MRA Benefit Area Proposal
Maroochydore Revitalisation Association Inc.
Summary
The MRA has made great advances to strengthen the economy and cultural experiences within this precinct over the last three years through self-funding initiatives such as monthly markets, grants and sponsorships.
As a result, the MRA precinct has become a renowned destination for all ages to enjoy music, food, people and atmosphere, contributing $34 million to the local economy, welcomed 25 new businesses in the last two years, and attracted 300,000 visitors across 31 events.
To date, a funding source has been made available by a small number of business and property owners, which has supported the volunteer base and current initiatives. The MRA is now proposing a new funding model to ensure long-term sustainability to support ongoing events and activities within the MRA Precinct. The MRA Business Plan and budget proposal outlined in this document will generate $4 of economic activity for every $1 of local collective contribution. Without a commitment from stakeholders MRA activities will not be able to continue.
We have had strong encouragement by government, business and community stakeholders to not only continue our current activities but to leverage further initiatives and partnerships to continue to strengthen the local economy and urban experience.
Our Economic Development Plan (EDP) 2015 identified the Business Improvement District (BID) model as a well renowned example of a benefit area levy to support the MRA’s revitalisation activities.
This document includes details of the Benefit Area proposal which we believe will maximise the benefits for businesses, residents and visitors, and achieve MRA’s vision to develop this precinct into a strong local economy with rich cultural experiences.
For additional information about the work of the MRA and the detail behind this proposal please visit www.mra.org.au for a copy of our Economic Development Plan 2015 or contact:
Bronwyn Buksh – Executive Manager James Birrell – President
About the MRA
The Maroochydore Revitalisation Association (MRA) is an active local organisation dedicated to revitalising of the traditional town precinct of Maroochydore, defined as the compact and walkable area bounded by Aerodrome Road, Beach Road, Duporth Avenue and a few blocks adjacent to First Avenue (MRA endorsed precinct Appendix 2).
Since November 2012, the MRA has made great advances to strengthen the local economy and cultural experiences within the MRA Precinct through a range of self-funding initiatives.
In the last three years MRA volunteers have focused on bringing a range of community activities to increase foot traffic into the town centre, including:
· The annual Ocean Street World Festival
· Monthly Nights on Ocean street markets
· Captain & the Duke Pop up Bar
· Local street art/murals
MRA volunteers promote the precinct through digital, social media and cooperative advertising campaigns (including radio and print media) through pro-bono work or partnerships.
As a result, the MRA precinct has become a renowned destination for music, food, people and atmosphere, reflected in Sunshine Coast Council’s planning scheme as an Entertainment Precinct.
Impact of Revitalisation Initiatives
Key success indicators include:
● The Nights on Ocean Street markets feature 50+ food and arts stalls, attracting 6,000 - 12,000 people each month. Each market injects at least $40,000 into the local economy.
● Events and functions support local musicians, artists, traders and businesses.
● More than 85 per cent of business owners have witnessed an average of 40 percent increase in patronage and increased spending due to the MRA’s activities.
● Significant refurbishment of The Big Top Market Fresh and Woolworths.
● Resurgence in rentals and land values in the last 12 months.
● Attraction of a wider demographic to the area.
● Increase in high value commercial industries attracting knowledge workers and creative industries into the area.
Precinct Turnaround
Before the MRA’s activities, the Maroochydore town centre was in demise; it lacked investors and regeneration. In 2012, when the Association incorporated:
· There was an average of 8 empty street frontages in both Duporth Avenue & Ocean Street alone
· More than 30 independent businesses had closed down in the decade prior
· In the last two years the precinct has welcomed over 25 new businesses into the precinct (more detail EDP, 2015) www.mra.org.au
The significant turnaround of the MRA precinct in the last three years is due to the work of motivated and self-starting community leaders who adopted a unique approach to stimulate and test local demand via self-funded events, artwork, strategy development and private and public sector engagement.
Economic Development Plan (EDP) 2015
The publication of the EDP has created a strong framework for the MRA to create partnerships and fast track priority actions to continue the momentum and build a robust economy and a sustainable community for the MRA Precinct. It provides 32 Action Plans across five key areas:
- Strengthen arts culture and entertainment
- Ensure the precinct is economically sustainable and prosperous
- An inner city village with strong local and visitor appeal
- Sustainability initiatives
5. A robust and secure MRA.
Recent local area benefit
Since the publication of the EDP in July 2015, businesses, investors and entrepreneurs have used the information and statistics for promotion, market research, data sets and decision-making documentation for new developments.
The MRA now engages with Sunshine Coast Council and other key stakeholders to drive design and amenity, public safety, activation ideas, funding opportunities and partnerships for the precinct.
The EDP and details about these priority actions are available on our website www.mra.org.au.
A new funding model
The Economic Development Plan (EDP) identified two key elements for successful long-term revitalization:
· a self-motivated and strong community and individuals
· secure funding streams
To date, the MRA has created significant change through self-funding via the running of events. While there is great support from the wider community, much of the day-to-day work is undertaken by a handful of individuals through a large amount of good will.
One of the key recommendations in the EDP is to move away from a volunteer-based operation to ensure the MRA precinct maintains its vibrancy, sustainability and community activities.
