Please note that this represents the Bognor Regis Enterprise Zone

Please note that this represents the Bognor Regis Enterprise Zone proposals at the Expression of Interest stage.
These were the proposals as at April and are subject to change and do not necessarily reflect the current thinking or what the final proposals will cover.
ENTERPRISE @ BOGNOR REGIS
Enterprise@BognorRegis
An Enterprise Zone for Coastal West Sussex
Expression of Interest
April 2011
Produced on behalf of Arun District Council
by Nathaniel Lichfield and Partners
Contents
The Location for Growth
1
The Vision
3
The Opportunity
5
The Economic Case
9
Overcoming Barriers to Growth
13
The Capacity to Make a Difference 15
Key Questions
17
The Location for Growth
We are pleased to introduce Enterprise@
BognorRegis: a proposal for an
Enterprise Zone (EZ) encompassing 180
hectares of land and buildings on the
northern edge of Bognor Regis, in the
district of Arun.
Enterprise@BognorRegis sits at the
heart of Coastal West Sussex, a coastal
conurbation stretching from Brighton
in the east to Chichester in the West,
taking in the settlements of Bognor Regis,
Littlehampton, Worthing and Shoreham.
With access to a labour force of over
250,000, Enterprise@BognorRegis
provides a strategic long term opportunity,
but also one with immediate potential.
‘Clean’ greenfield sites at Oldlands Farm,
the ‘Salt Box’ and the former LEC airfield
provide 80ha of development potential
totalling 7,500 new jobs. This is important
in a sub-region where environmental and
planning constraints limit the opportunities
to bring forward major sites for inward and
indigenous business investment.
Beyond this, Enterprise@BognorRegis
provides further development
opportunities for business investment to
deliver another 5,150 additional jobs over
a 15-20 year period.
Enterprise@BognorRegis sits at the
bottom south west corner of the Coast
to Capital (C2C) LEP area – an anchor
to a triangle containing a labour force of
over one million whose other economic
focal points are Croydon, Brighton and
the Gatwick Diamond. Enterprise@
BognorRegis is well located to link to the
Solent and Enterprise M3 LEP areas.
Headline Facts
immediate
development
opportunities
totalling 80ha of
‘clean sites’, with
potential for 7,500
jobs
180 hectares of
land and buildings
on the northern
edge of Bognor
Regis, accessed by
a new relief and link
road
Enterprise@Bognor Regis / Expression of Interest / Page of 19
between 7,500
- 11,750 new jobs
over a 15-20 year
period
tied into the Coastal
West Sussex
sub-region and the
C2C LEP area, with
access to a labour
force of 250,000
and 1million
respectively
an established
local private:
public partnership
with a programme
of regeneration
activity to
complement the EZ
a mix of
manufacturing,
service sector,
education and
retail and leisure
opportunities
London
KEY
Enterprise @
Bognor Regis
Croydon
Key Economic
Corridors
Coast-to-Capital LEP
Basingstoke
Guildford
ENTERPRISE M3
GATWICK
DIAMOND
Winchester
Billingshurst
Horsham
Midhurst
RURAL
WEST SUSSEX
Southampton
SOLENT
Chichester
Portsmouth
COASTAL
WEST SUSSEX
Littlehampton
Shoreham
Worthing
Bognor Regis
Economic Geography and Linkages
Enterprise@Bognor Regis / Expression of Interest / Page of 19
Crawley
Haywards Heath
Brighton
& Hove
Eastbourne
Chichester &
South Downs
Advanced
manufacturing
cluster
EEN
Knowledge
park
C OR
Longer-term opportunities
RIDO
R
Supportive framework for other
proposed investments
Area for
intensification
and upgrading
Longer-term
opportunity
area
Area for
intensification
and upgrading
The EZ comprises a suite of development,
redevelopment and investment
opportunities. These provide a mix of
development products, spreading the
range of opportunities as part of a major
transformational approach to re-balance
the economy of this part of Coastal West
Sussex, and support existing regeneration
initiatives.
Retail &
leisure
hub
GR
Enterprise@BognorRegis will provide
a broad-based approach to securing
long-term economic growth in Coastal
West Sussex. The proposed Enterprise
Zone (EZ) will encompass an approximate
site area of 180ha on the north-western
edge of Bognor Regis, with immediate
development opportunities totalling 80
ha of ‘clean’ sites with potential for 7,500
jobs. In the longer-term, the site could
deliver up to 11,750 net additional jobs.
This is equivalent of up to 8% of total
current employment in the Coastal West
Sussex area.
