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SEMLEP WATERSIDE ENTERPRISE ZONE BOARD MEETING 7th July 2020 Minutes

PRESENT: Board Cllr. Jonathan Nunn * (Chair) Leader, Northampton Borough Council Cllr. Tim Hadland* Northampton Borough Council Andrew Lewer MP, Northampton South Terry Neville* University of Northampton Roy Boulton County Council Peter Baguley Northampton Borough Council Kevin Langley Northampton Borough Council Craig Forsyth Northampton Borough Council Stuart McGregor Northampton Borough Council Deven Attwell Northampton Borough Council Peter Horrocks* SEMLEP (Chair) Hilary Chipping SEMLEP Kerry Mashford* SEMLEP Art Conaghan (Andrew Lewers office) Linda Aphale Northampton Borough Council (Minutes)

APOLOGIES

Cllr. Jason Smithers * Northamptonshire County Council Judith Barker SEMLEP George Candler Northampton Borough Council Jamie Chalmers Northampton Borough Council Sharon Gregory Northampton Borough Council

* = Board member.

DISCUSSION 1. Welcome and Introductions JN welcomed all to the meeting. HC asked for clarification on Brian Binley’s membership for the benefit of PB, JN confirmed that while BB is not a SEMLEP representative he is invited to attend due to his long-standing involvement with the Board, KL confirmed that he is a non-voting member. Item 3

2. Declarations of Interest No declarations of interests declared

3. Notes of Meeting held 10th March and Matters Arising KM, under matters arising, under item 10 there is a note that we are awaiting Government feedback on the draft of the Northampton Bid and Future High Street Fund, undated requested. JN, at the time of the last meeting the intention was to bid for the full £25million, after continued dialogue with MHCLG this changed, the viability of the M&S site was becoming increasingly difficult, the benefit cost ratio reduced significantly, net result was that NBC bid for £12.2million for Market Square renovations and Waterloo House, BCR 2.9. KL confirmed bid submitted late June, expect to hear back in September. Minutes accepted

4. Terms of Reference (DA) Following on from an action point in the last meeting DA confirmed he has added a paragraph in section 4 to explain how the new West Northants Unitary will be represented, he has also added that we will review membership regularly going forward. DA confirmed this was the only amendment. The amendment was accepted.

5. Governance Report/Update – SEMLEP (HC) HC referred members to the paper circulated on the Project Appraisal Approval Process. This paper clarifies the process for projects coming forward with the potential to use Business Rate Uplift generated by the Enterprise Zone. Like all LEPs SEMLEP is covered by its assurance framework, and this is very clear about how decision are made in a transparent way. Capital Projects have an appraisal process, the preliminary approval has to be completed before projects can go before the SEMLEP board for final approval. PH took a paper to the recent SEMLEP board to ensure all members understood the role of LEP and the process as there has been a change of membership over years. PH mentioned that the end of paper refers to a business case for Four Waterside, would like an update on progress as this is not on the agenda today. KL still working with Hatch on the business case which although well- developed is not ready for today. Paper was agreed.

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6. Cushman Wakefield Enterprise Delivery Plan Review (KL) KL updated on the Delivery Plan Review on behalf of JC. Earlier in the year, NBC undertook a procurement process for a retained commercial advisor, Cushman Wakefield were successful. Having discussed the aims around the Enterprise Zone they suggested an audit of the financial model to develop into a strategy. With the work around the Towns Fund and The Town Investment Fund, we need to identify a list of projects, this document then could feed into the town investment plan and the document that sets out the vision of the Enterprise Zone. They were commissioned in April and are due to complete their work in September, their review/report will be brought back to the next Board meeting. Action Point 7: KL to present on the Delivery Plan Review at the next Board meeting. JN invited queries. KM enquired about the basis and subjects of the review. KL clarified that they would focus on a financial audit and project deliverability. Action Point 8: KL will review the scope of the review with Cushman Wakefield and circulate to Board Members. KL, the key role of this document is around the Town Investment Plan. Hatch Regeneris are NBC’s lead consultant working on the Town Regeneration Plan, supported by Grant Thornton, this needs to be submitted to Government by the end of October. One of the key metrics is tying together the different funding streams, there is a desire to use the Town Investment Plan to pool together all public and private sector funding to add to the single delivery document. KM enquired, as SEMLEP work with Hatch Regeneris in assessing projects how can it be ensured that no conflict of interest is created. KL advised the organisation are being used for the economic narrative of the wider town development and prioritising the list of projects, the Town Investment Plan – which KL offered to share after the meeting. Hatch are only commissioned for the initial economic baseline, afterwards will have to look at who takes the business case forward. KL confirmed that he has already checked with JB and she did not highlight a conflict. HC highlighted the alignment between the Future High Streets Fund, the Towns Deal and the work that SEMLEP have been doing with the Enterprise Zone for many years it would be good for the Board to understand how the work being done ties together. KL agreed, there is a timing issue in terms of board dates and short deadlines, a programme has not yet been developed, the next chance to share would probably be Sept. Action Point 9: KL to circulate papers as approved by Northampton Forward Board. No further comments. Item 3

