AncoatsAnnual Review 2009/10

Introduction The Ancoats Regeneration Programme Progress with the Compulsory Purchase Order (CPO) Development Progress Business Growth Business Engagement Engagement of Residents Public Realm Estate Management Safer Ancoats Attracting More Footfall The Year Ahead & Future Strategy Status of Developments – March 2010 Progress Against Outputs Progress Against Expenditure Conclusions

Contents 03 04 05 07 10 12 15 17 18 20 23 24 26 28 29 30

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Welcome to the fourth Annual Review about progress of the regeneration of Ancoats. This document charts the activity led by the Northwest Regional Development Agency (NWDA), regeneration company New East Manchester Ltd (NEM), and Manchester City Council between April 2009 and March 2010. The document provides the opportunity to reflect on some of the partnership’s key successes and outlines priorities for the year ahead.

It was noted in last year’s publication that 2009/10 would be a challenging year and so it proved to be, with the world in which we operate today being very different to the one when the vision for the regeneration of Ancoats was first set. Nevertheless, Ancoats continues to experience organic growth, supported by an underpinning Compulsory Purchase

Order, and there have been notable recent achievements upon which to reflect: the recommencement of the development of the £12M Ice Plant; the £1M fit out of 14 commercial units at Royal Mills; a record number of new business moving into the area; the establishment of new business and resident forums; and the holding of a major celebration event to mark the opening of the new award-winning Cutting Room Square.

In addition to this encouraging activity, the strong performance of Ancoats businesses in the East Manchester EnterPrize Awards, which recognises talented companies with strong growth potential, saw local companies occupy five of the six finalist places, further fuelling Ancoats reputation as an up and coming ‘hot bed of creative entrepreneurialism’.

Introduction

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What The Ancoats Urban Village Strategy aims to reverse 50 years of decline in the physical fabric of Ancoats, historically a thriving industrial quarter on the edge of Manchester City Centre, to create a sustainable mixed use extension of the city with a resident population of 3,000 to 5,000 people and a viable economy providing around 3,000 jobs within the 20 hectare site.

Where Ancoats is located north east of Manchester City Centre, being a 10 minutes walk from the retail and commercial core and the two principal rail stations of Piccadilly and Victoria. Ancoats lies at a gateway into the City Centre, at the junction of the A62, Oldham Rd and the inner ring road. The Rochdale Canal runs alongside.

Why In the 1990s the area was considered a ‘no go’ area for investment due to a perception that it was a derelict, threatening and intimidating place, and a place where vandalism, fly tipping and street crime flourished.

When The regeneration project was inherited by the NWDA from English Partnerships at the Agency’s inception in 1999. The Compulsory Purchase Order (CPO) was made in 2002. The NWDA’s investment in the project is to end in 2012.

How Ancoats is a three part strategy comprising interlinking elements:

(i) the implementation of quality design in the built environment via Supplementary Planning Guidance;

(ii) major investment in the public realm, underpinned by a public realm strategy; and

(iii) an underpinning CPO and gap funding for developments.

Who The project is being delivered by the NWDA and NEM with other key stakeholders including Manchester City Council, the Homes and Communities Agency, and English Heritage.

The Ancoats Regeneration Programme

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Key

Ancoats Urban Village

New East Manchester

Inner Relief Road

Canal / River

Railway Victoria Station

Piccadilly Station

Oldham Road

Ashton Canal

Corridor

Rochdale

Can

al

River Irwell

City Centre

Background to the CPO The Ancoats Compulsory Purchase Order (CPO), confirmed in September 2002, gave the NWDA the ability to acquire much of the land and property in Ancoats, enabling it to prescribe developments and timescales, as well as retain freeholds across the CPO area. The £43.5M CPO addressed the problems of land speculation and lack of confidence which were major contributors to the decline in the area. Its purpose was to either: bring forward development by owners, through legally-binding Implementation Agreements; or to acquire sites for disposal either to developers already involved in the area or on the open market. Following the acquisition of 197 individual plots under the CPO, 45 development plots have been defined, of which 22 have now been completed (or required no action).

During the 2009/10 financial year a further four outstanding compensation cases were settled at a cost of circa £0.9 million. Following detailed and lengthy discussions between former land owners and the Agency and its advisers, settlements were agreed for the following cases:

1. Junction of Loom Street & Sherratt Street (90% advance payment);

2. Hood Street;

3. New Little Mill; and

4. 64a Jersey Street (90% advance payment).

The Agency’s estimated outstanding compensation as at March 2010 was £0.9M.

As a result of final settlements, coupled with developments reaching completion of which compensation would have been liable to pay, the risk to the Agency of having to find £6.5M of compensation has now been removed.

In addition to the funding for the CPO, the Agency has committed other resources to the area, in particular circa £28M on seven projects: gap funding at Royal Mills (£9M) and the Ice Plant (£3M), match funding for Murray’s Mills (£5M) and a relocation package for Howarth Metals (£4M) all complemented by a programme of public realm works (£6M) and other (£1M). These investments by the Agency in turn levered further funds from both Lottery and European sources of circa £15M.

