To update the Committee on the Rotherwas Futures Project.

The Committee considered an update on the Rotherwas Futures Project.

The Committee received a presentation by Alan Ronald, Economic Regeneration Officer (Strategic and Major Projects).  The themes and main points of his presentation were:

Project Objectives:

• Development of the new road to give flood free access to the area and avoid existing low railway bridge.
• Refurbishment of existing properties where relevant.
• Development of site service infrastructure to provide up to 35.59 acres of additional land for development.
• Increase attraction to high tech and knowledge based industries.
• Delivery of marketing and management strategy and materials to promote plot/building sales and leases.

Organisation and funding:

• the project was a joint venture between the Council and AWM.
• AWM to provide £6,650,000 grant towards road costs and £2,850,000 investment capital for estate work.
• Council to ring fence capital receipts and proportion of income from Rotherwas towards estate development, the balance to come from prudential borrowings.
• Road cost estimated at £12.1M, estate work £6.6M.

Road development:

• It was within budget with over £6M spent
• On schedule for opening - Spring 2008
• Project would include Holme Lacy Road traffic restrictions (to be finalised)
• Rotherwas Ribbon had been built over but with extra protection and regular monitoring.
• The A49 roundabout would open early 2008.
• The new Hoarwithy Road bridge would open before Christmas 2007.
• Delays had occurred due to Welsh Water services; work on the Ribbon and the protection of power lines over A49.

Estate Work

• Existing buildings to be refurbished by end 2012
• Improvements to estate image and signage (possible name change to simply “Rotherwas”)
• Improvements to broadband provision.
• Provide flood alleviation for plots available for development (Phase 1) by autumn 2008.
• Make service provision at southern magazine area to provide development plots (Phase 2) by mid 2009.
• Produce marketing & management strategy by spring 2008.
• Consider options for Phase 3.

Estate Work Status

• Refurbishment of buildings had started.
• Negotiations were underway to have oldest buildings refurbished by new tenants.
• A flood model had been built and were in discussions with Environment Agency over flood schemes.
• Rotherwas businesses involved in solving broadband issue.
• External Agency employed to advise on marketing and design over next few months.
• Topographical and geo-physical surveys complete.
• Full archaeological and ground investigation work being specified.

Expected Outcomes

• Improved access, facilities and image to attract inward investors in high tech and knowledge based sectors.
• Removal of access constraints and provide development opportunities for existing businesses.
• Safeguarding of existing jobs on Rotherwas.
• 850 new jobs on Rotherwas within 10 years.
• Lever in >£20M private sector investment.

Rotherwas Enterprise Centre

• This would be one of 3 hubs in Herefordshire funded by AWM.
• Work has started on a site off the Straight Mile road, near the new roundabout
• Some areas should be bookable for larger meetings, training etc.
• The hubs and spokes will provide a focus for providing support to businesses, via Business Link.
• The centre will be built and run by Evans Easyspace Ltd.
• Work on the Enterprise Hub at Leominster had also been started.

In the course of discussion the following principal points were noted:

• Holme Lacy Road traffic restrictions may include weight restrictions and traffic calming measures.
• While the focus will be on providing more Hi-tech jobs, a wide range of jobs would be available.
• A number of start-up units would be available on a time limited basis to ensure a general turnover in occupancy.
• AWM and the Council were funding the project.  No developer contribution had currently been secured although the Council was actively seeking contributions via Sec 106 funding.  Should such contributions be secured then the Council’s Medium Term Financial Strategy would be adjusted to release funding for other schemes.
• Land purchase had been completed by compulsory purchase order, however, negotiations were ongoing concerning land values and this may effect the final project cost.
• The Committee considered it essential that adequate broadband was provided.  Broadband speeds were effected due to the distance from the Hereford exchange.  BT were reluctant to provide new broadband cabling on the grounds that such an investment made a poor business case for them. Other methods of provision e.g. wireless technology, was being investigated.  The Committee expressed concern about broadband provision both to the estate and the County as a whole and requested update reports.
• Discussing the type of buildings to be provided the Committee noted that various size units would be provided, however, the Committee suggested that a number of flexible buildings with sliding partition walls should be provided, thereby providing a varying amounts of floor space as companies grow.
• The Learning and Skills Council were reviewing the likely range of skills needed in view of the Rotherwas and ESG development.
• Any plan to locate Council offices to Rotherwas would be addressed though the Accommodation Strategy which would be reviewed by Strategic Monitoring Committee.
• Flood compensation schemes were included in the project budget, however, any down-stream flood alleviation schemes would need to be reviewed. Responding to concerns over using the Environment Agency 1960 theoretical Flood maps, particularly in view of changing weather patterns, the Economic Regeneration Officer reported that the consultants would be discussing these issues with the Environment Agency.
• Responding to concerns about the long-term costs of financing this project by prudential borrowing and the Councils involvement with the ESG project the Director of Adult and Community Services reported that the Council’s financial input to the ESG project was via land values and that the Medium Term Financial Strategy had identified the capacity to do both projects.
• The Council were unable to offer any financial incentives to attract new businesses.  However, it was understood that AWM may be able to offer limited incentives for businesses to relocate.  It was reported that currently there was a healthy take up of units and this was expected to continue.
• A notional line north of the Straight Mile was protected from development in, planning terms, should a future extension to the road be considered.
• The project included improved information and signage. Facilities for parking up of lorries would be investigated further.
• Progress with the building refurbishment programme was dependant on the type and period of lease. Currently one building had been started and one was awaiting commencement.

RESOLVED: That

a)      the development of a marketing strategy for attracting further businesses to Rotherwas;

b)     improving the provision of broadband facilities at the estate;

c)      ensuring that proper flood alleviation measures are put in place to protect and enhance the value of properties on the estate;

a)      the range of buildings on the estate particularly the possibility of ‘flexible buildings’, ensuring that companies can grow;

b)     the Council’s future requirement for office space and the potential for an energy from waste site.