AGENDA ITEM 8
BOROUGH OF POOLE
CABINET
CABINET
31st MAY 2005
RAISING THE GAME: A SUB-REGIONAL ECONOMIC DEVELOPMENT STRATEGYPROPOSAL TO RE-DEVELOP COUNCIL CAR PARKS
DEVELOPMENT OF AFFORDABLE HOUSING AT ARNE AVENUE ZIG ZAGS: REPORT OF THE PORTFOLIO HOLDER FOR LOCAL ECONOMY (INCLUDING TRANSPORTATION)
PART OF PUBLISHED FORWARD PLAN: YES
1.PURPOSE OF REPORT
1.1To consider the recommendations of the Local Economy Overview Group seeking support for continuing joint working with Partners to develop an agreed Sub-Regional Economy Development Strategy.
1.1DECISIONS REQUIREDTo brief Members of a proposal to develop the Arne Avenue ‘Zig Zag’ sites as Affordable Housing, whilst also providing an opportunity provide play facilities for local children.
2.Decisions RequiredRECOMMENDATIONS
2.1Cabinet be requested to:-
(i)note the work undertaken so far and to endorse the approach to the development of a Sub-Regional Economic Development Strategy, together with the proposed changes to the arrangements for partnership working; and
(ii)support the aspirations expressed in the draft Strategy which will inform the development of Spatial Strategy in the Sub-Region, including the advice submitted by the Strategic Authorities to the Regional Assembly and the preparation of the Borough’s Local Development Framework.
Members are asked to consider whether the Council should seek to maximise the use of the following assets;
Site 1 - Chapel Lane Car Park
Site 2 - Dolphin Swimming Poole Car Park
Site 3 - Arne Avenue Zig Zags
Via their redevelopment for residential purposes, subject to planning permission.
Subject to Members decision in recommendation 2.1, Members are asked to consider whether the Council should open negotiations with the following developers;
Sites 1 & 2 - Raglan Housing Association
Site 3 – Western Challenge Housing Association
So as to ensure the Council achieves best value in respect of these sites.
2.1To agree that Housing and Community Services continue to negotiate with Raglan Housing Association in respect of the re-development of identified car parks rather than market the sites on the open market.
2.2To agree that Housing and Community Services continue to negotiate with Western Challenge Housing Association in respect of the re-development of the Arne Avenue ‘Zig Zags’, rather than market the sites on the open market.
2.3To agree to receive another report in XXX the near future subject to negotiations and detailed proposals.
- BACKGROUND/INFORMATIONCAR PARKS
3.1The Local Economy Overview Group at its meeting on 28th April 2005 considered the report of the Head of Strategic Planning Services on a Sub-Regional Economic Development Strategy (attached).
3.2The Overview Group noted that preparation of a Strategy had proceeded well and a copy of the Draft is appended to this Report. The Strategy seeks to quantify aspirations and it is based on the need to address five key issues:-
- Providing the necessary physical infrastructure
- Ensuring adequate provision of Affordable Housing
- Improving the skills of the working population
- Improving the entrepreneurial and innovation levels of local business; and
- Securing effective partnership working so that the Sub-Region is clear about its aspirations and signs up to what has been done.
3.3The Overview Group was advised that a meeting of Chief Executives, Portfolio Holders and Officers had been hosted by Bournemouth Borough Council on 8th April and the draft Strategy had received widespread support, although it had been acknowledged that amendments would be required to ensure that it took into account the rural prospective. The meeting had also addressed governance arrangements, and these are set out in the attached report.
3.4The Strategy will inform the advice of the Strategic Authorities to be submitted in May to the South West Regional Assembly in respect of the Regional Spatial Strategy. The Local Economy Overview Group supported the above recommendations.
Councillor Ron Parker
Portfolio Holder for Local Economy (Including Transportation)
3.1Initial consultation to test the viability of initial proposals has already taken place with officers and portfolio holders from Transportation, Housing and Community, Planning Design and control and Property Services and Financial services.