Clean site opportunities
Low density
small business
& studio units
in parkland
setting
RRIDOR
N CO
E
E
GR
The Vision
Open space /
Country park
University hub
(including
business units)
Town Centre
Railway
Station
Strategic Concept Plan
Enterprise@Bognor Regis / Expression of Interest / Page of 19
Butlins / Watersports Centre
Littlehampton,
Worthing and
Shoreham
Key components
include:
•
an Advanced Manufacturing Park
to capitalise and expand on existing
strengths in manufacturing and
engineering sectors;
•
a Knowledge Park for primarily highquality office development;
•
a campus of small business and
studio units in a parkland setting
within a wider green corridor along the
Bognor Regis Relief Road, which will
be landscaped to provide a country
park setting;
•
a university hub with business
incubator units in conjunction with the
University of Chichester;
•
combined leisure park and
watersports centre development on
the Butlins site to complement their
development plans;
•
upgrading and intensification of a
number of existing industrial areas;
•
a retail and leisure hub expanding
upon committed investment by
Sainsbury’s which is about to
commence.
Knowledge Park
Intensification and upgrading
University of Chichester
Advanced Manufacturing
Butlins and Watersports Centre
Country Park Setting
Enterprise@Bognor Regis / Expression of Interest / Page of 19
The Opportunity
The proposed boundary of the
Enterprise@BognorRegis site has
been drawn to encompass a range
of development, redevelopment and
investment opportunities, and to provide
a wholesale opportunity of reconfiguring
this part of the town’s urban fringe so that
it provides an exemplary place to start and
grow a business.
i. ‘Clean’ site opportunities totalling
80ha:
ii. Supportive framework for a number
of proposed investments:
•
•
a university hub with business
incubator units in conjunction with the
University of Chichester;
•
a retail and leisure hub expanding
upon existing investment by
Sainsbury’s on the former LEC site;
•
combined leisure park and watersports
centre development on the site of
Butlins as part of their development
plans.
an Advanced Manufacturing Park
on the Oldlands Farm site, which
has been recently subject to a
development feasibility assessment,
providing a sound evidence base
for economic potential and market
deliverability;
•
a Knowledge Park for primarily office
development on the ‘Salt Box’ and
possibly Rowan Caravan Club sites;
•
a campus of small business and studio
units in a parkland setting on the site
of the former LEC airfield, within a
wider green corridor along the Bognor
Regis Relief Road, which will be
landscaped to provide a country park
setting;
•
provision of new country park area
in combination with flood attenuation
and landscaping works on land to the
south of the former LEC airfield.
Enterprise@Bognor Regis / Expression of Interest / Page of 19
iii. Longer-term opportunities to make
better use of vacant or under-utilised
areas of the site with potential for
greater levels of built development and
additional employment:
•
upgrading and intensification of
existing industrial areas, including
Southern Cross and Durban Road
industrial areas;
•
an area of opportunity on the Riverside
Caravan Park site which occupies a
central position within the zone;
•
reconfiguration of existing retail and
trader counter uses as part of wider
retail and leisure hub to complement
the new Sainsbury’s development.
Latest 2009 BRES data indicates
that there are about 1,400 existing
employees based on the site, with the
majority employed in manufacturing
(32%), wholesale and retail trades (23%)
and information and communications
(including printing and publishing) (20%).
It is anticipated that these jobs will be
safeguarded as part of the Enterprise@
BognorRegis initiative.
Potential extent
of Enterprise Zone
(198.0 ha)
Potential extent of
Enterprise Zone
Excluded Area
Excluded Area
Plot
C
Potential Development Plot
A
Relief road indicative route
O
D
Link road indicative route
A
B
C
D
E
F
Oldlands Farm
Southern Cross
Salt Box
Rowan Park Caravan Club
Riverside Caravan Centre
Land south of former LEC
Airfield
G, H, I Durban Road Industrial Area
J, K, M Shripney Road Retail Area
L
LEC site
N, 0
Former LEC Airfield & adjoining
land
P
University of Chichester
Q
Butlins holiday park & watersports centre
B
G
A. 23.8 ha
B. 14.4 ha
C. 11.8 ha
D. 3.3 ha
E. 21.4 ha
F. 12.2 ha
G. 4.2 ha
H. 9.4 ha
I. 0.9 ha
J. 2.1 ha
K. 0.4 ha
L. 4.4 ha
M. 0.7 ha
N. 18.1 ha
O. 13.3 ha
P. 13.9 ha
Q. 30.5 ha
E
M
H
N
L
K
I
J
F
Aerial view of Indicative Boundary
P
Q
Indicative Boundary and Development Areas
Enterprise@Bognor Regis / Expression of Interest / Page of 19
Existing conditions on site
Plot / Site Name
Area (ha)
Potential land use(s)
Indicative floorspace
capacity (sq.m)
Indicative job
generation
A – Oldlands Farm
23.8
Advanced manufacturing
40,000
1,100
C - Salt Box
11.8
Office/knowledge park
35,000
3,000
D – Rowan Park Caravan Club
3.3
Office/knowledge park
