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Cabinet 17 Dec 2020 Atlantic Wharf PDF 344 KB CARDIFF COUNCIL CYNGOR CAERDYDD CABINET MEETING: 17 DECEMBER 2020 ATLANTIC WHARF MASTERPLAN INVESTMENT & DEVELOPMENT (COUNCILLOR RUSSELL GOODWAY) AGENDA ITEM: 11 Appendices 2 - 6 of this report are not for publication as they contain exempt information of the description contained in paragraphs 14 and 16 of part 4 and paragraph 21 of part 5 of Schedule 12A of the Local Government Act 1972. Reason for this Report 1. To seek Cabinet approval of the draft Atlantic Wharf masterplan relating to the regeneration of circa 25 acres of Council owned land in Cardiff Bay. 2. To seek authority to commence a public consultation process to engage local residents and businesses on the proposals. 3. Following completion of the consultation process, to seek authority to prepare of an outline planning application, to support delivery of the Indoor Arena project. Background 4. The regeneration of Cardiff Bay is widely regarded as an exemplar urban transformation project. The area is now completely unrecognisable from the scarred landscape left behind by the demise of the coal and steel industries. The renewal strategy was spear-headed in the mid 1980s by the County Council’s decision to locate its new headquarters building on reclaimed land adjacent to Bute West Dock. 5. In 1987, the Cardiff Bay Development Corporation was established by the UK Government to provide a dedicated regeneration focus over an area that made up almost one sixth of the total area of Cardiff. Over a period of 13 years, to March 2000, CBDC reclaimed around 200 acres of derelict land, and over £1.8 billion of private finance was invested. The Council also played a critical role in the regeneration process, retained all planning powers; a unique arrangement across the 11 Urban Development Corporations created at the time. The result was the creation of a mixed-use urban environment that is now home to many thousands of people and has Page 1 of 15 become established as Wales’ leading urban visitor destination. Ambitious projects of international repute, such as the Cardiff Bay Barrage project, creating a 200 hectare impounded lake, the iconic Wales Millennium Centre and the Richard Rogers designed Senedd building have catalysed the regeneration of the area, particularly the ‘Inner Harbour’ area, which is now a vibrant mix of waterfront residential, offices and leisure/retail uses. 6. Whilst the transformation of Cardiff Bay is evident for all to see, there remains significant work to do to elevate the area into the top echelons of UK urban visitor destination capable of delivering a step-change to Cardiff’s visitor numbers. Cardiff still lags significantly behind cities like Bristol and Liverpool both in terms of the number of visitors attracted from outside of the local area, and importantly in terms of GVA uplift generated off the back of the length of time visitors stay. 7. Cardiff Council remains committed to building on the momentum of previous investment and to ‘writing the next chapter in the Cardiff Bay regeneration story’ as set out in the political administration’s policy framework document Capital Ambition. 8. In April 2019, the Council launched its new Economic Strategy, endorsed by the city’s business community following a public consultation process, setting out priorities and commitments for the future economic regeneration of the city. The plan sets out two key priorities: i) Metro Central – the completion of a new office-led mixed use business district in the city centre anchored by the modernisation of Cardiff Central Station. ii) Atlantic Wharf – delivery of the next phase of the Cardiff Bay regeneration story to establish Cardiff Bay as a premier UK visitor destination, anchored by a new Indoor Arena. 9. The Council’s Corporate Plan also sets out the importance of continuing the regeneration of Cardiff Bay and highlights it role in helping to tackle poverty and improve equality and opportunity for the residents located in the city’s ‘Southern Arc’. 10. The Atlantic Wharf project is regarded by the Council as the primary catalyst for the next phase regeneration of Cardiff Bay. The site encompasses circa 25 acres of Council owned land including the existing County Hall site and the recently acquired Red Dragon Centre site, as well as land in the ownership of Welsh Government on Lloyd George Avenue and an area of privately owned land on Pierhead Street, as illustrated by the site plan at Appendix 1. 11. The plan seeks to deliver a major extension to Cardiff Bay’s Inner Harbour area and is of similar scale in terms of square footage and investment value to the St David’s 2 shopping centre development recently delivered in Cardiff city centre. The aim is to provide a long-term sustainable footing for the businesses that have already invested in the area, as well providing the necessary footfall uplift to attract the next phase of new investment. It also Page 2 of 15 seeks to address the Council priority to improve the link between the city- centre and Cardiff Bay through redesigning parts of Lloyd George Avenue and by supporting the delivery of new public transport infrastructure and active travel links along the key Lloyd George Avenue route. 