NORTH WEST DEVELOPMENT AGENCY Case study 1: Marketing the North West Key message: The NWDA has identified the need to improve people’s perception of the region, to make it a place, people want to live and work. It has taken the lead in developing activities to change and promote a positive image. Objectives: To improve the perception and understanding of the region amongst potential visitors, investors and opinion formers. Outputs: The establishment of The Regional Marketing Forum to lead the promoting of the region and change perceptions through the establishment of a coordinated strategy to improve the image of the region delivered sub regionally and regionally. Strategic Added Value Leadership & catalyst: In 2001 the NWDA commissioned MORI to undertake tracking research to assess perceptions of the region amongst the general public, business leaders and opinion formers outside of the region. The results showed predominately negative perceptions of the Northwest and its key places dominated by associations with industrial decline, unemployment and a poor quality of life. It was clear that these associations were deep rooted but not necessarily based on factual knowledge. The research showed a significant gap between the experiences of those people living and working in the region, and the views of people outside of the region, particularly in London and the SE. Once the Agency had identified this issue it lead in developing a series of programmes to bridge this perception gap and to promote the region’s key “assets” and highlight its specific strengths. This included generating positive press coverage for the region’s key business sectors, developing a number of campaigns that promote unique aspects of the region’s offer including contemporary culture, England’s Golf Coast, the Natural Environment of the region and attracting and developing international major events that enhance a sense of place. Strategic influence and engagement: To gain consensus on the priorities for improving the region’s image (and those key places within it) the Agency formed a Regional Marketing Forum (RMF) bringing together senior communications professionals from the main public and private sector organisations in the region and sub-regions. The RMF is delivering collaborative marketing and communications programmes and has members including: Arts Council NW, CBI, English Heritage and Cumbria Tourism. In addition, developed through the Agency, the region was the first in England to have its own distinct major events strategy. This Strategy was developed through the Agency to build upon best practice from the 2002 Commonwealth Games. Using the Impact of the Commonwealth Study which demonstrated the impacts of the Commonwealth Games the Agency identified a strategy to both attract international events that build on the distinctive strengths of key places (Manchester/Sport, Liverpool/Culture) and maximise the contribution of existing events with the opportunity to grow (e.g. Grand National). The strategy was also informed by other international outlying states that had successfully developed international events, for example the State of Victoria in Australia. The Northwest has a diverse range of places - major cities inc. Manchester and Liverpool, rural areas including the Lake District and Cheshire, and other distinct places including Chester and Blackpool. Negative and outdated perceptions affected
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a variety of partners from the private and public sector who were all individually promoting parts of the region in an uncoordinated and sometimes competing way. Leverage: NWDA leverage has been instrumental in developing and attracting international sporting, cultural and business events. Examples include: •
Liverpool Biennial - Now the country’s largest festival of contemporary visual art (second largest in the world). Agency intervention has helped grow visitor numbers from 100,000 in 2001 to 400,000 in 2006 when the festival generated an economic impact of £13M. This levered in £2m in additional funding. The Agency has also used its influence and expertise to secure permanent residency for the famous 2006 installation by Anthony Gormley, Another Place, which without Agency support would have been removed from the region.
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Liverpool European Capital of Culture 08 - The Agency has played a pivotal role in first securing the title for Liverpool (by showing the bid was supported by the entire region including brokering an endorsement by Manchester), then bringing other parts of the region together to develop their own specific themes to link into Liverpool 08. The total economic benefit of 08 amounted to £800 million, with over 15 million cultural visits. The Agency’s leadership played a vital role in this, and was also influential in helping to bring the Turner Prize to Liverpool (the first time it has been held outside of London) which generated an economic impact of £1.3M. In Manchester the Agency was a key partner in the FINA World Swimming Championship which had an economic impact of £5.5M (leverage £3.9M).
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The Aintree Grand National – The Agency has supported the development of the world famous race to improve its international reach and economic impact. The Agency has invested in both marketing support and infrastructure development which has seen visitor numbers rise by 44% since 2001 to 150,000 in 2008. The economic impact of this to the Merseyside economy is now £41M pa.
