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Report Re Leeds Bradford International Airport

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Report Re Leeds Bradford International Airport Leeds Bradford Airport - Employment Hub Assessment Prepared on behalf of Leeds Bradford Airport September 2017 Final report Contents Executive Summary 1 1 Introduction 3 2 LBA Growth Context 5 3 LBA Growth Drivers: Policy 11 4 LBA Growth Drivers: Economic 15 5 LBA Growth Drivers: Aviation 23 6 LBA Growth Drivers: Commercial 34 7 Airport Land Development Strategy 47 8 Economic Impact Assessment 56 Final Report Page 2 Executive Summary Creating an employment hub at Leeds Bradford Airport is important to the future development and expansion of the Leeds City Region economy. Specifically, it will: Support the growth of the airport as a key piece of strategic infrastructure in the local economy; Enhance the portfolio of land and premises available to prospective occupiers and investors; and Enable the creation of substantial net additional jobs, investment and tax revenues to Leeds City Region. The growth of Leeds Bradford Airport incorporating a new strategic employment land allocation is recognised and supported as a key policy objective at the regional level as reflected in the Leeds City Region Strategic Economic Plan. Cushman and Wakefield has been instructed to update its earlier Economic Hub assessment (which was branded under our firm’s former name DTZ) to inform the evidence base in support of the land’s proposed employment allocation in the Site Allocations Plan of Leeds’ Local Plan. The findings of this update reinforce the earlier conclusions which in summary are: The Airport needs space to grow Leeds is one of the largest city region economies in the UK, but has only the 15th largest airport (in terms of passenger numbers). LBA is forecast to double its passenger numbers by 2030 and it requires space to grow in order to realise this growth. The development of an Employment Hub comprising land including both the emerging employment land allocation and land within Airport’s Operational Land Boundary (AOLB) is regarded by LBA as an integral component of the growth strategy for the Airport. The hub will support the Airport’s growth by: Providing space for the expansion of core operational and supply chain activities; Enhancing its profile and ‘investability’ particularly to flight operating companies for route development; and Strengthening the case for improved connections and accessibility. There is an identified requirement for a large scale strategic allocation of employment land at the airport In our earlier report we highlighted the economic development need and opportunity as demonstrated by: The fact that all other major regional cities are bringing forward dedicated strategic employment sites at airports to respond to the opportunity and demands of occupiers for land and property in close proximity to airports. There needs to be a comparable offer at Leeds Bradford Airport to enable the City Region to compete and to avoid the loss of occupiers; Page 1 The location offers a differentiated product that will complement rather than compete with other / emerging employment sites within Leeds; and Arguably 1 ha of employment land at the airport has a greater economic development value as measured in net GVA terms than other locations because of the distinct and differentiated offer at the airport. Since the production of our previous report in November 2014, the case has been strengthened for a strategic employment land allocation as a result of: The proposed allocation of the 36.2 ha site in the Draft Site Allocations Development Plan Document as an Economic Hub; Additional employment land evidence produced on behalf of Leeds City Council (BE Group Assessment of Employment Land Needs for North West Leeds, June 2015), which confirmed the local need for additional employment land allocations close to Leeds Bradford Airport; An employment land study dated October 2016 produced by Andy Haigh Associates on behalf of Leeds City Region Local Economic Partnership which provided evidence in support of a strategic employment land allocation at Leeds Bradford Airport; and The identification of the Economic hub in the Leeds City Region Strategic Economic Plan as a Strategic Employment Site. LBA has published its Masterplan setting out how the Airport will grow including the spatial implications. The growth of Leeds Bradford Airport is recognised and supported nationally, regionally and locally, as reflected in the Leeds City Region Enterprise Partnership’s (LEP’s) Strategic Economic Plan, the Leeds Transport Strategy (2016) and the Draft Submission Site Allocations DPD document of the Leeds Local Plan. Public private collaboration can ensure the delivery of maximum benefits Recent and ongoing consultations between Leeds Bradford