Businesses likely to reject levy

A Umina business owner has rejected the Gosford Citywide Business Improvement District policy naming it another version of the Peninsula Special Business Levy proposed on local business back in 2005.

Proprietor of Ocean Beach Dry Cleaners and Laundrette Mr Ricky Jones said Gosford Council was disregarding the views and opinions held by 90 per cent of Peninsula business owners who attended a public meeting more than five years ago.

"I reject any form of levy proposed under the Business Improvement District scheme," Mr Jones said.

"A public meeting held at the Peninsula Theatre in May 2005 attracted in excess of 200 people, predominantly commercial property owners and business operators who wanted no part of the council's Peninsula Special Business Levy.

"At this meeting, there were only four people attending who supported the introduction of that expensive levy.

"This meeting was quite heated at the council representatives, including the only councillor to turn up Cr Chris Holstein.

"I attended many council meetings in regard to this issue, after council decided to have another poll the results handed down by council at its public meeting in June 2005 were 130 against, four in favour and one undecided.

"I can assure you the majority of business and property owners in this area will once again stop these unjust impositions being loaded onto a portion of the battling businesses and property owners who are still recovering from the economy downturn."

Mr Jones said another petition would be easy to arrange amongst the Peninsula business community if council tried to impose a special levy on them once again.

However, a council report submitted by council's director of environment and planning Ms Colleen Worthy-Jennings, prior to the policy going on public exhibition, stated that districts with high commercial vacancy rates were less able and less willing to support raising funds via a special levy.

"The state of many small businesses in Gosford, especially on the Peninsula, is probably too fragile to generate support for a centre-specific levy in the early phases of the BID program," the council staff report stated.

"It is proposed that seed funding be provided out of the Special Business and Tourism Levy at a rate of up to $25,000 per individual BID for a period of up to three years.

"This levy is paid by all commercial properties in the LGA and is required to be invested in the development of tourism and business.

"Providing seed funding out of this levy is therefore in keeping with the 'self-help' principle and spirit of BIDs.

"It would be a condition of funding that the BID would implement a plan to become self-funding at the end of the seed funding period.

"A BID would need to demonstrate success during the period of seed funding to build wide support from the local business community so that it may proceed to seek funding from the commercial property owners through a special rate increase or other funding means, such as significant membership fees.

"Council would only agree to consider sponsoring a ballot of commercial property owners within a district for any special compulsory levy after three years of operation, demonstrated success and demonstrated support from the business community of at least 75 per cent of commercial property owners paying at least 75 per cent of the aggregate of the levy."

Email, 6 Jun 2010 Ricky Jones, Ocean Beach Dry Cleaners and Laundrette Council agenda ENV.20, 27 Apr 2010