Synergy: The role of the Agency has been to help partners particularly Local Authorities to develop strategies for bidding for and holding major events. In areas such as Manchester this has been to assist in the bidding and lobbying process and provide some funding, in others with more limited capacity it has been helping to assess event options and how to put a winning bid together. The Agency also provides a strategic function by pooling expertise – for instance the region has a Business Conference Bidding Unit based in Visit Manchester which bids for events for venues across the region – and has facilitated joint bidding for events between the Liverpool and Manchester. Quote: Sir Bob Scott, Chairman of Liverpool’s Bid Team said "The NWDA were instrumental in ensuring Liverpool's bid for European Capital of Culture had the backing of the entire region and this support was a key part of the bid. As well as playing a major role in helping to deliver the 08 year they have ensured the year has benefit to the entire region rather than just Merseyside".
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NORTH WEST DEVELOPMENT AGENCY Case study 2: Daresbury Science and Innovation Campus Key message: This case study illustrates the role NWDA has played in bringing together the knowledge base (both public and private sector) to improve business performance. Specifically, it focuses on connecting academic sources of knowledge (e.g. Universities and Research Centres) with SMEs. Objectives: To establish Daresbury Science and Innovation Campus (DSIC) as a major international science and innovation hub. Innovation is widely recognised by economists, businesses and Governments as a key catalyst for growing economic productivity, driving enterprise by creating new products and markets, improving efficiency which in turn delivers benefits to firms, customers and society in general. The objective is to put DSIC at the heart of this in the region. Outputs: Development of a 250 acre site which includes the Innovation Centre and the Cockcroft Institute. In the 3 years since the establishment of DSIC, 75 companies have moved in, employing over 220 people and generating more than £10M in sales. It is now effectively full and 10 of the companies will move and expand into the growon space. More than half of the companies in the Centre have formal research links to the Science and Technology Facilities Council (STFC) research facilities and more than 20 formal collaborative agreements have been signed. Average growth rates are around 30% per annum and investors have been attracted to the Centre not only from the NW but from Cambridge, other parts of the UK and overseas. Strategic Added Value Leadership & catalyst: In 2001, the loss of the large DIAMOND project worth £600M to another English site left the future of Daresbury in doubt. Recognising the significance of this to the regional science and innovation community, NWDA stepped in to make what would eventually total a £50M investment on site, aiming to establish it as a major international science and innovation campus and inspire support from partners. This investment supported two major projects at the Science Park, the Innovation Centre and the Cockcroft Institute. The Innovation Centre is an NWDA owned and operated Incubator/Innovation Centre for high-tech early stage and start up SMEs. The Cockcroft Institute is the National Institute for Accelerator Science. In both cases it was critical that mechanisms existed to enable knowledge transfer between partners. The market, typically, fails to do much of this as the shortterm agenda of partners precludes collaboration and in the initial stages at least, risk appears too high. Without this intervention it was believed that through positive externalities businesses would fear further fear investment in innovation at Daresbury. As they run the risk of ‘spill over’ effects e.g. innovative processes and staff training enhancements may be lost to competitors as they offer greater remuneration packages, similarly, information asymmetry failures would mean investors would not recognise the potential that resides within Daresbury Science Park. It is for these reasons support was agreed. Strategic Influence: Of all the potential public sector partners, there was no incentive for the STFC or others to invest in the site after the loss of DIAMOND. The most likely scenario would have been closure. By demonstrating both the economic and scientific benefits, the NWDA and partners managed to put Daresbury on a sound economic footing.
