EXECUTIVE 3 August 2004 TEES VALLEY INVESTMENT STRATEGY AND NORTHERN WAY EXECUTIVE MEMBER FOR ECONOMIC REGENERATION AND CULTURE CLLR DAVID BUDD ASSISTANT CHIEF EXECUTIVE - REGENERATION TIM WHITE PURPOSE OF THE REPORT 1. To inform the Executive of Middlesbrough’s progress on a submission to the Tees Valley Investment Strategy 2005/08 and associated representations in respect of the Northern Way. BACKGROUND AND EXTERNAL CONSULTATION 2. ONE Northeast recently published guidance on the investment priorities for Sub-Regional Partnerships (SRPs) for the period 2005-2008, with a view to the development of bids for its resources. It also coincides with the Office of Deputy Prime Minister (ODPM) launching the Northern Way. This will be a strategy designed to ensure that the three northern regions (Northwest, Northeast and Yorkshire and Humberside) enhance their contribution to the development of the national economy by improving their existing growth rates. 3. The aspirations for Middlesbrough and the sub-region for both these strategies need to be expressed in a consistent manner and therefore joint submissions for both the Northern Way and the ONE Northeast investment are being prepared. 4. CMT will recall that the Tees Valley Partnership (TVP) leads on the development of the sub-regional approach for the Single Programme. Likewise a joint arrangement has been adopted for inputs into the Northern Way. 5. The sub-region is well placed to contribute to these initiatives, given the development of the Tees Valley Vision. The submissions will be based on the core themes of the Vision, although there is a need to develop the concepts into a costed investment strategy. 6. The recent establishment of the Stockton / Middlesbrough Initiative has led officers from both authorities to work together with a view to presenting a joint submission to the TVP. This will outline the shared aspirations with regard to investment priorities within the urban core of the Tees Valley. 7. The aim of the Initiative is to create a ‘city zone’ at the heart of the Tees Valley. Northern Way 8. ONE Northeast and Government Office for the Northeast (GONE) are leading the inputs from the Region into the Northern Way. It is expected that the Strategy will determine the future aims and objectives of the Regional Economic Strategy (RES) and Regional Spatial Strategy (RSS). Indeed, the publication of a consultation draft of the RSS has now been delayed until autumn to await the publication of the Northern Way. 9. It is unclear what additional resources or policy priorities will be afforded as a consequence of the Northern Way. However, it coincides with the Government’s imminent comprehensive spending review. 10. It is however becoming clear that ODPM is keen to build on the concept of developing core cities. Indications suggest that these will be the focus for future investment and growth. Preliminary discussions have identified eight potential core cities (based on Liverpool; Manchester; Blackburn and Preston; Leeds / Bradford; Sheffield; Newcastle / Gateshead; Hull; and Tees Valley ONE Northeast: Investment Strategy (Single Programme) 11. The first Tees Valley Single Programme Delivery Plan was for 2002/05 and will come to an end on the 31st March 2005. Single Programme is the main funding source from the Agency for regeneration and will eventually replace SRB, as this latter scheme expires. 12. The TVP has been managing the sub-regional resource. To date over £22m of resource has been injected into the Tees Valley. There are two types of projects currently being delivered: a) sub-regional or central projects, which are primarily being delivered across the whole of the Tees Valley by organisations such as Business Link or the Learning and Skills Council; and, b) borough packages, which are delivering projects specific to a local authority area. Middlesbrough projects include the Art Gallery (MIMA), Riverside Park enhancements and Linthorpe Road Central. 13. In May 2004, all the Tees Valley authorities and other agencies were asked to submit their investment priorities to the Tees Valley Partnership for the period 2005 to 2008. 14. For the new programme, ONE Northeast is looking to the SRPs to bring forward around only 15 to 20 investment priorities for the next three years. These will be based on the broad themes outlined in the RES of Business (RES objectives 1 and 2), People (RES objectives 3 and 4) and Place (RES objectives 5 and 6). The Agency is looking for strategic step change projects that contribute to economic regeneration. 