Economic Development Sub- Committee

Minutes of the Meeting held on 24 November 2014 at

10.00 am at County Hall. Present:

Mr B Spratt (Chairman)

Mr R Bird Mr I Mackie Dr A Boswell Mr J Timewell Mr S Clancy Mrs C Walker Mr S Hebborn Mr M Wilby

Also Present:

Mr R Bearman Mr T Garrod Nigel Dixon Mr G Nobbs Mr T FitzPatrick Mr A White

1 Apologies and Substitutions

No apologies received.

2 Minutes

2.1 The minutes of the meeting held on 12 September 2014 were confirmed as a correct

record by the Sub-Committee and signed by the Chairman.

3 Declaration of Interest

3.1 No declarations were made. 4 Items of Urgent Business

4.1 No items of urgent business 5 Local Member Issues / Questions

5.1 No Local Member questions were received. 6. Order of Business

6.1 The Sub-Committee agreed to discuss items 7,6,13 and 14 (County Farms and RAF

Coltishall update) in that order before returning to the order of business set out on the agenda. The Chairman advised that item 8 had been withdrawn.

7. County Farms Member Working Group

7.1 The Sub-Committee received a verbal update from the Chairman of County Farms

Advisory Board Mr I Mackie.

7.2 The Chairman of the County Farms Advisory Board advised there had been real progress for the county farms estate.

7.3 The board were looking at other areas to develop such as tourism, food and sustainable energy. Also the possibility of working with the youth offending team.

7.4 The Chairman of County Farms announced there was revenue of £370,000 available and would like to recommend that this could be put forward to fill the gap in revenue for the highways once the budget consultation had been completed.

7.5 The Sub-Committee noted the County Farms verbal report. 8. RAF Coltishall – update and development of Business Plan and detailed

Master Plan for the technical area.

8.1 The Sub-Committee received a presentation from the Manager responsible for RAF Coltishall, Mr T Edmunds. A copy of this is attached at Appendix A to these minutes. The presentation and report outlined two options for a 10 Year Business Plan for the former RAF Coltishall, acquired by the Council in January 2013. It set out capital investment and revenue impacts, costs/returns. Its strategic impact was to create jobs, increase the sustainability of the settlement of Badersfield and contribute more widely to the Norfolk economy, including making a financial return to the Council on its investment in the site.

8.2 During the discussion the following points were made:-

Significant funding was required to bring all buildings that have a commercial future back into productive reuse. This would not be required all in one go but as each building is developed on a Business Case by Business Case basis. The timing of this is dependent upon market appetite.

Of the buildings on site, 15% had been earmarked for demolition; these are the buildings that are not viable for commercial, heritage or community use.

Any changes to any buildings would be done through collaborative working between Norfolk County Council, the district councils and English Heritage to mitigate any harm to the buildings or the wider Conversation Area.

Heritage Lottery Enterprise grant funding is being considered in relation to financial support to convert buildings, in the first instance a hanger, for commercial reuse.However it was noted that this was a very competitive process so could represent a possible risk in terms of securing funding.

The Sub-Committee discussed whether Norfolk County Council had the

expertise to secure the best deals and to push forward with the business plan. Members were assured that significant expertise existed within the Council, but where the Council required additional support it would be sourced externally. Officers commented that despite some of the constraints that exist, rents had been secured at or in many cases above market levels.

The Sub-Committee discussed the rate of return on the site and it was confirmed that the rate of return was potentially good with the expectation that the rent from tenants would surpass the cost to run the site next year.

The planning application for the new solar farm on the site was with North Norfolk District Council and Broadland District Council currently and would expect a decision in mid-December.

9. Exclusion of the Public

RAF Coltishall – update and development of Business Plan and detailed

Master Plan for the technical area. – Appendices 2, 3, 6, 7, 8 and 9.

