Agenda item

The Director of Tourism, Culture and Economy gives a presentation to update the commission on Workspaces and Capital Funding.

Councillor Waddington left the meeting prior to the consideration of this item.

Councillor Rae Bhatia left the meeting prior to the consideration of this item.

Councillor Cassidy Chaired the meeting from this item onwards.

The Director of Tourism, Culture and Economy gave a presentation to update the commission on Workspaces Capital Funding using the slides attached.

Additional key points included:

• The Council had been growing a very successful workspace portfolio over many years, and in particular in the last 18 months.
• Dock 3-5 opened in Autumn 2024 and was focussed on innovation technology businesses, with a mix of office space and light commercial space.
• Dock 3-5 funding had come from the Levelling-up fund in which one scheme per MP could be applied for, the project of the MP in question had been support for the Enterprise Zone at Space City around the National Space Centre.  The Council had been required to provide match funding.
• The initial grant-payment was non-repayable, and the Council could generate revenue and create jobs from the workspace.  It could also generate a surplus that could be invested in Council services.
• The city also had a strength in creative design. Pilot House had previously been the largest undeveloped building in Council ownership in the city centre and had been underused for many years.  The council had been successful in securing significant Levelling-up funding for this and had provided match-funding, to transform the building into Canopy, with a focus on the creative design sector.
• Canopy was undergoing fit-out works, particularly by the external café-bar operator and associated electrical works.
• Canopy had created 26 workspaces both large and small which were already proving popular.  The target occupancy for Canopy was 40% within the first year of opening, and it was already at 38% occupancy several months before opening. This was the best early performance for a new workspace scheme to date.
• The focus was on developing a community of like-minded businesses that could be supported and could support each other.
• Canopy had conference facilities and an exhibition gallery and workshops, so it would be a platform for growth.

The Commission were invited to ask questions and make comments. Key points included:

• At optimum occupancy (90%), the whole portfolio was expected to generate a surplus of £600k per year for the Council.  This had been factored into the budget savings profile for the Council.  This did not cost the Council in terms of revenue, but at scale it could generate a surplus that could be re-invested into Council services.
• In terms of target revenue – the turnover was expected to rise form £1.6m to 3m once the new workspace schemes were fully occupied.
• Canopy had a letting policy around creative design.  Efforts were made to avoid replicating the LCB Depot, and people could choose where they were best suited.  Nine companies had signed up so far, one of these was rg+p, who had been the architects of the scheme who had previously been at risk of leaving the city.  Another company in Canopy were a leather conservation company from Northamptonshire who had a strong partnership with De Montfort University and would be establishing a repair shop in Canopy to restore leather objects.
• The Council were in conversation with Leicester start-ups to support scalable technology businesses who may want to move in.
• Companies wanted to be part of an entrepreneurial community, and this was being established at canopy.
• Members could visit the site and would be invited to the launch.

AGREED:

1)    That the presentation be noted.

2)    That comments made by members of this commission to be taken into account.

3)    The members would be invited to the Canopy launch events