Decision details

ENTERPRISE ZONE CAPITAL INTERVENTIONS PHASE 4

Decision Maker: Cabinet member corporate strategy and budget

Decision status: Recommendations Approved

Is Key decision?: Yes

Is subject to call in?: Yes

Purpose:

To agree the next phase of capital interventions to make council owned land at the Hereford Enterprise Zone (Hez) ready for investment from either private sector developers or businesses, or from direct development undertaken by the council.

 

The capital interventions within this phase broadly relate to the provision of new road and utility infrastructure to service plots, site ground raising to comply with flooding mitigation measures, more specific plot works when end user requirements are understood, and site wide signage and landscape works.

Decision:

That:

(a)       £2.55m from the enterprise zone capital programme provision be allocated to the following infrastructure interventions at the Hereford enterprise zone:

Augment the zone-wide ground raising solution utilising spoil from the North Magazine

£450k

Road access interventions

£400k

Utilities investment as follows:

  • Water, foul, gas main provisions to the North Magazine
  • Utilities for plot C1
  • Specific plot by plot provision as required

 

£750k

£300k

£150k

Plot works

£300k

Site wide improvement works including strategic signage and landscaping interventions

£200k

Total

£2.55m

(b)  the Economic Development Manager be authorised to take all necessary operational decisions to implement the above interventions, including the appointment of contractors following an appropriate procurement process.

Alternative options considered:

1.         Option 1 – make no forward expenditure on the enterprise zone (EZ).

Advantages

There would be no further capital outlay by the council.

Disadvantages

This would result in applying a brake on or even end further sales of land on the zone, with consequent impact on sales receipts, business rate returns and the reputation of the council. Clients are expecting service-ready plots and the sale price reflects this.  There has been no appetite to buy the land in its original state.

2.         Option 2 – agree a reduced amount of expenditure

Advantages

This would reduce the capital outlay by the council.

Disadvantages

A lower capital outlay would serve to reduce the volume of sales, which would be confined to those plots which are made ready for development.  This would change the nature of the zone’s approach which has been commercial in intent and responsive to the speed of client interest.  Some clients would be turned away or asked to wait.  This option would not be in the council’s interest as it would reduce the capital receipts received and severely reduce the total business rate retention figures over the 25 years life time of the EZ programme up (up to 2038).  Again it would impact negatively on the zone – turning away a prospective client on the basis that plots could not be made ready for them would change the perception of and reputation of the zone as a place to make an investment

Reason Key: Expenditure;

Wards Affected: Dinedor Hill;

Contact: Nick Webster, Economic development manager Email: nwebster@herefordshire.gov.uk Tel: 01432 260601.

Publication date: 15/06/2018

Date of decision: 15/06/2018

Effective from: 22/06/2018

Accompanying Documents: