STRATEGIC PLANNING & PARTNERSHPS PANEL - 15 September 2005
INFORMATION NOTE
KEY EMPLOYMENT SITES
Contact: Tom Hennessey (01992 556243)
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1. Purpose of Note
This note provides a brief background on Hertfordshire’s Key Employment Sites, and other regeneration projects of significance in which the County Council is involved.
2. Background and history
The County Structure Plan 1991 – 2011 (April 1998) defines 6 Key Employment Sites (Policy 15). The full policy is:
‘Key sites have been identified to play a major long term role in the Hertfordshire economy, where employment generating activities will be encouraged and where co-ordinated activity and investment programmes are required to fulfil their full potential. The County Council may from time to time identify further Key Sites on these criteria. The following are identified as Key Sites:
§ Leavesden Park, near Watford
§ Hatfield Aerodrome
§ Essex Road, Hoddesdon
§ Centennial Park, Elstree
§ Three Cherry Trees Lane (Spencer's Park), Hemel Hempstead
§ Cedar Park Plaza, Waltham Cross
The sites and their status are defined below. Of note is the extent to which they are at different stages of implementation, from well advanced (Centennial Park and Hatfield Aerodrome) to requiring, in the first instance, establishing an agreed local development framework (Leavesden Park).
The Key Sites were originally identified at the first Partnership for Prosperity Conference (1991) in the wake of the structural and cyclical decline experienced in Hertfordshire in the late 1980's / early 1990's particularly in the defence and aerospace industries. Development activity at several of these locations has played an important role in regenerating the sites and contributing to the Hertfordshire economy.
3. The changing role of the Key Sites
Initially Key Sites development concentrated on creating new jobs. However, over the last ten years this approach has been revised, due to the following factors:
· Access/transportation difficulties that have been encountered on all the key sites – most notable Hatfield Aerodrome (but also prominent with proposals for Leavesden Park and Essex Road).
· A more favourable attitude to mixed use development (recognising the close interrelationship between housing and employment) as is now being promoted nationally – for instance in PPG3, Sustainable Communities Plan and forthcoming Regional Spatial Strategy.
· A recognition that whilst the creation of additional jobs through new inward investment from outside Hertfordshire is significant, the Key Sites can add value to the local economy in other ways. This includes the promotion of enterprises that will support existing Hertfordshire firms, and providing locations for existing Hertfordshire business to expand or consolidate onto.
Some illustrations of the latter point include:
· The expansion onto the Hatfield Aerodrome Key Site by the University of Hertfordshire.
· The relocation of BT’s internet business from a number of separate sites in the south east (including Hemel Hempstead) to Leavesden Park (Phase 1)
· The potential for securing a world class, digital age film studio at Leavesden – to provide a boost for the south-west Hertfordshire film & media cluster.
· The fact that securing a new road bridge at Essex Road is as much as much about improving the working environment of existing local business as it is about creating additional employment space.
4. The County dimension
In addition to their identification in the County Structure Plan, the Key Sites feature prominently in the Hertfordshire Prosperity's Economic Development Strategy, with the following explicit references:
· The development of one of the Key Sites as a knowledge based business park, of which Hertfordshire has none at present (Under Action Plan 1 – ‘Creating the Knowledge Economy’)
· Seeking more sustainable development on the Key Sites through partnerships between landowners/developers, district councils, the County Council and others (Action Plan 6 - ‘Integrating Economic and Environmental Goals’).
There are also some understated but implicit links between the Key Sites and the wider economy, including the regional dimension; the importance of partnerships to deliver economic goals; the social inclusion agenda and the promotion of the knowledge economy. These are all considered below.
5. The regional dimension
Hertfordshire’s promotion of the Key Sites is in keeping with the draft Regional Spatial Strategy, which stresses the long term and holistic approach to economic development activities and strategies, by providing “ strategic employment sites of the appropriate quality and quantity required…to meet the needs of business” (RSS 14, Policy E4, p110).
The Draft Regional Spatial Strategy (RSS14) sets a positive regional planning framework for the promotion of economic development in the region. It recognises the economic importance of planning to facilitate the extension of research and development based clusters of industry in Hertfordshire, as necessary for the future economic success of the region, building on the existing strengths to maintain its competitive advantage.