The table below shows progress made against settling compensation associated with the Ancoats CPO:

Progress with the Compulsory Purchase Order (CPO)

Compensation agreed and completed

Unknown owner

Action not yet appropriate

Expect settlement

Lack of response, may only resolve by starting Lands Tribunal procedure

Strong reasons for Land Tribunal action

Total

Act

ion

Typ

e

Number of Plots

168

15

4

3

1

6

197

CPO Compensation Progress

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Development Progress

Flint Glass Wharf Autumn 2009 saw the completion of the Flint Glass Wharf in Ancoats, comprising 136 apartments and penthouses, ranging from circa 45 to 180 sq m offering residents luxury canal side living with secure underground parking and the latest in contemporary styling. There are also a small number of commercial/retail units fronting Radium Street.

The majority of apartments overlook the Rochdale Canal with ground floor apartments having terraces directly to the canal bank. Large expanses of glass give views out over the canal to Sports City and the Pennine Hills. The penthouses have large outside spaces affording views over the conservation area and cityscape. The modern design of the two distinct blocks contrasts sharply with some of the world’s most historic industrial buildings and to the rear of the blocks is a private and secure landscaped courtyard for residents use.

Royal Mills Following a £1M fit out during 2009/10, ING has now launched its latest commercial offering at Royal Mills, of circa 2,200 sq m of high-quality refurbished office accommodation. The Grade II* converted mill (Sedgwick Mill) is a mixed-use development, which has been sympathetically restored to now include 14 unique office and retail spaces.

Utilising the famous Manchester redbrick and the distinctive mill layout, each unit has its own character with original features such as exposed brickwork, iron support pillars and beams and vaulted ceilings. The original shell units have been upgraded to provide a high standard specification, they benefit from fully finished floors, suspended lighting, heating, secure onsite parking and 24-hour security. There is an industrial theme running throughout the development which gives a modern and clean feel. The units are accessed via the stunning enclosed courtyard the central feature of which is the sloping glass atrium roof designed by award-winning architect Mike Franklin. Tim Mulholland, development director for ING Real Estate commented: “We have recognised the growing appetite from the creative and fashion sectors for unusual and quirky space combined with a quality finish that is priced competitively. To reflect this increasing demand for commercial space, we have secured a change of use for Royal Mill which will create a further 5,000 sq m of new office space. In addition to this we will also be repositioning Paragon Mill with an emphasis on commercial with a small residential element.

Ice Plant Once the beating heart of Italian Ancoats’ ice cream trade and later practice space to local musicians the Happy Mondays and Inspiral Carpets, the £12M transformation of one of the city’s historic gems recommenced on site during February 2010. Manchester developer northerngroup are redeveloping the warehouse, known as the Ice Plant in homage to the ice making factory that used to be next door.

Overlooking the new Cutting Room Square and the former St Peter’s Church, this mixed use scheme, which has received funding from the NWDA and Homes and Communities Agency (HCA), will offer 82 apartments, featuring designer kitchens and bathrooms. There will be five state-of-the-art penthouses including one with a sauna, five ground level retail/commercial units totaling 2,000 sq m and underground car parking. The warehouse façade will be restored and three new blocks, including an eight-storey tower, built around a central glass atrium comprising the rest of the scheme.

The former ice making factory was pivotal to the ice cream barrow industry, which flourished in Ancoats at the turn of the 20th century and provided ice for the old Smithfield market. The Ice Plant’s ideal location, overlooking the new public square, presents opportunities for cafes, restaurants and leisure, while its apartments are a new blueprint for city centre living. Ice Plant is due for completion in Spring 2011.

Sarah Point Sarah Point, a highly visible development site on Great Ancoats Street became Ancoats’ most prominent casualty of the financial crisis. Following the collapse of the developer, the site has lain dormant for over two years, suffering fire, weather and vandalism damage during that time.

Fortunately, the project is due to restart in the near future, thanks to funding secured from the HCA under its Kickstart initiative. The bank which held the majority of the debt on the site has teamed up with developer UK Land & Property to bring forward a slightly modified scheme, which retains the original design but with altered residential mix. This will now deliver 166 apartments with approximately 2,000 sq m ground floor commercial space as well as two levels of basement parking for 94 vehicles.

Appointment of Letting Agents Lambert Smith Hampton (LSH) was appointed by the NWDA during 2009 to market buildings and sites in Ancoats. LSH will work with the NWDA and New East Manchester to market the vacant properties, with early priorities being: 46 Radium Street, 27 Blossom Street, 2-6 Loom Street and Jactin House. The letting/disposal of these properties will help to increase occupancy levels and footfall, which in turn will stimulate the area’s vitality and make it more attractive to both residents and business.

