City pushes back decision on CBD special rate

THE City of Greater Geelong council has pushed back a decision on whether the special rate charged to businesses in Geelong’s CBD will continue after the end of June.

The existing Central Geelong Marketing (CGM) Special Rate is coming to the end of its fifth and final year, and this year is the fifth time in 20 years the council has proposed running the program.

According to the officers’ report to councillors at their February 2 meeting, the Special Rate – set on the capital improved value of non-residential properties – funds the operation and administration of the Central Geelong Marketing office, marketing, promotion and advertising initiatives, the provision of business information, business training and networking, the provision of events and activities, and the associated encouragement and development of commerce and trade within the Geelong Central Business Precinct.

Officers recommended the council declare its intention to declare the special rate from July 1 to June 30, 2026, with properties and businesses to pay an average of $14.83 per week over 2021/2022.

The rate applied to 1,477 businesses across Central Geelong in 2020/2021, with the program generating $1,139,605 from the Special Rate, as well as other minor income from other sources and expected to raise the same amount in revenue over the next financial year.

At the meeting, Cr Anthony Aitken moved (and was seconded by mayor Stephanie Asher) to defer the matter to a future council meeting, and the motion was passed unanimously.

No councillors explained why they supported deferring the declaration of the Special Rate.

Cr Eddy Kontelj declared a conflict of interest on the matter as he owned a property in Geelong’s CBD, and did not take part in the vote.

Central Geelong properties and businesses have mixed attitudes about CGM’s services, with some saying the city should pay
for them.

According to a survey ahead of the declaration of the 2016-2021 rate, 90 per cent of businesses said they were aware of CGM’s programs and 93 per cent agreed there was a benefit to having a collective approach to marketing central Geelong.

However, only 44 per cent thought the Special Rate paying for CGM’s activities were good value and 50 per cent unsure if the Special Rate represented good value.

An independent report commissioned by the city and produced in November found the CGM’s marketing program “represents the gold standard for main street centre management, marketing and business development programs in terms of best practice in Australia”, and CGM’s five flagship promotional activities in 2019 generated $58.50 for every dollar spent.