10,000
800
N, 0 – Former LEC Airfield & adjoining land
31.4
Small business / studio units in parkland
31,000
2,600
F – Land south of former LEC Airfield
12.2
Country park / open space
-
-
Sub-total
82.5
116,000
7,500
i. ‘Clean’ site opportunities:
ii. Supportive framework for a number of proposed investments
P – University of Chichester
13.9
University hub; business innovation units
n/a
TBC
L – LEC site
4.4
Retail & leisure hub; business units
n/a
400
Q – Butlins holiday park & watersports centre
24.0
Upgrading & intensification; leisure and sports
development
n/a
100
Sub-total
42.3
500
iii. Longer-term opportunities
B – Southern Cross
14.4
Upgrading & intensification
57,000
800 *
G, H, I – Durban Road Industrial Area
14.5
Upgrading & intensification
43,500
1,800 *
E – Riverside Caravan Centre
21.4
Area of opportunity
85,000
2,500 *
J, K, M – Shripney Road Retail Area
3.2
Retail & leisure hub
9,600
50 *
Sub-total
53.5
195,100
5,150
TOTAL (Short – Long)
82.5 – 178
116,000 - 311,000
7,500 - 13,150
ESTIMATED NET ADDITIONAL JOBS (based on sites marked *)
Note: The reduction in the upper estimate of total jobs from 13,150 to 11,250 is to reflect the existing estimated quantum of employment on the sites marked *
Enterprise@Bognor Regis / Expression of Interest / Page of 19
7,500 – 11,750
University of Chichester
Enterprise@Bognor Regis / Expression of Interest / Page of 19
Butlins, Bognor Regis
The Economic Case
The Coast-to-Capital (C2C) area has
a total population of 1.7 million people
(1.1 million working-age) and is home to
726,000 jobs. Job growth in the C2C area
over the period 1998-2008 was 8.7%, just
below the South East regional average
(9.7%). The C2C economy generates
£32.5 billion GVA per year, exports £9.1
billion, and £3.7 billion of tourism income.
The Coastal West Sussex area accounts
for about 23% of the LEP’s total workingage population, and 21% of jobs. It is
characterised by a relatively low growth
economy, having grown by just 2.3% over
the period 1998-2008 and with lower
rates of new business formation than the
LEP as a whole. Representation in higher
growth sectors and knowledge-based
activities is low, with significant reliance
on public sector jobs (which grew by
70% in Arun between 2003-08). The C2C
prospectus recognises that Coastal West
Sussex has lower business performance
than the LEP area as a whole, but
identifies potential for greater employment
growth in the creative and tourism sectors,
amongst others.
To fulfil these growth ambitions, Coastal
West Sussex must take advantage of
its economic potential and position
at the centre of several key economic
corridors and clusters, such as the
Gatwick Diamond, Brighton & Hove and
Chichester. Enterprise@BognorRegis
provides a unique opportunity to provide
for a transformational economic ‘step
change’ in this area, whilst also supporting
the continued regeneration of Coastal
West Sussex.
Bognor Regis is an area of significant
regeneration challenge, with a number
of areas in the top 20% most deprived
nationally and amongst the most deprived
areas within the C2C LEP area. The town
has a recent track record of success
in attracting new development and
investment, with the Bognor Regis Task
Force securing £540 million of investment
and 650 jobs since 2007, including
redevelopment of the former LEC site
to provide a new Sainsbury’s store,
regeneration of the town centre and new
housing areas. These committed initiatives
will considerably improve quality of life and
access to services, but securing a broadbased approach to growth will require new
jobs and businesses to be created across
a range of economic sectors. Enterprise@
BognorRegis will complement ongoing
regeneration initiatives in the town by
providing significant stimulus to private
sector job growth in higher-value
economic sectors such as advanced
manufacturing and knowledge-based
activities, with a strong link to higher
education and new business start-up
facilities. This will in turn help reduce outcommuting and retain spending within the
coastal strip, thereby supporting the vitality
and viability of local town centres.
Enterprise@Bognor Regis / Expression of Interest / Page of 19
“Coastal West Sussex is an area of relative deprivation compared to the rest of West
Sussex. It lags significantly behind the rest of the county in terms of educational
attainment, adult skill levels, has a low value wage economy and low business
start-up rates. In response to this, the University is a key partner in the Coastal
West Sussex Partnership Board and led the setting up of the Coastal West Sussex
Skills and Enterprise sub-group. The latter is an exemplar of a local action-oriented
partnership which is driving collaborative initiatives that are delivering real impact.
In recognition of the distinctiveness of coastal West Sussex the University of
Chichester supports this proposal which focuses on retaining and building on the
current infrastructure, which is adding value to county-wide activity.”