7. Enterprise Zone Key Performance Indicators (DA) DA referred to the paper circulated, which was in response to an action point at the last meeting. It was discussed at the last Board that NBC would work with SEMLEP to create a dashboard, due to shifting priorities around Covid this is still outstanding. MG enquired how does this tied in with the impact of Covid situation, would like to understand the impact on the town and wider area. DA advised there will be graphs/graphics to compare periods included in the Dashboard. KL, NBC have recently developed their Economic Growth Strategy, this will be refreshed and look at a local recovery strategy. KM, asked for clarification on bullet points 3 and 4 of the document. Action Point 10: DA will get back to KM on bullet points 3 and 4 by email and copy in Board members.

8. Project Updates (KL) KL shared and ran through the report (already circulated), refer to report for details. • Vulcan Works

Highlighted the changes particularly to Angel Street. There have been delays with materials, the supply chain, and getting contractors on site. The extent of implications not yet fully known, the financial implications are evolving.

KL hopes to include photographs in a presentation to the board in the future.

KM enquired about ERDF and internal fit out. KL stressed high levels of engagement, have agreed that there will be changes to the programme and reporting timescales, these are ongoing conversations. In terms of the café, if there are contingency funds left over we would like to look at this, confident that there will not be any contingency available so further investigation needed and will need to bring back to the Board and NBC Cabinet. KM feels that the collaboratively work is quite important and would be pleased to retain the café element as far as possible. MG commented that he had walked up Angel St. earlier and feels the work is really making an impact. PH, on the third risk (market interest/pricing) enquired if there was any information yet on prospects/dropouts, how well occupancy looks? KL referred to initial soft market testing undertaken at the onset of the project, post covid implications are not yet known. DA will be soft market testing again in the coming weeks to ensure the level of interest is still there and there is operator demand. PH mentioned the strong vision of creative Item 3

industries and the clustering effect being the primary purpose, depending how the sector is affected it might be that this become more generic. KL agreed that the definition of ‘creative’ may need to revisit when reviewing occupancy and will bring this back to the Board if required. JN – museum not on agenda but hope to have open by end of year, snagging now.

• Horizon Park KL confirmed that utility companies have to respond. Surveys are in the process of being commissioned prior to full planning application. No questions

• Four Waterside Since last meeting NBC have received the stage 2 delivery advise from Avison Young, this indicated, as expected, a competitive dialogue process was needed to meet the objectives for this key site in order to select a development partner. The report also advised the site should be approached as one site rather than split into individual phases, soft market testing indicated there wasn’t much appetite for the smaller elements, more interest in developing the site as a whole. The outline business case has been drafted, this has been submitted to SEMLEP for appraisal. There are some outstanding technical questions, but the aim is to bring the business case back to the board in September. The risks and mitigations are shown on the report. KL added that subject to hearing the technical clarifications from Hatch, there is a healthy cost ratio, the land value is healthy as is the BCR, the level of intervention is circa £10million. Need the refinement and detail. PB enquired if taking this forward as one site, would this have significant impact on the long-term value of the site, KL felt there was probably no added value but working with one developed might be less problematic as long as build a strong relationship. No further questions raised.

