Agenda Item
Cabinet Member: Councillor Keira Vyvyan-Robinson, Cabinet Member for Projects
Strategic Leadership Team Lead: Emma Day, Executive Head of Service (Prosperity)
Author: Chris Riggott, Property and Regeneration Manager
Telephone: 01306 879359
Email: [email protected]
Date: 2nd February 2021
Ward(s) affected: Dorking North, Dorking South
Key Decision: Yes
SUBJECT: Regeneration of the Foundry and Church Street Workshops, Dorking
Recommendation(s):
The Cabinet is asked to:
a) Approve the allocation of £70,000 from the Opportunity Dorking funding for the purpose of the appointment of consultants and (ii) completion of undertaking technical due diligence and production of feasibility proposals (the architectural concept) to RIBA Stage 2 b) Note that following completion of the feasibility proposals, officers will return to Cabinet to seek further approval to proceed with the development of detailed architectural designs to RIBA Stage 3 and to the subsequent process for procurement and delivery of the scheme
The Cabinet has the authority to determine the Recommendations
Executive Summary:
Cabinet is asked to consider and endorse the principle of regeneration of the Council owned site at the Foundry and Church Street Workshops, Dorking.
The proposal supports the Council Strategy Priority Outcomes and meets the criteria set out in the Medium Term Financial Strategy for new projects to be added to the Capital Programme.
Situated within the Museum Quarter and Conservation Area, the site currently consists of a number of underused and vacant light industrial units, some of which have reached the end of their economic life and present security and safety concerns.
S99 In order to meet the aspirations of the Dorking Town Centre Area Action Plan and Opportunity Dorking, it is proposed that the site is redeveloped to provide a mix of residential and business units. Working in partnership with the Dorking Society (The Dorking Museum) the proposal also incorporates an extension to the Museum, which has been a key, long term ambition for them. Works to date demonstrate that a scheme of this nature will be viable and provide much needed additional commercial space and housing in the town centre.
It is proposed that the scheme is delivered “in house” adopting a phased approach, with this report seeking approval for Officers to undertake a feasibility appraisal and technical due diligence via the appointment of specialist consultants. Officers would then return to Cabinet to seek further approval to proceed with the development of detailed architectural designs and the subsequent process for procurement and delivery of the scheme
Council Strategy Priority Outcomes
Community Wellbeing
Active communities and support for those who need it
x Promote opportunities for residents of all ages to live safe, healthy and fulfilling lives
x Foster community spirit, encouraging individuals, families and communities to support each other especially in times of particular need
The development of the Foundry and Church Street workshops will open up a currently underused area of Dorking, providing opportunities for Dorking Museum to broaden their community offer by supporting individuals and families with a range of educational, cultural and community courses and events. These cannot be provided currently due to space limitations. The proposals will also ensure that an important but little known historic area of Dorking is made accessible to a wider audience. Environment A highly attractive area with housing that meets local need x Protect and enhance the natural and built environment, and ensure our areas of natural beauty and wildlife are well looked-after x Promote sustainable development that takes into account social, economic and environmental factors, including protection of the Green Belt The regeneration will enhance and uplift Dorking town centre by establishing an attractive and sustainable development. An extension to Dorking Museum is proposed, alongside commercial space to meet local needs with housing. Sustainability, both during construction and in subsequent use will be a key focus. By returning an underused and partially redundant brownfield site into use, the scheme also contributes towards safeguarding the Green Belt. Prosperity A vibrant local economy with thriving towns and villages
x Work towards making Mole Valley a prime business location with improved infrastructure to attract and retain creative, entrepreneurial and innovative talent
S100 x Continue to drive the transformation of Leatherhead Town Centre and promote the character, culture and economy of Dorking
Local businesses will be supported and encouraged with improved accommodation and infrastructure, creating a space that is both attractive and meets demand. The scheme will provide an environment that will retain and boost creative, entrepreneurial and innovative talent, promoting Dorking as an economic, social and cultural hub.
