Showing posts with label skypark. Show all posts

Thursday, 31 August 2017

The promises from the Skypark 'business park' >>> >>> >>> "A multinational comes along and plonks itself just out of town. Hooray, they tell us... Jobs for all!"

This part of the UK is haemorrhaging jobs in manufacturing:
Futures Forum: "A staggering 50,000 manufacturing jobs have been lost in the South West in a decade." Which is not surprising, as "the LEP area ranks 32nd out of 39 LEP areas in England for the level of productivity."

Meanwhile, what is being promised by developers and politicians is 'job creation':
Futures Forum: The empty promises of 'Job creation' - and the real possibilities from 'entrepreneur-led revitalisation' and the 'return of a spirit of self-reliance'

But one wonders how much of it will be 'real jobs':
Futures Forum: SMEs, self employment and the sharing economy

Or whether it will be about some sort of 'investment':
Futures Forum: Foreign Direct Investment ... vs ... supporting locally-owned small businesses

As suggested by a business in Penzance:

Olivers Photographics - Love Penzance
Localism in action – and destroyed | East Devon Watch

Everyone is getting excited about the new Ikea on its way just outside Exeter:
Everything you need to know about IKEA Exeter (with a little help from ABBA) - Devon Live
IKEA Exeter: How the new store within an hour of Plymouth is taking shape - Plymouth Herald
IKEA Exeter: video shows the new store is taking shape - Somerset Live

Meanwhile, at another spot 'just outside Exeter', a bit more 'employment land' is happening:
Futures Forum: An 'inter-modal freight depot', a giant Lidl's warehouse ... and when a 'site employing up to 450 people' is not 'counted as an employment site'
Futures Forum: An 'inter-modal freight depot' by any other name >>> >>> also known as: a giant Lidl's warehouse on the M5

It's part of the joint Exeter/East Devon project:
exeter gateway distribution facility - Exeter and East Devon Growth Point
6 January 2016 - Lidl brings jobs boost for Exeter and East Devon Growth Point - East Devon

With that promise of 'jobs':

Lidl's huge new depot near Exeter is taking shape - PHOTOS

The site is due to create around 500 jobs when it opens in Autumn

UPDATED 17 AUG 2017

A giant new supermarket depot near Exeter is starting to take shape near Exeter. The Lidl distribution centre under construction near Exeter Airport and Skypark is part of the Exeter and East Devon Growth Point. It is expected to create around 500 jobs when fully operational.

Lidl's huge new depot near Exeter is taking shape - PHOTOS - Devon Live

Meanwhile, even more 'jobs' are about to happen next door, as reported in March:
More MASSIVE speculative industrial development at Clyst Honiton with benefits to LEP | East Devon Watch

Two planning applications are to be considered by the District Council:
17/0532/MOUT | Outline planning application with all matters reserved for the provision of up to 110,000 sq. m of Use Class B8 development with ancillary Use Class B1 and associated parking, servicing, yard areas, landscaping and engineering works including demolition of existing structures within the site. | Land At Hayes Farm (Phase 2) Clyst Honiton
16/3021/MFUL | Mixed-used development comprising 64 bed care home, offices, retail, 250 space Park and Change, plus associated roads, servicing, car parking and landscaping. | Land Off Hawkins Road Hillside Gardens Pinhoe Exeter

As reported in today's Devon Online:

Massive industrial park on edge of Exeter set to be approved

The industrial park next to the Lidl depot at Clyst Honiton will create nearly 2,000 jobs and add £100m to the economy

BY DANIEL CLARK 31 AUG 2017

Outline plans for a 110,000sqm industrial park next to the Lidl depot at Clyst Honiton are being recommended for approval by East Devon District Council.

Councillors are also being asked approve plans for a mixed-used development comprising 64 bed care home, offices, retail, 250 space Park and Change, plus associated roads, servicing, car parking and landscaping at land off Hawkins Road in Pinhoe that will create 165 jobs.

The massive development on land at Hayes Farm would create between 1,530 and 1,817 new jobs and contribute an extra £90 to £105m to the regional economy, the applicants, the Church Commissioners For England claim.

The huge chunk of land is earmarked for more storage and distribution warehouses, offices and business space as part of the Exeter and East Devon Growth Point.

The application goes before Members of the council due to the significance of the proposals and an objection from Clyst Honiton Parish Council.

The summary of the application says: “The application site falls within the East of Exeter Growth Point and is one of the key strategic employment sites identified for the area, along with the Skypark Business Park and Exeter Science Park. Through the former County Structure Plan and previous Local Plans the site was allocated for an intermodal freight distribution centre comprising a railhead and associated B8 uses to facilitate the Agenda page 115 17/0532/MOUT transfer of freight from the rail to road.

Masterplan for the industrial park

“After outline and reserved matters permissions for the first phase of development (up to 65,000 sq. m of B8) two applications have been submitted by the Church Commissioners for the second phase of development - an outline for up to 110,000 sq. m of B8 storage or distribution and a Section 106A application to remove the phase 1 Section 106 railhead obligations.

