Newcastle Historic Buildings and Sunderland BID

Business Improvement Districts (BIDs) are areas where businesses in a particular area are subject to additional taxes or levies on top of the regular tax rates they are required to pay to the government (local government) (Marcus 2016, p.41). The additional taxes collected are then used to launch programs aimed at enhancing or boosting the local economy. This is a tool that has gained popularity throughout the world, mostly in urban areas. Regarding the kinds of services or projects to be initiated by the extra levies collected, there is no limit set (Marcus 2016, p.33). The projects should just be those which can improve or enhance the already provided services by the local authorities. According to Marcus (2016, p.51), examples of the services or projects which can be initiated through the BIDs program include but not limited to; provisional of security, provision of clean water services, environmental management initiatives through cleaning, improvement of lighting system, improvement of various infrastructures within the localities of the business people already charged extra business rates bills, and provision of extra social amenities among others services and projects.

Initially, the BIDs were within the boundaries of the local government authorities. However, in April 2013, the central government of the United Kingdom introduced cross-boundary BIDs. The consequence of this initiative was that the Business Improvement Districts were then able to operate beyond the known boundaries of the local government authority (Marcus 2016, p.61). In the contemporary business societies throughout the world today, Business Improvement Districts have become a very important part of the business communities which would want their service and infrastructures to be improved for increased productivity (Marcus 2016, p.44). The business communities in collaboration with the local government authorities which are in charge of the municipalities, within which these businesses operate, often identify their most pressing need which may not be provided for within the normal and regular service provision (Marcus 2016, p.57). Upon realization of such needs, they draft proposals which are reviewed and the project initiated after determining how much extra tax each business person should be charged and the money collected.

Establishment of the BIDs

Regarding establishment or setting up of the Business Improvement District, there is no single individual or an organization which has the sole power to initiate it. The programs of Business Improvement Districts can be started by any person of the organization. In most cases, the local government authority is known to be an obvious initiator of such improvement agendas (Lippert and Sleiman 2012, p.68). However, individual business persons who pay business rates/levies, companies or organizations, or a foreign individual who has an interest in developing the Business Improvement Districts area can also propose for the initiation of programs leading to BIDs. The most common hurdle for most communities is sourcing for capital to execute these initiatives. The government of the United Kingdom learned about this prevalent bottleneck to Business Improvement Districts and in October 2013, an amount totaling to £500, 000 was set up in form of loans (Liu et al. 2014, p.70). These sums of money were to be distributed to the communities which had the intentions of creating BIDs but maybe did not have the startup capital.

As previously discussed, the Business Improvement Districts can be any person’s, company’s or local authority’s idea. The most important aspect, therefore, is that before the initiation of any BID project, there must have been an individual, a group, or an organization which spearheaded for its initiation (Gould 2017, p.412). Regardless of who or which organization/company is the pioneer of the Business Improvement District, a proposal document must be developed and submitted accompanied by a business plan which indicates the projected budget and feasibility of the BID project (John et al. 2010, 72). The proposal and the business plan are then reviewed by a technical team which then determines its feasibility and applicability before the real project can be initiated. In the proposal, the following must be outlined; the various services to be provided by the project, the size as well as the scope of the Business Improvement District, it also outlines clearly who is liable to be charged the extra levies, the amount to be collected from each liable individual, and how the levies would be calculated to ensure what is collected from each liable individual or organization is enough for the proposed project (Michel and Stein 2015, p.82).

Once the proposal has been made the businesses that are subject to extra levies are identified, then voted in a ballot. It is voting that it determines whether the proposed projects would sail through to the next phases of implementation. The successful vote is considered to be one which had the majority of the whole votes cast. Each business in the locality where the BID project is be established is entitled to voting and has one vote each whether it is a single-owned business or a business owned by a group (RCHME, et al. 2016, p.36) Upon the establishment of the Business Improvement District, the extra levy or tax is charged on everyone without considering which side they took during the voting process. It is therefore very clear that the process which implementation of a Business Improvement District takes has several phases which all must be passed through before finally starting the BID projects. These BIDs normally last for a maximum period of 5 years then the collection of levies stops. Upon completion of the term, the BID is expected to stop automatically. However, if the BIDs Company would wish to continue with the activities of providing services, then there must be a new voting for every stakeholder to agree or disagree through ballot about the extension of service provision (Hunter and Ralston 2013, p.67).

