PAPER ED
Purpose : for Decision
REPORT TO THE EXECUTIVE
Date
: 25 AUGUST 2004
Title : REPORT OF THE ISLE OF WIGHT ECONOMIC PARTNERSHIP
REPORT OF THE PORTFOLIO HOLDER FOR ECONOMIC DEVELOPMENT,
UK AND EU, REWGIONAL ISSUES
IMPLEMENTATION DATE : 7 SEPTEMBER 2004
1
To
receive, as part of the performance management system, the quarterly report of
the Isle of Wight Economic Partnership and consider what, if any, actions to
take in order to ensure the delivery of economic development objectives.
.
2
On
3rd December the Executive resolved to continue to monitor the work
of the IWEP on a quarterly basis as part of its contract management role. The
summary of the IWEP's activities attached to this report is provided for this
purpose and an officer from the IWEP will attend to answer Members' questions.
3
Appendix
1 covers the activities of IWEP as reported to the IWEP Board of Directors by
the Managing Director in July 2004. It provides an overview of performance on
all IWEP activities and is not restricted to the relatively small proportion of
those activities which are funded by the Council.
4
This
extra information allows the Executive to keep under review the totality of the
IWEP’s contribution to economic development activity on the island and consider
whether the Council's own contribution is appropriate in relation to the
activities undertaken by other agencies.
5
IWEP
activities particularly worth noting described in Appendix 1 are:
AIF (Area Investment
Framework) –
the draft performance plan for this has now been submitted to SEEDA, the
Council and the LSP for comment with the LSP passing a motion of support. The AIF will be the key “business plan” for
economic development activity on the Island for the next few years. Identifying priorities in this will be of
paramount importance in obtaining funding from a variety of sources to help
implement projects and move the economy of the Island forward. SEEDA have committed an initial £800k
towards the implementation of the plan, which will act as leverage for other
funding. The Council’s dedicated
External Funding Officer will play a key role in helping identify and access
other sources of money to implement the plan.
Cowes Waterfront – this continues to make good
progress and is seen as a flagship project, not just for the Island, but for
the SE region. It has been re-confirmed
that the overall initiative covers the whole of the Medina Valley.
PSA Target 11 – this has been the subject
of previous reports, but in spite of various problems 75% of the annual target
has been achieved in 50% of the time (ie six months). Negotiations with ODPM continue to try and resolve any potential
problems with the delivery of this target (see QPMR report to this meeting).
Leader+ - Two key projects are now going
ahead to provide business support and small grants to micro-businesses in rural
areas on the Island. As a high
percentage of the businesses on the Island fall into this category, it is an
important sector of the economy and deserves to have as much support as
possible.
Enterprise House – The Council has been paying the rent on this property since it
was vacated by the IWEP in January 2002.
They have now agreed to enter into a new 15 year lease with
the owners of the property Enterprise House and
it is anticipated that Council staff will be relocated there during October
2004. Close working relationships between the
Council and IWEP have also resulted both in a renegotiate rent on the Innovation Centre and on the rateable
values of both properties.
6
The Council delivers its economic development activities through the
IWEP. These contribute to the
achievement of the Corporate Objective “encouraging job creation and economic
prosperity” contained in the Corporate Plan. The Executive should be aware that
although economic development is a discretionary function for the Authority its
significance will be increased in the next CPA round (2006) when these
activities will be included in the assessment.
7
In addition to
contributing to 2 PSA targets (supporting business & job creation, and
encouraging over 50s into work), the IWEP's contribution is crucial to
achieving the recommendations of the Best Value review of Economic Development
and the Audit Commission report on Partnerships. The completion of any
outstanding recommendations will be considered as part of the review of the SLA
for 2005/06.
8
As a report on
past activity, consultation in the preparation of the report is unnecessary.
However, Economic Development, Planning and Tourism Select Committee continue
to receive reports from the IWEP on a regular basis so that it can examine the
extent to which the island is being well served by the Executive’s approach to
economic well-being and development and, by extension, by the current multi
agency activity.
9
For the
financial year 2004/05 the Council will contribute £94,000 in cash to the IWEP,
in addition to which there are seconded staff as described in the Service Level
Agreement. The Council
continue to meet the agreement to pay rent on Enterprise House should the IWEP
be unable to do so. This amounts to
£135,000 per year paid in quarterly instalments of £33,750. The
IWEP's growth bid for the financial year 2004 / 05 was considered, together
with all other growth bids, as part of the budget making process concluded by
Full Council recently, but was not approved.