9.1 The Sub-Committee was advised that, with regard to item 14, RAF Coltishall – update and development of Business Plan and detailed Master Plan for the technical area. – Appendices 2, 3, 6, 7, 8 and 9, which was to be brought forward on the agenda. The Committee would need to consider whether to exclude the public for the consideration of the report. The Assistant Director Economic Development & Strategy presented the public interest test, as required by the 2006 Access to Information Regulations for the consideration of the Committee as follows: “Exclusion of press and public in relation to Appendices 2, 3, 6, 7, 8 and 9 of this report is sought under paragraph 3 of part 1 of schedule 12A to the Local Government Act 1972. This report contains specific proposals which are commercially sensitive. Disclosure of those proposals at this stage could weaken the Council's negotiating position. We believe that the public interest in maintaining the exemption outweighs the public interest in disclosing the information”

9.2 The Sub-Committee RESOLVED that the public be excluded whilst the report was considered.

10. RAF Coltishall – update and development of Business Plan and detailed Master Plan for the technical area. – Appendices 2, 3, 6, 7, 8 and 9 - Summary of Minute Excluded from Public Deposit.

10.1 The Sub-Committee received the exempt appendices and presentation (Appendix B) which outlined the commercially sensitive pieces of information regarding the potential investment and redevelopment of the former RAF Coltishall and considered them together with the Supplementary Agenda item 6 papers – pages A2-A20.

10.2 The Sub-Committee RESOLVED to:-

Support investing in the site to bring forward employment opportunities as

early as possible in accordance with Option 1. Investment to improve the building stock would be phased, and would prioritise buildings that had the highest rate of return on investment. The actual rate the programme would be delivered at would reflect the market and the ability of the Council to secure tenants for the buildings it had improved before moving on to subsequent phases and underwrite the forecast revenue pressures in 2016/17 and 17/18 using the Norfolk Infrastructure Fund.

To cease referring to the site as the former RAF Coltishall site and take

forward the new employment area as Scottow Enterprise Park, the new residential development off Lamas Road as New Batley Green. To refer to the heritage offer under the Spirit of Coltishall branding and note that the naming of the solar farm and Officer’s Mess housing development are matters for the prospective developers.

Officers would provide the Terms of Reference for a member group which

would have oversight of Coltishall to the next Economic Development Sub-Committee meeting.

11. Finance and Performance Monitoring report

11.1 The Sub-Committee received the report from the Interim Executive Director of the

Community and Environmental Services which updated the Committee with the Financial Position to the end of October. It provided the Committee with information on key areas of activity and details of any variances from the original budget, emerging issues, impacts on performance and the planned use of reserves.

11.2 The Sub-Committee requested that a capital budget could be included within the financial report for the next meeting which would show earmarked funds.

11.3 The Committee NOTED the report.

12. External Appointments

12.1 The Sub-Committee received the report by the Head of Democratic Services which set out the external appointments relevant to the Economic Development Sub-Committee.

12.2 The Sub-Committee RESOLVED the composition and membership of the groups as set out in Appendix C to these minutes.

13. Discussion on the review of the Committee system – comments from Economic Development Sub Committee to feed into the review

13.1 The Sub-Committee discussed the advantages and disadvantages to the Economic Development Sub-Committee becoming a full committee and what points they would like to feed back into the review.

13.2 The Sub-Committee NOTED that the issue would be raised with the Policy and Resource committee in January 2015.

14. Forward Plan for Economic Development Sub-Committee

14.1 The Sub-Committee received the report from the Interim Executive Director of the Community and Environmental Services Department which outlined the Forward Plan.

14.2 The Sub-Committee RESOLVED to agree the Forward Plan and that the visit to the offshore windfarm at Scroby Sands should be done at the cheapest cost possible.

The meeting closed at 12:30pm.

Chairman

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Former RAF Coltishall

Scottow Enterprise Park

Home of Spirit of Coltishall Heritage

Tim EdmundsProject Sponsor

Council stepped in to:

Create Jobs, Protect Heritage & Public Access

Why Did the Council buy the Site?

Market Failure

Important heritage site falling further into disrepair

HeritageWhole site designated a Conservation Area with various Listed and Local Listed Buildings and features

£4m purchase subject to a ‘Deed of Transfer’ with the Ministry of Justice

•Separate services so that site and HMP Bure can operate independently (£500k)

•Accommodate HMP Bure ‘community woodland’ and the prison’s wind turbine renewable energy obligations

•‘Clawback’ and ‘Sales Overage’ provisions based on a Zonal Land Plan

What has the Council Achieved?