“While separate applications, the status of the railhead land is crucial to the acceptability of the outline and therefore the two applications are considered together in a single report.”

Clyst Honiton Parish Council and Broadclyst Parish Councils have both objected to the scheme which would also need associated parking, servicing, yard areas, landscaping and engineering works including demolition of existing building within the site.

At the moment the future occupiers are unknown. Options for the land include space for 540 car parking spaces on a two unit scheme, and 530 for a multi-unit scheme.

For both scenarios the storage/distribution use with ancillary office floorspace and car parking is supported by development of an estate access road, SUDs features, sprinkler tanks and a pump house, on site surface water attenuation measures and strategic landscaping to the site boundaries.

Planners are being asked to approve the application as although the use of the site for large scale development has long been accepted and while locally contentious, sufficient evidence has been submitted to support the removal of the railhead obligations.

READ MORE
Watch as DCH's new Skypark headquarters takes shape

The report continues: “The scale of use proposed on the site is considered to be acceptable, although the potential for a single large building will require a higher level of design and landscape mitigation. Being in outline the application does not contain much in the way of prescriptive detail and the applicants aim is to retain as much flexibility as possible, but the proposal is supported by a robust ES. The development has not attracted any significant objection, and as such the application is recommended for approval subject to a Section 106 agreement.”

Planners are also being asked to back plans for a mixed-used development comprising 64 bed care home, offices, retail, 250 space Park and Change, plus associated roads, servicing, car parking and landscaping.

The application is before Members as it is a departure from the Local Plan and there is an objection from the Parish Council.

The application proposes a reconfigured layout for the Park and Change, a reduction to the office and retail provision, and substitution of the light industrial units for a carehome, and the revised scheme will generate 165 jobs compared to the estimated 171.5 that would have been generated by the previously approved uses that were granted in 2012 for the site.

The scheme is for a 250 space Park and Change proposed in two phases (revised layout from previous approval) 440 square metre retail unit located to the front (north) of the Park and Change site 914 square metre B1(a) office units sited next to the retail unit 64 bed care home along the western edge of the site.

READ MORE
The Tech List: 30 Exeter and South West firms at the cutting edge of technology and innovation

The report concludes: “The proposed scheme is contrary to policy and despite the submission of additional information it is not considered that the resulting loss of the B2 use has been properly evidenced.

“However, there are a number of benefits from the scheme that give considerable weight to a positive recommendation - the delivery of some employment and much needed facilities on the site, evidenced demand for additional carehome provision in the locality, the submission of positive amendments to address design/layout concerns, and the development will secure DH connection to both the commercial uses and approved primary school.

“While the lack of evidence for the loss of the B2 use is unfortunate, the scheme has been carefully considered and it is felt that on balance these identified benefits override the policy conflict in this specific case, however this is subject to the result on the current amended plan consultation the results of which will be reported to the meeting.”

Both applications go before East Devon District Council planners on Tuesday, September 5.

Built over 20 years, the 110-acre Skypark site will provide 1.4 million sq ft of warehouse, industrial and office space and deliver up to 6,500 new jobs. When it completes this autumn, this new office building will create 17,142 sq ft of employment space.

The new offices will join the Ambulance Special Operations Centre (ASOC West) and DPD UK’s new 60,000 sq ft distribution centre on site. They will benefit from the £3.5 million worth of investment in road and services infrastructure at Skypark and the five-acre public realm area, complete with trim trail exercise stations.

Massive industrial park on edge of Exeter set to be approved - Devon Live

Wednesday, 28 December 2016

Knowle relocation project: a message for the New Year >>> that there are a lot of very mixed messages

MOUNTING QUESTIONS ABOUT A DODGY PROJECT:

The last meeting of the full Council this year followed on from the District Council Cabinet's consideration of its relocation project:
Futures Forum: Knowle relocation project: Cabinet meets today: 5.30pm: Wednesday 14th December >>> new hiccups question the 'desire and need' to move >>> and raise the prospect of a 're-run of the business case'

The Cabinet had decided to speed up its part-move to Exmouth, despite its own planning committee giving the go-ahead to selling the Knowle to developers, which would have financed the complete relocation project:
eastdevon.gov.uk/media/1958483/141216-cabinet-mins.pdf
Futures Forum: Knowle relocation project: latest report to Cabinet >>> the District Council’s 'commitment' to sell its HQ has been 'stymied' by a decision of the planning committee

Predictably, last week, the full Council rubber-stamped the Cabinet's decision - despite the mounting disquiet over their plans:
Full Council yesterday: No questions from Conservative councillors, but lots from their colleagues and from the public | Save Our Sidmouth
EDDC majority turn their backs on the public yet again | Save Our Sidmouth
Tory councillors refuse spending scrutiny role and trust (vastly overspent) officers | East Devon Watch
A relocation cost swept under the carpet? | East Devon Watch
EDDC relocation has hallmarks of a “dodgy project”, Full Council is advised. | Save Our Sidmouth

