Council and councillors

Approval of development strategy for Oakham Enterprise Park.

(KEY DECISION)

Report No. 170/2017 from the Director for Places was received.

Mr Frieland, Economic Development and Tourism Manager, introduced the report the purpose of which was for Cabinet to consider and approve the long-term development strategy for the Oakham Enterprise Park (OEP) site.  It also presents for approval a business case for the investment of £2.2m to develop the central area of the site at OEP to include road infrastructure works. This will facilitate optimisation of the site in accordance with relevant sections of the Constitution.  In certain circumstances it is necessary for the Council to act quickly to take progress opportunities as they arise, namely to accommodate additional business tenants for the Council thus maintaining a revenue stream and ensuring an appropriate rate of return on its investment.

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After debate on this item the Cabinet APPROVED that the meeting returned to public session.

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DECISION

Cabinet:

1.    ENDORSED the proposals and RECOMMENDED TO COUNCIL that it approves £1.77m capital funding to facilitate the infrastructure works & construction of new buildings under development Phase 2a.

2.    APPROVED £420,000 capital funding to facilitate construction of the new access road and improvement of the existing road infrastructure.

3.    APPROVED adoption of the draft development strategy for the OEP site and delegates management of approved capital schemes to the Director for Places Development and Economy in consultation with the Portfolio Holder for Growth, Trading Services & Resources and the Oakham Enterprise Project Board.

4.    DELEGATED authority to the Director for Places Development and Economy in consultation with the Portfolio Holder for Growth, Trading Services & Resources and the Oakham Enterprise Project Board to negotiate and enter into necessary legal agreements for the build of industrial units on the site following a procurement process and for the subsequent lease of the units.

5.    AUTHORISED the Director for Places Development and Economy, in consultation with the Portfolio Holder for Growth, Trading Standards & Resources and the OEP Project Board to determine a procurement route, award criteria and if a suitable supplier or suppliers are identified move forward and award contracts for the works detailed in this report.

Reason for the decision

The growing popularity of Oakham Enterprise Park with businesses and the local community in general is a testament to its success.  Phase 1 has generally been at capacity occupancy for around 2 years and there is a growing waiting list for industrial units and small offices on the site along with firm interest in the proposed new units.

The development of the central site area along with the new and improved roads is fundamental in unlocking growth of the wider site in addition to being able to attract larger businesses.  The projected financial return of 4.03% even taking into account the construction costs for the new road is an attractive proposition and subsequent buildings, with the bulk of the ground preparation and new roadway in place are likely to improve on this figure.

Engagement with larger businesses seeking to relocate to Rutland in recent years has revealed a strong preference for ‘ready to go’ units facilitating a move within a 6 month period.  With new buildings constructed and a willingness on the part of the Council to offer longer leases, opportunities for attracting inward investment are significantly increased.

In addition to a reasonable financial return, the Phase 2a proposals and the revised development strategy offer significant additional economic benefits including new employment opportunities, generation of new income from business rates and enhanced access to and development potential of future development phases.

Adoption of the new development strategy and approval to proceed with the Phase 2a proposal will enable the Council to take a significant step forward in developing the OEP site.  Delegation of the approved capital schemes will enable development to proceed swiftly and with a degree of flexibility which is important to service the needs of the private sector.