From a leisure and visitor economy perspective, an improved and enlarged museum will act as a key tourist attraction, offering new and exciting attractions within the museum itself and signposting visitors to the wider recreation and visitor offer within the area. 1.0 Background 1.1 This report sets out a proposal to redevelop the Foundry and Church Street Workshop site located in Dorking town centre.
1.2 The site comprises two back-to-back MVDC owned parcels of land totalling 0.134 hectares (0.33 acres), located in the heart of Dorking’s Museum Quarter and Conservation Area, adjacent to Dorking Museum.
1.3 Currently, the site contains five light industrial units, two of which are vacant and in a very poor state of repair having reached the end of their economic life. Whilst the remaining units are occupied, their condition is deteriorating rapidly and the Council has allowed for break provisions within the tenancy agreements to allow for future redevelopment.
1.4 The area has significant development potential to support the Dorking Town Area Action Plan with the Foundry site being identified as a key Opportunity Dorking project, however its numerous constraints have historically made progress difficult. 1.5 The site is enclosed by established development including commercial premises and residential dwellings. Its restricted access and inherent ground contamination issues create a challenging development environment and earlier proposals by the Council proved unsuccessful. 1.6 In 2014 the Foundry site was marketed for 100% affordable housing, though in spite of a full marketing campaign it failed to attract a buyer on the grounds that the proposal was not viable. The site was considered too small and complex given the potential issues of contamination and its location within a Conservation Area. 1.7 Given the longstanding aspirations for the area (including a commitment to support the museum), together with the increasing financial and safety issues due to the condition of the existing buildings, a viable and long-term proposal for its future use now needs to be found. Current Situation 1.8 A significant number of the buildings on site are now at a point where the “do nothing” option will result in an increasing financial burden and Health and Safety risk. General Maintenance & Planned Works 1.9 Ongoing maintenance costs for the vacant units are currently estimated at £5,000pa., though within the next 5 years considerable sums will need to be expended including the replacement of the asbestos cement sheet roofing at a cost in the region of £40,000. This will inevitably involve further works including that to adjoining buildings, as well as
S101 general repairs to ensure the structures can be safely re-let. In total we would estimate this cost to be in excess of £90,000. Security 1.10 The low levels of occupancy for the site present on-going security issues that potentially give rise to unlawful access, damage and vandalism. Given the presence of asbestos this compounds the Health and Safety concerns at the site. Rental Income 1.11 Even with substantial expenditure to bring the current buildings up to a lettable condition, the maximum rent thought to be achievable is estimated at £30,000 pa, which does not optimise the potential income and use of the site. Business Rates Liability 1.12 Two large units have been vacant since 2016 due to their very poor and unlettable condition and currently cost the Council £4,050pa in business rates liability. Proposed Development 1.13 Following significant review and engagement with the Museum, this paper seeks approval in principle to the comprehensive redevelopment of the site to include a sustainable range of small, flexible commercial and residential units alongside the Museum extension. 1.14 Whilst previous proposals have been hampered by lack of developer interest and inherent site constraints, this paper provides a direction of travel that will, subject to member approval and the outputs of the proposed feasibility works, deliver a cohesive and viable scheme that responds to these challenges, whilst providing a long term, high quality asset with a sustainable revenue income for the Council. 1.15 Whilst proposals are still at the conceptual stage, we have nevertheless engaged with an external design consultant to establish the likely mix and quantum of accommodation that could be delivered on the site. 1.16 The draft concept envisages a two-storey development positioned towards the centre of the site, with a mix of uses to include residential units, small workshops, offices and communal facilities, situated around an attractive courtyard. The commercial units would be designed with flexibility in mind, to allow businesses to take one or more units and to cater for their future expansion. 1.17 The current concept would deliver a mixed use scheme to include:
x 3,875 sq ft Residential Units x 2,239 sq ft Workshops x 2,239 sq ft Offices x 290 sq ft Welfare Space x 1,100 sq ft Extension to Dorking Museum
1.18 Initial discussions with Planning colleagues have confirmed their general support for the proposals, and they are keen to see designs that reflect the industrial history of the site through its design, use of materials and scale.