The East Devon Watch blog asks a pertinent question about the competence of the Officer leading the project:
Is Mr Cohen up to his job? | East Devon Watch

Meanwhile, yet more hundreds of thousands are being spent on this project:
EDDC expenditure on consultants and agency staff 2015/16 almost £2 million | East Devon Watch

"NO NEED TO UPDATE COUNCILLORS WITH DETAILED COSTINGS OF PROJECTS"

Not many Councillors seem to be bothered in scrutinising these sums a little closer, as reported immediately after the Council vote last week:

... Two Sidmouth residents kept up the pressure. One questioned the financial competence of the Council with relocation costs spiralling: £600,000 more for Exmouth Town Hall, £400,000 more for Knowle. Another asked the Chief Executive to warn planning committee councillors against bias in favour of any future application to develop the Knowle because it would advance the relocation project. This seemed to have happened at the December 6th DMC meeting, but the CEO was unconcerned.

... East Devon Alliance Independent Councillor Cathy Gardner grew increasingly frustrated at Leader Paul Diviani’s failure to answer questions. Why was the contact with Pegasus life for the sale of the Knowle kept secret? Why was the project manager of the Queen’s Drive affair not sacked for “ineptitude”? And what action would be taken against the same officer who had publicly expressed personal frustration at the refusal of the Pegasus Life planning application for the Knowle?

... Rob Longhurst (Independent) said the leadership seemed to think £600000 more on Exmouth Town Hall was “small money” that didn’t require detailed accounting. “I like to see numbers”, he added. Support came from fellow independent Roger Giles who quoted an earlier Council Leader Peter Halse who said when it came to costings it was not good enough for the council leaders to say “Just trust us”.

Finally, Cllr Longhurst, seconded by Independent Ben Ingham, proposed an amendment that councillors should be updated every six months with detailed costings of the council’s projects. “Unnecessary!” chorused a succession of Tory councillors. They said leave it to the internal auditors Southwest Audit Partnership, forgetting, perhaps, that SWAP was strongly criticised in 2013 for an “anodyne” report on the governance implications of the Graham Brown affair which suggested it was in too cosy a relationship with Council leaders. A vote on the amendment was lost with 30 Tory councillors voting in a block against it.

Bleating sounds could be heard coming from a member of the public!

Tory councillors refuse spending scrutiny role and trust (vastly overspent) officers | East Devon Watch

Looking back over the year, the project to get out of Sidmouth and move anywhere else has been the dominant thought for Councillors and Officers at the Knowle - although by the end of the year things look rather shaky:
Futures Forum: The unravelling of projects in East Devon

TWO YEARS AGO:
RISKING THE COUNCIL'S REPUTATION FOR FINANCIAL PRUDENCE...
... AND NO ANSWERS ABOUT HOW MUCH EXTRA THE RENOVATION OF EXMOUTH TOWN HALL WOULD COST:

Honiton Councillor and grandee Peter Halse was very unhappy about the figures being trotted out to justify the relocation project, as reported in January 2015:

At last night’s Overview and Scrutiny Committee senior Tory councillor Peter Halse lashed EDDC’s Relocation Project. He said it risked the Council’s reputation for financial prudence. “At the time (the relocation project) looked OK, but now, with hindsight, it looks pretty bad….Quite honestly we have fallen flat on our face!” He was sceptical about Deputy CEO Richard Cohen’s claimed energy savings, and said employees based in the newer 1970/1980s building, “can’t see any reason why they’d want to move”. He concluded “It’s not just the leadership who are responsible. We need to look this thing full in the face. We can get out of this”.

Sidmouth resident Richard Eley, had already mauled Richard Cohen’s assumptions on future energy cost savings which were “way out of line” with those predicted by the Department of Energy and Climate Change (DECC). Mr Cohen in response welcomed the fact that auditors would now be taking “a useful look under the bonnet, as it were”. In the meantime a preferred developer had now been selected for a mix of care home and residential properties at Knowle. The planning process would have to be gone through by the developer and further attempts to delay the Knowle sale have been factored in to the costs, he added.

When Independent Cllr Claire Wright expressed concern that EDDC’s planning committee would be under extreme pressure to grant permission to develop the Knowle because the whole relocation project depended on it, she was accused of casting doubt on the integrity of councillors.

Independent Councillor Roger Giles didn’t get a clear answer from Mr Cohen about where his 10% annual energy inflation figures came from, only that they were “conservative”! And there was no answer to Cllr Giles’ second question about how much extra the renovation of Exmouth Town Hall would cost.

“Quite honestly, we have fallen flat on our face” with the relocation project, warns Honiton Councillor, Peter Halse | East Devon Watch

THE PING-PONG OF CHOOSING WHERE TO RELOCATE TO:

Honiton was chosen because it's 'central':
Futures Forum: Knowle relocation project: and the politics of maps ..... "What I have found most difficult to understand is why EDDC ever decided to base itself in Sidmouth where over 50 per cent of the area covered by a 20 mile diameter is in the English Channel."