Professor Clive Behagg
Acting Vice-Chancellor, University of Chichester
Headline Socio-Economic Indicators
Arun
Coastal West
Sussex
Coast-to-Capital
Working-age population
86,600 (57.8%)
253,700 (59.5%)
1,081,900 (63.9%)
Jobs (2008)
41,600
154,900
725,900
Job growth 1998-08 (%)
3.2
2.3
8.7
Unemployment rate (%)
2.8
2.6
2.9
Economically inactive (%)
22.0
18.4
20.1
New business formation
(per 1,000 popln)
52.5
63.9
74.3
Source: ONS/NLP analysis
Key
% of local authority working age
population that work in Arun
Arun Local Authority
Other Local Authority
k
Higher
Bognor Regis
Croydon
Commuting Flows, 2001
(number of people)*
100 - 500
#
#
#
501 - 1,000
#
1,001 - 5,000
Reigate and
Banstead
Guildford
#
#
>5,000
#
Lower
Mole Valley
#
* Source: ONS, 2001 (Crown Copyright)
Waverley
#
Crawley
#
East Hampshire
#
#
#
#
#
Southampton
Mid Sussex
Horsham
#
#
Chichester
Lewes
#
#
Enterprise@Bognor Regis / Expression of Interest / Page 10 of 19
#
#
#
#
#
#
Functional Economic Linkages and Commuting Patterns
Source: ONS/NLP analysis
#
#
k
Arun
BOGNOR
REGIS
#
#
Portsmouth
#
#
Havant
Fareham
Worthing
Adur
Brighton
and
Hove
Coast to Capital is already home to several
major international businesses that are
world leaders in their respective industries,
including Body Shop International (Arun),
Rolls Royce (Chichester) and Barclaycard
(Worthing). Many areas such as Brighton
& Hove and the Gatwick Diamond have a
proven track record of growth.
However, within Coastal West Sussex
many traditional industries such as
horticulture, fishing and manufacturing
have been in long-term decline,
contributing to lower growth and fewer
local job opportunities. Consequently there
is a significant “jobs gap” across much
of Coastal West Sussex, with residents
out-commuting to larger centres such as
Brighton & Hove, Chichester and Crawley,
but still valuing the quality of life and
residential amenity provided at the coast.
Businesses in the area are relatively small,
have growth constraints and extended
geographical supply chains that impede
competitiveness and productivity.
In a rapidly changing economic
environment, a robust growth strategy
should avoid over-reliance on too narrow a
range of sectors. Therefore, Enterprise@
BognorRegis will allow for a balanced
approach to economic growth by:
•
•
•
•
enhancing the competitiveness of
existing local employers, by allowing
for upgrading and renewal of existing
employment areas and facilitating
expansion of locally-important
employers;
building on the local economy’s
strength in manufacturing and
engineering activities, by stimulating
growth of advanced manufacturing
sectors allowing existing and new firms
to move up the value-chain and secure
their long-term future;
fostering growth of knowledgebased sectors, with access to higher
education provision at the University
of Chichester, and the unique
combination of coastal and National
Park living which add to an excellent
quality of life for residents and
employees alike;
stimulating small business creation
through the tax incentives, provision
of start-up and move-on space, and
business support.
Sector
Current
Representation
Future Growth
Potential
Financial & business
services
Moderate
Moderate/High
High
Distribution
Low
Low
Low
General manufacturing
Moderate
Low
Moderate
Advanced manufacturing /
engineering
Moderate
Moderate
High
ICT
Low
Low/Moderate
High
Environmental industries
Low
Low
Low/Moderate
Healthcare
Moderate/High
Moderate/High
Moderate/High
Creative industries/media
Low
Low/Moderate
Moderate
Construction
Low/Moderate
Low
Moderate
Retail/leisure
Moderate/High
Low/Moderate
Moderate
Hotels/catering/tourism
High
Moderate
High
Waste treatment/recycling
Low
Low
Low
Education
Low/Moderate
Low
High
Public administration
Moderate
Low
Low
Sectoral Growth Potential of Coastal West Sussex
Enterprise@Bognor Regis / Expression of Interest / Page 11 of 19
Impact of EZ
‘step change’
Enterprise@BognorRegis will build on
those sectors in which the local area
has identified competitive advantages
to ensure that the growth opportunities
can maximise economic additionality and
provide a sound base from which Coastal
West Sussex can derive long term growth
within the wider economic landscape of
C2C.
Premising growth on a range of sectors
will also support the wider regeneration
and housing growth planned for Bognor
Regis and will be important in creating
an attractive, balanced location where
residents want to live and work, critical to
attracting and sustaining new investment
over the long-term.
Existing businesses
Innovation
Enterprise Zone
incentives
Expansion and
Upgrading
R&D
Sector drivers
Enterprise@
BognorRegis
Knowledge drivers
Productivity and
market forces
Cluster strategies
Sites and premises
Spin outs
Supporting
infrastructure
High speed broadband
Business support
Access to services
Public realm and
environment
A Dynamic Cluster Approach
Maximising Additionality
The potential of Enterprise@BognorRegis to deliver genuine economic additionality will be maximised through the following measures:
focus on those sectors in which
the local economy
has particular strengths and
competitive advantage
fostering the untapped growth
potential of existing local
businesses, who currently face
constraints to expansion by
providing additional space and
other infrastructure to expand
and become more competitive /
productive
Enterprise@Bognor Regis / Expression of Interest / Page 12 of 19
significant emphasis on new
business creation, supported
by the incubation facilities and
spin-off opportunities provided
by the University of Chichester
targeting of marketing towards
international investors and
those looking to set up satellite
locations to support corporate
headquarters functions
elsewhere in the UK
Overcoming Barriers to Growth
Analysis completed for Arun DC in
its Economic and Employment Land
Assessment (EELA) and a feasibility study
for the Oldlands Farm site (within the EZ)
indicate that the economic potential of this
part of West Sussex has been held back
by a range of factors:
•
•
Strategic highway access to Bognor
Regis has in the past been considered
to be sufficient only to support
smaller scale industrial development.
