Harrow View Employment
8 December 2011 Our Ref: Q20118
CONTENTS
1 INTRODUCTION 4
2 HARROW IN CONTEXT 6
HISTORY OF HARROW – AN OVERVIEW 6
POLICY CONTEXT 7
SITE CONTEXT & EXISTING USES 9
3 CONTEXT – WHAT HARROW IS LIKE NOW 12
DEMOGRAPHIC PROFILE 12
PREVAILING ECONOMIC TRENDS 12
A PLACE FOR ENTREPRENEURS 14
HARROW’S POSITION AND BRAND 17
4 WHAT IS HARROW’S FUTURE 20
RETAINING & GROWING SMES 20
PROPERTY FOR SMES 21
ATTRACTING INWARD INVESTMENT 23
5 DELIVERING JOBS AND HOMES 28
INTRODUCTION 28
ROLE AND ASPIRATIONS OF THE AREA ACTION PLAN 29
CHANGING PERCEPTIONS 3233
6 THE ROLE OF HARROW VIEW 35
INTRODUCTION 35
MARKET ADVICE 35
HARROW VIEW’S WIDER ROLE 36
OVERARCHING VISION 37
A COMPREHENSIVE RE-DEVELOPMENT 39
PHASING 42
PHASE ONE 43
a) Hotdesking & Business Incubation 43
b) Self-Contained Units 44
c) Serviced Offices and Incubation 45
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PHASE TWO & THREE 47
EMPLOYMENT SUMMARY 49
7 CONTRIBUTING TO WIDER REGENERATION 52
INTRODUCTION 52
EMPLOYMENT OPPORTUNITIES 53
INVESTMENT AND SPENDING 55
ENVIRONMENT & PLACEMAKING 56
COMMUNITY & SOCIAL INFRASTRUCTURE 57
8 DELIVERING THE VISION 58
ANNEX 1 LITERATURE REVIEW AND REFERENCES 61
ANNEX 2 STAKEHOLDER CONSULTATION 64
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1
INTRODUCTION
1.1 The development at Harrow View has the potential to play a major role in the delivery of the aspirations of LB Harrow, the GLA and other stakeholders for the development of the Harrow and Wealdstone Intensification Area (IA). In particular it offers the opportunity to deliver new employment growth and a large amount of family housing and, in doing so, contribute substantially to the regeneration of Wealdstone.
1.2 The Council, together with the GLA, is bringing forward plans for the IA through an Area Action Plan (AAP). This sets out the broad aspirations for how the housing and employment targets for the IA are to be achieved.
1.3 Part of the IA, including the part of the development site known as Harrow View East, is located in an area that is currently designated as a Strategic Industrial Location (SIL). These designations are designed to ensure the sufficient of provision of land for industrial and related sectors within London. 1.4 As this report sets out, this location is not particularly suitable for the heavy industrial uses that
would normally be found in a SIL. This has been recognised by both the Council and the GLA, and the process of creating the AAP sets out the potential for a consolidation of the SIL.
1.5 This report set out how LS Harrow Properties Ltd (Land Securities) sees the site playing a role in both the wider Harrow economy and specifically in the IA; how the proposed uses would fit with the SIL designation and the proposed consolidation; and the role that the site could play in delivering wider ambitions that will help Harrow improve its trend rate of employment growth and deliver regeneration to Wealdstone.
1.6 The first section briefly reviews the established local evidence base in LB Harrow’s Employment Land Review. This has become available since the London Plan EiP and was therefore not available to GLA officers at the time the draft London Plan was produced and the SIL designation retained.
1.7 The following sections then review the current state of the Harrow economy; how it might develop in the future; what would be required to deliver that; and, finally, the role that Land Securities development can play in that process.
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1.8 Although the outline planning application is formed of development parameters, as shown on the parameter plans, this report provides more detail on the possible uses of the site. The application itself does not specify those uses, and they are therefore only indicative of the intentions of the Applicant and would be finalised at the reserved matters stage [or via planning or S106 conditions or commitments]. This enables the report to provide additional background information on what a consolidation of the SIL could mean in terms of employment based on a range of specific intended uses. It should also be noted that job numbers are calculated using the proposed development floorspace rather than the higher figures included in the parameter plans. This approach has been taken to ensure this assessment of employment generation is based on a likely development scenario that could be delivered on-site, whereas using the maximum parameter plans would over estimate the potential number of jobs that could be delivered.
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2
HARROW IN CONTEXT
History of Harrow – An Overview
2.1 Until the 19th Century, Harrow was largely rural and the area around Wealdstone consisted only of a country road linking Harrow-on-the-Hill and Harrow Weald, surrounded by farmland.
2.2 The settlement of Wealdstone clustered around Harrow Station (now Harrow and Wealdstone Station) in the mid-1800s, with Station Road and the High Street (now the A409) linking the settlement to Harrow Weald in the north and Harrow Town in the south by 1865. The Metropolitan Line linked Harrow-on-the-Hill to central London from 1880.
2.3 The Grand Junction Canal and the arrival of the railways allowed the area to flourish both as a residential commuter area and an industrial cluster, as people and businesses escaped congested London.
2.4 Employment shifted from the focus on agriculture and trades dependent on Harrow School, towards industry and out-commuting to the City. Agriculture, which represented around 25% of employment in 1840 had all but disappeared by the Second World War.
2.5 The Kodak Ltd Factory opened in 1890. Its establishment spurred on a number of other factories, especially on the western side of the railway and by 1912 there were six factories, including Whitefriars Glass and Windsor and Newton, employing a total of 1,418 people, most of whom lived locally. Kodak expanded continuously up until 1965, when it extended over 55 acres.
2.6 Manufacturing employment peaked around 1970, accounting for around 30% of employment in Harrow, and has diminished steadily since, whilst employment in the service sector has expanded. The Whitefriars Glassworks closed in 1980, to be redeveloped as housing.
2.7 In response to changes in the global market, employment in Kodak Ltd has been contracting mirroring the decline in manufacturing employment across the UK. Employment at the site has declined from a peak of 6,000 in 1950 to 570 at present.
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2.8 The Borough has become more residential in nature as employment has declined. Access constraints and well established industrial locations at Park Royal, Wembley and the M25 Corridor are better served to accommodate the limited potential for a revival of industrial development. Due to public transport access and labour force strengths, office occupiers should find Harrow attractive but the market struggles to compete against Uxbridge, Watford and Ealing. The retail centre also struggles to compete with Brent Cross and Watford. However the economy has seen significant and sustained growth in service sector SMEs and self-employment and is one of the most entrepreneurial boroughs in London.