Peter Skelton, Director at LSH Manchester, said: “We are optimistic about the future prospects for the area. Ancoats is ripe for investment and, with a pro-active disposal strategy and careful exploration of emerging opportunities, we believe we can assist in improving the overall performance and appeal of the area.”

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Existing Ancoats Business Base

(i) Employment Numbers and Sectors An analysis of employment in Ancoats, as drawn from the Yell.com database, shows that the number of employees in the area has increased by 10% since 1999, from some 999 employees to 1,102 employees.

As well as employment growing in Ancoats, the proportion of high-value jobs is also increasing, with low-value jobs decreasing; a 36% uplift in the real estate, renting and business activities category.

(ii) Businesses Numbers and Sectors Around 154 businesses are currently in Ancoats, of which 38% are classified within the high value business activities sector; an increase of 28% over the past 11 years.

Business Growth

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Movement of Number of Employees in Ancoats (by sector)

1999 2010 Movement -/+

Total Number of Employees 999 1102 10%

Sector Type 1999 2010 Movement -/+

Public Administration and Defence 0% 0% 0%

Education 0% 4% 4%

Transport, Storage and Communication 6% 5% -1%

Health and Social Work 1% 5% 4%

Hotels and Restaurants 4% 6% 2%

Other Community, Social and Personal Service 8% 4% -4%

Wholesale and Retail Trade 32% 12% -20%

Manufacturing 38% 17% -21%

Real Estate, Renting and Business Activities 10% 46% 36%

Construction 1% 1% 0%

Sector Type 1999 2010 Movement -/+

Public Administration and Defence 0% 0% 1%

Education 0% 3% 3%

Transport, Storage and Communication 5% 3% -2%

Health and Social Work 1% 6% 5%

Hotels and Restaurants 10% 8% -2%

Other Community, Social and Personal Service 14% 10% -4%

Wholesale and Retail Trade 35% 16% -19%

Manufacturing 24% 15% -9%

Real Estate, Renting and Business Activities 10% 38% 28%

Construction 1% 1% 0%

Movement of Ancoats Businesses (by sector)

1999 2010 Movement -/+

Total Number of Businesses 147 154 5%

Companies to have Located in Ancoats 2000—2010

Year Number of Companies to have Located in Ancoats

Employees

2010 (to March) 4 30

2009 18 90

2008 14 104

2007 5 40

2006 6 27

2005 5 30

2004 5 47

2003 11 69

2002 7 52

2001 3 18

2000 4 36

Pre-2000 25 175

Unknown 47 384

Totals 154 1,102

Company Address Sector Employees

1. Friendly Lettings Unit A/B, 6 Oldham Road Business & Prof 4

2. Punk PR Flint Glass Works, Jersey St Business & Prof 5

3. RARA Offshore 33 Connect House 1, Henry St Business & Prof 4

4. Sp One Limited Waulk Mill 22, 51 Bengal Street Business & Prof 4

5. The Apartment Comp. 302 Express Networks, Oldham Rd Business & Prof 1

6. Thornhills Solicitors 66 Oldham Road Business & Prof 6

7. Townhouse Lettings 151 Great Ancoats Street Business & Prof 4

8. Gooey Creative Flint Glass Works, Jersey St Digital/ Media 5

9. Orchard Internet 1 George Leigh Street Digital/ Media 9

10. Red Fusion 39 Bengal Street Digital/ Media 4

11. Simplyred Old School House, George Leigh St Digital/ Media 6

12. Visualknit 25 Connect House, Henry St Digital/ Media 4

13. Vietnamese Mini Mart 142-144 Oldham Rd Food 5

14. Phoenix 3g 206 Old Sedgewick Mill Other 4

15. Reneker Building Flint Glass Works, Jersey St Other 5

16. Spotlight Kid Flat 306, 22 Loom St Other 4

17. Toni & Guy 1 George Leigh St Other 11

18. M-Scheme Unit 2, MM2 Building, Redhill St Retail 5

Total 90

Companies to have Located in Ancoats in 2009 by Sector

Businesses Choosing to Locate in Ancoats

(i) Trend 2000—2010 The years 2008 and 2009 have seen record numbers of new businesses locating in Ancoats, with 14 companies and 18 companies respectively, in comparison to the previous eight years.

(ii) Year 2009 Breakdown The majority of new firms locating in Ancoats during 2009 were drawn from the business and professional, plus the digital and media sectors.

This mix is not dissimilar to that found in the neighbouring Northern Quarter and illustrates the potential for the future of Ancoats for expansion of the city centre for creative and knowledge-based business.

Business Engagement

April 23rd, 2009 saw the first meeting of the Ancoats Business Forum. Facilitated by the NWDA and NEM, this Forum is for members of the local business community, it meets quarterly at the offices of Ask Developments. The purpose of the Forum is to:

— provide a means of disseminating and sharing information within the local business community;

— raise awareness about the types and sources of support available;

— create and foster goodwill, and unity within the business community in general in the context of a common mutual advantage in the success and strength of the Ancoats economy;

— provide the local business community with a means of representing their views;

— promote networking opportunities at both business meetings and outside of formal gatherings;

— build and engender strong communication links with other commercial and community representative groups in the area and to foster influential relationships for the benefit of the membership; and

— Provide a useful point of contact and practical support for those wishing to conduct business in the local area.

