TOWNSHIP OF ESQUIMALT STAFF REPORT
MEETING DATE: July 22, 2024, Report No. ADM-24-034
TO: Council
FROM: Terése Finegan, Manager of Economic Development
SUBJECT: Business Licence and Regulation Bylaw Review
RECOMMENDATION:
Recommendation
That Council gives three readings to “Business Licence and Regulation Bylaw, 2024, No. 3144”.
Body
EXECUTIVE SUMMARY:
The purpose of this report is to provide Council with the results of research completed to compare the business licence fees for the Township with other neighbouring municipalities. As a result of that research, a number of changes to the Business Licence and Regulation Bylaw are proposed to help promote a business-friendly environment by providing clarity and information on new categories of licences.
BACKGROUND:
At a Council meeting held December 18, 2023, a staff report containing a review of business license fees was submitted to Council for consideration. Council recommended:
That a review of the Business Licence and Regulation Bylaw, 2013, No 2810 be completed and to include any recommendations to Appendix A (Licence Fee).
Chronology:
• December 2023: Staff report ADM-23-045 outlines a comparison to several municipalities noting major differences in the Pub/Liquor category with Esquimalt notably charging the highest fee of $2,000 per licence.
ANALYSIS:
Staff extensively reviewed the current Business Licence Regulation Bylaw, 2013, No. 2810 (Attachment 1) and compared language and definitions to several other municipalities. The new proposed Bylaw, Business Licence Regulation Bylaw, 2024, No. 3144 (Attachment 3), in addition to providing more clarity for businesses, language and wording have been updated to align with provincial documents: The Community Charter and the Liquor and Cannabis Regulation Branch Handbook.
Notable changes between Bylaw No. 2810 (current bylaw) and Bylaw No. 3144 (proposed new) are highlighted in red in Attachment 2 and include;
New Definitions Added.
- Inter-community business
- Inter-community business licence
- Market/Special Event on Private Land
- Registered Charities
Definitions Changed/Clarified.
- Updated Peddler to Door-to-Door Sales
- Deleted “Pub” and used definitions to align with categories of licences from the Liquor and Cannabis Regulation Branch (LCRB)
- Food Primary
- Liquor Primary
- Liquor Primary (Club)
- Licensee Retail Store
- Manufacturer (Liquor)
- Clarified “Trade qualifications” to a more general and inclusive wording without naming specific ministries.
- Amended Tattoo parlor to Tattoo Artist/Shop
- Updated VIHA to Island Health throughout the bylaw
Formatting/Wording.
- Section 4. Wording - Gender-inclusive language. A Gender-inclusive approach to legislative drafting is also consistent with the values of equality recognized, for example, in the Canadian Charter of Rights and Freedoms, as well as with government policies that seek to promote gender equality and the drafting conventions of the Uniform Law Conference of Canada.
- Simplify and create business friendly language and layout.
- Reorganization of section headings and renumbering.
Considerations for Council.
Liquor Licence Categories (Section 15 and Appendix A)
Current Bylaw:
Only defines one category “Pub” for several business models that incorporate liquor.
Proposed Amendment
Adoption of Liquor and Cannabis Regulation Board (LCRB) Categories:
- The new liquor licence categories will include:
o Food Primary,
o Licensee Retail Store
o Liquor Primary
o Manufacturer (Liquor)
o Liquor Primary (Club)
Rationale:
- To provide clarity and consistency for businesses, the Township will align its liquor licence categories to those outlined in the LCRB handbooks.
- This will streamline the application process and ensure that businesses easily identify and match the appropriate licence type with the Township.
Liquor Licence Fee Structure (Appendix A)
Current Bylaw:
Category “Pub” is a set fee of $2,000
Proposed Amendment:
Suggest pricing to be set at $500 per category for Liquor Primary, Licensee Retail Store, Liquor Primary (Club) and Manufacturer (Liquor). Food Primary to be set at a lesser fee of $125 as liquor sales are generally not the main source of income.
Rationale:
- In the December 2023 Staff Report ADM-23-045 on the review of municipalities View Royal has the second highest fee set at $500 next to Esquimalt which currently sets the fee for “Pub” at $2,000.
- Reduced fees can free up capital for existing businesses, allowing them to invest in expansion, hire more employees, and increase their overall economic contribution to the community.
Licence Fee Proration (Section 16)
Current Bylaw:
The Business licence is renewed annually and is valid from January to December at full fee. A new licence is prorated after June 30th, and the license fee is reduced by 50%.
Proposed Amendment:
Proration quarterly.
Rationale:
To create fairness, flexibility and reduce financial burden to businesses. In addition, this may encourage more compliance and incentivize businesses to obtain licences. Prorated fees can improve business-government relationships by demonstrating a willingness to work with businesses and tailor services to their needs.
Should Council wish to proceed with readings of proposed Business Licence and Regulation Bylaw, 2024, No. 3144, once adopted, it will repeal and replace Bylaw No. 2810 and the new fees, definitions, and other changes would come into effect on January 1, 2025.
OPTIONS:
1. That Council give three readings to “Business Licence and Regulation Bylaw, 2024, No. 3144.
2. That Council provide suggested amendments and gives three readings to “Business Licence and Regulation Bylaw, 2024, No. 3144, as amended.
3. That Council request additional information from staff.
4. That Council provide alternative direction to staff.
COUNCIL PRIORITY:
• Diversified, Thriving Economy
• Good Governance and Organizational Excellence
FINANCIAL IMPACT:
There may initially be a reduction in the cost per business, however there is expected business growth which will result in revenues through an increase in business licence registrations.
COMMUNICATIONS/ENGAGEMENT:
The updated bylaw will be posted to the Township’s website, and the Economic Development Manager will communicate the changes through a newsletter to current businesses.
TIMELINES & NEXT STEPS:
Sept/Oct 2024 - Final Adoption of New Bylaw
Oct/Nov 2024 - Edits to Tempest (software program) and any other documentation related to regulation of business licences
Nov 2024 - Business Licence Renewal notices issued
Jan 2025 - New Bylaw becomes effective
REPORT REVIEWED BY:
1. Ian Irvine, Director of Finance, Reviewed
2. Deb Hopkins, Director of Corporate Services, Reviewed
3. Dan Horan, Chief Administrative Officer, Concurrence
LIST OF ATTACHMENTS:
1. Bylaw 2810 “Business Licence and Regulation Bylaw, 2013, No.2842 including Schedule A and B”
2. Business Licence and Regulation Bylaw, 2024, No. 3144
3. Draft Business Licence and Regulation Bylaw, 2024, No. 3144_Changes_Highlighted