... although it isn't:
Futures Forum: "A truly green alternative to EDDC's proposal"

Exmouth was chosen - eventually - because it's the District's largest town:
Futures Forum: Knowle relocation project: "East Devon District Council has ditched its plan to move to Skypark near to Exeter airport from its current headquarters in Knowle in Sidmouth."

But, then, Skypark had been chosen for all sorts of good reasons:
Futures Forum: Knowle relocation project: moving to Skypark
Futures Forum: Skypark and “authoritarian high modernism”

THE PROMISE OF A NEW, MORE EFFICIENT AND MODERN HQ:

Of course, this project has never been about wanting to get out of Sidmouth, but all about wanting to be all 'modern' or whatever:
Futures Forum: Knowle relocation project: “We are committed to exploring all options for a possible new office site as well as maximising the values from our landholdings. One option has always been the sale of our Heathpark site alongside that of Knowle and Manstone Depot in Sidmouth and to use the money raised for a new, more efficient and modern headquarters”

... and, anyway, the people of East Devon don't actually need to travel to the District Council's HQ - as everything is done virtually through new clever ways of working. And yet very little of this has actually been costed:
Futures Forum: Knowle relocation project: 'modern working practices' >>> Of Worksmart, Hubs and Hot-desking
Costs of Knowle Relocation Project - a Freedom of Information request to East Devon District Council - WhatDoTheyKnow

And as we've seen, the cost of creating a modern working environment at Exmouth Town Hall is proving a little challenging:
Futures Forum: Knowle relocation project >>> still many questions re costs
Futures Forum: Knowle relocation project: time for some number crunching >>> a £17 million cost ... or even £30 million?

SIZE IS EVERYTHING:

One of the biggest contradictions has been the political leadership saying on the one hand that they need less space for an ultra super modern HQ - and yet they insist that moving into the more modern part of their current HQ would be 'too small':
Futures Forum: Knowle relocation: District Council challenged again

Robin Fuller put together the statistics to argue that refurbishing the modern 1980s part of Knowle would be more than adequate:

Knowle – a positive and cost-effective way forward

I outline a proposal which offers a truly green alternative to EDDC’s plans to demolish perfectly sound buildings at Knowle and destroy public parks and gardens, trees in the arboretum and wildlife habitats, all in order to fund the provision of up to date offices.

· EDDC says it needs only half the present floorspace for its staff.

· The Design statement in the OPA for Knowle gives the current floor area as 7742m².

· About 2630m² of this is modern offices built around 1973.

· The Council Chamber building at 660m² also has a modern roof and has been partly refurbished.

· The modern offices plus the Chamber building together comprise about 3290m² of floorspace, of which about 3000m² is office space.

· EDDC employs 460 full time equivalent staff, of whom 365 work at Knowle.

· HSE stipulates a space allocation for office staff of 11 cubic metres which, allowing 2.4m ceiling heights, would equate broadly to 4.5m² per person, or 1642m² for 365 staff.

· 3000m² of office space would give 8.2m² per person – near double the HSE requirement.

· So, the 1973 offices plus the upper floor of the Chamber building could comfortably house all EDDC’s office staff, with ‘hot desking’ and home-working allowing part-timers and transient office users to be housed economically.

· Any remaining shortage of space could be made good by storing rarely accessed archive papers in a local warehouse, rather than in custom built offices.

· Thus there would be more than 4000m² of the old Knowle Hotel and cottage unoccupied and available to sell – enough for up to 50 one- or two-bedroom flats.

· The basic buildings should have a total market value of £3.5million-£4million; restored and refitted, the cottage and flats could sell for around £10million in total.

· The sale of the historic parts of Knowle would pay for an update of the 1973 buildings, in terms of layout, insulation and services; and the refurbishment could be done while EDDC still occupies the old Knowle, allowing builders unfettered access.

· EDDC would halve its floorspace, instantly halving energy use; insulation plus renewable energy installations could halve that again, giving savings equal to those planned for Honiton.

· Rewiring and new cabling will provide modern connectivity.

· Refurbishment of the existing building will save the huge carbon emissions associated with a new building (which would take 50 years to repay its carbon costs).

· Sidmouth is demonstrably more central to the people of East Devon, and will remain so, even once Cranbrook is completed j.

· The land earmarked for EDDC at Honiton could be sold to boost Council funds and thereby benefit all Council Tax payers.

· Sidmouth will not lose 365(-460) jobs, so easing pressures to develop employment land elsewhere in the Sid Vale.

· EDDC will also get most if not all of the 50 dwellings currently planned for the Knowle site, but without using any greenfield land whatsoever.

· The historic Knowle will be saved from demolition.

· Sidmouth and East Devon will retain all of the Knowle parkland and gardens as public open space.