Since its inception, attendances have increased to 30+ businesses. Issues discussed and resolved at the meetings have included the promotion of the area, feedback on the highways strategy, lobbying the local council on public realm reinstatements, public safety issues and the availability of business support. One of the notable achievements of the Forum has been the establishment of a Business Watch scheme, through direct working between local businesses and the Greater Manchester Police.

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Over the coming 12 months, the Regeneration Projects Manager at New East Manchester will be conducting a series of one-to-one visits with Ancoats’ businesses, providing details on various support measures that they may be eligible for, e.g. sustainable consumption advice, business finance, grants, loans, equity finance, management support, skills development/ mentoring, recruitment support, business diagnostics etc.

EnterPrize Awards 2009 The EnterPrize Awards is an annual competition that encourages enterprise within east Manchester while recognising and rewarding talented businesses and entrepreneurs.

The awards are run by urban regeneration company New East Manchester (NEM) and funded in partnership with the NWDA and Manchester City Council. Five of the six finalists at last year’s event were companies based in Ancoats.

In total, nearly 50 entries were received and the six finalists won an intensive programme of support and consultancy. Each won £3,000. Wigs up North, a supplier of wigs and make-up for theatre and TV, based in Royal Mills in Ancoats, were competition winners and scooped the £10,000 EnterPrize business award at the December 2009 event. Other finalists from Ancoats included:

— Scott Hughes Design – a civil and structural engineering design consultancy employing 16 people in the Flintgalss Works in Ancoats;

— Transfixed – a wig and beauty salon for the trans-gender community with an online store that was set up nine months ago in Beehive Mill, Ancoats;

— Pageplay – which offers easily up-datable website design paid for by monthly fee which is aimed at start-ups and smaller businesses. Based in the Express Networks Ancoats, the small company of four staff, started in 2008; and

— Acid Computer Services - Bespoke software and database company based in Ancoats with clients ranging from small businesses to the NHS.

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November 16th 2009 saw the first meeting of the Ancoats Residents Forum. This Forum, facilitated by NWDA and NEM for the local residential community, will meet twice each year at Flint Glass Wharf offices. The purpose of this body is to:

— disseminate relevant information relating to the regeneration plans for the area among the local residential community;

— create and foster goodwill, friendship and unity among the residential community of Ancoats in general;

— provide the local residential community with a voice to represent their views;

— build and engender strong communication links with other commercial and community representative groups in the area and to foster influential relationships for the benefit of all; and

— Provide a useful point of contact for those wishing to live in the local area or intending to purchase a property in Ancoats.

Currently, the following residential blocks are represented at the forum:

— Connect House (Express Networks);

— New Cross Residents Group (Anita St/ George Leigh Street block);

— BS41 (currently via Premier Estates);

— Flint Glass Wharf (currently via Northern Group);

— Royal Mills; and

— MM2.

Issues discussed to date have centred upon the resolving of disturbance from adjacent construction works, how best to tackle isolated pockets of environmental nuisance, and a proposal for a community use at the former St Michael’s Church. Concerning the latter point, the New Cross Residents Group and the Save St Michael’s Campaign Group have held a number of joint meetings to work up the detail behind the submission of a Business Plan for such a suitable community use for submission to the NWDA during 2010/11.

Engagement of Residents

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Background The Ancoats Public Realm Strategy was prepared by New East Manchester and approved by Manchester City Council in 2002. Key aspects of Ancoats’ new public realm include:

— using high-quality, robust materials;

— building footways to increase carriageway strength;

— reduced street clutter;

— on street parking;

— reduced carriageway widths and wider footways where possible;

— pedestrian priority; and

— Raised unmarked crossroads.

To date the public realm strategy has been delivered through eight phases over the last seven years, investing some £10M public sector funds from the NWDA and European Regional Development Fund (ERDF), with additional private sector contributions to come via Section 106 agreements.

Phase 8 During 2008/09 approval was given to Phase 8, an investment of £824,000 solely by the NWDA. This final phase consists of completing public realm enhancements to remaining street sections in the Ancoats CPO area:

— George Leigh Street (between junctions with Great Ancoats Street and Cornell Street);

— Carriageway of Radium Street (between Redhill Street and Jersey Street);

— Southern footpath of Jersey Street (between Radium Street and Poland Street);

— Raised junction (on Jersey Street/ Poland Street); and

— Correctly install pavement lights and windows within Murray’s Mill (on Redhill Street and Bengal Street).

