Manchester City Council Executive
Item 13 27 May 2009
Manchester City Council Report for Resolution Report To: Subject: Report of: Executive - 27 May 2009 The Co-operative Complex The Chief Executive
Summary This report updates the Executive on the joint working between the City Council and The Co-operative Group (the Co-op). The report also seeks the Executive’s approval and endorsement of the Co-op’s redevelopment strategy, which will lead to the creation of a major new commercially led destination in the north of the city centre. Recommendations The Executive is recommended to: i) Note the progress made to date between the City Council and the Cooperative Group in bringing forward a major commercially-led mixed use development project at the northern gateway to the city centre; Approve in principle the redevelopment strategy as summarised within this paper, including the development of a new landmark Head Office building for The Co-operative Group which will become the catalyst for the redevelopment of its estate; Request the Chief Executive undertake a public consultation exercise on the Development Framework with local residents and businesses; Subject to the outcome of the public consultation exercise, request that the Planning and Highways Committee take the redevelopment strategy into material consideration when determining future planning applications for this area; and Request that a further report be brought forward, following the public consultation exercise, with final proposals, taking into account comments received, and reporting on progress with the development of the masterplan in due course.
ii)
iii)
iv)
v)
Wards Affected: Ancoats and Clayton City Centre Cheetham
Manchester City Council Executive
Item 13 27 May 2009
Community Strategy Spine Performance of the economy of the region and sub region Reaching full potential in education and employment
Summary of the contribution to the strategy The project will retain the Group’s 3,000 jobs in the city centre and provide the catalyst for further investment and employment in the area. The redevelopment has the potential to create around 15,000 jobs. The Co-op will seek to maximise local employment, training and procurement opportunities. Through its sponsorship of the Co-operative Academy of Manchester, the Group will continue to work with local communities and young people to reach their potential.
Individual and collective self esteem – mutual respect Neighbourhoods of Choice The development strategy will provide the opportunity to deliver appropriate community facilities and ensure surrounding communities can benefit from the scheme.
Full details are in the body of the report, along with any implications for: • • • Equal Opportunities Policy Risk Management Legal Considerations
Financial Consequences – Revenue
Financial Consequences – Capital At the meeting in May 2008, the Executive agreed to invest £20M of the City Council’s own funds to deliver the public elements of the overall development package.
Contact Officers: Name: Howard Bernstein Name: Pat Bartoli Position: Chief Executive Position: City Centre Regeneration Team Telephone: 234 3006 Telephone: 234 3329 E-mail: Email: h.bernstein@manchester.gov.uk p.bartoli@manchester.gov.uk Name: Dave Roscoe
Manchester City Council Executive
Item 13 27 May 2009
Position: City Centre Regeneration Team Telephone: 234 3567 Email: d.roscoe@manchester.gov.uk Name: Ruth Ashworth Position: City Centre Regeneration Team Telephone: 234 3611 Email: r.ashworth1@manchester.gov.uk Background documents (available for public inspection): The following documents disclose important facts on which the report is based and have been relied upon in preparing the report. Copies of the background documents are available up to 4 years after the date of the meeting. If you would like a copy please contact one of the contact officers above. 1. Report to the Executive - The Co-operative Wholesale Society – 18 May, 2008 Report by EDAW: Manchester Co-operative Group Holdings: Masterplan Principles The Co-operative Group- Strategic Regeneration Initiative
2.
3.
All held on file in Room 318.