Policy Context
Draft National Planning Policy Framework, 2011
2.9 The draft National Planning Policy Framework (NPPF) published for consultation in July 2011 sets out the Government’s economic, environmental and social planning policies for England. This brings together all previous national planning advice into a single document. The draft NPPF includes a “presumption in favour of sustainable development” and sets out the Government’s commitment to securing economic growth and sets out clear objectives which promote a more proactive planning system to support the needs of business and the economy. It states (at paragraph 75) that “Planning policies should avoid the long term protection of employment land or floorspace, and application for alternative uses of designated land or buildings should be treated on their merits having re.g.ard to market signals and the relative need for different land uses.”
2.10 It also states that the planning system can help to achieve the objective to deliver more housing and create strong, vibrant and healthy communities by creating a good quality built environment with good access to social infrastructure.
London Plan, Spatial Development Strategy for Greater London, 2011
2.11 The London Plan is the adopted Spatial Development Strategy for London. A key objective of the London Plan is the delivery of housing to meet the increasing need in London. It sets out specific housing targets for each of the boroughs; Harrow has a minimum ten year housing target of 3,500 homes by 2021.
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2.12 The London Plan estimates that London’s economy will resume growth following the downturn, albeit at a slower rate. Employment growth projections for Harrow (7.6%) are lower than the London average (16.6%) but in line with other Outer London boroughs.
2.13 Harrow and Wealdstone is designated as an Intensification Area. These areas are described as being “typically built-up areas with good existing or potential public transport accessibility which can support redevelopment at higher densities.” The London Plan states that they have significant capacity for new jobs and homes.
2.14 There are two Strategic Industrial Locations (SILs) in Harrow. These are located on Honeypot Lane, Stanmore and Wealdstone Industrial Area. The Application site covers part of the SIL located in the Wealdstone Industrial Area. The London Plan describes Strategic Industrial Locations as the city’s “main reservoirs of industrial and related capacity, including general and light industrial uses, logistics, waste management and environmental industries (such as renewable energy generation, utilities, wholesale markets and some transport functions).” There are currently 59 SILs located within London.
London Borough of Harrow, Local Development Framework, Pre-Submission Core Strategy, 2011 2.15 The Core Strategy is the key document in the Local Development Framework. The Pre-submission
Core Strategy outlines Harrow Council's overarching policy principles for the development of the up to 2026.
2.16 This document sets out the objectives for regenerating Wealdstone town centre, ensuring employment led redevelopment in the surrounding industrial areas including the Harrow View East area of the site. This states that redevelopment should be tailored to local needs and skills, contributing to the area’s long-term growth and vitality. It recognises that manufacturing and the industrial sector are declining in Harrow and expects future growth to be driven by local entrepreneurs and the SME sector.
2.17 The growth and development of the Harrow and Wealdstone Intensification Area is expected to be supported by the delivery of social and physical infrastructure. Developments within the Intensification Area will be required to contribute to new education, community, cultural, recreation and healthcare facilities, as well as open space.
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2.18 The council’s objectives for Harrow and Wealdstone are set out in Core Strategy Policy CS 2.
Site Context & Existing Uses
2.19 Situated in the Marlborough ward and Headstone North ward of the London Borough of Harrow, the site is divided by Harrow View road. These two wards along with Headstone South ward and Wealdstone ward represent the immediate impact area for the development.
2.20 The area of the site to the west of Harrow View is referred to as Harrow View West. This is currently occupied by a surface level car park for Kodak staff and a former privately owned leisure facility which closed in 2011 for commercial reasons. The area to the east of Harrow View is referred to as Harrow View East and is currently occupied by Kodak’s remaining operations and a large area of vacant brownfield land.
2.21 As set out in the policy section above, Harrow View East is covered by a SIL designation. This is unusual as a SIL in that it has a single occupier that uses the site partly for industrial purposes and partly for administrative ones. Kodak currently employs around 570 on the site with 350 in production jobs and 220 in office-based jobs.
2.22 It has never played a role in accommodating the strategically important sectors listed in paragraph 2.79 of the London Plan, nor is it located close to the strategic road network or other infrastructure that would enable it to gain competitive advantage or address broader transport objectives as set out in paragraph 2.80.
2.23 Its designation as a SIL is therefore a result of its historic position as the home of Kodak and it is not clear if its continued designation would comply with Policy EC2.1(h) of PPS4, or with Planning for Growth or the Draft NPPF.
2.24 The current and potential role of the site and the wider SIL designation were considered in the Council’s Employment Land Review (ELR). Which was prepared as part of the evidence base for the Core Strategy.
2.25 Paragraph 3.23 states that manufacturing is over-represented in Harrow, mainly because of Kodak, and that it is declining faster than the London average. It also states (at paragraph 4.17) that:
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“Harrow is not regarded as a major distribution location or one which is suited to larger industrial uses despite a legacy of some manufacturers such as Kodak.”
2.26 The ELR also makes clear that the Site is crucial in meeting wider commercial property needs and that those needs would not fall within the definition of acceptable SIL uses. It states in paragraph 4.32:
“The main opportunity for future growth of the commercial property stock in Harrow was perceived [by agents] to be the Kodak site which lies in a good location close to the mainline station and could accommodate a wide range of commercial property types.”
2.27 It also recognises the importance of the Site as a potential office location. At paragraph 7.19 it states that Kodak and the Civic Centre site comprise 70% of the potential office supply. In the section on office uses in the Policy and Implications section it goes on to say:
“The large, available Kodak site could provide some increased choice of office provision, although it is not a sequentially preferable site in PPS4 terms. However, as part of a large, mixed use development with other facilities and services, it is possible that limited office provision could be made on this site to meet local needs. This could contain some small, individual office units close to transport routes and local shopping facilities, as well as servicing any new housing development. There could also be a small office park development, perhaps as part of mixed employment area, which would meet wider needs, having regard to the overall development viability and mix of the site.”
2.28 Specifically in terms of future employment and floorspace requirements the ELR identifies a decline of 2,710 industrial jobs and an accompanying decline in demand for 8.3ha of B1c/B2 space and 2.9ha of distribution space (Tables 6.10 and 6.11).
2.29 It sets out a number of estimates of demand for different types of floorspace, assuming Harrow View provides 30,000sqm of industrial space and three other sites provide 6,500sqm. This leads to a surplus of 81,100sqm of industrial floorspace in the baseline scenario, i.e. the 36,500sqm of new
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floorspace would be in addition to a surplus of just under 45,000sqm of existing floorspace (Table 7.2 on p.72).1
2.30 Given that the Harrow View Site currently has no commercially available industrial or distribution space, any provision on-site would be an increase to the overall available stock in Harrow which would require an off-setting decrease elsewhere.
