Downtown owners facing big hike in BIA tax

A city councillor acknowledged that businesses may be facing a “big hit” from the levy increase going to the Downtown Chilliwack Business Improvement Association next year.

Council unanimously approved a 21 per cent hike in the BIA rate for 2010, and 1.7 per cent in the following four years of the agreement.

“It seems like it’s a really big hit in year one,” said Coun. Diane Janzen, referring to local merchants who “may already be smarting” from the economic downturn.

But it’s also the first levy increase property owners have had to consider since the establishment of the Business Improvement Area in 1994, explained BIA president Ken Popove at the council meeting Monday.

So it’s more a case of playing “catch-up,” he offered, as well as striving to make the downtown safer, cleaner, and more attractive.

In the BIA’s letter to the city, Popove outlines the priorities for the new money which will emphasize security patrols, street cleaning and parking enforcement, followed by projects like façade improvement, graffiti removal and other physical enhancements.

The letter promises a cap on administration costs which “will not exceed 30 per cent” of monies granted. At least one administrative position at the BIA was eliminated to free up funding for other projects. The levy increase will generate an extra $48,000, up from the total local area tax requisition of $228,000.

Natalie Flack, manager of Graham’s Gifts on Wellington Avenue, said the 21 per cent hike is “ridiculous and way out of line,” especially with the economy as tight as it is. She estimated the business owner’s levy to the BIA at about $1,000 per year.

“I think we’ve been increased enough,” she said. “Merchants are having trouble making ends meet without giving more to the BIA.”

Andrea Botley, co-owner of Teddy Bear Dreams, said this was the first she heard of the increase, although she doesn’t own the building. Her main concern was that property owners would have no choice but to hike the rents they collect from local merchants.

“If the owners are facing tax hikes, it will probably be reflected in increased rent levels,” she said.

Lolly’s owner Lois Chadburn recently moved her storefront to Wellington Avenue and she just found out she will be one of the property owners facing the BIA tax hike.

“My gut feeling is as much as I don’t like to pay more money, I feel this money will be well spent,” she said. “It may be hard, but at the same time, when you don’t put out the money for key improvements, nothing happens.”

After confirming that this was the first increase the BIA has had in more than 15 years, is one of the reasons why she likely won’t launch a counter petition, she said. Although it may take her some time for the news of the levy increase to sink in, the property owner suggested.

Mayor Sharon Gaetz described the BIA’s request for a hike “a bold ask,” and said she applauded the work they’re doing to increase security and livability downtown.

“That kind of work sends a positive message to community that downtown is being looked after, and that it’s a fun and exciting place to be,” she said after the meeting.

BIA officials worked closely with Chilliwack Economic Partners Corporation to come up with a way to increase the levy that made sense, and wasn’t “too expensive,” Gaetz added.

Janzen said one of the challenges facing the BIA is that they “haven’t kept up with cost increases,” through the years, which makes it more difficult to operate. “They may wish to review that to find a way to keep pace with costs.”

But the councillor underlined that she has a lot of confidence in the BIA and its board which is working toward “an enhanced vision” for the downtown core.

“It won’t happen overnight, but I’m convinced they’re working very hard to improve the downtown, on the physical level,” Janzen said, as well as with enforcement and social issues.

“Ultimately it will be up to the merchants to have their say,” she added.

jfeinberg@theprogress.com

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