Manchester City Council Executive
Item 13 27 May 2009
1. 1.1
Background The Co-operative Group Ltd (the Co-op) are a significant employer in the City, have had longstanding business operations here, and their brand and values are widely recognised. They are one of the UK’s most ethical brands, and one of the greenest retailers on the high street. The Co-op is a unique family of businesses comprising banking, retail and pharmacy elements, and is run by over 3 million members. The Co-op owns an extensive area of land in the northern part of the city centre, which straddles the Inner Relief Route (Miller Street section). Their estate comprise a number of listed buildings, several large, cleared sites including car parks located to the north of Miller Street and at the junction of Miller Street and Shudehill. Some of the land to the south of the IRR is within the Shudehill conservation area. The Co-op’s estate is bounded by Corporation Street, which is bordered by Miller Street, Dantzic Street and Corporation Street. To the west is Victoria Station, to the south is the Printworks and the retail core, to the east is Shudehill and to the north is Angel Meadow (St Michael’s flags) and parts of Collyhurst. The area benefits from outstanding public transport links, being located close to Victoria Station, two Metrolink stops at Victoria Station and Shudehill, and the Transport Interchange. Its flanking of the IRR provides easy access to the local and national road network. Following a competitive process in 2007/8 for a new headquarters building for their retail arm, the Co-op determined that it wished to remain at its current home in the northern part of the city centre. At that meeting the Executive approved, in principle, investment of £20M into the development of a new quarter to be anchored by the Co-op, which would drive regeneration in the northern gateway area of the city centre. The Executive was made aware that the space requirement of the retail operation was in the order of 200,000 sq ft and at that time the financial services component had not yet confirmed its plans. The Executive also requested a further report on discussions with the Co-op and proposals for the redevelopment of their estate. In December 2008 the Co-op reaffirmed its commitment to the City and following an extensive search of sites in and around Manchester, announced that a new landmark headquarters building of around 400,000 sq ft will be built on land on Miller Street, close to its existing base in Manchester city centre. The Co-op announced that its new landmark facility would be the new home for the Co-op Group’s new headquarters, not just for the retail operation. The Co-op Group’s decision to vacate its Corporation Street head office arose due to rising maintenance costs for its existing dated office complex and the need to provide a first class, fully sustainable working environment for staff. The Co-op is committed to the headquarters being built to high sustainability standards, in line with the Building Research Establishment’s Environmental Assessment Method (BREEAM), and is expected to be ready for occupation
1.2
1.3
1.4
1.5
1.6
1.7
Manchester City Council Executive
Item 13 27 May 2009
by the Group’s 3,000 headquarters staff by the middle of 2012. The Co-op announced that its headquarters would be developed within an overall redevelopment strategy for its 20-acre complex. 1.8 This report provides the Executive with an update on progress made and sets out the key elements of the Co-op’s proposed redevelopment strategy for its landholding. Introduction Over the last six months, the Council has been working closely with the Coop’s project team on its redevelopment plans. This work has resulted in the production of a strategy for the site and surrounding estate, and subject to endorsement by the Executive, the Group intends to commence implementation of its proposals with the new Head Office as the first phase. A planning application is anticipated in the summer, following public consultation. The proposals set out a vision for a major commercially led, mixed-use destination at the northern gateway to the city centre, covering an area of 20 acres. The new 350,000 sq ft (net) landmark head office building will provide the anchor for further development to take place across the rest of the Cooperative estate and surrounding area. The development will play a hugely significant role in re-connecting this area with the rest of the city centre and with surrounding communities, and has real potential to be a catalyst for further investment. The area has an estimated development capacity of approximately 3.5 million sq ft, which has the potential to accommodate 15,000 new jobs in addition to those retained in the new Head Office. The Co-op has clear ambitions for the redevelopment of its estate in this part of the city centre and has a strong vision to create a new destination that will be exemplary and set new standards for sustainable development and urban design. The Co-op shares a commitment with the Council to both quality and innovation. Key elements of the proposals include: new buildings and sensitively refurbished space; new high quality public realm and open spaces; renewable energy provision; community facilities; and an environment that gives priority to pedestrians. The Co-op site is located within the Irwell Corridor- Area of Opportunity and is a major piece in the jigsaw within the City Centre North framework (see report elsewhere on this agenda). The Co-operative initiative will play a major role in driving the city centre economy alongside future developments at Victoria Station, Chetham’s, the Boddingtons site and the Ramada block. The development and review of the Co-op estate has the potential to deliver extraordinary benefits to both the Co-op as an organisation and the City Centre North area as a whole, which would be impossible to conceive of in any other setting. The Co-op buildings have huge potential. They define an entire city quarter; they are one of the most prominent national examples of
2. 2.1
2.2
2.3
2.4
2.5
2.6
Manchester City Council Executive
Item 13 27 May 2009
one company’s presence in any major city. Some of the buildings that may be outmoded for office use are listed, beautiful buildings in their own right, and quite capable of many successful uses that would significantly alter perception and activities in this part of the City. 2.7 The location of the estate in the city centre, but bridging the link to the Irk Valley, invests the area with a powerful role in restructuring the city centre’s relationship with its adjacent residential communities, and one of its greatest open space assets. Potential also exists within the land holdings to phase redevelopment, and decant and re-use existing buildings, all within land controlled by the Co-op. This is a fairly unique position. The Co-op site is large enough and the Co-op’s brand objectives are of a prominence that would significantly influence market conditions and the development of thriving and sustainable commercial, residential and retail quarter. The disposition of buildings and land within the estate are fortuitously arranged with the older building stock located close to the city centre where the range of reuse options is greatest and where higher values may be achieved. Those sites best suited