The Director, Planning and Economic Development, submits a report that details the creation of a new Innovation and Technology Park for Leicester. The Board is asked to consider and comment on the options set out in paragraph three of the report.
Minutes:
A report was submitted which detailed the creation of a new Innovation and Technology Park for Leicester.
Councillor Cassidy introduced the report to the Board. He stated that the broad proposal was for the Council to acquire land from the East Midlands Development Agency (EMDA) at the Leicester Innovation and Technology Park to construct the Innovation Centre. It was noted that the City Council had the prior option on any such land purchase.
Members were also informed that a high technology company were in advanced stages of purchasing an adjacent plot to the proposed Innovation Centre and that this would bring 60 jobs to the locality; 24 of which would be new posts. Councillor Cassidy stated that the Innovation Centre had the potential to create 150 jobs by 2015, across 36 small businesses. He was of the view that projects such as this would help to lead to higher levels of graduate retention within Leicester.
In respect of funding necessary to deliver the project, Councillor Cassidy confirmed that a bid of approximately £2million had been submitted to the European Regional Development Fund (ERDF) to cover the costs associated with site construction. In addition, a sum of £622,000 had been allocated from the Working Neighbourhoods Fund (WNF). It was further proposed that £2,766,000 be provided from the Council’s capital receipts. The detailed source of the latter was questioned. In response, Councillor Cassidy advised that a detailed report on the composition of the Council’s capital programme would be brought to the Board over the coming months. Further to this, the City Mayor made it clear that the Council frequently modified its use of capital resources, partly as a result of responding to opportunities such as this one. He also stated that this project would appear within the next version of the capital programme.
Members generally welcomed the proposals outlined in relation to the development of the Innovation Centre. The potential significant increase in job provision was especially welcomed.
In response to a question around whether the City Council could be purchased at the price it was paid for previously by EMDA, Councillor Cassidy confirmed that negotiations of the purchase of the land were ongoing and that officers would endeavour to make the acquisition at the lowest possible price. The City Mayor stated that although it would be worth attempting to negotiate a lower price, he had previously met with representatives from EMDA, and that as the value of such land transfers were directed by clear Government guidelines, it was not likely that the land would be acquired at a lower price.
Concern was raised around the eventuality of not acquiring the money sought from the ERDF, and it was whether any construction work would start prior to securing all necessary funding. The City Mayor reported that the project had been composed on the assumption of receiving ERDF monies, but as with all projects of this magnitude, there was an element of risk and uncertainty. It was acknowledged that the total cost to the Council could not be confirmed at this stage but it was stressed that the Innovation Centre was a project of huge economic significance for the City. Further to this, Councillor Cassidy explained that all funding would need to be in place before construction commenced.
Further concern was raised over the potential value for money of the project, with it being cited to Councillor Cassidy that given the overall cost of the project being roughly £5million, and with the creation of approximately 150 jobs, that this would equate to around £33,000 per job. In response to this, Councillor Cassidy felt that this was not accurate as within fifteen years, it was anticipated that 600 jobs would be created, and that this would equate to approximately £6,500 per job if calculated in the same way.
It was also questioned whether it was thought that the proposal would have any further significant impact on the air quality levels along Abbey Lane. The City Mayor acknowledged that the Abbey Lane area had been identified as an air quality black-spot, but that a station monitoring point was also located there.
In response to a question which related to the projected occupancy rate of the business units within the Innovation Centre, the Director of Planning and Economic Development anticipated that the occupancy rate would be similar to that of the LCB Depot, which now has approximately 95% occupancy. It was also confirmed that the workspaces would be managed, but that such arrangements would be flexible accordingly to the level of dependency required for business support.
RESOLVED:
(1) That the Board supports the proposals as detailed within the report; and
(2) That Cabinet be asked to consider the comments made by the Board on the Development of the Innovation
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