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The resulting influx of investing companies will provide the critical mass to drive the STFC knowledge transfer agenda. Continued private sector investment will promote further confidence and create the conditions where further major science facility investment will follow. Engagement: The NWDA support inspired the STFC and key regional partners who possessed a strategic interest in Daresbury - Halton Borough Council and the Universities of Manchester, Liverpool and Lancaster to set up a Business Development Company. The company has developed the 250 acre site, bringing in private sector firms and funding. NWDA involvement was critical to bringing the partners together as an “honest broker” despite their sometimes conflicting priorities. Daresbury is a strategic regional site and as a result of this intervention has been designated as a national science and innovation campus – one of only two. This has put it in a strong position for further national science investment and it has been recognised by HMT in Budget as second centre for science investment in the UK. Leverage and Synergy: NWDA’s investment and leadership focusing on how to support the new Northwest Science Strategy through Daresbury has led to the pooling of significant strategic knowledge and clout most notably through the captured commitment of partners at senior level for example Chief Executives and University Vice-Chancellor. A Masterplan for full development of the site has been developed which will require up to £600M of private funding and a way forward agreed by all partners to raise this funding over 20 years. The first tranche of this has just been announced - £20M to build grow-on space for SMEs. By creating an intensive network on site and actively introducing companies to potential partners, NWDA has created the position where now more than 40 companies have active collaborations. Now, most companies coming to the DIC believe the links to the laboratory and other SMEs on site to be crucial. NWDA was critical in the winning of Cockcroft Institute bid, not only through the cash investment, but in creating the site at Daresbury where 3 Universities could collaborate off campus – a unique location.
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NORTH WEST DEVELOPMENT AGENCY Case study 3: Growing the visitor economy Key message: To support growth in the visitor economy through a strategic approach that includes the creation and direction of effective regional and subregional support structures. Objectives: Overarching strategic objective of raising the quality of the tourism experience available to visitors to the region both in terms of the various ‘products’ that make up a tourism visit, and importantly, the quality of service. Outputs: The creation and direction of an effective regional and sub-regional Tourism support structure able to deliver the actions outlined in the Northwest Tourism Strategy. Strategic Added Value Leadership & catalyst: The Agency has the strategic responsibility for tourism in the Northwest. The immediate priority for the Agency was to implement changes to the old support structure to create effective delivery partners. In June 2003, the Agency published the Northwest Tourism Strategy and led the process of structural change that followed. This involved the removal of the uncoordinated, fragmented and duplicative structure and its replacement with five sub-regional tourist boards, which are the Agency’s delivery partners for tourism in the region. Strategic Influence: The development of the Northwest Tourism Strategy by the Agency has been supported by subsequent strategies produced by the individual tourist boards, a Strategic Marketing Framework and a Strategy for Major Events. In addition, the Business Tourism Framework and Visitor Information Framework add depth to the tourism strategy, whilst the Sustainable Tourism Framework provides a sound foundation for all marketing and development outlined in the main strategy. The Northwest Tourism Strategy identified 9 programme areas on which to focus: 1 The ‘Star Brand’ Approach – a market facing approach to the development of the region and its tourism destinations, using ‘attack’ and ‘slipstream’ branding; 2 Winning Themes - a thematic approach to marketing; 3 Signature Projects – major projects that will have a significant impact on the region’s tourism performance; 4 Regional Gems - tourism assets that achieve iconic status by virtue of their excellence, thereby contributing to the appeal of the region as a destination; 5 Excellent Events – a range of co-ordinated and sustainable events of national and international significance across the region; 6 A Region for Business – to make the Northwest the premier English region for business tourism outside London; 7 Celebrating and Growing Excellence - excellence in skills, quality, innovation, business practice and performance, to establish benchmarks for the sector to attain; 8 Making It Easy - to provide easy access to the region’s tourism products, and; 9 Intelligence Led – a high-quality evidence base for all decisions about tourism investment and from which to measure performance. This has led to the co-ordinated and consistent investment in strategic objectives across the region, by regional partners and delivery agents including non-Agency funding streams and private sector investment. Leverage: The structural changes have dramatically improved connections with business as measured by Tourist Board membership rates (Cumbria already had, and continues to have a large number of members); excluding Cumbria, membership has increased approximately three fold. This in turn has generated significant