However, the new Bognor Regis Relief
Road which (connects Enterprise@
BognorRegis) will substantially
address this issue.
1�
A property market for industrial and
commercial/office space that has not
seen the levels of realisable demand
sufficient to drive rents and yields
to sustain investment in addressing
up-front infrastructure or other site
preparation costs.
2�
•
•
•
This in turn has resulted in larger
strategic sites for employment not
being brought forward through the
planning system or such sites not
being capable of being made available
to the market.
As a result, the demand for and supply
of business space has been perceived
to be a generally local market, focused
on smaller units.
This has limited the scope for this
part of West Sussex to attract mobile
inward investment or occupiers
requiring larger floor plate buildings.
The EZ will help to overcome this
fundamental market barrier in three ways:
3�
Its status as an Enterprise Zone will
act as a game changer for the profile
of Enterprise@BognorRegis as an
investment location, transforming
perceptions among the market and
investment community. This will act
as a platform for its promotion as an
investment and development location;
The EZ tax incentives and simplified
planning regime will help to make the
location more attractive to businesses,
both existing and future, as a place
to invest and expand. This in turn will
drive values so that the investment
hurdle for commercial and industrial
property development can be
overcome;
The TIF measures, using capture of
business rate uplift, will help support
investment in up-front-infrastructure
and site preparation costs, including
site access, internal access roads, and
flood attenuation measures.
Arun DC proposes that all seven of the
EZ measures will apply to Enterprise@
BognorRegis. However, recognising
Enterprise@Bognor Regis / Expression of Interest / Page 13 of 19
that the proposed EZ provides a tapestry
of different economic development
opportunities, not all measures will apply
to each plot within the proposed EZ
boundary. This is to avoid situations where
existing businesses benefit from the EZ
measures without delivering additional
growth or investment.
The Schedule on the facing page indicates
which measures will apply to which
plot immediately and which will apply
in the medium-long term, with the key
determinants being:
•
The nature of the use permitted on
each site, with capital allowances for
manufacturing only applying to those
parts of the EZ where such investment
is zoned for development;
•
Discounted business rates applying
only to ‘clean’ sites where new
development can be actively promoted
in the short term. Sites with existing
uses will not be eligible for discounted
business rates unless it is as part of
a comprehensive redevelopment with
new investment;
•
A simplified planning regime (including
LDOs) will apply across the site but
with different standards for each
plot to reflect the circumstances of
each. In particular, there will be a
clear distinction between the design
thresholds applying on existing
industrial sites and those applying
in the more sensitive environmental
locations and on the Butlins site. The
Enterprise Zone will be promoted
through the Local Plan (a draft Core
Strategy is due to be agreed in late
2011) to include provisions for a Local
Development Order;
•
UKTI support will relate only to the
marketing of ‘clean sites’ that are
available for immediate development.
Subject to annual monitoring, but at most,
after five years, the suite of EZ measures
will be reviewed, with incentives/measures
being introduced to parts of the EZ that
are then available for development.
This targeted and phased approach
provides a means of ensuring that
investment is sharply focused on the
opportunities that will yield the best levels
of net additionality. Based on initial, high
level estimates of upfront infrastructure,
flood mitigation and other costs plus an
assumed discout on business rates for
400-500 businesses, the estimated cost
per job is £5,500-6,500 for the ‘clean’
site opportunities and £10,500-12,750
for the longer-term opportunities. Further
work on economic impact is required to
more precisely quantify displacement and
additionality.
