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Business Rates and Rents - Talk 24th Jan 2006Car Park ChargesCar Parking Charges Are Threatened Again - 2008 VersionHow are business rates calculated?Click on this link for Documents and Downloads
Dear All,
One of the action points for me from the last Retailers' meeting was to send out guidelines/information recording evidence for the Valuation Officer.
This e-mail and the excel spreadsheet (and the Rates email) are being distributed to Retailers on my e-mail distribution list only at this stage (although I will be giving Lorna of 'This and That' a hard copy as she attended your last meeting). I am doing this on the basis that I agreed I would send it out in Chris Grose's absence at that meeting but he really is the lead and experienced person on this topic; he has agreed what I am sending out to you is OK.
This initiative follows on from the talk we had from the Rating Valuation Officer at the Retailers' November meeting, subsequent e-mails and conversations with him and recent work undertaken by Chris G to produce a user friendly but discreet way to try to identify Retailer's comparative trading figures/indices for the periods before and after Morrison's opening in January 2007.
To quote from an e-mail Chris sent me
" (Retailers) need to provide the evidence so we can decide if we have enough evidence to appeal or not. The spreadsheet I have provided will convert their actual trade to an index if they are concerned about giving actual figures.
I attach a spreadsheet I have produced to calculate the impact of Morrisons on Retailers' takings. All the Retailer has to do is complete the relevant takings column and the computer will do the rest. The important thing is that they get the periods right! Otherwise we'll get a skewed result. Morrisons I believe opened in Jan 07.
There are several columns to enter the takings as this allows for the possible combinations Retailers might have: trade figures in i.e Calendar Monthly, Weekly, 13 months ie each month is 4 weeks). Once they have entered their trade figures, the spreadsheet will calculate the percentages relative to the date Morrisons opened, and they can then print out the second sheet which only gives the percentage figure. They than can write their trade name on it.
(At the same time) It would be useful if they could provide their rent and rent date so we can try and help everyone keep rents down."
As with all we try to do to support local Retailers, it is down to each of you to decide what and how you want to respond to this. Chris is responding to one of the major issues that Retailers identified at one of your earlier meetings (but has been a contentious and major issue for many years). If your figures convince you that you have a strong enough case you have the choice of taking this further by making contact with the Eastbourne Valuation Office; on the other hand you may want to talk with Chris individually or as a group. If you want Chris involved, please send/email your findings to him and he'll get back to you.
The point Chris makes by asking for details of your rent and rent review date is a separate issue from the impact of Morrisons but it has more far reaching and longer term consequences. The 2010 Rating Revaluation timetable shows the majority of valuations need to be undertaken between 1.07.08 and 6.03.09. In addition to the Spreadsheet(Raw data and also Public data sections), I have attached the copy extract of the Valuation Officer's email to me as it helps set the context in which Chris has requested these figures.
I can't take this any further than this so please can you now refer any queries direct to Chris.
Somehow or another we need to get this message out to all tenant Retailers ( and perhaps other non-retail businesses in Crowborough). How much easier/quicker it would be all round if I had all their e-mail addresses!! Please spread the word around to other local Retailers you meet asking them to e-mail me with their e-mail address.
Best wishes
Tony
It is possible the information you are requesting from the traders may be helpful not only to assess the impact of Morrison's, but also to determine the level of value appropriate for the next revaluation. Any rents agreed recently should help to determine the impact of the opening of Morrison's, and also the level of value appropriate as at 1 April 2008; which is the valuation date for the 2010 Rating List. The only complication might be if there are any further physical changes in the locality before the 1 April 2010. These would need to be reflected in the Rating List entries but current rents might pre date the changes. However, this does not happen very often and it is not worth worrying about this until it occurs.
I agree with you that it would be helpful for you to explain the relationship between the Rateable Value and the rent and I set out below a definition you may care to use :
The Rateable Value should represent the annual rent at which it is estimated the property would let for in the open market at a set date. For the purposes of the 2005 Rating List this date is 1 April 2003. For the purposes of the 2010 Rating List this date will be 1 April 2008.
I am also very happy for the office details to be made available and these are as follows :
Address : Eastbourne Valuation Office, St Anne's House, 2 St Anne's Road, Eastbourne, East Sussex, BN21 3LG
Telephone : General No : 01323 530000 My Direct Line No : 01323 530001
FAX : 01323 530098 or 01323 530099
E-mail : andrew.r.scott@voa.gsi.gov.uk VOA web site : www.voa.gov.uk
With regard to the evidence collected, I am happy to receive it direct or via you / Chris. I think it is probably best to leave it to the individual traders preference. As far as the content of the evidence is concerned, you have correctly identified the information required although I would suggest you express it in the following terms :
• Details of any new lettings within the town (including incentives such as rent free periods) as this may provide evidence of a downturn in rental levels or a change in the relationship between shop pitches.
• Details of rents agreed on review with a note indicating whether the agreement contained a provision for upward only rent reviews.
• Details of any rent reductions / concessions agreed outside the provisions of the lease ( usually by way of a side letter)
• The number of vacant shops and the time taken to find new tenants; as this may be an indicator of a reduction in the demand.
• Turnover figures and footfall. Post Morrison levels would need to be compared with corresponding months/years pre the opening of Morrison's to determine whether abnormal trading trends have been experienced.
In order to complete the picture and to truly understand what is happening to the shop market in Crowborough, it would also be helpful to highlight any shift in the nature of the occupiers. For example, are traditional retailers being replaced by restaurant and office users ?
As I mentioned when I attended the meeting, the opening of Morrison's is, in Rating terms, regarded as a 'material change of circumstances' in your locality. As a consequence, anyone who believes the value of their commercial property has been adversely affected by it has the right to make an appeal seeking a reduction in their rateable value. However, I would suggest that we collect and review the evidence we are seeking above before going down this road. If the evidence points to a fall in value it will probably be easier for all concerned if I alter the Rating List entries to reflect this. If after my review anyone is not happy they will still have the opportunity to submit an appeal and challenge my decision. On the assumption this information is requested early in the new year, I would hope we would be in a position to discuss this in detail before the end of the financial year.
As far as the 2010 Rating Revaluation is concerned, the timetable scheduling the various stages of the process is now available and shows the majority of the valuations need to be undertaken between 1 July 08 and 6 March 09. I would therefore anticipate being able to discuss the relevant evidence and my conclusions with you around the end of 2008.
I hope the above is of assistance but please do not hesitate to contact me for any further clarification or information.
Retailers Takings Worksheet to assess evidence re impact of Morrisons.xls