S102 1.19 Further work will be required to develop the concept and, subject to approval of the recommendations of this report, there will be opportunities to consider alternatives that could further optimise the accommodation mix, provide additional flexibility and improve values. Additionally, options will be incorporated to consider alternative approaches to accommodate the requirements of the Museum, and to protect against the risk that they may withdraw from the scheme.
Procurement 1.20 It will be essential to develop a clear procurement strategy that mitigates risk, is legally compliant and delivers a high quality and cost effective scheme. This will be relevant not only in the approach to the appointment of a developer, but also the consultant team. Viability 1.21 Covid-19 has had wide-ranging effects on our town centres and the first lockdown caused significant disruption to the property market. Smaller towns have recovered better from Covid-19 than larger, retail dominant towns, and it is clear that serving the immediate population with essential services is key to the future of Dorking.
Residential Units 1.22 The Covid-19 pandemic has resulted in significant change to the property market and within Greater London the demand for apartments (particularly those within high-rise developments) has diminished, leading to a fall in values. Elsewhere, in less built-up areas in particular, the market has fared better with buyers favouring semi-rural locations with more recreational space. 1.23 The stamp duty holiday has resulted in an upsurge in transactions, though this is due to end on 31st March 2021 and it is generally accepted that after this date (unless extended) the level of transactions and values will fall whilst the economy and personal finances recover. 1.24 Employers report that most office workers do not wish to return to the office full-time, and with a reduced level of commuting there will be less need for employees to live close to the office. Dorking should benefit from this as it offers the appeal of a market town on the edge of countryside, whilst being within a reasonable commuting distance of Central London. 1.25 At the lower-end of the property market, small and individually designed apartments within conservation areas are more likely to appeal to younger buyers and those wishing to live within close proximity of the high street. 1.26 The constraints of the subject site favour a small number of well-designed apartments that could include live / work units to compliment the adjacent commercial units.
1.27 At present, there are two such apartments for sale in close-proximity to the site, commanding sale prices of £441 per square foot.
Light Industrial Workshop / Office / Start-Up Units / Serviced Accommodation
1.28 There is growing demand for serviced accommodation as working patterns change following the Covid-19 pandemic, with some people not wishing to work from home nor have a lengthy commute.
S103 1.29 There is a wide variety of accommodation available, ranging from all-inclusive rents with administration support, to basic offices with shared kitchen and toilet facilities. Occupational licence fees vary depending on size, the services on offer and the flexibility of the agreement. People like being able to mix with other companies and Serviced Office Managers try to create a community within the offices by hosting events and networking opportunities. 1.30 Examples of the type of spaces available in the market and their rental values can be found at Appendix 4. 1.31 The emphasis for the subject site would be the creation of small, affordable workspaces with easy-rental terms to reduce initial business set-up costs. This should encourage enterprise and popularity to maintain occupancy levels. The units would also be designed with flexibility in mind, to allow for expansion as businesses grow. 1.32 A supporting statement from the MVDC Economic Development Team regarding demand for small business space, is attached at Appendix 1 of this report. Financial Considerations 1.33 It is anticipated that the residential units would be disposed by way of long leases and at market value upon completion, generating a significant receipt towards the total construction costs. This would then allow the commercial units to be retained and managed directly by the Council to maintain a long term interest in the site and maximise returns including future revenue. The Museum would pay for the land and build costs for their extension, incorporating an appropriate contribution towards associated site preparation costs and professional fees. 1.34 A discounted cash flow appraisal has been prepared to demonstrate that the high level proposal is deliverable, with construction costs provided by an external Quantity Surveyor. Internal Surveyors have liaised with local agents to determine appropriate capital and rental values and yields that reflect current market conditions. 1.35 Estimated rental values are on the cautious side and have been further discounted to allow for potential voids. Whilst we have allowed for management costs of 10% of the annual rent, it is anticipated that the scheme would be managed in-house by the Asset Managers within the Property & Regeneration Team. 1.36 A leasehold transfer of the land required for the Museum extension may also be considered, if required to further improve the financial viability of the scheme. 1.37 The discounted cash flow appraisal can be found at Appendix 2. 