presented a report on proposals for a second 5-year term for Rhyl Business Improvement District (BID) and associated arrangements.

 

The Corporate Director: Economy and Environment introduced the report which detailed the background to the establishment of the Rhyl BID in November 2018 together with the BID development process and legalities in that regard.  The first 5-year term was coming to an end and a new ballot was required if the BID was to continue.  The Corporate Director: Economy and Environment was a Director of the Rhyl BID representing the Council.  Cabinet was asked to consider the following –

 

·       whether it agreed with officer recommendation that there were no grounds to veto the BID proposal.  The Council could veto a BID proposal if it conflicted with any corporate DCC policy or placed a significantly disproportionate financial burden on any person or class of persons.  Having reviewed the new Business Plan (attached to the report) officers considered neither provision applied, and

 

·       how the Council (DCC) should use its votes in the ballot.  The Council owned a number of properties in the Rhyl BID area and was eligible to use 20 votes.  The Corporate Director’s view was that BIDs could be a positive force for good and a second term would be beneficial to the ongoing regeneration of the town.  The Business Plan supported the Prosperous Denbighshire theme in the Corporate Plan and the Welsh Government’s view was supportive of the BID.  Therefore, he hoped that the Rhyl BID continued beyond the ballot for a second term and that the business community would be supportive of the continuation of the BID.

 

The Leader thanked the Corporate Director for the support he had provided throughout the process.  He also thanked Nadeem Ahmed, Chair of Rhyl BID and Abigail Pilling, Manager of Rhyl BID, who he had recently met with Councillor Barry Mellor, and for their attendance at Partnership Scrutiny Committee and he appreciated the work of the Committee and its Chair in scrutinising the proposals.

 

The Leader advised that a BID gave businesses the power to decide improvements they wanted to make in a geographical area and raise funds to deliver them.  It was a very local form of democracy.  Although DCC was a key stakeholder in the Rhyl BID it was independent of the Council.  However, the BID had struggled to be perceived as independent given comments that it had only succeeded due to DCC having an unjust proportion of the votes.  He believed the BID had the support of businesses, but it was difficult to argue against the negative narrative due to the low turnout.  99 of the 463 eligible votes were cast; the “Yes” vote won by 66 votes but 36 of those “Yes” votes had been cast by DCC. Various reasons could be attributed to the low turnout, but a larger turnout was expected in a re-ballot and that more business would be supportive given what had been delivered over the 5-year term.

 

The Leader agreed with officers that there were no grounds to veto the BID proposals and he asked Cabinet to carefully consider how to use DCC’s votes in a re-ballot.  He referred to consultations with scrutiny and others, including the recommendation of Rhyl Member Area Group (MAG) that DCC do not exercise its right to vote in the next BID round.  The Leader’s view was that Rhyl BID played a significant role in the town’s regeneration, having delivered some positive initiatives in the first term, and Cabinet should be clear that it supported the BID and wanted to continue working in partnership for the betterment of Rhyl.  However, given the negative perceptions regarding DCC’s influence in the first ballot, he felt enough votes should be secured from local businesses to win the ballot for a second term.  Therefore, he proposed DCC only used one of its votes in the re-ballot.

 

Cabinet considered the report, including the consultations carried out, together with the Leader’s views on the BID proposal and voting arrangements.  Cabinet recognised the benefits of the Rhyl BID and its continuation and agreed with the Leader’s views in that regard.  Cabinet also agreed with the proposal for DCC to cast a single vote in support of the BID, which would demonstrate a commitment to fairness, with the outcome of the ballot being determined by the local business community.  The need to ensure appropriate engagement with businesses was highlighted to raise awareness and increase voter turnout.   The Corporate Director: Economy and Environment advised that Rhyl BID had already undertaken much engagement work and confirmed the Council could also undertake further work in that regard to emphasise the importance that businesses vote in the re-ballot.

 

At this point the Leader opened up the debate to non-Cabinet members and a number of different views on the best way forward were expressed, including DCC totally abstaining from voting in the re-ballot and the potential pitfalls of not using its full voting allocation.  There was also some debate on the previous arrangements and how they had been managed, including the decision-making process, low turnout for the initial ballot, together with issues around the collective engagement of key stakeholders and the importance of collaborative working for the benefit of Rhyl.  The need for a fair and inclusive process was reiterated, and to ensure small businesses were not disproportionately affected in the difficult financial climate.

 

The Leader responded to the issues raised and made the following key points –

 

·       there was confidence that a second term of the Rhyl BID would be supported by local businesses which would strengthen Rhyl BID going forward

·       the stance taken by the Cabinet did not go against officer recommendation and there was no legal requirement for the Council to exercise all its votes

·       it was proper that Cabinet should express a view on the re-ballot but not to use all its eligible votes with a view to influencing the outcome of the ballot

·       the intention was to use the one vote which was closest to the average rateable of all DCC’s eligible votes

·       not exercising all its eligible votes was no reflection on the Council’s commitment and support for a second term for the Rhyl BID which was clear

·       it was proper that the views of Rhyl MAG be considered as they were the elected representatives for the BID area

·       there appeared to be some level of disengagement in the process but there would be a concerted effort by DCC for all to work together to benefit Rhyl

·       Cabinet and DCC would be working positively and collaboratively with local businesses and key stakeholders for the benefit of the area.

 

During the course of debate a conduct issue was raised on the basis of the meeting with Rhyl BID Representatives and alleged announcement of the Cabinet decision before today’s meeting.  The Leader and Councillor Barry Mellor denied any decision had been made or communicated and explained the circumstances of the meeting following an invitation from the Rhyl BID to discuss the re-ballot proposals.  The Monitoring Officer confirmed no breach of the Code of Conduct.  Councillor Mellor asked that his serious concerns over the matter and breach of trust be recorded.  Councillor Win Mullen-James referred to a separate allegation made during the meeting relating to comments made within Rhyl Town Council working against the BID in 2018 and asked that they be fully investigated.

 

Cabinet restated their support of the Rhyl BID and to cast one vote, based on an average rateable value, in favour demonstrating their support for its continuation, whilst allowing local businesses to determine the overall outcome of the re-ballot.

 

RESOLVED that Cabinet –

 

(a)      note the contents of the BID Busines Plan (Appendix 1 to the report) and support the recommendation that there are no grounds on which to veto the proposals under the BID Wales (2005) Legislation (paragraphs 4.8 and 4.9 of the report referred);

 

(b)      authorise officers to complete any necessary legal agreements required for the operation of the BID Levy, ballot and service arrangements and any other necessary matters for the proposed BID;

 

(c)      confirm that DCC will exercise one of its votes in the BID ballot in support of the BID, and

 

(d)      confirms that it has read, understood and taken account of the Well-being Impact Assessment (Appendix II to the report) as part of its consideration.