During the voting process, it is the role of the local government authority in charge of the locality, to manage the whole process. Sometimes the Business Improvement District arrangements conflict with the existing policies. Similarly, these arrangements could be placing financial burdens on taxpayers or the extra levies imposed on the businesses could be unfair (MOSCU 2014, p.37). If the local government authority is the opinion that such arrangements would not be fair to the businesses in the municipality or regions of their jurisprudence, then it has powers to reject the proposals (Nahason 2013; Marcus 2016, n.p). However, the local government authority can only prohibit the proposals within the succeeding 14 days after voting has taken place. Additionally, upon the realization that there was a breach of order during the time voting was taking place, a request can be made to the Secretary of State for Local Government and Communities to nullify the voting. This should be done within 28 days after publication of the ballot results.

Who Pays the Levy in Business Improvement District?

In the proposals, it has to be stated clearly who is liable to pay the levies and how much per head or organization should be paid. How (the formula for arriving at) this value (the amount to be paid by each business) is reached must also be presented in a clear and easy to understand manner. Moreover, it has to be communicated properly if there is relief from the BIDs levy that may be applicable and if so, who is eligible for such relief must also be stated. Local circumstances determine how much relief is collected from the businesses (Nahason 2013, p.42). In usual cases, the BIDs charge a levy rate which ranges between 1 and 4%. This is always a percentage of retaeble value, although this also is determined by the local circumstances. The numbers of BIDs which charge using the banded system are increasing.

Management of the Business Improvement District

BIDs are managed generally by the Business Improvement District body. In most cases, this is always a private company hired to specifically provide and manage the services or the project initiated to improve the lives of the business people within a locality. However, sometimes these companies partner with the local authority to manage the BIDs cooperatively. Most of these companies managing the BIDs are usually non-profit organizations (Nahason 2013, p.52). The BID body is responsible for the development and the implementation of the proposal which outlines how the BID will operate. These bodies provide the local authority with the proposal together with the business plan which has in it the financial management arrangements for the operations of the BID body (Nahason 2013, p.31). Mainly what the local authority will do is the collection of the levies. The levies are then held on behalf of BID body in closed revenue accounts.

Controversies around Bids

BIDs are found in almost every part of the world today. Before the BIDs (before the 1970s), there were voluntary business associations. These associations faced several challenges especially the “free rider” problem where even business which did not take part in the development initiatives were reaping the benefits of the association (Nahason 2013, p.45). BIDs are fairer because once majority of businesses within the locality have elected the BID, all the occupants and owners of various businesses must contribute towards it whether they voted for or against the BIDs (Nahason 2013, p.71). BIDs have improved marketing strategies for businesses and enhanced pedestrian amenities, street cleaning within the centers and provision of security surveillance system. However, despite all the benefits BIDs seem to have brought, they still generate controversies.

For residents of a considerable period of time, these BIDs are viewed drivers of gentrification and their ever-escalating power within the jurisdiction they control raises several questions (Marcus 2016, p.83). The questions being asked mostly do revolve around inclusivity and accountability of the BIDs. Moreover, the board members of these BIDs are usually drawn from commercial sectors and the residents who are the direct stakeholders of the district improvement are only left to protest in case a decision has been made which they do not like (Marcus 2016, p.75). Another controversy generated by the BIDs is about the security services provided. The security services have been reported by many researchers to have been a flashpoint of disagreement usually between the residents, visitors, and businesses (Marcus 2016, p.37). Many studies have shown that although the BIDs have helped reduced organized crimes, violence among youths, among other negatives acts, understanding the wider dynamics in the neighborhoods Marcus (2016, p.48) notes that it is more important before implementing any BIDs so as o reduce the controversies normally generated.

Impacts of BIDs in Sunderland

Sunderland is one of the Cities in the United Kingdome that as embraced BIDs for a considerable period of time. Through the BID initiative, the city has managed to experience various positive results. According to Dunbar (2015, p.37), the positive impacts which Sunderland has experienced courtesy of BIDs include;

• A safer city through the introduction of initiatives like talking cameras which monitor every activity within the City including people dropping litter ignorantly, the establishment of security management team and provision of the necessary equipment for the security personnel, and the establishment of the Operation BID Action Team. The city generally is aimed at achieving the purple flag.

Sunderland BID Security Personnel (Source Dunbar 2015)

• Raising environmental awareness through environmental conservation and beautification, for instance, the city’s authority encourages the landlords to make use of the empty properties and also to improve the visual appearance of the houses.

• Invigorating the evening and night economy in the city; through the BIDs, Sunderland has become a city where people can do business almost 24 hours a day. However, Thursdays are unique days set aside for evening business and these are initiatives which have impacted positively on the economy of the city.