Awards November 2009 saw the public realm works in Ancoats win the Landscape Institute’s Urban Design and Master Planning 2009 Award. The award recognises the significant improvements made to the area including the renewal of the streets and pavements, as well as the introduction of the Peeps art installation and Cutting Room Square.

Artist-in-residence, Dan Dubowitz, Ancoats has been inspired by the people he has met and the things he has experienced since first coming to the area in 2003, his work reflects his unique insight into an area in transition. With the ‘Peeps’, a series of 15 peepholes have been embedded in buildings around the area, which use glimpses of the past to stimulate a curiosity for what made Ancoats the place it is. Finding the Peeps is itself a journey of discovery. They are placed in a variety of places including a disused tunnel, a bell tower and a room in a mill which was walled up for over 50 years. The Judges commented: “This is a simple, yet engaging idea which will encourage the public to connect with the site and uncover the area’s secrets. Overall the project provides clarity, texture and imagination in the public realm and a highly appropriate response to context.”

Public Realm

Sites Tidy Up Given the recent economic downturn resulted in many proposed development schemes being deferred, the period that many development plots would remain in a semi-derelict state was forecast to be much longer. It was recognised that the then unsightly land could act as a detractor to new investment and would contribute towards the air of neglect. The decision was taken to treat a number of prominent development plots with interim hard landscaping measures, and improve the local environment in the short to medium term.

During autumn 2009, seven sites were treated to environmental improvements, which included site levelling, temporary surfacing with green slate aggregate and unified fencing. Plots treated were: Murrays Mills; Stockbridge Airco; Heart of Ancoats (north and south of Loom Street); land abutting St Michael’s Presbytery; George Leigh Street/Cotton Street corner; and Henry Street.

Following a positive response from the local business community, a Phase 2 was rolled out during January 2010 on a further five sites, including side of new Little Mill, Henry Street, Sub-Station, Jactin House and the side of St Peter’s.

Estate Management

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Hoarding Programme In order to screen a number of eyesore sites, promotional hoardings were wrapped around them using the new branding for the area and containing positive messages from members of the local business community. The seven sites treated were Howarth Metals, Ice Plant, Flint Glass Wharf, Sarah Point, Royal Mills, 47 Bengal Street and MM2.

Public Realm Re-instatements Following liaison with the Manchester City Council Highways Team, highways inspections were increased in Ancoats from a six-month cycle to monthly inspections. A schedule of 40 reinstatements was identified and some thirty of these were treated in year. In addition, a detailed materials schedule for Ancoats was compiled by Camlin Lonsdale, which enabled the City Council to commence stock piling reserve materials which were specific to Ancoats to reduce any lag time with future reinstatements being delivered.

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Bollards In order to deter instances of ram raiding at the MM2 units, bollards were erected along the stretch of Redhill Street and Great Ancoats Street.

Business Watch Greater Manchester Police established a Business Watch scheme, during summer 2009, in direct response to the request from the Ancoats Business Forum. The new initiative had been developed to target burglary and other business-related crime through the sharing of information.

CCTV cameras During March 2010, the NWDA grant funded the installation of ten new CCTV cameras. These cameras are monitored, for the purposes of prevention and detection of crime, by the Manchester City Council CCTV Team. The use of new columns for these cameras has been avoided to reduce street clutter and all cameras are lightweight, wireless and capable of being relocated, to chase any crime hotspots around the locality.

Respect Day During summer 2009, the A5 Neighbourhood Policing Team and Manchester City Council Community Safety team held an Action Day around Ancoats and the Northern Quarter. The day aimed to target burglary, vehicle crime and raise awareness of personal, business and home security. Over 20 Greater Manchester Police and Manchester City Council Officers helped out on the day providing high-visibility partnership patrols. ‘Don’t Bother Kits’ were handed out to help keep cars safe and secure, motorists either speeding or using mobile phones were reprimanded, while environmental blights were targeted with actions agreed to deter tipping and graffiti.

Safer Ancoats

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Bollards In order to deter instances of ram raiding at the MM2 units, bollards were erected along the stretch of Redhill Street and Great Ancoats Street.

Business Watch Greater Manchester Police established a Business Watch scheme, during summer 2009, in direct response to the request from the Ancoats Business Forum. The new initiative had been developed to target burglary and other business-related crime through the sharing of information.

CCTV cameras During March 2010, the NWDA grant funded the installation of ten new CCTV cameras. These cameras are monitored, for the purposes of prevention and detection of crime, by the Manchester City Council CCTV Team. The use of new columns for these cameras has been avoided to reduce street clutter and all cameras are lightweight, wireless and capable of being relocated, to chase any crime hotspots around the locality.

Respect Day During summer 2009, the A5 Neighbourhood Policing Team and Manchester City Council Community Safety team held an Action Day around Ancoats and the Northern Quarter. The day aimed to target burglary, vehicle crime and raise awareness of personal, business and home security. Over 20 Greater Manchester Police and Manchester City Council Officers helped out on the day providing high-visibility partnership patrols. ‘Don’t Bother Kits’ were handed out to help keep cars safe and secure, motorists either speeding or using mobile phones were reprimanded, while environmental blights were targeted with actions agreed to deter tipping and graffiti.