· The weekend ‘park and walk’ will remain available for visitors to Sidmouth.

j See Annex A. Journey times and distances from across East Devon to Sidmouth and Honiton

Futures Forum: "A truly green alternative to EDDC's proposal"

The District Council has refused independent access to the Knowle building:
Futures Forum: Knowle relocation project: "Committee members agreed by eight votes to none, with four abstentions, that a motion would go to cabinet recommending a professional survey of the building be carried out – not undertaken by EDDC."

NOT FIT FOR PURPOSE: THE PUBLIC GETTING LOST ON THE WAY TO THE NEW COUNCIL CHAMBER:

At last week's full Council meeting, an observer reminded Councillors that another justification made for getting out of Sidmouth was that Knowle was a rabbit-warren and so 'unfit for purpose':

[The observer] said he was “surprised” that a veteran member of the DMC (the finger of suspicion points at Tory Cllr Mark Williamson) had commented that the existing Knowle offices were “not fit for purpose” and had gone on to tell a joke about people getting lost for years in the old hotel building.

Lost at Knowle … are there bodies buried in the “old” building? | East Devon Watch

And following on from this comment, a further observation has been made:

The EDDC claims their existing HQ is unfit for purpose as there are problems with access and way-finding.

This of course is a lot of nonsense as the public is not allowed into the Knowle except for the reception area and the council chamber. As the rest of the building is off-limits why should orientation in private space be a concern to the taxpayer?

As can be seen from the attached plans, the access to the present Council Chamber is far better than both Exmouth and Honiton.

In respect to ease of access and way-finding the Knowle is outstanding and it is the proposed relocation sites which are “unfit for purpose” and disorientating.

DMC member Tory Cllr Mark Williamson commented that the existing Knowle offices were “not fit for purpose” and joked about people getting lost for years in the old hotel building.

KNOWLE:

EXMOUTH TOWN HALL:

HONITON NEW BUILD:

But, then, nobody was listening back in 2012 when the Chamber of Commerce wrote to the chair of the District Council's planning committee:

Letter to Cllr M Williamson, Chairman of the Development Management Committee, EDDC | Save Our Sidmouth

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Tuesday, 6 December 2016

Knowle relocation project: of Tribunals, moving to Skypark and granting oneself planning permission

FROM THE ARCHIVE

It is very difficult to separate the issues around the District Council's relocation project.

Looking through the archives, we come to the issues of going to Tribunal over the transparency of the whole process - and the parallel desire of the District Council to move to... Skypark:

This is from September 2014:

Questions were raised this week at the tribunal in Exeter considering reports on relocation as to whether or not the District Council has indeed 'decided to move to Skypark' or not:
Futures Forum: Knowle relocation project: FOI request goes to tribunal: latest report... AND District Council puts Knowle on the market

These are from the District Council's own website:

Moving and Improving

Office move takes another step forward

Further research into the viability of the council's office relocation to SkyPark was given the go ahead by full council last night (26 February).

Council officers will now enter a further evaluation and negotiation phase with the preferred option of SkyPark. A report outlining whether the council should commit funding to the new headquarters is expected to be presented to cabinet and full council in July.

Councillor Paul Diviani, leader of East Devon District Council, said:

"Now we have full council's approval to enter further negotiations with the preferred option of SkyPark we can focus our attention solely on this site,

"SkyPark is firmly on East Devon soil and the location exemplifies the council's commitment to the Growth Point - this is an exciting emerging employment and commercial development location on the district which will help East Devon keep its promise to deliver a thriving, competitive local economy with quality jobs.

"As part of the office relocation we will be engaging with customers and stakeholders to ask then what particular services they would like to see provided elsewhere - to a greater degree than they already are if we press the button and decide to move to SkyPark."

A marketing exercise for Knowle and Manstone will now also get underway, as well as an investigation into options on re-provision of business space to succeed East Devon Business Centre. This follows full council's decision to offer the council's Heathpark site for redevelopment.

Capital receipts from Knowle, Manstone and Heathpark will be invested in the new headquarters so that the council keeps its commitment not to place any extra burden on Council Tax payers.

Back in November, cabinet shortlisted five out of 15 possible sites for new office accommodation. These were Cranbrook town centre, SkyPark, two sites in Heathpark in Honiton and Clyst House at Winslade Park. Apart from the two sites in Honiton, all other options were to the west of the district. Cabinet asked for further evaluation of these locations, including site visits, further work with developers and agents, an equality analysis, expert spatial analysis and additional intelligence. In January the Office Accommodation Member Executive Group considered the options - along with the option to stay at Knowle - and the top two scoring location were presented to cabinet. these were SkyPark and Clyst House, Winslade Park

Cabinet took the decision on 5 February to go with SkyPark.

If cabinet and full council commit funding to the new headquarters in the summer it is likely that the council would relocated towards the end of 2016

The latest edition of

East Devon Extra (180KB Portable Document Format - 27 February 2014 - PDF Help) gives further details.