3.2Two sites have been identified to model the proposals at Chapel Lane North Chapel Lane South car park and the Dolphin Swimming Pool car park.
3.3The Chapel lane car park site proposal is currently for 22 units of accommodation in 2 locations and comprises of 6 x 2 bed flats and 6 x 1 bed flats at the Chapel lane north site and 6 x 2 bed flats and 4 x 1 bed flats at the Chapel lane south site. Works would be undertaken to rearrange the car park with little or no loss of spaces.
3.4The Dolphin swimming pool car park development could provide 30 new dwellings including 10 family houses and provide 58 public parking spaces in place of the 63 undersized spaces.
3.5Proposals for the architecture of the scheme have been developed in partnership with Raglan Housing Association and Charter Architects (currently involved in the Seldown development adjacent to the Dolphin swimming pool in partnership with Western Challenge Housing Association Ltd). The proposed architecture has evolved following informal views from Borough of Poole planning officers.
3.6All feasibility work has been funded entirely at risk by Raglan Housing Association and they would anticipate that the Council could enable a scheme to be developed in partnership with them because of the innovation they have presented.
3.7Housing and Community Services is seeking Member approval to continue negotiations with Raglan on the basis of working up schemes which will adopt an open book approach and lead to the eventual disposal of land to Raglan. At this stage, no detail has been agreed regarding the level of resources the Borough is required to commit to the proposal in terms of supporting the scheme but it is likely that foregoing all or part of the value of the land or recycling of proceeds as Local Authority Social Housing Grant will be required to move towards securing the clear benefits presented.
If, however, the outcome of negotiations proves that working with Raglan Housing Association does not achieve best value for the Council in respect of sites 1 & 2, the Council will be under no obligation to dispose of the sites them.
Indicative land valuesviability studies show it is highly likely that a positive development value will be achieved from these sites, as well as the provision of housing and re-provision of car parking.that the sites may represent a land value of approximately £X. Alternatively, the developments could maximise development value and only secure affordable housing in line with the Council’s planning affordable housing policy.
Another potential outcome would be that a selected number of units could be developed for open market sale, which may present an opportunity to cross subsidise provision of affordable housing on another of the three sites in question.
3.8The car parks identified by Raglan Housing Association should be exempt from tendering both on the open market and amongst the rest of the Preferred Partner group as this is an opportunity that Raglan have presented and not one which was foreseen by the Council. The opportunity to provide affordable housing as well as car parking provision has come about purely as a result of their innovation.
3.9If the Council were to consider tendering these sites to other RSL’s within the Preferred Partnership, it is likely that the offers made will be the same, as RSL’s are subject to the same regulation by the Housing Corporation. The only way an RSL would be able to make a higher offer, would be to invest their own resources into the scheme, which would only be made available at the expense of future schemes in the Borough or by seeking additional social hoiusing grnant from the Council or the Housing Corporation. Furthermore, Raglan will seek to offer market value as determined by the District Valuer for these sites, the value of which is significantly increased by the opportunities their proposals present.
By working with Raglan Housing Association, the Borough would secure improved car parking provision as well as the provision of Affordable Housing on these sites with the minimum of public subsidy, which could not be guaranteed by open market sale.
4.ARNE AVENUE ‘ZIG ZAGS’
4.1The Zig Zags sites situated at Arne Avenue, have long been considered an issue for the Council and local residents. Western Challenge Housing Association, as one of the Borough’s preferred partner Housing Associations, have recently been considering the site and whether it is feasible to be developed for Affordable Housing.
4.2Western Challenge have carried out development and feasibility studies of the sites and have determined that 19 units of Affordable Housing can be delivered on the site.
