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CI October 2016 Plymouth Growth Board, 31st October 2016 Item 4 Ocean City Infrastructure Flagship Report Accelerating infrastructure delivery, creating the right environment for economic growth. INTRODUCTION This report summarises progress on the Ocean City Infrastructure Flagship’s 5 strategic objectives, and associated 11 deliverables, which are as follows: Unlock critical infrastructure for marine sector growth and Mayflower 2020 1. Develop and deliver a Marine Industries Production Campus (MIPC) at South Yard to support marine and advanced manufacturing growth across the south west peninsula 2. Deliver a Visitor Economy Capital Plan for key ‘ocean city’ infrastructure (to follow) Optimise the economic potential of the city centre and waterfront 3. Prioritise strategic infrastructure in the city centre and waterfront to drive economic growth Create the conditions for knowledge-based business growth 4. Deliver new infrastructure to foster business innovation, including a new City Centre Innovation Centre 5. Facilitate further high-value employment growth at Plymouth Science Park through Phase 5 6. Unlock new strategic employment space at Plymouth International Medical and Technology Park Enhance the city’s commercial and residential property offer 7. Develop a city-wide Investment Prospectus, prioritising capital projects with the greatest economic returns 8. Support delivery of city’s Housing Plan to ensure new homes support low carbon growth, economic competitiveness and future prosperity Ensure Plymouth is ‘well connected’ 9. Lobby for reduced rail journey times, electrification, track and signalling enhancements, and improved capacity 10. Improve resilience of strategic road and rail routes to and within the peninsula 11. Unlock growth potential of Derriford through delivery of the Forder Valley Link Road and Derriford Junction Unlock critical infrastructure for marine sector growth and Mayflower 2020 Key actions: Develop and deliver a Marine Industries Production Campus (MIPC) at South Yard to support marine and advanced manufacturing growth across the south west peninsula. Deliver a Visitor Economy Capital Plan for key ‘ocean city’ infrastructure Develop and deliver a Marine Industries Production Campus (MIPC) at South Yard to support marine and advanced manufacturing growth across the south west peninsula. 1. BACKGROUND The Marine Industries Production Campus (MIPC) is the flagship project of the Plymouth & South West Peninsula City Deal. It comprises the phased transfer of 8ha of underutilised Ministry of Defence (MoD) land in South Yard, Devonport, to Plymouth City Council (PCC), for redevelopment for industrial use, with a focus on the marine and advanced manufacturing sectors. It is estimated that the MIPC project will create up to 1,100 jobs and 25,000 sq m of business space. Over £20m of government and local funding has already been committed to the project as part of the City Deal. Beyond South Yard, the wider City Deal strategy is to unlock and develop other marine sites across the Heart ot the South West (HotSW) LEP area, including Appledore and Yelland (North Devon), Oxen Cove (Brixham), Noss on Dart (South Devon), and Falmouth and Hayle (Cornwall). The marine and advanced manufacturing sectors are recognised as key strengths in Plymouth and the south west peninsula. Marine employs around 26,000 people, with at least a further 10,000 employed in its supply chain. The HotSW marine sector was worth £406m in terms of GVA in 2012 and contributes around a fifth of UK marine sector output and jobs. It is also comparatively productive, with GVA per FTE of £54,000 compared to a HotSW industry average of £41,300. Marine sector productivity is expected to increase faster than nationally to 2031 (1.7% pa vs. 0.8% pa). World class companies are already taking advantage of our strengths in this area, including Babcock Marine, Princess Yachts, NOV Pipex px, AugustaWestland, Pendennis Shipyard, A&P Falmouth and Kawasaki. Plymouth University, Plymouth Marine Laboratory and the University of Exeter provide world leading marine research expertise and innovation facilities. 