The Provision of a new Innovation and Business Support Centre at Northbrook College

Transcription

1 7 th July 2015 Agenda Item 13 Ward: [Insert details] The Provision of a new Innovation and Business Support Centre at Northbrook College Report by the Director for the Economy 1.0 Summary 1.1 This report seeks authority to use s106 funding to deliver a new Innovation Hub within the new college buildings at Northbrook College, Broadwater Campus. The project is being delivered as a partnership between Adur and Worthing Chamber of Commerce and Northbrook College. The proposal would seek to convert existing cllege accommodation to provide space for up to 22 small businesses and business support staff. The report recommends providing a grant of 70,000 to the Chamber of Commerce to deliver the project. 2.0 Background 2.1 The re-development of the former Worthing College site in Bolsover Road was approved in May Permission was granted for 265 dwellings on the former College site which enabled the relocation of the College to the former Aviva site at Hillbarn Lane. To help compensate for the loss of employment the application for the Bolsover Road site included the provision of business starter units in one of the apartment blocks leading into the development (application AWDM/0363/11 refers). 2.2 The s106 agreement linked to the planning permission required either the provision of the small business centre or the payment of 150,000 to the Council towards a business hub in another part of the town or to fund business support. The Council had one year from the grant of the permission to decide whether to require the developers to build out the scheme or to pay the financial contribution. It was subsequently decided that the business centre was not ideally located and the management costs of running such a small business centre would mean that it was unlikely to be viable. It was resolved therefore that the Council would take the financial contribution set out in the agreement. 2.3 The payment of the financial contribution was linked to the conversion of the business centre to 4 flats and the payment had to be paid to the Council within 6 months following the grant of planning permission for the flats. Permission was granted for the conversion of the business centre to 4 flats last November and payment was due at the end of May The payment is now overdue but the housing developer has recently confirmed that the contribution will be paid in accordance with the s106 agreement.

2 2.4 Members will recall that some of this s106 contribution has already been committed to the development of an artists/creative hub at Colonnade House. A s106 contribution of 15,000 helped to secure 245,556 from the Coastal Community Fund (CCF) to renovate and convert Colonnade House to provide flexible workshop space above a retail unit available to sell artists work. This project is progressing and it is anticipated that the facility could open by the end of the year. 2.5 A previous attempt to set up a small enterprise hub in a vacant shop at Anne Street failed due to structural problems with the building and management issues. The scope to use the first floor of the Guildbourne Centre has also been considered but the accommodation would not provide the right environment to create an Innovation Hub even with significant investment in the building. 2.6 The need for incubator space and managed workspace to foster fledging businesses has been long recognised. Whilst, there has been plenty of vacant offices over recent years and relatively cheap serviced offices it has often been of poor quality. Catching the Wave identified the lack of managed workspace in Worthing and no business incubator space or Innovation Centre and a lack of grade A office accommodation. To address this issue Surfs Up commits to raise the skills base of the local workforce and provide the environment that embraces innovation and creativity amongst our entrepreneurs. To help meet this commitment it is proposed to develop innovation and enterprise centres at Northbrook College and Worthing College. 2.7 The new priorities published for the Adur and Worthing Business Partnership to help meet the LEPs strategy for growth identifies the need to: Increase the number of new business start-ups Improve the links between employers and education and, Encourage development of new business innovation including digital as part of the STEM agenda (STEM science, technology, engineering and mathematics). 3.0 Proposals 3.1 A business case has been submitted to the Council setting out the proposed partnership between the Chamber of Commerce and Northbrook College to manage a new centre for digital/media and creative businesses in the local area. This is an exciting project that would have considerable benefits in locating managed space within the new College campus. 3.2 The Business Case identifies that research into the demand for space included research with Chamber of Commerce members and also with a small pool of fast growing digital media businesses. The key concerns for businesses when looking for new premises were competitive rents, large capacity data connectivity, easy in and easy out terms and flexibility to expand. Other important considerations were location, good transport links and scope to cluster with other sector businesses in a hub development. 3.3 The proposed business hub at Bolsover Road was not considered to meet the above criteria and the ability to provide dedicated business support was unresolved. In contrast, the scope to use part of the new Northbrook College Campus at