2.31 The ELR does identify a need for different types of property, and for some improvement in the quality of stock and these can be provided on the Harrow View Site. However, even allowing for this, the overall position would not create a need for industrial development on all of the site.
2.32 The evidence in the ELR makes a number of points clear:
There is a large projected surplus of both industrial and distribution floorspace across the Borough and provision at Harrow View would increase the surplus
The Site is not well located for major distribution or large-scale industrial use but it is relatively well-served by public transport
The Site is not currently meeting any strategic industrial need
The Site can play a significant role in providing non-industrial employment space and in meeting some of the qualitatively different need in the Borough
2.33 As the following sections set out, the Site has the ability to deliver employment floorspace, which, whilst not compliant with the SIL designation, would nevertheless make a significant contribution to Harrow’s economic future. It is probably the only site that can deliver this in terms of its size and deliverability, and the ability to bring forward enabling development on a major scale. This would not be achieved if the projected decline in industrial floorspace is achieved by dispersing industrial land release around the Borough.
1 The ELR also sets out two higher growth scenarios but these lead to surpluses of 74,500sqm and 25,500sqm but the second of these is not very reliable as it is based on historic take-up rates that are completely distorted by demand for distribution space in a single year (1999/2000) whereas in all other years demand was flat or falling. If 2001 to 2008 were used as the base years it would show an annual decline in demand of 1,250 sqm per year.
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CONTEXT – WHAT HARROW IS LIKE NOW
Demographic Profile
3.1 According to mid-year population estimates for Harrow the population of the Borough in 2010 was 230,100. The Borough has a large Indian community; according to the 2001 Census 22% of the population is of Indian origin which compares to 6% across London as a whole. The population of the Borough is well educated and has a lower proportion of residents with no qualifications compared to London as a whole.
3.2 Wealdstone ward has a lower skill level and education attainment when compared to the surrounding Marlborough, Headstone North and Headstone South wards. Wealdstone ward (5%) and Marlborough ward (4.6%) have the highest level of claimants seeking unemployment related benefits within the Borough, with the average for the Borough as a whole being 2.7%2.
Prevailing Economic Trends
3.3 Harrow has significant economic assets which mean it should be performing better in employment terms than it is. It accounts for less than 2% of London’s employment and whilst employment has been growing across London, it has been declining in Harrow; industrial jobs have seen the highest level of decline across all sectors.
3.4 The decline in employment means that Harrow has relatively few jobs compared to its population size. It ranks 27th of the 33 London Boroughs for jobs per 1,000 population and 15th of 19 outer London boroughs, only Bexley, Barking & Dagenham, Redbridge and Waltham Forest have lower employment and they are all in East London, which has historically underperformed.
13 NB This excludes the self-employed and people who work from home
3.5 Although it has relatively low levels of employment, it ranks towards the middle (11th of 19) of outer London Boroughs for labour market self-containment, ie the proportion of people who live and work in the Borough. This is largely explained by the high proportion of residents who are self-employed or who work from home (see below).
3.6 Whilst overall Harrow has lost jobs, it has seen significant growth in some sectors. Over the period 1998-2007 banking, finance & insurance (+8%), public administration, health & education (+10%) and other services (+46%), all grew significantly, although only the latter of these grew at rates above the national and regional averages. Within the category of ‘other services’, particular sub-sectors with strong growth included recreational, cultural and sporting activities, computer and related activities, and real estate3.
3.7 Harrow has significant assets and intrinsic advantages – including transport (Harrow and Wealdstone is 12 minutes from Euston and Harrow-on-the-Hill is 15 minutes from Marylebone and 20 minutes
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from Baker Street); high levels of educational attainment, an ethnically diverse and successful population, and a high quality environment, open space and overall quality of life.
3.8 As a result of these inherent advantages, it has been particularly successful in attracting small businesses and entrepreneurs who start up businesses. It also has a high proportion of businesses in knowledge intensive industries.
A Place for Entrepreneurs
3.9 In 2007, Harrow had 58.7 VAT registered businesses per 1,000 working-age population, in comparison to an Outer London average of 32.8, and the London average of 63.4 Harrow’s small businesses tend to focus around Harrow and Wealdstone Town Centre and the wider Intensification Area.
3.10 There are just over 10,000 businesses in the Borough (Annual Business Inquiry – Workplace Analysis 2008). Just over 91% of these are small businesses employing between 1 and 10 people.
3.11 The National Business Database (NBD) indicates 3,884 SOHO businesses (sole traders and small office/home office) are based in Harrow, of which 3,540 businesses have been classified into employment sizebands. Of these, 97.7% employ between one and five staff, with the remaining 2.3% of businesses employing between six to ten employees.
3.12 These are clustered in sectors with reasonable growth prospects. Of the SOHO businesses which have sector classifications, 28% fall within the banking, finance and insurance sector whilst 22% of businesses are concentrated within the distribution, hotels and catering sector. 16% of SOHO’s employing between six and ten people are based within the banking, finance and insurance sectors, compared to 26% for those employing less than six people.
3.13 Harrow has also experienced strong growth in new business formation recently with an increasing rate of VAT registration over the period 2006 - 2008 rising to over 80 registrations per 10,000 adults.5 This compares well with the other West London boroughs with only Hammersmith & Fulham having a significantly higher rate. The largest number of business start-ups in Harrow was established in the
4Harrow Local Economic Assessment Review
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legal, accountancy and other business support sector followed by construction, personal and community service and retail trade and repairs sectors.
3.14 In contrast to the rest of Greater London, Harrow has high levels of self-employment – more than 20% of the total workforce in 2010 compared to a London and UK average of 15%. Moreover, between 2010 and 2026, the self-employment rate in Harrow is expected to increase slightly more than in West London and the UK, thereby maintaining local significance. According to the Harrow Futures report, Experian consider that Harrow’s high rate of self-employment will be maintained and continue to increase at a faster rate than that of West London and the UK.
3.15 Harrow ranks 10th (Centre for International Competitiveness) in London in terms of the proportion of knowledge based industries with 29% of its businesses classed as knowledge based. While this represents a decrease in rank since 2007, Hammersmith and Fulham is the only West London borough to rank higher.6
3.16 Harrow has a similar proportion of knowledge-based industries to the London average, but is higher than adjoining boroughs and parts of Hertfordshire. “Knowledge-based” industries cover a wide range of sectors involved in the distribution of knowledge, encompassing business services, research and development, high-tech engineering, and creative industries reflecting multi-sectoral growth rather than reliance on sector-specific industries.
