Agenda item

To consider a report of the Business Generation Task and Finish Group.

The Committee considered a report of the Business Generation Centre Task and Finish group which had carried out a review of the four Business Generation Centres (BGCs) in the Borough

The review was carried out in the context of the Council’s Asset Management Strategy. The strategy had proposed a fundamental review of the Council’s asset holdings, facilitated through an ‘Asset Challenge Process’ led at that time by the Procurement, Assets and Shared Services Portfolio Holder. As part of that process, the Portfolio Holder had asked this Committee to undertake a review of the Business Generation Centres with a view to the Committee making recommendations to develop the Council’s future policy on business generation.

The Committee subsequently set up a Task and Finish group to undertake a detailed review of the Council’s involvement in Business Generation Centres which had involved undertaking research into best practice in the industry conducted though a series of interviews, site visits, and desktop exercises.

The review took place between October 2010 and March 2011.

The Task and Finish group, which originally comprised 3 Members, recognised that there were inextricable links between the future of the BGC buildings and the Economic Development aims of the Council. As a result, the group invited the Environmental and Prosperity Scrutiny Committee to nominate a Member to join the group to ensure that the Economic Development interests of the Council were fully represented increasing the group to 4 Members. The first meeting of the group took place in December 2010.

John Narraway a former Member of the Council and a Member of the BGC Task and Finish Group had been invited to attend the meeting and addressed the Committee on the findings of the investigation.

RESOLVED –

(a)       That the report of the Task/Finish group be welcomed and supported;

(b)       That the recommendations of the Group be endorsed, and referred to the Cabinet for consideration and necessary action, and that Cabinet be invited initially to comment on the details of the recommendations:

1.    That in line with the Council’s Economic Development Strategy, the principle of Business generation, for start up incubation businesses in Cheshire East be fully supported by the Council, in properly managed, dedicated premises, on ‘easy in easy out’ terms by way of licence agreements;

2.    That the existing buildings owned by the Council and located at Wesley Avenue Sandbach, Scope House Crewe, and Brierley Street Crewe be retained as BGCs, and the Council undertake a soft market testing exercise to seek a partner to manage, promote and market the 3 centres on behalf of the Council. The market testing to be undertaken in tandem with an approach to MMU and Keele University to seek partnership opportunities to provide business advice ,and mentoring schemes for incubation businesses.

3.    That in future, subject to financial availability, all BGCs have as a minimum the following support services,

·        a fully staffed reception,

·        telephone facilities in all units,

·        broadband,

·        communal business equipment;

4.    That in view of the poor location, condition of the building, and significantly lower occupancy rates than the other 3 BGCs in the Borough, the BGC at Thomas Street Congleton, be closed down and the building be declared surplus to requirements and offered for sale on the open market or alternatively, the site be considered as a potential site for an affordable housing scheme;

5.    That in conjunction with the Chamber of Commerce, the Council explore options to secure the continuity of businesses displaced by the closure of the Thomas street facility, by assisting them to locate alternative accommodation within Congleton.

6.    That Capital receipts received from the sale of Thomas Street be earmarked towards a scheme to refurbish Scope House Crewe under the ‘Asset backed vehicle’ scheme.

7.    That in the event that economic conditions improve sufficiently in the future to lead to an increase in demand for BGCs, consideration be given to facilitating a suitable building in Macclesfield for use as a BGC to address the current shortage of available incubation facilities in the north of the Borough;

8.    That the current practice of providing facilities rent free to tenants in lieu of providing reception services, as occurs at Thomas Street Congleton and Scope House Crewe, be ceased with immediate effect.

(c)   That the head of Planning and Policy be invited to a future meeting of this committee to explain the Council’s policy in respect of business in rural areas.

(d)   That the Senior Scrutiny officer be requested to submit a progress report on this matter in 6 months time.