Agenda item

Finance and Economic Development – (C-059-2020-21) – these sites forms part of the long-term commercial property investment holdings of the Council, generating employment in the District and regular rental investment income for the Council.

(1)          Cabinet recommended to Council to approve the inclusion of the re-development of Units 50, 51-52, 60 and Unit 10 Cartersfield Road, Waltham Abbey, EN9, in the Capital Programmes Budget for 2021/22; and

(2)          Cabinet granted Delegated Authority to the Portfolio Holder for Commercial & Regulatory Services to appoint a Project Manager on completion of the tender process and approve the indicative budget for projected costs from commencement to completion.

The Finance and Economic Development Portfolio Holder and the Commercial and Regulatory Services Portfolio Holder, Councillors Philip and Patel, jointly introduced the report on the redevelopment units in Cartersfield Road, Waltham Abbey.

Units 50, 51-52, 60 and Unit 10 were industrial warehouse units located at Brooker Road Industrial Estate, Waltham Abbey. They formed part of the long-term commercial property investment holdings of the Council, generating employment in the District and regular rental investment income for the Council.

The Asset Management Team had identified an opportunity for active asset management on this part of the estate. This followed a substantial fire in March 2018, subsequent demolition and the expiry of a number of the commercial lease agreements.

Market appraisals have confirmed that there was opportunity to demolish the remainder of the site, re-develop into modern industrial units and thereby improve the regeneration of the area, the employment prospects, the rental income and capital value of EFDCs property holdings.

In September 2020 planning consent was granted for such a scheme of light industrial units. EFDC was now required to formally tender for the Professional and Project Management Services in order to undertake the redevelopment from pre-works, demolition through to construction and post-completion sign-off.

Decision:

(1)          Cabinet recommended to Council to approve the inclusion of the re-development of Units 50, 51-52, 60 and Unit 10 Cartersfield Road, Waltham Abbey, EN9, in the Capital Programmes Budget for 2021/22; and

(2)          Cabinet granted Delegated Authority to the Portfolio Holder for Commercial & Regulatory Services to appoint a Project Manager on completion of the tender process and approve the indicative budget for projected costs from commencement to completion.

Reasons for Proposed Decision:

Adopting the Recommendations will allow completion of the project. This is in line with the adopted Asset Management Strategy, Medium Term Financial Strategy and Corporate Plan.

Specifically, this pursues:

1.         Stronger Council: building improved units will increase the rental income once let achievable on this land, the capital value of EFDCs holdings and therefore long-term financial security.

2.         Stronger Place: enhancing local regeneration via new high quality environmentally friendly units. Existing units are partially demolished following the fire, and the remainder are old asbestos containing stock coming to the end of economic life and will require increasing expenditure and decreasing rental income.

3.         Stronger Communities: improving opportunities for immediate employment (via the project works and building works) and high value employment (from the completed units once let).

Other Options for Action:

Take no further action in progressing re-development. This will save initial development costs. It however should be noted that the planning consent will lapse, and the rental and capital value of the existing units is declining due to age and in the medium term the units will need to be demolished and redeveloped due to necessity. It should be further noted that Energy Performance Certificate regulations may soon make it impossible to let these units at all if they cannot be bought into certain categories of energy performance.