Plans to launch a new business improvement district in Solihull which could have secured £550,000 in new funding have been rejected.
Companies in Shirley were supportive of the proposal to set up the new business body but it fell down due to the requirements of the voting system in the recent ballot.
A business improvement district (BID) is a precisely defined geographic area in which companies pay an extra levy on their rates to fund additional services such as events and initiatives.
The ballot system to decide whether a BID is launched comprises two elements.
Out of a total number of 256 eligible votes for the Shirley BID, 96 votes were cast.
With 67 supporting votes, 70 per cent of businesses voted in favour of the BID.
However, with an aggregated rateable value of businesses eligible to vote at £4,983,550, an aggregated rateable value of £1,906,500 voted in favour, making a total of 38 per cent.
This means that many of the larger businesses who voted did not support the proposals.
For the BID to be implemented, more than 50 per cent of businesses were needed to vote in favour by both their number and aggregate of rateable value.
Shirley BID was aiming to improve its town centre and increase visitor numbers by ensuring they stayed for longer, spent more and returned more regularly.
Organisers claim that, if the BID ballot had been successful, it would have generated £550,000 of extra funds over its five-year tenure to invest in a programme of visitor events and street markets, employ a street warden and work with partners to deliver improved visitor wi-fi.
The BID said it would have campaigned for improvements to existing car park facilities and the introduction of parking meters while other ideas in its business plan included improving Christmas lights displays, promotional campaigns and street paving maintenance.
It would have joined its neighbouring BID covering Solihull town centre and a host of other BIDs throughout Birmingham.
Victoria Hicks, a member of the Shirley BID shadow board, said: "Unfortunately our worst fears have been confirmed and we have lost the vote to create a BID on rateable value.
"While we're understandably saddened the majority of businesses of Shirley who were wise enough to recognise the benefits of joining together for a brighter future have been overruled, we're so proud of the whole BID team.
"The team was made up of volunteers from local businesses who gave up their time on a daily basis, working hard and striving towards a united Shirley.
"Thank you to the team and every business owner who voted 'yes'."
