To undertake a preliminary business case assessment of two potential direct council commercial development projects at Hereford enterprise zone (Hez).

In this instance the direct development undertaken by the council will create new employment space for rent by businesses, this will serve to meet unmet demand for business space at Hez.  This will help to accelerate the achievement of business occupancy targets, and meet the objective of creating more and better quality jobs at Hez, thereby helping to implement an important priority project of the Herefordshire Economic Vision.

That:

(a)         a business case be developed regarding investment opportunities for the council to develop medium scale office and industrial space for rental at the Hereford Enterprise Zone; and

(b)        £35,000 be allocated from the Development and Regeneration Partnership budget to undertake the detailed work required to inform the business case preparation and for this detailed work to be undertaken by the council’s development partner.

1.           Do nothing: There is demand from Herefordshire based companies wishing to expand for medium-scale office and industrial space for rent which is not being met by speculative private sector development.  To do nothing means that these companies stay where they are currently located, in potentially unsuitable and cramped premises inhibiting their growth potential, or move elsewhere to find suitable premises, potentially out of the county.

2.           Undertake direct development at the zone without first undertaking a business case assessment:  It would be feasible to undertake one or more direct developments within the zone based on previous schemes that the council have developed.  However this would involve utilising market, cost and income assessments that were based on historical data which would result in an inaccurate business case and potential for cost overruns or development not suited to market requirements.