Issue - meetings

The Strategic Services Director introduced the above mandate which was before the Executive Advisory Board (EAB) as an update primarily for information as no decision in this respect was required at present.  The need for a renewed strategy regarding industrial estates had been identified and when the mandate had been considered by the Executive the previous week, Lead Councillors had agreed that the mandate should be shared with the EAB at this meeting to enable it to provide any related comments or feedback.

The Asset and Property Manager (Investment) presented the mandate proposal which sought the Executive’s agreement to fund the development of a strategy and subsequent redevelopment of the Council’s industrial estates, offering four different options in this regard.  The Commercial Property Investment Programme (CPIP), which formed part of the Council’s Savings Strategy, sought to increase rental received and capital values of assets held to generate additional income of £830,000 per annum over the base budget to contribute towards tackling the Council’s budget deficit.

Changes to the Public Works Land Board (PWLB) funding criteria made in November 2020, together with alterations to the Minimum Energy Efficiency Standards (MEES), had resulted in the Council widening its remit of property redevelopment and strategic acquisitions funding to enable it to invest further in its existing investment portfolio.  The impact of COVID-19 had presented difficulties for the Assets Team to source the appropriate quality of investment stock in the Borough at the correct price and therefore an alternative approach was required to protect and increase the Council’s rental income.

Following the success of the redevelopment of Midleton Industrial Estate, the Council wished to develop an overall growth strategy and vision for the three remaining industrial estates, namely, Slyfield, Lysons and Woodbridge Meadows.  This would involve providing a strategy for each individual estate to identify where increased rental income and capital value could be created, and to acquire significant investment, redevelopment and potentially dispose of surplus assets where appropriate.  Each project would require a business case, funding would seek to meet the Council’s corporate priorities such as increasing employment, attracting inward investment and improving energy efficiency.

A number of the Council’s industrial estates were not achieving energy efficiency owing to obsolescence and approaching end of economic life leading to a potential loss of income in the case of some assets from March 2023, from when the MEES Regulations would impose stricter standards of energy efficiency in respect of non-domestic rented properties.

Carrying out a detailed review and assessment of the remaining estates and assets would enable the Council to identify opportunities and steps required to protect and grow its rental income and assist with meeting its strategic objectives.  This would develop into an overarching strategy to realise the future growth of the Council’s industrial portfolio. 

The Strategy would be developed in two phases, firstly, to prepare a high level report outlining the status of the Council’s industrial estates and identifying all issues, risks and opportunities, and secondly, to provide overarching vision, future growth strategy,  ...  view the full minutes text for item 43