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Table 1: Proportion of Knowledge-based Industries (2008) Source: UK Competitiveness Index 20107
Proportion of businesses which are knowledge-based
Harrow 31.3% Barnet 27.2% Brent 24.3% Ealing 27.0% Hillingdon 23.6% Hertsmere 28.3% Three Rivers 29.6% Watford 26.3% London 30.9% Great Britain 21.8%
3.17 However, this has not been converted into a critical mass of businesses in any one sector or cluster. The London Councils (2010) report, “Supporting London Business Clusters” identified only one cluster in Harrow - architecture and engineering services (including technical consultancy, scientific and technical activities and specialised design).
3.18 There is therefore no single sector on which Harrow has focus – its strengths are more generic. 3.19 Harrow is home to a significant number of Indian and Anglo-Indian businesses. These already trade
extensively with India, however these relationships are not well understood by the public sector and Harrow has not yet attained significant visibility as a destination for inward investment. There is a lack of a coordinated initiative to realise the potential of this market.
3.20 More generally, academic and Government research (e.g. the State of the Cities report) has identified key features of successful urban areas. Harrow has some of them, including:
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Highly skilled workforce
High proportion of businesses in knowledge-based sectors
Social and environmental factors such as the quality of housing and schools, crime rates, social cohesion etc
Good (public) transport links
3.21 However, it is also failing on a number of key factors:
Continuous investment in its physical fabric (sites, houses, infrastructure) Sophisticated cultural infrastructure and services
Distinctiveness
Access to specialist business services; and
Wider environmental factors, including the supply, quality and cost of property and essential services, built environment and public realm
3.22 Successful places (e.g. Milton Keynes) have achieved most of these things.
Harrow’s Position and Brand
3.23 LS Harrow Properties Ltd commissioned thinkingplace to review Harrow’s positioning, proposition and brand and to identify the assets that the general public and key stakeholders associate with the place. A key aim was to start the process of developing a new story for Harrow which provides the place context for Harrow View.
3.24 Thinkingplace specialises in working with destinations, regions, cities, towns and places to define their story, deliver their distinctive place experience, and improve their image and profile, all of which helps to improve their economic competitiveness. In Harrow they undertook desk research, immersion in the area, a team workshop, stakeholder interviews, public consultation and attended the AAP developers’ forum.
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3.25 This research identified a number of important features (both positive and negative). These included: Harrow School is by far the strongest brand association, with international name
recognition, followed by Harrow on the Hill
Despite the strong brand, it is perceived as several places without a strong single or coherent identity, and the image runs ahead of the reality
Harrow is perceived as a bit detached from London, despite strong transport links between Harrow and Wealdstone and Harrow on the Hill and central London– it is seen as green and leafy rather than part of a dynamic world city
3.26 More direct economic issues were also raised: Thriving creative industries
SME & entrepreneur led economy Underperforming office sector
Lack of incubation units & ‘move on’ space Playing ‘catch up’ with competitor locations No main attractor
It is a dormitory rather than an economic driver Town centre shabby, poor retail
3.27 The work concluded that Harrow has many economic and locational assets, but is failing to assemble and communicate them. Significantly Harrow is not on the map for commercial relocations. Addressing this requires absolute clarity on what the place is for and its priorities and in particular, its assets need linking to economic opportunities in the place’s positioning.
3.28 Harrow’s lack of visibility for commercial occupiers is borne out by figures on property transactions in the last five years. In the period 2006 to 2011 nearly 1m sqm of office floorspace was let or sold
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across West London at an average deal size of 1,100sqm. Harrow borough as a whole accounted for under 3.5% of that, at an average deal size of 660sqm. In comparison, Uxbridge, which is a competitor Metropolitan Town Centre, accounted for 6.7% at an average deal size of just under 1,700sqm. Over the same period West London saw deals for industrial floorspace totalling 1.4m sqm, at an average size of 1,900sqm. LB Harrow accounted for 1% of this with average deal size of 900sqm.8
3.29 The Applicant has taken extensive advice from agents in relation to the opportunities available for Harrow as a location and for the Harrow View Site itself (this is summarised in Annex 3). It is clear that attracting a large occupier to the Site will be very difficult, without some means of pump-priming, or demonstrating that it can be delivered over the medium term. The advice has also identified areas where there is, or could be, demand in Harrow, particularly for small business and grow-on space (see below).
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WHAT IS HARROW’S FUTURE
4.1 Harrow is not projected to increase its employment significantly over the London Plan period. Whilst London is projected to increase employment by 16.6% to 2031, LBH will increase by only 7.6%. As a result, LBH’s share of London’s employment will fall from 1.7% to 1.6%. Neighbouring boroughs are projected to experience higher levels of employment growth: Brent (12%), Barnet (12.1%) and Ealing (10.8%). Harrow is losing ground not only to London as a whole, but also to competitor locations in Outer London and the Outer Metropolitan Area; beyond London itself.
4.2 It is therefore clear that if significant employment growth is to be achieved on the Harrow View site, it will require a break with recent and currently projected trends.
4.3 There are only three ways of growing private sector employment – starting new firms, helping existing firms survive and expand and attracting new firms in to an area. Harrow is well placed to do all three, especially if it takes full advantage of its Intensification Area status.
4.4 Harrow and Wealdstone was identified as an Intensification Area because of its potential to contribute higher levels of growth in jobs and houses that contribute to the London Plan and its ambition for outer London in particular.
4.5 This is challenging, but some macroeconomic trends should be helpful because most employment growth is expected in knowledge based industries and amongst SMEs in particular, and because Harrow has strong links to emerging markets, especially in India, which are an increasing source of trade and investment in London. Growth in GDP can be realised by focusing on SMEs, supporting the grass roots of economic growth.
Retaining & Growing SMEs
4.6 Harrow already has a large number of start-up firms – more than would be expected for its population. It therefore has some competitive advantage in this area. However, this could be enhanced by improving the opportunities for people to start businesses or to move from sole trader status to incorporated businesses. Similarly, more employment could be generated by improving survival rates or growing existing firms.
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4.7 Business incubation provides SMEs and start-ups with a managed and structured environment and offers a range of added value business development processes used to grow entrepreneurial small firms to help them reach their potential. Incubators can act as an ‘anchor’ for an area, securing valuable skills and knowledge that can help that area gain a competitive advantage.
