Significant changes to Cityprom's structure and operations are being recommended ahead of the upcoming City of Launceston Council meeting next week.
The council commissioned a review into Cityprom, which provides support for Launceston CBD businesses, last year to see if improvements could be made to the organisation.
The review uncovered five potential options for the future of Cityprom ranging from making no change to ceasing funding or maintaining Cityprom with some changes.
The review recommends that the council adopt several changes to the Cityprom's structure including revising the name, extending Cityprom's boundaries, institute more reviews to judge performance and establishing a stronger relationship between the council and Cityprom.
Launceston businesses have previously questioned the role that Cityprom performs on their behalf.
However, the Launceston Chamber of Commerce, a peak body for Launceston businesses, has welcomed the recommendations.
"The Chamber looks forward to working with the Cityprom board and the City of Launceston over the next year or so to implement the changes; and are pleased to participate formally in the council's Cityprom transition working group," Launceston Chamber of Commerce chief executive David Peach said.
The Chamber indicated that these changes to Cityprom, which was formed in 1988, would make it fit for purpose.
A key part of the recommendation would see funding for Cityprom be transitioned away from the current CBD levy and funded from a general rate base.
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This would see CBD businesses receive a rate reduction over a three year period until the amount is evenly distributed through the rate-base.
It costs approximately $543,366 to operate Cityprom, and the absolute majority of Cityprom funding is currently provided via the CBD levy.
The new funding would come from a a small increase in the commercial rate but it would not be specifically designated to Cityprom.
Launceston mayor Albert van Zetten said supporting the organisation was in everyone's interests.
"It's in everyone's interests that our CBD thrives and grows from both an employment and economic perspective - and we believe an effective marketing and promotions organisation like Cityprom is the best mechanism by which we can achieve that," he said.
The review suggests one reason for the budget increase would be that the organisation's boundaries should be increased to better align with the current CBD.
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Since its inception, Cityprom has had strict boundaries within which it could operate but those would broaden to match Launceston's changed CBD.
While the official boundaries would be decided by a working group, Cityprom's response to the review suggest the boundaries incorporate the Launceston General Hospital, Kings Park and Penny Royal and the Seaport, and out to the Kmart plaza and Racecourse Crescent area.
That working group will be compromised of members from Cityprom, the council and the Launceston Chamber of Commerce.
This is an example of the strengthening of the relationship between Cityprom and the council which will also include the creation of a City Place Manager position to be the key liaison person between Cityprom and the council.
The review recommends implementing performance accountability framework which would include reviews every four years to be introduced.
Cityprom chief executive Amanda McEvoy welcomed the measurable goals that would be in place for the organisation.
"As a result of the review, we are looking forward to continuing as an independent organisation that is focused on promoting and marketing central Launceston," she said.
"We will continue to work with the City of Launceston to create a new identity with clear and measurable goals and directions, which allows us to continue our important work highlighting the centre of Launceston for the benefit our whole region."
The plan would also see Cityprom officially change its name to Launceston Central City, which has been in use to a certain extent since 2019 and have two optional invited board members going forward.
If the recommendation is adopted by the council at next week's ordinary meeting, it is planned for the changes to come into effect from July 1, 2022.
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