1.38 As part of due diligence we have been engaging with the Dorking Museum to establish the extent that they will be able to contribute financially to the scheme. The Museum have appointed a Funding Consultant to support them in developing a clear funding strategy. Regular conversations to review the Museum’s Business Case are on-going in order to ensure there is a robust approach to funding their development costs as well as the Museum’s future security. Deliverability 1.39 In light of the previous lack of developer appetite a range of delivery options have been considered. It is clear that development potential and value is significantly limited by the site constraints and it is therefore recommended that MVDC develop this scheme from inception to completion in house, appointing relevant external consultants as required
S104 whilst working in partnership with the Museum. This holistic approach would ensure that the design will be cohesive, responding comprehensively to the site challenges and constraints, whilst ensuring economies of scale and in house expertise are utilised. 1.40 The in house Property Team at MVDC have the proven Project and Estate Management skills, expertise and experience to deliver this scheme. Additional internal resources from a range of MVDC departments will also be required including Legal, Procurement, Economic Development, Communications and Property. 1.41 Further details are provided at Appendix 3. Capital Bid & Opportunity Dorking Allocation
1.42 The amount required to deliver the scheme is estimated to be £2,000,000. Subject to Full Council approval of the costs, it is proposed however that an allocation up to a maximum of £70,000 from Opportunity Dorking funding will be used to develop the current proposals to the next stage of design development (RIBA stage 2) for technical due diligence, statutory authority fees and architectural design work. As a consequence all of the remaining £145K Opportunity Dorking funding will have been allocated for 2021/22. 1.43 Assuming that £70,000 is allocated from Opportunity Dorking Funding and that there are no grant funding opportunities, the scheme would require further revenue funding allocated or to be made available in 2022/2023 to enable detailed design to RIBA Stage 3, together with a capital allocation of approx. £1,950,000 in 2023/2024. 1.44 Following completion of the initial feasibility proposals, should Cabinet decide not to proceed with the scheme, the revenue costs for work completed will still benefit the Council, as the further due diligence works will help to de-risk the site and enhance its value should the Council decide to dispose of its interest in the site at that point. Grant Opportunities
1.45 Work is ongoing to identify third party funding opportunities such as the Surrey County Council Community Fund that Dorking Museum may be able to apply for. Grant opportunities via the Coast to Capital LEP may be sought by the Council, but will require a scheme that is deliverable (typically, has planning consent and a clear delivery strategy),. Given our proposed partnership with the Museum, Heritage Lottery and Arts Council funding could also be available. Meeting the MVDC Medium Term Financial Strategy (MTFS) Criteria
1.46 The MVDC MTFS 2021/22 (to 2023/24) sets out the key criteria for the Capital Programme. The current site conditions and development proposals as set out in this report demonstrate that the redevelopment of the Foundry and Church Street Workshops meets these criteria, which are set out below:
x To comply with an unavoidable statutory or health & safety imperative
x When a full and credible business case demonstrates a net positive impact on the revenue budget, by no later than 2022/23
x When the project is related to maintenance of an existing MVDC asset, and when failure to undertake that maintenance in 2021/22 would lead to a materially greater cost in future years.
S105 Programme Phased Approach 1.47 We would recommend that this project is progressed via a phased approach. This will ensure that progress through the design development stage to implementation is measured with clear review stages and approvals established at the outset. 1.48 As a key partner in the proposal, this approach will support the Dorking Museum in the development of their funding strategy whilst also establishing a clear direction for their funders. 1.49 Whilst this approach has the potential to impact economies of scale and reduce continuity these elements can be mitigated through robust project management and procurement and contract management strategy. Indicative Timeline 1.50 The key indicative dates are set out below: Indicative Timeline to Completion
Cabinet Approval (this paper) Spring 2021
Feasibility (RIBA Stage 2) Autumn 2021
Detailed design, submit to Planning (RIBA Stage 3 / 4) Spring 2022
Procurement, Contractor appointment Autumn 2022
Development commencement (RIBA Stage 5) Spring 2023
Development completion, in use (RIBA Stage 6, 7) Spring 2024
Note: At each stage approval will be sought from Cabinet and/or Full Council as appropriate prior to proceeding
Tenancy Issues 1.51 The existing tenants are key stakeholders and it is recognised that they will need to be supported throughout the redevelopment. 1.52 Of the remaining tenants on site, 2 intend to retire shortly and 2 have expressed an interest in remaining in the scheme after redevelopment, subject to the rental terms being offered.