4.8 Incubators provide mentoring, support services and advice, as well as a space in which incubated businesses can learn from each other and benefit from ‘clustering’ effects. Support and advice services can include access to finance, expertise, IP specialists and business networks, workshops and training, support in book-keeping and finance, and assistance with tax returns and legislation.
4.9 Evidence suggests that incubation adds value to a firm, with incubated businesses significantly less likely to fail in their first years than the average: 87% of incubated firms are still in operation – a much lower failure rate than for new businesses generally, where around a third of new UK small businesses fail within the first three years.
4.10 Although some commercial property developers have opened business incubation facilities, with a view to making private returns, these have generally been operated in partnership with public sector bodies and finance. The majority of business incubators are not-for-profit and public sector-led, frequently linked with universities. Few private sector only incubators exist in the UK. LS Harrow Properties Ltd would therefore seek a partner to deliver the incubation services.
Property for SMEs
4.11 SMEs have distinct yet diverse property requirements – in terms of the type of space required, fit out, the lease terms and the level of associated services.
4.12 The GLA undertook a survey of their needs in 2007. This identified that 50% of SME demand is for offices. This is also likely to be true of Harrow, where SMEs are mainly in business services. Next were shops (17%), catering establishments (9%), warehouses (8%), workshops (7%) and factories (5%). However, the type and function of office space is very diverse, including creative workshops, serviced offices, split-level B1a/c space, and live/work space.
4.13 The levels of “self-containment” and fit-out vary by the age, size and type of firm: Very young/small firms will require hot-desks
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“Higher end” SMEs, (e.g. lawyers or accountants) will require relatively hi-spec self-contained offices where you just plug in a computer
Creative businesses might prefer lower-spec finish they can fit-out themselves More established businesses will want their own front door
Size will vary for individual businesses and change over time – from hot-desking/shared space; single person offices (10sqm) through to free-standing buildings
4.14 There is also demand for different terms, lease lengths and services. These range from hot-desking, through daily rates, licences (1-12 months), and leases (3 years +) right through to the purchase of a freehold. Similarly, there is demand for a wide range of facilities (e.g. IT; meeting rooms; crèche; food & drink etc) and services (e.g. secretarial; phone-answering) plus incubation to help improve business survival and growth rates.
4.15 Serviced offices offering these levels of flexibility and services are well established across London, including in outer London. Specialist hot-desking facilities are also becoming established across London.
4.16 The concept of individual workers sharing office space is hardly new, but co-working office space is increasing in the London. Recent years have seen a sudden expansion of facilities: in Europe, the number of such spaces has risen by 19% since last October, with London a particular hotspot.
4.17 For hourly, daily, weekly or monthly fees, these offer standard office facilities, plus additional services such as mail, photocopying and scanning, IT and broadband, meeting rooms, videoconferencing, storage, and childcare. The concept also facilitates networking and collaborating, both within sectors and between businesses of similar age or size or who are facing similar issues. 4.18 These facilities typically offer space for between 20 and 50 desks over an area ranging from 150sqm
to 500sqm.
4.19 Whilst to date this has mainly been done in central London, it is increasingly happening in outer London town centres, including the Third Door and Co-working centres in Putney and the Docking Station in Brentford.
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4.20 London’s leading small business landlord, Workspace, has recently launched “Club Workspace” at three locations and has “virtual offices” in and around the edge of central London and in more suburban locations such as Wood Green, Chiswick, Purley Way, Brentford, Bermondsey, and Gunnersbury. Club Workspace includes access to the Dreamstake network which offers low cost access to professional services such as legal, accountancy, intellectual property and marketing. 4.21 SMEs also have wider needs for the things that generally make for good places, including a high
quality built environment and public realm, access to services, including business and retail services such as shops, restaurants, nurseries, gyms and other leisure and cultural facilities.
4.22 Various consultees, as well as Paul Adams Flaherty (PAF), advised that it is important that there is suitable accommodation available for businesses to move to as they grow allowing them to remain in the Borough (see Annex 3). This is particularly true of Asian businesses which rely on the development of local networks. At present Harrow does not have enough suitable “move one” space for SMEs, and there is nowhere that offers a range of property types and sizes for businesses at all stages of their lifecycle.
Attracting Inward Investment
4.23 Inward investment in London is very different from the rest of the UK and Harrow will need to tailor its offer accordingly, but there is significant scope for Harrow to do so.
4.24 The average size of new investments (rather than acquisitions or expansions) into the UK last year was 43 jobs, however, this varies by sector.
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Table 2: New Investments
Sector Share of projects Jobs per project
Service 44% 33
HQ 17% 28
R&D 17% 50
4.25 In London over 70% of inward investment projects are from companies with fewer than ten employees, and the average size is 30.
4.26 As might be expected, London gets relatively few manufacturing investments and the average size of each investment is therefore significantly smaller. Where London does receive manufacturing investment it tends to be in more sophisticated manufacturing sectors, such as electronics, computers and pharmaceuticals. However, the projects in these sectors cover activities such as sales and marketing rather than production facilities.
4.27 In London, ICT, business services and financial services are the dominant FDI sectors, contributing 32%, 22% and 15% respectively of FDI jobs between 2003-08. Headquarters and sales/service centres are the main business functions in London.
4.28 The top investor country was the USA with 30%, followed by Japan with 7%. India was 4th (6%) and China 6th (5%).
4.29 Whilst the USA continues to be the largest single investor, the BRIC countries – and especially India and China – are expected to increase their number of investment projects in London.
4.30 London already attracts a large share of the Indian and Chinese investments in Europe. In terms of sectors and activities, India and China are similar to investment from other countries. There is inward investment in the manufacturing sector, but it tends not to be in manufacturing activities – it is more often in HQ functions and in sales and marketing.
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4.31 London attracts a particularly large share of finance and business services investments and a small share in Indian FDI in manufacturing (although in HQ, sales and marketing functions rather than production). Chinese manufacturing accounts for a slightly higher share of Chinese FDI, although again, it is mainly in sales and marketing activities rather than manufacturing itself. In future, London is expected to attract more ‘creative’ manufacturing such as specialised printing and publishing. 4.32 London is also well positioned to attract investment in creative industries more generally, and the
GLA has identified the USA, India and China as particularly important sources.
4.33 In general London’s comparative advantage in attracting inward investment matches its economic performance overall. The characteristics of inward investors in London are very similar to those of indigenous firms. They are typically small (30 employees) and engaged in advanced business services (either by sector or function) with a strong “knowledge” component.
