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Bottle Yard Studios - Hawkfield Business Park West of England Outline Business Case Scheme: Bottle Yard Studios - Hawkfield Business Park Originated Reviewed Authorised Date 1 Version 1.0 Oliver Jack Allan, Laura Aviles, Denise 11/12/2020 Roberts Paul Keegan Murray Nuala Gallagher 2 Version 1.1 Oliver Jack Allan, Laura Aviles, Denise 15/01/2021 Roberts Paul Keegan, Robin Murray McDowell Nuala Gallagher 3 4 Executive Summary This proposal seeks WECA funding to facilitate the development of film/TV production studio space in an industrial property located on the Hawkfield Business Park in South Bristol. The scheme will safeguard jobs and expenditure in the West of England in the short term by supporting the ongoing operation of the highly successful Bottle Yard Studios whilst major residential development is coming forward on the neighbouring Hengrove Park site. In the longer term it will provide valuable additional production space as well as new employment opportunities in creative and associated industries in the South Bristol area, identified by Bristol City Council as a regeneration priority. In the past 15 years the Bristol Film Office has assisted TV & film production worth more than £235 million of inward investment across the region, an average total of £15.8 million per year, and is actively working with Invest Bristol & Bath to attract further production companies and related businesses to the area. The growth engine of the film and tv sector is high-end television production. Film production spend in the UK has increased by 24% in the last 5 years with HETV spend increasing by a remarkable 93%. The last financial year saw an increase of £200m compared to the previous 12 months, the highest since records began. All indications are that this growth pattern is set to continue and it is rapidly becoming apparent that there will be a significant demand for crew to service these productions, both for studio and location filming. Bristol is ideally situated as a base for production companies wishing to film both in a studio or location environment, with a vast choice of locations available in the city and the wider West of England region. With the anticipated growth in production of high-end television both at the Bottle Yard and on location, this can only increase exposure for the region, generating more income for local Councils and businesses, and further raise its profile as a popular tourist destination. Bristol and the West of England region have built a strong reputation for its creative sector, which has seen the recent arrivals of both Channel 4 and Netflix. The Bottle Yard Studios is the largest dedicated film and TV studio facility in the West of England. Over the period 2016-2020 it has supported circa 90 FTE jobs per annum, and in 2019-20 facilitated circa £13 million direct expenditure on screen productions by organisations operating in the sector. The Bottle Yard Studios are located adjacent to Hengrove Park in south Bristol. Pockets of south Bristol suffer from deep and longstanding deprivation, including 13 neighbourhoods which fall within the most disadvantaged 5% nationally in the Index of Multiple Deprivation 2019. The 10 most deprived neighbourhoods in Bristol are all in South Bristol, with income, employment, education, skills, training, health and disability being particular issues. Many of these issues are strongly linked to persistent unemployment. WECA has recently awarded funding to support the development of over 1,400 new homes, as well as commercial and open public spaces at Hengrove Park. Development is likely to take place from 2022 onwards. There is significant potential for the development of Hengrove to create noise disturbance that could affect the ability to operate all studio space on the Bottle Yard site. Mindful of the success of the Bottle Yard and the potential impact of the Hengrove development, Bristol City Council acquired a property on the Hawkfield Business Park in 2019 to provide alternative accommodation whilst the development is ongoing and additional studio space in the longer term. Funding from WECA’s Land Acquisition Fund is sought to pay for the costs of acquiring the Hawkfield Business Park site and to convert the building to develop three film and tv studios, with supporting back of house and ancillary facilities. In so doing it will safeguard in the short term £10.5m of direct expenditure by the screen sector annually and 135 FTE jobs. In the longer term, by providing expansion space it will secure £36m of direct expenditure by the sector annually as well as grow employment to over 400 FTE jobs. Proposals are being developed to extend further the activities of Bottle Yard Studios and partners to provide pathways to employment in the screen sector. Nationally the screen sector has been identified as a key growth area with strong potential to significantly assist economic recovery from the COVID-19 pandemic. At the Bottle Yard Studios this is reflected in significant