The East of England Development Agency regional economic strategy, "A Shared Vision" (November 2004) regards economic clusters and key sectors as being of strategic importance because they facilitate and accelerate innovation and growth, and deliver a competitive economic advantage. This is turn attracts inward investment, increases the skills base of local communities and contributes to the maintenance of high and stable levels of employment which are key objectives of RSS14.
Both RSS14 and the RES thus provide a strong measure of support for the designation of Key Sites in Hertfordshire as a critical element of long term economic growth within the county.
6. The importance of partnerships
The Hertfordshire Economic Development strategy notes the critical importance of partnerships between a range of stakeholders to deliver its objectives. Nowhere is this more important than with the Key Sites.
7. Promoting the ‘knowledge economy’
A substantial proportion of the 300,000m2 existing or committed development on the Key Sites has been for knowledge based businesses. Nevertheless it is almost certainly the case that in an unfettered policy environment, much of the remaining capacity would be lost to distribution and logistics firms, an activity generally acknowledged to add little benefit to the local economy.
Equally, although much has been made of Hertfordshire’s strength in the knowledge economy, the county has yet to secure a knowledge-based business park, while in contrast Cambridgeshire has three.
Key Employment Sites
HCC Role
Centennial Park, Elstree (Hertsmere Borough Council)
A 26.7 ha (66 acres) site adjoining the A41 (T) and close to junction 4 of the M1. This former London Transport Bus maintenance depot is the most advanced Key Employment site in terms of its development. Planning permission has been given for 69,675sqm (750,000 sqft) of mixed use business space and infrastructure works in three phases. Phase one and two have been completed and are largely occupied; phase three has begun and is partly occupied. It is characterised by its quality of landscaping and low density of development. The site is being marketed by the landowners, Slough Estates and is included in English Partnership’s Strategic Sites Database. The County Council is monitoring progress of the development. The Business Park can be viewed online at www.sloughestates.com.
Leavesden Park (Watford Borough / Three Rivers District Council)
Just north of Watford, this 116 ha development site close to the A41 (T) and M25 was formerly a Rolls Royce Helicopter and Engine factory and airfield. Since 1994, the site has been successfully used as a film location for major blockbusters such as ‘Goldeneye’, ‘Star Wars – The Phantom Menace’ and ‘Harry Potter’. In 1999 developers MEPC secured planning consent for a Phase 1 development of 38,500sqm of office space, 314 homes adjacent to the site and a new spine road. Planning permission was further granted (subject to the signing of a Section 106 agreement) for Phase 2 in January 2003 for a media and business park. This consists of 96,000sqm: offices, 8,000sqm amenities and 17,000sqm for a digital film studio.
The County Council in partnership with the districts and MEPC have been locked in protracted discussions since 2003 to progress the S106. The size of the agreement in terms of its value and complexity, added to a global downturn in the telecommunications market have been partly to blame. Equally, a wholesale reorganisation within MEPC has presented new faces to the discussions. However, the agreement is near completion with HCC of the view that the package of measures secured to mitigate the impacts of the development will offer an appropriate response to the potential onerous traffic generation. At the same time, the development offers a considerable and long lasting contribution to the local economy and to consolidating Hertfordshire as a critical component of the British film industry. The development proposals can be viewed online at www.leavesdenpark.com.
Hatfield Aerodrome (Welwyn Hatfield District Council / St Albans City & District)
The largest of the key employment sites situated just off Junction 4 of the A1M. Set in almost 300 hectares of land, Hatfield Aerodrome constitutes a third phase of development. Phases 1 and 2 delivered Hatfield Business Park (mainly warehousing) and Bishop Square (offices). The site offers a mixed-use development location with 371,609sqm (4million sqft.) of business uses, retail and leisure, education (University of Hertfordshire's De Havilland Campus) and residential. Construction of Phase 3 commenced in January 2001 by principal developers Arlington. Planning permission was granted for 191,000sqm of employment land uses (offices, industrial and warehousing), 1,600 houses, the University Campus (including a learning resource centre, accommodation for 1,000 students and sports facilities), a mixed leisure and small scale retail District Centre, two hotels and a heritage and aviation centre.