Plot
Area (Ha)
Type of Opportunity
Employment
Potential
Likely
timescales
for dev’t
(Years)
i. Clean Site opportunities
A – Oldlands Farm
23.8
Advanced manufacturing
1,100
1-5
C - Salt Box
11.8
Office/knowledge park
3,000
1-5
D – Rowan Park Caravan Club
3.3
Office/knowledge park
800
1-5
F – Land south of former LEC Airfield
12.2
Country park / open space
-
5-10
N, 0 – Former LEC Airfield & adjoining
land
31.4
Small business / studio units in 2,600
parkland
5-10
ii. Supportive framework for a number of proposed investments
P – University of Chichester
13.9
University hub; business
innovation units
TBC
1-5
Q – Butlins holiday park & watersports
centre
24.0
Upgrading & intensification;
leisure and sports
development
100
1-10
B – Southern Cross
14.4
Upgrading & intensification
800
5-10
E – Riverside Caravan Centre
21.4
Area of opportunity
2,500
10-15
G, H, I – Durban Road Industrial Area
14.5
Upgrading & intensification
1,800
5-15
J, K, M – Shripney Road Retail Area
3.2
Retail & leisure hub
50
1-5
L – LEC site
4.4
Retail & leisure hub; business
units
400
1-5
iii. Longer-term opportunities
Immediate
Medium-Long term measure
Enterprise@Bognor Regis / Expression of Interest / Page 14 of 19
Application of EZ measures
Business
Rate
Discount
Business
Rate Uplift
Capture
Simplified
Planning
Regime
Superfast
Broadband
Capital
Allowances
for Manufacturing
TIF
UKTI
Support
The Capacity to Make a Difference
C2C LEP
Organising Delivery
Arun District Council and its partners
across Coastal West Sussex and within
the wider LEP have a track record of
delivery, working in tandem with the
private sector.
Since 2007, the Bognor Regis
Regeneration Task Force has worked
through some challenging economic
times to put in place and begin delivering
a major programme of transformation in
the town, with investment either in place
or in the pipeline of c.£540m, focused
in a series of residential, education
and consumption-economy-related
developments, many of them in and
around the town centre. This programme
of investment is part of a concerted
effort to improve the quality of place offer
within the town and retain and attract
economically active households and new
businesses. The enterprise and job growth
planned for Enterprise@BognorRegis
complements this investment.
Strategic Planning and
Investment
Pooling of Busines Rate
uplift
District and County Councils, University,
developers St Modwen, Bourne Leisure
and Berkeley Strategic, and a number of
local businesses.
This track record of joint working provides
the continuum for the introduction of
the Enterprise Zone, which means there
will be no lengthy set-up arrangements
required in order to get started on turning
the potential into reality.
The diagram right provides a high level
and indicative structure for the delivery
of the Enterprise@BognorRegis
opportunity. Clearly, the specific finance,
governance and implementation roles and
responsibilities will need to be worked up
in more detail.
The Regeneration of Bognor Regis
is overseen by a Private:Public:
Voluntary sector board, which although
unincorporated and with no formal or
executive powers, exercises strategic
direction and influence over key priorities
and shapes the input made by its
individual members, who include the
Coastal West
Sussex
Planning / TIF finance /
Tax Return
Steering Group / Area
Director
Arun DC
Local Planning Authority
Local Government
finance responsibilities
(incl TIF)
C2C / CWS / Arun DC
Programme Lead
Strategic Development
Partner (Integrator)
Private
Finance
EZ Programme Management and Coordination
Landowners
Site developers
Private
Finance
Existing
businesses
Infrastructure
Development
Future
businesses
Business
Indicative structure for Enterprise@BognorRegis
Enterprise@Bognor Regis / Expression of Interest / Page 15 of 19
Bognor Regis
Regeneration
Board
Steering Group /
Advistory
Jobs
Because the EZ provides a range of finance,
infrastructure and developer challenges, it
is considered likely that a strategic private
sector partner will be required to work with
existing land owners, businesses and the
Council to shape and deliver some or all of
the major development aspects of the EZ
vision, operating using something akin to
the ‘Integrator vehicle’ model that has been
successfully applied on a number of major
economic development and regeneration
projects. The Integrator works with the client
Arun DC
(in this case, Arun DC and the C2C LEP)
to secure land assembly; specify/design a
phase/site-based projects; appoints and
manages independent developers/subcontractors; and takes principal risk on the
cost, quality and programme for all projects.
It receives its return based on business
rate uplift/tax return received, along with a
share of development value, subject to the
arrangements it has with landowners/subcontractors.
C2C LEP
Bognor Regis Programme
Regeneration Lead
Board
This is not the only role of the EZ. There
will clearly be a range of responsibilities,
encompassing the planning, financing,
and implementation of the scheme.
However, there will also be the work
required to maximise the economic
potential of the EZ, by attracting endusers/occupiers, supporting new and
growing businesses and connecting them
to skilled and employable labour force. It
will therefore require the partners to come
Strategic
Development
Partner
Financial
Institution(s)
Landowners
Strategic Framework /
masterplanning
Statutory Planning
Land Assembly (incl. CPO if
necessary)
Tax Increment Finance Scheme
Subject to TIF Scheme Design
Infrastructure / Land
remediation Design and Works
Site Development
End-user employment
Job-connect / Skills Training
Principal responsibility
Stakeholder
Consultee
Enterprise@Bognor Regis / Expression of Interest / Page 16 of 19
Existing
Businesses
together to provide a cohesive, private
sector-led economic growth package.
An initial mapping of responsibilities
between the stakeholders likely to be
involved is illustrated below. It provides the
starting point for a more comprehensive
governance and delivery strategy.
