Council calls for outside review of DGBA governance

The operation and effectiveness of the Downtown Guelph Business Association (DGBA) is going under a microscope. 

In a 10-2 vote, council’s committee of the whole agreed to hire third-party consultants to review the organization’s governance structure at a cost of up to $50,000.

“I feel there is merit with the review,” commented Mayor Cam Guthrie. “We owe it, I think, to the BIA community.”

Concillors Phil Allt and Bob Bell were opposed.

The decision followed nearly 2.5 hours of discussion and debate on the subject, which included hearing from numerous delegates who not only supported a governance review but expressed hope it would lead to the DGBA being disbanded.

“Our downtown area is facing great challenges that haven’t been solved despite the board being in place,” commented David Starr, who owns a Woolwich Street law firm and describes himself as an “involuntary member” of the DGBA who contributes “several thousand” dollars annually. “I can’t see an immediate benefit to the people in my area or success of the board generally.”

The DGBA is the city’s business improvement area (BIA) which allows for a special tax levy to be applied to businesses within the defined area. That money goes to the DGBA which is mandated to provide beautification efforts and promotional initiatives intended to attract people downtown.

Several delegates raised questions about how the DGBA spends those funds, but that won’t be part of the review. The board’s financials undergo annual audits and are not in question, city staff pointed out.

“I just don’t think it’s necessary,” Teija Tucker of Aqua Salon said of the DGBA. “I think the BIA is irrelevant now.”

All of the delegates, including DGBA executive director Marty Williams and board chair Kevin Polach said they support a review, as did the city’s CAO and general manager of business, development and enterprise services.

“Our DGBA is good, but it isn’t perfect,” Polach told council, adding, “better has always been the objective of the DGBA.”

He noted much of the organization’s work happens “behind the scenes” with lobbying efforts at all levels of government. During the early stages of the pandemic, the DGBA hosted several meetings a week between business owners and government officials in an effort to help people connect with various supports and assistance programs.

In response to a complaint about the DGBA not doing anything about empty, vacant storefronts, Polach noted the buildings are privately owned and it can’t go in and clean them up without permission, which was sought.

A proposal from Downer to refer the matter to the 2023 city budget discussions next fall failed in a 6-6 tie. Joining Downer in support were councillors Christine Billings, Allt, James Gordon, June Hofland and Leanne Caron.

“I don’t think now is the time to do that review,” Downer said ahead of the vote, noting the DGBA should be focused on helping businesses.

Coun. Mike Salisbury was absent for the later part of the meeting, which stretched more than eight hours and was preceded by a two-hour shareholder meeting of Guelph Municipal Holdings Inc. and a one-hour meeting of the committee of management for The Elliott Community, both of which include all of council.

When it comes to the prospect of disbanding the DGBA, that’s something its membership can request. As explained in a report to the committee, council would be required to consider dissolution if it's requested by business representing at least one-third of the taxes levied.

However, there is no mechanism to provide tax-related funding to another organization or group in place of a BIA.

The DGBA membership includes 467 business on 217 properties.