November 27, 2018

Dear Owen Sound DIA Members;

OBIAA is the network that represents unique and vibrant BIAs across Ontario. The Association supports and advocates on behalf of its members through the building and nurturing of strong relationships and partnerships. OBIAA is a leader in the development and sharing of information, tools, resources and best practices, and is the ONE voice on common issues. (OBIAA Mission Statement).

We regularly provide advice, best practices and templates to BIAs, OBIAA does not provide legal or professional advice and no information contained in this letter should be construed as such. For more information on the OBIAA’s role in advising members, please consult the following webpage: www.obiaa.com/legalnotice.

Due to being in a position to assist BIAs, OBIAA has received many, many phone calls and emails from concerned Owen Sound DIA members over the past few months regarding the direction that the DIA is potentially being taken. We have not been in a position to support or not support the actions of the BIA leadership, neither would we inject ourselves into it. What we did try to do was bring advice from the local Ministry of Municipal Affairs and provided interpretations over the work of a BIA as indicated in the Municipal Act. The Municipal Act gives the definition of a BIA as:

Designation of improvement area
204 (1) A local municipality may designate an area as an improvement area and may establish a board of management,

(a) to oversee the improvement, beautification and maintenance of municipally-owned land, buildings and structures in the area beyond that provided at the expense of the municipality generally; and

(b) to promote the area as a business or shopping area. 2001, c. 25, s. 204 (1).

Corporation
(2) A board of management is a corporation consisting of the number of directors established by the municipality. 2001, c. 25, s. 204 (2).

Local board status
(2.1) A board of management is a local board of the municipality for all purposes. 2006, c. 32, Sched. A, s. 89.

Composition
(3) A board of management shall be composed of,

(a) one or more directors appointed directly by the municipality; and

(b) the remaining directors selected by a vote of the membership of the improvement area and appointed by the municipality. 2001, c. 25, s. 204 (3).

OBIAA has always stated that the direction that the DIA is going, by closing the office and providing parking revenues to the City sets an unfortunate precedent for other BIAs. The Municipal Act governing BIAs was not created to provide an additional revenue to the Municipality, but more to provide the members of the BIA the revenues to revitalize their area, through beautification, maintenance and promotion.

When we recently received a phone call from a Board Member of the Owen Sound DIA there was absolutely no indication that OBIAA’s words, through the Executive Director, would be publicly quoted. Neither was permission to quote our conversation sought or received.

During the conversation, the OBIAA ED did seek assurance that this project was a pilot project and this assurance was received. It was stated that this was to be a 2-year pilot project only.

Regarding the budget, the Municipal Act states:

205 (1) A board of management shall prepare a proposed budget for each fiscal year by the date and in the form required by the municipality and shall hold one or more meetings of the members of the improvement area for discussion of the proposed budget. 2002, c. 17, Sched. A, s. 40 (1).

Council to approve
(2) A board of management shall submit the budget to council by the date and in the form required by the municipality and the municipality may approve it in whole or in part but may not add expenditures to it. 2001, c. 25, s. 205 (2); 2002, c. 17, Sched. A, s. 40 (2).

The goal of OBIAA is to build capacity of BIAs, their staff and Boards. Currently our Board is also assisting small businesses with a project called Digital Main Street. This project aids small main street businesses by providing assessment and learning about digital technologies and providing grants of $2,500 to businesses. Without a BIA in place, we would be concerned that your businesses would not receive the additional benefit of being a BIA.

We ask you to be vigilant, find out how the ‘pilot project’ is being measured and by whom. Also find out how the members will learn if the project has the effectiveness to continue, or not.

We wish you all the very best. Know that OBIAA is here to support BIAs, through all of their challenges and to champion the tool we call the BIA.
 
Sincerely,
Craig Stevens. OBIAA President
Kay Matthews. OBIAA Executive Director
Visit our website: obiaa.com