'It's hard out there right now'
Yellowknife chamber lukewarm to business improvement districts; city supportive of idea
Meagan Leonard
Northern News Services
Wednesday, January 20, 2016
SOMBA K'E/YELLOWKNIFE
The City of Yellowknife has made a $10,000 commitment to exploring the possibility of a business improvement district in the capital but the idea has yet to receive full support from business owners.
Typically found in larger centres such as Toronto, Vancouver and Edmonton, business improvement districts are designated neighbourhoods where businesses pay an additional tax to cover services and improvements within the district's boundaries. Funds are collected by an elected municipal board on behalf of businesses and used for initiatives such as marketing, beautification, festivals or security.
Financial support has been allocated by the city for five local business owners to attend the Pacific Northwest Regional Conference in Vancouver this April - a three-day event examining how business areas and neighbourhoods can be improved in innovative ways.
City spokesperson Nalini Naidoo told Yellowknifer the idea is to engage the community and start a dialogue, adding the districts could help fill gaps in service not covered in the city's budget.
"The responsibilities of a business improvement district are very different from what the municipal responsibilities are," she said. "When the city makes a decision about artwork or initiatives, it's across the city."
Although downtown revitalization was a hot topic last year, some are concerned the financial aspect of the BID may be a barrier for some business owners.
Yellowknife Chamber of Commerce executive director Deneen Everett said when she reached out to members on the topic, she received a "fairly negative response."
"I suspect businesses will have concerns over the financial aspects," she told Yellowknifer. "It's hard out there right now; the economy is not doing great and I'm seeing a lot of businesses make efforts to tighten their belts and be more aware of their expenses so I think businesses will want more information on how much it's going to cost."
It turns out those costs will depend on a variety of factors.
Jeff Humble, director of planning and development, said although three areas of the city have been identified as potential business improvement districts - Old Town, Old Airport Road and the downtown core - the tax rates would vary based on property assessment and density.
For example, in order to raise a $500,000 levy in an Old Town district, each business would be taxed $35.11 per $1,000 of its property value annually. This translates to $7,022 per year for a location worth $200,000. Downtown, these rate estimates are significantly lower, with each business only required to pay $1.69 per $1,000 assessment, translating to $338 per year for a business assessed at $200,000.
"Downtown is obviously a much better ratio when you look at the amount they would have to raise," said Humble. "But at the end of the day it's the BID that sets the amount they want to levy."
Once a business improvement district has been established, all dwellings - including residential - could be subjected to the tax he said, although rates would be higher for commercial spaces.
He added people should not be scared off by this idea.
"Successful BIDs are able to revitalize neighbourhoods ... so you're going to see new investment, you're going to see new developments, you're going to see property values increasing," he said.
Typically, a ratio is set requiring a certain percentage of businesses in an area to sign on before a district can be established.
"In some places it's 50 per cent plus one, in others they set a cap and say they want it to be a little higher, maybe 70 per cent," he explained. "But once the BID is established, everyone within that area who fits the criteria pays - there is no opting in or out."
Vicki Tompkins owns downtown clothing boutique For Women Only and told Yellowknifer she is excited about the idea of a business improvement district in the city, adding she is not concerned about the prospect of additional taxes.
"I think it's worked in other cities and it's a really good idea," she said. "Really that tax is going to be used to improve this area so it's nice to have dedicated funds."
Currently, the city is working with the Department of Municipal and Community Affairs to determine what legislation would allow the formation of a business improvement district as no specific act or bylaw exists in the territory. Naidoo says ultimately the decision of whether the initiative moves forward or not is in the hands of business owners.
"If it's something this community is interested in doing, the city ... can make that happen," she said.
"It doesn't necessarily mean anything is going to happen, but we're sharing ideas, we're talking about things and I think it's a good thing when the city and the business community can have those conversations."