4.3Working with Western Challenge as opposed to selling the site on the open market will secure many benefits for the Council. In order to maximise what can be offered to the Council, Western Challenge are proposing to develop all of the units out for shared ownership sale. This will mean that the Council will secure somewhere in the region of a £X400,000 capital receipt from the disposal of the site. The same approach will apply to this site as detailed in paragraph 3.10, with open market value being determined by the District Valuer.
4.4 In addition to this, Western Challenge has committed to provide a £50,000 contribution to the provision of new play facilities in the immediate area. This amount will be provided in addition to standard planning contributions and will not affect the amount the organisation are able to pay for the site. In addition to this, Western Challenge have experience of developing play areas and facilities, and would be happy to offer this expertise in delivering this provision, as well as this amount of funding.
If, however, the outcome of negotiations proves that working with Western Challenge Housing Association does not achieve best value for the Council in respect of site 3, the Council will be under no obligation to dispose of the sites them.
SIMON HENDEY, HEAD OF HOUSING AND COMMUNITY SERVICES
Officer Contact – Kelly Ansell, Housing Resources Manager
Local Economy Overview Group – 28 April 2005
RAISING THE GAME: A SUB REGIONAL ECONOMIC DEVELOPMENT STRATEGY
REPORT OF THE HEAD OF STRATEGIC PLANNING
- PURPOSE OF REPORT
- To seek the Overview Group’s support for continuing joint working with partners to develop an agreed sub regional economic development strategy.
- RECOMMENDATIONS
- That the Overview Group notes the work undertaken so far and endorses the approach to the development of a sub regional economic development strategy, together with the proposed changes to the arrangements for partnership working;
- That the aspirations expressed in the Draft Strategy inform the development of spatial strategy in the sub region, including the advice submitted by the Strategic Authorities to the Regional Assembly and the preparation of the Borough’s Local Development Framework.
3.BACKGROUND
3.1Members will be aware that Striving for Excellence identifies a vibrant economy as a priority and requires the preparation of an economic development strategy for Poole and the wider conurbation. Members have received presentations, not only in connection with economic development activity but also in respect of regional and sub regional planning, all of which suggest that we cannot afford to be complacent about the economic prospects of the area.
3.2In particular, the following concerns have been highlighted:
- Relatively low earnings;
- Productivity lower than even the regional average;
- High house prices, with a high price: income ratio;
- A lower concentration of knowledge based employment than we would like; and
- Graduate level skills lagging behind the regional average.
3.3Members of the business community have themselves expressed concern at the way in which the sub region presented itself to the wider world at a meeting with the local authority Chief Executives last year. This was followed by a meeting between Chief Executives, Portfolio Holders and other officers of the three strategic authorities in October of 2004, which gave considerable impetus to the work of developing an economic development strategy for the Bournemouth, Poole and Dorset area. There emerged a determination to:
- Accept that we cannot be complacent;
- A recognition that a clear and widely accepted vision was required;
- Speak with a clear sub regional voice; and
- Recognise that aspirations required support for a policy framework designed to achieve those aspirations.
4.ECONOMIC DEVELOPMENT STRATEGY
4.1Preparation of a strategy has proceeded and a copy of the Draft is appended to this report. It seeks to quantify aspirations and proposes a strategy based on the need to address 5 key issues:
- Providing the necessary physical infrastructure;
- Ensuring adequate provision of affordable;
- Improving the skills of the working population;
- Improving the entrepreneurial and innovation levels of local business; and
- Securing effective partnership working so that the sub region is clear about its aspirations and signs up to what has to be done.
4.2A further meeting of Chief Executives, Portfolio Holders and officers was hosted by Bournemouth Borough Council on 8 April and the Draft received widespread support, although it was acknowledged that amendments would be required to ensured that its focus was sub regional. The meeting also addressed governance arrangements and concluded that there were considerable benefits in ensuring that a revitalised Bournemouth, Dorset and Poole Economic Partnership (BDPEP) became the co-ordinator of this work on behalf of the three Local Strategic Partnerships, with joint thematic action groups covering the key issues set out paragraph 4.1. This would avoid the duplication that would arise if each LSP pursued these issues separately.
