Northampton Waterside Enterprise Zone Review Prepared for: Northampton Borough Council DRAFT FOR COMMENT October 2020 Northampton Waterside Enterprise Zone Review Table of Contents Executive Summary .......................................................................................................................... 3 1. Introduction ............................................................................................................................. 9 1.1. Instruction ............................................................................................................................... 9 1.2. Enterprise Zone Rates Additionality Mechanism ................................................................. 10 2. Market Review Summary ..................................................................................................... 11 2.1. Industrial Market ................................................................................................................... 11 2.2. Office Market ........................................................................................................................ 17 2.3. Retail Market ........................................................................................................................ 20 3. The Northampton Waterside Enterprise Zone sites ............................................................. 23 3.1. Introduction ........................................................................................................................... 23 3.2. Site summary ........................................................................................................................ 23 3.3. Development assumptions ................................................................................................... 25 4. Successful Development to Date ......................................................................................... 27 4.1. One Angel Square at Site 17 ................................................................................................ 27 4.2. The University of Northampton Innovation Centre at Site 13 ............................................... 27 4.3. Northampton Railway Station at Site 12 .............................................................................. 28 4.4. Hellermann Tyton at Site 7C ................................................................................................ 28 4.5. St John’s Student Accommodation at Site 19 ...................................................................... 29 4.6. Premier Inn Hotel at Site 18 ................................................................................................. 29 4.7. Summary of all completed development .............................................................................. 29 5. Enterprise Zone Business Rates Modelling ......................................................................... 30 5.1. C&W Infrastructure Funding Model ...................................................................................... 30 5.2. Modelling Scenarios ............................................................................................................. 30 5.3. Modelling Assumptions ........................................................................................................ 31 5.4. Infrastructure Funding .......................................................................................................... 34 5.5. Financial Analysis ................................................................................................................. 35 5.6. Modelling summary .............................................................................................................. 42 5.7. Financial modelling findings ................................................................................................. 43 6. Site prioritisation ................................................................................................................... 46 7. Conclusion and recommendations ....................................................................................... 49 7.1. Report summary ................................................................................................................... 49 7.2. Financial modelling findings ................................................................................................. 49 7.3. Site specific recommendations ............................................................................................. 51 7.4. Concluding thoughts ............................................................................................................. 52 Appendix A Enterprise Zone map ................................................................................................... 55 Cushman & Wakefield | Prepared for: Northampton Borough Council October 2020 | 1 Northampton Waterside Enterprise Zone Review Appendix B Detailed summary of the Northampton Waterside EZ sites ..................................... 1 Site 1: Duston Mill Lane .................................................................................................................... 2 Site 2: Upton Way ............................................................................................................................. 2 Site 3: Sixfields & Walter Tull Way ................................................................................................... 3 Site 4: Franklin’s Gardens ................................................................................................................ 4 Site 5: Sharman Road and Lincoln Street ........................................................................................ 5 Site 6: Wreford’s ............................................................................................................................... 5 Site 7: Edgar Mobbs Way ................................................................................................................. 6 Site 8: Harvey Reeves Road ............................................................................................................ 7 Site 9: St James Mill Road and Maltings .......................................................................................... 8 Site 10: St James Mill Road East ..................................................................................................... 8 Site 11: St James Mill Road Riverside ............................................................................................. 9 Site 12: Northampton Railway Station .............................................................................................. 9 Site 13: St Peter’s Way ................................................................................................................... 10 Site 14: Freeschool Street .............................................................................................................. 11 Site 15: St Peter’s Car Park ............................................................................................................ 12 Site 16: National Grid Site .............................................................................................................. 13 Site 17: Project Angel ..................................................................................................................... 13 Site 18: Albion Place....................................................................................................................... 14 Site 19: St John’s ............................................................................................................................ 15 Site 20: Bridge Street, Cattlemarket Road and Carlsberg.............................................................. 16 Site 21: Avon, Nunn Mills and Avon South ..................................................................................... 17 Disclaimer: The outbreak of the Novel Coronavirus (COVID-19), declared by the World Health Organisation as a “Global Pandemic” on the 11th March 2020, has impacted global financial markets. Market activity is being impacted in many sectors. As at the date of this report, we consider that we can attach less weight to previous market evidence for comparison purposes, to inform viability, pricing and related recommendations and advice. Indeed, the current response to COVID 19 means that we are faced with an unprecedented set of circumstances on which to base a judgement. Given the unknown future impact that COVID-19 might have on the real estate market, we recommend that you keep under frequent review the advice contained in this report. Version Prepared by Approved by Date Draft for comment – v1 Claire Evans Jonathan Turner 28/8/20 Draft for comment – v1 Claire Evans Jonathan Turner 23/10/20 Cushman & Wakefield | Prepared for: Northampton Borough October 2020 | 2 Council Northampton Waterside Enterprise Zone Review Executive Summary 1.1. Instruction Cushman & Wakefield has undertaken a detailed review of the Northampton Waterfront Enterprise Zone, with a focus on reporting on development progress to date and establishing the future development potential of the zone and what interventions the Council can make to maximise this. We undertook a site review, including a detailed review of the Rating List to understand the nature of new development since the inception of the EZ. We also reviewed which buildings have been demolished, to understand what business rates income