Collins Street Precinct enthusiastic about proposed innovation district model

The Collins Street Precinct group says it “strongly supports” the City of Melbourne’s move to explore establishing the city’s first “Business Innovation Districts” (BID) following an independent review of the council’s Business Precinct Program (BPP).

The Collins Street Precinct (CSP) is one of 10 “precinct” or trader associations supported under the council program, which has been the subject of a recent SGS Economics and Planning review that went before councillors for consideration at its March 25 meeting.

More than 1200 businesses across the municipality are currently members of precinct associations. Others include the Yarra River Business Association (representing Southbank and South Wharf), Carlton Inc., Docklands Chamber of Commerce, City Precinct, Melbourne Chinatown Business Association, Kensington Business Association, Lonsdale St Greek Precinct, Melbourne City North Association and the North & West Melbourne Business Association.

While the SGS review put forward a series of recommendations to strengthen and build on the current precinct program, its most significant proposal looks set to be rolled out in both the CSP and Docklands in the form of the city’s first BID pilots.

According to Main Street Australia, a BID is a defined area within which businesses are required to pay an additional tax (or levy) to fund projects within the district’s boundaries.

A special rate scheme underpinning the proposed BID model would see membership funded as a levy through a business’s rates, which is considered an effective way of getting more businesses to buy in to the work of their association and generate more revenue. The council estimates upwards of $1 million could be generated for a precinct under the model.

Under a public-private partnership with the council, the SGS review said such a scheme could “support significantly scaled efforts in marketing, infrastructure improvement and capacity building”.

With the council’s current four-year BPP (2021-25) to end on June 30, councillors unanimously endorsed a series of recommendations on March 25 for the program over the next two financial years.

Under the current program, where members typically pay an annual fee of $50 on average, associations were eligible for up to $120,000 in years three and four should they register more than 300 members.

In response to the review, council management proposed continuing the current program “with improvements”, including enhanced governance and accountability measures, increasing available funding to a maximum of $130,000 per annum and providing clearer program objectives.

Council management said it would also consult with property and business owners on the appetite for a BID in Docklands and the Collins Street Precinct, adding that it would also investigate additional BIDs in precincts across the city.

Luke Harris, president of the CSP, which was the only precinct the council rated as “thriving” in its review of the current model, told CBD News that the conversation around BIDs was one “we’ve needed to have for some time”.

Around the world, BIDs have delivered proven results in strengthening local economies, enhancing precinct identity, and attracting investment

“It’s fantastic to see the CSP recognised as thriving. As a precinct and a committee, we’ve been working incredibly hard to drive visitation to our precinct.”

“But in saying that, I believe now is the time to build on momentum, not stand still. A BID could unlock a new level of coordinated investment and strategic planning, particularly when it comes to long-term improvements that benefit everyone.”

While Mr Harris acknowledged that it was “natural that some would approach the idea of a new levy with caution”, he believes that if the return on investment could be clearly articulated many businesses would be open to it.

“Ultimately, this is about creating a platform for strategic, long-term thinking, with benefits that extend across businesses, asset owners, and the broader Melbourne economy,” Mr Harris said.

“The success of any BID will hinge on how it’s managed. It needs to be transparent, representative, and locally driven. Decision-making must be in the hands of those who understand the precinct best.” •