In other successful communities, funding sources for organisations such as the MRA include separate budget allocations from local governments, Benefit Area Levies or Business Improvement Districts (BID).
Why are we proposing a Benefit area levy?
Working examples of a Benefit Area Levy model are known as Business Improvement District (BID). This is a sound mechanism with more than 2500 examples worldwide (see Appendix 3).
Essentially it is a defined geographic area in which commercial property owners are charged a special levy which provides a collective funding source for initiatives that have a direct benefit to the maintenance, development, and promotion of their commercial business district.
A BID levy does not replace ordinary Council expenditure but works to fast track a range of local initiatives that increase foot-traffic/people, activity and investment back into the area. These funds support programs such as marketing and promotion, street enhancement, safety and security, events and festivals, and business development.
BIDs may vary in structure, generation of total revenue stream and strategies, however the BID model is an opportunity for business and property owners to get together and respond to challenges and seek opportunities that benefit their business and community.
The Opportunity – A Benefit Area Levy proposal
In 2015 75% of MRA's funding was generated through events and volunteer efforts, including 960 unpaid hours each year by the MRA's volunteer board.
This graphic represents the proposed method to provide a solid platform for our local area initiatives to continue.
This approach provides a solid mix of self-generated and collective accountability, maximised economic value for MRA Precinct stakeholders, as well as the region’s wider economic and cultural development.
The combined revenue is allocated for current MRA activities and short-term actions (1-2 years) recommended in the Economic Development Plan 2015, under the following strategic areas:
· Economic and cultural development
· Key event coordination
· Marketing and communication
· Clean, safe green precinct – design and amenity
· Establishing comprehensive research about the area.
MRA Special Benefit Area Proposal - Budget Summary 2016/17
Economic contributions and economic value 2016/17
Refer to Appendix 1 for a breakdown of the MRA Annual Business Plan 2016/17 across the MRA’s five Strategic Management areas. Appendix 2 illustrates MRA precinct boundary zone 1 & 2.
Key points
· Your levy contribution will deliver 4 times its value to the precinct.
Or put another way, every $1 of BID Levy delivers $4 of value to the precinct.
· Over 1/3 of MRA's funding is generated by its volunteers, through events which promote and activate the precinct.
· Over the next 12 months, volunteers will contribute 3,000 unpaid hours to bring you 11 Nights on Ocean markets and Capt & The Duke Pop up Bar and the annual Ocean St World Festival Easter Sunday.
· This provides a collective resource for individual commercial or retail businesses (foot traffic, marketing exposure, advocacy about local issues) far beyond what could be afforded alone.
Appendix 1
MRA Budget 2016/17 – as part of a Benefit Area
Appendix 2
MRA Precinct Area Boundary
The associations endorsed precinct area is illustrated below. We recognise that to date the majority of the direct benefit from our activities and advocacy has been clustered within Zone 1.
However Zone 2 remains an important part of the long-term planning and activation strategy in the MRA EDP 5 year strategic framework.
Appendix 3
Examples of Benefit Area levy and Business Improvement Districts (BIDs)
Noosa Junction Special Area Levy Noosa Council www.noosa.org.auhttp://www.noosa.org.au
The Noosa Junction Working Group (established in 2009/10) has been working on actions outlined in its Commercial and Economic Planning Strategy aimed at strengthening Noosa Junction as a combined retail, commercial and entertainment centre.
Twin Waters Special Area Levy - Enhanced Parks Maintenance
A highly successful program of landscaping and maintenance works in the Twin Waters Residential Community above the standard level of service applied by Council.
Downtown Alliance – New York www.downtownny.com/who-we-arehttp://www.downtownny.com/who-we-are
The Downtown Alliance (established more than 25 years ago) is an outstanding example of the long term benefits of a partnership approach to precinct management. The Downtown-Lower Manhattan Business Improvement District (BID) provides service, advocacy, research and information to advance Lower Manhattan as a global model of a 21st century Central Business District for businesses, residents and visitors.
Fremantle BID www.fremantlebid.comhttp://www.fremantlebid.com/
The Fremantle BID is made up of a diverse range of dining, retail, entertainment and professional service businesses. It has revitalised the township through street activation groups, who researched and surveyed the area and engaged the community to give its streets a facelift and make the town a place known for its festivals. It is now a favourite place for tourists and locals.
Canberra BID www.inthecitycanberra.com.au/business-improvement-districts-101/http://www.inthecitycanberra.com.au/business-improvement-districts-101/
Canberra CBD Ltd is a non-profit organisation formed in 2007 with an aim to bring the private and public sector together to turn Canberra’s city centre into a world-class hub that would be known for its energy, liveability, commercial market and a strong sense of community.
Gosford, NSW www.gosfordcity.com.au/index.php/infohttp://www.gosfordcity.com.au/index.php/info
Gosford Business Improvement District Incorporated is a not for profit organisation which allocates and manages the funds collected by Gosford City Council from commercial property owners within a designated area in Gosford City Centre. The funds are used for a range of projects and services to make Gosford a safer, cleaner, commercially vibrant and attractive city.
Page 3