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

(Councillor Hubbard declared an interest)

The Committee received an updated report on the Edgar Street Grid Project. 

The Economic Development Manager reported that the pressure on Public Sector funding was still considerable and the Government Spending Review on the 20 October should give greater clarification of the national situation.

He went on to say that the ESG project had been identified by the Joint Strategy and Investment Board as an Impact Investment Location (IIL), and as such was considered to be one of the region’s twenty most important regeneration projects.

He added that progress was being made on advancing the Retail Quarter development. The businesses located within the current Livestock Market would be contacted, in early October informing them of the need to make contact with the Council, as their landlord, in order to discuss their tenancy.  Potential relocation sites would be included with any communication.

The Economic Development Manager went on to say that planning permission and funding for the Flood Alleviation Scheme had been secured in 2009.  In order to acquire the necessary land and access ownerships a Compulsory Purchase Order (CPO) process had been initiated in early 2010.  The majority of the CPO Inquiry had been held in early August.  A decision from the Planning Inspectorate was anticipated by the end of October 2010. 

In the ensuing discussion, the following points were made:

That the assets listed in the report as having been purchased with Advantage West Midlands (AWM) funds were now owned by the Council, and that the sum of £5.667m provided by AWM had been spent on the acquisition of these properties.

In reply to a question from a Member, the Development Director, Herefordshire Futures Ltd said that, because the units in Station Approach were approaching the end of their economic life, the Council had a duty to undertake a condition survey on them.

In reply to a question, the Assistant Director, Economy and Culture said that it was unclear what level of funding would be available for regeneration project from Local Enterprise Partnerships (LEPs), but that it was unlikely to be at the level that had been initially available from AWM.  There was a new Regional Growth Fund of £1.4bn available nationally across two years as a potential source of investment.

A Member asked whether public funds were being used to provide financial incentives to major retailers to come to the City.  The Chief Executive, Herefordshire Futures Ltd replied that any deals that were made with retailers were between Stanhope Plc, as the developer, and the company concerned.  No public money would be utilised for such negotiations from either the Council or Herefordshire Futures Ltd.

The Chief Executive, Herefordshire Futures Ltd reported that the meeting that had been had been organised by the ESG Business Association in July had been well attended by the businesses on the Livestock Market and Link Road sites.  The businesses in Station Approach had been offered a three year lease less one day.

Mr L Wolverson added that at the meeting all the businesses had been canvassed concerning the way that they had been treated by the Council.  No business present had been able to say that they felt that they had been treated either professionally or fairly by the Council.  He pointed out that Phase 3 of the project would not take place until 2015, and suggested that the plight of the businesses should be separated from the road building project.  The Council should consider the relocation of the businesses in the first instance, and look to build the road when this initial step had been finalised and all the businesses had been provided with suitable alternative accommodation.  The Chief Executive, Herefordshire Futures replied that he understood the position of the businesses, and ESG Futures would submit bids for funding to allow this work to be undertaken as soon as it was clear to whom the bids should be submitted. 

RESOLVED: That the report be noted