1.53 Whilst the existing tenancy agreements contain development break options exercisable at any time upon 6 months’ notice, the Council would endeavour to relocate any remaining tenants to other premises, whilst the development is under construction.
1.54 The Property and Regeneration team will stay in close dialogue with those tenants to keep them informed and engaged at all times.
S106 Marketing Approach 1.55 The Council would procure the services of a local estate agent to market the residential units off-plan. This would help secure sales in advance of build completion. 1.56 The commercial units would be marketed through a combination of local commercial agents, via the Economic Development team at MVDC, local business organisations such as but not limited to Surrey Hills Enterprises, the Chambers of Commerce for Mole Valley and Surrey, and on the Council’s website and social media channels. Risk Implications 1.57 The key risks and proposed mitigations are identified as follows, see also Appendix 3 for further Project Management approach:
Key Risks and Mitigations
Risk Mitigation
Marketability Work closely with local agents and Economic Development Team Undertake soft market testing and on-going review of market appeal Proposed residential units to meet local need (1,2 bed units) Deliver flexible commercial units for light industrial / business start- ups (possibly work/live) to enhance appeal Easy in/out flexible rental terms
Design certainty, Work closely with Planning and Conservation Officers quality & Development of clear brief ensuring proposals are high quality and compliance with retain flexibility Health and Strong consultant management Safety Compliance with the Construction (Design and Management) obligations Regulations 2015
Cost certainty Thorough viability and cost analysis throughout the lifetime of the scheme Appropriate technical due diligence at feasibility to establish site conditions including the assessment of “abnormals” On-going value engineering Strong consultant management
Stakeholder Working with the Communications Team undertake stakeholder management engagement and consultation from commencement Develop Terms of Reference for partnership working with the Museum, with legal agreements to follow at the appropriate time Close liaison with the 4 remaining business tenants with temporary accommodation within the Council’s portfolio to be sought
Programme Develop a robust programme ensuring realistic timeframes with regular reviews
Matters Early analysis of potential issues, with early resolution to be burdening the sought working alongside Legal Services site
S107 Legal implications
1.58 There will be a number of legal implications to consider if the scheme progresses. A summary of the relevant issues are set out below. Further detail will be provided on these as and when the matter comes back to Cabinet.
1.59 The issues relating to the occupational tenants and the termination of their leases are likely to be overcome through the exercise of break options and (where the leases benefit from security of tenure) the payment of statutory compensation. Three of the four occupational leases have adequate break provisions in already and the tenant of the other lease is holding over, - so a new break provision will need to be incorporated into that renewal lease.
1.60 In respect of other relevant private rights, these may be overridden by appropriation of the land for planning purposes (subject to satisfaction of the relevant statutory provisions).
1.61 There are other potential legal issues that will also need to be considered, for example in respect of planning policy (albeit from the Local Planning Authority perspective - including the conservation area designation).
1.62 We have undertaken an initial title review that has not revealed any matters that could defeat the Council’s proposals and an in-depth review will be undertaken as part of the Feasibility Study.
1.63 MVDC will also need to procure a developer and other professionals to carry out and advise on the works and Officers will liaise with the Joint Procurement Team to establish the requirements and again report back to Cabinet with further detail and to seek further approval at the next stage 1.64 Further reports will be brought to Cabinet at later stages subject to the outcome of the RIBA stage 2 (feasibility)
Financial implications 1.65 This report seeks approval to proceed to the next stage of this project, which is to progress initial proposals into a full feasibility study to include further due diligence work to further establish the business case and risks ahead of detailed designs and development. If Cabinet decided not to proceed with the scheme at the next stage, the cost to the Council for abortive work would be capped at £70,000.
Reputational Risk 1.66 Risks will be mitigated by an effective communications strategy in collaboration with the communications team and as part of the Opportunity Dorking programme.