post-COVID demand for studio space, with production companies seeking to secure studios for periods of up to five years. As well as the benefits described above, these proposals have the potential to make a valuable contribution to the local response to the pandemic. The Total Project cost is up to £12,865,500. The grant sought from WECA is up to £11,865,500 for works to develop three new film and tv studios at Hawkfield Business Park, with the Council match funding £1m for works at the existing Bottle Yard Studios site. The value of the project and grant required is to be confirmed at Full Business Case (FBC) stage based on the developed RIBA Stage 3 design proposals and costs. The quantifiable benefits identified at Outline Business Case (OBC) stage for the proposed investment at Hawkfield Business Park are: - 7600m2 of converted floor space for the purpose of Film and TV production. - 904.6 additional full-time equivalent jobs created over a ten-year business plan period for the investment at Hawkfield Business Park - Cost per job of £13,116.84 - A GVA of £248,551,000 generated over the ten-year business plan period. - GVA per £ spent: 20.95 1 Strategic Case 1.1 Project Description The TBYS expansion to Hawkfield Business Park has the following two elements 1) Purchase of the site at Hawkfield Business Park 2) Conversion of the building to film and tv studio spaces. 3) Investment in existing Bottle Yard Studios site by the Council, to maintain and grow existing screen production and income generation. The total project cost for the purchase and conversion works is estimated at circa. £11.86m; to cover the retrospective £5.6m site purchase cost (£5.25m + c£355k costs) and secondly outline support for up to £6.28m subject to a Full Business Case submission in June 2021, following completion and review of RIBA Stage 3 Design proposals and costs. The £6.28m includes 40% contingency against the construction cost estimate, which includes optimism bias allowance to take account that designs are presently at RIBA Stage 2 development. An updated cost position will be reported in the Full Business Case (FBC) based on the developed RIBA Stage 3 designs and cost information. The FBC will also consider any additional funding opportunities to cover part of the refurbishment costs to determine the proportion of grant funding sought from WECA. The project will also consider opportunities for additional decarbonisation measures that could be included in the scheme, based on availability of grant and energy investment funding, in particular this will consider opportunities to fund new heating and cooling and installation of photovoltaics. A formal Cabinet decision was made on 4th December 2018 for BCC to purchase the HBP freehold land interest at market value. The site was acquired with funding provided by BCC through a short-term bridging payment pending full funding being agreed by WECA. Should funding not be agreed with WECA, the Council’s Cabinet decision authorised the Executive Director: Growth & Regeneration to sell the land to recoup BCC expenditure. The Bottle Yard Studios on Whitchurch Lane is a successful and financially viable Council-owned business, elements of which will be disrupted by the forthcoming Hengrove Park housing development. The lack of soundproofing in older, unimproved buildings are forecast to render four of the current studios inoperable, thereby reducing the ability for Bristol to continue to attract high-profile, economically beneficial and employment-generating television and film productions to the city. Later phases of work will affect two further sound stages. It is anticipated that only two studios will remain unaffected throughout. The purchase of the Hawkfield Business Park site half a mile from the main site enables an upscaling of studio and office space that would form the next stage of The Bottle Yard Studios’ business growth, whilst utilising existing back office support. The proposals create further employment opportunities by intensifying the use of the site, which is complimented by the proposed WECA and ERDF funded South Bristol Light Industrial Workspace project at 601 Whitchurch Lane and the recent WECA funding award to support the development of over 1,400 new homes, as well as commercial and open public spaces at Hengrove Park. A red line site location plan for Hawkfield Business Park is provided below. The site was constructed in 1988 and comprises a detached two storey headquarters office building on the site frontage and a standalone high bay warehouse/production facility incorporating ancillary office and amenity areas. The two buildings are linked by a covered walkway. The site has two points of access, vehicular access to the loading bays and separate access to a car park which provides 164 spaces. No works are proposed to external areas as part of the project except for minor internal site vehicular access improvements to the main building and minor site security improvements.
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