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Municipal Tools for Planning and Development Series

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Spring 2003

Strengthening Community Through Street Front Retailing

Municipalities across Ontario are actively engaged in community programs to encourage development that relies on existing infrastructure and provides for distinctive, attractive, walkable neighbourhoods with a strong sense of place.    Street front retailing, including a range of entertainment, cultural, and commercial businesses, has a key role to play in creating and sustaining livable communities.  A strong Business Improvement Area (BIA) is a tool that can improve the local investment climate and help street front businesses adapt to shifting economic trends.

St. Mary's Downtown BIA
Source:  Allan Powell

A BIA allows local business people and property owners to join together, and with the support of the municipality, organize, finance and carry out physical improvements and promote economic development in their district.  Section 204 of the Municipal Act, 2001 provides for the creation and operation of BIAs.

New Interactive Tool for Business Improvement Areas

The Centre for Study of Commercial Activity (CSCA) at Ryerson University has created an interactive, user-friendly, digital information warehouse for BIAs.  The information system can enhance the capability of local BIAs, individual retailers, municipal planners and policy makers to respond creatively to the changing landscape of commercial competition.

The database includes annually updated information on the tenant mix, regional competition, demographic mix and characteristics of individual member BIAs.  It also includes a spatially-referenced inventory of commercial activity for all of Ontario.  With this data, it will be possible for BIAs to assess retail change and economic impacts at a neighbourhood level, evaluate the regional retail competition, or determine  commercial service gaps.  The information warehouse also provides a way for BIAs to learn from each other’s successes and innovations.

The information warehouse is maintained through an annual subscription by participating BIAs.  Subscription rates vary according to the size of the BIA.  Members can access data on-line, or by CD ROM. 

The Centre for Study of Commercial Activity (CSCA) at Ryerson University

The CSCA is a not-for-profit, membership-based research centre which is the leading authority on the spatial distribution of retail and commercial activity across Canada.  The Centre partners with the academic community, government and the private sector to carry out practical, interdisciplinary research using digital diagnostic and data visualization capabilities.  To learn more, contact the CSCA directly at (416) 979-5000 ext 1-7537 or mbiasiot@research.ryerson.ca.

Somerset Village BIA, Ottawa

Business Improvement Areas and Community Economic Development

Many municipalities realize that attracting new investment is only part of a good economic development strategy.  Lasting economic development is achieved by retaining existing businesses and creating new ones within your community.

Commercial activities account for more than 40 per cent of Ontario’s gross domestic product, and small independents and local businesses make up the largest share of the jobs in the commercial sector.  BIAs in particular can be a useful tool to foster local community economic development, address vacancy rates, attract and expand the customer base and contribute to the municipal tax base.  

BIAs offer a secure source of funding.  The municipality collects a special charge on all industrial and commercial properties in a BIA area based on a BIA budget approved by Council.  The funds are then transferred to the BIA organization to carry out its work.  Across Ontario, BIAs raise approximately $17 million annually  – money that is collected from local business profits and reinvested in the community.

Companion Tools

• BIAs across Ontario are involved in marketing, business recruitment, streetscape improvement, seasonal decorations and special events.  The  Business Improvement Areas Handbook (2001)  provides information on how to set up a BIA in your community.
• Municipalities can build a package of financial incentives, such as those described in the handbook Municipal Financial Tools for Planning and Development, to encourage distinctive, pedestrian scale, street front development. 
• Under the Municipal Act, 2001 municipalities are permitted to establish small business incubator projects to facilitate the start-up and growth of new small businesses.  Incubator facilities provide affordable space with basic in-place support services, such as access to management and technical expertise.  For more information on incubator projects contact the Ministry of Municipal Affairs and Housing’s Municipal Finance Branch at (416) 585-6315.

The first BIA was created in 1970 at the request of Bloor West Village merchants in west Toronto.  Although now a prosperous and attractive retail shopping area, at the time local businesses were struggling to compete and the area was rundown and marked by vacant storefronts.  The idea of a levy was raised at Council as a means of securing funds to make local improvements and reverse declining retail interest in the area. 

Did you know...

There are now more than 230 BIAs in Ontario.  BIAs also exist in every province as well as communities across the United States

Bloor West Village BIA, Toronto
Source:  Gleb Bylov, Centre for Study of Commercial Activity

SMALL BUSINESS FACTS

53% of all jobs in Ontario are produced by businesses with fewer than 50 employees

62% of all jobs in Ontario are produced by businesses with fewer than 100 employees

96% of Ontario businesses have fewer than 50 employees

Bloor-Yorkville BIA, Toronto
Source:  Gleb Bylov, Centre for Study of Commercial Activity

The Bloor-Yorkville BIA is the largest in Ontario, with about 2,500 members and an annual budget of $1 million

For more information contact:

MINISTRY OF MUNICIPAL AFFAIRS AND HOUSING

Web site:  www.mah.gov.on.ca

MUNICIPAL SERVICES OFFICES

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Secteurs d’aménagement commercial (SDAC)