2.0 Options Option 1 - Recommended 2.1 To proceed with the scheme as set out in the report Option 2 – Do nothing / delay the process (not recommended) 2.2 The current condition of the site constitutes a potential H&S risk that should be
S108 addressed as soon as possible. The holding costs and anticipated maintenance expenditure are significant and the asset is underperforming. Option 3 - Sell the asset (not recommended) 2.3 MVDC could dispose of the asset, though this would not deliver best value nor the objectives of the Dorking Town Centre Area Action Plan and Opportunity Dorking.
3.0 Corporate Implications Monitoring Officer Commentary 3.1 The Monitoring Officer confirms that all relevant legal implications have been taken into account S151 Officer Commentary 3.2 The financial issues relevant to this issue are considered in the report. 3.3 The increasing loss of income arising from the Foundry site is such that the Council needs to identify a long term financially viable solution for the site, leading to the current proposal to develop a scheme to the point of confirming financial viability of the proposed scheme. Without undertaking the proposed work it is likely that the Council would simply have to underwrite a permanent loss of income. 3.4 Any further expenditure on the scheme will be dependent upon confirming the financial viability/business case arising from the recommended action. Equalities Implications 3.5 There are no equalities implications directly related to this report. Disabled access and other equality requirements will form part of the design considerations and will be planning considerations as part of any detailed planning application.
Employment and Resource Implications 3.6 There are no employment issues for the purposes of this report, however the successful implementation of the recommendations set out in this report will call upon resources from of a number of in-house teams, including Financial Services, Property and Regeneration, Legal Services, Procurement, and Communications. 3.7 In-house teams will be supported by external consultants who will provide specialist input as part of the due diligence process. Sustainability Issues 3.8 The proposed regeneration will ensure that a range of buildings will be re-provided that meet and where possible, exceed the draft Local Plan Policy EN14 requirements both during the construction phase and in use. Consultation 3.9 Significant consultation has been on-going with the Dorking Museum as a key partner to this proposal. Officers have engaged effectively by holding regular meetings with the Museum Trustees to ensure that both parties understand the deliverables of the scheme and the various obligations that will need to be met. 3.10 There has also been open discussion with the Museum concerning options, if for example, MVDC are unable to proceed or conversely if the Museum decides they are unable to be part of this project moving forward.
S109 3.11 In managing the future relationship with the Museum, it is proposed to set out Terms of Reference and establish a Project Board with officers, where their role in the development will be recognised and a clear process for decision making and approvals established. Legal agreements will need to be completed at the appropriate time to ensure commitment from the Museum. Communications 3.12 Communication will be a key element of this project, given that there are a significant number of stakeholders. These include the ward members, Dorking Museum, existing tenants, adjoining and local businesses and residents and Dorking Town Partnership (the BID). 3.13 A clear stakeholder and communication strategy will be developed working closely with our in house Communications Team to ensure that messages are timely, clear and effective. This will help ensure that proposals are adequately explained and that people’s views are included. This could include a range of options such as mail shots, website updates, and public exhibitions, pop-ups and/or meetings (if appropriate in the prevailing circumstances).