Site
Developer /
Contractor
Future
Businesses
Education
and Training
bodies
Key Questions
1. How your proposals will deliver
genuine economic growth and
employment, additional to that
which would have been achieved
in the absence of an Enterprise
Zone, minimising displacement and
deadweight costs
The Enterprise@BognorRegis EZ
proposals will principally be focused
on those sectors in which Coastal
West Sussex has identified competitive
advantages, premised on three key
objectives: stimulating new business
formation, developing and expanding
indigenous firms, and attracting inward
investment. This approach will be
supported by the incubation and spin-out
opportunities provided by the University
of Chichester, to ensure that additionality
can be maximised and reduce the risk
that economic activity is simply transferred
from elsewhere within the Coastal West
Sussex or C2C area. It is anticipated
that the deadweight impacts of the EZ
will be limited reflecting the significant
proportion of ‘clean’ land (45%) which
has not attracted development in the
past due to various constraints and
infrastructure costs, while other parts of
the site comprise under-utilised areas with
established low-value uses.
2. How many new businesses and
additional jobs will your proposals
create (with the Enterprise Zone itself
and more widely across the functional
economic area) and what is the
estimated cost per job?
It is estimated that the ‘clean’ site
opportunities will generate c.7,500 jobs,
with a further 500 jobs to be generated
from the other proposed investments
which the EZ can support, and 5,150
jobs (3,750 net additional) associated with
the long-term opportunities which have
been identified within the EZ boundary.
This could generate up to 200-300 new
businesses on the ‘clean’ sites identified,
and 150-200 new businesses from the
long-term opportunity sites. Based on
the current evidence, initial high-level
estimates of infrastructure, flood mitigation
and other costs suggests a cost per job
of £5,500-6,500 for the ‘clean’ sites and
£10,500-12,750 for the long-term sites.
In advance of more detailed economic
analysis, detailed estimates of potential
spin-off employment in the wider Coastal
West Sussex have not been made at this
stage. Similarly, more detailed economic
impact analysis is required to refine
estimates of displacement, although in the
context of Coastal West Sussex, this is
likely to be relatively low.
Enterprise@Bognor Regis / Expression of Interest / Page 17 of 19
3. The barriers to growth you are
facing and how do you intend to
address them? What is the package of
measures you could bring to the table
to support this?
Technical evidence prepared for Arun
District Council has identified a range of
barriers which have constrained the ability
of this location to attract investment in the
past. These include lack of strategic road
access; a property market for commercial
space without sufficient realisable
demand to sustain investment in sites
and premises; a perception of a localised
market which has limited the scope for
larger sites (in some cases allocated) to
come forward for larger occupiers and/or
to attract mobile inward investment. We
believe that the EZ will help overcome this
fundamental market barrier by acting as
an economic game changer for the profile
of Coastal West Sussex as an investment
location, providing a simplified planning
regime and tax incentives to make the
location more attractive for new and
expanding businesses which will help
overcome the investment hurdle which
has existed previously, and facilitating TIF
measures to support required up-front
investment
4. How do you intend to use the Local
Development Order? Do you envisage
promoting specific sectors through the
Order?
A Local Development Order (LDO) will be
promoted by the local planning authority
to provide a simplified planning framework
which grants “blanket” planning
permission for specified development
or changes of use in an identified area,
facilitating a process and the opportunity
to realise development more quickly
and flexibly. Within this regime, it is
envisaged that different standards will
be applied to each plot to reflect the
specific circumstances and development
type proposed for each. In particular, it is
likely a clear distinction would be made
between those plots being promoted
for specific sectors (e.g. advanced
manufacturing) and other sites where a
mix of uses are proposed. If this bid is
successful, Arun District Council would be
able to proceed quickly to promote some
of the greenfield sites in the Enterprise
Zone through the existing adopted Local
Plan, as a draft Core Strategy is due to
be agreed in late 2011 which would make
provision for the use of an LDO and reallocate the other plots.
5. What size do you envisage the zone
as being; what is the mix (if any) of
businesses within the zone and how
much total commercial floorspace is
envisaged? What are the advantages to
the proposed size?
6. What are the links to the wider
economy and opportunity, both in
terms of existing infrastructure and how
will the development of the Enterprise
Zone benefit the wider community and
economy.
The proposed Enterprise Zone currently
extends to c.180ha, and has been
designed to include a mix of development,
redevelopment and investment
opportunities. This includes c.80 ha
of ‘clean’ land which is available for
immediate development, with an initial
floorspace capacity of 116,000 sq.m. A
further c.95 ha of other investments and
longer-term areas of opportunity could
provide up to 195,100 sq.m. These
provide a mix of development products
to ensure a broad-based approach to
growth and job creation; the initial flagship
developments comprise an office campus
and advanced manufacturing park, to be
complemented by education, retail and
leisure developments. We believe this size
of site and potential mix of uses provides
the required critical mass to bring about
transformational economic change in
Coastal West Sussex, and the flexibility to
respond a range of market and investment
opportunities.
