From the city centre and across the suburbs, Newcastle contains many commercial centres. Each centre contains different mixes of businesses, residents and visitors, but all centres would like to optimise their character and commercial prosperity through a coordinated approach to economic development.

To help achieve these aims, Newcastle's Mainstreet Program was established in the early 1990's. Under this model, Newcastle City Council collected a special benefit rate from businesses within each commercial centre to pool funds for economic development. Local businesses then formed Committees of Council to determine programs that used the funds to deliver improved economic benefits to their commercial centre. Examples included marketing, public infrastructure and facility improvements, beautification and special events.

In 2011 the City of Newcastle and the Mainstreet Program's participating commercial centres agreed to shift to an alternative model that changed the delivery mechanism from organisations being a Committee of Council to being an independent Business Improvement Association (BIA), governed by a Constitution. Council continues to collect the special benefit rate; and through a Funding and Service Agreement with each Commercial Centre, Council passes the levied funds from each commercial centre onto each association. Given Council's role as the collector of the special benefit rate, it remains the overall manager of the operational framework for the local BIA network.

It is anticipated that each BIA will work closely with relevant Council staff, to draw on relevant expertise and assist with an integrated approach to the overall economic development of Newcastle.

Existing and emerging BIAs

At the commencement of the 2011 / 2012 financial year, Business Improvement Associations had been established for four commercial centres within the Newcastle local government area:

1. Newcastle City Centre

2. Hamilton

3. Mayfield

4. Wallsend

Some of the above commercial centres may work with Council to explore the merits of expanding the boundaries from which their special benefit rate is collected, so that services can be provided to areas that logically operate as part of the same commercial centre. One example of this is the City Centre, which currently does not represent business alongside Newcastle Beach, Honeysuckle or Wickham.

The Darby Street commercial centre operated as a Mainstreet Committee and currently has a special benefit rate levy collected. Former Committee members of the Darby Street commercial centre have elected to delay establishment of a BIA and structure an expanded cluster of the City Centre BIA. This approach will allow Council to continue distributing the special benefit levy and see it responsibly spent on programs that benefit Darby Street. This approach is likely to involve Darby Street business representation on the City Centre Board.

Businesses within New Lambton, through the Chamber of Commerce, have undertaken workshops and research to plan some programs that will further stimulate the commercial centre. However, the small size of this commercial centre can only offer a small fund from the special benefit rate and a limited number of business champions to establish and operate a BIA Board. Further work needs to be undertaken to determine the most efficient and effective approach to develop sustainable capacity.

 There are several commercial centres contemplating joining the Business Improvement Association model individually or collectively as part of the business incubation approach. These centres have typically experienced dynamic growth in scale or business diversification, and have business champions that would like to work together to activate a special benefit rate and commence programs to further stimulate their commercial centre. Each of these commercial centres has slightly different operating environments and may consider different ways forward. An objective of Council is to minimise the establishment of BIA's that are too small to be sustainable, and to incubate emerging commercial centres within existing BIAs. Ideally, once a special benefit rate is established for these smaller areas, also to ensure BIA Boards represent clusters of like commercial centres to conserve their individual character.

Honeysuckle

Some businesses within the Honeysuckle precinct are working together and building on a number of successful initiatives already undertaken. Major events are often located on the Harbour or along the Honeysuckle promenade, and the benefit of these could be further leveraged through a more coordinated approach with local businesses.

Lambton

Lambton is developing a new business association within the Elder Street commercial centre and there is interest among businesses to establish a formal BIA. Local businesses have in the past year or two undertaken place making projects and Livesites events that have been considered a success and are seen as a reason to move forward with a professional organisation.

The Junction

Some businesses within The Junction area would like to work together and build on a number of successful initiatives already undertaken, such as fashion events and marketing. Further collective work over 2011 may result in a proposal to formalise the arrangement and either form an independent association or form a cluster with a neighbouring BIA.

Programs that use the funds to deliver improved economic benefits to their commercial centre are developed and approved in a Business Plan for the commercial centre and focus largely on marketing, public infrastructure and facility improvements, beautification and special events.

More information

Greg Fenwick, Economic Development Coordinator
Tourism and Economic Development Services
City of Newcastle

Ph 02 4974 2471