First off, I admit that we could have rolled out the 2021 CCDA budget better. I prefer to give people time to process and surprising people over the Christmas break wasn’t courteous. Here are the changes we're proposing and how they fit within broader reforms for the CCDA. By the end if you remain unconvinced I took the liberty of preparing a petition for disestablishment. 51 signatures are required to trigger a referendum (25% of 204 downtown members). If you want to dissolve this is how the process begins.
Reforming the CCDA
“Review alternatives to the CCDA” was a specific goal in my 2017 platform. Like many people I had watched the CCDA endure controversy from afar and wondered what exactly the problem was. I was happy to be appointed the council representative three years ago to see if I could help solve this issue.
The biggest change in the 2021 budget concerns the $100,000 grant from the City of Medicine Hat. The CCDA budget is made up roughly of $100,000 from the tax on business owners and $100,000 from the city. The proposed budget cuts the city grant from the CCDA budget.
The CCDA is a Business Improvement Area. BIAs are organizations governed by provincial legislation, which allows neighbourhoods to combine resources through a tax. They operate like a mini-city council. BIAs and the CCDA can set whatever budget they choose. This budget is then sent to council for approval. (Council will vote on the proposed 2021 budget on January 18.) Council then sets the downtown tax to balance this budget. The tax only applies to licensed businesses within the boundary, not property owners. In 1984 downtown businesses petitioned city council to create this BIA.
Medicine Hat News. September 15, 1984.
There is no requirement for the city to contribute any funds to BIAs. Removing city funds creates more separation and independence for the CCDA. Over the years business owner support for the CCDA has waned. In my time on the CCDA the number of business owners on the board have always been in the minority. That is a red flag for me. BIAs are created by and for businesses. Having so few downtown business owners on the board (currently 2) results in taxation without representation—that is a recipe for controversy.
A council representative was appointed to the CCDA many years ago to provide oversight for these city funds. Once this grant is gone, I think council should remove our representation from the CCDA board. We should also provide a mechanism for downtown stakeholders to elect their own board. That would strengthen the legitimacy of the CCDA board. City council has ambitious plans for downtown Medicine Hat. A organization of downtown business owners should be a powerful partner with aligned interests. The City will support the CCDA through this transition.
Clearing the plate
We need to reset expectations for the CCDA. Given our limited resources we can’t do everything. We need to prioritize. CCDA activities haven’t changed much in many decades. If we should do different things the first step is to pull back from what we currently do. Events, like the Easter Egg Hunt and Chili-Cookoff, bring thousands of people downtown, but what about the other hundreds of days of the year? The pandemic forced us to cancel events. Coupled with the removal of the city grant this clears the plate for the CCDA.
Some criticism of the proposed 2021 budget focuses on staffing costs. We did choose to keep our full time manager and part time administrative assistant—the two paid staff of the CCDA. This will be a transition year for the CCDA and that requires work. Relying on volunteer board members to carry out work hasn’t been an effective strategy since I’ve been on the CCDA.
2021
With the plate cleared the CCDA can concentrate on two foundational questions:
What should a reformed CCDA do?
What is the future of the Monarch Theatre?
In my opinion, facilitating communication between downtown businesses would help this neighbourhood organize to address its challenges. Communication between the CCDA and stakeholders has been an ongoing problem. Not surprising considering how few owners are on the board. Even for well intentioned board members, like myself, that leads to blind spots. (That’s why wide political representation is important for any political body) Rebuilding communication should be our first priority. An elected board would be another important step in answering this basic question of purpose.
The Monarch Theatre is a great asset for downtown to attract visitors. But owning and operating a not-for-profit is not a core mandate of a BIA. Given our limited resources we need to be disciplined about taking on projects beyond our mandate. Exploring options for divesting the CCDA of this asset is another priority for me.
A positive vision
Edmonton has 13 BIAs, Calgary has 12. This model has been successful in other cities. Why has our own BIA been so controversial? Before considering disestablishing the CCDA we might pause and consider the larger picture. The downtown does face a number of challenges. I outlined some of these in a September column. It’s tempting to say that council deserves responsibility and let us handle it. But city council has not always been a reliable ally for downtown. Organization at the neighbourhood level is important. There’s no reason why the CCDA can’t perform this function. It’s easy to criticize the CCDA, but articulating a positive vision of this BIA is harder. Ideally, we should choose between the best versions of any idea.
I have to credit Jeremy Silver, the CCDA board chair, for the idea to fix the CCDA through reforming its basic democratic structure. It’s a great idea. The problems of the CCDA are the basic challenges for any democractic action. What do we do with limited resources? How do we prioritize the challenges we face?
A better structured CCDA would have more legitimacy with stakeholders when these difficult choices are made. The other complicating factor is that while each business has one vote not everyone contributes equally to the CCDA. The tax is based on square footage. Therefore some businesses pay a lot more into this BIA.
Disestablishment process
At least once during my three years on the CCDA another board member asked for my removal as city council representative because they felt I wasn’t sufficiently supportive of the CCDA. I understand their frustration with me. As a member of the board I do owe it to the CCDA to articulate a positive vision and work in good faith towards that. That hasn’t been easy. My perceived ambivalence towards the CCDA stemmed from my struggle to articulate what a better version of the CCDA looked like. The irony of this latest controversy is that I finally do have a vision of a reformed CCDA—with a stronger democratic structure.
However, as a member of city council it’s also my responsibility to help people understand their options should they disagree with me. The frustration of downtown businesses is because they feel powerless to affect change, but this isn’t true. Stakeholders have a veto they can exercise at any time.
A referendum to disestablish a BIA is a serious ask and thus council must be assured that proper procedure is followed. This properly formatted petition follows the guidelines set in the Business Improvement Area regulations. Simply print and gather. If 25% of businesses sign this petition council must set a date for a referendum within 3 months. The last referendum on the CCDA was held in 2007.
I have outlined a path for reforming the CCDA that addresses the structural issues underlying our problems. Stronger organizations at the neighbourhood level is exactly what I’m trying to foster in Medicine Hat. There is too much power and control centralized in city council. We need to develop leadership in other areas of the city. But reform will not be easy and success is not assured and this isn’t my money on the line.
Ultimately, downtown business owners must decide whether to support these reforms or disestablish. Since this BIA was initiated by downtown business the onus should be on business owners to initiate the process to dissolve it. This is supposed to be an organization for downtown business interests. Council should only have a supporting role.