Source: (Dunbar 2015) BIDs have improved communication among its members

• Lastly is access to all parts of the city. This has been through redesigning the streets to be more visible and accessible to all including the old and the people with disabilities. In general, all the above discussed are the clear indications of how the Bids have been of great importance to the residents and business people in Sunderland.

Part B

Historic Buildings in Newcastle

Benefits and Challenges of using Historic Buildings for Modern Hospitality, Tourism and Leisure Events

Just like it is said that beauty lies in the eyes of the beholder, so does what is historic and worth saving (Neely 2014, p.55). Historic buildings in the communities or the neighborhoods are normally viewed as old and probably not worth any attention (Rippon 2014, p.47). It should be understood that historic buildings are holders of the communities’ cultures and diversities which have been experienced in history. Understanding the practical values and worth of the historic buildings not only in the preservation of a community’s culture but also for business purposes is very important and irrefutable (Chen 2012, p.76). It should be understood that historic buildings can be used to improve the economic status of the local people if the buildings are used for; setting up businesses, as tourism centers, or as places to hold leisure events. In the contemporary business world, entrepreneurs and private developers have realized the values of these buildings (Chen 2012, p.83). They have been put into use for the purpose of generating income while preserving the cultures of the local people as well. However, using these historic buildings for business purposes has various benefits and challenges accompanying them.

Benefits of using Historic Buildings for Businesses in the Modern World

The various benefits which historic buildings have are discussed below. Old buildings have some inherent value. Historic buildings were built several years back and their architectural designs and the materials used in their constructions have become obsolete or are so unique and sophisticated that the modern constructors may not understand. These buildings normally belong to certain eras in history, for instance, there are those which were built pre-World War II, post-World War II etcetera (Rocchi 2015, p.46). These houses were built using materials for instance kinds of wood which are no longer existent maybe because the forests were cleared. Moreover, these historic houses were normally built to solve a certain problem may be adverse weather and such like uncertainties (Rocchi 2015; Elaine 2013, p.52). Therefore, the desired traits of the buildings to solve such problems make them particularly very unique. For instance, in the United States, Tennessee, five-brick-thick walled houses were constructed to withstand the effects of tornadoes. The thicknesses of the walls have made the houses to survive through a number of centuries since their construction.

New businesses today prefer old buildings. In the 1960s, Jane Jacobs, an urban activist shocked the city planners with her writings about ”The Death and Life of Great American Cities”. In her work, she discussed various economic advantages which businesses would have especially when they are located in the ancient buildings (Elaine 2013, p.92). For example, she asserted that businesses such as neighborhood pubs, ethnic restaurants, and antique stores can thrive very well in old buildings. She said that; ”Old ideas can use new buildings but the new ideas must use old buildings”.

Another benefit of using these historic buildings to set up a business is that they attract people. Historic buildings are just fascinating. Their uses, the old brick used in their construction, the marbles, the heart pine, and the varied construction styles could be the most important elements that make these buildings to be so attractive. An author wrote that people love old buildings for various reasons (Baker 2011, p.76). Their reasons include; feeling of patriotism, assurance, warmth, homey among others. Regardless of the reason, however, the historic architecture tends to fit the bill. A place which people love is known for business prosperity because there is a ready market for the merchandise or services being offered. It has to be noted keenly that not just any business can thrive in such places, thus the business people must do proper market research before establishing their businesses (Clark 2014, p.34). The types of businesses which can smoothly thrive in such areas have already been described previously.

Lastly, historic buildings are good reminders about the complexity and culture of the city. Through seeing the historic buildings, tourists, as well as the local residents, can be able to witness the complexity in aesthetics and cultural history of an area. A city needs such buildings to keep the sense of heritage and permanency (Clark 2014, p.48). For instance, banks like building the old-fashioned facades although they could be located in the Central Business District where buildings are modern. Such buildings have some hidden value in them and most people still would like to be associated with the old buildings even though the contemporary world does not provide such opportunities through new construction of older fashioned buildings.

Challenges of using Historic Buildings for Modern Business

There have been several challenges facing the reuse of historic buildings for business in the contemporary world. Most of these challenges are those which emanate from failure to preserve these unique sceneries. In the year 1967, the government of England issued the Civic Amenity Act. The Act stipulated that all urban centers with unique artistic and historical features need to be protected. The Act further specified that such historic buildings should not be demolished, reconstructed or renovated unless by registered plans in detail. The Act further barred private developers from establishing projects around these areas with such historic constructions. The main challenges with the protection of these historic buildings include the following; some places where the historic buildings were have been replaced by fake to mimic what was originally there, in some areas, the value of land and commercial potential are given more weight whereas, in other places, dense population has been a barrier to the protection of these historic buildings. The Business Improvement Districts were then able to operate beyond the known boundaries of the local government authority.