Open and Inclusive Public Process helping the Council agree it’s Development Vision

Listening to the views of Norfolk People

Many not suggestions not commercially viable – for instance aviation

The existing vehicular routes and access arrangements are suitable in highway terms for the likely traffic flows that will arise as the site comes back to life

However, each individual planning application will be treated on its own merit including a formal assessment of the likely transport / traffic impacts

The Council has however given commitments that it will seek to bring forward improvements

It has implemented weight restrictions through Buxton-with-Lamas and The Fairstead, Scottow

Discussions with our neighbouring land owners to take traffic away from Badersfield and to open up the southern end of the site to the public are on-going

Heritage

Council has worked with:

•University of East Anglia

•Airfield Research Group

•Spirit of Coltishall Association and its volunteers

to characterise and record the site in heritage terms, and to run Open Days and conducted Heritage Tours to enable local residents and members of the public more generally greater access.

Renaming the Site

Devised under the guidance of the Leader of the Council and the support of the Community Liaison Reference Group

'Scottow Enterprise Park‘

'New Batley Green' housing

Scottow Moor Solar Farm

Spirit of Coltishall Heritage

Master Planning

Commercial

Heritage

Community

Demolish

66% of the declared ‘lettable’ floor space is

let or under offer

100% of the ‘open airfield’ in use

Key Facts – Jobs

Current employment on the former base – 25. This is directly projected to grow in our tenants Business Plans to 263 (this is without the Council securing any other new tenants)

However 5 other tenancies in the pipeline (including significant manufacture employing 200 people), and other enquiries.

Predicted job creation is in the order of 675 jobs

Total number of jobs at HMP Bure (400) and predicted at Scottow Enterprise Park (675) will exceed the 603 deficit created when the base closed

Key Facts – Finances (1)

Council funded from ‘one-off’ resources:

Site purchase £4M plus £0.5M for separating services

£1M for essential infrastructure (£600k unspent to date)

Up to £6.6M of further investment (part from prudential borrowing) is required to complete essential infrastructure works and bring the buildings that have a commercial future back into use

Residential development could raise £4M (off setting borrowing), but is subject to the nature of the design of the development taking into account its heritage value

Proposed Phased Investment Strategy

Rate of investment dependant upon market appetite and the ability of the Council to secure tenant occupation

One buildingat a time

Key Facts – Finances (2)

Two Investment Options:

1. Phased ‘Speculative’ Investment, or

2. Consolidated Approach (complete essential infrastructure works but defer investment until in receipt of funding from land sales)

Both options will be phased investment dependant upon market appetite

Income in 2015/16 is forecast to exceed operational and regeneration costs. Norfolk Infrastructure Fund is to be used to underwrite forecast revenue pressures in 2016/17 and 2017/18

Key Facts – Finances (3)

Up to £5M Heritage Lottery bid is being developed to upgrade hangars from existing condition suitable for storage uses to high grade manufacturing and office space

Note: The Council is in discussions with a manufacturing company about a joint public / private sector bid

Proposals to raise income from digging up the runway withdrawn pending the outcome of the solar farm

Any questions?

Economic Development Sub-Committee Outside Bodies 1. Agri-Tech (Eastern) Programme Board (1) Colleen Walker

This body makes decisions on the eastern Agri-Tech Growth Initiative Programme Board about which projects to fund from this specific Regional Growth Funded scheme.

2. BID (Norwich Business Improvement District) (1) George Nobbs (Richard Bearman sub) The Norwich BID is run for local businesses by local businesses. It aims to

make a clear positive impact on the vitality of the City centre and the business within it.

3. Rev Active (1) No appointment 4. Norwich Airport Consultative Committee (1) Shelagh Gurney, Sub David Collis

These meetings are a DfT requirement to enable aerodrome operators and communities in the vicinity of the airport to discuss operational and business matters affecting their interests.

5. Norwich Airport Board (Non-Executive Director) (1) George Nobbs (Sub Mike Sands). 6. Norfolk and Suffolk Energy Alliance (NSEA) (1) Martin Wilby

A partnership of five local authorities, including NSEA, the two Chambers of Norfolk and Suffolk and the East of England Energy Group, which aims to promote the two counties for investment linked to the energy sector, with a primary focus on offshore renewables.

7. Norfolk Rail Group (4) Andrew Boswell Brian Long

Bev Spratt Michael Chenery

To consider strategic rail policy issues and respond to such issues as they arise, and lobby and pursue rail policy objectives on a continuing basis between Norfolk Rail Policy Group meetings.

8. Norfolk Chamber of Commerce and Industry (1) John Timewell

Norfolk Chamber of Commerce is an independent, not-for-profit Company that aims to support its membership be more successful and to improve the Norfolk economy.