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additional private and other public sector investment to match the core funding provided by the Agency. Synergy: The revised Tourism Strategy and series of linked frameworks has created a new language and structure of destination management. There are annually updated destination management plans; the region uses the term visitor economy as a place focused concept distinct from but aligned with the person centred concept of tourism, and; there have been significant investments made in regional tourism intelligence. A new Tourism Research Strategy supported by partners ensures that there is a strong evidence base for all of the actions outlined in the Strategy for Tourism, which is shared and bought into by partners. Engagement: This destination management planning approach promoted alignment between local and sub-regional planning and with wider sub-regional economic priorities. Working with the Best Practice Forum, the Agency has actively supported a regional profit through productivity programme, as well as other initiatives to strengthen the leadership and management capacity of tourism businesses. Quotes: The following quotes are from stakeholders spoken to as part of a wide ranging survey of tourism businesses and Tourist Board stakeholders undertaken across the region in spring 2008 and from separate consultations undertaken as part of a formal evaluation of the NWDA’s investments in tourism. • • • • •
‘Responding well; huge job; requires time and energy to keep on pushing’ ‘The new structure does more than NWTB used to do. It has clout, funding and a role. There are strong partnerships in region. It has helped to fuel ambitions.’ ‘There has been a drive to stop local authorities doing their own vanity projects and pulling them in a strategic direction.’ ‘The NWDA has created a climate by packaging the region. They have filled the gaps that the private sector wouldn’t have filled. They have allowed the visitor offer to be brought to the fore.’ ‘The NWDA investment has caused the public and private sectors to invest more in skills and public realm improvements. They have been a catalyst for our own investment’
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NORTH WEST DEVELOPMENT AGENCY Case study 4: The Northern Way Key message: Established in 2005 by the 3 Northern RDAs, the Northern Way is a unique collaboration to promote the economic development of the North. The Northern Way Growth Strategy brought together 10 investment priorities agreed by stakeholders across the North. Implementation has actively engaged city regions, business, academia, local and national government, to align activities, promote collaboration and shape policy; improving the impact of both policy and delivery at a pan-regional level. Objectives: To raise the economic prosperity of the North to that of more prosperous regions. Outputs: To date, there have been a range of Strategic Added Value outputs in key investment priority areas including: • • • •
agreement of key transport priorities amongst northern stakeholders from all sectors and successful engagement with central government to begin to secure delivery of key projects shaping of strategic thinking about economic development approaches at local level, securing recognition of functional economic areas and stimulating collaboration to produce city-region development plans in the 8 city regions translating experience and learning about successful approaches to regional economic development into government policy, expressed through the subnational review levering active engagement of key stakeholders in key workstreams – for example co-ordinating long term workstreams on key pan-regional priorities of innovation, private investment and transport
Strategic Added Value Leadership & catalyst: The Growth Strategy provided a catalytic mechanism to an agreed strategy across 10 investment priorities – bringing together public sector stakeholders with business to work on implementation. This partnership was embedded within the governance of the Northern Way and has enabled effective coordination and shared delivery. Alongside formal structures, partnership has been expressed through informal structures leading and supporting key workstreams. The partnership has survived the end of the original funding, with a further programme now agreed, providing pannorthern leadership in three key areas: transport, innovation and private sector investment. These will be supported by new crosscutting activity, including development of the evidence base about the Northern Economy through a research framework established in consultation with all stakeholders. Strategic Influence: Specific areas where the Northern Way has been able to engage partners and share objectives include: •
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Work to develop the Strategic Direction for Transport and Short and Long Term Priorities completed in 2007, which brought together key transport stakeholders into the Transport Compact and secured agreement from across the North for the transport interventions required. The Innovation Programme, which has brought together agencies with both research excellence and industrial capacity and funding the N8 Group - the 8
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research-intensive universities of the North to integrate their capacity in areas such as molecular engineering and regenerative medicine. Creation of the Private Investment Commission, to report in 2009, enabling private sector partners to identify barriers to greater investment into the north and create recommendations to influence policy and strategy. These will be translated into influencing actions targeting government, industry and the regions. Evolution of the City Region concept, translating the recognition of functional economic areas into a distinctive approach to spatial economic development in the 8 northern city regions. City-region development plans were agreed by 2007. This is an ongoing priority, with the City-Regions Forum providing a mechanism for their collaboration; sharing practice, expertise and encouraging progress. The Worklessness pilots, invested in 10 pilot programmes across the North, testing localised approaches to delivery of welfare-to-work support, enabling collaboration between RDAs with JobcentrePlus, Local Authorities, Learning and Skills Councils, Primary Care Trusts and the Department for Work and Pensions.