Airport, Leeds City Council, Leeds City Region LEP, West Yorkshire Combined Authority (WYCA) and HE institutions have identified a number of opportunities which are being explored: The potential for creating an Innovative Technology park to plug an identified gap in the Leeds City Region Land and property offer, to align with the emerging manufacturing strategy of the LEP / WYCA and University; The creation of a manufacturing hub facility incorporating incubation and innovation facilities as well as conference and training space; and Creation of Enterprise Zone status to establish both an infrastructure funding mechanism utilising business rates additionality for Tax Increment Financing (TIF) together with occupier incentives geared towards manufacturing firms. Page 2 1 Introduction Purpose Cushman and Wakefield has been appointed by Leeds Bradford Airport (LBA) to assess and develop its proposals for an ‘Employment Hub’ comprising a mix of predominantly employment uses on land to the north of the Airport. This report updates the previous report produced by us in November 2014 under our former brand DTZ. Passenger forecasts indicate that LBA is projected to grow significantly over the next 15 years and it aims to become a top 10 UK airport in terms of its passenger traffic. Alongside this, a significant opportunity exists for the Airport to develop a complementary Employment Hub of economic activity. LBA have control of land immediately to the north of the Airport which is identified for the delivery of the Employment Hub. The Airport’s current landside offer does not match the potential growth projections. Given its growth projections, there is a distinct opportunity to capitalise upon the Airport ‘asset’ and the attractiveness to businesses that an airport location would provide. This could provide a unique employment location within the Leeds City Region that could increase its attractiveness to inward investors and address the current lack of available large strategic commercial development sites across the City Region. This report has been prepared to update the evidence base in support of the proposed Employment Hub to inform the forthcoming Examination of the Draft Site Allocations Development Plan Document of the Leeds Local Plan and emerging allocation EG3 ‘Leeds Bradford International Airport (LBIA – Employment Hub) of the DPD. Methodology and structure of report Our approach to this commission has involved an assessment of the various drivers that influence the potential for a commercial growth hub at LBA: Policy Economic Aviation Commercial We have then worked alongside WYG and 5plus Architects to devise an indicative land development strategy, development schedule and phasing plan. An evidenced-based approach has been adopted to ensure a robust assessment of the potential for the hub, drawing on documented evidence of the market for commercial land and floor space within the Leeds area and also reviewing lessons from other comparable airports across the country. We have also consulted senior representatives from the following organisations in the preparation of this report: Leeds Bradford Airport Leeds City Council Leeds City Region Local Enterprise Partnership (LCR) Page 3 West Yorkshire Combined Authority (WYCA) University of Leeds This report first outlines the LBA baseline and growth context before assessing the various growth drivers. It then outlines the development potential and makes recommendations on the quantum and mix of development and means of delivery. It concludes by providing an assessment of the economic benefits of the Economic Hub. Page 4 2 LBA Growth Context History LBA is located approximately seven miles to the North West of Leeds City Centre. It opened in 1931 as Yeadon Aerodrome. Domestic schedule flights commenced in 1935 and it served an important role during World War II, with the development of an adjacent military aircraft factory. By the 1950s the airport was running commercial flights to the Isle of Man, Liverpool, Belfast, Jersey, Ostend, Southend, the Isle of Wight and Dusseldorf. In 1953 Yeadon Aviation Ltd was set up to run the flying school and commercial airfield operation but the ownership was transferred to five local councils in 1987 through a limited company with Leeds and Bradford councils each owning 40% and Wakefield, Calderdale and Kirklees sharing the remaining 20%. Scheduled domestic and European flights re-commenced after the war and these expanded rapidly during the later 1970s/80s as the popularity of package holidays boomed. It was owned jointly by the five neighbouring local authority areas of Leeds, Bradford, Calderdale, Kirklees and Wakefield until 2007, when it was announced that Bridgepoint Capital was the preferred bidder, acquiring the asset for approximately £145million. Bridgepoint Capital owns the
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