Derry looks to capitalise on culture

For Derry, 2013 is a significant year. The city, Northern Ireland’s second largest with a population of more than 100,000, is the first ever UK City of Culture. This year also marks the 400th anniversary of King James I granting a Charter to the city, which he renamed Londonderry, a title which subsequently became contentious.

However, it is the UK City of Culture title that is now making the headlines. Derry beat off competition from other players, including Sheffield and Birmingham, and winning has provided a much-needed boost for the city, both economically and emotionally.

Derry has long been viewed as a poor relation to Northern Ireland’s capital, Belfast, which has seen major regeneration and investment over the past 20 years.

Being made City of Culture has helped Derry to fast-track developments, some of which were contained in the One Plan, a single regeneration scheme for the city. These schemes include redeveloping the former Ebrington army barracks, the upgrade of the railway line, and a multi-million pound revamp of the public realm.

To date around £80m has been spent on substantial infrastructure investment, while £10.1m has gone on the cultural side.

The investment, a mix of public and private sector money, has paid off as early figures show that visitor numbers have increased rapidly.

More visitors has meant a rise in the number of new cafes and restaurants, giving a boost to local employment, and booming trade for hotels (see panel).

“People are starting to take more pride in the city, and have more belief in it,” says Aaron McElhinney, of local estate agent Paul O’Keefe. “For years we have been neglected but now things are finally turning round. People are gaining confidence.”

But what about when 2013 is over; what legacy will the City of Culture accolade leave?

Ben Turtle, head of Savills, Belfast, says: “As Derry is the first UK City of Culture, it is difficult to forecast what impact this will have.

“In the short term it is likely to push up occupancy rates at Derry’s hotels and create a number of short-term employment opportunities to support the numerous events being staged in the city.”

While welcoming additional employment, McElhinney warns: “We need to create more jobs that aren’t just reliant on tourism.”

Colm Cavanagh, business development manager at North West Regional College, and chair of London˜Derry Connections, agrees: “We need entrepreneurship to create the jobs ourselves. When outside firms see people helping themselves it makes a place more attractive.

“We have got to focus on the infrastructure and improving and expanding the A5 and A6 motorways. And we need to grow the local university to 10,000 students – that is the number one priority.”

Oonagh McGillion, City of Culture legacy director, says: “We will commit to a three-year investment plan to help us build towards 2020, and review it in year two to see what we can do beyond that.”

Pointing to Liverpool’s status as European City of Culture in 2008, Jim Roddy, Derry’s city centre manager, says: “In surveys, 85% of people said that Liverpool was a better place to live in after it gained the title.”

It is estimated Liverpool benefited to the tune of £800m.

But there is still plenty to be done. Roddy says: “We are a city emerging from conflict and are almost a generation behind other cities, but we are becoming more cosmopolitan.

“The city is putting a major focus on direct investment. The quality of life is very good here. The growth of tourism has become a major economic factor and this, together with the service industry, is sustaining jobs. The City of Culture award has given people great focus, and shown what’s at their fingertips.”

The problem with planning

Brian McCormick is one of Derry’s most prominent local developers. He has built, or been involved in numerous developments in and around the city. ButÊhe has also been involved in schemes rejected or stalled by the planning service, which comes under the remit of the Department of Environment for Northern Ireland.

One such project, called H2, is for 3,500 homes and a supermarket, and has been sitting with the planners for 14 years. McCormick believes this planning lethargy has held back growth in the city.

“It takes longer to get planning than it does to build anything,” he says. “There’s something not right in the concept, but it’s become standard practice. Planning has held back the city. I have no doubt that we have lost out on loads of things.”

McCormick adds: “In a downturn planners should be active in securing approvals and trying to bring in projects, rather than reducing the speed of processing them, because approved projects are a fabulous way of stimulating the economy. Yes, you need control, but there’s a difference between control and closing the market down.”

McCormick is not alone in his views. John Bates, Premier Inn’s head of acquisitions, UK & Ireland, whose hotel got planning within 12 months, says: “Things in Northern Ireland are never straightforward.”

But the DOE minister, Alex Attwood, strongly rebukes the criticism. Listing a number of projects that got permission, such as 300 hotel bed spaces and approval for Ebrington Square, he says: “These are representative of how DOE and planning work for Derry.

“Are there more corners to turn? Yes, but to claim that Derry is a difficult town ‘for planning’ and is ‘losing out on loads of schemes’ is extravagant and wrong.”

He adds: “Planning is more fit for purpose and becoming fitter. The evidence confirms that two-thirds of article 31s (ministerial decisions) from two years ago are now decided, and a new stream of decisions on Derry applications is due shortly.”

Referring to McCormick’s H2 project application on Buncrana Road, Attwood says: “It has been an extremely complex application with multiple owners; a decision and an Article 40 Agreement had been imminent and was ready to issue from DOE Planning’s perspective in late 2008 but, due to the economic downturn, legal issues and changes in ownership with the consortium, this did not materialise.

“Since then, as a result of changes in the market, DOE Planning has been engaged with the consortium and required stakeholders to address the changing circumstances to bring this to a positive conclusion.”

Planning powers are set to be transferred to local councils by 2015.

Hotel boom

Brian McCormick is one of Derry’s most prominent local developers. He has built, or been involved in numerous developments in and around the city. ButÊhe has also been involved in schemes rejected or stalled by the planning service, which comes under the remit of the Department of Environment for Northern Ireland.

One such project, called H2, is for 3,500 homes and a supermarket, and has been sitting with the planners for 14 years. McCormick believes this planning lethargy has held back growth in the city.

“It takes longer to get planning than it does to build anything,” he says. “There’s something not right in the concept, but it’s become standard practice. Planning has held back the city. I have no doubt that we have lost out on loads of things.”

McCormick adds: “In a downturn planners should be active in securing approvals and trying to bring in projects, rather than reducing the speed of processing them, because approved projects are a fabulous way of stimulating the economy. Yes, you need control, but there’s a difference between control and closing the market down.”

McCormick is not alone in his views. John Bates, Premier Inn’s head of acquisitions, UK & Ireland, whose hotel got planning within 12 months, says: “Things in Northern Ireland are never straightforward.”

But the DOE minister, Alex Attwood, strongly rebukes the criticism. Listing a number of projects that got permission, such as 300 hotel bed spaces and approval for Ebrington Square, he says: “These are representative of how DOE and planning work for Derry.

“Are there more corners to turn? Yes, but to claim that Derry is a difficult town ‘for planning’ and is ‘losing out on loads of schemes’ is extravagant and wrong.”

He adds: “Planning is more fit for purpose and becoming fitter. The evidence confirms that two-thirds of article 31s (ministerial decisions) from two years ago are now decided, and a new stream of decisions on Derry applications is due shortly.”

Referring to McCormick’s H2 project application on Buncrana Road, Attwood says: “It has been an extremely complex application with multiple owners; a decision and an Article 40 Agreement had been imminent and was ready to issue from DOE Planning’s perspective in late 2008 but, due to the economic downturn, legal issues and changes in ownership with the consortium, this did not materialise.

“Since then, as a result of changes in the market, DOE Planning has been engaged with the consortium and required stakeholders to address the changing circumstances to bring this to a positive conclusion.”

Planning powers are set to be transferred to local councils by 2015.