3 Broadwater Road would provide for environmentally sound and purpose built accommodation ideal to provide flexible space with a number of on-site services and on-site business support. The College has excellent transport links and on site facilities would include a substantial cafeteria, a fully fitted and functioning gymnasium, on site security and access to additional training rooms and support. 3.4 The Business Case also identifies that the College and the Chamber have the capacity and expertise to support creativity, innovation and development amongst tenants and the wider digital cluster. Both the College and the Chamber are already engaged in a range of advice training, networking interventions and activities which has the potential to take this to a new level through the development of a broader innovation programme. It is submitted that the Centre has the potential to develop links with other hubs including leading digital sector entrepreneurs, major companies in adjacent sectors (broadcast media, telecommunications, information technology and others), venture capitalists and other investors and national networks of digital innovation. 3.5 The proposal would provide for approximately 22 flexible workspaces, a shared meeting room, refreshment facilities, and staff on-site to provide direct business support. The main reception would be serviced on a partnership basis and the hire of breakout rooms, meeting and training rooms would be charged as part of the College s letting policy. Attached to this report as Appendix I is the proposed office layout and an indication of the new ways of working for flexible office accommodation. 3.6 The Business Case sets out the anticipated costs for dedicated office or flexible workspace (ranging from 300 per month and 17 per day respectively). It is anticipated that the Innovation Hub would cover its running costs and have an operating profit within the first year. It is submitted that any profit would be reinvested into the project. Following the first pilot year it is anticipated that there would be additional commercial opportunities including printing options, postal services and the development of business support packages. It is anticipated that the College and Chamber would enter into a co-operation agreement and a binding contract for 5 years with a break clause at the end of year To delver the Project Worthing Borough Council has been requested to provide grant funding of 70,000 towards the fit out of the Innovation Hub which would include furniture, IT, telephony and partitioning. The Chamber has sought to source local companies who have delivered similar projects and have the necessary experience and expertise to provide a high quality office environment. A summary of the costs are attached as Appendix II. If the Project is unsuccessful the furniture, partitioning and IT equipment could be re-used. 3.8 Discussions are ongoing with the College to look at the scope to extend the Innovation Hub if successful on site and there are clearly opportunities for apprenticeships and strong links between the College and the Innovation Hub.

4 4.0 Legal 4.1 The Council has the power under Section 1 of the Localism Act 2011 to do anything an individual may generally do including the ability to provide grants, such as that proposed in the report. 4.2 Procurement legislation, primarily provided for in the Public Contracts Regulations 2015, applies to public contracts, but may also apply to grants, in some circumstances. 4.3 To ensure the Council is not in breach of procurement legislation the grant conditions will provide obligation only to use the grant for specified purposes and an obligation for the grant to be repaid if it is misused. 4.4 The Local Authority Standing Order Regulations and the Council s Constitution provides for the determination of the spend of Section 106 money to be an Executive function and therefore in the remit of. 5.0 Financial implications 5.1 There are no significant financial implications in relation to this proposal. Grant conditions can ensure that the funding is only used for the delivery of this project and the site and use of business support from the College and Chamber would appear to deliver a sustainable project. 6.0 Conclusion 6.1 This is an exciting project that would meet a clear demand for new managed workspace for creative/digital and media businesses. The proposal would meet a number of the priorities set out in Catching the Wave, Surfs Up and the LEP s Strategic Economic Plan. The proposal would be an effective partnership between the Chamber and Northbrook College and help to ensure a sustainable project with dedicated on site services and support for fledgling businesses. 7.0 Recommendation 7.1 The Committee is requested to support this project and agree to a grant of 70,000 from s106 funding to facilitate the provision of an Innovation Hub at Northbrook College. Local Government Act 1972 Background Papers: Strategic Economic Plan (SEP) 2014 Business Case for the Provision of a Innovation Hub at Northbrook College. Catching the Wave Contact Officer: James Appleton, Head of Economic Growth Portland House james.appleton@adur-worthing.gov.uk

5 APPENDIX I Proposed Layout for Worthing Innovation Hub

6 APPENDIX II Estimate of Fit out costs for Innovation and Business Hub

7 Schedule of Other Matters 1.0 Council Priority 1.1 Supporting and improving local economy. 2.0 Specific Action Plans 2.1 Promote and support projects and ideas that attract new and retain existing businesses and generate investment in the area. 3.0 Sustainability Issues 3.1 Matter considered and no issues identified. 4.0 Equality Issues 4.1 Matter considered and no issues identified. 5.0 Community Safety Issues (Section 17) 5.1 Matter considered and no issues identified. 6.0 Human Rights Issues 6.1 Matter considered and no issues identified. 7.0 Reputation 7.1 The proposal would enhance the Council s reputation supporting new businesses. 8.0 Consultations 8.1 Internal consultation with the Council s Leadership Team. 9.0 Risk Assessment 9.1 Matter considered and no issues identified Health & Safety Issues 10.1 Matter considered and no issues identified Procurement Strategy 11.1 Matter considered and no issues identified Partnership Working 12.1 Proposal would support a local partnership between the Chamber of Commerce and Northbrook College.