BY GARY WEBB-PROCTOR
Special to The Globe and Mail
The Ontario Ministry of Municipal Affairs plans to conduct a comprehensive review of legislation governing the operation of municipal Business Improvement Area associations because of concerns raised by supporters and detractors.
Peter Boles, director of the Ministry's community renewal branch, said in an interview yesterday that the ministry "has identified some areas we want to investigate more fully" about the over-all mandate and specifics of the operation of BIAs.
"We want to initiate a comprehensive review of the BIA program across the board to recommend some changes," he said.
Mississauga City Council voted this week to seek improvements in the legislation after a group of businessmen asked it to disband the city's Clarkson BIA because of alleged abuses in the way it is being run.
Three of more than 240 Ontario BIAs - In Aurora, East York and North York - have been disbanded as a result of local opposition, in part fueled by a province-wide campaign against the concept by the London-based Freedom Party.
Under a 20 year-old section of the Municipal Act that governs BIAs, the associations can be formed when a municipality passes an enabling bylaw at the request of a group of businessmen in a defined commercial district.
Once formed, the BIAs are authorized to collect, through the municipality, a special tax levy imposed on businesses within its boundaries and to spend the money on staff, promotions or physical improvements to their district.
The groups also become eligible for certain provincial community renewal grants and may take out loans, but must have their budgets and executive officers approved by the municipalities.
The methods used to run BIAs largely have been left to local dis- cretion, however, and disgruntled members of groups in London, Hamilton, Burlington, Oakville, Georgetown and Brampton, among others, say this has enabled small cliques to control their associations' affairs.
Members of the Clarkson group, for example, say that some executive members are not merchants in the Clarkson area, that some merchants get too many votes, that the organization's books are not open to scrutiny and that projects undertaken have benefited the businesses of executive members the most.
Mississauga City Council, while refusing to disband the Clarkson group, voted to ask the ministry to specify how elections and voting, fiscal policy and other BIA activities are to be carried out.
Mr. Boles said he agreed that some of the organizations have problems that need immediate attention. Some of the areas of concern include how boundaries for BIAs are established and expanded and the interpretation of the tax levy provisions, he said.
Mr. Boles said the ministry has found, however, that conflicts within the groups often arise from personality clashes and that no malfeasance or fraud has been detected.
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
|
Page
last updated on April 28, 2002
