Stroud District Employment Land Study

Report Findings and Recommendations

Presentation 6th February 2013

Peter CromptonDirector of

Regeneration & Planning, BE Group

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STUDY AIMS

• Assess District’s economy

• Review scale and distribution of employment land and premises

• Review economic growth forecasts to 2031

• Identify employment land and premises requires by scale, sector, nature to 2031

• Make policy recommendations

EXPLANATIONS

• Policy Off and Policy On

• Sustainable Urban Extension

• Javelin Park

• Solus Sites

• Non B Class Use Employment

• Key Employment Sites

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STRATEGIC ECONOMIC OVERVIEW

• Prosperous economy emerging out of recession ahead of others

• High resident employment rates

• Highly qualified resident population

• Residence-based earnings above average

BUT

• A vulnerable dual economy and economic structure

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SECTOR GROWTH BY BROAD SECTOR GROUP

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KEY EMPLOYMENT SUB-SECTORS IN ADVANCED MANUFACTURING

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KEY EMPLOYMENT SUB-SECTORS IN ENVIRONMENTAL TECHNOLOGIES

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SOCIO-ECONOMIC PROFILE FINDINGS

• 5,800 + VAT registered businesses

• Micro-businesses share – 85 percent

• Small businesses share – 12 percent

• Affluent area, limited deprivation

• Net exporter of labour

• Public sector is largest jobs source

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PROPERTY MARKET ASSESSMENT

• Industrial strength – office weakness

• Three key geographic market areas:

o Hardwicke

o Stonehouse

o Stroud Valleys

• M5 junctions meet sub-regional/ modern space demand

• Stroud Valleys – business incubator and grow-on locations for local start ups

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PROPERTY MARKET ASSESSMENT

• Industrial demand greatest for large units (2,001-5,000 sqm)

• Few good quality industrial premises available

• Freehold demand but leasehold supply

• 6.5 percent of industrial floorspace vacant – suggests undersupply

• Stonehouse Park – only modern offices

• 8.8 percent of office floorspace vacant – suggests oversupply BUT ….

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CURRENT LAND SUPPLY

• Headline figure – 57.91 ha (24 sites)

• Bias towards small sites

• Over half (31 ha) is at Sharpness and Cam/Dursley

• 43 percent of land (one third of sites) constrained

• Industrial/warehousing use dominates. Only 3 percent specifically suited to offices

• No immediately available land but 59 percent could be in medium term

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EXISTING EMPLOYMENT AREAS

• 44 Employment Areas and 362 ha

• 46 ha remains available across 7 sites

• 39 ha considered appropriate for regeneration/remodelling across 8 locations

• 11 sites identified as Key Employment Sites (NPPF related)

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ECONOMIC KEY ISSUES AND PRIORITIES

• Sector balance needs to improve to reduce dependence on manufacturing

• Business services under-represented

• Retention of greater share of highly skilled residents

• High spend potential of residents is significant asset

• High tech manufacturing and environmental technologies convergence and growth potential

• Entrepreneurial District potential

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FUTURE EMPLOYMENT LAND SUPPLY

Model Land Stock 2012,

ha

Land Need 2012-2031,

ha

Buffer (5 years

take-up rate), ha

Surplus (Shortfall),

ha

Assumptions

Historic Land Take-Up Rate

57.91 +53.39 +14.05 (9.53) Based on historic (21 years) take-up of 2.81 ha/pa

Employment based

57.91 +0.76/

-3.19

+14.05 43.10/

47.05

Based on projected growth/reduction of employment in industry sectors

Labour Supply

57.91 +2.26/

+2.64

+14.05 41.22/

41.60

Based on population projection and industry sector changes (growth/reduction) and impact on floorspace (and thus land) need

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NON-B USE CLASS EMPLOYMENTSector Employment

Nos 2012Employment

Forecast Growth

(Decline) to 2030

Additional Land Requirement

Implications for B Class Land

Accommodation & Food Services

3,700 +700 1 ha (for hotel) Potentially a hotel could occupy Business Park location

Education 4,400 (-400) Possible None. New facilities likely to be associated with housing developments

Health & Social Work 5,700 +200 Likely to be limited in scale

Potential for some activities e.g. vets practice, informal health activities to locate on B Class sites or occupy existing office / industrial buildings, based on trend evidence elsewhere.

Residential care homes might pursue stand alone industrial sites where location is considered appropriate from market perspective

Arts, Entertainment & Leisure

1,500 +400 Likely to be limited in scale

None. Activities associated mainly with town centres uses and will occupy either retail properties or be part of new mixed-use schemes

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RECOMMENDATIONS

Current employment land supply definition – 57.91 ha comprising 12 undeveloped but allocated Policy EM5 sites plus 12 unimplemented planning consents

Allocate a further 36.5 ha for the period 2012-2031 (reflects an market equilibrium rate of 7.5 percent of available floorspace)

Review existing Employment Areas’ Regeneration Opportunities identified by the study

Consider new allocations at Quedgeley East; North of Stroudwater Industrial Estate, Stonehouse; an extended Severn Distribution Park, Sharpness

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NEW ALLOCATIONS

Quedgeley East Extension

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NEW ALLOCATIONS

Stroudwater Industrial Estate Extension

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NEW ALLOCATIONS

Severn Distribution Park Extension

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RECOMMENDATIONS

Exclude port-related land at Sharpness Docks from the identified employment land supply figure

Eleven key employment sites designated to be safeguarded for B Class Uses and other employment uses:

• Quedgeley West• Hunts Grove/Former MoD Site 2, Quedgeley• Stroudwater Industrial Estate, Stonehouse• Stonehouse Park, Stonehouse• Bonds Mill Industrial Estate, Stonehouse• Aston Down, Minchinhampton• Draycott Mill Industrial Estate, Cam• Littlecombe Business Park, Dursley• Severn Distribution Park, Sharpness• Bath Road Industrial Estate, Stroud• Inchbrook Industrial Estate, Nailsworth

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RECOMMENDATIONS

Adopt a more flexible approach for Policy EM3 Employment Areas plus the 9 additional sites identified to help facilitate a broad range of economic development , i.e. mixed-use developments

Commission research to identify the full scale and location of unused/underused mill floorspace within the District in order to identify constraints/opportunities

Address lack of modern start up office space with associated business support services by examining feasibility of creating business incubator/serviced offices facility within Council property at Ebley Wharf

Seek to set aside small freehold development plots for owner occupiers. Discuss with County Council such provision on part of their land at Stonehouse

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RECOMMENDATIONS

Adopt the following strategic economic objectives:

a) Create a resilient, high value employment base, capitalising on high tech manufacturing niches; environmental technologies; nuclear supply chain; digital technologies. Tackle local skills gap and issues of suitable sites/premises

b) Create a more balanced, sustainable economy by capturing more business services sector activity

c) Provide a more balanced employment offer, to retain more highly skilled residents that also work in Stroud, and achieve more sustainable travel to work patterns

d) Capitalise on the District’s distinct environment and strong entrepreneurial culture to create an outstanding area to start and expand businesses

e) Capture more of the high resident-based income locally by providing a better evening economy, leisure, culture offer

f) Create a stronger visitor offer to draw in more spend locally