S110 Appendix 1
Economic Development Supporting Statement for the Foundry and Church Street Workshops
The Site The subject site is an unusually complex infill site with limited vehicular access and site configuration options. These physical constraints demand a flexible and innovative design to maximise market appeal and future proof the commercial element of the scheme. There is a real opportunity to explore alternative construction methods that respond to the objectives set out in the Mole Valley Climate Change Strategy and show case green technology, not only in the construction of the scheme but also in the energy efficiency and operational needs of the occupants. However, the site is situated in the heart of a conservation area which means that design sensitivities that must be respected. The economic profile of the existing commercial spaces in Dorking High Street and the Foundry site. In 2019-2020 Dorking Town Centre had a vacancy of approximately 10%. This vacancy rate is now in decline and this local trend has been created by a significant demand for the smaller available units that do not exceed 700 sq ft. Beyond Dorking, there are a number of case studies that reflect the demand for smaller units such as Blue House Yard https://www.bluehouseyard.com/spaces and the 2nd Floor Art Studio https://www.secondfloor.co.uk/ in London. Dorking has always been characterised by its strong heritage and relationship with the community and the makeup of primarily independent businesses from all industry sectors, including food produce, business services, repair services and designer makers. There is a real opportunity for the site to complement other emerging schemes in the Dorking area such as the CHiP project at Pippbrook House and the Deepdene business lounge. These projects indicate a direction of travel for commercial and community spaces in or near retail clusters. The Local market demand for commercial space. The Covid-19 pandemic and Brexit uncertainty have undermined a clear picture of the level of investment confidence at both national and local levels. Anecdotal evidence suggests that there is significant growth in entrepreneurial enterprises, SMEs and a range of micro business related to all industries and sectors, alongside significant and growing evidence to confirm the decline in the viability of large retailers occupying costly High Street spaces. Over the last 9 months, a series of national reports and assessments have presented some measured trends in commercial space. Larger retail spaces have generated a viable trend in innovative leisure uses that are currently high in demand, whilst the medium sized and smaller commercial spaces have seen clear trends to subletting, shared leases and a range of micro incubator models that allow small start-up businesses operate in areas physically connected to consumers. Reference: https://www.robinsonsmb.com/ The popularity and demand for more comparative co-working space can be reflected across other areas of Surrey such as http://rocketdesk.co.uk/ and https://accruewp.co.uk/ .
S111 There is a clear and measured growth in the volume of spaces being made available to SMEs and micro businesses. Affordable workspaces, desk rentals, networking hubs and test trade incubators are all a robust indication of the significant changes in how commercial spaces are used and how flexible employment land needs to be to remain commercially successful. The Mole Valley Economic Development team is currently working with community and business groups keen to connect to wider demographics, such as arts and crafts organisations looking to exploit the benefits of a High Street presence and micro retailers looking for low risk affordable spaces, such as: https://www.community-hub-in-pippbrook.org.uk https://www.dapperandsuave.uk https://www.gin.kitchen. We are confident that these types of interest are not a circumstantial trend, but a response to the changing face of town centres that has been demonstrated in towns like Winchester, Guildford, and Worthing that share some architectural, economic and demographic similarities with Dorking.
Further sites for reference:
Hayward’s Heath - https://www.basepoint.co.uk/services/flexible-workspace
Sheffield - http://www.grantsons.co.uk/
S112 Appendix 2
Contains confidential information and is attached separately to the agenda pack
S113 Appendix 3
Proposed MVDC Team composition, structure & approach to managing delivery
Team Structure: see diagram “Proposed Team Structure”
Team Composition It is proposed that the project will be delivered in house using the skills, expertise and experience within MVDC. This will ensure that there is effective control of scheme including the management of cost, quality and programme. To support the in house team, specialist consultants will be appointed who will provide the necessary expertise in:
x Architectural Design x Cost Management x Mechanical, Electrical & Public Health advice x Sustainability x Structures
The specialist consultants will be appointed using defined scopes via competitive tendering in order to ensure we secure the most appropriate team offering best value.
The in house team consist of a range of professionals experienced in their own specific fields who demonstrate a track record of effective project implementation and delivery.
Details are provided in the following “mini CVs”:
Foundry and Church Street Workshops Regeneration: Proposed MVDC Project Team Name Qualifications Relevant Experience Chris BSc(Hons) Urban Have led in the initiation and delivery of local authority led Riggott Land Economics regeneration projects for over 15 years, including site MRICS assembly, housing redevelopment, highways RICS Registered infrastructure, city centre retail and district centre Valuer revitalisation with an emphasis on mixed-use Member of the development. A key achievement being the creation of Compulsory Burngreave Community Hub, Sheffield - a pilot exemplar Purchase scheme in the first year of the One Public Estate Association Programme.
John BSc (Hons) From an engineering background, over 38 years Menlove Building Surveying experience in the construction industry during which time MRICS John has project managed both new build and Association of refurbishment projects in both London and the Project surrounding area up to a value of £50m. Managed a Management multi-disciplinary team of eighteen in house surveyors in the design and delivery of both commercial and residential developments within a large London authority. Designed and delivered a number of high profile schemes for the NHS including an ICU unit and maternity wards. As the client representative, John managed a team of consultants in successfully delivering the Meadowbank Community site in Dorking.