9. King’s Lynn Town Centre Management Partnership (1) No appointment 10. Local Enterprise Partnership (LEP) (1)

George Nobbs The LEP is the public/private economic development partnership for Norfolk and Suffolk.

11. Moving Thetford Forward Board (3) Denis Crawford Terry Jermy Steve Morphew (if he so wishes, otherwise a vacancy)

The aims of the Moving Thetford Forward (MTF) Partnership are to facilitate and accelerate the delivery of growth and economic development of Thetford, assist the regeneration and renaissance of Thetford for all its residents, positively engage with all those with an interest in Thetford, including the public, local businesses, landowners and public bodies and positively communicate the benefits and potential of Thetford, in order to raise its profile and encourage investment in the town.

12. Moving Thetford Forward (MTF) Programme Delivery Panel (2) Denis Crawford Terry Jermy

The MTF Panel is made up of representatives from Town, Parish, District and County Councils together with a community/third sector representative..

13. New Anglia Skills Board for Norfolk and Suffolk (1 plus 1Substitute)

Bev Spratt

A sub group of the LEP Board which is tasked with steering the implementation of the Greater Norwich/ Greater Ipswich City Deals and the Strategic Economic Plan. Membership consists of representatives of the Further Education sector and training providers with employers. Both Norfolk and Suffolk County councils are represented and can nominate a substitute.

14. Great Yarmouth Town Centre Partnership Company (Gt. Yarmouth) Ltd (1) Colleen Walker The Partnership meets and discusses all relevant issues concerning the Town Centre. 15. Heritage Economic & Regeneration Trust (1)

No appointment 16. Hethel Innovation Ltd (2) Bev Spratt

John Timewell

Runs Hethel Engineering Centre and provides innovation-led business support to businesses in Norfolk/East of England.

17. Great Yarmouth Economic Forum (1) No appointment. 18. Great Yarmouth Port Authority (1) Patrick Hacon (to May 2016)

The Great Yarmouth Port Authority is the parent body of the Outer Harbour. It is a Trust Port deriving its income from Pilotage Charges on commercial shipping entering the port.

19. Eastport – Community and Marine Liaison Committee (1) Colleen Walker

To exchange information, ideas and proposals for discussion between the constituent interest groups and the Port’s CEO and Harbour Master, thus improving co-ordination and understanding between the different port users and interest groups within Great Yarmouth with relevance to the operations of the Port.

Member representative recommends re-appointment 20. Green Britain Centre, Swaffham (1) No appointment. 21. Great Yarmouth Development Company - Area Board (1) Colleen Walker The Norfolk Development Company was established to promote economic

development on behalf of the local authorities of Norfolk, with an initial emphasis on physical regeneration and development. The company provides a structure for joint ventures which enables new projects to be agreed and implemented more quickly. Individual companies can be established – the first to do so was the Great Yarmouth Development Company, a 50-50 partnership between the County Council and Great Yarmouth Borough Council.

The agreement states the representative should be the lead member for Economic Development

The current Member representative and the Company recommend re-appointment.

22. EU Projects

France (Channel) - England Cross Border Programme Monitoring Committee (PMC) (1)

Bert Bremner (Tony White Sub) Two Seas Cross-Border Programme Monitoring Committee (1) Mike Sands (Tony White Sub)

The role of the committees is to set the policy framework and take strategic decisions in relation to these funding programmes. As we develop the next set of programmes (covering the period 2014 - 2020) the PMCs will be consulted on the future programme priorities and structures and the County Council has an important role in shaping these.

23. East of England Energy Group (EEEGr) (1) No appointment 24. Local Transport Body (LEP sub Group) (1)

Stan Hebborn

25. Royal Norfolk Agricultural Association (1) Ian Mackie

The objectives of the Association are to promote, through the Royal Norfolk Show and other events, the image, understanding and prosperity of agriculture and the countryside.

26. The Norfolk, Suffolk, Essex China Partnership (1)

George Nobbs

Colleen Walker (sub) (It was agreed to clarify the appointment process for this substitute post and if appropriate report back.)

The Partnership consists of the three leaders of the authorities, who have signed a Memorandum of Understanding to develop the Partnership with Jiangsu Province. They meet quarterly to oversee the progress of the Partnership.