Safer Ancoats

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Cutting Room Square Event The Cutting Room Experiment was a one-off event that brought a variety of audiences into the heart Ancoats to publicise and celebrate the completion of the new Cutting Room square and highlight work done in the area to date. Held on 29 June 2009, the event was based on the phenomena of Web Two – specifically Twitter, Facebook and ‘Flash Mobs’ – the whole day centring upon user-generated content. A promotional website was central to the festival, which contained message boards, blogs and links to all other networks that formed part of the festival. Activities held on the day included Book of a 1,000 authors, Alka Seltzer rockets, space hopper racing, longest conga line, and a silent disco.

Hermes Event Fashion house Hermes held their prestigious Annual Dinner in Ancoats during 2009 at the former St Peter’s church in Hood Street. Feedback indicated that the event was a success and good publicity was generated from the event.

Royal Mills Picnic Royal Mills Tenants & Residents Association hosted an open air Summer Picnic in the Cutting Room Square on Sunday 9 August 2009. The event provided the opportunity for residents from the Mills, Albion works and Express buildings to visit, read a Sunday paper and get to play their guitars.

Halle Musicians from the Halle Concerts Society utilised the former St Peter’s Church on a number of occasions during 2008/09 to rehearse within. Negotiations are ongoing with the NWDA and other parties to establish whether this building could become the Halle’s permanent rehearsal base. If it can be achieved, this would be of great benefit to the Halle and will provide additional footfall in the area, thereby acting as a welcome catalyst to the wider regeneration of Ancoats.

Sankeys During March 2010, Sankeys Nightclub in Ancoats topped the poll in the largest ever and only industry-recognised poll of its kind in the DJ Mag top 100 worldwide clubs voted for by the fans. Amidst a backdrop of recession, the previous year’s attendances were said to be up 25%. Sankeys has grown since 1994 to become one of the most technologically advanced and comfortable clubs around with an indoor cinema, megatron nitrogen canons (the only of their kind in the UK) and a bar code entry system.

Attracting More Footfall

Abolition of the NWDA Following the change of government in May 2010, an announcement was made that regional development agencies will be abolished in March 2012. The NWDA’s involvement in Ancoats will accordingly cease during late 2011 to early 2012, as the Agency passes over its land holdings and responsibilities to a successor body prior to its abolition.

How the transfer will take place will largely depend on the succession strategy the government decides to adopt for the NWDA’s landholding. Nevertheless, the NWDA is committed to ensuring that the transfer will take place in an orderly and well managed format. To this end, a transition group has been established to resolve issues and oversee the process.

Future Guiding Principles The original vision for Ancoats remains as true today as it ever has been: to transform Ancoats into a place where people will want to live, work and visit. Excellent progress is being made to realise this vision, and local residents and businesses will continue to have a bigger say in shaping the areas future going forwards.

Notwithstanding the abolition of the NWDA, there are a number of guiding principles that will likely carry through to any successor body seeking to ensure the long-term regeneration of Ancoats, as detailed below.

— Maintaining its facilitating approach to land disposals, e.g.:

— Reflecting regeneration objectives in the values sought for disposals;

— Flexible approach to timing of (deferred) payments of capital receipts;

— Potential for side-by-side arrangements – public sector sharing of both up-front risk and subsequent profit with private sector partners.

— Working to ensure sites are fully serviced and ‘development ready’.

— Perceptions of disconnection to be tackled, e.g.:

— Major pedestrian crossings along Great Ancoats Street; and

— Better sequencing of pedestrian lights to remove waiting at islands.

— Greater commercial emphasis, focussing on smaller unit sizes of commercial office space, e.g. circa 100 to 150 sq m (subject to testing with commercial agents).

— Actively encourage the introduction of retail and leisure uses to improve the daytime economy and create footfall.

— Flexible approach to temporary uses that animate the space, e.g. temporary markets.

— Ensuring future parking needs for the area are met.

— Provision of Next Generation Access broadband connectivity

— Deliver a composite and unified signage strategy that helps knit the locality together and which better route marks and encourages visitors into the area.

— Implementing a formalised management company for the area.