• Northampton Railway Station Stage 2 NBC have been in negotiations with Network Rail for some time and have been approached more recently by Blocwork (the joint venture partner of Network Rail for the Northampton site), regarding the development of the multi-storey carpark, which would help unlock the wider site. There is/was a latent demand of circa 900 people who wish to park at the station but currently can’t due to limits of capacity. Following Covid we have asked for an update on demand details. This is a significant proposition being put to us in terms of risk. It is being sold to us an investment piece, we are still assessing ahead of Item 3

an initial business case. Looking at a commercial structure if the Council choose to progress. HC has spoken to West Midlands trains recently, enquired where the train operating company fit in. KL, we would enter into an agreement with Network Rail and Blocwork as a joint venture, the train operating company have approximately 3-4years left on the provision there and they would be operating the car park on behalf of NBC and they would be sitting with the risk for the first 45 year period. After this the train operating company would not have a role in the operation or the function of the car park and it would be down to NBC to operate the car park on behalf of the railway station No further questions raised.

• Albion Place Car Park At a much earlier stage than some of other projects. This is a car park next to the Premier Inn. An architect has been commissioned to look at the feasibility of the site, design options are being considered at the moment. KL hopes to be able to give more detail at the next meeting. It is anticipated gap funding will be required. No questions raised.

• Freeschool Street The site opposite Four Waterside, looking at how we can bring forward land ownerships together to enable a development to come forward. A commercial agent has been commissioned to look at initial feasibility of the Master Plan to assess if worth undertaking further work on this. The first stage has been received but not in a format to be shared. Early indication from the appraisal is that this site will not be viable as too complex a site to pull together and too large a gap. KL anticipates this site will be held until it is considered more viable. KM, if this site enquired about alternatives for the site if it was deemed unviable. KL concluded that he will need to consider and incorporate into the report that comes back for discussion. KM suggested other uses could be considered that could add to value and enhance the environment rather than ‘sitting on it’ for some time. JN enquired about potential further work on Greyfriars, KL confirmed the site had been investigated but at this time NPH are using the site for their compounding. TH, referred to the description of the site as in part derelict which suggests the area is clear when it is in fact it is not, it is underutilised as much is occupied. JN agreed. PH, re portfolio of properties as a whole, there is significant public intervention required on some, it would be useful to give SEMLEP a view of what might Item 3

come forward over the next few years. He suggested that some might be commercial only, and that there might be some projects that are not viable. KL felt it might be possible to tie this into the strategy from Cushmans delivery advise. KL touched upon the Town Investment Plan process which will be looking at the BCR’s and net asks, and therefore should lead to a clear understanding of the level of intervention required TN enquired about rag rating of projects as can’t all be green. KL advised that this was an oversight. Action Point 11: KL to update the rag rating and re-circulate.

9. Place Marketing Campaign (DA) Trickeler Associates have been appointed by NBC to undertake phase 1 of a place marketing campaign to understand perceptions, both locally and externally, of Northampton, this will then inform the strategy development. It will take into account the brand assets within the town and County, it will review existing strategies and local initiatives (e.g. Love Northampton and Northamptonshire Britain’s Best Surprise). Phase 1 will conclude with a report and presentation on what makes Northampton unique and what NBC should focus on in subsequent work. Work to date has focused mainly on the strategic narrative of the background of the plan, covering tourism, culture and businesses. Trickeler are now moving into engagement phase, and plan to contact partners including Northampton Forward Board, SEMLEP and the University as well as liaising with wider community. The engagement phase is anticipated to conclude late August/early September and it is hoped to present on this at the next Enterprise Zone Board meeting. Action Point 12: DA to share update with board after meeting. No questions raised.