In all these issues the added value of the Northern Way has been to facilitate Northern collaboration to tackle real economic issues across the North which otherwise would not have been tackled as effectively. Leverage: Significant national engagement has been levered, mobilising resources and influencing policy. For example, Northern Way evidence about the impact of congestion around the Manchester Rail Hub on journeys across the North, and for the UK as a whole, led DfT to instigate a Network Rail feasibility study which will ultimately recommend how to solve the problems of the Northern Way Hub. Synergy: The formal and informal structures of the Northern Way – some of which are organised to support key workstreams, and others, such as the Research Forum, which are cross-cutting, bring together policy and practice across organisations, and facilitate dissemination and co-ordination across fields. Looking forward evidence from all of these workstreams is being brought together through the research and policy programme. A major symposia during the 2008-2011 programme will maximise the influence and impact of research findings and policy outcomes. Engagement: Resources are deployed by the 3 RDAs through a unique collaborative mechanism, securing added-value across regional boundaries. The Steering Group brings together city leaders, RDA chairs with business, academia and national government. Quotes: “I’d like to thank The Northern Way for the work they have done to improve transport prioritisation in the area… We have listened closely to the Northern Way and their objective and evidence-driven approach has already made a difference.” Rt Hon. Rosie Winterton MP, Minister of State for Transport. “Given its unique position, the Northern Way can influence national policy and attempt bold experiments” OECD Government has recognised the influence of the Northern Way in the Sub-National Review of Economic Development and Regeneration (HMT, BERR, CLG), Innovation Nation (DIUS) and Towards a Sustainable Transport System (DfT).
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NORTH WEST DEVELOPMENT AGENCY Case study 5: Ancoats Regeneration Programme Key message: The Ancoats Urban Village is one of the largest funded initiatives by NWDA, which will achieve true regeneration evidenced by significant outputs and huge leverage. Without NWDA strategic leadership and intervention, this would not have happened. Objectives: The initiative is founded upon seven objectives, these being: (i) bringing vacant buildings with heritage value back into use; (ii) creating new live/ work opportunities; (iii) creating a range of housing types and tenures; (iv) creating a community focus; (v) improving safety; (vi) attracting visitors; and (vii) creating a new City Quarter. Outputs: The project will deliver significant outputs, including: 1,800 new residential properties; 50,000 square metres of new commercial floor space; 1,600 new jobs accommodated; 8 hectares of brown field land being transformed; and £332M private sector leverage. In the 2008 Interim Evaluation, URS reported that the project is making ‘good progress against outputs and demonstrates good additionality’ Strategic Added Value Leadership & catalyst: NWDA led the innovative use of CPO, setting the agenda for the area. The most relevant CPO powers for urban redevelopment and regeneration schemes are found in Section 226 of the Town and Country Planning Act 1990, and section 20 of the RDAs Act 1998. However, Local Authorities can not pursue their CPO powers unless and until detailed planning permission is in place – something which was not an option at the outset of the Ancoats Regeneration Initiative, given the need to treat 197 vastly differing plots (some comprising Grade II* listed buildings). The NWDA, put together the framework, and application for the process, consequently the project would not have happened without the RDA using its more flexible powers. Strategic Influence: Delivered in partnership with public partners including New East Manchester, Ancoats Building Preservation Trust (now Heritage Works), English Heritage, Manchester City Council and private sector representatives. NWDA provided, through leading and co-ordinating the investment decisions and planning of key local partners, the required level of certainty about investment opportunity for land holders/developers to enable them to share some of the risk in investment. NWDA also enabled the saving of historic buildings by English Heritage (Murrays/ St Peters), through highlighting the benefits of retaining these buildings, and securing their future through contracts, which costs and perceived returns may have prevented. Through awareness raising and public support assisted in the listing of Ancoats for World Heritage Site status by UNESCO. Through NWDA assessment, research into and identification of opportunity, Manchester City Council can now look to promote creative industries and small scale media companies on the back of the areas ‘guaranteed’ future. Leverage: £332M private sector leverage will be achieved, alongside £24M other public sector funding. The relatively small amount of funding, with which the RDA has taken the initial pioneer risk investment, has enabled developers and investors to take the additional risk. Evidence from the recent evaluation of Ancoats states that