Much of the Coastal West Sussex area,
and Bognor Regis in particular, is an
area of significant regeneration need.
Considerable progress has recently been
made by the Bognor Regis Task Force
to attract new developments and more
are planned, but the focus has been on
residential, education and consumptionrelated activities against a backdrop of
reliance on public sector employment
and declining traditional industries. The
Enterprise Zone proposal will provide a
significant stimulus to private sector job
growth in higher-value sectors such as
advanced manufacturing and knowledgebased activities, with a strong link to
higher education and new business startup facilities. This will complement and help
sustain the other planned regeneration
initiatives by offering new employment
and training opportunities, reducing
out-commuting, retaining spending and
supporting the vitality and viability of local
town centres.
Enterprise@Bognor Regis / Expression of Interest / Page 18 of 19
7. Does the proposal have the full
support of all the partners in the local
enterprise partnership, including
Planning Authorities?
8. How to ensure that the public purse
doesn’t pick up major long-term bills
because of unsustainable planning
pressures?
This proposal document has been
submitted to Coast-to-Capital (C2C), the
Local Economic Partnership for Coastal
West Sussex. Arun District Council firmly
believes that the vision and ambition of
the Enterprise@BognorRegis fulfil the
objectives set out in the C2C prospectus,
including the particular needs and
challenges identified for the Coastal West
Sussex area. The Coastal West Sussex
Partnership supports this EZ Expression
of Interest. If successful, C2C will have
a key role in steering and overseeing the
implementation of the EZ, having regard
to the benefits and opportunities that it will
offer to the wider C2C area.
There are two key responses to this
challenge:
1. Firstly, there are likely to be high
levels of additionality at Enterprise@
BognorRegis in terms of business
and job growth and low levels of
displacement. This is partly because
the EZ will attract investment that will
not otherwise be attracted to Coastal
West Sussex, but also because the
planning constraints militate against
the supply of competing sites of this
scale and quality elsewhere within
the economic geography of the EZ.
This will flow through to additional
business rate uplift and associated
socio-economic cost gains in terms of
additional employment (and reduced
levels of worklessness). This will offset
any potential lost public sector revenue
through business rate discount
or capital allowances applying to
businesses displaced from elsewhere.
2. Secondly, by ensuring that the EZ is
private sector led, including working
with a strategic private sector partner
using the integrator model, there is an
opportunity to transfer risk and attract
private finance to deliver up-front
infrastructure/investment based on
a private sector perspective, thereby
reducing the risk exposure to the
public sector on the TIF and any other
initial investment. There is no intention
for the public sector to up-front fund
any commercial or industrial space.
9. How will you ensure that incentives
or subsidies encourage sustainable
employment and business growth?
A core objective of Enterprise@
BognorRegis is to maximise economic
additionality, premised on three key
objectives: stimulating new business
formation, developing and expanding
indigenous firms, and attracting inward
investment. Within this framework, the
proposed design and mix of the EZ
reflects an ambition to increase the degree
of value-added and specialisation in those
sectors in which Coastal West Sussex
has existing strengths and competitive
advantages. This will ensure that the new
jobs and business created are grounded
in sectors where Coastal West Sussex can
offer genuine advantage (and therefore
sustainable growth prospects) with a view
to increasing market share, rather than
seeking to compete in sectors where
other locations may already be better
placed and therefore any growth is simply
zero-sum game. As detailed earlier in this
document, the EZ incentives regime will
be tailored to reflect the circumstances of
different parts of the site and the specific
development opportunities being pursued,
so that returns are maximised and
subsidies can be clawed back over the life
of the EZ.
Enterprise@Bognor Regis / Expression of Interest / Page 19 of 19
This publication and the proposals contained herein have been prepared for the purposes of an Expression of Interest for an Enterprise Zone, in response to the request from Coast to Capital LEP and the
Government’s formal Enterprise Zone Prospectus. The document has been written in general terms and cannot be relied upon to cover specific situations. The proposals in this document do not represent formal
policy of Arun District Council and are subject to due statutory process, including relevant planning and other factors. All site boundaries and references to development parameters are indicative and relate solely
to the making of an Expression of Interest for Enterprise Zone status, and may therefore be subject to change. Arun District Council and Nathaniel Lichfield & Partners Ltd accepts no duty of care or liability for
any loss occasioned to any person acting or refraining from acting as a result of any material in this publication. © Nathaniel Lichfield & Partners Ltd 2011. Registered Office: 14 Regent’s Wharf, All Saints Street,
London N1 9RL. Designed by NLP 2011.
For further information on
Enterprise@BognorRegis please contact:
Jaqui Ball, Arun District Council
[email protected] / 01903 737 602
Matthew Spry, Nathaniel Lichfield & Partners
[email protected] / 020 7837 4477
14 Regent’s Wharf
All Saints Street
London
N1 9RL
nlpplanning.com