4.34 This has two implications for future growth in Harrow:
It is likely to be in sectors that are currently strong both for FDI and in the London economy generally (e.g. IT, business and financial services, HQ functions, and creative industries). It is likely to be small companies, at least in the first instance
4.35 Whilst it is not impossible to attract larger investment, this will be more difficult to achieve in Harrow. Firstly, it is much more difficult to identify potential larger investors – they tend to identify a particular need and use agents to find suitable locations. Secondly, Harrow has no track record of attracting larger occupiers – it just is not on the radar for potential investors. As a result Harrow experiences high commercial floorspace vacancy levels.
4.36 A strategy that focuses on known strengths – of both London and Harrow – is therefore much more likely to be successful.
4.37 Harrow is particularly well placed to develop stronger links with emerging markets, especially in Asia, in part because of its ethnic diversity and the fact that at least 31% of Harrow’s business base is BAME owned. It also has alumni from Harrow School in influential positions around the world.
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4.38 The Mayor’s inward investment agency, London & Partners, has provided advice on what such a strategy would need to involve. Property is covered in the next section and the softer measures are covered in the section on delivery below.
Property for Inward Investment
4.39 London & Partners advised that there are three main property requirements for most inward investment, especially from India.
i) Providing a very quick, accessible launch-pad for start-up companies
Indian firms or start-ups hoping to establish themselves and expand in the UK market usually send a small team over to assess the market and recruit. They are predominantly looking for B1 office space. They need immediately available and easily assessable desks or offices at low cost and on flexible/short term contracts.
Serviced offices and hot-desking are therefore appealing options.
London & Partners’ Touchdown programme, operating in other parts of London (Mayfair, the City, Hammersmith and Richmond), is an example of this. It offers a free desk to foreign start-ups for up to 12 months. The “desk” comes with fully staffed reception, ICT, utilities and meeting rooms included.
ii) Provide space to expand
If firms locate successfully in an area, they are likely to stay in that area if they can.
Indian start-ups that find success in London have the potential to grow very fast. Harrow’s office space offer needs to include a wide range of unit sizes so that expanding companies do not need to move out of the area when they grow and move beyond serviced offices. iii) Providing Incubation Centres with low barriers to entry
Incubation Centres are important, especially to attract Life Science and ICT firms. Many of these Centres in the UK have rigid pre-requisites regarding the type of industry and level of
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innovation that has to take place within them, and they have complicated application procedures.
These requirements are often unrealistic and can hamper start-ups. Harrow could seek to provide Centres that are more accessible and flexible.
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5
DELIVERING JOBS AND HOMES
Introduction
5.1 Harrow is already successful in starting companies but more employment could be generated by helping more of them survive and grow. More employment could also be generated by retaining and attracting more investment within the Borough.
5.2 Harrow needs to start a virtuous cycle of investment that can start growing its existing business base and create a property offer and wider environment, public realm and services that are attractive to small scale inward investment. Over time this could create the potential to attract larger relocations or grow indigenous businesses into larger firms. In particular there is a need to address Harrow’s role as a Metropolitan Centre that has fallen behind competitors such as Uxbridge and Watford and needs to recapture spending on retail and leisure that currently leaks away.
5.3 Harrow can provide more employment for its residents and also develop a cluster of activity that could be sub-regionally significant, based around its existing strengths in entrepreneurship and SMEs, and its links with emerging markets and India in particular.
5.4 This requires a range of activity from the council and private sector partners to change the reality of Harrow, but also to change perceptions of it amongst both existing and potential residents and businesses. Key activities will include:
Investment in key sites, infrastructure and the public realm
New housing and community facilities (including leisure, culture, retail etc) An inward investment and marketing programme
An SME support programme, including provision of dedicated workspace of different kinds and potentially incubation
5.5 Given the current environment for public spending, the key to delivering the ambition of the GLA and the Borough is large-scale private sector investment alongside targeted public sector interventions.
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Job creation in the future is going to be private sector led and the public sector’s role is to create the conditions to allow that to take place.
5.6 In Harrow, this is coming about through the AAP which sets the framework for delivery and Harrow View has a specific and crucial role within that as the biggest site (accounting for nearly half of the total development site area identified in the AAP) and because it can be delivered in the very near future and is not reliant on site assembly or raising finance.
Role and Aspirations of the Area Action Plan
5.7 Harrow Council, in partnership with the GLA, is in the process of preparing an AAP for the Harrow and Wealdstone Intensification Area. This sets out a target of 2,500 new homes and 3,000 jobs to be delivered in the area by 2026.
5.8 The development of the AAP has presented four options for the development of the Intensification Area, these were consulted on to determine local opinion on a preferred option to be taken forward. The AAP will be a single statutory plan which will provide guidance for the development of the Intensification Area against which proposals can be assessed. The objectives of the AAP are to:
Provide landowners, residents and developers with greater clarity as to how the area will be developed and allocate strategic sites;
Provide specific design guidance for development including environmental sustainability and the provision of infrastructure;
Promote Town Centre renewal and define the role and function of Wealdstone and Harrow town centres; and
Determine how the development of the area should be phased to ensure regeneration occurs throughout the Intensification Area.
5.9 The Intensification Area is 177 ha in size and includes Harrow Town Centre to the south which is the main retail and office area in the Borough. Wealdstone Town Centre is to the north of the Intensification Area, this district centre is surrounded by most of the Borough’s industrial land,
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including the Harrow View Site. Wealdstone town centre has a number of sites available for redevelopment which would allow for major regeneration.
5.10 The AAP Issues and Options Consultation Document sets out a SWOT analysis on the Intensification Area. Key findings are set out in the table below.
5.11 The AAP Issues and Options document indentifies three key sub-areas within the Intensification Area, Harrow Town Centre, the Station Road and Wealdstone.
Strengths
High rate of retail occupancy (except Wealdstone)
Public realm investment
High quality green spaces
Headstone Manor is a unique attraction
Above London average in terms of employment, education and salary
Good transport links
Distinct area and identity with range of unique characters and uses
A diverse community and good social infrastructure
High profile assets, Harrow School & Harrow on the Hill
The Council has significant land ownership in the area
Active and committed community groups keen to work with the Council to safeguard the quality of the area
Weaknesses
Harrow Town Centre not up to its Metropolitan status
Middle to low quality retail offer
Severance issues of busy roads and railways
High levels of office vacancy
Poor quality of environment around stations does not give a good arrival experience
High car ownership, pressure for car parking and traffic congestion
Poor legibility and pedestrian movement reduces connectivity
Landmarks, key buildings and spaces are underplayed
Shopping malls in Harrow Town Centre does not relate to the surrounding area and disrupt connectivity
Limited range of leisure, entertainment and cultural facilities
Opportunities
Redevelopment of key sites can provide a catalyst for wider regeneration in the wider area
Kodak site can link Wealdstone and Headstone Manor
Council owned land assets can make a significant contribution to development and regeneration
Smaller site/ infill development can be planned as part of a wider strategy for improvement
Threats
History of failed planning applications for key sites has damaged developer and investor confidence in the area
No action now could result in an uncoordinated approach to development
Limited funding could jeopardise the quality of development
Lack of investment in Harrow’s Metropolitan Centre status could lead to decline.
