‘We’re trying to always do more with less’ Downtown Winnipeg BIZ increases business levy, will still draw from reserve to balance 2025 budget By: Gabrielle Piché Posted: 5:53 PM CST Thursday, Nov. 28, 2024

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To maintain services amid growing demand and a shrinking tax pool, the Downtown Winnipeg BIZ has increased its business levy for the first time in seven years.

“Like many organizations, the BIZ has been affected by inflation and operating costs have continued to increase,” said Shane Solomon, the organization’s outgoing treasurer.

However, the number of businesses to draw money from has decreased since the COVID-19 pandemic, he told members at the non-profit’s annual general meeting Thursday.

Roughly 130 companies have opened locations in the area since 2020. More than 190 have closed.

Meanwhile, the desire for business improvement zone services — including neighbourhood clean-up efforts and special events — continues to grow, said chief executive Kate Fenske.

“We’re trying to always do more with less,” she said. “We really have tried to keep (the levy) as low as we possibly can, especially through the pandemic, because those businesses were so challenged.”

Leadership underwent “many conversations,” Fenske relayed, and ultimately asked its membership Thursday for a 0.24 per cent increase, bringing the 2025 levy rate to 2.696 per cent.

Eighty-six per cent of member businesses will see their taxes rise less than $500 annually, Solomon said.

The request passed without opposition. Upwards of 70 people were in the crowd.

The approved increase is less than what the BIZ needs to continue its operations, so it’s drawing nearly $613,000 from its unrestricted funds and reserves to balance its 2025 budget, officials said.

The Downtown Winnipeg BIZ hasn’t pulled from its contingent reserve since 2020, Fenske said, adding officials wanted to keep its reserve well-stocked during COVID-19 pandemic-induced uncertainty.

“We’re finding efficiencies wherever we can,” she said after Thursday’s meeting.

It doesn’t mean cutting services or BIZ jobs, she added. The BIZ has crews to clean downtown and to run events; it partially funds the Downtown Community Safety Partnership and advocates for the city’s core.

Finding efficiencies means “doing things a little bit differently” and axing initiatives that didn’t work as planned, Fenske said. She highlighted last winter’s downtown ice sculpture rollout — the artworks were relatively costly and melted quickly. They won’t make a reappearance.

Seeking projects that are “the best fit” for supporting local businesses and will draw people to the city’s core is the main objective, Fenske outlined.

Entertainment and events are a major draw for downtown traffic; the Downtown Winnipeg BIZ wants to “lean into” more events.

“(But) that’s the challenge — we don’t have more staff, we don’t have more budget,” Fenske said, adding the BIZ would like to partner with others to host events.

The BIZ has tabbed $736,320 for marketing, engagement and communication in 2025. A majority of the non-profit’s revenue — $3.48 million — is slated to come from the business levy.

The levy is applied against an annual rental value (ARV) or the net rent per square foot, to determine how much money each business pays. Over the past four years, the Downtown Winnipeg BIZ’s ARV has declined by 11 per cent.

But the number has plateaued recently — a good sign, Fenske said. The zone saw its first net increase in businesses this year, spanning January through June, since the onset of the COVID-19 pandemic. Autumn brought a net loss of one company.

Fenske highlighted redevelopment projects like the former Hudson’s Bay flagship store, which is being transformed by the Southern Chiefs’ Organization. Thursday’s meeting happened in Portage Place Mall, which will be overhauled to hold housing and a health centre.

“It’s been a challenging year in so many ways when we’re looking at … the cost of doing business. At the same time, there’s all these announcements,” Fenske said. “Two things can be true at once.

“I think it’s really important we do remember that we need to celebrate the wins.”

“I think it’s really important we do remember that we need to celebrate the wins.”–Kate Fenske

Calvin Polet has operated his business, Neptune Properties, on Portage Avenue for 21 years. He approved of the 2025 levy increase.

“I think that was absolutely the right decision,” said Polet, who chaired the Downtown Winnipeg BIZ 10 years ago. “Businesses … are committed to doing our part to improve this downtown.”

Social issues — including addressing mental health and addictions crises — and beautifying the city’s core are among Polet’s top concerns. He believes the local BIZ has its “priorities in the right places.”

The BIZ earmarked $1.51 million for cleaning and beautifying downtown in 2025. It has a 16-person enviro team on the streets daily; workers picked 998,178 litres of garbage this year.

Safety and outreach will take $871,926 of the budget. Some $438,000 is devoted to policy and economic development, while $60,350 is slated for diversity and inclusion. The BIZ’s biggest expense is administration, at $1.59 million.

Nearly $1 million of BIZ revenue — $952,264 — comes from government partnerships, sponsorships, grants and sales.

Fenske, who’s led the BIZ since 2018, has signed on for another three years as CEO.

“I wouldn’t have done that if I didn’t feel optimistic,” she said.

gabrielle.piche@winnipegfreepress.com