HERTFORDSHIRE COUNTY COUNCIL

PLANNING AND EXTERNAL RELATIONS CABINET

PANEL

TUESDAY 12 FEBRUARY 2008 AT 10.00 A.M.

HEMEL INVESTMENT PLAN: PROMOTING INVESTMENT IN HEMEL HEMPSTEAD AND MAYLANDS

Report of the Director of Environment

Author: David Hughes, Key Sites and Regeneration Manager Tel:01992 555210

Executive Member: D A Ashley

Local Members: P T J Channell, G M Cook, M E Coxage, S M Holmes,

I H Laidlaw-Dickson, E N Singam

1.  Purpose of report

1.1 To inform the Cabinet Panel of a request from EEDA for a County Council commitment towards implementing the Hemel Investment Plan and to consider whether Hemel and the Maylands employment area should receive additional support.

2.  Summary

2.1 Hemel Hempstead is a Mark One New Town which needs regeneration in order to meet future challenges and develop to its full potential. Its future and that of the Maylands employment area are closely aligned. The town is identified as a Key Centre for Development and Change in the emerging RSS. EEDA has developed the Hemel Investment Plan to promote and coordinate regeneration in the town and is prepared to commit resources on the basis that other public sector organisations also demonstrate their commitment. The County Council already supports the regeneration of Hemel and Maylands through a number of initiatives. But given the need to regenerate this New Town and the strategic importance of the Maylands employment area, further support could be made available, particularly to advance elements of the Maylands Master Plan and support skills development.

2.2 This report will also be considered by the Policy and Resources Cabinet Panel on 14 February and Cabinet on 18 February.

3. Recommendations

3.1 The Panel is invited to consider the following as the County Council’s response to the Draft Memorandum of Understanding, and make a recommendation to Cabinet:

3.2 ‘HCC recognises the importance of the regeneration of Hemel and the Maylands Employment area and subject to other partners making appropriate commitments, agrees:

·  to work with partners to produce an Investment and Infrastructure Strategy to identify strategic infrastructure needed to deliver growth in the Hemel area, support regeneration and to identify possible sources of funding;

·  to continue to work with Dacorum Borough Council to deliver an urban transport plan for Hemel and associated traffic modelling to enable future development proposals to be tested for their effects on the highway network;

·  to part-fund and support a scoping study into the opportunities for a green energy centre (including CHP facilities) serving Maylands and future development to the east in conjunction with Dacorum Borough Council and Renewables East;

·  to support the inclusion of the regeneration of Maylands as a short term action in the draft Sustainable Community Strategy and to support bidding for resources such as GAF, CiF and RTF monies;

·  To investigate the feasibility of supporting a Further Education (FE) presence in Maylands to better match skills and business needs;

·  To support in principle the introduction of the Business Improvement District if agreed by local Business Partners and to consider the introduction of any future Supplementary Business levy on the Maylands area in the light of the BiD.

·  To encourage Dacorum Borough Council to maximise the S106/tariff potential of new development to support regeneration:

·  To encourage the Dacorum Partnership to consider the use of part of its anticipated LAA Reward monies to support specific initiatives in Maylands.

4. Context

4.1 Hemel Hempstead is a Mark 1 New Town developed in the immediate post-war period. Now over 50 years old, it is arguably one of the more successful of the original new towns but has reached the point where regeneration is needed to build upon its successes and strengths in order to create new opportunities and ensure a positive legacy for future generations.

4.2 Hemel is characterised by a series of residential areas with neighbourhood centres at their core and a number of parks and open spaces. There area several important business areas, Maylands being the most significant and comprising one of the largest concentrations of businesses in the East of England. Commercial success within Maylands lies at the heart of Hemel’s prosperity and is also significant for the economy of Hertfordshire and the East of England.

4.3  As a result of the Buncefield explosion many of the 620 business premises on Maylands were seriously damaged along with nearby residential properties. Some of the affected businesses have relocated permanently since the incident and about 25% are still experiencing disruption. Nearly 100 jobs have been lost while a further 2000 remain at risk.