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for every £1 of NWDA expenditure, a further £3 was generated from other public and private sources. If the project achieves all outstanding potential investment from partners the ratio will be £1 to £4.70, which is considered to be high when compared with, for example, English Heritage average benchmark for similar initiatives is £4.60. Engagement and Synergy: Ancoats is a ‘Tripartite Strategy’ brought together by the NWDA, comprising three elements from three separate partners which combine to ensure a comprehensive regeneration package i.e. (i) Supplementary Planning Guidance (Manchester City Council), (ii) Public Realm Works (NEM URC) and (iii) the underpinning CPO and Gap Funding for developments (NWDA). Each strand has shared objectives and impacts, a co-ordinated approach to share expertise and skills across the partnership, creating an integrated intervention framework. No single partner could have delivered this activity due to the size, complexity and individual organisation remits. All stakeholders remain firmly engaged through regular Project Team meetings and Board meetings, generated by the NWDA. In addition, key stakeholders alongside community representation will help form the Board of a new Ancoats Management Company (ManCo) that will take receipt of all of the freeholds for the area and be responsible for the long term sustainable stewardship of Ancoats (enforcing covenants, monitoring CCTV, managing open space etc) - ManCo Business Plan prepared Spring 2008. Quote: “An outstanding project in an outstanding location” – Waterways Trust and British Urban Regeneration Association 2006.”
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NORTH WEST DEVELOPMENT AGENCY Case study 6: St Paul’s Square Key message: This Case Study demonstrates how the NWDA’s skills and expertise, funding offer and leadership role has catalysed commercial development in Liverpool City Centre and made a profit for the public sector. Objectives: This project sought to unlock and kick start commercial development in the City Centre, with the public sector offering gap funding to make speculative development viable for the developer Outputs: Total cost £98.79m, with private sector leverage £83m, 1.38 ha brownfield land remediated, 270,000 sq ft business space created and 2,000 jobs estimated. The development has led to a step change in the commercial office market in Liverpool City Centre. It is now envisaged that over 2,000 jobs will be created on the site, with record rentals of £22 per sq ft achieved. As well as ensuring the delivery of these benefits, the NWDA was able to commercially structure its intervention in a manner which actually netted the Agency a £1.8m surplus for re-investment from the development. The project created a new commercial business centre consisting of 270,000 sq ft of Grade A office space, 50 apartments, retail space, a new multi storey car park and a public square. Strategic Added Value Leadership and catalytic behaviour and the subsequent leverage: By making the initial land acquisition and catalysing the development through the robust use of its unique CPO powers, the threat of and initial proceedings of which, enabled the developer to assemble the required site through negotiation. Low rents (which initially make development costs cheaper; low rents once capitalised make the gap), of £14/15 per square feet at that time made it unviable for developers to progress office schemes on a speculative basis, without the guarantee of a pre-let to an end user. The action ultimately paved the way for the project to secure the leverage of £83m private investment funds. This led to a £6.3m total commitment of financial support from the NWDA. An innovative appraisal by the NWDA Development team ensured that should a major anchor tenant be subsequently secured for the development, the Agency could recoup all investment and future overage. Strategic Influence: Working closely with Liverpool Vision, the Urban Regeneration Company, the Commercial District which includes St Paul’s Square, was identified as a Priority Action Area in Liverpool Vision’s Strategic Regeneration Framework. This status was granted by NWDA lobbying on the basis of a recognised lack of high quality Grade ‘A’ office accommodation in the city centre, which was restricting the city’s ability to attract new private sector investment. Partner involvement has been extensive English Partnership, Legal & General, Muse Developments and AMEC. The strength of the development enabled EP to put funding into the Special Purpose Vehicle and Hill Dickinson, the anchor tenant, also became a partner as the development went from speculative to bespoke. Synergy: As headline rents were achieved, NWDA shared this information with our agents Keppie Massie, and the figure is used as a benchmark in future applications, this information and intelligence sharing about possible rents is enhancing further project development.
