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Oxford Street District - Business Case

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Oxford Street District - Business Case Westminster City Council Oxford Street District - Business Case 8th April 2019 Westminster City Council Oxford Street District - Business Case 8th April 2019 Westminster City Council Oxford Street District - Business Case Working Draft 8th April 2019 Reviewed and approved by: Signature(s): Name(s): Job Title(s): Date: Westminster City Council Oxford Street District - Business Case 8th April 2019 Contents 1 Oxford Street District ...................................................................................................... 1 1.1 Revitalising One of London’s Great Districts ................................................................................. 1 1.2 The Case for Change ..................................................................................................................... 1 1.3 Place Strategy and Delivery Plan ................................................................................................... 3 1.4 Custodians for the Oxford Street District ..................................................................................... 4 2 Strategic Case ................................................................................................................. 7 2.1 Oxford Street District’s Importance to the City of Westminster .................................................. 7 2.2 Strategic Context ......................................................................................................................... 14 2.3 The wider role of the West End .................................................................................................. 15 2.4 The Need for Intervention .......................................................................................................... 16 2.5 The Place Strategy and Delivery Plan .......................................................................................... 25 2.6 Vision, Objectives and Principles for Oxford Street District ....................................................... 28 2.7 Stakeholder Engagement ............................................................................................................ 30 2.8 Key Risks ...................................................................................................................................... 31 2.9 Constraints and Dependencies ................................................................................................... 31 3 Economic Case .............................................................................................................. 34 3.1 Introduction ................................................................................................................................ 34 3.2 Options Development Process .................................................................................................... 34 3.3 Business Case Options ................................................................................................................ 36 3.4 Cost-Benefit Analysis – Guidance and Overview of Monetised and Non-Monetised Benefits and Impacts .................................................................................................................................................... 46 3.5 Cost-Benefit Analysis – Approach to Analysis ............................................................................. 48 3.6 Economic Performance: Cost-Benefit Analysis ........................................................................... 61 3.7 Sensitivity and Optimism Bias ..................................................................................................... 66 3.8 Key Findings ................................................................................................................................ 68 4 Commercial Case .......................................................................................................... 72 4.1 Delivery Model ............................................................................................................................ 72 4.2 Procurement Strategy ................................................................................................................. 72 4.3 Implementation Timescales ........................................................................................................ 74 4.4 Contract Management Approach ............................................................................................... 75 5 Financial Case ............................................................................................................... 76 Westminster City Council Oxford Street District - Business Case 8th April 2019 5.1 Capital costs ................................................................................................................................ 76 5.2 Assumptions ................................................................................................................................ 76 5.3 Phasing Overview ........................................................................................................................ 78 5.4 Capital Funding ........................................................................................................................... 79 5.5 Sources of Funding ...................................................................................................................... 80 5.6 Revenue costs ............................................................................................................................. 81 5.7 Financial Risks and Responsibilities ............................................................................................ 82 6 Management Case ........................................................................................................ 84 6.1 Governance and Organisational Structure ................................................................................. 84 6.2 Project Management Approach .................................................................................................. 86 6.3 Programme Plan.......................................................................................................................... 87 6.4 Communication and Stakeholder Management ......................................................................... 87 6.5 District Management .................................................................................................................. 88 6.6 Risk Management Strategy ......................................................................................................... 89 6.7 Monitoring and Evaluation ......................................................................................................... 91 Appendix A: Selection of relevant policies and strategic Westminster City Council Oxford Street District - Business Case 8th April 2019 1 Oxford Street District 1.1 Revitalising One of London’s Great Districts Oxford Street is one of the world’s most celebrated retail streets. One of its most important strengths is its vitality, which comes from its eclectic nature and continual newness; from the ebb and flow of commercialism, movement, complexity, contrast and constant change. It is both international and local. It is for residents, workers, and visitors of all ages. It is a microcosm of London. Oxford Street is recognised as a leading retail destination, visited by millions of people each year and is an essential part of the West End and London offer. The Street’s setting means it sits alongside several distinctive and historic neighbourhoods, including Fitzrovia, Marylebone, Mayfair and Soho, that provides a richness and vibrancy that cannot be matched. That is why it is important that Oxford Street is considered as part of a diverse district, integrated in to the wider West End, where it can provide world class retail, commercial, culture and leisure opportunities, and to be a good neighbour for local residents. It is a street, not a shopping mall, with shops that have sides, backs and spaces in between them. It is a thoroughfare and a distributor of movement, but most importantly it is an intrinsic part of a street network that connects historic residential neighbourhoods and the wider West End. Oxford Street has character, authenticity and identity. Celebrating and amplifying these elements will reinforce its continuing status as London’s primary shopping street and support its development into a vibrant centre for civic life and commerce. The district is unique as a meeting point of Great Estates, international retailers, long-established neighbourhood forums and some of the UK’s most important businesses and investors, all of whom have over time developed ideas and proposals for its streets and spaces. There is an incredible richness and heritage to the district that gives it its unique character. It is a place that is defined by historic neighbourhoods that each have their own clearly-defined attributes. This is what sets the area apart from all national and international rivals. Its connectivity to the commercial, cultural and unrivalled leisure offer of the wider West End provides endless opportunities that simply cannot be matched elsewhere. 1.2 The Case for Change The case for change is both urgent and compelling – Oxford Street’s current condition does not match its importance and status. Pedestrian safety and air quality must be urgently addressed, requiring the balance of vehicular and pedestrian movement to be transformed. Management and
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