Page last updated on 31 July 2014

East Devon District Council - Moving and Improving

This is from November 2015:

Over the question of whether or not the District Council could give itself planning permission - there were changes made to the Constitution:

On page 75 of the 2015 document, the change is:

NOTE - Where the Cabinet proposes carrying out development on the Council’s own land which requires planning permission the Cabinet shall submit its proposals to the Development Management Committee for decision.

The Development Management Committee having carried out the appropriate consultation through the Head of Economy shall then, if it is so minded, grant permission unconditionally or subject to such conditions as may be thought fit.

If after due consideration the Development Management Committee is not minded to grant planning permission then the matter shall be referred to Council for the Council itself to make a final decision.

Electoral-Review-submission-August-16.pdf

So, it’s the Honiton application which Cabinet will wave through. They can’t do that with the Knowle application, though...

Futures Forum: Knowle relocation project: planning application to be considered by District Council: Tuesday 6th December >>> “What is the point of a Local Plan?”

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Thursday, 7 July 2016

Brexit: and commercial property in East Devon

Private property companies have been very jittery of late:
Futures Forum: Brexit: and housebuilders in East Devon
Futures Forum: Brexit: and housebuilders in East Devon: part two

And now the commercial property market looks very unstable:

Is Brexit causing a commercial property crisis - and should you care?
Jul 7, 2016
Funds holding £14bn of investors' money suspend withdrawals following the EU referendum result

One of the first concrete signs of negative economic effects from the Brexit vote has emerged in the commercial property sector, where funds holding more than £14bn of investors' money have now been shuttered.
Andrew Bailey, the chief executive of the Financial Conduct Authority, says this is a sign the "market is working", reports The Guardian. A "fire sale" triggering a huge devaluation in commercial property prices would lead to many investors losing money.
But the Bank of England has sounded a warning on commercial property, adds the BBC. It was already concerned that the London market in particular is overpriced and it believes an adjustment could be exacerbated in the wake of the EU referendum result.

Ben Marlow writes in the Daily Telegraph that 75 per cent of small businesses use commercial property as collateral for loans. A significant slump could mean they are "unable either to refinance existing debt or to borrow to invest in new productive opportunities".
He cites research that suggests every ten per cent fall in commercial property translates to a one per cent decline in economy-wide investment. Not necessarily a sign of a big crash, then, but another indicator that growth could be markedly lower in the near future.

Is Brexit causing a commercial property crisis - and should you care? | The Week UK

More property funds suspended as Brexit tremors continue in the City
Thursday 7 July 2016

Britain’s vote to leave the EU has sent further shock waves through financial markets, with three more property funds suspended, the pound plunging and share prices falling amid fresh uncertainty about the economic impact of the decision to leave the EU.
Funds responsible for investing some £14bn in shopping centres, office blocks and warehouses have now locked out investors following the decision by Henderson, Columbia Threadneedle and Canada Life to suspend dealing on Wednesday after being swamped by investors attempting to redeem their cash.

The pressure on the commercial property sector – which had enjoyed a 40% rise in prices from 2009 until the start of this year – came after the pound hit fresh 31-year lows
More property funds suspended as Brexit tremors continue in the City | Business | The Guardian

In Devon, the wider industry has been very busy talking things up since the vote:
Brexit: Exeter and Devon property still a safe bet say agents | Exeter Express and Echo

But the reality on the ground is somewhat different - for the big housebuilders:
Persimmon hails rise in house sales as it plays down Brexit fears
Persimmon caught up in housing crash fears | interactive investor

... and for the big commercial property companies:
St Modwen and Persimmon on Brexit impact | Online News | Building

TOP NEWS: St Modwen Profit Down, Cautious Outlook Post-Brexit
Tue, 5th Jul 2016
LONDON (Alliance News) - St Modwen Properties PLC on Tuesday said its pretax profit in the first half fell year-on-year despite revenue rising and the company said will take a cautious stance on development following the UK's vote to leave the European Union.
"Following the referendum held on June 23, we are now operating in a period of uncertainty in relation to many factors that impact the property market. Whilst it is too early to accurately predict how the UK property market will respond, until we have more clarity we believe it is appropriate to take a more cautious approach to the delivery of our development strategy," said Chief Executive Bill Oliver.
TOP NEWS: St Modwen Profit Down, Cautious Outlook Post-Brexit - Finance News - London South East

Of course, St Modwen is the main developer at Skypark:
Skypark - Exeter and East Devon Growth Point

Meanwhile, in the south of East Devon, a question has occurred to the EDW blog:

WHO WILL FUND THE SIDFORD INDUSTRIAL PARK POST-BREXIT?
7 JULY 2016
Property funds that own offices, shops, industrial units and warehouses are freezing their assets as fundholders seek to remove their investments in them. In a recession, such properties are millstones, as they go quickly into negative equity and are hard to shift unless you do so at a loss.
Businesses contracting and cautious entrepreneurs no longer want accommodation and this leads to a glut of empty properties which exacerbates the problem.
In this climate, who would fund Sidford Fields and why?
Who will fund the Sidford Industrial Park post-Brexit? | East Devon Watch
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Monday, 8 December 2014

Knowle relocation project .................................................... What do you get for a £15m refurbishment? ....... part one

The District Council has insisted that '£15 million' would be needed to refurbish the current buildings at Knowle.