LEGAL IMPLICATIONS
10
The council has a duty
under the Local Government Act 1999 (and subsequent circulars) to deliver best
value. In respect of economic development and regeneration it is considered
that this is best accomplished through the letting and management of the
contract with the IWEP.
11
More significantly,
there is a duty to keep under review the use of discretionary economic
well-being powers under part 1 Local Government Act 2000.
The council has a duty under the Local Government
Act 1999 (and subsequent circulars) to deliver best value. In respect of economic
development and regeneration it is considered that this is best accomplished
through the letting and management of the contract with the IWEP.
More significantly, there is a duty to keep under
review the use of discretionary economic well-being powers under part 1 Local
Government Act 2000.
i To receive the report from the IWEP and
resolve to take immediatewhat
actions should be taken in respect of any
areas of concern
ii To receive the report from the IWEP and wait
until the next quarterly report before deciding if there are additional actions
the Executive would wish to see being taken
12. The
Executive resolved in December that it would continue to undertake contract
management itself through the continued receipt of quarterly reports.There are no immediate
actions which appear necessary in the light of the information set out in the
attached report.
RECOMMENDATIONS To receive and
endorse the report from IWEP |
143 Service Level Agreement between the
Council and IWEP
154 Legal
Agreements between the Council and IWEP undertaking to guarantee payment of the
rent on the properties known as Enterprise House and the Innovation Centre, St
Cross Business Park, Newport, should the IWEP be unable to do so.
Appendix 1 – IWEP Activities –
July 2004
Contact Point :Lesley Williams, Principal Economic
Development Officer
Tel: +44 (0)1983 823797 email:
[email protected]
|
Strategic Director for
Environment Services |
HARRY REES Portfolio Holder for
Economic Development, UK and EU, Regional Issues |
MANAGING DIRECTOR’S REPORT
July 2004
1 Introduction
Our recent activity has included the ongoing
development of the Area Investment Framework and the Company re-structure.
One highlight has been a recent trip to Buxton to
review their regeneration strategy. Buxton is an isolated town in the High Peak
of Derbyshire with a population of 20,000 and an average salary of £15,900,
roughly equivalent to Ryde. They have
received only £3.5m of SRB money however they have attracted additional funds
from other organisations such as English Heritage, Heritage Lottery Fund, LSC,
Aggregates Levy Board etc etc. their achievements are:
·
1200 student University
campus on Hospitality & Tourism (plus a 285 bed accommodation block)
·
87 bed spa hotel with
retail outlets
·
150 new jobs in
relocation of Health & Safety directorate
·
re-furbished public
gardens and associated opera house complex
·
new public realm
throughout and establishment of several international events
The Isle of Wight Economic Partnership (IWEP) and
Isle of Wight Council (IWC) hosted a visit by Pam Alexander the Chief Executive
of SEEDA on 7th-8th June. This included
a business dinner on the 7th, followed by a tour of Ryde and East
Cowes on the 8th. Pam now has a clearer
idea of where the Island sits within the region and is very keen to support our
activities.
2 AIF
A draft AIF Performance Plan has been submitted to
SEEDA, IWC and the LSP, with the LSP passing a motion of support at its last
meeting. I am awaiting comments back
from SEEDA and IWC, prior to formally submitting the Plan to SEEDA during
July. I anticipate we will receive the
SEEDA AIF monies during September.
Management of the AIF is developing with a proposed
structure being approved at the last meeting of the LSP. AIF management resides with the IWEP with
the development of a Local Investment Support Group (LISP) and an Investment
Sub Group (ISG) being crucial in the delivery of our objectives. The LISP will be made up of the Chief Executives
of the key Island and regional bodies.
They will set the priorities for investment and ensure that their own
organisations will deliver in line with the main objectives. The ISG will help appraise and commission
via the IWEP the various projects that are needed to deliver our objectives. The inaugural meeting of the LISP is on 19th
July.
3 Cowes
Waterfront
The three partners (IWC, SEEDA and IWEP), have
re-confirmed that the overall Initiative covers the whole of the Medina Valley
including Newport and will be delivered by a number of projects, eg East Cowes
project, Newport Harbour project etc.
This ensures we keep a single identity for the initiative.