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Engagement: The development was taken forward via a public private partnership consisting of English Cities Fund (JV between English Partnerships, Legal & General & AMEC), Liverpool Vision (URC and facilitating body), Government Office North West (Funder) and the NWDA (CPO, land assembly, appraiser, funder). The commitment of NWDA support bridged the cost/value gap in the development. This reduced the risk exposure to ECF thus providing ECF with the necessary confidence to commence the office development on a speculative basis. The later commitment of Hill Dickinson & HBOS to lease the office space strengthened the yield eliminating market failure. The NWDA established a steering group at the outset and this met monthly. It drove progress at the beginning. Now this is run by Liverpool Vision. We use the steering group mechanism with all new projects now. Quote: “ST Paul’s development ‘as good as anything in London” Headline Liverpool Daily Post 13.06.08 NORTH WEST DEVELOPMENT AGENCY Case study 7: Barrow Waterfront Key message: This Case Study demonstrates how the NWDA has utilised the skills and expertise gained from projects elsewhere in the region to positive effect in an area with low development capacity and with limited experience. Objectives: To provide high value quality business accommodation Outputs: Waterfront Business Park is a 23 Ha vacant and derelict site aimed at provided high value quality business accommodation. Public sector funding from NWDA has been sought towards a first phase of land purchase, road infrastructure and land remediation to prepare the site for development by the Private Sector. Strategic Added Value Leadership & catalyst: The Barrow Waterfront Business Park, promoted by West Lakes URC (WLR) and Barrow Borough Council, is a "transformational step change" project forming part of a comprehensive regeneration initiative in Barrow in Furness. The initiative's rationale is to address significant job losses and downturn in the local economy in the 1990's as a result of major losses in the shipbuilding industry, in particular the defence sector. Local partners delivering the proposals suffer from a lack of experience/capacity in large scale and complex physical development. A member of the Agency’s Development Team, playing a pro-active part on the Project Steering Group, and drawing on specific experience of a similar project in East Manchester, has influenced and directed the project team towards early engagement of a private sector partner to lead and to deliver the project through the most appropriate procurement strategy, thereby minimising public sector financial and risk exposure. This approach is essentially a “sea-change” to the procurement routes used by the public partners in Cumbria in the past which were predominantly “public sector led” with large calls on the public sector purse. Strategic Influence and engagement: The planned private sector development procurement route proposed by WLR and the Local Authority was to market individual plots to end users/developers and grant individual leaseholds/freeholds. This principle mirrors methods adopted by the Local Authority in the past on Furness Business Park and a number of other smaller sites. The results would have been limited with mixed design quality standards, piecemeal or inappropriate development
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and low quality landscape maintenance, had NWDA not become involved. Working as part of a Steering Group, stakeholder Partners were clear on their roles and responsibilities with constant review of progress by each and input on best practice throughout the project development Leverage: Early single developer engagement, through the insistence of the NWDA, has attracted interest from major national developers. Recent downturn in the economy has raised some doubt in the minds of short-listed partners and the Agency has taken a pro-active lead to re-engage their interest. This is proving successful given the Agency’s commitment and support which is recognised, given its profile in the North West, as a confidence boost to the private sector Synergy: The NWDA, in granting approval for the initial site preparation works, insisted upon significant changes to this procurement strategy, based upon experience elsewhere in the region. NWDA have put into place a number of requirements on WLR to steer them down a more commercially sound approach as follows; • • • •
Limiting the funding of upfront site preparation works avoiding committing public resources too early. Early single developer engagement through the support of the NWDA which has attracted enough interest to national developers. Seeking early developer advice on the suitability of master planning of early phases and thoughts on future phase infrastructure layout and plot deliverability. Releasing funding on future phases of development based upon firm market led evidence of demand and minimise public sector expenditure by sharing risk with the private sector.