The Year Ahead & Future Strategy

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Status of Developments March 2010

Name/Address Developer Comment Status

1 Waulk Mill, Redhill St/Bengal St, Urban Splash Successful redevelopment of grade 2 listed mill Completed

2 Express Networds II Artisan Conversion to apartments and workspace with underground car park.

Completed

3 8 Loom St Water Street Company Ltd Redevelopment to office + residential use Completed

4 Crown and Kettle Artisan Refurb of Grade 2 listed PH Completed

5 Virginia House Artisan Refurb of offices and art gallery Completed

6 Express Networks III Artisan New build contemporary apartments + workspace Completed

7 George Leigh St School ASK Redevelopment of former school to offices Completed

8 41 Bengal Street City South Developments Apartments above commercial uses, 7 floors with ground level car park

Completed

9 Flint Glass Works, 64 Jersey St Northern Group Conversion of glass works to workspace Completed

10 MM2 Gt Ancoats St/Redhill St Gleeson/Persimmon Homes New build apartments+ shops on main road frontage Completed

11 Canal Side Square, Redhill Street NWDA/NEM Public open space adjoining canal Completed

12 Coates School, 2 Jersey Street Private developer Conversion of former school to office use Completed

13 27 Blossom Street Hardcastle Investments Office refurbishment Completed

14 2-4 Loom Street Hardcastle Investments Workshop to office refurbishment Completed

15 Sam’s Foundry 46 Radium Street Hardcastle Investments Refurbishment for 3 storey offices Completed

16 62 Jersey St Private Investor Conversion to shop, restaurant and flat Completed

17 Royal Mills Phase 1 ING Real Estate Redevelopment of 2*listed Mill to residential and commercial uses.

Completed

18 Cutting Room NWDA/NEM Public square providing setting for surrounding Completed

19 64a Jersey St Flintglass Apartments Northern Group New build apartments Completed

20 Public Realm NWDA/NEM/Section 106 etc funded

Step change in highway surface, furniture, Completed

21 Great Ancoats St - Sarah Point Yorks Bank/Allied London Residential and ground floor commercial on main road frontage, with 2 level basement car park.

Stalled/ Kickstart now approved

22 Ice Plant Northern Group Apartments above commercial uses, 9 floors +2 levels basement car park

On site

23 45-47 Bengal Mill City South (Ancoats) Ltd New build apartments & offices Stalled

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Name/Address Developer Comment Status

24 Hood Street scheme Northern Group New build mixed use In design

25 32-40 Oldham Road Artisan Mixed use redevelopment of site Awaiting proposals

26 17-19 Jersey Street - refurbishment opportunity Pre-developer selection

27 Heart of Ancoats Artisan Town houses, apartments and leisure Planning re-approval sought

28 Stockbridge Airco site Site not yet available New build mixed use opportunity Pre-developer selection

29 Murrays Mills (inc. Dixon Mill / New Little Mill)

Burrell/InPartnership Historic structure shell repaired, for developer to fit out. Scheme being re-designed

30 Royal Mills Phase 2 (part) ING Redevelopment of 2*listed Mill to residential and commercial uses.

Planning approved (May 10)

31 Blossom Street/Henry St Blossom Street Renewal Ltd Mixed use pub/commercial/residential on 7 floors Revised scheme being prepared

32 66 Jersey Street - New build mixed use opportunity Site to be marketed

33 30-34 George Leigh St - Mixed use residential and retail Pre-developer selection

34 St Peter’s Church - Shell repair complete – discussions ongoing with Halle Under review

35 Pickford St Car Park NWDA/NEM Site may be offered with adjacent plot Under review

36 St Michael’s Church Prestbytery - New build residential opportunity Pre-developer selection

37 Jactin House - Refurbishment opportunity Site being marketed

38 30 Poland Street / 109 Jersey Street (not part of CPO)

- Site assembly not yet complete Pre-developer selection

39 6 Loom Street Not yet available Redevelopment opportunity Site being marketed

40 87-91 Great Ancoats Street - Redevelopment opportunity Pre application discussions

41 Blossom St/Hood St Not yet available New build opportunity Pre-developer selection

42 St Michael’s Church - Initially seeking sustainable community use Pre-developer selection

43 Elec sub-station, 15 Jersey Street - Refurbishment opportunity Pre-developer selection

44 Ghulam House Private investor Office refurbishment Planning approved

45 Gun St Car Park - Existing use (car park) None required

27

Output Category Total Gross Achieved to 31 March 2010

Under construction 31 March 2010

Residential units 1,344 586 356

Commercial Floor space (sq m) 98,120 37,552 20,445

Number of jobs which can be accommodated in commercial space provided’

3,241 1613 260

Private sector leverage £332M £132M £72M

Other (non NWDA) public sector leverage £15.4M £3M £1.7M

Brownfield land restored to productive uses 8.4ha 3ha 1ha

Progress Against Outputs

Progress Against Expenditure

29

Ancoats CPO Project 00/01 01/02 02/03 03/04 04/05 05/06 06/07 07/08 08/09 09/10 Total to Date

10/11 11/12 Future Years

Project Totals

Land Purchases (incl accrual) 0.1 - 4.0 1.6 1.0 0.7 14.2 1.2 -0.7 0.4 22.5 0.7 - - 23.2