for new build, in the existing car parks, are also well placed for large floor plates and efficient layouts, offering wider development opportunities in the future, and are easily accessed from both public and private transport. In terms of architectural quality and adaptability, the buildings on Corporation Street include some of the best examples of neo-classical and neo-baroque buildings in Manchester. These buildings offer the potential for conversion to a number of uses, including retail, leisure and residential with potential for office space, and the Co-op’s objectives of growing and shopping locally. Double height ground floors are possible with removal of mezzanine to create great commercial space. The City Centre North (CCN) report (see elsewhere on this agenda) establishes the broader context for the area around the Co-op estate. It is evident that a new arc of opportunity is emerging between Salford and Manchester’s northern quarter. To the north the redevelopment of the Boddingtons site and the ongoing Green quarter redevelopment combined with the redevelopment of Victoria Station and the Ramada block, places the Co-op site at the nexus of the next major development zone within the Cityregion. The development profile that is emerging for the quarter is broad and will include residential and office space, but also a recognition of the interface between the city centre and its adjacent residential communities. This will be reflected in development forms that will offer considerable variety in terms of commercial floor space and ownership models. The opportunity is also being explored to add to the destination role of the area by the creation of a facility for fresh, locally sourced, produce. Fundamentally, both the Council and the Co-op believe that a partnership
2.8
2.9
2.10
2.11
2.12
2.13
Manchester City Council Executive
Item 13 27 May 2009
approach will deliver this next great piece of urban development in the UK. This will be realised through the pursuit of a common goal of high quality, socially inclusive, sustainable and economically successful urban regeneration. These common goals harness the core principles of the Co-op movement, they reflect on its past triumphs and its mission for the future. They will be a physical, social and commercial expression of the movement’s intent. For the Council, the common goals reflect the regeneration objectives that will keep Manchester at the forefront of economic and social change. 3. 3.1 Employment and Community The Co-op’s decision to invest in this part of the city centre will secure employment for its 3,000 employees. Furthermore, the redevelopment of the wider estate has the potential to create additional space, conceivably to accommodate up to 15,000 new jobs. The significant scale and scope of the redevelopment has the potential to be a major catalyst for regeneration and attract further investment in the north of the city centre. The Co-op is a diverse organisation, which has seen the expansion of a number of areas of activity including its retail and pharmacy arms. The organisation is committed to optimising local employment and local procurement opportunities throughout the redevelopment programme and will work with local agencies to ensure people and businesses access the opportunities created. Social and cultural issues lie at the heart of Co-op movement. Its commitment to the social economy; its community fund; its diverse commercial interests; all have at their heart the well-being of their members and the wider community. The redevelopment will provide the opportunity to deliver a range of community uses, facilities and activities for residents, employees and visitors alike. There is also great potential for the Co-op to involve local young people in the project, through The Co-operative Academy of Manchester in Higher Blackley, which opens in September 2010 and will focus on finance and business. Local communities will benefit from new high quality open spaces and other community facilities potentially including an urban farm, educational and healthcare facilities. Public Realm The redevelopment strategy that has been developed by the Council and the Co-op contains proposals to create high quality public realm covering an area of 4.5 acres. A new route is proposed through the site that will link the headquarters and the remainder of their estate with the remainder of the city centre and communities to the north. Miller Street/Inner Relief Road currently presents a challenge due to its size and consequent severance impact. A new transport response is required to address Miller Street in order to allow improved connecting routes and work is continuing to identify the best solution.
3.2
3.4
3.5
3.6
4. 4.1
Manchester City Council Executive
Item 13 27 May 2009
4.2
The site has unique characteristics due to the combination of existing listed buildings, industrial heritage and large areas of open land. High quality new buildings will be developed alongside innovative refurbishments, which will cater for a dynamic mix of uses and occupiers. The proposals set out a public realm strategy that will link the key areas through an overall style and feel. Four key elements will form the ‘Arkwright Field’: i) The ‘Lane’ introduces a front door to the site and will attract people into a new courtyard, Hanover Place, leading from the city centre to a new main square. ‘The Square’ will attract public activity to the main commercial area of the site and emphasize the site’s rich heritage. ‘The Mill’ adjacent to the main square will celebrate Arkwright Mill’s archaeology and will become accessible to the public. ‘Angel Meadows’ connects the existing residential areas to the north with a proposed residential development in the site, creating a link with the Irk Valley beyond.
ii)
iii)
iv)
5. 5.1
Transport The site is highly accessible, with Victoria Station, Shudehill Interchange and the Inner Relief Road within close proximity. A major focus of the redevelopment strategy will be to ensure that the site is fully integrated with public transport connections, and that there are clear pedestrian routes to and through the site. Miller Street and Corporation Street are considerably wide roads. The strategy proposes changes to the way in which these roads are used by giving greater priority to pedestrians and cyclists. Car users will be accommodated. A key aspect of the plan will be to address Miller Street, by exploring options to redesignate this section of the Inner Relief Road into a two-lane highway. This work will ensure the site is easily accessible to pedestrians and is fundamental to the overall regeneration project. Residents and businesses on the site will be encouraged to take full advantage of the public transport options. While public transport modes will be promoted, the site will provide a level of car parking appropriate for residents and business needs. Therefore, the Co-operative Quarter would be developed in the context of a highly sustainable regional and local public transport system that would set it apart from any outer centre commercial development. Innovative travel planning, including green travel plans and employee car sharing schemes will facilitate the sustainable travel objectives of the scheme and could generate green travel plans that cannot be equalled anywhere in the region.