2. ACHIEVEMENTS (since February 2015) a) Re-branding of the MIPC project, now known as Oceansgate, with a new logo, a new website, oceansgateplymouth.com, and a new vision statement: “to bring together marine based businesses to create a world class hub for marine industries, with opportunities for research, innovation and production in a collaborative environment.” New brand guidelines and a suite of branded applications (e.g. brochures, stationery, advertisements, signage etc) have also been produced to support the delivery of the project - Oceansgate Brochure: b) Designation of Oceansgate as the first exclusively marine Enterprise Zone in the UK. The Enterprise Zone will benefit from 25 years of investment, supported by business rates discounts worth up to £275,000 per business over a five year period, enhanced capital allowances on new plant and machinery, and superfast broadband. Above all, Enterprise Zone designation raises the profile of the Oceansgate development with Government and business, both nationally and internationally. c) Outline Planning Consent has been granted for the Oceansgate development masterplan, and a Design Guide drawn up to enable detailed development proposals to be brought forward. d) The first phase of development (pictured below), comprising 2,578 sq m of office and light industrial business space, has secured detailed planning consent, and construction is due to start on site in January 2017. Oceansgate Phase 1 development e) Meanwhile, the first round of demolitions started on site in March 2016, to dispose of a series of redundant MoD buildings, and a further round of demolitions is due to commence in November to prepare the Oceansgate site for redevelopment. f) The provision of new service infrastructure to enable the Oceansgate development to operate entirely independently of Devonport Naval Base started on site in October 2016, with the construction of a new drain across the site to support the Phase 1 development. Further major works are planned to commence in January 2017 to service Phase 1 and Phase 2 development. 3. FUTURE MILESTONES a) October 2016: completion of Phase 2 site transfer. b) October 2016: Phase 1 drainage works start on site. c) November 2016: confirmation of £6.5m HotSW LEP Growing Places Fund and Growth Deal 2 funding for Phase 1 development. d) January 2017: Phase 1 construction start on site e) January 2017: Phase 1 & 2 infrastructure start on site f) 2017: completion of Phase 1 development. g) 2017: commencement of Phase 2 development. h) 2018: completion of Phase 2 development. i) 2018: completion of “enclaving” works to ‘de-couple’ Oceansgate from Devonport Naval Base. j) 2018: completion of Phase 3 site transfer k) 2018: Phase 3 development start on site. 4. RISKS (and mitigation) a) Failure to secure additional public sector capital grants: Seek additional grants, prioritise works and develop contingency plan. b) Cost estimates/allowance prove significantly lower than actually required due to unknowns: Include contingency sums, minimise unknowns and prioritise works. c) Market demand and take up of the MIPC site is slower than anticipated or is insufficient: Review marketing strategy and asking rents / prices. d) Onerous constraints/conditions attached to land transfers: Re-negotiate with MoD and Government. e) Land transfers cannot be achieved to agreed timeframes: Secure certainty as soon as possible but negotiate flexibility 5. RAG Deliver a Visitor Economy Capital Plan for key ‘Ocean City’ Infrastructure BACKGROUND The Plymouth Visitor Plan (2011) sets targets for increased visitor numbers up to 2020 of 20% (from 4.4 million to 5.3 million), and increased spend of 25% (from £247 million to £309 million). This will deliver an additional 2,800 jobs up to 2026. In 2013 visitor number targets had been met, with over 5.5 million visitors per annum and spend ahead of target at £327 million due to a record year for British tourism following the 2012 Olympics. In 2014 visitor numbers slipped back particularly in the SW due to the Dawlish rail issues, a strong £ and a drop in domestic visitor numbers nationally. Numbers have recovered slightly in 2015 with visitor numbers at 4.96 million and spend £316.5 million, still above our 2020 targets. Mayflower 400 will act as a catalyst for growth, and the city needs to ensure it has sufficient infrastructure to support visitors and for future economic growth. In particular the following areas have been highlighted as crucial to further growth in the visitor economy and to support Mayflower 400. a) Accommodation Infrastructure: i. 4 and 5 star hotels offer, minimum 200 beds. ii. Larger conference and expo venue. b) Connectivity and significant improvements to public transport, including: i. Significant upgrade to rail station. ii. Improved rail connections to London and regional airports. iii. New coach hub. iv. Water taxi development. v. New market opportunities including cruise terminal. vi. Coach parking and drop off sites. vii. Improved way finding and signage. viii. Lighting the city and monuments. c) Product development – culture, heritage, attractions: i. History Centre. ii. Mayflower Steps memorial and redevelopment. iii. Merchants House renovation. iv. Elizabethan House renovation. v. Naval Heritage Centre and Courageous attraction. vi. Barbican Theatre re-development. vii. Arts Centre re-development. ACHIEVEMENTS a) Accommodation infrastructure i.
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