Back in July last year, it made this perfectly clear - although the notion of 'commercially sensitive' information 18 months on is still not clear and many of the 'decisions' made back then have changed somewhat.

Stakeholder Engagement Event 26 July 2013

Which of Honiton or Cranbrook is more central to people coming to visit the offices?

We shouldn’t get too focused on the geographic location of any new office because a) it isn’t decided yet and b) many customers deal with us online or by phone and many of our staff are already available across the district such as benefits, planning and Streetscene staff. However, we do need to keep in mind that the large bulk of the population of the district are in the Western half.

What about air conditioning for a new building, it’s not been mentioned but would surely add to costs?

There are no plans to have traditional air conditioning as the office would be cooled through natural ventilation. This is part of our aim to have a BREEAM Excellent rating for the new office.

Costs appear to be the driver for this project. How confident are you that the 20% contingency you have put aside will be enough to manage any overruns?

As we have made clear, keeping costs down for the District is a priority for the Council and office relocation is a part of that. We have taken professional advice and have visited other public sector and private organisations who’ve undertaken such moves to gain from their experience and they have all said that contingency is a normal and sensible practice. If you do the proper management and preparation upfront then you manage costs better in the long run. This means for instance being clear about your design, commitment to it and don’t keep changing it. We feel confident that if properly planned and managed the contingency should be more than adequate.

Did you consider the refurbishment of the more recent office block of the Knowle offices and demolition of the Victorian element for housing?

Yes, we did fully consider that option. The space available in the office extension blocks built in the 1970s and 1980s is insufficient to house all the staff, the mixed site approach is unlikely to be attractive to a developer and even these so called modern offices would require considerable sums to bring them up to scratch. Financially it doesn’t work.

In your office accommodation cost calculations did you include rental, interest and borrowing costs?

Yes. Purchase, rental and borrowing costs are all factored in.

Are these costs publicly available?

Not yet as they include commercially sensitive information. However we would like to publish at a time when the information is no longer sensitive. Just as we have done for the sale of Elizabeth Hall: once the figures were no longer deemed commercially sensitive we published them.

You identified a figure of £4.5 million figure is that the economic impact on Sidmouth?

No, that figure is not the economic impact on Sidmouth. We are estimating that there will be a £4.8million saving on annual running costs by moving to a new purpose built office of the appropriate size over a 20 year period, as compared to staying at the Knowle.

What is the estimated Capital Cost of a new build office?

It is not possible to be exact and any figures should be treated with caution. However, as a ball park figure something in the region of £6 - 8 million is not unreasonable, depending whether it is constructed to a BREEAM Very Good or Excellent Standard.

You have used a 20 year figure in your finance model but many Council’s use 45 years for payback for Council house buildings for example. Using that model the savings you will accrue are actually far higher than you have stated. In addition have you factored in the rising price of energy which again makes your cost savings probably an under-statement?

We have worked on a prudent cost model based on the period of time of a new office from new build to first refurbishment.

Why have you boxed yourself into the £4.8 million in terms of what a new office can add to the organisation. There are a whole range of other benefits such as improved service delivery, new employment opportunities, and greater productivity. You shouldn’t underestimate these benefits.

Yes, you are quite right, there is a mix of non-financial benefits which we are considering and aim to achieve through new office accommodation.

If you chose the Cranbrook site for instance you would be providing a huge economic boost to the new town and providing additional employment for its 3,000 residents. This would help attract a range of other businesses which would then in turn produce more business rates and make your financial model even stronger.

Again, this is correct with regard to additional benefits but we have deliberately taken a conservative view on the financing.

Has the Council decided which stakeholders and issues have more weight, for instance what is the business driver for this decision saving money for taxpayers, better working conditions for staff or the wider economic benefit such as providing real help to small businesses?

We have tried to keep all our stakeholders in mind and we see this as a district wide issue. We would support further understanding of the economic impact on the location that we choose.

Please can you clarify the financial points as I can’t see how you get to the payback model? How is it cost effective to spend £6-8 million to save £189,000 a year?

We estimate £6 -8 million for a new build. We would have to pay £1.56 million just to do essential repairs to Knowle such as stopping the roof leaking. Bringing all the existing offices up to modern day standards would be in the region of £15 million and even part of the buildings would be many million. The capital receipt we would receive for part of the site would not even start to cover this.