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NORTH WEST DEVELOPMENT AGENCY Case study 8: Investing in Higher Education University of Cumbria: The University of Cumbria represents a bold and aspirational response to the deep-felt sense of need for a University of Cumbria to address the social, demographic and economic circumstances and provide the same life chances and opportunities as those living in other parts of the region and the UK. It forms a fundamental part of the redevelopment and regeneration of Cumbria, and will make a major contribution to the retention and attraction of talented people to Cumbria. These reasons were identified by the NWDA within the context of evidence development on priorities for action within the region, and this acted as the stimulus for partners to come together to build a university which would make a transformational contribution to the lives and places in Cumbria. The NWDA Chairman created a high level Steering Group to drive the project - this included the local MP and private sector players. The NWDA has provided leadership to ensure that the University recognises it market and it contribution to the wider economic and social context of Cumbria; The NWDA has increased the University’s confidence to be transformational and provide real impact, particularly through the presence in Carlisle, Penrith and Lancaster; as a consequence, the estates plan does not stand in isolation, but is fully underpinning the academic vision and direction of the University. Strategic Added Value Project Unity: The support provided through the NWDA has enabled the University to draw down funding from other sources such as OST and HEFCE, as well as providing the capacity to focus its own resources on the development of its outreach activity. Project Unity has therefore provided the mechanism for strengthening the strategic relationship not only between the NWDA and the University of Manchester, but also between the NWDA and the HEFCE and the OST. Since the merger the University has continued to develop strong research collaborations through the strengthening existing research groups and the establishment of new groups. In some cases this has led on to a presence in national / international networks. The consultations revealed that Project Unity has enabled the University to focus its activity on activities that contribute specifically to regional economic development – in particular through technology and knowledge transfer activity being delivered through UMIP and UMIC. HE/FE in Burnley: Burnley has been reliant on traditional manufacturing, low paid, low value activity, and activity which is also contracting. The NWDA has strategically influenced the need to provide skills to attract new companies and help them move up the value chain. Through its provision of advice on enterprise, skills, inward investment and sector development, the vision to link skills with business requirements becomes a reality. University of Cumbria: The University cannot operate from a single location in the county and, to ensure its offer is accessible through Cumbria, the University will operate a sophisticated delivery model which includes campuses to cater for traditional 3 year undergraduate courses, the estate and ICT connectivity to provide extensive programmes and placements and increasingly, co-located projects around the county designed to work closely with FE providers to provide specialist progression routes and the facilities to attract and meet the needs of both employers and workbased learners. NWDA, through their strategic influence and investment,
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have ensured that the development of the University of Cumbria has established an estate which is fit for purpose to serve the academic character of the University. Leverage: Project Unity: The delivery of Project Unity has involved the NWDA working in partnership with HEFCE and OST to contribute to a total of £285m costs of creating the new University, with a £35m contribution from NWDA. The external partners have bridged a funding gap in the universities’ own resources in return for the benefits of creating a world class research and learning institution in the region. Creation of such an institution has had, and will continue to have economic as well as academic benefits for the region. Project Unity is also beginning to deliver significant private sector leverage through the technology transfer activity of UMIP and UMIC. This is coming through third party investment into spin-outs, strategic ‘research’ alliances with large blue chip companies and licensing agreements. HE/FE in Burnley: The delivery of HE/FE campus in Burnley has involved NWDA working in partnership with LSC, HEFCE, UCLAN and Local Authorities. The total lifetime cost of the project is £72.5m with investment of nearly £10m from NWDA. It is geared to attract private sector investment onto the enterprise park. University of Cumbria: The delivery of the estates plan and investment of £36m in a total cost of £163m has involved NWDA working in partnership with FE, LSC, HEFCE and the Strategic Funders Forum. Significant build programmes are required at Carlisle, Penrith and Lancaster in order to provide facilities which allow for the design and delivery of provision aimed at transforming the county’s economic and educational profile. Synergy: Project Unity: Bringing together the two universities has created complementary course and research activity, cutting down on duplication and local competition, but it has maximised international competition. The NWDA’s role in bringing the two universities together was to ensure best use of resources and central services HE/FE in Burnley: The new campus has provided physical regeneration of a vacant site, and will attract companies onto the adjacent Enterprise Park. The campus integrates secondary school infrastructure, with FE and HE provision which supports the wider regeneration initiative in Burnley. The NWDA’s role has been to ensure implementation of this wider vision and linkage of education and skills to enterprise and business support. University of Cumbria: The NWDA has ensured a co-ordinated approach to support the capital infrastructure developments, skills and education rationale and economic growth needs. Engagement: Project Unity: HE/FE in Burnley: University of Cumbria: With all 3 projects, communication and clear articulation of vision has been vital to all stakeholders engaging effectively.
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