By Brian Owens, The Courier
St. Stephen’s Business Improvement Area (BIA) organization, also known as Downtown St. Stephen, is potentially facing a big reduction in funding and a scaling back of its responsibilities under proposals put forward in the town’s new municipal plan.
The new plan, presented to council last week, proposes reducing the levy paid by downtown businesses to support the BIA from its current maximum of $0.20 per $100 of assessed value to just $0.01 and transferring administrative staff and responsibility for downtown promotion and beautification programs to the town or to Future St. Stephen, the town’s wider economic development agency.
“What we want to know is, is that tax beneficial to the downtown?” said St. Stephen Mayor Allan MacEachern.
Alex Henderson, planning director at the Southwest New Brunswick Service Commission (SNBSC), said the rationale behind the idea is to lower some of the costs that impede development in St. Stephen, reduce duplication of services, and address the poor state of downtown as highlighted during public consultations on the plan.
The BIA levy is paid by active businesses within a specific part of downtown – from the border crossing on Milltown Blvd. to Guardian Drugs on King St. But Future St. Stephen (FSS) is funded by all ratepayers in the community, so the cost burden is shared more equally.
“The work BIA does is great and essential but could that be done by FSS or the town, so the cost doesn’t just fall on downtown businesses?” said Henderson. “Downtown being promoted is in everyone’s best interest.”
MacEachern said there is a feeling among council that the BIA hasn’t been doing what needs to be done for downtown. For example several years ago it stopped organizing events, he said, although that is part of the organization’s remit under the BIA by-law.
“We want them to get back to following the by-law, with a proper detailed budget and a better plan being followed,” he said.
Heather Donahue, executive director of the BIA, has resigned her position. The board is meeting on Friday to discuss the future of the organization.
Speaking to The Courier before Donahue’s resignation, Bernadette Cunningham, owner of Bernie’s Body Blast, said she did not think downtown businesses would benefit from reducing the role and funding of the organization. She pointed out that it was the BIA that organized the recent clean-up and repair of the Chocolate Park playground after it was damaged by vehicles.
“They care about the town looking good, so they went and got volunteers,” she said. “They didn’t wait for the town to do it.”
And, she said, the BIA has always been quicker to respond to her questions and concerns than other groups.
“Future St. Stephen has so many other balls in the air, I don’t feel like I’m a priority for them,” she said.
MacEachern said he was open to preserving the BIA in some form “if the members are still willing to pay and they can get everyone on board”.
The area covered by the BIA could also potentially be expanded further up King St., he said, with the levy reduced to account for a larger number of businesses contributing to it. The town could also provide matching funds if it sees encouraging progress, he added.
“We want to see a change, with some positive momentum, more events, and a beautiful downtown,” MacEachern said.
Council is currently accepting written feedback on the draft municipal plan for 30 days, after which a public hearing of objections will be held before the plan is officially adopted as a by-law. Once adopted, the council can then decide whether it wants to adopt or modify the proposals in the plan.