East Devon District Council - Moving and Improving - Stakeholder Questions
EDDC revives plans to leave Sidmouth - News - Devon 24

Back in February this year, it made several things clear - including the £15 million price tag for refurbishment:

www.eastdevon.gov.uk/east_devon_extra_office_relocation_feb14.pdf

However, the District Council has been unable to provide much detail as to how the '£15 million' figure was arrived at:

From: Robin Fuller

Sent: Thursday, August 29, 2013 3:52 PM

Cc: aliverton@members.eastdevon.gov.uk ; david.addis1942@btinternet.com ; davidbarratt@btinternet.com ;dawn.manleytownc@yahoo.co.uk ; gliverton@members.eastdevon.gov.uk ; info@kingsdowntail.co.uk ;jeff@turner72.orangehome.co.uk ; john.hollick@uwclub.net ; john@dysonz.com ; Kelvin Dent ; maggiebaldwin79@yahoo.co.uk ;mary.jolly2@btinternet.com ; patandjack42@hotmail.co.uk ; simon_sheelagh_simon@tiscali.co.uk ; Stuart Hughes ;town.clerk@sidmouth.gov.uk ; wootans@aol.com

Subject: £2million-£4.6million to refurbish modern Knowle - Davis Langdon figures

East Devon District Councillors

Sidmouth Town Councillors

Four weeks ago I sent EDDC an assessment showing that they have 2,725 sqm of floorspace in modern, 30-35 year old offices at Knowle, 40% more than they claimed. That floorspace is nearly as much as EDDC intends in a new building. I argued that sale of the redundant older parts of Knowle would pay the costs of refurbishing the newer parts instead. However, EDDC loaded the estimated costs of refurbishing Knowle – £15million they said – by pricing refurbishment of the entire Knowle which has more than double the floorspace they will actually need (see ‘Knowle HQ move can’t be justified’, Sidmouth Herald, 16 August 2013).

EDDC have not replied to defend their figures; only to say that sale of the old Knowle would not cover the costs of upgrading and refurbishing the newer buildings. Since EDDC have seemingly failed to estimate the cost of refurbishing the modern offices, I have done so using data published by Davis Langdon, EDDC’s own consultants on ‘moving and improving’. They assess typical benefits and costs of office refurbishment: (http://www.davislangdon.com/upload/30297_Cost%20Model%20-%20Office%20Refurb_v2.pdf).

They state that benefits include: a better balance of risk and return; delivery 15‑70% quicker than new build; costs 10‑75% less than a new build; an opportunity to support new ways of working; a reduction in the carbon footprint; reduction of the overall environmental impact when compared to a new build.

Davis Langdon estimated costs to ‘remodel, medium refurbishment’ as £807-£1345 per sqm or to ‘renew, major refurbishment’ as £1345-£1883 per sqm (Central London prices, 2012; south-west prices 89% of this). These costs are for a Category A fit-out – generally what a developer provides as rentable office space.

Using Davis Langdon’s figures, the refurbishment costs for the 2,725 sqm of modern offices at Knowle would be £2.0million-£3.3million to ‘remodel’ or £3.3million-£4.6million to ‘renew’ (at SW prices).

It is obvious that refurbishment of just those parts of Knowle needed by EDDC – mostly buildings 30‑35 years old – cannot possibly cost as much as the £15million quoted for all Knowle buildings, some over 200 years old. The likely costs, in the range £2.0million-£4.6million according to Davis Langdon, need to be properly focussed by pricing a downsized Knowle, using a sensible design brief – not one contrived to match EDDC’s prejudice in favour of moving. I still expect that costs could be met by the sale of unused parts of Knowle for redevelopment as flats.

Effective refurbishment could make the energy efficiency of the modern buildings at Knowle as good as new, and bring the standard of accommodation fully up to date. However, EDDC still wants to build a brand new headquarters costing £6.9million-£7.9million (excluding the price of the land). Building costs are double, perhaps triple, the likely costs of refurbishment.

It is our money which EDDC puts at risk. We already own the Knowle. The potential loss of that amenity without a tangible gain to the people is not ‘cost-neutral’ as EDDC claim. We accept that EDDC’s offices need updating. However, we are entitled to a fair assessment of the real options and the true costs of refurbishment at Knowle, before EDDC can consider using our assets and our money to buy themselves a new building.
Robin Fuller
Sidmouth

Futures Forum: Knowle: refurbishment vs redevelopment

EDDC Relocation..reality check?

February 26, 2014

Last year I proposed that EDDC might refurbish the modern 1970s offices at Knowle, funded by selling the older buildings for conversion to flats (letters to all Councillors and to the Sidmouth Herald, July and August 2013).

I was told by Cllr Twiss that there was insufficient space for that. I then measured the newer buildings from plans provided by EDDC. I showed that there is 40% more modern floorspace than EDDC had claimed, and an area adequate for their needs – EDDC have never given us any factual counter-evidence.

I later found a publication by EDDC’s own consultants indicating that, typically, full refurbishment of the modern Knowle plus the council chamber should cost £2.0million-£3.3million to ‘remodel’ or £3.3million-£4.6million to gut and ‘renew’, not the £15million claimed by EDDC (the lower figures are still unchallenged by real, publicly released, EDDC data).

The only contribution I got to this debate from Council Leader Diviani was a two-word email (16 August 2013, copied to all Councillors): ‘Fuller’s Folly’.

EDDC Relocation..reality check? | Save Our Sidmouth
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