4.4 The Maylands Steering Group, comprising Dacorum Borough Council (DBC), St. Albans City and District Council, English Partnerships, EEDA, the Maylands Task Force and HCC was set up in October 2006 and has commissioned a Master Plan to reposition Maylands as a premier regional business location and a green business park, provide a detailed development and regeneration vision and provide a development brief for the Maylands Gateway site. HCC contributed £40K to the Master Planning process and was represented on the Steering Group. The cost of implementing the Master Plan’s proposals is estimated at £260M with public sector investment of £45M expected to lever in £215M of private sector contributions to include contributions through S106 agreements.

4.5 Work by Local Futures, commissioned by HCC on behalf of Hertfordshire Forward (July 2006) and by DBC (December 2006) revealed that between 1999 and 2004, economic growth in Dacorum failed to keep pace with the UK as a whole. Over the period, employment declined in contrast to a growth trend across Hertfordshire. The reports commented unfavourably on the faltering pace of employment change in Dacorum although it was recognised that the District enjoys high knowledge-based employment, exhibits a strong enterprise culture and remains a significant but declining economic force.

4.6 In terms of transport and accessibility, Dacorum scored lower than the East of England (GB 100, Hertfordshire 139, East of England 59.2 and Dacorum 52.5) Scoping work for the Hemel Urban Transport Plan (6.5 below) identifies lack of linkages between the main destinations particularly the railway station, town centre and Maylands, lack of east-west bus services, poor cycling provision and congestion on the A414 and at the Plough roundabout.

4.7 The town centre has been improved in recent years with new developments and a department store, but there is limited comparison shopping offer, a lack of specialist shops and a lack of diversity particularly in leisure, restaurant and evening activities. DBC intend to bring forward a Town Centre Master Plan later this year and its preferred developer, Thornfield is expected to submit a planning application for the Waterhouse Square development, including new Council Offices and a performing arts venue in 2009.

4.8 The need to regenerate the town coupled with the opportunities it offers are reflected in the emerging RSS, which identifies Hemel Hempstead as a Key Centre for Development and Change, a location for physical and social regeneration, a regionally strategic employment location, major town centre and regional transport node. Overall housing growth of 12,000 dwellings is envisaged in Hemel and elsewhere in Dacorum, probably involving an extension of the built-up area into St Albans District.

4.9 Launched in February 2006 by DBC, English Partnerships and EEDA ‘Hemel 2020 Vision’ forms a regeneration prospectus for the town. It provides a context for work to regenerate the Town Centre, Civic Zone, Maylands Gateway and a number of smaller sites including local neighbourhood centres, and open spaces. HCC is represented on the Board of Hemel 202 Vision.

5. Hemel Investment Plan

5.1 Promoted by EEDA at the Hemel Investment Conference in September 2007, the Hemel Investment Plan seeks to;

·  encourage the regeneration and transformation of the town,

·  develop business competitiveness, productivity, entrepreneurship and skills development,

·  attract inward investment, regenerate Maylands and the town centre,

·  improve the image of the town, and

·  provide sustainable transport solutions.

5.2 Following the conference, Hertfordshire Prosperity Ltd (HP Ltd), on behalf of EEDA, DBC and the Maylands Partnership, prepared a draft ‘Memorandum of Understanding’ intended to encourage public sector partner’s commitment to the Hemel Investment Plan. This currently includes commitments from Business Link East, EEDA, English Partnerships, HP Ltd, and the Maylands Partnership. Commitments are also sought from other public sector partners including DBC, University of Hertfordshire and the County Council.

5.3  EEDA’s commitments include:

·  Commission and support the working up of a New Town Improvement District special designation, promote this to Government and promote Hemel as the first such designation;

·  Continuing to support the (Maylands) Recovery Team;

·  Hemel-proof mainstream interventions to ensure they prioritise and focus on Hemel’s challenges;

·  Commissioning new initiatives to enable Maylands/Hemel to progress their green ambitions and,

·  Provide at least the first £2M of any public gap-funding required to enable phase 1 of the Maylands Gateway, (a technology-focussed business park to be located at the entrance to Maylands) to proceed.

5.4 While a number of EEDA’s commitments can be carried out at no cost and within existing staff resources, others represent new initiatives which are currently not costed but which may require resources in the future.