10. Financial Update (SMcG) SG referred to the report and appendices, the team are doing a lot of cleansing and preparing the financials for Unitary, they are reanalysing the past and in doing so they pointed out that there was an innocuous adjustment of £150k to the forecast, problem is that when extrapolated 17 years it looks like £millions. The positive is that if we can get another development running the reverse is that only a few hundred thousand of business rate uplift to make many more millions. This shows that the team are going down to the level of detail NBC are keen to see, they are documenting some of the key assumptions, some of the individual sites and how the forecast model actually works, which will give more confidence, so relatively consistent, but there is a tweak and it comes out on the table (6.1). We are still the right side of the numbers, have not started anything new in the Enterprise Zone recently so forecasting just moving by refining the assumptions, some of the uplift grows Item 3

because of the sites that have yet to be developed that happen to be within the Enterprise Zone, it would be good to see more foundations laid to trigger the next positive step. HC, pleased to see points from previous Board meetings have been taken forward. Hopes that when we start to receive a stream of Business Rate income from Vulcan for example that will make a difference to forecasting HC raised a question re Cosworth rental agreement, referring to the table, thought there was an annual repayment agreement and then balance to be repaid? SMcG thought this had been answered but will take away and chase up. Action Point 13: SMcG to clarify the agreement with Cosworth. HC enquired about the St James Mill Link Road, when would there be a decision on this project, would it be going forward, should the money be released? SMcG deferred to JN on this, this hasn’t been discussed lately, Action Point 14: JN and KL to discuss St James Mill Link Road. No further questions

11. Risk Register (DA) The Risk registered has been reviewed and updated. DA took attendees through the Red risks as documented. HC requested clarification on Rates Relief, the risk says it ends 2020 - is the end of the financial year (20/21), if a business comes onto the Enterprise Zone in this financial year would they have a further 5 years? DA confirmed the risk refers to the end of this financial year. DA to discuss other queries in more depth outside of the meeting. Action Point 15: DA to discuss the Risk Register in more depth with HC outside of this meeting. JN spoke of considerations given to lobbying, although told at the time a clear ‘no’, things have changed, and this might be worth revisiting. HC felt that at the moment there was not much interest from Government but worth taking every opportunity. JN asked AC to flag with AL. AC will have a chat with the PPS to pick up some intelligence on the position before lobbying. MG expressed interest in 007 (lack of visibility of the Enterprise Zone to potential investors) questioned if enough was being done. JN responded highlighting place marketing work, Northampton Forward and the EZ Board, now the business rates benefits have gone from the Enterprise Zone it’s as much about marketing the town for the benefit of the Enterprise Zone as the Zone alone, Stake holder review will hopefully be a key part of work going forward. DA confirmed that a marketing collateral (website etc.) should emerge from stage 3 of the Place Marketing Campaign. JN more to do in Northampton, hopes the new West Authority will ramp up economic activity in the future. Item 3

KM, risk 11, rates relief. If not continued what are the implications, working with people coming into the area, knowing they will not benefit from the rates relief. JN stressed that once the relief had gone the signals to potential business’s is that this is an area keen to do business but conceded there was a limited package to investors. KL, they will see that investments are being made and things happening around them that they could be the beneficiary of. SMcG returned to Business Rate Relief, suggesting that if the Government doesn’t do something, LEP and NBC might consider action as we still take an amount from Business Rates - we might consider forgoing a form of benefit, there may be a compromise to be considered if it makes a difference between someone moving in or not, as we would still benefit from some Business Rates in year 2 and beyond. There might be some sites that lend themselves to a ‘Cosworth 2’ sort of arrangement, and worth considering a compromise on the business rates for these. The targeting needs to be considered in this case. KM raised the new Energy Transformation Fund which becomes available from 20th July ’20, it might not help the Enterprise Zone but might be of interest more generally within the town and County for energy intensive businesses. AC, AL had a call with Cosworth, they will be having a meeting with them in next few weeks, he believes that Government incentives, particularly from the treasury are going to be very tight, they have to evaluate carefully what they will get in return, what the benefit will be, so this will need to be heavily evidence driven. JN identified 2 key points: Firstly, it might be worth lobbying the Government in a blanket way around rates relieve, adding in a request for something more specific around high tech engineering. Secondly, from SMcG, creating a more local offer. AC used Cosworth of an example of a business in the process of transforming itself from an engineering company to a technology company. Highlighted the counties geographic importance, in the Cambridge/Oxford Arc, the position of the University, Silverstone etc. which should make the County of interest to businesses and the opportunity, with a bit of co-ordination of creating an interesting offer. AC reaffirmed that AL could be engaged strategically. JN asked HC how this might be pulled together. HC identified 3 factors. Firstly, as a local authority it is at NBC’s discretion offer some rate relief to attract high value innovative organisations. Secondly, a number of Leps have made the case that, this year, a number of business who would have started in last 4 months haven’t been able to so Government may consider extending for further 4 months to compensate for that time. And lastly the work being done around the Economic Recovery Strategy through the lens of covid, and the possibility of putting an ask to Government around intervention in that area. PB identified the strong fit with NBCs emerging Carbon Neutral Northampton work, looking at creating a centre for low carb technologies/industry and this presents a great opportunity. Although it is probably a unitary task as more Item 3