15. ONE Northeast has suggested that £25m will be available for the Tees Valley for each of the three years 2005 - 2008. One Northeast has also indicated that it will also fund projects of regional significance from its central funds. However, it is unclear how such schemes will be defined or determined. Stockton / Middlesbrough – developing a submission 16. The development of a strategy for Stockton/Middlesbrough will need to be based around renaissance and bonding of two complementary and growing commercial centres in a compact area. In response to the Agency’s guidance the focus of future investment would be best based around strategic initiatives, which should demonstrate integration and complementarity. The current proposals are based upon: a) enhancement and development of the two existing commercial centres for business, cultural, leisure and retail; b) strategic re-development sites allowing for the expansion and integration of the urban centres; and c) the continued development of a string of pearls a long the River Tees corridor. 17. The emerging investment strategy for the Stockton / Middlesborough Initiative contains a broad range of proposals based on these three themes. It also incorporates proposals to the east of Middlehaven, which have been developed by Redcar and Cleveland Council. 18. It is clear that any strategy has to demonstrate that a broad, holistic approach has been adopted. The significance of the two Tees Valley Regeneration (TVR) projects, at Middlehaven and North Bank, is critical to the vision of the City Zone, as are the future development aspirations of both Teesside and Durham Universities, at Teesdale. The strategy for Stockton / Middlesbrough has built upon these cornerstones. a) Commercial Centres 19. For Middlesbrough to fulfil its sub-regional role it needs to further integrate and develop its existing commercial, educational, retail and cultural offers. The proposals are based on a linear corridor of city-scale activities, which will link the River Tees waterside at Middlehaven through vibrant cultural and university quarters to a high-class retail area, at Linthorpe Road central. 20. The focus for investment would be centred on an enhancement to the cultural and retail focus within the town centre. The new Middlesbrough Institute of Modern Art (MIMA) will act as a touchstone development around which a new cultural quarter will be developed. This could include the development of the Empire Theatre as a major regional performing arts venue and the improvement of the existing town hall. 21. The integration of the aspirations of the University of Teesside is at the heart of the ambition for Middlesbrough. A new state of the art university development, potentially at Central Gardens combined with the Digital City initiative, will add vibrancy, educational development and new business opportunities. 22. Linthorpe Road central would continue to grow as high-class retail location. Additionally, other potential opportunities would be based around: the redevelopment Gurney House and associated land; re-use of vacant office blocks and enhancement of key gateways into the town centre. b) Strategic Sites 23. Middlehaven is a radical and exciting opportunity aimed at repositioning the town on a global stage and bringing about a step change in the economic and social structure. The vision for the site is a vibrant, prosperous place where people aspire to work, live and play. No longer isolated from the town centre by the barrier of the A66 and the railway, but connected under the road and over footbridges, it will be landscaped to create undulating parkland inhabited by a collection of iconic buildings. 24. The aspirations for Middlehaven however extend to a broader area. The site cannot be developed in isolation. Its success is dependent upon an integrated package of improvements in the immediate area. This Greater Middlehaven area will therefore become a second major investment priority for Middlesbrough as there is a need to provide a range of supporting infrastructure, particularly improved linkages with the commercial centre. 25. The potential of the enhancement of the Queens Square area as a “Boho” zone, would support the creation of a cultural business zone, with associated improvements to the railway station. c) String of Pearls 26. The final investment priority is focused around creating a string of pearls along the River Tees. The corridor provides a unique opportunity for further development. Unlike almost all of Britain’s major river based conurbations, Teesside has not fully capitalized on the huge asset and economic potential of the river frontages. 27. The river corridor is rapidly becoming a centre for recreation and leisure. The Tees Barrage has allowed for development of international water sports. The Riverside Stadium and the David Lloyd centre have continued this theme. 28. In the long term the ambition is for a water frontage worthy of a major regional city. New developments and activities will complement development within the commercial centre and at the Middlehaven site. They will also form the basis for further improvements over the next two decades to make an urban core of city scale for the Tees Valley. 29. Gillespies have been appointed to develop the Stockton / Middlesbrough initiative and their work is on going. There is, however, considerable potential to consolidate the area between the two commercial centres for further recreational and leisure developments, which could be the foundation for some other forms of development.