5.5 DBC is still considering its response but is likely to set out its commitment under five themes – property/buildings, land, people, revenue and capital. Depending on the extent of that commitment, Cabinet approval may be required and a final decision may not be made until March 2008.

5.6 The County Council’s response will need to be endorsed by the Leader of the Council.

6. HCC’s commitment to Hemel

6.1 Cabinet, at its meeting on 17 September 2007, and in response to a request from DBC for support in opposing the re-introduction of petrol and diesel storage at Buncefield, agreed to support DBC and local partners in seeking to maximise the opportunities to regenerate Maylands.

6.2 The County Council already undertakes a number of roles to support the regeneration of Hemel and Maylands as planning authority, highway authority, waste authority and in its wider partnership role providing community leadership and promoting social, environmental and economic welling-being. These on-going commitments can provide the basis of the County Councils response to the Hemel Investment Plan. But given the clear need to regenerate Hemel and importance of the recovery of Maylands, there are several additional measures that could be undertaken.

6.3 The County Council is working with District Planning Authorities and other partners to develop the Hertfordshire Infrastructure and Investment Strategy (IIS) to identify the strategic infrastructure needed to deliver housing and employment growth together with possible sources of funding. This will include a transport model to set the strategic transport context for the area and test the strategic impact and options for growth and depending on the timing, influence the major development and regeneration projects as they progress.

6.4 DBC sees the IIS as essential to their Local Development Framework programme and the regeneration of Maylands and has indicated their strong support for the project. The development of the IIS is subject to securing sufficient funding from Central Government and is being progressed by the newly-created Hertfordshire Infrastructure and Planning Partnership.

HCC Commitment:

·  to work with DBC with partners to produce an Investment and Infrastructure Strategy to identify strategic infrastructure needed to deliver growth in the Hemel area, support regeneration and to identify possible sources of funding.

6.5 As highway authority, HCC is working with DBC to produce an urban transport plan for Hemel. This will complement and inform the IIS and will be accompanied by modelling work to enable the traffic implications of individual proposals such as Maylands and the Town Centre to be tested. Modelling work, jointly funded by DBC and HCC, is programmed to start in April 2008 and the Transport Plan will report in September 2008.

HCC Commitment:

·  to continue to work with Dacorum Borough Council to deliver an urban transport plan for Hemel and associated traffic modelling to enable future development proposals to be tested for their effects on the highway network

6.6 As waste planning authority, HCC is responsible for all land-use planning matters associated with waste including preparing the Minerals and Waste Development Framework Sites Allocation DPD Preferred Options Document which identifies Maylands as a possible location for waste uses. To support the concept of a green business park there is the opportunity to help promote the development of a green energy centre using a variety of renewable energy technologies. This could provide a number of mutual benefits, enabling waste from Maylands to be dealt with close to where it is created, providing heat and power to local businesses at preferential rates and helping HCC to meet its Waste Management and Waste Plan objectives.

6.7 HCC could support and DBC lead, a scoping study to assess the opportunities for CHP generation, possibly in conjunction with DBC and Renewables East. This would need to encompass opportunities both on Maylands and from future residential development on adjoining land while providing a model that could be applied elsewhere in Hertfordshire such as at Gunnels Wood. Funding would come from the Environment Department’s Sustainable Projects budget. In addition, discussions are shortly to take place with a developer interested in progressing an energy from waste facility.

HCC Commitment:

·  Part-fund and support a scoping study into the opportunities for a green energy centre (including CHP facilities) serving Maylands and future development to the east in conjunction with Dacorum Borough Council and Renewables East.

6.8 In its community leadership and partnership role, HCC supports the social, economic and environmental well-being of Hertfordshire through Hertfordshire Forward and its emerging Sustainable Community Strategy. This expresses support for the regeneration of Maylands following the Buncefield explosion as one of its short term objectives between 2008 and 2011.

HCC Commitment:

·  To support the work of Hertfordshire Forward and the new LAA economic development and environment theme to assist the regeneration of Maylands and to act as a partner/promoter in bidding for resources such as GAF, CiF and RTF monies.