5.2
5.3
5.4
Manchester City Council Executive
Item 13 27 May 2009
6. 6.1
Energy and Utility Networks The Co-op aims to ensure that the redevelopment programme will be exemplary in sustainable development terms. An integrated energy solution could create 100% of the heat and electricity needs of the site from renewable sources. The scale of the project, the mix of energy sources and the management of the systems will set a new benchmark in urban renewable energy provision. The City Council is working closely with the Co-op to explore ways in which energy and utility solutions for the site can support other sites and link into a wider renewable network in the City. This is being further explored through the CCN strategy. The scheme is designed to deliver all energy and utility infrastructure in a planned way, using the public realm as the main artery for routing. This will ensure that all development plots can be appropriately serviced without the need to dig up roads or replace networks. A centralised energy centre will provide energy from one place and this will ensure the system is efficient and commercially viable. Sustainable drainage systems for the whole site will ensure that water is recycled where needed and stored to control run off during storms. Green roofs and balancing ponds will help to clean water, support biodiversity and create attractive places. Heritage The Co-op’s estate comprises a significant number of listed buildings of varying style, size and quality. The redevelopment plan provides an unprecedented opportunity to transform and revitalise the Group’s existing building stock. The industrial archaeological remains associated with the industrial revolution together with the listed buildings provide a unique sense of place. New, high quality public realm will enhance the setting for the listed buildings and new uses have the potential to breath new life into the older buildings. The redevelopment strategy aims to ensure that the sensitive refurbishment of the listed buildings takes place where appropriate, and construction of exemplar new buildings will attract a variety of occupiers and mix of uses that will bring about a real sense of vibrancy. Conclusion The Co-operative Quarter redevelopment project provides the City with one of the most exciting regeneration opportunities in the region. The investment by the Co-op will enable this area to be re-connected with the city centre and surrounding communities and in doing so will create significant economic, social and environmental benefits on a scale rarely experienced. Whilst the Co-op intends to have its landmark headquarters building operational by 2012, it is envisaged that the redevelopment of the entire estate and surrounding area will take place over a 10-year period. It will therefore be
6.2
6.3
7. 7.1
7.2
8. 8.1
8.2
Manchester City Council Executive
Item 13 27 May 2009
essential for the redevelopment strategy to remain flexible, and take a phased approach in order to adapt to changing economic and market conditions over time. 8.3 Subject to the Executive’s endorsement of the proposals, the Co-op intends to submit an application for its new Head Office following public consultation in early summer. The Council will continue to work with the Co-op through a Project Board that has recently been established. Officers will also undertake a separate consultation exercise among local residents and key businesses in the area over the development of the framework, and the outcome of this exercise will be reported to the Executive in due course. Recommendations appear at the front of the report. Contributing to the Community Strategy (a) Performance of the economy of the region and sub region 9.1 The Co-operative headquarters complex redevelopment will be an important component of the City Centre North area- an area that has the potential to play a major role in driving the continued growth of the City Centre and is key to the economy of the wider sub-region and region. (b) Reaching full potential in education and employment 9.2 The new headquarters will retain the Co-op’s 3,000 employees in the City Centre and the redevelopment of the wider estate will become the catalyst for further investment and employment opportunities in the area. The redevelopment has the potential to create around 15,000 jobs in the area. The Co-op will seek to maximise local employment, training and procurement opportunities. There is also great potential for the Co-op to involve young people in the project through The Co-operative Academy of Manchester in Higher Blackley. (c) Neighbourhoods of Choice 9.3 The development strategy is designed to deliver appropriate community facilities and to ensure that surrounding communities can access the opportunities being created. Key Polices and Considerations (a) Equal Opportunities 10.1 A key aim of the redevelopment strategy is to ensure that local people can access and benefit from the employment opportunities and community facilities being created. In addition, there is a commitment to ensure that design standards throughout the redevelopment will comply with the highest standards of accessibility.
8.4
8.5 9.
10.
Manchester City Council Executive
Item 13 27 May 2009
(b) Risk Management 10.2 The Project Board will develop risk management strategy and will continually monitor and respond to risks throughout the lifetime of the project. (c) Legal Considerations 10.3 If adopted by the Executive, the redevelopment strategy will not form part of the Council’s Development Plan but would be a material consideration when development control decisions are made.
Manchester City Council Executive
Item 13 Appendix 27 May 2009