Restarting regeneration
Published: 26 June, 2009
The All Party Urban Development Group is receiving submissions now for its inquiry entitled Regeneration and the Recession: Unlocking the Money and it expects to publish its conclusions in July this year.
Among those to have made submission is the BCSC, which has highlighted the importance of collaborative working between the private and public sectors in order to stimulate and maintain future investment in the regeneration of the UK’s towns and cities.
The BCSC response was co-ordinated by Charles Miller, head of in-town retail at King Sturge. “The lack of finance has completely destabilised the development pipeline,” he said. “Schemes like Newport, Oxford and Bradford have come to a stop.”
He said: “The BCSC is trying to forge a new development model that will allow the industry to continue to deliver regeneration, not just in the prime locations but also in the underserved markets.”
And he warned: “It’s not about long-term fixes: we need short-term solutions now. We can’t afford a six- or seven-year hiatus in development because retailers’ requirements are changing. Without the supply of new space they will find themselves trapped in inefficient space.”
In its written response, the BCSC emphasised how crucial the role of the public sector has and will become. It will increasingly need to play a more assertive role in regeneration – bringing a combination of skills including promoter, master planner, facilitator and part funder.
However, Miller acknowledged that there were question marks over local authorities’ ability to take on such a varied and challenging role. “Every local authority needs a champion who understands the dynamics of regeneration,” he said.
BCSC has identified a number of areas it sees as essential to ensuring that the pace of regeneration is effectively maintained during the recession and to take advantage of the upturn when it eventually comes. These include:
• A pragmatic approach to structuring and agreeing Section 106 Agreements
• Consideration of rates holidays on new developments to recognise the challenges in the delivery of complex mixed-use development schemes which may not be 100 per cent pre-let on opening
• Greater clarity within the procurement process to make the selection of a development partner more cost efficient. The Roanne judgment has created significant uncertainty and action is now urgently required by government to provide the clarity and consistency that both the public and private sector are seeking
• Active exploration and promotion of the potential for new finance regimes, such as Tax Incremental Financing and a new generation of Local Asset Backed Vehicles, to help accelerate regeneration. Enabling these funding mechanisms will require close dialogue between the private sector, national and local government, and the devolution of power to local level to deliver successfully.
BCSC executive director Edward Cooke summed up the organisation’s approach: “There is no silver bullet for funding development in the current climate,” he said. “No clear model is fit for all purposes - each opportunity is different and different models will suit different needs.
“However, the fundamentals must be in place – strong partnerships, local leadership and experienced professionals – to support a solution that is straightforward and effective in its delivery mechanism. We will continue to work closely with government, other agencies and industry bodies to explore and develop these options.”