The East Cowes project is now subject to a
master-planning phase, beginning with a local stakeholder meeting on 21st
July. This will be by invitation only
and will open up to more public meetings during September.
Three companies are now on site with approximately
150 jobs. Several new tenants have
shown interest in the site, one being a new inward investment in the composites
sector.
The website is launched and regular e-mail updates
will be started shortly. A newsletter
(1 of 4) has been produced and will be distributed to 10,000 homes in Cowes and
East Cowes in July
Cowes Week invites will be sent out shortly, we
will again be hosting both the Chief Executive and the Chairman of SEEDA during
the week.
We anticipate hosting an Olympic Party on the
Friday to celebrate our sponsorship of Shirley Robertson's team and the four
other Islanders going to the Olympics.
Details will be issued shortly.
4 Branding
- 'Inspire'
The 'Inspire' document is now finished and awaiting
approval of the AIF Performance Plan.
Again the LSP passed a motion of support at its last meeting. I will be presenting to the current
Regeneration Sub Group on 15th July for their information.
5 Innovation
Centre/Enterprise Hub
Matrix e-Business has become our 4th graduation
from the Innovation Centre. They have
now moved to their own premises in Wootton after nearly 3 years with us. The Company started with just 1 person and
has now grown to 4 full time employees.
We will be issuing a press release shortly.
During July we are due to re-contract with SEEDA to
deliver their Enterprise Hub initiative.
I anticipate this will be completed by the end of August and will be
funded to the tune of £250,000 over 3 years
6 Enterprise
House
The Council has agreed to enter into a new 15 year
lease with MJH Developments. They
anticipate re-locating into Enterprise house during October 2004. This will provide us with an immediate
saving of approx £10,000 (£20,000/annum) on Rates, insurance etc.
Our closer working relationship with the Council is
already bearing fruit, with the Council's Head of Property Services (Tony
Flower) assisting us in re-negotiating both the rent on the Innovation Centre
and the Rateable value of the buildings.
This has lead to an immediate Rate rebate of approx £33,000 and an
annual reduction on the Innovation Centre of approx £10,000.
7 PSA
Targets
These targets are being delivered on behalf of the
Council over the next 2 years. If 100%
successful in achieving the targets we will receive a windfall of approx
£500,000 in mid 2006.
PSA target 3, (job creation) is ahead of profile.
PSA target 11, (job creation for over 50's) is
under review with the Council due to a discrepancy in the measurement
criteria. We are currently at approx
75% of first years target after 6 months operation.
8 Rural
Development Programme (RDP) & SRBV
Both programmes were completed at the end of March
2004. All targets were met, with the
RDP being evaluated over the next year.
9 SRBVI
Now in year 5 of its 6 year programme, the Ryde
initiative is now bearing fruit.
Achievement highlights are as follows:
- £750,000/annum into the Ryde economy from Ryde
Festival & carnival
- reduction in empty shops from 16% to 2%
- approx 100 jobs created in retail
- Island Build project creating new skills and 56
jobs
- Reduction in temporary and permanent exclusions
(Bishop Lovett) by 40%
- 250,000est. attending arts festival & carnival
The next major step is the development of the Ryde
Town Improvements project. This will combine approx £2m of SRB money with £5m
of Local Transport Plan (IWC) money and £750,000 of Heritage money. A workplan has been put together under Derek
Rowell's direction and has been submitted to the relevant funding bodies.
NB - It will be key for the IWEP and the IWC to
maintain a focus on this project to ensure good management and delivery.
10 Healthy
Living Programme
The remaining grant of
£200,000 will be spent in full by the end March 2005. This will sustain the programme for a further year.
11 Leader
+
We have contracted with the Chamber of Commerce to
deliver business support in the rural areas.
This will include local clinics on the Island where the support will be
taken out to local companies.
Unlike many areas of the Country, the Isle of Wight
has spent its allocation of money, which in turn has allowed us to attract a
further £135,000. This will be used to
support projects which have already been submitted and will enable us to revive
the Small Grants Scheme.
12 Market
Towns Initiative (MTI)
The Isle of Wight is eligible for a further
£260,000 over seven years. Current MTI
towns will not be eligible. There are
various criteria, including the need to achieve SEEDAs Tier 3 targets, with the
minimum grant being £40,000.
East Cowes, Brading and Wootton are currently
working up bids, with East Cowes being the highest priority as part of the
Cowes Waterfront area.