To receive a report on progress with the Edgar Street Grid Project.

(Councillors GFM Dawe and MAF Hubbard declared personal interests)

The Committee considered a progress report on the Edgar Street Grid (ESG) project.

Mr J Bretherton and Mr G Williams of ESG Ltd gave a presentation outlining progress on the project since November 2009.  This included: planning approvals gained, steps to implement the signed agreement with Stanhope, construction works started and the position on the necessary Compulsory Purchase Orders.  It also set out actions  expected to be completed by spring 2011 including  discharging conditions in relation to planning consents, further planning applications, construction works and business relocations.  Further detail was provided on business relocations from the existing livestock market.

In discussion the following principal points were made:

·         Clarification was requested on the budgetary provision for relocation and whether this was managed by the Council or ESG Ltd.

Mr Bretherton replied that there were three phases to the relocation.  Phase 1 would be financed by the grant from Advantage West Midlands (AWM).  Negotiations were taking place with the Homes and Communities Agency (HCA) over the financing of phases 2 and 3.  The HCA had given preliminary approval to contributing to the scheme.  Detailed negotiations needed to take place which would take some time to complete.  The Council had also applied to be part of a pilot scheme for advanced development zones.

·         Asked about the plans for provision of a substantial hotel as part of the development, Mr Bretherton replied that space had been allocated but there was no demand at the moment and no negotiations were taking place.

·         A Member expressed the view that in seeking planning permission for the Link Road forming part of the project, insufficient consideration had been given to scope for sustainable transport including rail travel, cycling and walking, noting that the railway station was generating footfall of 1million.

Mr Bretherton stated that considerable work had been undertaken on developing a green travel plan including discussions with the Highways Agency.

·         It was noted that most if not all the existing businesses affected by the retail development would need to relocate because the rise in land values would make it uneconomic to remain.

·         In response to concern about traffic congestion Mr Bretherton said that the Council and the Highways Agency had considered the traffic modelling.  The Highways Agency had supported the proposals.

·         Continuing concern was expressed that the retail development would put considerable and unsustainable pressure on the existing Town Centre.

Mr Bretherton remarked that in seeking planning permission for the development the impact on the City Centre would be one of the planning considerations.

·         The Cabinet Member (Economic Development and Community Services) commented that the Edgar Street Master Plan had been updated to take account of the change in the economic climate since the Scheme had originally been proposed.   The indications were that the private sector remained prepared to invest in the area.  At the moment the City and County’s market share of retail expenditure was low. His view remained that if investment did not take place the City would die.  Doing nothing was not an option.

·         It was suggested that Hereford’s main problem was that the infrastructure made it hard to access the City Centre.  That issue should be addressed first.

·         It was asked whether the three proposed anchor tenants on the retail development would demand payments to them prior to the development to secure their involvement.  Mr Bretherton said it was routine practice for developers to offer incentives in undertaking developments of this type.

The Committee noted the update.