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5.12 Harrow Town Centre is defined as a Metropolitan Centre. It is the Borough’s main office and retail centre. It has good transport connections to central London, but the sense of arrival at the station is poor. The public realm and connectivity around the retail areas are weak and in need of improvement. Currently there is a lack of investment in the office market in the town centre and a number of large office occupiers have chosen to relocate out of Harrow town centre, increasing vacancy rates. There is a need to develop the amenities such as restaurants, night life and public realm to support the office market.
5.13 Key issues and opportunities for the development of Harrow town centre include:
Investment is needed in the office stock to attract new occupiers; this includes the provision of amenities and high quality public realm
There is an identified need for growth in the retail and leisure sector within the town centre in order to retain its affluent catchment area and protect its regional role as a Metropolitan Centre in outer London
Harrow town centre should consider building forms that fit its Metropolitan status, which could include tall buildings
Connectivity issues need to be addressed and pedestrian movements to the wider Intensification Area need to be improved
5.14 Station Road links Harrow town centre to Wealdstone town centre along which there are a number of independent retailers and food and drink outlets. It also accommodates the Civic Centre, a new mosque, a large Tesco and a leisure facility (Safari Cinema). Station Road is a key transport link between these two centres. In addition there are a number of areas where service bays and car parking meet the street. Both of these issues result in poor cycle and pedestrian access and usage. 5.15 Key issues and opportunities for the development of Station Road include:
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Improvements to the public realm are needed to encourage pedestrian movement and improve the overall environment of the arrival to the two centres and attract further investment
Retail along station road needs investment
5.16 Wealdstone is defined as a district centre. Its retail offer is limited, catering mainly for its local community. The town centre suffers from poor connectivity, arrival space around the station is poor and pedestrian movement towards the town centre is constrained. The Harrow View site is within this sub-area and is the largest development opportunity (25.4 hectares) in the Intensification Area as a whole.
5.17 The development of the Site can address a number of these issues and opportunities to help ensure the successful regeneration of Wealdstone town centre;
Potential to maintain a key employment function within the Borough Improve the character of the area
Improve connectivity and linkages to the surrounding area
Improve the station arrival space and orientation to and from the station within the area Enhance the access and connection to Headstone Manor
Improve green infrastructure creating green links to existing open spaces
5.18 Across the whole Intensification Area there are nine major development sites and 11 smaller infill sites; within the Harrow sub-area there are 7 – 8 ha of potential development sites, 7 – 8 ha within the Station Road sub-area and 21 – 28 ha within the Wealdstone sub-area. Therefore covering up to 60% of the potential development area in the whole Intensification Area this site has the potential to make a significant contribution to the regeneration objectives of the wider area.
Changing Perceptions
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5.20 The research undertaken by thinkingplace, together with consultation with a range of Anglo-Indian business organisations, including London & Partners, has identified three themes for improving Harrow’s positioning:
Educated & skilled – promoting Harrow as a centre of educational excellence with a high quality workforce and world-class institutions
London local – emphasising the connectivity to central London and its World City functions Economically fertile – its SME’s, Indian businesses and entrepreneurship
5.21 Harrow’s transport links to the West End are very good. However, it is not perceived as such. Start-up investment companies will prize locations that easily connect them to their potential markets and suppliers. Harrow should market the area emphasising connectivity/accessibility.
5.22 One of the key reasons that overseas firms come to London is to access the pool of highly trained labour. The council and its partners should work with schools, universities and training centres to promote Harrow as an area of educational excellence.
5.23 In keeping with the above, Harrow should seek to market itself as an area with an excellent offer for Indian start-ups and growing firms. Marketing should focus on the potential for creating and developing clusters (even if they do not actually exist) because (perceived) success attracts more success.
5.24 London & Partners has also advised on specific actions to boost inward investment, including a joint programme of activity covering:
Seminars and Lectures - If Harrow and its partners can provide free conference space then representatives from London & Partners will help them to hold seminars and lectures on doing business in Harrow, directed at Indian firms.
Networking Events - London & Partners can facilitate networking events that will link potential firms and foreign delegations with the council, with office space providers and with potential markets and suppliers.
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Firm Seeking - London & Partners can organise trips to India and will facilitate meetings so that Harrow and its partners can seek out potential start-ups and investors.
5.25 They advised that ICT remains the most important sector of Indian business that Harrow should aim to attract and that pharmaceuticals, creative industries, professional services and accountancy are also growth sectors for inward investment.
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6
THE ROLE OF HARROW VIEW
Introduction
6.1 The proposed development for the Site is a response to the issues set out above, as well as to the reality of the current position with regard to economic trends and viability.
6.2 The Council’s ELR identifies a need for 1,100sqm of office floorspace per year and the equivalent figures for manufacturing and distribution space are -1,660sqm and -575sqm per year. However, the historic performance of the office sector (and current high vacancy levels) means that actual take-up in that sector was negative (-5,700sqm per year) from 1998-2008. In this context, providing over 10,000sqm of B class uses in Phase 1 is ambitious and will require a significant effort to create a new demand for employment floorspace in Harrow.
6.3 However, Land Securities is ambitious and recognises that the Site offers the opportunity for early investment and intervention through mixed use development and placemaking that starts the process of re-defining the Heart of Harrow, both physically and in terms of perceptions of Harrow and its position in the outer London investment market.
Market Advice
6.4 LS Harrow Properties Ltd engaged Paul Adams Flaherty (PAF) in October 2008 to advise on the mix of commercial floorspace that should be brought forward and their advice is summarised in Annex 3 of this document.
6.5 PAF’s review of the local market identified an opportunity for a substantial amount of floorspace targeted at local SMEs. However, they noted that whilst ample SME demand exists, the delivery of a building or a site for this use requires a third party company to invest substantial sums in development/infrastructure in order to access the market demand from smaller SME occupiers requiring up to approximately 1,000 sqft/93 sqm.