Bessie Surtees House

A picture showing the 5 floors of Bessie Surtees (Source HLF 2014)

Bessie Surtees House is the modern day’s Madison House and Milbank House. The construction is a five-storey building formed from the amalgamation of two separate buildings the Milbank House No. 44 Sandhill and the real Surtees House No. 41 Sandhill. Milbank House was constructed in the 16th century whereas the Surtees House (Madison House) was built later in the 17th century (Heritage Lottery Fund 2014, n.p). The Bessie Surtees House is located in Newcastle City.

Architectural description of Bessie Surtees House

The current Bessie Surtees House is a five-storey building. Milbank House which is part of the entire Bessie Surtees House is mainly a timber framed construction (Heritage Lottery Fund 2014, n.p). It is believed that originally, this building was a two-storey mainly made from a sandstone party wall. The other floors were added later in the post-medieval period. The foundation of Surtees House is believed to be a 17th-century construction which mainly used timber and rail as construction materials (Sun and Fu 2013, p.39). However, a brick extension was later added. The two buildings which form the Bessie Surtees House were amalgamated in 1931 under the supervision of Lord Gort. This was initially a merchant’s house and it copied the designs of the Jacobean Architecture (Walsgrove and Gifford 2013, p.36). The Madison House was built for Lord Gort in the 1930 and it incorporated various 17th-century construction features. Historically, this building is recognized as the house where Bessie Surtees eloped with Lord Eldon (thus commonly referred to as scene of elopement) who was later the Chancellor of England (ALGAO 2013, p.88). The building is the center of the English Heritage today and a section of it is open to the public (Fairclough 2012, p.101). In the 1980s, the English Government started the restoration work of the building after it was leased out by the Newcastle City Council. Thereafter, it became an Office of the English Heritage for the local people and is a local tourism center.

A picture showing the materials used to construct Bessie Surtees (Source HLF 2014)

The two separate houses which constitute the Bessie Surtees House were owned by a merchant, father of Bessie Surtees who was a merchant. These houses were separately initially used as coffee houses before they were acquired by Lord Gort (Evening Chronicles 2011, p.44). The building has been listed and is now managed by the English Heritage. It is a Grade I listed historic building. Since Bessie Surtees House has been listed by the Government, in fact, Grade I listing, it has been under the threat of demolition as such like buildings are given proper protection. The building is an important Cultural Asset for the locals an aspect which earned it the grading hence immunity from demolition (Evening Chronicles 2011, p.52). The Bessie Surtees House serves two functions. First, it is used as the local office of the English Heritage. There are also open spaces for the public which enable the people to have a good adventure into the various sections of the building (Fernie 2013, p.59). In other words, the building also acts as a local tourism center where the locals and even people from far, can go to learn about the historic constructions and cultural diversities of the past.

Conclusion

Business is a diverse discipline where changes occur every day. Among the changes and new emergence, today are; the reuse of historic buildings as business centers and the establishment of Business Improvement Districts. Business Improvement Districts are initiatives started by the businesses within a certain locality to improve their services. To enhance this, the businesses are normally expected to contribute extra levies which are managed by the local authorities and the levies used purposefully to provide the needed services and infrastructures. In Sunderland, BIDs have existed for several decades and they have impacted positively on the businesses established in the City. Although Bids have been praised for changing various aspects within the business centers and the neighborhoods, they have still continued to raise controversies. The various controversies surrounding the BIDs are those associated with security and accountability in the management of the collected levies. Another aspect in businesses today is with regards to reusing historic old buildings for business purposes for instance establishment of tourism centers, hospitality centers, leisure centers among others. These historic centers, however, have various benefits and challenges associated with their use and the entrepreneur has to critically examine these before setting up a business. One of the historic buildings in Newcastle that has been reused is the Bessie Surtees House. Initially, it was a merchant’s house used as a coffee house, but today, it has acquired other uses like being a local tourism center. Business Improvement Districts have become a very important part of the business communities which would want their service and infrastructures to be improved for increased productivity. For residents of a considerable period of time, these BIDs are viewed drivers of gentrification and their ever-escalating power within the jurisdiction they control raises several questions. Regarding establishment or setting up of the Business Improvement District, there is no single individual or an organization which has the sole power to initiate it. The programs of Business Improvement Districts can be started by any person of the organization. The Business Improvement Districts can be any person’s, company’s or local authority’s idea. The most important aspect, therefore, is that before the initiation of any BID project, there must have been an individual, a group, or an organization which spearheaded for its initiation.

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