Melbourne faces immediate and long-term economic challenges that require innovative solutions. The Experience Improvement Districts (XIDs) policy offers a transformative approach to addressing these challenges, building on the globally successful Business Improvement District (BID) model.
XIDs will focus on creating vibrant business precincts through public-private partnerships, sustainable investment, and creative placemaking. This strategy will position Melbourne as a global leader in emerging industries, while supporting immediate job creation and long-term economic resilience.
This document outlines the XID framework across three key areas:
• Immediate Action: Economic recovery through revitalized business and cultural precincts.
• Long-Term Vision: Positioning Melbourne as a leader in clean energy, digital games, and biotechnology.
• Advocacy Plan: Advocating for tax reforms to support small and medium-sized enterprises (SMEs).
Policy Summary: Experience Improvement Districts (XIDs)
• A Global and Australian First: XIDs are a world-first evolution of the well-proven BID model, customized for Melbourne’s unique environment.
• $150 million investment: Over five years through public-private partnerships.
• Immediate & Long-Term Benefits: Creating jobs, boosting turnover, and preparing Melbourne for future challenges.
• Tax Reform Advocacy: A fairer payroll tax system to support SMEs’ growth and sustainability.
• Future Economy: Strategic investments in digital games, clean energy, and biotech industries.
• Local Autonomy: Empowering local businesses to shape economic policy through democratic decision-making.
• Demonstrated Global Success: XIDs will follow the BID model’s proven impact— +50% increase in commercial property values, +30% business turnover growth, and thousands of new jobs.
1. Introduction to Business Improvement Districts (BIDs) What are BIDs?
BIDs are geographically defined areas where local businesses collaborate on collective projects to improve their trading environments. Funds are pooled through a membership fee to finance improvements such as enhanced public spaces, marketing campaigns, and initiatives that increase foot traffic.
Global Success of BIDs
BIDs have driven economic growth in cities like London and New York, leading to job creation, increased property values, and empowered business communities.
Case Study – London’s West End BID
• Results: +30% business turnover increase, 2,000 new jobs, and +50% rise in commercial property values over 10 years.
• Relevance to Melbourne: Demonstrates how collective investment can lead to sustained economic growth and property value increases.
2. Experience Improvement Districts (XIDs): Melbourne’s Unique Model What Are XIDs?
XIDs are an evolution of BIDs, with a focus on transforming public and business spaces into experience-driven precincts. This shift aligns with Melbourne’s transition to a hybrid working model and post-pandemic recovery.
Key Differentiators from Traditional BIDs
• Experience Focused: XIDs enhance both business environments and public spaces, integrating creative initiatives and technology to create vibrant precincts.
• Day and Night Economies: Targeting both daytime office spaces and Melbourne’s cultural nightlife, driving foot traffic and economic activity throughout the day.
• Sustainability and Innovation: XIDs will promote green infrastructure, clean energy, and high-tech industries, preparing Melbourne for future challenges.
3. Immediate Action Plan: Revitalizing Melbourne’s Economy
Day and Night-Time Economy Enhancements
• Daytime Economy: Street beautification, hybrid workplace solutions, and pop-up shops will encourage office return and boost foot traffic.
• Night-Time Economy: Cultural events, night markets, and laneway dining experiences will invigorate Melbourne’s nightlife, supporting retail and hospitality sectors.
Economic Impact
XIDs will raise $150 million over five years through public-private partnerships, providing an immediate boost to foot traffic, business turnover, and job creation.
4. Long-Term Vision: Melbourne as a Global Leader
Key Future Industries
• Clean Energy: Green infrastructure like solar panels and green roofs will lower operational costs and attract investment.
• Digital Games & Film: XIDs will foster Melbourne’s reputation as a global hub for digital innovation and film production.
• Biotechnology: Investment in shared biotech spaces will attract global talent, positioning Melbourne as a leader in this critical future industry.
Future Goals
By 2050, Melbourne will be known as a leader in clean energy, digital innovation, and biotechnology, supported by sustainable business precincts.
5. Advocacy Plan: Tax Reforms and Collaboration
Payroll Tax Reform
We advocate for a sliding payroll tax scale to support SMEs as they grow, reducing the disproportionate financial burden on small businesses and encouraging job creation. Land Tax Reforms
Land tax reductions for businesses investing in XID initiatives, such as green buildings, will encourage investment in Melbourne’s CBD and surrounding areas.
Collaborating with M9 Councils
We will collaborate with Melbourne’s M9 councils to trial XIDs in key economic hubs, creating a polycentric model that distributes growth across the region.
Conclusion: XIDs—A Path to Prosperity
XIDs will enable Melbourne to thrive by supporting businesses, attracting investment, and fostering economic resilience. This policy will not only drive short-term recovery but also lay the foundation for long-term innovation and sustainability.
Case Studies of BID Success Worldwide
• London’s West End BID: +30% increase in business turnover since the BID was established, creation of thousands of new jobs in the area and significant improvement in property values, with an average increase of 50% in commercial property values over a 10-year period.
• Dublin Docklands BID: +40% office occupancy rates, +10,000 new tech
jobs. The area has become one of the most desirable locations in Europe for tech companies, solidifying Dublin’s reputation as a tech hub.
Through XIDs, Melbourne will become a global leader in both traditional and future industries, with a flourishing economy at its core.
Deep Dive Case Study: New York City’s Times Square BID
Overview: Times Square in New York City, one of the most famous entertainment hubs globally, has undergone significant transformation since the introduction of its BID. Times Square was once known for crime and urban decay, but the BID helped to revitalise the area, turning it into a global icon of entertainment, tourism, and commerce.
• Initiatives:
o Extensive public safety improvements, including increased police presence and the introduction of pedestrian zones.
o Significant investment in marketing, street cleaning, and public space maintenance.
o A focus on creating a pedestrian-friendly environment, encouraging longer visitor stays and higher spend per capita.
• Key Results:
o A 50% increase in commercial property values over 10 years. o Times Square now attracts over 300,000 visitors per day, bolstering both the local economy and tourism sector.
o Annual business turnover has consistently increased, with hundreds of new retail and entertainment businesses opening in the area.