6.6 PAF’s view is that the Site offers a unique opportunity to create an SME Hub and offer a “circle of business life” model ranging from operating an internet business at home, to SME workspace, to self-storage, to move on space to larger office or business units all on one site. This would include both
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freehold and leasehold tenure, which is particularly beneficial for the “move on” space where there is strong demand for freehold units. The ability for purchasers to acquire their own buildings (up to a lot size of circa £1m) is highly attractive through private pension plans as there is a strong culture of ownership in the local SME area.
6.7 In order to attract this significant infrastructure investment, it is critical for the SME offering to sit within a successful and vibrant commercial area, adjacent to good road and rail connections and, in particular, attractive and substantial retail facilities.
6.8 This would deliver a step change in the quality of premises, environment and ancillary services and offer something that cannot be delivered elsewhere, at least in the short term or by piecemeal release of smaller industrial sites across the Borough.
6.9 PAF has considered which other uses would be required for placemaking purposes and which uses could be attracted to the site. Their advice is summarised in Annex 3, and sets out that a significant retail anchor would be required to support the marketing and early occupation of the site. They have also assessed levels of interest from the healthcare, hotel/conferencing, senior living/care homes and leisure sectors.
Harrow View’s Wider Role
6.10 The Site is important to the area not least by virtue of its scale – it is the biggest in the AAP – and its location – it is Harrow & Wealdstone, rather than Harrow on the Hill, that is 12 minutes from Euston. 6.11 It can create momentum for investment, but also for wider economic activity by creating a hub of
small businesses around a range of community facilities. The hotdesking and incubation space can facilitate a network of small businesses that can be mutually reinforcing.
6.12 At the same time it can also support opportunities for inward investment that are currently not being exploited, due to a combination of a lack of visibility, resources and momentum. LS Harrow Properties Ltd can use its brand and resources to boost significantly the marketing and profile of Harrow, as well as the site itself.
6.13 Delivering this future requires a partnership of the Council and major private sector interests, including landowners such as LS Harrow Properties Ltd, alongside other partners such as Harrow in
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Business, Gateway Asia and London and Partners to produce strategies for SME development and for marketing and inward investment.
6.14 The Site has been marketed in its current form nationally over the last three years through brochures and Estates Gazette, as well as locally through billboards and the local press. The marketing brochures have been circulated on regular occasions to around 550 local, London and national estate agents. This has generated limited interest from occupiers such as builders merchants and plant hire, transport operators, markets and garden centres, waste management and storage companies, but none has followed up their initial interest.
6.15 A new approach is therefore required.
Overarching Vision
6.16 LS Harrow Properties Ltd’s vision for the Site is that it should become a landing point for certain types of SMEs in London and a focal point for ambitious start-ups and SMEs in Harrow and West London. 6.17 Discussions with agents, business support organisations, potential operators and banks have all
emphasised the need for start-up and move-on space for SMEs. The Site offers an opportunity for creating a unique environment that includes:
Types and sizes of floorspace that are appropriate for SMEs Flexible management regimes that meet the needs of SMEs
Wider local facilities and quality of environment that meets the aspirations of entrepreneurs
6.18 The proposed development also responds to inward investment needs and opportunities by establishing the “arrival” space, business incubation and expansion space in an area with high educational attainment (and a globally famous education brand), good connectivity and a generally high quality of life.
6.19 The quantum of space in Phase One responds to that advice and need and LS Harrow Properties Ltd is confident that with the appropriate cross-subsidy this space can be delivered and occupied.
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6.20 Because of the uncertainty of the timing of Phase Two and Three, Kodak’s desire to remain on the Site and the success of the marketing and inward investment strategy, some degree of flexibility is required and therefore it is not possible to be definitive about the amount and type of floorspace or the number of jobs. If the concept and its marketing are successful then higher employment could be achieved.
6.21 The proposed development brings together in an overarching vision that has a number of elements, including:
The quality of place – the premises, built environment, public realm and community facilities should all be of a quality that is not currently seen in Harrow or Wealdstone
Animation – delivering a mix of uses that will generate footfall and atmosphere
Building on strengths – including SMEs, links with India, opportunities for inward investment, growth in demand for leisure and other community facilities
Contributing to the regeneration of Wealdstone
Delivering the aspirations of the Area Action Plan – being its “Enterprise Heart” that helps create self-sustaining momentum in the area whilst avoiding subsidy and over-provision
An Enterprise Hub – that allows firms to start-up or locate on the site, and then grow and move within the site
Delivering Phase One as a single piece – using cross subsidy to deliver the quality of place and related place marketing – with start-up and move-on space delivered alongside each other
Preparing later phases to respond to success
6.22 The proposed development achieves a balance of a number of drivers – creating a new place, contributing to a break in employment trends, delivering new community facilities and open space, and meeting housing need.
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A Comprehensive Re-Development
6.23 The proposed development of Harrow View would be a comprehensive redevelopment and regeneration of the Site. Proposals include a mix of land uses including commercial, residential, community and leisure and well as a large amount of open space and public urban realm. The proposed development would include the following;
Development for business and employment use; 985 residential houses and flats;
Student housing; Retail development; An energy centre; A health centre;
Community and leisure development;
A care home and separate senior living accommodation; A 3 form of entry primary school; and
A multi-storey car park.
6.24 Overall the Site is genuinely mixed-use with the area balanced between employment-generating uses, open space and residential. This is shown by the following pie charts. The chart on the left shows the mix of uses across the whole development; whilst the chart on the right shows the mix of built site area on Harrow View East only, ie the part that falls within the SIL designation.
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6.25 The housing enables the rest of the development as it is the main element (together with a food store and care homes) that can provide a return for the developer – the employment space requires subsidy and the other elements are all a cost to the development. The infrastructure costs alone are around £60m.
6.26 Employment uses focus on the SME market as this is an area of existing strength that can be delivered and occupied in the short term and is not reliant on longer-term marketing efforts or “windfall” relocations (although the masterplan does not preclude these either). It also mainly complements the town centre office offer.
6.27 A property offer that meets the needs of SMEs will also meet the needs of the most likely types of inward investment.
6.28 The early phase is mixed-use, with the workspace subsidised by LS Harrow Properties Ltd, as employment uses are not currently viable.
6.29 Later phases can respond to success – be it retaining Kodak on-site, providing more start-up and SME space, providing more move-on space for growing SMEs or inward investors that have been attracted to the Site, or space for a larger-scale single occupier.