S114 Inez BA (Hons), A professionally qualified Project Manager managing a Cornwell BSc (Hons), range of regeneration initiatives for over 14 years. MRICS, Projects include large complex programmes such as the MAPM Aylesbury Regeneration in Southwark (infrastructure, public realm, residential and community) and Camden’s Replacement Homes Programme as part of High Speed 2as well as smaller, multiple constrained sites such as the Croydon New Build Programme.
Jane BSc(Hons) Estate Previously worked within the private sector focusing on Coldbreath Management delivering exemplary service to tenants ensuring that MRICS landlord and tenant are connected and working together as one team. Over 15 years’ experience in managing mix use developments, offices and community shopping centre. Recently joined MDVC heading up the Asset Management Team.
Antonio MSc In Property Have worked in the team for just over two years assisting Fernandes Investment & in all aspects of asset management. Extensive Development understanding of the site and history etc. Very good MRICS working relationship with all tenants on the site having recently been responsible for renewing tenant leases on the site.
Lukas BSc Hons in Real Have worked between the Property and Regeneration Dovydauskis Estate teams for over 2 years, assisting the teams in asset MRICS management work and the Transform Leatherhead regeneration projects. Experienced in the preparation of development appraisals, with a keen attention to detail and understanding of sensitivity analysis. Good understanding of the site and its history.
In addition, the Project Team will also work collaboratively with other departments within MVDC, drawing on colleagues’ experience and expertise to ensure a cohesive and effective approach.
Approach to Managing the Project
The delivery of the project will be based on sound Project Management principles establishing clear lines of communication both internally and with stakeholders.
The key tools that will be utilised include: x Robust governance structure including the establishment of an officer project Board with defined reporting to SLT and to the relevant Cabinet Members x Development of comprehensive delivery programme that will be tracked, reviewed and realigned on a regular basis x Definition and management of risk and issues with clear process for mitigation and appropriate pathway for escalation x On-going review and lessons learnt x Effective stakeholder engagement and management
S115 S116 Appendix 4
Light Industrial Workshop / Office / Start-Up Units / Serviced Accommodation Dorking does not currently benefit from a large supply of service offices. BizSpace based in Curtis Road offers space from 95 sq.ft. for one desk up to 650 sq.ft for 10 desks. The offices are all air-conditioned and there is a manned reception desk, tea & coffee making facilities and an on-site café and parking. The offices are let fully inclusive of all bills except for business rates and cleaning. The smallest office – 95 sq. ft. (1 desk) is currently letting for £300 +VAT per month - based on a 3 month agreement (£37 sq.ft.) The largest office – 650 sq. ft. (10 desks) is currently letting for £2,800 + VAT per month – based on a 3 month agreement (£43 sq.ft.) Bell House in Dorking is offering basic non air-conditioned serviced office space of 300 sq ft - £470 + VAT per month (£18 sq.ft.), excluding rates but including car parking. Base Point in Haywards Heath have a developed a popular scheme over 2 stories which are a mix of offices and light industrial on the ground floor. They have a range of units from about 149 sq. ft. to 519 sq. ft. This development benefits from shared facilities as well as administration support together with secure parking. The local Dorking agents have advised that for a basic serviced office with shared facilities but no administration support or break out space, rents should be achievable in the order of £150 - £200 per month per desk space. Using BizSpace as a guide – this equates to £18- £25 psf for a small one desk office to £27- £36 psf for a larger office with 10 desks, though these would need to be discounted to reflect that our proposals allow for only basic facilities with no on-site parking, communal break out area or on-site manager. It is anticipated that the proposed office spaces at first floor level on the subject site would command rents of £21psf based on units of 155sqft gross internal area (14.4m2) for up to 3 desk spaces. This equates to £271 per month or £90.41 per desk space. The workshop units that are envisaged at ground floor level would be finished to a lower specification and command rents of £19psf for a similar size unit (£245 per month).
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