The local council’s plans to revitalise the industrial town face big obstacles, not least access to funding. Melanie Clarkson reports
The people of Rotherham have a reputation for being made of sterner stuff than most. That inner steel will be called upon as the town forges ahead with developments that look increasingly ambitious in the current climate.
Two massive schemes are muscling their way through the pipeline – the Civic Centre Quarterand the £300m YES! Project
Backed by regional development agency Yorkshire Forward as part of its regional Renaissance Towns programme, Rotherham council has proposed a £2bn renaissance of the town centre. At the heart of the plans lies the proposed Civic Centre Quarter,along with flats, shops and a theatre.
Evans Property Group recently won planning consent for a six-storey, 172,000 sq ft flagship building on the former Guest & Chrimes site – a key part of the Civic Centre Quarter -which has been vacant for more than a decade. The development will comprise offices, residential and leisure space, which will hopefully include a hotel.
Although Evans is reluctant to elaborate on its proposals, Beverley Smith, head of planning, development and regeneration at GVA Grimley’s Leeds office, which advised Evans, says: “The scheme needs to be done, and I believe the plans are realistic as there are a number of different sites that each have their own characteristics.”
It is hoped that the scheme will give a much-needed boost to Yorkshire Forward’s regeneration of the town centre, and the aim is to have the first building up by 2012.
However, property firm Satnam has lodged an application for a judicial review into the planning decision, which has caused a delay. Neither party would comment on the proceedings.
Rotherham council claims that its aspirations for the industrial town are achievable, even amid the recession. But securing funding for such a major project is a big concern.
Paul Woodcock, director of planning and regeneration at the council, says that the funding tap has not been completely switched off. He says: “The development will be funded by a mix of money from the council, Yorkshire Forward, the housing market renewal programme and the private sector. That’s four good sources.”
Few would deny that there is potential for development in Rotherham. The creation of the civic centre alone will create a swath of vacated space in the town centre, including the existing civic site, the library and the planning office.
Cultural quarter
Whether anyone will want to develop this space is another matter.
One idea being considered by the council is for Tesco to relocate its store from Forge Island on Market Street to the Civic Centre site. This would free up space for a cultural quarter, complete with cinema and theatre. Local property players are keen for this to happen. DTZ’s Philip Dawson says: “The current Tesco is inadequate and does not present a good image for the town, so I think this proposal would help to boost the retail offer.”
That retail market has suffered badly. It has never been Rotherham’s strong pointbut,with the recession damaging local demand,few retailershave the town on their most-wanted list.The council has talked of attracting niche retailers in a bid to differentiate the town’s offer from that of its neighbours.But others question whether Rotherham is batting out of its league.
DTZ’sDawsonsays: “Rotherham needs to pull its socks up a little bit. There are sites with potential, but demand in Rotherham is not as high as it is in neighbouring areas. Sheffield is on its doorstep, where occupiers can move into new grade A accommodation that they don’t have to pay too much for.”
Casualties of the recession are emerging. A prime example is the council’s and Liverpool-based Iliad’s joint Westgate Project, where plans for a 33,000 sq ft contemporary office building in the All Saints Quarter have just been shelved.
“They were waiting for a prelet and it never came,” says Dawson.
Yet, there are some positives to be drawn. Agents point to residential, were Iliad has had reasonable success with its Imperial Building as part of the Westgate Project. Of the 19 homes here, 13 have already been sold.
“I think we’re bucking the trend with residential because of the way we structured the deal with Iliad, which means we are able to ensure that the quality for price is very good,” saysKarl Battersby, strategic director ofenvironment and development services at Rotherham Investment & Development Office.
This deal has allowed Iliad to take a long lease from the council on each site as itstarts work. Once the site has been developed out to the point of practical completion,Iliad pays the council a lease premium.
Rotherham council also assisted with the development by introducing housing market renewal pathfindergrant funding to bridge the gap between values and costs.
That said, it is going to be an ongoing challenge for Rotherham to keep on bucking that trend in the months that lie ahead.
Yes! it will happen, says council
At Rother Valley Park, just outside Rotherham, Oak Holdings and Rotherham council insist that their joint £300m YES! Project will go ahead. Some hope the choice of name does not prove unfortunate.
There have been few signs of life at the vast indoor leisure and tourism scheme since the development agreement was signed last year. It has been so quiet that one agent claims to have “forgotten about it”.
As a reminder, the plan is to transform 320 acres of brownfield land adjoining the Rother Valley Country Park in Rotherham into a dazzling entertainment complex, complete with spa hotel, theatres, sports centre, golf range, restaurants and bars.
Karl Battersby, strategic director of environment and development services at Rotherham Investment & Development Office, says: “We’re still very much on track. It has outline planning with Oak Holdings, which has just started to manage it for us. Obviously, it’s difficult in the current climate, but there is interest.”
Market at a glance
Office rents remain steady at £13.50 per sq ft
There has been very little activity in the retail market. Zone A rents are £77 per sq ft
Industrial rents for small units up to 5,000 sq ft are £5 per sq ft. Older units are available for around £3.50 per sq ft
Dutch-owned Pegler Yorkshire Group, which makes fittings, taps and valves, has just signed up to lease 104,000 sq ft of distribution and warehouse space on Brookfields Park, at Manvers, from next year
The Advanced Manufacturing Park continues to be developed and to win occupiers. Park developer UK Strategic Partnership – a joint venture between landowner UK Coal and developer Strategic Sites – has let space to Swedish giant Dormer Tools. Two other deals have recently been signed and remain confidential