12. The Atlantic Wharf site is located in the Butetown ward of the ‘Southern Arc’. The Southern Arc encapsulates around two fifths of the whole of Cardiff and consists of 11 wards in the south of the city. If considered as a discrete area in its own right, it would be by far the most deprived area in Wales, as defined by the Wales Index of Multiple Deprivation. The Butetown ward has for some time experienced poorer economic outcomes than the Cardiff and Welsh averages, and current claimant count data suggests that the unemployment rate for the area is 2.4 times higher than both the Welsh and UK average. The BTN01 Lower Super Output Area within the Butetown Ward is also amongst the most deprived in Wales according to the 2019 Wales Index of Multiple Deprivation and ranked in the worst 10% of performing areas in terms of both the Overall Index as well as the income, health, housing and physical environment domains. The new Indoor Arena is located on the boundary of BTN01, with some of the site in BTN01. 13. The proposed Atlantic Wharf regeneration project will provide a substantial number of new jobs, both during construction and thereafter, in close proximity to a number of Cardiff’s most disadvantaged communities. Through engagement with developers, the Council will secure commitments to deliver local jobs and local training. Commitments have already secured in relation to the delivery of the new Indoor Arena project, which has now entered the Preferred Bidder stage following a decision by Cabinet on 26th November 2020. 14. The new Indoor Arena project is regarded as the anchor project of the Atlantic Wharf regeneration. In February 2018, Cabinet authorised the selection of Atlantic Wharf as the preferred location for the new Indoor Arena. In February 2019, as part of the budget setting process, Cabinet approved an affordability envelope in the Council’s Medium Term Financial Plan to support delivery of the new Indoor Arena including financial provision for the acquisition of the Red Dragon Centre site. In July 2019, Cabinet gave authority to begin a procurement process to secure a developer/operator consortium to deliver an Indoor Arena at Atlantic Wharf, Cardiff Bay with a minimum capacity of 15,000. 15. In December 2019, Cabinet approved the acquisition of the Red Dragon Centre investment and other land. 16. The procurement process for the new Indoor Arena has moved forward significantly over recent months and the Council now has a private sector offer that meets the city’s aspirations. In November, Cabinet approved appointment of a preferred bidder and is now in the processes of completing a Full Business Case ahead of final contractual commitment and the submission of a planning application in the summer of 2021. 17. The Indoor Arena project is regarded as an anchor project in the Atlantic Wharf scheme for a number of key reasons. It will provide a step-change in Page 3 of 15 the number of visitors to the area, with over 1 million people attracted to circa 140 events at the venue each year. This is fundamental in attracting investment in new leisure related businesses, including hospitality businesses, as well as helping to sustain the existing investments in the Inner Harbour area. 18. The level of footfall increase delivered by the new arena is anticipated to attract complementary investment that will further grow the footfall attracted to the area. This will help to support and sustain new public transport services, including the proposed Cardiff Metro tram-train link from the city centre to the Bay. It should also create the customer patronage required to boost fare-box takings and underpin proposals to extend the Cardiff Metro by linking to the City Line in the west and to the proposed new St Mellons Parkway station in the East. Issues 19. In order to support delivery of the new Indoor Arena, the Council is required to bring forward a plan for the transformation of the area that will surround the new Arena, both in terms of supporting access to and from the new venue, but also to provide a strong commercial context for the property investment required for the new Arena. 20. The Council selected Atlantic Wharf as the preferred location in February 2018. This was followed by detailed feasibility work to identify the optimum location within Atlantic Wharf for the location of the new Indoor Arena. The existing County Hall car park site was chosen for a number of reasons: It represents the least cost option following detailed financial appraisal including impact on services and infrastructure.
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