Contingent Liabilities - - - - - - - - - - - - 1.5 6.8 8.3

Resource Spend 0.1 0.5 0.3 0.6 0.3 0.2 0.3 0.4 0.5 0.9 4.1 0.4 0.4 0.1 4.9

Estate Costs - - - - 0.3 0.1 0.7 1.0 0.3 0.6 3.0 0.4 0.4 0.4 4.1

Total CPO Expenditure 0.2 0.5 4.3 2.2 1.6 1.0 15.2 2.6 0.1 1.9 29.6 1.4 2.3 5.4 40.6

Income (£Ms)

Total Income - - - - -0.3 -0.1 -0.5 -0.3 -1.0 - -2.2 - -0.1 -13.9 -16.2

Net Cpo Expeniture 0.2 0.5 4.3 2.2 1.3 0.9 14.6 2.3 -0.9 1.9 27.4 1.4 2.2 -8.5 24.4

Other Ancoats Projects (£Ms) 00/01 01/02 02/03 03/04 04/05 05/06 06/07 07/08 08/09 09/10 Total to Date

10/11 11/12 Future Years

Project Totals

Murray Mills Shell Repair - - - 0.7 0.5 2.9 0.6 0.1 - - 4.8 0.1 - - 4.9

Royal Mills - - - 0.1 2.3 4.8 1.5 - - - 8.7 - - - 8.7

St Peters Church Shell Repair - - - 0.1 0.3 0.3 - - - - 0.7 - - - 0.7

Howarth Metals - - - - - - 0.1 3.4 - - 3.5 0.1 - - 3.6

Public Realm 0.5 0.1 - - 0.7 0.9 0.5 1.4 1.4 0.8 6.3 0.1 - - 6.4

The Ice Plant - - - - - - - - 0.6 0.2 0.8 1.6 - - 2.5

Flint Glass Works - 0.1 - - - - - - - - 0.1 - - - 0.1

Gt Ancoats st MM2 - - - 1.0 - - - - - - 1.0 - - - 0.5

Derros & Hudson - - 0.1 0.7 -0.2 - - - - - 0.5 - - - 0.5

Total Other Project Expenditure 0.5 0.2 0.1 2.5 3.6 8.9 2.7 4.9 2.0 1.1 26.5 1.9 - - 28.4

Total Ancoats Expenditure 0.7 0.7 4.4 4.8 5.2 9.9 17.9 7.5 2.1 3.0 56.1 3.4 2.3 5.4 69.0

Commentary on Financial Position

During 2009/10 the project cost have kept well below the re-approval level, and as a result of changes within accounting polices the project is now £4.8 m below the gross re-approval level of £43.5m which also includes contingency. The project has seen settlement with further compensation being paid out during the year, which has amounted to £0.88 million being paid out. This represented 60% of the outstanding payments that were due at the beginning of 2009/10 being completed. Overall 95% of compensation has been agreed on best case scenario.

Total NWDA Investment on Ancoats

The total NWDA spend to date on Ancoats is £56.1m with further £4.8m being spend over the next four years.

The transformation of Ancoats from an area in decline into a vibrant, forward looking commercial and residential part of the city, that celebrates its industrial heritage, continues. Eight hectares of once derelict land remains firmly on track to realise nearly 100,000 square metres of business space, thousands of high spec homes and exciting new public spaces.

This report demonstrates: continuing development activity in Ancoats, tangible business growth and a wealth of talented companies, positive engagement between partners, residents and businesses, and a solid estate management regime which is contributing towards a safer environment. In addition, the public realm is now looking better than ever, as recognised through Ancoats winning a number of prestigious national awards.

The timing of the redevelopment of the remaining vacant plots in Ancoats will of course be reliant upon an uplift in the market and improved lending conditions for finance for development; a situation not helped by a backdrop of public sector spending cuts. Nevertheless, every effort will continue to be made by partners and stakeholders to ensure that the momentum of regeneration achieved in the area to date is maintained and that Ancoats realises its ambition to become a thriving, mixed-use part of Manchester City Centre which is true to its maxim – History with a future.

Conclusions

30

Manchester Civic Society Public Realm Award 2004

Waterways Renaissance Award, run by Waterways Trust and BURA Area Regeneration Category 2006

Property Week North West Property Awards Mixed Used Development Category Royal Mills 2007

North West Regional Construction Awards CCI – Murrays Mills 2007

RICS North West Regeneration Category Royal Mills 2007 Construction Category Murrays Mills 2007

CABE Exemplar Case Studies Public Realm 2007

RTPI North West E Government Category 3D Model 2007

Georgian Group Architectural Awards Restoration of a Georgian Building in an Urban Setting – Murrays Mills 2007

RTPI National Awards E-Government Category 3D Model 2008

Awards & Accolades

Northwest Regional Development Agency PO Box 37 Renaissance House Centre Park Warrington Cheshire WA1 QA

T 01925 400 100 F 01025 400 400 www.nwda.co.uk www.englandsnorthwest.com

New East Manchester 187 Grey Mare Lane Beswick Manchester M11 3ND

T 0161 223 1155 F 0161 230 8966 www.neweastmanchester.co.uk