longer term (looking at allocating land for a carbon business park for example) there are however certain tools to support such as local development orders or consider reducing the need to apply for planning permission. TH, come the Unitary, high tech engineering as evident in Silverstone and Brackley will add weight to the new authorities offer. JN added there was a more defined argument for rate relief, a greater chance of a business case around the green initiatives etc. Action Point 16: Further discussion needed next month to develop the concept of local relief. SMcG and KM to have an initial discussion and then discuss with KL and his team and bring back, possibly via a workshop. KM time is of the essence due to the small amount of funding potentially available.

12. AOB No further business was raised for discussion, meeting concluded.

13. Date and time of next meeting

10am, 10th Sept 2020

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Enterprise Zone Action Tracker No Date Subject Action Summary Lead officer Original deadline Deadline Rag status 4.11.19 Vulcan Works KL to report back on Kevin Langley operator arrangements/tender process at next meeting.

4.11.19 Next Meeting Local Government Kevin Langley Reform to be discussed at next meeting. 4.11.19 Board KL to ensure that link Kevin Langley put on NBC’s website directing all to SEMLEP website. 1 10.03.20 WNC Membership proposal of how WNC Kevin Langley 07/07/20 07/07/20 membership can be addressed moving forwards.

2 10.03.20 Growing Places SG to contact HC/JB to Stuart McGregor 07/07/20 Loan discuss Growing Places loan (April 2015) being repaid impart by rent received and the remainder from business rates uplift

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3 10.03.20 KPI KL to find a way to Kevin Langley 07/07/20 07/07/20 export KPI data/provide feedback/dashboard.

5 10.03.20 Political Risk JB would like to discuss Judith 07/07/20 07/07/20 expression on Risk with KL offline ways of Barker/Kevin Register highlighting political Langley risks on risk register.

6 10.03.20 Action Tracker To be dated back to Linda Aphalé 07/07/20 10/09/20 November 2019 Board meeting 7 7.7.20 Delivery Plan KL to present on the Kevin Langley 10/09/20 10/09/20 Delivery Plan Review at the next Board meeting. 8 7.7.20 Cushman Wakefield KL will review the scope Kevin Langley 10/09/20 10/09/20 Review of the review with Cushman Wakefield and circulate to Board Members

9. 7.7.20 Northampton KL to circulate Kevin Langley 10/09/20 10/09/20 Forward Board appropriate papers as approved by Northampton Forward Board.

10. 7.7.20 Enterprise Zone DA will get back to KM Deven Attwell 10/09/20 10/09/20 Key Performance on bullet points 3 and 4 indicators by email and copy in Board members Item 3

11. 7.7.20 Project Update KL to update the rag Kevin Langley 10/09/20 10/09/20 rating and re-circulate.

12. 7.7.20 Place Marketing DA to share update with Deven Attwell 10/09/20 10/09/20 Campaign board after meeting. 13 7.7.20 Finance update SMcG to clarify the Stuart McGregor 10/09/20 10/09/20 agreement with Cosworth. 14 7.7.20 St James Mill Link JN and KL to discuss St Cllr Nunn/Kevin 10/09/20 10/09/20 Road James Mill Link Road Langley 15 7.7.20 Risk Register DA to discuss the Risk Deven Attwell 10/09/20 10/09/20 Register in more depth with HC outside of this meeting.

16 7.7.20 Local Relief Further discussion Stuart 10/09/20 10/09/20 needed next month to McGregor/Kerry develop the concept of Mashford local relief. SMcG and KM to have an initial discussion and then discuss with KL and his team and bring back, possibly via a workshop.