The Section 106 estimated value of £20million is very complex and wide-ranging. Progress has been beset with issues over the transport improvements in terms of spiralling costs and trigger points and much trading over pre-lets and options. There are a number of issues that HCC is closely involved in resolving and include:
· Passenger Transport contributions
· Traffic movements and monitoring
· Short fall in contributions for proposed primary school
· Concerns over the lack of community facilities
· Long term use of the Grade II Listed administration building.
The development can be viewed online at www.arlington.com.
Essex Road, Hoddesdon (Broxbourne Borough Council)
A 22.5 ha site located within the North East Hoddesdon Industrial Area and adjacent to the Lea Valley Regional Park. The site is of strategic significance lying within the London to Cambridge Growth Corridor. The potential for development at this site is severely restricted by poor access and was previously hampered by a multiplicity of landowners. The development of the site is in two stages. First significant infrastructure improvements is needed (a road bridge over the mainline railway, the closure of a level crossing and re-articulation of the existing Essex Road) enabling the employment land to be brought forward for redevelopment.
The County Council secured outline planning permission for a new road bridge in January 2003 and in partnership with the landowners is tendering for the construction contract. HCC has no financial liability for the construction of the project but will be responsible for adoption and the long-term maintenance on completion. This has involved lengthy and often frustrating negotiations with Network Rail. HCC and Network Rail have now signed an Outside Parties Works Agreement (March 05) along with all the other necessary legal documentation (Stopping Up Order, s278/38/94). Sir Alfred McAlpine have been awarded the main construction contract and work commenced July 05. The infrastructure works, which will cost in excess of £7million, are due to be completed by the end of December 2005. Planning Permission for the employment land was granted in October 2003 and development is scheduled to commence early in 2006.
This project has full support from local members and is a good example of partnership working between HCC and Broxbourne Borough Council. More details about the developers can be viewed online at www.rosemound.co.uk.
Spencer's Park, Hemel Hempstead (Dacorum Borough Council / St Albans City & District)
A 37.2 ha greenfield site in Hemel Hempstead is being promoted for development by landowners English Partnerships, The Crown and Gazeley Properties. The landowners are seeking to develop the site as a "new residential community" with up to 1,800 residential units being suggested.
However, the site is a Key Employment Site for specialist employment activities. This employment designation is proving to be an obstacle in the delivery of the site. In consultation with the landowners and Dacorum BC, the designation is being reviewed and there is potential for the employment land allocation may be transferred to a gateway location along Brakespear Way. This is a more attractive location for employment purposes and has the support of English Partnerships and Dacorum BC.
Park Plaza, Waltham Cross (Broxbourne Borough Council)
A 26 ha greenfield site located at the junction of the A10 and M25. The site, in two sections, has multiple landowners and is the second Key Employment Site designated for Specialist Technological Activities (science related, advanced engineering and Research and Development activities). The main issues with this site have been securing acceptable access to the A10; an appropriate package of passenger transport measures; and a comprehensive specialist employment development. In October 2004 months of speculation of a "mystery buyer" ended when News International went public on their purchase of the southern part of the site. A planning application was subsequently submitted on 31st Jan 2005 for 116,277sqm consisting of Manufacturing Office, Warehouse, some Retail and Miscellaneous uses. Access will be via a new junction north of Little Chef (now closed) and there will be no spine road from the round-about as was originally envisaged.
It is clear that little of this proposal will fall into the specialist employment category. However, the designation does expand to activity in the regional or national interest and having one of the UK's major news publishers printing plant in the County is acceptable.
Both sites designated for STA (which promotes R & D related activities but in effect rules out office development) have been under scrutiny from landowners and prospective developers. However, HCC considers that such a designation continues to be appropriate, although perhaps a more pragmatic view on their implementation should be considered. However, the sites in question are available for development and specifically specialised employment only should they be required for such a use. They were not originally designated to meet Hertfordshire’s general supply of employment generating floorspace.