5.WAY FORWARD/ NEXT STEPS
5.1A joint meeting of Economic Development teams across Dorset will meet on 3 May to agree the necessary changes to the document, enabling it to be regarded as truly sub regional;
5.2The Dorset Chief Executives will discuss at their next meeting;
5.3BDPEP Executive will consider governance arrangements with a view to taking a report the next meeting of the Board in June;
5.4A 2-page summary of the Strategy to be prepared for communication and influencing purposes;
5.5A high profile conference to sign off the strategy, perhaps using a historic joint Bournemouth/ Poole/ Dorset County Cabinet meeting, and to launch it with other key sub regional partners and invited stakeholders that we need to influence. The attendance of Government, at ministerial level, should be aimed for. This could take place at the end of June or early July.
5.6The strategy should inform the advice of the strategic authorities, submitted in May 2004, to the South West regional Assembly in respect of the Regional Spatial Strategy.
David Ralph
Head of Strategic Planning
April 2005
Name and Telephone Number of Officer Contact:
David Ralph 01202
DRAFT 31/03/05
RAISING THE GAME:
BUILDING A MORE COMPETITIVE SUB REGIONAL ECONOMY
1.A Vision for the Sub Region
1.1The sub-region contains the second largest urban area in the South West, with a population of about 400,000. It has good multi-modal links with the South East, but less good with the rest of our own region. The conurbation in particular has grown rapidly in recent decades, being a popular destination for those moving from the South East. The economy has also grown significantly, with high activity rates and specialisms in the marine, manufacturing, financial services and tourism sectors.
1.2The area benefits from:
A strengthening higher education sector, including Bournemouth University and the Arts Institute;
Bournemouth International Airport; and
The Port of Poole.
1.3Despite the constraints imposed by the environmental designations that surround the built-up area, the Principal Urban Area (PUA) is nonetheless planned to accommodate over 20,000 residential units during the period 2001-2016, second only to the West of England in the region. Much of this growth is being accommodated on brown field land, exemplified by the Poole Bridge Regeneration Initiative, which is expected to provide for 4,000 homes and could generate up to 6,000 jobs.
1.4Nevertheless, we recognise that there is no room for complacency. The following two sections indicate that the sub region is a long way from fulfilling its potential. We are:
- Not as productive as we should be;
- A relatively low wage economy;
- Experiencing significant skill shortages.
A failure to address these issues will have serious social consequences, promoting greater inequality, affecting the competitiveness of local firms and changing the fundamental character of the conurbation. The quality of life we enjoy, and which we sometimes take for granted, is not guaranteed; it must be underpinned by a vibrant economy.
1.5We therefore share a vision of a model sustainable conurbation: continuing to build on the regeneration work already being undertaken within the conurbation; exploiting the opportunities presented by the outstanding environmental quality of the area; raising the game with a more competitive economy; supported by the provision of the necessary infrastructure.
2.How Well Does the Economy Perform?
2.1The local economy can be judged on its productivity; the personal incomes, levels of employment generated and the extent of the deprivation that exists in the sub region. Although these measures are inevitably crude and reflect the general character of the area, including its age structure, they paint a picture of a local economy with high employment levels and relatively low incomes; an economy less productive than it should be and characterised by significant inequality.
2.2Productivity
Table 1 in Appendix 1 refers to the Gross Value Added (GVA) per resident 2001/2. Whilst the Bournemouth/Poole urban area (£15,279) exceeded the performance of the region (£12,873), GVA per resident in the rest of the sub-region, and indeed the sub region as a whole, was less than the regional average.
2.3Earnings
Taking resident based data for 2004, East Dorset and Christchurch exceeded the national average with all other local authority areas below the regional average. If workplace based data is used, the sub-region performed worse; indeed the regional average was only exceeded in Christchurch.