Results will be the real proof of regeneration

Mar 26 2008 by Bill Naylor for The Journal

The ambition being shown to develop major sites in Newcastle and Gateshead is applauded by Bill Naylor, but he calls for the planning authorities and developers to keep a grip on the real world.

THE ambition currently being shown by the North East’s public bodies for the regeneration of their areas has never been greater and is to be applauded.

However, the proof will be in their capacity to deliver the many schemes proposed in the light of the prevailing economic and financial climate and recent adverse changes in government policy, such as the end of vacant property reliefs, the introduction of Energy Performance Certificates and the scaling back of capital allowances.

On Tyneside it is proposed to create a City Development Company, a new quango, effectively a joint venture focus group between Newcastle and Gateshead Councils, formed to promote the two areas as a single entity.

This will no doubt involve one of the inaugural Business Improvement Districts, the one for central Newcastle being the largest in the country to date where it is sought to provide businesses with a stake – for which they will pay a penny on the rate – in how their area can improved. Whether the CDC will deliver regeneration any better than One NorthEast remains to be seen.

The sheer scale of the major projects proposed between Gateshead and Newcastle is impressive, covering some 350ha and every conceivable land use. Science Central, which appears to be the nearest scheme to some element of delivery is projected to have 12,000m² of grade A offices, 27,000m² of science units, 200 dwellings, student halls for 600 plus leisure and retail opportunities. 30,000m² of office space is proposed in the Stephenson Quarter, a relatively small part of Newcastle City Centre covering 3.5ha. The latest wing of Eldon Square is due to open in 2010, yet the East Pilgrim Street site is also being put forward as a major retail and office opportunity.

The trouble with mega schemes is that they need mega commitment, and mega amounts of public will and money to ensure delivery, particularly in initial site assembly where landowners, many of whom have been “stakeholders” in a particular area for generations, will not be willing to surrender their property without significant incentive.

And along with mega schemes and a vision of the future there is a danger that smaller, viable schemes capable of delivery will be thwarted because they don’t quite fit the vision.

Bearing in mind that these aspirational ideas will span a number of planning and development cycles, the retention of flexibility and reality is essential.

Bill Naylor is managing director of Naylors Chartered Surveyors in Newcastle.